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SPECIAL ACT ON PROMOTION OF SPECIAL RESEARCH AND DEVELOPMENT ZONES

Act No. 11232, Jan. 26, 2012

Amended by Act No. 11713, Mar. 23, 2013

Act No. 12215, Jan. 7, 2014

Act No. 12248, Jan. 14, 2014

Act No. 12678, May 28, 2014

Act No. 13122, Feb. 3, 2015

Act No. 13212, Mar. 11, 2015

Act No. 13231, Mar. 27, 2015

Act No. 13482, Aug. 11, 2015

Act No. 13805, Jan. 19, 2016

Act No. 13782, Jan. 19, 2016

Act No. 13797, Jan. 19, 2016

Act No. 14183, May 29, 2016

Act No. 14480, Dec. 27, 2016

Act No. 14569, Feb. 8, 2017

Act No. 14839, Jul. 26, 2017

Act No. 15309, Dec. 26, 2017

Act No. 15344, Jan. 16, 2018

Act No. 15562, Apr. 17, 2018

Act No. 16017, Dec. 24, 2018

Act No. 16172, Dec. 31, 2018

Act No. 17171, Mar. 31, 2020

Act No. 17219, Apr. 7, 2020

Act No. 17349, jun. 9, 2020

Act No. 17359, jun. 9, 2020

Act No. 17347, jun. 9, 2020

Act No. 17598, Dec. 8, 2020

Act No. 17675, Dec. 22, 2020

Act No. 17675, Dec. 22, 2020

CHAPTER I GENERAL PROVISIONS
 Article 1 (Purpose)
The purpose of this Act is to promote special research and development zones, thereby accelerate the research and development by colleges, research institutes and companies in the regions, invigorate mutual cooperation and support the commercialization of outcomes from the research and development as well as business start-ups, contributing to technological innovation and economic development of the Republic of Korea.
 Article 2 (Definitions)
The terms used in this Act are defined as follows: <Amended on Mar. 23, 2013; Jul. 26, 2017; Jun. 22, 2020; Dec. 22, 2020>
1. The term "special research and development zone" (hereinafter referred to as "special zone") means a zone designated under Article 4 to create new technology through research and development projects, disseminate outcomes of research and development projects, and promote commercialization thereof;
2. The term "commercialization" means commercialization as defined in subparagraph 3 of Article 2 of the Technology Transfer and Commercialization Promotion Act;
3. The term "advanced technology enterprise" means any enterprise designated under Article 9, among companies located in a special zone, which produces and sells products in the field of technology with high technology intensity and rapid pace of technical innovation, such as information and communications technology, biotechnology, and nano-technology;
4. The term "government-funded research institute" means a research institute governed by the Support of Specific Research Institutes Act or a research institute established pursuant to the Act on the Establishment, Operation and Fostering of Government-Funded Science and Technology Research Institutions;
5. The term "public research institute" means any of the following institutes:
(a) A national research institute;
(b) A Government-funded research institute;
(c) Any other research institutes prescribed by Presidential Decree, among research and development-related corporations established pursuant to any other statute;
6. The term “research-based spin-off companies” means any enterprise established in a special zone and registered under Article 9-3 (2), which has the purpose of directly commercializing the technology of public research institutes;
7. The term "foreigner" means a person as defined in Article 2 (1) 1 of the Foreign Investment Promotion Act;
8. The term "foreign-invested company" means a company as defined in Article 2 (1) 6 of the Foreign Investment Promotion Act;
9. The term "foreign research institute" means a research institute in which a foreign investor or foreign-invested company has invested pursuant to the Foreign Investment Promotion Act to perform research and development projects;
10. The term "resident institute" means an entity that has entered into a contract with the relevant management agency to move into a special zone under Article 37 and an entity that has entered into a contract with the relevant management agency to move into a special zone pursuant to Article 38 of the Industrial Cluster Development and Factory Establishment Act;
11. The term "new technology" means a technology developed for the first time in the Republic of Korea or an excellent technology developed by innovatively upgrading or improving existing technologies;
12. The term "test bed" means an environment, system, or equipment which can be used to test a new technology as well as the performance and effects of a new service or product using a new technology.
[This Article Wholly Amended on Jan. 26, 2012]
 Article 3 (Relationship to Other Statutes)
(1) The provisions that specify special cases in this Act in order to relax regulations shall take precedence over other statutes: Provided, That, where provisions that relax regulations more than the provisions of this Act exist in any other statute, such provisions shall prevail over the provisions of this Act. <Amended on Mar. 27, 2015>
(2) The special zone management plans under Article 34 shall take precedence over the plans under other statutes: Provided, That the foregoing shall not apply to the comprehensive national land plan under Article 6 (2) 1 of the Framework Act on the National Land, the basic urban or Gun plans under subparagraph 3 of Article 2 of the National Land Planning and Utilization Act, the master plan for the management of protection zones, etc. under Article 16 of the Protection of Military Bases and Installations Act, and the master plan for international science and business belts under Article 8 of the Special Act on Establishment of and Support for International Science and Business Belt. <Newly Inserted on Mar. 27, 2015>
[This Article Wholly Amended on Jan. 26, 2012]
[Title Amended on Mar. 27, 2015]
 Article 3-2 (Responsibilities of the State and Local Governments)
The State and local governments shall secure a budget necessary to promote the development of special zones and the coordination and cooperation among special zones, and shall formulate and implement relevant policies.
[This Article Newly Inserted on Jan. 26, 2012]
 Article 3-3 (Permit-First-Regulate-Later Principle)
(1) The State and local governments shall, in principle, permit limited testing and technical verification (hereinafter referred to as "demonstration") in order to help research institutes, etc. facilitate research and development and new technologies in special zones: Provided, That the demonstration of a new technology may be restricted only where it causes harm to the lives and safety of the people or impairs the environment.
(2) The State and local governments shall endeavor to promote the demonstration of new technologies and to ensure that related statutes, regulations, and systems under their authority are improved in conformity with the principle provided for in paragraph (1).
[This Article Newly Inserted on Jun. 9, 2020]
CHAPTER II DESIGNATION OF SPECIAL ZONES
 Article 4 (Designation of Special Zones)
(1) The Minister of Science and ICT may, where necessary, designate a special zone upon taking the following steps: <Amended on Mar. 23, 2013; Jul. 26, 2017; Apr. 17, 2018>
1. Hearing the opinion of the competent Special Metropolitan City Mayor, Metropolitan City Mayor, Special Self-Governing City Mayor, Do Governor, or Special Self-Governing Province Governor (hereinafter referred to as a "Mayor/Do Governor");
2. Consulting with the heads of related central administrative agencies;
3. Deliberating and adopting a resolution by the Committee on Special Research and Development Zones established under Article 7.
(2) Requirements for designation of a special zone under paragraph (1) or (5) shall be as follows:
1. Universities, research institutes and companies that perform national research and development projects shall be correlated with each other and clustered in a special zone;
2. The conditions of a special zone shall be adequate for commercializing outcomes produced from research and development projects performed by institutions specified in subparagraph 1 as well as for tarting up new venture businesses;
3. A special zone has higher level of contribution to the innovation of science and technology than other areas;
4. The conditions of a special zone shall be adequate for attracting foreign universities, foreign research institutes, and foreign-invested companies.
(3) If a Mayor/Do Governor finds that an area within his/her jurisdiction meets the requirements for designation under paragraph (2) and it is necessary to designate the area as a special zone, he/she may first hold a public hearing to hear opinions thereon from residents, related experts, etc. and then request the Minister of Science and ICT to designate the area as a special zone: Provided, That if a prospective zone extends over areas within the jurisdiction of at least two local governments, such as the Special Metropolitan City, a Metropolitan City, Special Self-Governing City, Do, or Special Self-Governing Province, the relevant Mayors/Do Governors shall jointly request the Minister of Science and ICT to designate such areas as a special zone. <Amended on Mar. 23, 2013; Jul. 26, 2017; Apr. 17, 2018>
(4) When a Mayor/Do Governor intends to request the designation of a special zone pursuant to paragraph (3), he/she shall prepare and submit the following documents: <Amended on Mar. 23, 2013; Jul. 26, 2017; Apr. 17, 2018>
1. A document necessary for a comprehensive plan to promote the special zone formulated under Article 6, as prescribed by Ordinance of the Ministry of Science and ICT;
2. A special zone development plan including the matters specified in each subparagraph of Article 6-2 (2).
(5) Upon receipt of a request from a Mayor/Do Governor to designate a special zone under paragraph (3), the Minister of Science and ICT may designate the special zone upon taking the steps prescribed in paragraph (1) 2 and 3. <Amended on Mar. 23, 2013; Jul. 26, 2017>
(6) Matters necessary for further details of requirements under paragraph (2) 1 through 4 shall be prescribed by Presidential Decree.
(7) When the Minister of Science and ICT designates a special zone under paragraph (1) or (5), he/she shall give public notice of the details thereof in the Official Gazette and shall notify the heads of related central administrative agencies and the competent Mayor/Do Governor thereof without delay, as prescribed by Presidential Decree. <Amended on Mar. 23, 2013; Jul. 26, 2017; Apr. 17, 2018>
(8) Upon receipt of notice given under paragraph (7), a Mayor/Do Governor shall make the details thereof available to the general public for inspection for at least 14 days.
[This Article Wholly Amended on Jan. 26, 2012]
 Article 4-2 (Change of Special Zones)
(1) Where a Mayor/Do Governor deems that it is necessary to change a designated special zone (excluding cancellation of the designation of a special zone under Article 5; hereinafter the same shall apply) in his/her jurisdiction within the extent prescribed by Presidential Decree, he/she may first hold a public hearing to hear opinions thereon from residents, related experts, etc. and then request the Minister of Science and ICT to change the special zone: Provided, That if the relevant zone extends over the jurisdictions of at least two local governments, such as the Special Metropolitan City, a Metropolitan City, Special Self-Governing City, Do, or Special Self-Governing Province, the relevant Mayors/Do Governors shall jointly request the Minister of Science and ICT to change the special zone.
(2) Upon receipt of a request from a Mayor/Do Governor to change a special zone under paragraph (1), the Minister of Science and ICT may change the special zone upon taking the steps prescribed in Article 4 (1) 2 and 3: Provided, That the Minister need not take such steps where a modification is made to any minor matters prescribed by Presidential Decree.
(3) Article 4 (4), (7), and (8) shall apply mutatis mutandis to change of special zones. In such cases, "designation" in Article 4 (4) and (7) shall be construed as "change".
(4) Where any area is excluded from a special zone due to the change of the special zone under paragraph (2), the designation of the area as a special zone shall be deemed cancelled.
[This Article Newly Inserted on Apr. 17, 2018]
 Article 5 (Cancellation of Designation of Special Zones)
(1) If a special zone designated under Article 4 falls under any of the following cases, the Minister of Science and ICT may wholly or partially cancel the designation of the special zone. The foregoing shall also apply where a Mayor/Do Governor requests cancellation: <Amended on Mar. 23, 2013; Jul. 26, 2017>
1. Where it is found impracticable to accomplish the objectives of designation of a special zone or a special zone ceases to meet the requirements for designation prescribed in Article 4 (2);
2. Where it is impracticable to develop a special zone within a considerable period due to restrictions on development acts under other statutes and regulations or due to the reluctance of the implementer of the development project of a special zone to participate in the project;
3. Where any cause prescribed by Presidential Decree and similar to any cause specified in subparagraph 1 or 2 exists.
(2) When it is intended to cancel the designation of a special zone under paragraph (1), the steps specified in Article 4 (1) shall be taken.
(3) When a Mayor/Do Governor intends to make a request to cancel the designation of a special zone pursuant to paragraph (1), he/she shall first hold a public hearing to hear opinions thereon from residents, related experts, etc.
(4) When the Minister of Science and ICT cancels the designation of a special zone under paragraph (1) or (2), he/she shall give public notice of the details thereof and shall notify the competent Mayor/Do Governor thereof without delay, as prescribed by Presidential Decree. <Amended on Mar. 23, 2013; Jul. 26, 2017>
(5) Upon receipt of notice given under paragraph (4), a Mayor/Do Governor shall make the details thereof available for public inspection for at least 14 days. <Newly Inserted on Apr. 17, 2018>
[This Article Wholly Amended on Jan. 26, 2012]
 Article 5-2 (Legal Fiction as Cancellation of Designation of Special Zones)
(1) Where an area designated as a special zone falls under any of the following cases, its designation as a special zone shall be deemed cancelled on the day following the date specified in each relevant subparagraph:
1. Where no application for approval of an implementation plan is filed under Article 27 (1) for all or part of the special zone, within three years from the date the special zone is designated and public notice thereof is given under Article 4 (7);
2. Where no application for approval of an implementation plan (limited to approval of an implementation plan following change of a special zone) is filed under Article 27 (1) for all or part of the special zone, within three years from the date the special zone is changed under Article 4-2 (2) and public notice of such change is given.
(2) Notwithstanding paragraph (1), where a Mayor/Do Governor requests the extension of the deadline for cancellation for efficient promotion, development, etc. of a relevant special research and development zone, the Minister of Science and ICT may extend the deadline by up to three years, subject to deliberation and decision by the Committee for Special Research and Development Zones established under Article 7. <Newly Inserted on Jun. 9, 2020>
(3) Where the designation of a special zone is cancelled pursuant to paragraph (1), the Minister of Science and ICT shall give public notice of the details of the cancellation in the Official Gazette and notify the competent Mayor/Do Governor thereof without delay, as prescribed by Presidential Decree. <Amended on Jun. 9, 2020>
(4) Upon receipt of notice given under paragraph (3), a Mayor/Do Governor shall make the details thereof available for public inspection for at least 14 days. <Amended on Jun. 9, 2020>
[This Article Newly Inserted on Apr. 17, 2018]
 Article 6 (Comprehensive Plans to Promote Special Zones)
(1) The Minister of Science and ICT shall formulate and implement a comprehensive plan to promote special zones every five years in order to efficiently achieve the purpose of this Act (hereinafter referred to as "comprehensive plan to promote special zones"). <Amended on Mar. 23, 2013; Jul. 26, 2017>
(2) A comprehensive plan to promote special zones shall include the following matters: <Amended on Jun. 9, 2020>
1. Basic direction-setting for the promotion of special zones;
2. Assisting research and development of universities, research institutes, and companies in a special zone and the management of their intellectual property rights;
3. Promoting commercialization of outcomes from research and development projects of universities, research institutes, and companies in a special zone;
4. Promoting starting-up and invitation of advanced technology enterprises;
5. Training human resources specialized in research and development for universities, research institutes, and companies in a special zone and human resources for supporting commercialization;
6. Invigorating exchange and cooperation among universities, research institutes, and companies in a special zone;
7. Creating conditions for inviting foreigners' investment and settlement of foreigners;
8. Disseminating outcomes from the operation of special zones;
9. Schemes for establishing an integrated system to support universities, research institutes, and companies in special zones;
10. Schemes for expanding investment and procuring financial resources;
11. Systematic development of each special zone;
12. Strategies for specialization of industries and technology in each special zone;
13. Schemes for cooperative development of a special zone with other areas;
14. Establishment and promotion of a test bed in a special zone;
15. Other matters prescribed by Presidential Decree for the promotion of special zones.
(3) Where the Minister of Science and ICT intends to formulate or revise the comprehensive plan to promote special zones, he/she shall consult with the heads of related central administrative agencies and the competent Mayor/Do Governor thereon, and shall finalize the plan through deliberation and resolution thereon by the Special Research and Development Zone Committee under Article 7. <Amended on Mar. 23, 2013; Jul. 26, 2017>
(4) The Minister of Science and ICT shall notify the heads of related central administrative agencies and the competent Mayor/Do Governor of the comprehensive plan to promote special zones finalized or revised pursuant to paragraph (3). <Amended on Mar. 23, 2013; Jul. 26, 2017>
(5) Whenever the Minister of Science and ICT finalizes or revises a comprehensive plan to promote special zones prescribed in paragraph (3), he/she shall report the finalized or revised comprehensive plan to the Presidential Advisory Council on Science and Technology established under the Presidential Advisory Council on Science and Technology Act. <Amended on Feb. 3, 2015; Jul. 26, 2017; Jan. 16, 2018>
[This Article Wholly Amended on Jan. 26, 2012]
 Article 6-2 (Special Zone Development Plans)
(1) The Minister of Science and ICT shall formulate and implement a special zone development plan for each special zone (hereinafter referred to as "special zone development plan") in any of the following cases: <Amended on Mar. 23, 2013; Jul. 26, 2017; Apr. 17, 2018>
1. Where a special zone is designated under Article 4 or changed under Article 4-2;
2. Where deemed necessary to efficiently promote the development of special zones.
(2) A special zone development plan shall include the following matters:
1. Name and location of the relevant special zone;
2. Name, location, and area of the target area;
3. Necessity for the development of the special zone;
4. Development projects to be implemented in the target area (hereinafter referred to as "special zone development project");
5. The prospective implementers of special zone development projects;
6. Implementing method of the special zone development project;
7. Funding methods;
8. A land use plan and a major infrastructure plan;
9. A population accommodation plan and a residential facilities development plan;
10. A traffic control plan;
11. A plan to invite universities, research institutes, and companies;
12. A plan to establish facilities for health and medical services, education, and welfare;
13. An environmental conservation plan;
14. A plan to develop an environment to attract foreigners' investment and to settle foreigners;
15. Matters regarding re-investment of development gains;
16. Other matters prescribed by Presidential Decree.
(3) The competent Mayor/Do Governor may request the Minister of Science and ICT to formulate a special zone development plan for an area for which no special zone development plan is formulated. <Newly Inserted on Dec. 22, 2020>
(4) A person falling under any subparagraph of Article 26 (1) may propose a draft special zone development plan to a Mayor/Do Governor, and where the Mayor/Do Governor deems it appropriate, he/she may request the Minister of Science and ICT to formulate a special zone development plan in accordance with the draft special zone development plan. <Newly Inserted on Dec. 22, 2020>
(5) If a special zone development plan involves any matter regarding an industrial complex defined in subparagraph 8 (a) through (c) of Article 2 of the Industrial Sites and Development Act, consultation with the Minister of Land, Infrastructure and Transport thereon shall be held in advance. In such cases, the Minister of Land, Infrastructure and Transport shall submit such plan for deliberation by the Industrial Location Policy Deliberation Committee under Article 3 of the Industrial Sites and Development Act. <Amended on Mar. 23, 2013; Dec. 22, 2020>
(6) When the Minister of Science and ICT intends to formulate or revise a special zone development plan, he/she shall finalize the plan upon taking the steps prescribed in Article 4 (1): Provided, That the foregoing shall not apply where he/she intends to revise any minor matter prescribed by Presidential Decree. <Amended on Mar. 23, 2013; Jul. 26, 2017; Apr. 17, 2018; Dec. 22, 2020>
(7) The Minister of Science and ICT shall publicly notify in the Official Gazette the details of a special zone development plan finalized under paragraph (6), as prescribed by Presidential Decree, and shall notify the heads of related central administrative agencies and the competent Mayor/Do Governor thereof without delay. <Amended on Mar. 23, 2013; Jul. 26, 2017; Apr. 17, 2018; Dec. 22, 2020>
(8) Procedures for request and proposal under paragraphs (3) and (4) and other necessary matters shall be prescribed by Presidential Decree. <Newly Inserted on Dec. 22, 2020>
[This Article Newly Inserted on Jan. 26, 2012]
 Article 6-3 (Consultation on Development of Areas without Special Zone Development Plans)
Any person who intends to grant permission, authorization, designation, approval, etc. of any development act specified in other statutes in an area within a special zone, the development plan of which has not formulated, shall consult in advance with the Minister of Science and ICT thereon: Provided, That the foregoing shall not apply to permission, authorization, designation, approval, etc. of small scale development prescribed by Presidential Decree, including building permission granted under Article 11 of the Building Act. <Amended on Mar. 23, 2013; Jul. 26, 2017; Jun. 9, 2020>
[This Article Newly Inserted on Jan. 26, 2012]
 Article 7 (Committee for Special Research and Development Zones)
(1) A Committee for Special Research and Development Zones (hereinafter referred to as the "Committee") shall be established within the Ministry of Science and ICT to deliberate and resolve on the following matters for the promotion of special zones: <Amended on Mar. 23, 2013; Jul. 26, 2017; Jun. 9, 2020>
1. Major policies and systems for special zones;
2. Formulation and revision of comprehensive plans to promote special zones;
3. Formulation and revision of special zone development plans;
4. Designation of special zones and cancellation or alteration of designation;
5. Financial support and training of human resources necessary for the promotion of special zones;
6. Mediation of opinions of the heads of related central administrative agencies and Mayors/Do Governors;
6-2. Special treatment for demonstration provided for in Article 16-2 (1);
7. Details regarding the operation of the Committee;
8. Other matters regarding the promotion of special zones.
(2) The Committee shall be formed with no more than 20 members, including one Chairperson and one Vice Chairperson, and comprised of ex officio members and at least seven commissioned members.
(3) The Minister of Science and ICT shall serve as Chairperson. <Amended on Mar. 23, 2013; Jul. 26, 2017>
(4) Persons prescribed by Presidential Decree, from among public officials at the rank of Vice Minister in central administrative agencies, shall serve as ex officio members.
(5) Commissioned members shall be commissioned by the Chairperson, from among persons with abundant knowledge and experience which can contribute to the development and operation of special zones or persons with abundant expertise and experience in new technology. <Amended on Jun. 9, 2020>
(6) A secretariat may be established to assist the Committee in its business affairs as prescribed by Presidential Decree. <Amended on Mar. 23, 2013>
(7) A specialized committee may be established under the Committee, as prescribed by Presidential Decree, in order to efficiently perform and support affairs of the Committee prescribed in paragraph (1) 6-2. <Newly Inserted on Jun. 9, 2020>
[This Article Wholly Amended on Jan. 26, 2012]
 Article 7-2 (Evaluation of Performance of Special Zones)
(1) The Minister of Science and ICT may conduct a comprehensive evaluation for each special zone for the development of special zones. <Amended on Mar. 23, 2013; Jul. 26, 2017>
(2) The Minister of Science and ICT shall disclose the results of evaluations conducted under paragraph (1) and may provide administrative or financial support to each special zone differently based on the results of such evaluations. <Amended on Mar. 23, 2013; Jul. 26, 2017>
(3) Methods of and procedures for evaluations and disclosure under paragraphs (1) and (2) and other necessary matters shall be prescribed by Presidential Decree.
[This Article Newly Inserted on Jan. 26, 2012]
CHAPTER III REINFORCING RESEARCH AND DEVELOPMENT AND COMMERCIALIZATION
 Article 8 (Establishment of Infrastructure for Commercializing Outcomes from Research and Development Projects in Special Zones)
(1) The Minister of Science and ICT shall spare no efforts to establish institutional infrastructure for supporting the commercialization of outcomes from research and development projects performed in special zones. <Amended on Mar. 23, 2013; Jul. 26, 2017>
(2) The Minister of Science and ICT shall formulate and implement policies for promoting research and development service businesses as defined in subparagraph 4 of Article 2 of the Special Act on Support of Scientists and Engineers for Strengthening National Science and Technology Competitiveness, in order to facilitate the commercialization of outcomes from research and development projects performed in special zones. <Amended on Mar. 23, 2013; Jul. 26, 2017>
(3) The Minister of Science and ICT shall formulate policies necessary for assisting universities, national research institutes, and government-funded research institutes in special zones so that they can swiftly and smoothly acquire and exercise intellectual property rights to the outcomes from their research and development projects. <Amended on Mar. 23, 2013; Jul. 26, 2017>
(4) The Minister of Science and ICT shall establish a supporting system necessary to facilitate the transfer and commercialization of technologies possessed by universities, national research institutes, and government-funded research institutes in special zones, such as a system to link them to markets for trading technologies. <Amended on Mar. 23, 2013; Jul. 26, 2017>
(5) The Minister of Science and ICT shall search for cases where universities, national research institutes, government-funded research institutes and companies in special zones have succeeded in commercializing outcomes from their research and development projects, reward such universities, national research institutes, government-funded research institutes and companies for their efforts, promote service industry related to business management activities, such as consulting services for legal affairs, accounting, engineering, and management, and endeavor to disseminate the innovation of science and technology in special zones. <Amended on Mar. 23, 2013; Jul. 26, 2017>
[This Article Wholly Amended on Jan. 26, 2012]
 Article 9 (Designation of Advanced Technology Enterprises)
(1) The Minister of Science and ICT may designate a company meeting all of the following requirements as an advanced technology enterprise: <Amended on Mar. 23, 2013; Jul. 26, 2017>
1. A company shall hold a domestic or foreign patent right in the field of technology prescribed by Presidential Decree (including an exclusive license provided for in Article 100 of the Patent Act);
2. A company shall produce and sell products by utilizing a patent right under subparagraph 1;
3. A company shall be located in a special zone;
4. The ratio of a company's research and development expenses and its sales of products produced and sold as provided for in subparagraph 2 to its annual gross sales shall meet the standards prescribed by Presidential Decree.
(2) Procedures for designation of advanced technology enterprises under paragraph (1) and other matters necessary for designation of advanced technology enterprises shall be prescribed by Presidential Decree.
[This Article Wholly Amended on Jan. 26, 2012]
 Article 9-2 (Revocation of Designation of Advanced Technology Enterprises)
(1) If an advanced technology enterprise falls under any of the following cases, the Minister of Science and ICT may revoke its designation: Provided, That if it falls under subparagraph 1, its designation shall be revoked: <Amended on Mar. 23, 2013; Jul. 26, 2017>
1. If it has obtained designation as an advanced technology enterprise by fault or other illegal means;
2. If it ceases to meet the requirements for designation specified in Article 9 (1);
3. If it fails to continue business activities during a period prescribed by Presidential Decree, due to business suspension, default, permanent closure, bankruptcy, etc.
(2) When the Minister of Science and ICT intends to revoke the designation of an advanced technology enterprise under paragraph (1), he/she shall hold a hearing thereon. <Amended on Mar. 23, 2013; Jul. 26, 2017>
[This Article Newly Inserted on Dec. 30, 2009]
 Article 9-3 (Establishment of Research-Based Spin-Off Companies)
(1) Any of the following institutions or companies may solely or jointly establish a research-based spin-off company:
1. A public research institute;
2. An industry-academia-research technology holding company as defined in subparagraph 8 of Article 2 of the Industrial Education and Industry-Academia-Research Cooperation Promotion Act;
3. A company specializing in the start-up of new technology-based businesses as defined in Article 2 (8) of the Act on Special Measures for the Promotion of Venture Businesses, which shall meet the standards prescribed by Presidential Decree;
4. A public research institute high-tech holding company as defined in subparagraph 10 of Article 2 of the Technology Transfer and Commercialization Promotion Act.
(2) A research-based spin-off company established under paragraph (1) shall file for registration with the Minister of Science and ICT, as prescribed by Presidential Decree. The foregoing shall also apply where it intends to revise matters prescribed by Presidential Decree, among registered matters. <Amended on Mar. 23, 2013; Jul. 26, 2017>
(3) A research-based spin-off company shall meet all of the following requirements:
1. An institution or company specified in any subparagraph of paragraph (1) shall solely or jointly hold the stocks (including equity share; the same shall apply hereinafter) of the research-based spin-off companies from among the capital of the research-based spin-off companies in excess of the ratio prescribed by Presidential Decree;
2. The research-based spin-off company shall be established to directly commercialize technology of a public research institute;
3. The research-based spin-off company shall be established within a special zone.
(4) A public research institute that has established a research-based spin-off company under paragraph (1) shall use profits and surplus (hereafter referred to as "profits, etc." in this Article) from investment in the research-based spin-off company for any of the following purposes, and priority in using such profits, etc. shall be given to the purposes specified in subparagraphs 1 through 4: <Amended on Apr. 17, 2018>
1. Investment in research and development;
2. Investment to establish a research-based spin-off company, or re-investment in a research-based spin-off company;
3. Expenses incurred in commercializing outcomes of research and development;
4. Compensation paid to personnel and departments for their contribution to technological development or commercialization;
5. Operating expenses of the institute.
(5) A public research institute may use at least 50/100 of the profits, etc. to pay compensation to personnel and departments for their contribution to technological development, and at least 10/100 of the profits, etc. to pay compensation to personnel and departments for their contribution to commercialization, out of those specified in paragraph (4) 4. <Newly Inserted on Apr. 17, 2018>
(6) Specific percentages of compensation to be paid pursuant to paragraph (5) shall be prescribed by Presidential Decree. <Newly Inserted on Apr. 17, 2018>
[This Article Wholly Amended on Jan. 26, 2012]
 Article 9-4 (Revocation of Registration of Research-Based Spin-Off Companies)
(1) Where a research-based spin-off company falls under any of the following cases, the Minister of Science and ICT may revoke the registration of the research-based spin-off company: Provided, That where a research-based spin-off company falls under subparagraph 1, its registration shall be revoked, whereas if a research-based spin-off company falls under subparagraph 2 and the stock holding ratio exceeds the standards prescribed by Presidential Decree, the revocation of registration may be suspended for up to five years, as prescribed by Presidential Decree: <Amended on Mar. 23, 2013; May 28, 2014; Jul. 26, 2017>
1. Where it has filed for registration by fraudulent or other illegal means;
2. Where it fails to meet the stock holding ratio specified by Presidential Decree;
3. Where it is deemed impracticable for the business of a research-based spin-off company to achieve its purpose of establishment, which is to directly commercialize technology of a public research institute;
4. Where it fails to meet the requirements specified in Article 9-3 (3) 3;
5. Where it fails to continue business activities during a period prescribed by Presidential Decree due to business suspension, default, permanent closure, bankruptcy, etc.
(2) Where the Minister of Science and ICT intends to revoke the registration of a research-based spin-off company prescribed in paragraph (1), he/she shall hold a hearing thereon. <Amended on Mar. 23, 2013; Jul. 26, 2017>
[This Article Wholly Amended on Jan. 26, 2012]
 Article 9-5 (Allowable Temporary Retirement and Holding of Concurrent Offices of Researchers in Public Research Institutes)
(1) Researchers (including teachers prescribed in Article 15 of the Korea Advanced Institute of Science and Technology Act, Article 14 of the Gwangju Institute of Science and Technology Act, Article 12-3 of the Daegu-Kyeongbuk Institute of Science and Technology Act, and Article 8 of the Ulsan National Institute of Science and Technology Act; hereafter the same shall apply in this Article) of public research institutes, who are not public officials, may temporarily retire from work to serve as the representative or employee of a research-based spin-off company, or concurrently hold the office of a representative or an employee, after obtaining permission from the heads of institutions to which they belong. <Amended on Apr. 17, 2018>
(2) The period of temporary retirement under paragraph (1) shall not exceed three years: Provided, That the period may be extended for three years with permission from the head of the institute to which a researcher belongs. <Amended on May 28, 2014>
(3) Where researchers of public research institutes takes a leave of absence from office for not less than six months under paragraph (1), it shall be deemed that there are a separately fixed number of researchers corresponding to the number of the relevant persons on leave in the relevant public research institutes, from the first day of the leave of absence.
[This Article Newly Inserted on Dec. 30, 2009]
[Title Amended on May 28, 2014]
 Article 10 (Training of Human Resources Specializing in Research and Development in Special Zones and Establishment of Systems for Exchange and Cooperation among Universities, Research Institutes, and Companies)
(1) The Minister of Science and ICT shall formulate and implement policies for training human resources specializing in research and development as well as human resources supporting commercialization in the fields of new technology, convergence technology, etc. for universities in special zones. <Amended on Mar. 23, 2013; Jul. 26, 2017>
(2) The Minister of Science and ICT may provide the following assistance to universities, research institutes, and companies in special zones to bolster exchange and cooperation among them: <Amended on Mar. 23, 2013; May 29, 2016; Jul. 26, 2017>
1. Assistance in developing and implementing joint educational programs together with domestic or foreign companies, domestic or foreign universities, or domestic or foreign research institutes;
2. Assistance to universities in special zones in opening and operating courses for business start-up;
3. Assistance in developing and implementing educational programs for training human resources specializing in support for research and development and experts in business management;
4. Assistance in invigorating exchange of researchers and technical personnel and in enriching the substance of on-site education;
5. Assistance in developing and operating training and education programs for technical personnel operating research equipment and programs for providing human resources to related institutions;
6. Providing human resources specializing in research and development to research-based spin-off companies, advanced technology enterprises, etc.;
7. Preferential recommendations to select designated entities for which expert research personnel will serve under Article 36 of the Military Service Act;
8. Giving priority in granting subsidies for the employment of researchers with a master's degree or doctorate degree in science or engineering;
9. Assistance in inviting high-quality overseas human resources in science and technology;
10. Assistance in establishing information systems for researchers, research tasks, research equipment, etc.;
11. Assistance in other affairs prescribed by Presidential Decree and necessary to strengthen exchange and cooperation among universities, research institutes and companies in special zones.
[This Article Wholly Amended on Jan. 26, 2012]
 Article 11 (Assistance in Strengthening Government-Funded Research Institutes’ Innovation Capability)
The Minister of Science and ICT may provide the following assistance to government-funded research institutes in special zones to strengthen their innovation capability: <Amended on Mar. 23, 2013; Jul. 26, 2017>
1. Establishing a flexible research organization for each field of specialty, based on future demand forecasts;
2. Invigorating exchange of human resources among government-funded research institutes;
3. Establishing systems for learning and re-training of researchers of government-funded research institutes;
4. Improving the evaluation and rewarding systems of government-funded research institutes and affiliate researchers.
[This Article Wholly Amended on Jan. 26, 2012]
 Article 12 (Implementation of Special Zone Promotion Projects)
(1) The Minister of Science and ICT and the heads of related central administrative agencies shall implement projects (hereinafter referred to as “special zone promotion project”) for providing assistance in research and development activities and management of intellectual property rights, and for promoting commercialization of outcomes from research and development projects, in accordance with the comprehensive plans to promote special zones, and may select tasks for promoting special zones each year to enter into contracts with universities, research institutes, and companies in special zones for research on such tasks. <Amended on Mar. 23, 2013; Jul. 26, 2017>
(2) Expenses incurred in implementing special zone promotion projects shall be covered with contributions from the Government or any person, other than the Government, and profits, etc. generated in the course of the implementation of the special zone promotion projects.
(3) Matters necessary for the method for entering into contracts under paragraph (1) and the payment, use, and management of contributions under paragraph (2) shall be prescribed by Presidential Decree.
[This Article Wholly Amended on Jan. 26, 2012]
 Article 13 (Payment of Subsidies for Employment)
A local government may pay subsidies for employment, education and training, etc. to companies that invest in a special zone, as prescribed by municipal ordinance of the local government, if deemed necessary to promote investment in the special zone.
[This Article Wholly Amended on Jan. 26, 2012]
 Article 14 (Special Provisions for Tax Benefits and Full or Partial Exemption from Charges)
(1) If necessary for developing and promoting special zones, the State and local governments may provide tax benefits to implementers of special zone development projects, research-based spin-off companies, and advanced technology enterprises, as provided for in tax-related statutes.
(2) If necessary for efficiently implementing special zone development projects, the State and local governments may fully or partially exempt implementers of such special zone development projects from the following charges:
1. Development charges under the Restitution of Development Gains Act;
2. Farmland preservation charges under Article 38 of the Farmland Act;
3. Costs of development of substitute grassland under Article 23 (6) of the Grassland Act;
4. Costs of development of substitute forest resources under Article 19 of the Management of Mountainous Districts Act;
5. Cooperation charges on conservation of ecosystem under Article 46 of the Natural Environment Conservation Act;
6. Occupancy or use fees of public waters under Article 13 of the Public Waters Management and Reclamation Act;
7. Environmental improvement charges under the Environment Improvement Expenses Liability Act.
[This Article Wholly Amended on Jan. 26, 2012]
 Article 15 (Special Provisions for Use, Lease, Sale of, or Benefit from State or Public Property)
(1) Notwithstanding the State Property Act and the Public Property and Commodity Management Act, the Minister of Economy and Finance, the head of a central government agency, or the head of a local government may permit a research-based spin-off company or an advanced technology enterprise to use or benefit from land, buildings, and other State or public property, which are owned by the State or the local governments, or may lease or sell such property to a research-based spin-off company or an advanced technology enterprise, under a negotiated contract.
(2) Where the use or lease of, or benefit from State property is permitted under paragraph (1), a period therefor shall fixed up to 50 years, notwithstanding Articles 35 (1) and 46 (1) of the State Property Act. In such cases, the period is renewable but the period for each renewal shall not exceed 50 years.
(3) Notwithstanding Article 18 of the State Property Act and Article 13 of the Public Property and Commodity Management Act, the State or a local government may permit a person to build a factory or any other permanent structures on the land that the State or the local government owns and permits the person to use or benefit from. In such cases, the State or a local government may attach a condition that the person shall donate the structures to the State or the local government or reinstate the land upon the expiration of the specified period, taking into consideration the types of structures thereon.
(4) Guidelines for calculating use fees and rents for the use of, benefit from, or lease of State property under paragraph (1) shall be prescribed by Presidential Decree, notwithstanding Articles 32 (1) and 47 of the State Property Act.
(5) If it is found that a research-based spin-off company or an advanced technology enterprise purchasing State property sold under paragraph (1) is unable to pay the purchase price in a lump sum, the deadline for the payment of such purchase price may be deferred or such research-based spin-off company or such advanced technology enterprise may be allowed to pay the purchase price in installments, as prescribed by Presidential Decree, notwithstanding Article 50 (1) of the State Property Act.
[This Article Wholly Amended on Jan. 26, 2012]
 Article 16 (Special Provisions regarding the Monopoly Regulation and Fair Trade Act for Promotion of Joint Research and Development)
(1) Matters on which the Minister of Science and ICT has consulted with the Fair Trade Commission among joint research and technological development projects needed to commercialize outcomes from a research and development project in a special zone shall be deemed authorized by the Fair Trade Commission under Article 19 (2) of the Monopoly Regulation and Fair Trade Act. <Amended on Mar. 23, 2013; Jul. 26, 2017>
(2) Where the Minister of Science and ICT intends to request consultation under paragraph (1), he/she shall submit a document stating the necessity of application of special provisions, the details of such provisions, and other matters prescribed by Presidential Decree to the Fair Trade Commission. <Amended on Mar. 23, 2013; Jul. 26, 2017>
[This Article Wholly Amended on Jan. 26, 2012]
 Article 16-2 (Special Regulatory Treatment for Demonstration)
(1) A person prescribed by Presidential Decree who intends to conduct demonstration necessary for the process of research and development aimed at creating new technologies in a special zone may, for demonstration, apply to the Minister of Science and ICT for special regulatory treatment that allows non-application to all or part of regulations related to the relevant new technology in the special zone (hereinafter referred to as "special treatment for demonstration"), in any of the following cases: Provided, That a company may apply for special regulatory treatment under the procedures prescribed in Article 10-3 of the Industrial Convergence Promotion Act, Article 38-2 of the Special Act on Promotion of Information and Communications Technology and the Vitalization of Convergence Thereof, and Article 86 of the Act on Special Cases concerning the Regulation of Regulation-Free Special Zones and Special Economic Zones for Specialized Regional Development:
1. Where the statutes or regulations governing permission, approval, certification, verification, authorization, etc. (hereinafter referred to as "permission, etc.") contain no standards, specifications, requirements, etc. suitable for the relevant new technology;
2. Where it is inappropriate to apply the standards, specifications, requirements, etc. specified in the statutes or regulations governing permission, etc., to the relevant new technology;
3. Where it is impossible to apply for permission, etc. under other statutes or regulations.
(2) Upon receipt of an application under paragraph (1), the Minister of Science and ICT shall notify the head of a related central administrative agency or a local government (hereinafter referred to as "related agency") of the details of the application.
(3) Upon receipt of an application under paragraph (1), the Minister of Science and ICT may grant special treatment for demonstration, after review by the heads of related agencies under paragraph (5) and deliberation and decision by the Committee. In such cases, the Minister of Science and ICT may impose conditions on special treatment for demonstration.
(4) The validity period of special treatment for demonstration shall be prescribed by Presidential Decree within two years. In such cases, the validity period may be extended only once, and a person who intends to extend the validity period shall apply therefor to the Minister of Science and ICT two months before the expiration of the validity period.
(5) Upon receipt of notification under paragraph (2), the heads of related agencies shall review the details of the relevant application and provide the findings of the review in writing to the Minister of Science and ICT within 30 days: Provided, That where an applicant for special treatment for demonstration is requested to supplement data for a review as to whether special treatment for demonstration is granted, the period required to supplement data is not included in such period, and also in such cases, the findings of the review shall be provided within 90 days.
(6) The Minister of Science and ICT shall submit to the Committee the issue as to whether to grant special treatment for demonstration, with the findings of a review provided by the heads of related agencies under paragraph (5). In such cases, the Committee shall deliberate and decide on the issue in consideration of the following:
1. Innovativeness of the relevant new technology;
2. Whether the lives or safety of the people, or the environment is undermined, and the safe protection and management of personal information;
3. Appropriateness of special treatment for demonstration;
4. Other matters necessary for granting special treatment for demonstration.
(7) The heads of related agencies may provide support necessary for granting special treatment for demonstration under paragraph (3).
(8) If necessary for granting special treatment for demonstration, the Minister of Science and ICT may designate an institution or organization having professional human resources and technologies prescribed by Presidential Decree as a testing and inspection agency to have it perform testing and inspection of new technologies.
(9) Except as provided in paragraphs (1) through (8), matters necessary for applications for special treatment for demonstration and detailed standards for reviewing such applications shall be prescribed by Presidential Decree.
[This Article Newly Inserted on Jun. 9, 2020]
 Article 16-3 (Management and Supervision of Special Treatment for Demonstration)
(1) The Minister of Science and ICT and the heads of related agencies shall jointly manage and supervise activities regarding special treatment for demonstration granted and implemented in accordance with Article 16-2 (3).
(2) The head of a related agency and a person granted special treatment for demonstration under Article 16-2 (3) (hereinafter referred to as "person granted special treatment for demonstration") shall inform the users of new technologies of the fact that special treatment for demonstration is granted, the validity period of such special treatment, etc. and actively respond to matters concerning the lives, health, and safety of the users, the environment, the safe protection and management of their personal information, etc.
(3) A person granted special treatment for demonstration shall submit the results of the application of special treatment for demonstration to the Minister of Science and ICT and the heads of related agencies within 30 days from the expiration date of the validity period, as prescribed by Presidential Decree.
(4) Where deemed necessary to amend relevant statutes or regulations before the validity period of special treatment for demonstration expires, or where deemed necessary to amend relevant statutes or regulations after reviewing the results of application submitted pursuant to paragraph (3), the head of a related agency shall amend such statutes or regulations.
(5) The Minister of Science and ICT may disclose the results of the application of special treatment for demonstration under paragraph (3) to promote new technologies and research and development in special research and development zones.
(6) When a person granted special treatment for demonstration causes any personal or physical damage to the users of a new technology due to such new technology, he/she shall be liable to compensate for such damage: Provided, That the foregoing shall not apply where a person granted special treatment for demonstration proves that he/she has not caused such damage by intention or negligence.
(7) A person granted special treatment for demonstration shall purchase liability insurance to assume liability to compensate for damage under paragraph (6): Provided, That where the person cannot purchase liability insurance, he/she shall prepare a separate compensation plan in accordance with the standards, methods, procedures, etc. for compensation prescribed by Presidential Decree.
(8) Where the statutes and regulations governing permission, etc. for the relevant new technology are prepared, a person granted special treatment for demonstration shall obtain permission, etc. under such statutes and regulations without delay.
(9) Except as provided in paragraphs (1) through (8), matters necessary for the management, supervision, etc. of special treatment for demonstration shall be prescribed by Presidential Decree.
[This Article Newly Inserted on Jun. 9, 2020]
 Article 16-4 (Support for Special Treatment for Demonstration)
The Minister of Science and ICT may provide administrative and financial support prescribed by Presidential Decree to smoothly facilitate demonstration for the promotion of new technologies.
[This Article Newly Inserted on Jun. 9, 2020]
 Article 16-5 (Revocation of Granting of Special Treatment for Demonstration)
(1) Where a person granted special treatment for demonstration falls under any of the following, the Minister of Science and ICT may order such person to take corrective measures or may revoke such granting following deliberation and decision of the Committee: Provided, That the granting shall be revoked in cases falling under subparagraph 1:
1. Where he/she has been granted special treatment for demonstration by fraudulent or other illegal means;
2. Where he/she fails to meet the conditions referred to in the latter part of Article 16-2 (3);
3. Where he/she ceases to meet the standards for review referred to in Article 16-2 (9);
4. Where it is deemed obviously impossible to attain the purpose of special treatment for demonstration.
(2) Where the use or provision of new technologies causes or is likely to cause any harm to the lives or safety of the people following the granting of special treatment for demonstration, the Minister of Science and ICT may order temporary suspension of the use, provision, etc. of such new technologies or other necessary measures.
(3) The Minister of Science and ICT shall hold a hearing where he/she intends to revoke the granting of special treatment for demonstration under paragraph (1).
(4) A person subject to revocation of the granting of special treatment for demonstration under paragraph (1) shall not use or provide the relevant new technologies.
[This Article Newly Inserted on Jun. 9, 2020]
 Article 17 (Participation in Investment Associations)
The Promotion Foundation of Special Research and Development Zones established under Article 46 (hereinafter referred to as the "Promotion Foundation") may join an investment association established for investment in small and medium enterprises under the Framework Act on Small and Medium Enterprises in a special zone as a member of the association: <Amended on Mar. 11, 2015; Dec. 22, 2020>
1. Deleted; <Dec. 22, 2020>
2. Deleted; <Dec. 22, 2020>
3. Deleted; <Dec. 22, 2020>
4. Deleted; <Dec. 22, 2020>
5. Deleted; <Dec. 22, 2020>
6. Deleted; <Dec. 22, 2020>
7. Deleted. <Dec. 22, 2020>
[This Article Wholly Amended on Jan. 26, 2012]
 Article 18 (Promotion of Research and Production Clusters Specializing in Core Industries)
(1) The State and local governments shall create research and production clusters for each special area of technology in a special zone and formulate and implement policies necessary for expanding mutual exchange therefor.
(2) When the Minister of Science and ICT and the heads of related central administrative agencies implement a special zone promotion project, each of them shall give priority to considering the fostering of a research and production cluster created under paragraph (1). <Amended on Mar. 23, 2013; Jul. 26, 2017>
(3) The Minister of Science and ICT shall formulate policies necessary for establishing an integrated database system by interlinking various databases of technical information in each research and production cluster under paragraph (1). <Amended on Mar. 23, 2013; Jul. 26, 2017>
[This Article Wholly Amended on Jan. 26, 2012]
CHAPTER IV DISSEMINATION OF OUTCOMES FROM OPERATION OF SPECIAL ZONES
 Article 19 (Formulation and Implementation of Policies to Spread Results of Operation of Special Zones)
The Minister of Science and ICT shall, under the comprehensive plan to promote special zones, formulate and implement policies for the following activities in order to disseminate and propagate the major outcomes of the operation of special zones, in connection with the City/Do development plans formulated under Article 7 of the Special Act on Balanced National Development: <Amended on Mar. 23, 2013; Jan. 7, 2014; Jul. 26, 2017>
1. Invigorating joint research with universities, research institutes, and companies inside and outside of a special zone;
2. Promoting the transfer of the outcomes of research and development projects to other regions and the commercialization of such outcomes;
3. Invigorating mutual exchange and cooperation of researchers and technical personnel;
4. Other activities necessary for spreading the outcomes of the operation of special zones.
[This Article Wholly Amended on Jan. 26, 2012]
 Article 20 (Establishment of Information Systems about Technologies and Markets in Special Zones)
(1) The Promotion Foundation shall gather and computerize information about major technologies, equipment, human resources in special zones, related markets, etc. and shall provide support to ensure that information about technologies in special zones and markets therefor can be utilized nationwide.
(2) When the Promotion Foundation computerizes information about technologies in special zones and markets therefor pursuant to paragraph (1), it shall execute the computerization in harmony with the establishment of databases of knowledge and information about science and technology and national research and development projects under Article 26 (1) of the Framework Act on Science and Technology.
[This Article Wholly Amended on Jan. 26, 2012]
 Article 21 (Organization and Operation of Research Groups for Each Field of Technology)
(1) The Minister of Science and ICT may assist universities, research institutes, and companies in and out of special zones in organizing research groups and promoting exchange and cooperation, in order to facilitate dissemination of outcomes from the operation of special zones nationwide. <Amended on Mar. 23, 2013; Jul. 26, 2017>
(2) Further details of assistance to research groups under paragraph (1) shall be prescribed by Presidential Decree.
[This Article Wholly Amended on Jan. 26, 2012]
CHAPTER V ENCOURAGEMENT OF FOREIGN INVESTMENT AND IMPROVEMENT OF LIVING CONDITIONS FOR FOREIGNERS
 Article 22 (Assistance in Establishment and Operation of Schools for Foreigners)
(1) The State and local governments may subsidize schools for foreigners under Article 60-2 of the Elementary and Secondary Education Act for the purchase of building sites, construction of facilities, or operation of schools, in order to improve educational conditions for foreigners in special zones.
(2) When domestic universities in a special zone seek the joint operation of curricula with foreign colleges or exchange of human resources and materials, the State and local governments may provide support necessary therefor.
[This Article Wholly Amended on Jan. 26, 2012]
 Article 23 (Designation and Operation of Hospitals for Foreigners)
(1) The State and local governments shall designate hospitals for foreigners to provide convenient medical services to foreigners in special zones.
(2) Matters necessary for the designation and operation of hospitals for foreigners under paragraph (1) shall be prescribed by Ordinance of the Ministry of Health and Welfare.
[This Article Wholly Amended on Jan. 26, 2012]
 Article 23-2 Deleted. <Feb. 3, 2015>
 Article 24 (Tax Benefits and Subsidies for Foreign-Invested Companies and Foreign Research Institutes)
(1) The State and local governments may provide tax benefits to foreign-invested companies and foreign research institutes (hereinafter referred to as "foreign-invested institutions") located in special zones, as provided for in tax-related statutes.
(2) The State and local governments may subsidize fund for the establishment of various convenience facilities for foreigners, including houses foreign-invested institutions for the development of building sites to be leased to foreign-invested institutions and, in order to attract foreign-invested institutions to special zones.
(3) Notwithstanding the State Property Act, the Public Property and Commodity Management Act, and other statutes and regulations, the State and local governments may permit foreign-invested institutions located in a special zone to use or benefit from State or public property or lease or sell such property to such foreign-invested institutions under a free contract.
(4) Article 15 shall apply mutatis mutandis to the use, benefitting from, or leasing of State or public property to foreign-invested institutions located in a special zone.
[This Article Wholly Amended on Jan. 26, 2012]
 Article 25 (Establishment of Ombudsman System)
(1) The Promotion Foundation shall establish an ombudsman system in order to assist foreign-invested institutions in resolving difficulties arising in the course of business management and foreigners' living.
(2) Ombudsmen referred to in paragraph (1) shall be commissioned by the Minister of Science and ICT, after deliberation by the Committee, from among persons who have abundant knowledge and experience in foreign investment affairs. <Amended on Mar. 23, 2013; Jul. 26, 2017>
(3) Matters necessary for the operation of the ombudsman system and other matters shall be prescribed by Presidential Decree.
[This Article Wholly Amended on Jan. 26, 2012]
CHAPTER VI IMPLEMENTATION OF SPECIAL ZONE DEVELOPMENT PROJECTS
 Article 26 (Implementers of Special Zone Development Projects)
(1) Each special zone development project shall be implemented by a person designated by the Minister of Science and ICT (hereinafter referred to as "project implementer"), from among the following persons: <Amended on Mar. 23, 2013; Jul. 26, 2017; Dec. 31, 2018; Dec. 8, 2020>
1. A local government, public corporation incorporated under Article 5 of the Management of Public Institutions, local public enterprise established under Article 3 (1) of the Local Public Enterprise Act or person mandated by the implementation of industrial complex development project under any other statute;
2. The SMEs and Startups Corporation incorporated under Article 68 of the Small and Medium Enterprises Promotion Act or the Korea Industrial Complex Corporation incorporated under Article 45-17 of the Industrial Cluster Development and Factory Establishment Act;
3. The Promotion Foundation;
4. A person who intends to establish facilities appropriate for a special zone development project or a person deemed capable of establishing such facilities and developing a building site therefor, who meets the requirements prescribed by Presidential Decree;
5. A corporation incorporated with joint investment by persons specified in subparagraphs 1 through 3 to develop a special zone, which meets the requirements prescribed by Presidential Decree;
6. The owner of a parcel of land in a special zone or an association established by such owners to develop a special zone.
(2) When a project implementer is designated, the Minister of Science and ICT shall give public notice of the designation. <Amended on Mar. 23, 2013; Jul. 26, 2017>
(3) If a project implementer designated under paragraph (1) 1 deems it necessary for efficiently implementing a special zone development project, it may mandate a person who plans to move into the special zone to implement a part of the special zone development project on its behalf, as prescribed by Presidential Decree.
[This Article Wholly Amended on Jan. 26, 2012]
 Article 26-2 (Revocation of Designation of Project Implementers and Designation of Replacements)
(1) In any of the following cases, the Minister of Science and ICT may revoke the designation of a project implementer: Provided, That designation shall be revoked in cases referred to in subparagraph 1: <Amended on Mar. 23, 2013; Jul. 26, 2017>
1. If the project implementer obtains designation under Article 26 or approval under Article 27 by fraudulent or other illegal means;
2. If it is anticipated impracticable to complete development within the implementation period because of delay in the purchase of land due to the project implementer's fault;
3. If the project implementer fails to meet the requirements for qualification referred to in Article 26 (1) 4 through 6;
4. If the project implementer fails to apply for approval of an implementation plan for the relevant special zone development project under Article 27 (1) (hereinafter referred to as "implementation plan") without a justifiable ground within a period prescribed by Presidential Decree;
5. If the project implementer fails to execute an implementation plan without a justifiable ground.
(2) When the Minister of Science and ICT revokes the designation of a project implementer under paragraph (1), he/she may designate another project implementer for replacement. Article 26 shall apply mutatis mutandis to such cases. <Amended on Mar. 23, 2013; Jul. 26, 2017>
(3) A project implementer designated for replacement under paragraph (2) shall succeed to the status of the former project implementer with respect to approval of the special zone development project and the implementation plan.
(4) When the Minister of Science and ICT revokes the designation of a project implementer or designates a project implementer for replacement under paragraph (1) or (2), he/she shall give public notice thereof. <Amended on Mar. 23, 2013; Jul. 26, 2017>
(5) When the Minister of Science and ICT intends to revoke the designation of a project implementer under paragraph (1), he/she shall hold a hearing thereon. <Amended on Mar. 23, 2013; Jul. 26, 2017>
[This Article Newly Inserted on Jan. 26, 2012]
 Article 27 (Approval of Implementation Plans)
(1) Project implementers shall prepare an implementation plan which includes the matters prescribed by Presidential Decree, such as the scale and details of the project, the implementation period, and the funding plan, within two years from the date of public notice given under Article 26 (2), and shall obtain approval thereof from the Mayor/Do Governor prescribed by Presidential Decree after consulting with the Promotion Foundation thereon (such consultation shall be omitted where the Promotion Foundation is designated as a project implementer). This shall also apply where a project implementer intends to revise any approved matter: Provided, That where a project implementer has the authority to approve implementation plans as well, the project implementer shall obtain approval thereof from the Minister of Science and ICT. <Amended on Mar. 23, 2013; Jul. 26, 2017>
(2) Upon receipt of an application for the approval of an implementation plan or an application for a revision to an implementation plan prescribed in paragraph (1), the Mayor/Do Governor (referring to the Minister of Science and ICT, if the project implementer is the person who has authority to approve the implementation plan; hereafter the same shall apply in paragraph (3), Articles 28 (2), 29 (2), and 29-2 (1), the proviso of Article 30 (1), and Article 32 (1)) shall notify the applicant of whether he/she approves it or of the reasons why approval process is delayed within 20 days from the filing date of the application (excluding the period during which the head of a central administrative agency shall present his/her opinion under Article 29 (3)). Where the notice of whether the application is approved or of the reasons why approval process is delayed is not given within the specified period, the application shall be deemed to be approved on the day immediately after the end of the period. <Newly Inserted on Feb. 3, 2015; Jul. 26, 2017>
(3) Where a Mayor/Do Governor gives notice of the reasons why approval process is delayed under paragraph (2), he/she may extend the period for approval process prescribed in paragraph (2) by not more than ten days. <Newly Inserted on Feb. 3, 2015>
(4) An implementation plan shall include a district unit plan formulated pursuant to Article 52 of the National Land Planning and Utilization Act. <Amended on Feb. 3, 2015>
[This Article Wholly Amended on Jan. 26, 2012]
 Article 28 (Public Notice of Approval of Implementation Plans)
(1) Where a Mayor/Do Governor approves an implementation plan or a revision to an implementation plan under Article 27 (1), he/she shall give public notice of the details thereof in the relevant official report, without delay, and shall forward copies of the relevant documents to the Minister of Science and ICT: Provided, That, where the Minister of Science and ICT approves an implementation plan prescribed in the proviso of Article 27 (1), he/she shall give public notice of the details thereof in the Official Gazette. <Amended on Mar. 23, 2013; Feb. 3, 2015; Jul. 26, 2017>
(2) A Mayor/Do Governor shall make the details publicly notified under paragraph (1) available for public inspection for at least 14 days.
[This Article Wholly Amended on Jan. 26, 2012]
 Article 29 (Authorization or Permission Deemed Granted)
(1) Where a project implementer has obtained approval of an implementation plan or a revision to such plan pursuant to Article 27 (1), the project implementer shall be deemed to have obtained, completed, or filed the following permission, authorization, designation, approval, consultation, or reporting (hereinafter referred to as "authorization, permission, etc."); where the approval of an implementation plan is publicly notified pursuant to Article 28 (1), authorization, permission, etc. under the following relevant statutes shall be deemed to be publicly notified or announced: <Amended on Jan. 14, 2014; May 28, 2014; Aug. 11, 2015; Dec. 27, 2016; Feb. 8, 2017; Mar. 31, 2020; Jun. 9, 2020>
1. Permission for changing the form and quality of land prescribed in Article 21-2 of the Grassland Act or permission for diversion of grassland under Article 23 of the aforesaid Act;
2. Permission for, or reporting on, the diversion of a mountainous district under Article 14 or 15 of the Management of Mountainous Districts Act; permission for, or reporting on, cutting standing timber under Article 36 (1) or (4) of the Forest Resources Creation and Management Act; permission for, or reporting on, acts in a reserved forest (excluding a forest genetic resources protection zone) under Article 9 (1) or (2) 1 or 2 of the Forest Protection Act; and the cancellation of designation of a reserved forest under Article 11 (1) 1 of the aforementioned Act;
3. Permission for, or consultation on, the diversion of farmland under Article 34 of the Farmland Act;
4. Permission for use of agricultural production infrastructure prescribed in Article 23 of the Rearrangement of Agricultural and Fishing Villages Act and approval of a plan for a rural tourism and resort complex development project prescribed in Article 82 (2) of the aforesaid Act;
5. Approval for, or reporting on, the establishment of a factory under Article 13 (1) of the Industrial Cluster Development and Factory Establishment Act;
6. Consultation with, or approval from, a river management agency under Article 6 of the River Act; permission for the implementation of a river project under Article 30 of the aforesaid Act; and permission to occupy and use a river under Article 33 of the aforesaid Act;
7. Permission to occupy and use public waters under Article 8 of the Public Waters Management and Reclamation Act; approval of an implementation plan for occupation or use under Article 17 of the aforesaid Act (excluding a site to be reclaimed with a reclamation license granted); a reclamation license of public waters under Article 28 of the aforementioned Act; consultation on, or approval for, reclamation implemented by the State or other entity prescribed in Article 35 of the aforementioned Act; and approval of an implementation plan for reclamation of public waters under Article 38 of the aforementioned Act;
8. Approval for, or reporting on, the installation of waste disposal facilities under Article 29 of the Wastes Control Act;
9. Authorization for a general waterworks project or an industrial waterworks project under Articles 17 or 49 of the Water Supply and Waterworks Installation Act and authorization for the installation of exclusive waterworks or exclusive industrial waterworks under Article 52 or 54 of the aforementioned Act;
10. Authorization for or reporting on a plan for works for electric installations for private use pursuant to Article 8 of the Electrical Safety Management Act;
12. Approval of a development plan of a tourist destination or tourism complex under Article 54 of the Tourism Promotion Act;
13. Permission for a road project implemented by a person other than a road management agency under Article 36 of the Road Act; permission for the occupation and use of the roads under Article 61 of the same Act; and consultation with, and approval from, a road management agency under Article 107 of the same Act;
14. Determination of an urban/Gun management plan prescribed in Article 30 of the National Land Planning and Utilization Act; permission for development acts under Article 56 of the aforementioned Act; designation of a project implementer for the construction of an urban/Gun planning facility under Article 86 of the aforementioned Act; and authorization for an implementation plan under Article 88 of the aforesaid Act;
15. Authorization for installation of a public sewerage system (applicable only to night soil treatment facilities) under Article 11 of the Sewerage Act; permission for the implementation of a public sewerage project under Article 16 of the aforesaid Act; and permission to occupy and use a public sewerage system under Article 24 of the aforementioned Act;
16. Permission for relocation of a grave under Article 27 of the Act on Funeral Services, etc.;
17. Designation of an urban development zone under Article 3 of the Urban Development Act; formulation of an urban development project plan under Article 4 of the aforesaid Act; designation of the implementer of an urban development project under Article 11 of the aforementioned Act; authorization for, or reporting on, the establishment of an Association under Article 13 of the aforementioned Act; and authorization of an implementation plan under Article 17 of the aforesaid Act;
18. Designation of a housing site development zone under Article 3 of the Housing Site Development Promotion Act; approval of a housing site development plan under Article 8 of the aforementioned Act; and approval of an implementation plan for a housing site development project under Article 9 of the aforementioned Act;
20. Permission for opening a private road under Article 4 of the Private Road Act;
21. Permission for lumbering, etc. under Article 14 of the Work against Land Erosion or Collapse Act or cancellation of designation of an erosion control area under Article 20 of the aforementioned Act;
22. Permission for implementation of small river construction works under Article 10 of the Small River Maintenance Act;
23. Permission to extract aggregate under Article 22 of the Aggregate Extraction Act;
24. Permission for use of State property under Article 30 of the State Property Act;
25. Permission for use or benefitting from public property under Article 20 of the Public Property and Commodity Management Act;
26. Consultation on the validity of the integrated energy supply under Article 4 of the Integrated Energy Supply Act;
27. Consultation on an energy use plan under Article 10 of the Energy Use Rationalization Act;
28. Approval of an implementation plan for the development of a logistics complex under Article 28 of the Act on the Development and Management of Logistics Facilities;
29. Designation of an implementer of an industrial complex development project under Article 16 of the Industrial Sites and Development Act; approval of an implementation plan for the development of a national industrial complex under Article 17 of the aforesaid Act; an amendment to an implementation plan for the development of a national industrial complex under Article 17-2 of the aforementioned Act; approval of an implementation plan for the development of a general industrial complex under Article 18 of the aforementioned Act; approval of an implementation plan for the development of an urban high-tech industrial complex under Article 18-2 of the aforementioned Act; and approval of a renovation implementation plan under Article 39-7 of the aforementioned Act.
(2) Where a Mayor/Do Governor intends to approve an implementation plan or a revision to such plan under Article 27 (1), he/she shall consult thereon with the heads of related central administrative agencies, if the implementation plan includes a matter specified in any subparagraph of paragraph (1).
(3) Upon receipt of a request for consultation under paragraph (2), the head of a related central administrative agency shall present his/her opinion within 20 days.
(4) Where the head of a related central administrative agency fails to present his/her opinion by the deadline specified under paragraph (3), consultation shall be deemed completed on the day immediately following the deadline. <Amended on Jun. 9, 2020>
[This Article Wholly Amended on Jan. 26, 2012]
[Title Amended on Jun. 9, 2020]
 Article 29-2 (Council on Special Zone Development Projects)
(1) If a Mayor/Do Governor deems it necessary for mediating differences between related central administrative agencies in the course of consultation under Article 29 (2) and for expediting consultation, he/she may organize and operate a council on special zone development projects (hereinafter referred to as "Council") with related central administrative agencies.
(2) Matters necessary for the organization and operation of, and assistance to, the Council and other matters shall be prescribed by Presidential Decree.
[This Article Newly Inserted on Jan. 26, 2012]
 Article 30 (Commencement of Special Zone Development Projects)
(1) Every special zone development project shall commence within one year from the date the relevant implementation plan is approved under Article 27 (1): Provided, That a Mayor/Do Governor may postpone the deadline for commencement of a project up to one year only on one occasion, if deemed inevitable to postpone the deadline of commencement. <Amended on Jun. 9, 2020>
(2) If a project fails to commence by the deadline for commencement specified under paragraph (1), the approval of the relevant implementation plan shall become invalid on the day immediately following the deadline for commencement of the project. <Amended on Jun. 9, 2020>
[This Article Wholly Amended on Jan. 26, 2012]
[Title Amended on Jun. 9, 2020]
 Article 30-2 (Development Projects Implemented in Free Economic Zones)
A development project implemented in a free economic zone designated under the Act on Designation and Management of Free Economic Zones, an innovation city constructed under the Special Act on the Construction and Development of Innovation Cities, or an industrial complex developed under the Industrial Sites and Development Act, which is located in a special zone, shall be governed by the relevant Act, respectively. <Amended on Dec. 26, 2017>
[This Article Newly Inserted on Jan. 26, 2012]
 Article 31 (Expropriation of Land)
(1) If deemed necessary for implementing the relevant special zone development project, a project implementer (excluding a project implementer specified in Article 26 (1) 6) may expropriate (or use; the same shall apply hereinafter) land, articles and rights as defined in Article 2 of the Act on Acquisition of and Compensation for Land, etc. for Public Works (hereinafter referred to as "land, etc.").
(2) For the purposes of paragraph (1), the public notice of approval of an implementation plan given under Article 28 (1) shall be deemed project approval and the public notice of project approval obtained or given under Articles 20 and 22 of the Act on Acquisition of and Compensation for Land, etc. for Public Works, and a petition for adjudication thereon may, notwithstanding Articles 23 and 28 of the same Act, be filed during the implementation period for a project specified in the relevant implementation plan pursuant to Article 27 (1) of this Act.
(3) The Central Land Tribunal shall have jurisdiction over adjudication on the expropriation of land, etc. under paragraph (1).
(4) Except as otherwise provided for in this Act, the Act on Acquisition of and Compensation for Land, etc. for Public Works shall apply mutatis mutandis to the expropriation of land, etc. under paragraph (1).
[This Article Wholly Amended on Jan. 26, 2012]
 Article 32 (Completion Inspections)
(1) When a project implementer wholly or partially completes the relevant special zone development project, he/she shall first consult with the Promotion Foundation thereon (excluding where the Promotion Foundation is designated as a project implementer) and undergo a completion inspection conducted by the competent Mayor/Do Governor. In such cases, the competent Mayor/Do Governor shall consult with the heads of related central administrative agencies thereon in advance.
(2) When a project implementer passes a completion inspection conducted pursuant to paragraph (1), he/she shall be deemed to pass a completion inspection or obtain approval of completion of a project under the authorization, permission, etc. granted under each subparagraph of Article 29 (1). <Amended on Jun. 9, 2020>
(3) No one shall use any parcel of land developed or any facility installed before the completion inspection under paragraph (1): Provided, That this shall not apply where the competent Mayor/Do Governor permits the use thereof, as prescribed by Presidential Decree.
(4) The head of the competent local government shall manage a zone of which a special zone development project is completed in accordance with the relevant district unit plan included in the implementation plan publicly notified under Article 28 (1).
[This Article Wholly Amended on Jan. 26, 2012]
 Article 32-2 (Re-Investment of Development Gains)
(1) A project implementer shall use some of development gains accrued from the relevant special zone development project for either of the following purposes, as prescribed by Presidential Decree:
1. Reducing the sale price or rent of sites for industrial or distribution facilities in the special zone;
2. Covering the construction cost of infrastructure or public facilities.
(2) A project implementer shall keep separate accounts of accrued development gains from other accounts and take other necessary measures to ensure that development gains referred to in paragraph (1) can be smoothly re-invested.
(3) Articles 8 through 12 of the Restitution of Development Gains Act shall apply mutatis mutandis to the calculation of development gains referred to in paragraph (1).
[This Article Newly Inserted on Jan. 26, 2012]
 Article 33 (Priority Support for Infrastructure)
The State and local governments shall give priority to providing support for the construction of infrastructure, including roads and water supply, as prescribed by Presidential Decree, in order to invigorate special zones: Provided, That industrial complexes designated under the Industrial Sites and Development Act (including national industrial complexes, general industrial complexes, and urban high-tech industrial complexes deemed designated under Article 43 (1)), which are located in a special zone, shall be governed by the aforesaid Act.
[This Article Wholly Amended on Jan. 26, 2012]
 Article 33-2 (Bearing of Expenses)
(1) Expenses incurred in implementing a special zone development project shall be borne by the relevant project implementer: Provided, That the State or a local government may partially subsidize a project implementer for expenses incurred in implementing a special zone development project, as prescribed by Presidential Decree.
(2) Expense items for which a State or local government may partially subsidize under the proviso of paragraph (1) and the ratio of subsidization shall be prescribed by Presidential Decree.
[This Article Wholly Amended on Jan. 26, 2012]
CHAPTER VII MANAGEMENT OF SPECIAL ZONES
 Article 34 (Managing Authority of Special Zones)
(1) The managing authority of a special zone shall be the Minister of Science and ICT, and the management agency shall be the Promotion Foundation. <Newly Inserted on Dec. 22, 2020>
(2) The Minister of Science and ICT shall formulate or revise a special zone management plan after hearing the opinion thereon from the competent Mayor/Do Governor and consulting with the heads of related central administrative agencies thereon, and publicly notify the special zone management plan so formulated or revised: Provided, That the procedure for hearing opinions and consultation shall be omitted for any modification to minor matters prescribed by Presidential Decree.<Amended on Mar. 23, 2013; Jul. 26, 2017; Dec. 22, 2020>
(3) A special zone management plan referred to in paragraph (2) (hereinafter referred to as “special zone management plan") shall include the following: <Amended on Dec. 22, 2020>
1. Basic direction-setting for the management of the relevant special zone;
2. Location and area of the special zone;
3. A plan for the zoning and management of land in the special zone by its use;
4. Construction of infrastructure in the special zone, such as water supply, energy, communications, transportation, and distribution facilities;
5. Matters regarding the conservation of greenbelts and the environment.
(4) The Minister of Science and ICT shall forward a special zone management plan formulated and publicly notified under paragraph (2) to the heads of related central administrative agencies and the competent Mayor/Do Governor, and, upon receipt of such plan, the Mayor/Do Governor shall, without delay, make copies of relevant documents and drawings available to the general public for inspection. <Amended on Mar. 23, 2013; Jul. 26, 2017; Dec. 22, 2020>
[This Article Wholly Amended on Jan. 26, 2012]
[Title Amended on Dec. 22, 2020]
 Article 35 (Zoning of Land by Use)
(1) Land shall be classified into the following areas by its use pursuant to Article 34 (3) 3: <Amended on Dec. 22, 2020>
1. A residential area: An area necessary for the dwelling of people residing in a special zone and for the protection of a healthy living environment;
2. A commercial area: An area necessary for commercial and business functions in a special zone;
3. A green area: An area necessary for the preservation of greenbelts to create a pleasant research environment in a special zone;
4. An area for educational, research and commercialization facilities: An area necessary for enhancing the efficiency of education and research and promoting the commercialization of outcomes from research and development projects by concentrating facilities and buildings for education and research, and commercialization of outcomes from research and development projects to exchange information among institutions in a special zone and to share research instruments;
5. An area for industrial facilities: An area necessary for production activities of high-tech companies, etc. in a special zone.
(2) Where the Minister of Science and ICT deems it necessary, or upon receipt of a request from a Mayor/Do Governor, the Minister of Science and ICT may divide a residential area under paragraph (1) 1 and an area for industrial facilities under paragraph (1) 5 into subdivisions according to the relevant special zone management plan, as prescribed by Presidential Decree: Provided, That the Minister of Science and ICT shall consult with the head of the relevant central administrative agency thereon, where an area for industrial facilities under paragraph (1) 5 overlaps with a national industrial complex under subparagraph 8 (a) of Article 2 of the Industrial Sites and Development Act. <Amended on Mar. 27, 2015; Jul. 26, 2017>
(3) The Minister of Science and ICT may request the Minister of Land, Infrastructure and Transport and the head of the competent local government to reflect the details of matters that shall be determined by an urban/Gun plan under the National Land Planning and Utilization Act, among matters included in a special zone management plan formulated and announced under Article 34 (2) in the relevant urban/Gun plan. <Amended on Mar. 23, 2013; Jul. 26, 2017; Dec. 22, 2020>
[This Article Wholly Amended on Jan. 26, 2012]
 Article 36 (Regulation on Building Activities)
(1) In order to maintain a pleasant research environment in the areas specified in the subparagraphs of Article 35 (1), the Minister of Science and ICT may place partial restrictions on the types of buildings, the construction of which is permitted in the special-purpose areas designated under Article 76 of the National Land Planning and Utilization Act, as prescribed by Presidential Decree, following consultation with the Minister of Land, Infrastructure and Transport and the head of the competent local government. <Amended on Mar. 23, 2013; Jul. 26, 2017>
(2) To ensure that the buildings constructed in a special zone are appropriate for the functions of the special zone, the head of the competent local government may organize a subcommittee within the Building Committee under Article 4 of the Building Act to examine the designs of buildings in excess of the size prescribed by Presidential Decree.
[This Article Wholly Amended on Jan. 26, 2012]
 Article 37 (Contracts to Move into Special Zones)
(1) A person who intends to move into an area for educational, research, and commercialization facilities shall enter into a contract to move into the area with the relevant management agency. The foregoing shall also apply where a person who intends to revise any matter prescribed by Presidential Decree among matters specified in a contract to move into the area. <Amended on Mar. 23, 2013; Jul. 26, 2017; Dec. 22, 2020>
(2) A person who enters into a contract to move into an area for educational, research, and commercialization facilities under paragraph (1) shall be deemed to have obtained approval for establishment of a factory pursuant to Article 13 of the Industrial Cluster Development and Factory Establishment Act. <Amended on Dec. 22, 2020>
[This Article Wholly Amended on Jan. 26, 2012]
[Title Amended on Dec. 22, 2020]
 Article 38 (Restrictions on Transfer of Building Sites)
(1) If a resident institution intends to transfer a building site, facility, or building (hereinafter referred to as "building or other facility") in an area for educational, research, and commercialization facilities, it shall file a report thereon with the relevant management agency, as prescribed by Presidential Decree. <Amended on Mar. 23, 2013; Jul. 26, 2017; Dec. 22, 2020>
(2) A person who intends to acquire, lease, rent for use, sublease a building or other facilities in an area for educational, research, and commercialization facilities or who intends to acquire the leasehold of buildings or other facilities on a deposit basis shall, in advance, enter into a contract to move into the area pursuant to Article 37. <Amended on Dec. 22, 2020>
(3) The transfer price of a building or other facilities referred to in paragraph (1) shall not exceed any of the following amounts: <Amended on Jan. 19, 2016; Apr. 7, 2020>
1. Transfer price of a building site: The aggregate of the following amounts:
(a) The acquisition price of the building site;
(b) An amount calculated by multiplying the acquisition price by the increase rate of producer price (referring to the rate calculated with the producer price index surveyed and published by the Bank of Korea pursuant to Article 86 of the Bank of Korea Act) of the building site during the period from the date of acquisition to the date of transfer;
(c) Expenses prescribed by Presidential Decree;
2. Transfer price of a facility or building: The amount appraised by an appraiser corporation, etc. under the Act on Appraisal and Certified Appraisers.
(4) Matters necessary for the calculation of transfer prices under paragraph (3), including acquisition prices and the date of acquisition, shall be prescribed by Presidential Decree.
[This Article Wholly Amended on Jan. 26, 2012]
 Article 39 (Acquisition of Buildings through Auction)
A person who acquires a building or facility in an area for educational, research, and commercialization facilities from a resident institute through an auction or pursuant to any other statute shall enter into a contract to move into the area pursuant to Article 37 within six months from the date of acquisition. <Amended on Dec. 22, 2020>
[This Article Wholly Amended on Jan. 26, 2012]
 Article 40 (Termination of Contracts to Move into Special Zones)
(1) If a resident institute falls under any of the following, the relevant management agency may issue a corrective order to the resident institute, which shall be complied with within a specified period not longer than six months, and may terminate a contract to move into a special zone, if the resident institute fails to comply with the order: <Amended on Mar. 23, 2013; Jul. 26, 2017; Apr. 17, 2018; Dec. 22, 2020>
1. Where a resident institute fails to commence, without a justifiable ground, installation works of facility or construction works of building within one year after entering into a contract to move into a special zone;
2. Where it is deemed impracticable to install a facility or to construct a building;
3. Where a resident institute fails to commence, without a justifiable ground, the relevant task within six months after the completion of the facility or building or fails to conduct the relevant affairs for at least six consecutive months;
4. Where a resident institute fails to enter into a contract to revise any matter specified in a contract to move into the special zone (hereinafter referred to as "revised contract to move into a special zone"), in violation of Article 37;
5. Where a resident institute transfers a building or other facility to any third person in violation of Article 38 (1).
(2) A resident institute whose contract to move into a special zone is terminated under paragraph (1) shall suspend its business affairs immediately, excluding the business affairs prescribed by Presidential Decree, such as settlement of pending transactions. <Amended on Dec. 22, 2020>
(3) Where a management agency intends to terminate a contract to move into a special zone pursuant to paragraph (1), he/she shall hear the opinions of the relevant party to such contract. <Amended on Dec. 22, 2020>
[This Article Wholly Amended on Jan. 26, 2012]
[Title Amended on Dec. 22, 2020]
 Article 41 (Orders to Transfer Buildings)
(1) The Minister of Science and ICT may order a person who fails to enter into a contract to move into a special zone pursuant to Article 37 (including where a person shall enter into a contract to move into a special zone pursuant to Article 38 (2) or 39) or a resident institute whose contract to move into a special zone is terminated under Article 40 (1) to transfer the building or other facility that the person or institute owns in the area for educational, research and commercialization facilities within a specified period not less than six months. The foregoing shall also apply where a resident institute permanently closes its business. <Amended on Mar. 23, 2013; Jul. 26, 2017; Dec. 22, 2020>
(2) Article 38 (3) and (4) shall apply mutatis mutandis to the transfer of building or other facility pursuant to paragraph (1).
[This Article Wholly Amended on Jan. 26, 2012]
 Article 42 (Restrictions on Permission for Construction)
No head of any competent local government shall permit any of the following persons to either install a facility or construct a building in an area for educational, research and commercialization facilities or operate a business in such area pursuant to any relevant statute or regulation: <Amended on Dec. 22, 2020>
1. A person who fails to enter into a contract to move into the area pursuant to Article 37 or who fails to enter into a revised contract to move into the area;
2. A resident institute whose contract to move into the area is terminated pursuant to Article 40 (1).
[This Article Wholly Amended on Jan. 26, 2012]
 Article 43 (Special Provisions regarding Industrial Complexes)
(1) When a special zone development plan is publicly announced, the relevant special zone shall be deemed designated as a national industrial complex, general industrial complex, or urban high-tech industrial complex as defined in subparagraph 8 (a) through (c) of Article 2 of the Industrial Sites and Development Act, depending upon the details of the plan.
(2) Notwithstanding Article 30 (2) of the Industrial Cluster Development and Factory Establishment Act and Article 18 (5) of the Foreign Investment Promotion Act, the Promotion Foundation shall manage special zones: Provided, That the Promotion Foundation shall entrust the management of the following areas within a special zone to the following institutions or specialized institutions prescribed by Presidential Decree: <Amended on Dec. 8, 2020; Dec. 22, 2020>
1. A national industrial complex as defined in subparagraph 8 (a) of Article 2 of the Industrial Sites and Development Act: The Korea Industrial Complex Corporation under Article 45-17 of the Industrial Cluster Development and Factory Establishment Act;
2. An area prescribed by Presidential Decree among general industrial complexes as defined in subparagraph 8 (b) of Article 2 of the Industrial Sites and Development Act and urban high-tech industrial complexes as defined in subparagraph 8 (c) of Article 2 of the aforesaid Act: The Industrial Complex Administration Corporation entrusted with administration affairs under Article 31 (1) of the Industrial Cluster Development and Factory Establishment Act.
(3) The Promotion Foundation shall formulate regulations on business operations for the management of special zones and shall obtain approval thereof from the Minister of Science and ICT. The foregoing shall also apply where the Promotion Foundation intends to amend approved regulations. <Amended on Mar. 23, 2013; Jul. 26, 2017>
(4) Except as otherwise provided for in this Act, the Industrial Cluster Development and Factory Establishment Act shall apply mutatis mutandis to the management of areas for industrial facilities.
(5) An institution that manages special zones under paragraph (2) shall enter into an agreement with the Promotion Foundation on the management of the special zones, as prescribed by Presidential Decree. <Amended on Dec. 22, 2020>
[This Article Wholly Amended on Jan. 26, 2012]
 Article 44 (Special Provisions regarding the National Land Planning and Utilization Act)
Notwithstanding Articles 77 and 78 of the National Land Planning and Utilization Act, the competent local government may prescribe different maximum limits on the building-to-land ratios and the floor area ratios by municipal ordinance within the limits prescribed by Presidential Decree, if necessary for the promotion of a special zone.
[This Article Wholly Amended on Jan. 26, 2012]
 Article 45 (Stabilization of Real Estate Prices in Special Zones)
(1) The Minister of Science and ICT, the heads of related central administrative agencies, and Mayors/Do Governors shall take measures necessary for stabilizing real estate prices, including land and buildings in special zones and adjacent areas. <Amended on Mar. 23, 2013; Jul. 26, 2017>
(2) A Mayor/Do Governor shall request the heads of related central administrative agencies to take the following measures for an area in a special zone, if speculative investment in real estate or a rapid increase in real estate prices is expected to occur in such area: <Amended on Jan. 19, 2016>
1. Designation of the area as an area provided for in Article 104-2 (1) of the Income Tax Act;
2. Designation of the area as an overheated speculation district provided for in Article 63 of the Housing Act;
3. Designation of the area as an area subject to permission for land transaction contracts under Article 10 of the Act on Report on Real Estate Transactions;
4. Other measures necessary for stabilizing real estate prices.
[This Article Wholly Amended on Jan. 26, 2012]
CHAPTER VIII PROMOTION FOUNDATION OF SPECIAL RESEARCH AND DEVELOPMENT ZONES
 Article 46 (Establishment)
(1) A Promotion Foundation of Special Research and Development Zones shall be established in a special zone in order to efficiently implement projects for promoting special zones.
(2) The Promotion Foundation shall be a legal entity.
(3) The Promotion Foundation shall be duly formed when the registration for its establishment is completed at the registry office having jurisdiction over its principal place of business.
(4) Matters necessary for the registration of establishment of the Promotion Foundation shall be prescribed by Presidential Decree.
[This Article Wholly Amended on Jan. 26, 2012]
 Article 47 (Articles of Association)
(1) The Promotion Foundation's articles of association shall include the following:
1. Purposes;
2. Name;
3. Locations of its principal place of business and branch offices;
4. Matters regarding business affairs and the execution thereof;
5. Matters regarding property and accounting;
6. Matters regarding executive officers and employees;
7. Matters regarding the board of directors;
8. Matters regarding the amendment of articles of incorporation;
9. Matters regarding public announcement;
10. Other necessary matters.
(2) When the Promotion Foundation intends to amend its articles of association, it shall obtain authorization therefor from the Minister of Science and ICT. <Amended on Mar. 23, 2013; Jul. 26, 2017>
[This Article Wholly Amended on Jan. 26, 2012]
 Article 48 (Business Activities)
(1) The scope of business of the Promotion Foundation shall be as follows: <Amended on Mar. 23, 2013; Mar. 11, 2015; Jul. 26, 2017; Dec. 22, 2020>
1. The following business activities for the development, management, and operation of special zones:
(a) Acquisition, development, supply, and management of land, buildings, and facilities, equipment, and materials for research and development;
(b) Construction of infrastructure, such as facilities for water supply, energy, information and communications, transportation, and distribution;
(c) Invitation, establishment, management, and operation of educational, health, medical service, culture, sports, and welfare facilities to improve the living environment in special zones, including schools and hospitals;
(d) Exhibition and advertising of outcomes from research and development projects and establishment and invitation of facilities to raise awareness of the importance of science and technology;
(e) Business activities for assistance in establishing a special zone management plan and the execution of such plan;
(f) Business activities for sale and lease in the areas for educational, research, and commercialization facilities and the areas for industrial facilities, follow-up management of such sale and lease, and moving into such areas;
(g) Business activities for upgrading the structure of special zones;
(h) Business activities for the establishment of environment-friendly special zones and the prevention of environmental pollution;
(i) Other necessary business activities concerning the operation of special zones, including assistance in activities of resident companies and resident institutes;
2. The following business activities to facilitate research and development projects in special zones and commercialize the outcomes therefrom:
(a) Assistance in implementing projects for special zone promotion projects;
(b) Enhancing exchange among universities, research institutes, and companies;
(c) Assistance in managing intellectual property rights;
(d) Assistance to professors, researchers, etc. in starting up a new business;
(e) Assistance in commercialization projects;
(f) Training and education of human resources specializing in research and development and human resources supporting commercialization;
(g) Providing services for assisting companies, etc. in business management;
(h) Participating in an investment association specified in Article 17;
3. The following business activities for inviting investment in special zones:
(a) Inviting investment from domestic and foreign investors and marketing and public relations for such activities;
(b) Comprehensive assistance to domestic and foreign investors, including consulting and information services and public relations, surveys on domestic and foreign investors, and agency services for processing civil petitions;
(c) Other business activities necessary for assisting Koreans and foreigners in investment;
4. For-profit business activities determined by the Minister of Science and ICT;
5. Other business affairs entrusted by the Minister of Science and ICT, the head of a related central administrative agency, or the head of a local government.
(2) The Promotion Foundation shall establish a supporting organization for each special zone in order to assist each special zone in specialized and differentiated development and to efficiently implement each special zone promotion project.
[This Article Wholly Amended on Jan. 26, 2012]
 Article 48-2 (Assistance in Establishment and Operation of Workplace Child Care Facilities)
The Promotion Foundation shall assist resident institutes in special zones in establishing and operating workplace child care facilities referred to in subparagraph 4 of Article 10 of the Infant Care Act.
[This Article Newly Inserted on Jan. 26, 2012]
 Article 49 (Executive Officers)
(1) The Promotion Foundation shall have no more than 15 directors, including one President, and one auditor.
(2) The President shall be appointed or dismissed by the Minister of Science and ICT, after prior resolution at the board of directors. <Amended on Mar. 23, 2013; Jul. 26, 2017>
(3) Directors and the auditor shall be appointed at the board of directors, as stipulated by articles of association, and subject to approval from the Minister of Science and ICT. <Amended on Mar. 23, 2013; Jul. 26, 2017>
(4) The term of office of the President and directors shall be three years and may be renewed consecutively.
(5) The term of office of the auditor shall be two years and may be renewed for only one further term.
(6) If the office of an executive officer becomes vacant, a new executive officer shall be appointed or elected to fill the vacancy, and the term of office of such executive officer shall begin on the date of appointment or election. <Amended on Jun. 9, 2020>
[This Article Wholly Amended on Jan. 26, 2012]
 Article 50 (Duties of Executive Officers)
(1) The President shall represent the Promotion Foundation and supervise all business affairs of the Promotion Foundation.
(2) If the President is unable to perform his/her duties due to extenuating circumstances, the person specified by articles of association shall act on behalf of the President.
(3) The auditor shall audit the business affairs and accounting of the Promotion Foundation.
[This Article Wholly Amended on Jan. 26, 2012]
 Article 51 (Appointment of Agents)
The President may appoint an employee as an agent duly authorized to do all judicial or extrajudicial acts with respect to business affairs of the Promotion Foundation, as stipulated by articles of association.
[This Article Wholly Amended on Jan. 26, 2012]
 Article 52 (Restrictions on Power of Representation)
The President shall not represent the Promotion Foundation, but the auditor shall represent the Promotion Foundation instead with regard to any matter in which the Promotion Foundation's interest conflicts with the President's interest.
[This Article Wholly Amended on Jan. 26, 2012]
 Article 53 (Grounds for Disqualification as Executive Officers)
None of the following persons shall be qualified for an executive officer of the Promotion Foundation: <Amended on May 28, 2014; Jun. 9, 2020>
1. A minor;
2. A person declared bankrupt but not yet reinstated;
3. A person for whom two years have not passed since a sentence of imprisonment without prison labor or any heavier punishment imposed upon him/her was completely executed (or deemed completely executed) or discharged;
4. A person under suspended execution of a sentence of imprisonment without prison labor or any heavier punishment imposed upon him/her;
5. A person whose qualification is suspended or forfeited under an Act or by a court ruling.
[This Article Wholly Amended on Jan. 26, 2012]
 Article 54 (Board of Directors)
(1) The Promotion Foundation shall have the board of directors to pass resolutions on important matters of the Promotion Foundation.
(2) The board of directors shall be comprised of the President and directors.
(3) The President shall call meetings of the board of directors and preside over the meetings.
(4) The board of directors shall pass a resolution with a majority of all incumbent directors present and with the affirmative vote of a majority of those present at the meeting.
(5) The auditor may attend a meeting of the board of directors and present his/her opinions.
[This Article Wholly Amended on Jan. 26, 2012]
 Article 55 (Appointment or Dismissal of Employees)
Employees of the Promotion Foundation shall be appointed or dismissed by the President, as stipulated by articles of association.
[This Article Wholly Amended on Jan. 26, 2012]
 Article 56 (Prohibition of Divulgence of Confidential Information)
No member of the Committee who is not a public official or any of the following persons shall divulge or illegally use any confidential information he/she has become aware of in the course of performing his/her duties: <Amended on Dec. 24, 2018; Jun. 9, 2020>
1. A current or former executive officer or employee of the Promotion Foundation;
2. A person who is or was a member of the Committee;
3. A current or former executive officer or employee of a testing and inspection agency under Article 16-2 (8).
[This Article Wholly Amended on Jan. 26, 2012]
 Article 57 (Requests for Dispatching of Public Officials)
If the Promotion Foundation deems it necessary for conducting its business affairs, it may request a related administrative agency, corporation, or organization to dispatch a public official under Article 2 of the State Public Officials Act and Article 2 of the Local Public Officials Act or executive officer or employee of the corporation or organization, as prescribed by Presidential Decree.
[This Article Wholly Amended on Jan. 26, 2012]
 Article 58 (Funding)
The Promotion Foundation shall procure funds necessary for performing its business activities under Article 48 from the following financial sources:
1. Contributions or subsidies from the Government or any person other than the Government;
2. Funds raised by issuing bonds;
3. Loans (including funds or commodities borrowed or imported from foreign countries; the same shall apply hereinafter);
4. Profits from for-profit business activities;
5. Other revenues.
[This Article Wholly Amended on Jan. 26, 2012]
 Article 58-2 (Contributions and Subsidies)
The State and local governments may provide contributions or subsidies for expenses incurred in establishing and operating the facilities of the Promotion Foundation and the cost required for the business activities of the Promotion Foundation under Article 48, within budgetary limits.
[This Article Wholly Amended on Jan. 26, 2012]
 Article 59 (Lease of State Property)
(1) If deemed necessary for efficiently performing business activities of the Promotion Foundation under Article 48, the State may lease State property (including industrial property rights: the same shall apply hereinafter) gratuitously to the Promotion Foundation or may permit the Promotion Foundation to use or benefit from State property.
(2) The Promotion Foundation may construct a building or any other permanent structure on the State property lent or permitted to use pursuant to paragraph (1).
(3) Details, terms and conditions of, and procedure for gratuitous lease, use or benefitting from State property under paragraph (1) shall be stipulated by an agreement entered into between the head of the central government agency responsible for the management of the property or commodities and the Promotion Foundation.
(4) If the Promotion Foundation requests the State or a local government to provide a loan for the purchase of the land to be leased to research-based spin-off companies or advanced technology enterprises or to grant a subsidy for other funds necessary for special zone promotion projects, the State or local government may provide such loan or subsidy.
[This Article Wholly Amended on Jan. 26, 2012]
 Article 60 (Approval of Budget Bills)
The Promotion Foundation shall formulate a business plan and a budget bill for the following year and obtain approval thereof from the Minister of Science and ICT before the beginning of each business year. The foregoing shall also apply where it intends to revise a business plan or a budget bill. <Amended on Mar. 23, 2013; Jul. 26, 2017>
[This Article Wholly Amended on Jan. 26, 2012]
 Article 61 (Reports on Settlement of Accounts)
The Promotion Foundation shall submit a report on the settlement of revenues and expenditures of each business year to the Minister of Science and ICT, along with a statement of business performance for the relevant year, by no later than the end of February of the following year. <Amended on Mar. 23, 2013; Jul. 26, 2017>
[This Article Wholly Amended on Jan. 26, 2012]
 Article 62 (Business Year)
Each business year of the Promotion Foundation shall coincide with each fiscal year of the Government.
[This Article Wholly Amended on Jan. 26, 2012]
 Article 63 (Accounting Regulations)
The Promotion Foundation shall establish regulations on its organization, budgeting, etc. and shall obtain approval thereof from the Minister of Science and ICT. The foregoing shall also apply where the Promotion Foundation intends to amend such regulations. <Amended on Mar. 23, 2013; Jul. 26, 2017>
[This Article Wholly Amended on Jan. 26, 2012]
 Article 64 (Borrowing of Funds)
(1) If the Promotion Foundation deems it necessary for performing its business activities under Article 48, it may borrow funds (including funds or commodities borrowed or imported from foreign countries; the same shall apply hereinafter) with approval therefor from the Minister of Science and ICT. <Amended on Mar. 23, 2013; Jul. 26, 2017>
(2) When the Minister of Science and ICT intends to approve the borrowing of funds pursuant to paragraph (1), he/she shall first consult with the heads of related central administrative agencies. <Amended on Mar. 23, 2013; Jul. 26, 2017>
[This Article Wholly Amended on Jan. 26, 2012]
 Article 65 (Investment in Projects)
If the Promotion Foundation deems it necessary for efficiently performing its business activities under Article 48, it may invest in or contribute to related projects, as prescribed by Presidential Decree.
[This Article Wholly Amended on Jan. 26, 2012]
 Article 66 (Issuance of Bonds)
(1) The Promotion Foundation may issue bonds to raise funds necessary for its business activities under Article 48.
(2) When the Promotion Foundation intends to issue bonds pursuant to paragraph (1), it shall obtain approval from the Minister of Science and ICT. In such cases, the Minister of Science and ICT shall first consult with the heads of related central administrative agencies thereon. <Amended on Mar. 23, 2013; Jul. 26, 2017>
(3) The Government may guarantee the payment of principal of, and interest on, the bonds issued by the Promotion Foundation.
(4) The Government may partially subsidize the Promotion Foundation for expenses incurred in paying interest on the bonds issued by the Promotion Foundation.
(5) The periods of extinctive prescription of bonds shall be five years for principal and two years for interest from the due date of payment, respectively.
(6) Except as otherwise provided for in paragraphs (1) through (5), matters necessary for the issuance of bonds and other matters shall be prescribed by Presidential Decree.
[This Article Wholly Amended on Jan. 26, 2012]
 Article 67 (Instruction and Supervision)
(1) The Minister of Science and ICT shall instruct and supervise the Promotion Foundation and may require the Promotion Foundation to report on its business affairs, accounting, and property, or may authorize public officials of the Ministry to inspect accounting books, documents, facilities, and other things. <Amended on Mar. 23, 2013; Jul. 26, 2017>
(2) If a violation of any statute or regulation or an offense is discovered as a result of a report filed or an inspection conducted pursuant to paragraph (1), the Minister of Science and ICT may order the Promotion Foundation to rectify such violation or offense. <Amended on Mar. 23, 2013; Jul. 26, 2017>
(3) A person who conducts an inspection pursuant to paragraph (1) shall carry a certificate of identification indicating his/her authority and produce it to related persons.
[This Article Wholly Amended on Jan. 26, 2012]
 Article 68 (Ownership of Residual Property)
The Act on the Establishment and Operation of Public-Service Corporations shall apply mutatis mutandis to the disposal of residual property when the Promotion Foundation is dissolved.
[This Article Wholly Amended on Jan. 26, 2012]
 Article 69 (Application Mutatis Mutandis of the Civil Act)
Except as otherwise provided for in this Act, the provisions regarding incorporated foundations in the Civil Act shall apply mutatis mutandis to the organization and operation of the Promotion Foundation and other matters.
[This Article Wholly Amended on Jan. 26, 2012]
CHAPTER IX SUPPLEMENTARY RULES
 Article 70 (Non-Performance Penalties)
(1) If a person fails to comply with a transfer order within a specified period without a justifiable ground upon receipt of the transfer order issued under Article 41 (1), the Minister of Science and ICT shall determine a deadline for compliance not exceeding six months, and shall impose an amount equivalent to 20 percentage of the value of the property to be transferred as a non-performance penalty on such person, if the person fails to comply with the transfer order by the deadline. <Amended on Mar. 23, 2013; Jul. 26, 2017>
(2) The Minister of Science and ICT shall give written notice of his/her intention to impose and collect a non-performance penalty under paragraph (1) before imposing the non-performance penalty under paragraph (1). <Amended on Mar. 23, 2013; Jul. 26, 2017>
(3) When the Minister of Science and ICT imposes a non-performance penalty under paragraph (1), he/she shall do so in writing stating the amount of the non-performance penalty, the ground for imposing the non-performance penalty, the payment deadline of the non-performance penalty, the receiving agencies, the method of filing an objection, the agency with which an objection shall be filed, etc. <Amended on Mar. 23, 2013; Jul. 26, 2017>
(4) The Minister of Science and ICT may impose and collect non-performance penalties under paragraph (1) repeatedly once each every year from the day the transfer order is issued under Article 41 (1) until the person concerned complies with the transfer order. <Amended on Mar. 23, 2013; Jul. 26, 2017>
(5) When a person to whom a transfer order was issued complies with the transfer order, the Minister of Science and ICT shall discontinue the imposition of non-performance penalties, but shall collect non-performance penalties already imposed. <Amended on Mar. 23, 2013; Jul. 26, 2017>
(6) If a person upon whom a non-performance penalty was imposed under paragraph (3) fails to pay it by the payment deadline, the Minister of Science and ICT shall collect it in the same manner as delinquent national taxes are collected. <Amended on Mar. 23, 2013; Jul. 26, 2017>
[This Article Wholly Amended on Jan. 26, 2012]
 Article 71 (Reporting to National Assembly)
The Minister of Science and ICT shall prepare a report on the current status of the promotion of special zones, following consultation with Mayors/Do Governors thereon, and shall submit it to the National Assembly before the opening of the annual session of the National Assembly each year. <Amended on Mar. 23, 2013; Jul. 26, 2017>
[This Article Wholly Amended on Jan. 26, 2012]
 Article 72 (Delegation or Entrustment of Administrative Authority)
(1) The Minister of Science and ICT may partially delegate his/her authority vested under this Act to Mayors/Do Governors, as prescribed by Presidential Decree. <Amended on Mar. 23, 2013; Jul. 26, 2017>
(2) The Minister of Science and ICT or a Mayor/Do Governor may partially entrust business affairs regarding special zones under this Act to the Promotion Foundation, as prescribed by Presidential Decree. <Amended on Mar. 23, 2013; Jul. 26, 2017>
[This Article Wholly Amended on Jan. 26, 2012]
 Article 73 (Legal Fiction as Public Officials in Application of Penalty Provisions)
Members who are not public officials among the members of the Committee, executive officers of the Promotion Foundation, and the employees prescribed by Presidential Decree shall be deemed public officials in application of Articles 129 through 132 of the Criminal Act. <Amended on Dec. 24, 2018; Jun. 9, 2020>
1. Executive officers of the Promotion Foundation;
2. Employees of the Promotion Foundation who conduct business affairs entrusted pursuant to Article 72 (2);
3. Members of the Committee;
4. Executive officers or employees of a testing and inspection agency under Article 16-2 (8).
[This Article Wholly Amended on Jan. 26, 2012]
CHAPTER X PENALTY PROVISIONS.
 Article 74 (Penalty Provisions)
(1) Any person who moves into an area without entering into a contract to move into the area or revises any matter specified in a contract to move into an area without a revised contract to move into the area in violation of Article 37 (including where a person shall enter into a contract to move into an area under Articles 38 (2) and 39) shall be punished by imprisonment with labor for not more than three years or by a fine not exceeding 30 million won.
(2) Any of the following persons shall be punished by imprisonment with labor for not more than two years or by a fine not exceeding 20 million won:
1. A person who is granted special treatment for demonstration under Article 16-2 (3) by fraudulent or other illegal means;
2. A person who divulges or illegally uses any confidential information he/she has become aware of in the course of performing his/her duties, in violation of Article 56.
[This Article Wholly Amended on Dec. 22, 2020]
 Article 75 (Joint Penalty Provisions)
If the representative of a corporation or an agent, employee or other servant of the corporation or an individual commits an offense specified in Article 74 (1) in connection with the business duties of the corporation or the individual, not only shall such offender be punished, but also the corporation or individual shall be punished by a fine specified in the relevant provisions: Provided, That this 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. <Amended on Jun. 9, 2020; Dec. 22, 2020>
[This Article Wholly Amended on Dec. 26, 2008]
 Article 76 (Administrative Fines)
(1) Any of the following persons shall be subject to an administrative fine not exceeding 20 million won: <Amended on Dec. 22, 2020>
1. A person who transfers a building or other facility without filing a report thereon, in violation of Article 38 (1);
2. A resident institute that continues its business operations, in violation of Article 40 (2).
(2) Any of the following persons shall be subject to an administrative fine not exceeding 10 million won: <Newly Inserted on Jun. 9, 2020>
1. A person who fails to comply with the conditions under the latter part of Article 16-2 (3);
2. A person who fails to submit the results of the application of special treatment for demonstration to the Minister of Science and ICT and the heads of related agencies, in violation of Article 16-3 (3);
3. A person who fails to purchase liability insurance, in violation of Article 16-3 (7) (excluding where a separate compensation plan is prepared in accordance with the proviso of Article 16-3 (7));
4. A person who fails to comply with any order issued under Article 16-5 (2);
5. A person who uses or provides the relevant new technologies even after the granting of special treatment for demonstration is revoked, in violation of Article 16-5 (4).
(3) The administrative fines imposed under paragraphs (1) and (2) shall be imposed and collected by the Minister of Science and ICT, as prescribed by Presidential Decree. <Amended on Mar. 23, 2013; Feb. 3, 2015; Jul. 26, 2017; Jun. 9, 2020>
[This Article Wholly Amended on Jan. 26, 2012]
ADDENDA <Act No. 7363, Jan. 27, 2005>
Article 1 (Enforcement Date)
This Act shall enter into force six months after the date of its promulgation.
Article 2 (Repealed Statutes)
The Daedeok Science Town Management Act shall be repealed.
Article 3 (Preparing Establishment of Headquarters for Supporting Daedeok Special Research and Development Zone)
(1) The Minister of Science and Technology shall establish the Establishment Committee of Headquarters for Supporting Daedeok Special Research and Development Zone (hereinafter referred to as the "Establishment Committee"), so as to be able to deal with affairs related to the establishment of the headquarters for supporting Daedeok special research and development zone, within three months after the date of the promulgation of this Act.
(2) The Establishment Committee shall be comprised of not more than seven incorporators appointed by the Minister of Science and Technology.
(3) The Establishment Committee shall draw up the articles of incorporation of the headquarters for supporting Daedeok special research and development zone and receive authorization from the Minister of Science and Technology.
(4) The director general of the headquarters for supporting Daedeok special research and development zone as at the time of its establishment shall be appointed by the Minister of Science and Technology.
(5) When the Establishment Committee receives authorization under paragraph (3), it shall register the establishment of the headquarters for supporting Daedeok special research and development zone within two weeks and transfer business to the director general.
(6) Any institution which performs duties under the jurisdiction of the headquarters for supporting Daedeok special research and development zone under this Act in the Daedeok special research and development zone as at the time this Act enters into force shall perform such duties until the headquarters for supporting Daedeok special research and development zone are established.
Article 4 (Transitional Measures concerning Previous Daedeok Science Town Management Plans)
Science town management plans under Article 4 of the previous Daedeok Science Town Management Act as at the time this Act enters into force, shall have effects until Daedeok special research and development zone management plans under Article 34 of this Act take effect.
Article 5 (Transitional Measures concerning Disposition)
Approval for moving-in, revocation thereof, approval for the transfer of sites, a transfer order, the imposition of charges for compelling compliance under the previous Daedeok Science Town Management Act as at the time this Act enters into force shall be deemed activities under this Act.
Article 6 (Transitional Measures concerning Penalty Provisions and Administrative Fines)
Penalty provisions and administrative fines against acts committed before this Act enters into force shall be governed by the previous Daedeok Science Town Management Act.
Article 7 (Relationship to Other Statues or Regulations)
A citation of the provision of the Daedeok Science Town Management Act by any other statute or regulation in force as at the time this Act enters into force shall be deemed to be a citation of this Act or the corresponding provision hereof in lieu of the previous provision, if such a corresponding provision exists herein.
ADDENDA <Act No. 7604, Jul. 21, 2005>
Article 1 (Enforcement Date)
This Act shall enter into force six months after the date of its promulgation. (Proviso Omitted.)
Articles 2 through 7 Omitted.
ADDENDA <Act No. 7678, Aug. 4, 2005>
Article 1 (Enforcement Date)
This Act shall enter into force one year after the date of its promulgation
Articles 2 through 12 Omitted.
ADDENDA <Act No. 7837, Dec. 31, 2005>
Article 1 (Enforcement Date)
This Act shall enter into force on January 1, 2006 (Proviso Omitted).
Articles 2 through 22 Omitted.
ADDENDA <Act No. 7995, Sep. 27, 2006>
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. 8108, Dec. 28, 2006>
Article 1 (Enforcement Date)
This Act shall enter into force six months after the date of its promulgation.
Articles 2 through 4 Omitted.
ADDENDA <Act No. 8337, Apr. 6, 2007>
Article 1 (Enforcement Date)
This Act shall enter into force six months after the date of its promulgation.
Articles 2 through 9 Omitted.
ADDENDA <Act No. 8343, Apr. 11, 2007>
Article 1 (Enforcement Date)
This Act shall enter into force on the date of its promulgation. (Proviso Omitted.)
Articles 2 through 12 Omitted.
ADDENDA <Act No. 8351, Apr. 11, 2007>
Article 1 (Enforcement Date)
This Act shall enter into force on the date of its promulgation. (Proviso Omitted.)
Articles 2 through 15 Omitted.
ADDENDA <Act No. 8352, Apr. 11, 2007>
Article 1 (Enforcement Date)
This Act shall enter into force on the date of its promulgation. (Proviso Omitted.)
Articles 2 through 16 Omitted.
ADDENDA <Act No. 8361, Apr. 11, 2007>
Article 1 (Enforcement Date)
This Act shall enter into force on the date of its promulgation. (Proviso Omitted.)
Articles 2 through 10 Omitted.
ADDENDA <Act No. 8370, Apr. 11, 2007>
Article 1 (Enforcement Date)
This Act shall enter into force on the date of its promulgation. (Proviso Omitted.)
Articles 2 through 20 Omitted.
ADDENDA <Act No. 8371, Apr. 11, 2007>
Article 1 (Enforcement Date)
This Act shall enter into force on the date of its promulgation. (Proviso Omitted.)
Articles 2 through 10 Omitted.
ADDENDA <Act No. 8616, Aug. 3, 2007>
Article 1 (Enforcement Date)
This Act shall enter into force six months after the date of its promulgation.
Articles 2 through 12 Omitted.
ADDENDA <Act No. 8800, Dec. 27, 2007>
Article 1 (Enforcement Date)
This Act shall enter into force eight months after the date of its promulgation.
Articles 2 through 4 Omitted.
ADDENDA <Act No. 8819, Dec. 27, 2007>
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. 8820, Dec. 27, 2007>
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. 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. 8976, Mar. 21, 2008>
Article 1 (Enforcement Date)
This Act shall enter into force on the date of its promulgation. (Proviso Omitted.)
Articles 2 through 10 Omitted.
ADDENDA <Act No. 9037, Mar. 28, 2008>
Article 1 (Enforcement Date)
This Act shall enter into force on January 1, 2009.
Articles 2 through 19 Omitted.
ADDENDA <Act No. 9045, Mar. 28, 2008>
Article 1 (Enforcement Date)
This Act shall enter into force three months after the date of its promulgation.
Articles 2 through 8 Omitted.
ADDENDUM <Act No. 9220, Dec. 26, 2008>
This Act shall enter into force on the date of its promulgation.
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. 9497, Mar. 18, 2009>
This Act shall enter into force on the date of its promulgation.
ADDENDA <Act No. 9629, Apr. 22, 2009>
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. 9685, May 21, 2009>
Article 1 (Enforcement Date)
This Act shall enter into force six months after the date of its promulgation. (Proviso Omitted.)
Articles 2 through 8 Omitted.
ADDENDA <Act No. 9758, Jun. 9, 2009>
Article 1 (Enforcement Date)
This Act shall enter into force six months after the date of its promulgation. (Proviso Omitted.)
Articles 2 through 23 Omitted.
ADDENDA <Act No. 9763, Jun. 9, 2009>
Article 1 (Enforcement Date)
This Act shall enter into force nine months after the date of its promulgation. (Proviso Omitted.)
Articles 2 through 8 Omitted.
ADDENDA <Act No. 9859, Dec. 29, 2009>
(1) (Enforcement Date) This Act shall enter into force three months after the date of its promulgation.
(2) through (3) Omitted.
ADDENDA <Act No. 9881, Dec. 30, 2009>
Article 1 (Enforcement Date)
This Act shall enter into force three months after the date of its promulgation.
Article 2 (Transitional Measures)
(1) Advanced technology enterprises designated under the previous provisions as at the time this Act enters into force, shall be deemed advanced technology enterprises designated under the amended provisions of Article 9.
(2) Companies related to research institutes established with approval under the previous provisions as at the time this Act enters into force shall be deemed companies related to research institutes registered under the amended provisions of Article 9-3.
ADDENDA <Act No. 10252, Apr. 12, 2010>
Article 1 (Enforcement Date)
This Act shall enter into force three months after the date of its promulgation. (Proviso Omitted.)
Articles 2 through 6 Omitted.
ADDENDA <Act No. 10272, Apr. 15, 2010>
Article 1 (Enforcement Date)
This Act shall enter into force six months after the date of its promulgation.
Articles 2 through 14 Omitted.
ADDENDA <Act No. 10331, May 31, 2010>
Article 1 (Enforcement Date)
This Act shall enter into force six months after the date of its promulgation. (Proviso Omitted.)
Articles 2 through 13 Omitted.
ADDENDA <Act No. 10599, Apr. 14, 2011>
Article 1 (Enforcement Date)
This Act shall enter into force one year after the date of its promulgation. (Proviso Omitted.)
Articles 2 through 9 Omitted.
ADDENDA <Act No. 10629, May 19, 2011>
Article 1 (Enforcement Date)
This Act shall enter into force two months after the date of its promulgation. (Proviso Omitted.)
Article 2 Omitted.
ADDENDA <Act No. 10764, May 30, 2011>
Article 1 (Enforcement Date)
This Act shall enter into force on the date of its promulgation. (Proviso Omitted.)
Articles 2 through 4 Omitted.
ADDENDA <Act No. 11232, Jan. 26, 2012>
Article 1 (Enforcement Date)
This Act shall enter into force six months after the date of its promulgation.
Article 2 (Applicability to Deliberation by Industrial Location Policy Deliberation Committee on Special Zone Development Plans)
The amended provisions of Article 6-2 (3) shall begin to apply to the first special zone development plan formulated or revised after this Act enters into force.
Article 3 (Applicability to Consultation on Development of Areas with No Special Zone Development Plan Formulated)
The amended provisions of Article 6-3 shall begin to apply to the first permission, authorization, etc. granted (including modification to permission, authorization, etc.) after this Act enters into force.
Article 4 (Applicability to Legal Fiction of Permission)
The amended provisions of Article 29 shall begin to apply to the first implementation plan, or revision to an implementation plan, approved after this Act enters into force.
Article 5 (Applicability to Commencement of Special Zone Development Projects)
The amended provisions of Article 30 shall also apply to a special zone development project, the implementation plan of which was approved under previous Article 27 (1) before this Act enters into force.
Article 6 (Applicability to Re-Investment of Development Gains)
The amended provisions of Article 32-2 shall begin to apply to the first special zone development plan formulated after this Act enters into force.
Article 7 (Transitional Measure concerning Designation of Special Zones)
The Daedeok Special Development Zone under previous Article 4 (1) and the special zones designated under previous Article 4 (2) as at the time this Act enters into force shall be deemed special zones designated under the amended provisions of Article 4 (1) or (5).
Article 8 (Transitional Measure concerning Priority Support for Infrastructure)
Notwithstanding the amended provisions of the proviso of Article 33, the industrial complexes given priority support pursuant to the previous provisions as at the time this Act enters into force shall be governed by the previous provisions.
Article 9 (Transitional Measure concerning Special Provisions regarding Industrial Complexes)
Notwithstanding the amended provisions of Article 43 (1), the special zones deemed national industrial complexes under the previous provisions as at the time this Act enters into force shall be governed by the previous provisions.
Article 10 (Transitional Measure concerning Change of Name)
(1) The Support Headquarters existing as at the time this Act enters into force shall be deemed the Promotion Foundation established under this Act.
(2) In the context of acts done and other legal relationships made in the name of the Support Headquarters as at the time this Act enters into force, the Support Headquarters shall be deemed the Promotion Foundation.
(3) The title of the Support Headquarters recorded in registers and other official records as at the time this Act enters into force shall be deemed the title of the Promotion Foundation.
Article 11 Omitted.
Article 12 (Relationship to Other Statutes or Regulations)
A citation of the previous Special Act on the Support of Daedeok Special Research and Development Zone, etc. or any provisions thereof in other statutes or regulations in force as at the time this Act enters into force shall be deemed a citation of this Act or the corresponding provisions of this Act in lieu of the previous provisions, if such corresponding provisions exist herein.
ADDENDA <Act No. 11690, Mar. 23, 2013>
Article 1 (Enforcement Date)
(1) This Act shall enter into force on the date of its promulgation.
(2) Omitted.
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. 12215, Jan. 7, 2014>
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. 12248, Jan. 14, 2014>
Article 1 (Enforcement Date)
This Act shall enter into force six months after the date of its promulgation.
Articles 2 through 25 Omitted.
ADDENDA <Act No. 12678, May 28, 2014>
Article 1 (Enforcement Date)
This Act shall enter into force six months after the date of its promulgation. (Proviso Omitted.)
Article 2 (Transitional Measure concerning Disqualifications of Persons Declared Incompetent)
Notwithstanding the amended provisions of subparagraph 1 of Article 53, the previous provisions shall apply to the persons who were declared incompetent or quasi-incompetent before the amended provisions enter into force and upon whom the declaration of incompetence or quasi-incompetence remains effective under Article 2 of the Addenda to the Civil Act (Act No. 10429).
ADDENDA <Act No. 13122, Feb. 3, 2015>
Article 1 (Enforcement Date)
This Act shall enter into force six months after the date of its promulgation.
Article 2 (Transitional Measure concerning Administrative Fines)
For the purpose of imposing administrative fines against any act committed before this Act enters into force, the previous provisions shall apply.
ADDENDUM <Act No. 13212, Mar. 11, 2015>
This Act shall enter into force six months after the date of its promulgation.
ADDENDA <Act No. 13231, 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 Preferential Application of Special Zone Management Plans)
The amended provisions of Article 3 (2) shall also apply to the plans formulated pursuant to any other statute before this Act enters into force.
ADDENDA <Act No. 13482, Aug. 11, 2015>
Article 1 (Enforcement Date)
This Act shall enter into force on the date of its promulgation. (Proviso Omitted.)
Articles 2 through 4 Omitted.
ADDENDA <Act No. 13782, Jan. 19, 2016>
Article 1 (Enforcement Date)
This Act shall enter into force on September 1, 2016.
Articles 2 through 8 Omitted.
ADDENDA <Act No. 13797, Jan. 19, 2016>
Article 1 (Enforcement Date)
This Act shall enter into force one month after the date of its promulgation.
Articles 2 through 11 Omitted.
ADDENDA <Act No. 13805, Jan. 19, 2016>
Article 1 (Enforcement Date)
This Act shall enter into force on August 12, 2016.
Articles 2 through 22 Omitted.
ADDENDA <Act No. 14183, May 29, 2016>
Article 1 (Enforcement Date)
This Act shall enter into force six months after the date of its promulgation. (Proviso Omitted.)
Articles 2 through 5 Omitted.
ADDENDA <Act No. 14480, Dec. 27, 2016>
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. 14569, Feb. 8, 2017>
Article 1 (Enforcement Date)
This Act shall enter into force one year after the date of its promulgation.
Articles 2 through 9 Omitted.
ADDENDA <Act No. 14839, Jul. 26, 2017>
Article 1 (Enforcement Date)
(1) This Act shall enter into force on the date of its promulgation: Provided, That the amendments to the statutes to be amended pursuant to Article 5 of the Addenda, which were promulgated before this Act enters into force but the enforcement dates of which have yet to arrive, shall enter into force on the enforcement date of the relevant statute.
Articles 2 through 6 Omitted.
ADDENDA <Act No. 15309, Dec. 26, 2017>
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.
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. 15562, Apr. 17, 2018>
Article 1 (Enforcement Date)
This Act shall enter into force six months after the date of its promulgation.
Article 2 (Applicability to Distribution of Profits)
The amended provisions of Article 9-3 shall begin to apply from the first profits, etc. that occur after this Act enters into force.
Article 3 (Special Cases concerning Legal Fiction as Cancellation of Designation of Special Zones)
For the purposes of the amended provisions of Article 5-2 (1) 1, "date public notice is given" shall be construed as "date this Act enters into force", for a special zone already designated as at the time this Act enters into force.
ADDENDUM <Act No. 16017, Dec. 24, 2018>
This Act shall enter into force three months after 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. 17171, Mar. 31, 2020>
Article 1 (Enforcement Date)
This Act shall enter into force one year after the date of its promulgation. (Proviso Omitted.)
Articles 2 through 7 Omitted.
ADDENDA <Act No. 17219, Apr. 7, 2020>
Article 1 (Enforcement Date)
This Act shall enter into force three months after the date of its promulgation.
Articles 2 and 3 Omitted.
ADDENDUM <Act No. 17347, Jun. 9, 2020>
This Act shall enter into force on the date of its promulgation.
ADDENDUM <Act No. 17349, Jun. 9, 2020>
This Act shall enter into force six months after the date of its promulgation: Provided, That the amended provisions of Article 5-2 shall enter into force on the date of its promulgation.
ADDENDUM <Act No. 17359, Jun. 9, 2020>
This Act shall enter into force on the date of its promulgation.
ADDENDA <Act No. 17598, Dec. 8, 2020>
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. 17675, Dec. 22, 2020>
Article 1 (Enforcement Date)
This Act shall enter into force six months after the date of its promulgation: Provided, That the amended provisions of Articles 17 and 48 (1) 2 (h) shall enter into force on the date of its promulgation.
Article 2 (Transitional Measures concerning Participation in Investment Associations)
Notwithstanding the amended provisions of Articles 17 and 48 (1) 2 (h), the previous provisions shall apply where the Promotion Foundation files an application for participation of a member of an investment association under the previous provisions before this Act enters into force.
Article 3 (Transitional Measures concerning Resident Institutes)
Any person who has obtained approval for moving into an area from the Minister of Science and ICT pursuant to the previous provisions as at the time this Act enters into force shall be deemed to have entered into a contract to move into the area with a management agency in accordance with the amended provisions of Article 37.