ACT ON DESIGNATION AND MANAGEMENT OF FREE TRADE ZONES
Wholly Amended by Act No. 7210, Mar. 22, 2004
Amended by Act No. 7335, Jan. 14, 2005
Act No. 7864, Mar. 3, 2006
Act No. 8085, Dec. 26, 2006
Act No. 8138, Dec. 30, 2006
Act No. 8356, Apr. 11, 2007
Act No. 8566, Jul. 27, 2007
Act No. 8616, Aug. 3, 2007
Act No. 8829, Dec. 31, 2007
Act No. 8852, Feb. 29, 2008
Act No. 9071, Mar. 28, 2008
Act No. 9243, Dec. 26, 2008
Act No. 9374, Jan. 30, 2009
Act No. 9401, Jan. 30, 2009
Act No. 9587, Apr. 1, 2009
Act No. 9780, jun. 9, 2009
Act No. 10590, Apr. 14, 2011
Act No. 10808, jun. 30, 2011
Act No. 11020, Aug. 4, 2011
Act No. 11029, Aug. 4, 2011
Act No. 11042, Sep. 15, 2011
Act No. 11458, jun. 1, 2012
Act No. 11690, Mar. 23, 2013
Act No. 12301, Jan. 21, 2014
Act No. 13782, Jan. 19, 2016
Act No. 13797, Jan. 19, 2016
Act No. 13856, Jan. 27, 2016
Act No. 14113, Mar. 29, 2016
Act No. 15575, Apr. 17, 2018
Act No. 17192, Apr. 7, 2020
Act No. 17219, Apr. 7, 2020
Act No. 17883, Jan. 5, 2021
CHAPTER I GENERAL PROVISIONS
The purpose of this Act is to accelerate the attraction of foreign investment, promotion of trade, facilitation of international logistics, regional development, etc. by designating and operating free trade zones in which free activities of manufacturing, logistics, distribution, trade, etc. are guaranteed in order to contribute to the development of the national economy.
The terms used in this Act are defined as follows: <Amended on Jan. 27, 2016>
| 1. | The term "free trade zone" means a zone designated under Article 4 in which free activities of manufacturing, logistics, distribution and trade are guaranteed with exemptions provided by relevant Acts, including the Customs Act and the Foreign Trade Act, and other assistance; |
| 2. | The term "occupant enterprise" means an enterprise which meets the occupancy requirements provided for in Article 10 (1) 1 through 5 and paragraph (2) of the same Article and which has entered into an occupancy contract under Article 11; |
| 3. | The term "assistant enterprise" means an enterprise which meets the occupancy requirements provided for in Article 10 (1) 6 and which has entered into an occupancy contract under Article 11; |
| 6. | The term "customs, etc." means customs, value-added tax, temporary import additional tax, liquor tax, individual consumption tax, traffic, energy and environment taxes, the special tax for agricultural and fishing communities or education tax; |
| 7. | The term "customs territory" means a domestic area other than a free trade zone; |
[This Article Wholly Amended on Apr. 14, 2011]
| Article 3 (Relationship to Other Statutes) |
| (1) | The Customs Act shall not apply to any free trade zone, except as otherwise provided for in this Act: Provided, That the same shall not apply to any free trade zone where the control facilities provided for in subparagraph 3 of Article 5 are not installed. |
| (2) | The following provisions shall not apply to foreign-invested enterprises among occupant enterprises: <Amended on Aug. 4, 2011; Sep. 15, 2011; Jan. 5, 2021> |
[This Article Wholly Amended on Apr. 14, 2011]
CHAPTER II DESIGNATION OF FREE TRADE ZONES
| Article 4 (Designation of Free Trade Zones) |
| (1) | The head of a central administrative agency, the Special Metropolitan City Mayor, a Metropolitan City Mayor, the Special Self-Governing City Mayor, or a Do Governor or the Governor of a Special Self-Governing Province (hereinafter referred to as a "Mayor/Do Governor") may request the Minister of Trade, Industry and Energy to designate free trade zones, following prior consultation with the heads of the relevant central administrative agencies or the relevant Mayor/Do Governor, as prescribed by Presidential Decree. In such cases, a Mayor/Do Governor may request any administrative authorities of free trade zones pursuant to the categories of subparagraphs of Article 8 (1) to consult with the heads of the relevant central administrative agencies or the relevant Mayors/Do Governors, on behalf of the Mayor/Do Governor, and the administrative authorities of free trade zones in receipt of such request shall comply with such request unless there is a compelling reason not to do so. <Amended on Mar. 23, 2013; Jan. 27, 2016> |
| (2) | When the head of a central administrative agency or a Mayor/Do Governor intends to request the designation of any free trade zone under paragraph (1), he or she shall formulate a master plan for such free trade zones that contains matters prescribed by Presidential Decree and submit such master plan to the Minister of Trade, Industry and Energy. <Amended on Mar. 23, 2013> |
| (3) | The Minister of Trade, Industry and Energy shall designate a free trade zone after examining the actual circumstances of the area requested to be designated as a free trade zone under paragraph (1), the necessity of such designation and designation requirements provided for in Article 5, and after undergoing consultation with the Minister of Strategy and Finance, the Minister of Land, Infrastructure and Transport, and the heads of other relevant central administrative agencies determined by Presidential Decree (hereinafter referred to as "heads of the relevant central administrative agencies" in this Article): Provided, That if the Minister intends to designate the whole or parts of a prospective free trade zone under Article 7 as a free trade zone, the designation of such free trade zone need not undergo consultation with the heads of the relevant central administrative agencies. <Amended on Mar. 23, 2013> |
| (4) | When the Minister of Trade, Industry and Energy has designated any free trade zone in accordance with paragraph (3), he or she shall publish the location, boundary and area of such free trade zone and other matters prescribed by Presidential Decree, and then notify the heads of the relevant central administrative agencies and the relevant Mayor/Do Governor of details of such publication. <Amended on Mar. 23, 2013> |
| (5) | Upon receiving the notification referred to in paragraph (4), the Mayor/Do Governor shall make the details of the notification available for public inspection for not less than 14 days. |
[This Article Wholly Amended on Apr. 14, 2011]
| Article 5 (Requirements for Designating Free Trade Zones) |
A free trade zone may be designated when an area meets all of the following requirements: <Amended on Aug. 4, 2011; Mar. 29, 2016>
| 1. | It shall fall under any of the following items and meet the standards prescribed by Presidential Decree, including cargo handling capacity, etc.: |
| 2. | Roads and other infrastructure are, or can be, fully secured; |
| 3. | Facilities prescribed by Presidential Decree as necessary to efficiently control the shipment of goods into or out of any free trade zone (hereinafter referred to as "control facilities") are already installed, or a plan for installing control facilities is finalized. |
[This Article Wholly Amended on Apr. 14, 2011]
| Article 6 (Changes in Free Trade Zones) |
| (1) | The head of the central administrative agency or the Mayor/Do Governor, who has requested designation of a free trade zone in accordance with Article 4 (1), may request the Minister of Trade, Industry and Energy to change the location, boundary or area of such free trade zone if necessary for operating such free trade zone. <Amended on Mar. 23, 2013> |
| (2) | If the Minister of Trade, Industry and Energy deems the grounds for designating a free trade zone have ceased to exist or receives a request from the head of the relevant central administrative agency or the relevant Mayor/Do Governor to revoke the designation thereof, he or she may revoke the designation of such free trade zone. <Amended on Mar. 23, 2013> |
| (3) | The main clause of Article 4 (3) and paragraphs (4) and (5) of the same Article shall apply mutatis mutandis to any change in a free trade zone or the revocation of its designation under paragraph (1) or (2): Provided, That the main clause of Article 4 (3) shall not apply mutatis mutandis to any change in insignificant matters prescribed by Presidential Decree, including a partial change in any area, etc. |
[This Article Wholly Amended on Apr. 14, 2011]
| Article 7 (Designation of Prospective Free Trade Zones) |
| (1) | Upon request from the head of a central administrative agency or a Mayor/Do Governor, the Minister of Trade, Industry and Energy may designate an area (including a prospective site) falling under any item of subparagraph 1 of Article 5 as a prospective free trade zone (hereinafter referred to as "prospective site"). <Amended on Mar. 23, 2013> |
| (2) | The head of the central administrative agency or the Mayor/Do Governor who has requested designation of a prospective site under paragraph (1) may, if necessary, request the Minister of Trade, Industry and Energy to change the location, boundary or area of such site. <Amended on Mar. 23, 2013> |
| (3) | The designation period of a prospective site shall not exceed three years: Provided, That if the Minister of Trade, Industry and Energy deems it inevitable to extend the designation period on the grounds of alteration to the development plan for the site, he or she may extend the designation period by up to three years. <Amended on Mar. 23, 2013> |
| (4) | The Minister of Trade, Industry and Energy shall determine whether to designate a prospective site as a free economic zone before the designation period of the site expires. <Amended on Mar. 23, 2013> |
| (5) | If the Minister of Trade, Industry and Energy determines not to designate a prospective site as a free trade zone under paragraph (4), he or she shall immediately revoke the designation of such site. <Amended on Mar. 23, 2013> |
| (6) | Article 4 shall apply mutatis mutandis to the designation, change or revocation of such designation of any prospective site: Provided, That the main clause of Article 4 (3) shall not apply mutatis mutandis to any change in a prospective site in respect of insignificant matters prescribed by Presidential Decree, including a partial change in any area. |
[This Article Wholly Amended on Apr. 14, 2011]
CHAPTER III ADMINISTRATION OF AND MOVING INTO FREE TRADE ZONES
| Article 8 (Administrative Authority) |
| (1) | The administrative authority of free trade zones by classification (hereinafter referred to as "administrative authority") shall be as follows: <Amended on Mar. 23, 2013> |
| 1. | Industrial complexes provided for in subparagraph 1 (a) of Article 5: The Minister of Trade, Industry and Energy; |
| 2. | Airports and hinterlands provided for in subparagraph 1 (b) of Article 5: The Minister of Land, Infrastructure and Transport; |
| 3. | Logistics terminals and complexes provided for in subparagraph 1 (c) of Article 5: The Minister of Land, Infrastructure and Transport; |
| 4. | Harbors and hinterlands provided for in subparagraph 1 (e) of Article 5: The Minister of Oceans and Fisheries. |
| (2) | The administrative authority shall perform each of the following duties regarding the administration of free trade zones: |
| 1. | Providing assistance in business activities for occupant and assistant enterprises; |
| 2. | Maintenance and management of public establishments; |
| 3. | Installation and operation of various support facilities; |
| 4. | Other affairs to administer or operate free trade zones. |
[This Article Wholly Amended on Apr. 14, 2011]
| Article 9 (Categorization of Free Trade Zones) |
The administrative authority may categorize free trade zones, by its function and characteristics, into a production facility district, a knowledge services facility district, a logistics facility district, a support facility district and other districts prescribed by Presidential Decree.
[This Article Wholly Amended on Apr. 14, 2011]
| Article 10 (Occupancy Requirements) |
| (1) | Any of the following persons is qualified to move into a free trade zone: <Amended on Apr. 17, 2018> |
| 1. | A person who intends to run a manufacturing business primarily for exports, meeting the criteria prescribed by Presidential Decree such as the ratio of exports; |
| 2. | A foreign-invested enterprise that intends to run a business falling under a manufacturing business or a knowledge services industry (excluding the business falling under subparagraphs 4 through 6), meeting the criteria prescribed by Presidential Decree such as foreign investment and the ratio of exports: Provided, That the criteria on the ratio of exports shall not apply to foreign-invested enterprises engaged in such types of business as prescribed by Presidential Decree in order to advance domestic industrial structure and strengthen global competitiveness; |
| 3. | A person who intends to run a business classified as belonging to a knowledge services industry (excluding the business falling under subparagraphs 4 through 6), meeting the criteria prescribed by Presidential Decree such as the ratio of exports; |
| 4. | A person who intends to run a wholesale business mainly for export and import transactions, meeting the criteria prescribed by Presidential Decree such as the ratio of import and export transactions; |
| 5. | A person who intends to run a business of loading and unloading, transporting, storing and exhibiting goods or other business prescribed by Presidential Decree; |
| 6. | A person who intends to run a type of business prescribed by Presidential Decree which supports the business of occupant enterprises; |
| 7. | Any public institution prescribed by Presidential Decree; |
| (2) | If deemed necessary to ensure the smooth operation of international logistics and the development of communities and promotion of export, etc. and determined as such by Ordinance of Ministry of Trade, Industry and Energy, the administrative authority may permit any person who intends to run a business falling under a manufacturing industry or a knowledge services industry, even if the person fails to meet the requirements referred to in paragraph (1) 1 or 3, to move into any free trade zone, after consulting with the Minister of Trade, Industry and Energy. <Amended on Mar. 23, 2013> |
[This Article Wholly Amended on Apr. 14, 2011]
| Article 11 (Occupancy Contracts) |
| (1) | Any person who intends to move into a free trade zone to run a business therein shall enter into an occupancy contract (hereinafter referred to as "occupancy contract") with the administrative authority. The same shall also apply to any modification of the contract. <Amended on Jan. 27, 2016> |
| (2) | In entering into an occupancy contract under paragraph (1), the administrative authority may give priority to entering into an occupancy contract with any of the following persons: <Amended on Jan. 27, 2016> |
| 1. | A foreign-invested enterprise; |
| 3. | A person who intends to run a business primarily for export. |
| (3) | In entering into an occupancy contract pursuant to paragraph (1), the administrative authority may attach conditions necessary for achieving the objectives of occupancy. The scope of conditions shall be limited to the minimum extent necessary for promoting the public interest, and such conditions shall not impose unjust duties. <Amended on Jan. 27, 2016> |
| (4) | Matters necessary for an occupancy contract referred to in paragraph (1) and any modification thereof shall be prescribed by Presidential Decree. <Amended on Jan. 27, 2016> |
[This Article Wholly Amended on Apr. 14, 2011]
[Title Amended on Jan. 27, 2016]
| Article 12 (Grounds for Disqualification) |
None of the following persons may enter into an occupancy contract provided for in Article 11 (1): <Amended on Jan. 21, 2014; Jan. 27, 2016> | 1. | A person under adult guardianship; |
| 2. | Deleted; <Jan. 27, 2016> |
| 3. | A person who has been sentenced to imprisonment with labor for violating this Act or the Customs Act and for whom two years have yet to pass from the date on which the execution of the sentence has concluded (including any case where the execution of the sentence is deemed terminated) or is exempted; |
| 4. | A person who is under the suspension of the execution after having been sentenced to imprisonment with labor for violating this Act or the Customs Act; |
| 6. | A person who has defaulted in customs or any domestic tax; |
| 7. | A corporation that employs any person falling under subparagraphs 1 and 3 through 6 as its executive officer (limited to a person in direct charge of managing the business of the relevant corporation in any free trade zones or of overseeing such business); |
| 8. | A person for whom two years have yet to pass from the date on which his or her occupancy contract was terminated in accordance with Article 15 (1) or (2). |
[This Article Wholly Amended on Apr. 14, 2011]
| Article 13 Deleted. <Jan. 27, 2016> |
| Article 14 (Reporting on Completion of Construction of Factories) |
| (1) | If a person who intends to move into any free trade zone has entered into an occupancy contract under Article 11 (1), the person shall be deemed to have obtained approval for newly constructing and expanding a factory or changing the type of business under Article 13 of the Industrial Cluster Development and Factory Establishment Act (hereafter referred to as "construction, etc. of factory" in this Article), and approval for newly constructing, expanding or relocating a factory or approval for changing the type of business under Article 20 of the same Act. <Amended on Jan. 27, 2016> |
| (2) | When applying Article 11 (2), 15 (1), 16 (1), (3), (4), (6) through (10), 17, 55 (2) 1, 3, 5, 6 and 55 (3) of the Industrial Cluster Development and Factory Establishment Act, such as reporting on completion of construction, etc. of factory, registration of a factory, proof of registration of a factory, revocation of registration of a factory, an administrative fine, etc. to occupant enterprises, "occupant enterprises" shall be construed as "occupant enterprise" under this Act, "contract for occupancy" as "occupancy contract", "management agency" and "the head of a Si/Gun/Gu" as "administrative authority," respectively. <Amended on Jan. 27, 2016> |
| (4) | Where a person who has entered into an occupancy contract under Article 11 installs facilities in accordance with the occupancy contract to run business other than a manufacturing business, he or she shall fulfill the conditions satisfying the standard ratio of building footprint area as prescribed in paragraph (3) and shall file a report in advance on commencement of his or her business with the administration authority, as prescribed by President Decree. The same shall also apply to a person who has entered into a modified contract. <Amended on Jan. 27, 2016> |
[This Article Wholly Amended on Apr. 14, 2011]
| Article 15 (Termination of Occupancy Contracts) |
| (1) | Where any occupant enterprise or assistant enterprise (hereinafter referred to as "occupant enterprise, etc.") has entered into an occupancy contract by improper means, the administrative authority shall terminate its occupancy contract. <Amended on Jan. 27, 2016> |
| (2) | If the occupant enterprise, etc. falls under any of the following subparagraphs, the administrative authority may terminate its occupancy contract: Provided, That this shall not apply in cases falling under subparagraphs 1 and 3 where the administrative authority orders remedial measures and the occupant enterprise, etc. takes the measures within the period determined by Ordinance of the Ministry of Trade, Industry and Energy: <Amended on Mar. 23, 2013; Jan. 27, 2016> |
| 1. | If it fails to meet occupancy requirements under Article 10; |
| 2. | If it runs a business other than the business for which it has entered into the occupancy contract under Article 11 (1); |
| 3. | If it fails to meet the conditions imposed when the occupancy contract is entered into under Article 11 (3); |
| 4. | If it falls under any of the grounds for disqualification provided for in Article 12 (excluding a case where any executive officer falling under any of subparagraph 1 and subparagraphs 3 through 6 of Article 12, among executive officers of any corporation, is replaced and appointed within three months); |
| 5. | Deleted; <Jan. 27, 2016> |
| 6. | If it discontinues its business. |
| (3) | Any person whose occupancy contract is terminated under paragraph (1) or (2) shall immediately suspend his or her business except the business conducted to execute export and import contracts and other remaining business prescribed by Ordinance of the Ministry of Trade, Industry and Energy. <Amended on Mar. 23, 2013; Jan. 27, 2016> |
| (4) | Any person whose occupancy contract is terminated under paragraph (1) or (2) shall, taking into account the kinds, quantities, etc. of foreign goods, goods provided for in Article 29 (1) 2 and 3, which is declared to have been shipped into the relevant free trade zone and other goods supplied from the customs territory to the relevant free trade zone under subparagraph 3 of Article 4 of the Act on Special Cases concerning the Refund of Customs, etc. Levied on Raw Materials for Export (hereinafter referred to as "foreign goods, etc."), ship the remaining foreign goods, etc. out of the free trade zone or transfer them to another occupant enterprise within the period set by the head of the customshouse having jurisdiction over the relevant free trade zone (hereinafter referred to as "head of the customshouse"). <Amended on Jan. 27, 2016> |
| (5) | Any person whose occupancy contract is terminated under paragraph (1) or (2) shall transfer land, factories, buildings, or other facilities (hereinafter referred to as “factories, etc.”) in the free trade zone to another occupant enterprise or any third party qualified to move into the free trade zone, as prescribed by Presidential Decree. <Amended on Jan. 27, 2016> |
| (6) | In any of the following cases, the relevant land, factories, etc. shall be disposed of pursuant to Article 25 (1), (2) and (5): <Amended on Jan. 27, 2016> |
| 1. | Where any land, factory, etc. not transferred pursuant to paragraph (5) is disposed of; |
| 2. | Where the occupancy contract is terminated prior to reporting on completion of construction, etc. of factory pursuant to Article 14 (2); |
| 3. | Where the occupancy contract is terminated prior to reporting on commencement of business prescribed in the former part of Article 14 (4). |
[This Article Wholly Amended on Apr. 14, 2011]
[Title Amended on Jan. 27, 2016]
| Article 16 (Notification of Occupancy Contracts) |
If the administrative authority entered into any occupancy contract (including any modified contract) in accordance with Article 11 (1) or terminated any occupancy contract in accordance with Article 15 (1) or (2), it shall notify the head of the customshouse thereof, as prescribed by Presidential Decree. <Amended on Jan. 27, 2016> [This Article Wholly Amended on Apr. 14, 2011]
[Title Amended on Jan. 27, 2016]
| Article 17 (Rental or Sale of State-Owned Land, Factories) |
| (1) | With respect to any State-owned land, factory, etc. in any free trade zone and in any prospective site, the administrative authority may have such State-owned land, factory, etc. transferred to the authority from the heads of the relevant central administrative agency or rent or sell such State-owned land, factory, etc. to an occupant enterprise, etc. after being designated by the Minister of Strategy and Finance to manage or dispose of such State-owned land, factory, etc., as prescribed by Presidential Decree. |
| (2) | Where the administrative authority rents or sells any land, factory, etc. to any occupant enterprise, etc. under paragraph (1), rents and sale prices thereof shall be determined by the administrative authority after publishing them following consultation with the Minister of Strategy and Finance, notwithstanding Articles 32 (1), 44 and 47 of the State Property Act. In such cases, the prices may be denominated in a foreign currency, if necessary. |
| (3) | Where the administrative authority rends any State-owned land, factory, etc. to any occupant enterprise under paragraph (1), it may set the rental period for up to 50 years, notwithstanding the provisions of Articles 35 (1) and 46 (1) of the State Property Act: Provided, That the administrative authority may, if deemed necessary, renew the period within 50 years. |
| (4) | Where the administrative authority rents any State-owned land, factory, etc. to any assistant enterprise under paragraph (1), it may set the rental period for up to 10 years, notwithstanding Articles 35 (1) and 46 (1) of the State Property Act: Provided, That the administrative authority may, if deemed necessary, renew the period within 10 years. |
[This Article Wholly Amended on Apr. 14, 2011]
| Article 18 (Rental or Sale of Public-Owned Land or Factories) |
| (1) | The head of a local government may rent or sell any land, factory, etc. owned by the local government and located in a free trade zone or a prospective site to an occupant enterprise, etc. after undergoing consultation thereon with the administrative authority. |
| (3) | Where any local government rents any land, factory, etc. owned by itself to any occupant enterprise under paragraph (1), the head of such local government may set the rental period for up to 50 years, notwithstanding Articles 21 and 31 of the Public Property and Commodity Management Act: Provided, That the head of the local government may, if deemed necessary, renew the rental period by up to 50 years. |
| (4) | Where any local government rents any land, factory, etc. owned by itself to any assistant enterprise under paragraph (1), the head of such local government may set the rental period for up to 10 years, notwithstanding the provisions of Articles 21 and 31 of the Public Property and Commodity Management Act: Provided, That the head of the local government may, if deemed necessary, renew the rental period within 10 years. |
[This Article Wholly Amended on Apr. 14, 2011]
| Article 19 (Deferred Payment of Purchase Price of Land or Factories and Payment thereof in Installments) |
| (1) | Where any State-owned land, factory, etc. located in any free trade zone, is sold, and the administrative authority deems it difficult for the purchaser thereof to pay the purchase price in a lump sum, the administrative authority may extend the payment settlement date or allow the purchaser to pay the price in installments, as prescribed by Presidential Decree, notwithstanding Article 50 of the State Property Act. |
| (2) | Where any land, factory, etc. owned by any local government in any free trade zone is sold and the head of the local government deems it difficult for the purchaser thereof to pay the purchase price in a lump sum, he or she may extend the payment settlement date or allow the purchaser to pay the price in installments, as prescribed by municipal ordinance, notwithstanding the provisions of Article 37 of the Public Property and Commodity Management Act. |
[This Article Wholly Amended on Apr. 14, 2011]
| Article 20 (Rent Reduction or Exemption) |
| (2) | With respect to any foreign-invested enterprise that runs a business involving high technology critical to enhance the international competitiveness of the domestic industry under Article 121-2 (1) 1 of the Restriction of Special Taxation Act, the administrative authority or the head of the relevant local government may reduce or exempt the rents, in addition to the reduction and exemption of rents referred to in paragraph (1). |
[This Article Wholly Amended on Apr. 14, 2011]
| Article 21 (Notices Demanding Payment of Rents and Dispositions Taken to Collect Rents in Arrears) |
| (1) | Where any occupant enterprise that has rented any land, factory, etc. under Article 17 (1) fails to pay rent by the due date, the administrative authority shall serve a notice demanding the payment of such overdue rent after setting a deadline within the period set by Presidential Decree, and if the occupant enterprise again fails to pay such overdue rent by such deadline, the administrative authority may terminate the lease contract or collect such overdue rent in the same manner as any national tax in arrear is collected. |
| (2) | Paragraph (1) shall apply mutatis mutandis to a notice demanding the payment of rents, etc. of the land, factory, etc. rented under Article 18 (1). In such cases, "same manner as delinquent national taxes" shall be construed as "same manner as delinquent local taxes". |
[This Article Wholly Amended on Apr. 14, 2011]
| Article 22 (Installation of Permanent Facilities) |
| (1) | Any person who rents any State-owned land under Article 17 (1) on any of the following conditions may construct factories and install permanent facilities (hereafter in this Article referred to as "permanent facilities, etc.") on the land, notwithstanding Article 18 of the State Property Act: |
| 1. | Any person who rents land on condition that he or she will donate the permanent facilities, etc. to the State at the time the rental period expires; |
| 2. | Any person who rents land on condition that he or she will return the land after reinstatement of it at the time the rental period expires. |
[This Article Wholly Amended on Apr. 14, 2011]
| Article 23 (Special Cases concerning Construction of Factories) |
| (1) | For the purposes of this Act, if any person who constructs factories, etc. concludes a contract with any occupant enterprise for the construction of a factory, etc. to be used by the latter, the former shall be deemed the latter until the time the former transfers the factory, etc. to the latter within the extent necessary for executing such contract. |
| (2) | For the purposes of this Act, if any person who rents or sells in lot factories, etc., and equipment such as machinery, instruments, etc. rents or sells them to any occupant enterprise, the former shall be deemed the latter until the time the former completes their rent or their sale to the latter. |
| (3) | In applying the Building Act, if factories, etc. are constructed in any free trade zone, the "Special Metropolitan City Mayor, a Metropolitan City Mayor, the Special Self-Governing City Mayor, a Do Governor, or the Governor of a Special Self-Governing Province and the "head of a Si/Gun/Gu" shall each be construed as "administrative authority." <Amended on Jan. 27, 2016> |
| 1. | Where a foreign-invested enterprise entered into a contract to acquire land located in any free trade zone; |
| 2. | Where the national of the Republic of Korea who owns land within any free trade zone or the corporation or group established under statutes of the Republic of Korea was changed into a foreign-invested enterprise and where such foreign-invested enterprise intends to maintain ownership of such land. |
[This Article Wholly Amended on Apr. 14, 2011]
| Article 24 Deleted. <Jan. 27, 2016> |
| Article 25 (Restrictions on Disposal of Land or Factories) |
| (1) | When any occupant enterprise, etc. intends to dispose of land (including land divided pursuant to paragraph (6) of this Article), a factory, etc. acquired under Article 17 (1) or 18 (1) or paragraph (2) of this Article, prior to reporting on completion of construction, etc. of factory pursuant to Article 14 (2) or prior to reporting on commencement of business pursuant to the former part of Article 14 (4), it shall transfer such land, factory, etc. to the administrative authority. |
| (2) | When the administrative authority finds it difficult to acquire any land, factory, etc. under paragraph (1), the administrative authority may have such land, factory, etc. transferred to another occupant enterprise selected by the administrative authority, or to any third party qualified to move into any free trade zone in accordance with Presidential Decree. |
| (3) | Where any occupant enterprise transfers or rents (including sublease; hereinafter the same shall apply) the land, factories, etc. acquired under Article 17 (1) or 18 (1), or allows other persons to use such land, factory, etc. after reporting on completion of construction, etc. of factory pursuant to Article 14 (2) or reporting on commencement of business pursuant to the former part of Article 14 (4), the contracting party shall be limited to any occupant enterprise or any third party qualified to move into the free trade zone. |
| (4) | In cases under paragraph (3), where any occupant enterprise transfers or rents, or allows any third person to use the factory, etc. constructed on the land owned by the State or any local government, it shall file a report to the administrative authority on such fact. |
| (5) | The transfer price of the land referred to in paragraph (1) and (2) shall be an amount calculated by adding the interest and costs prescribed by Presidential Decree to the acquisition price, and the transfer price of the factory, etc. may be determined taking into account the market price appraised by any appraisal corporation under the Act on Appraisal and Certified Appraisers: Provided, That the transfer price of land may not exceed the amount calculated by adding the interest and costs prescribed by Presidential Decree to the acquisition price if the occupant enterprise, etc. requests it to do so. <Amended on Jan. 19, 2016; Apr. 7, 2020> |
| (6) | Where any occupant enterprise, etc. intends to divide any land owned by itself, it shall do so after consulting in advance with the administrative authority, and the land shall be divided into more than the size determined by Ordinance of the Ministry of Trade, Industry and Energy. <Amended on Mar. 23, 2013> |
| (7) | Where an occupant enterprise has leased or transferred a factory constructed using foreign goods, etc., to an assistant enterprise within three years from the date of construction completion report for factory, etc., or the date of commencement of business, the head of the customshouse shall collect the amount of customs, etc., exemption or refund from the occupant enterprise, without delay: Provided, That this shall not apply in any case where part of the factory, etc., has been rented to the assistant enterprise with permission of the head of the customshouse. <Newly Inserted on Jan. 27, 2016> |
[This Article Wholly Amended on Apr. 14, 2011]
| Article 26 (Use of Land or Factories Acquired through Auction) |
| (1) | Any person who has acquired any land, factory, etc. in any free trade zone by auction or in accordance with the provisions of other statutes shall dispose of or use them according to the following requirements: <Amended on Jan. 27, 2016> |
| 1. | The person is required to enter into an occupancy contract provided for in Article 11, as prescribed by Presidential Decree: Provided, That the same shall not apply to cases where any person who has acquired or merged an occupant enterprise is qualified to move into any free trade zone and runs the type of business in which he or she has initially agreed to engage in such free trade zones; |
| 2. | Where the person fails to enter into an occupancy contract under subparagraph 1 (including cases where an occupancy contract is deemed to have been entered into), he or she is required to transfer his or her land, factory, etc. to another occupant enterprise or to any third party qualified to move into any free trade zone, as prescribed by Presidential Decree; |
| 3. | Where the person fails to make a transfer as referred to in subparagraph 2, he or she is required to transfer the land, factory, etc. to the administrative authority. |
| (2) | Where the land, factory, etc. is transferred to the administrative authority under paragraph (1) 3, Article 25 (5) shall apply mutatis mutandis to the transfer price. |
[This Article Wholly Amended on Apr. 14, 2011]
| Article 27 (Installation of Control Facilities) |
| (1) | The administrative authority shall install control facilities in each free trade zone after undergoing consultation thereon with the Commissioner of the Korea Customs Service and make a public announcement of the time for operation thereof. |
| (2) | The administrative authority shall maintain and manage control facilities. |
| (3) | If the Commissioner of the Korea Customs Service deems it necessary to repair or expand control facilities, he or she may request the administrative authority to repair or expand such control facilities. In such cases, the administrative authority shall comply with such request, unless there is a compelling reason not to do so. |
| (4) | The administrative authority shall maintain records of those who enter or exit a free trade zone or of automobiles in a manner described by Ordinance of the Ministry of Trade, Industry and Energy; and shall comply with any request from the head of the customshouse for submission of such entry/exit records, unless there is a compelling reason not to do so. <Newly Inserted on Jan. 27, 2016> |
[This Article Wholly Amended on Apr. 14, 2011]
| Article 28 (Maintenance Costs of Joint Facilities) |
| (1) | The administrative authority may collect costs incurred in managing and operating facilities prescribed by Ordinance of the Ministry of Trade, Industry and Energy (hereinafter in this Article referred to as "maintenance costs") among joint facilities installed in any free trade zone. <Amended on Mar. 23, 2013> |
| (2) | Standards for and means of bearing maintenance costs and other necessary matters shall be prescribed by Presidential Decree. |
| (3) | Article 21 (1) shall apply mutatis mutandis to notices demanding the payment of maintenance costs and dispositions taken to collect maintenance costs in arrears. |
[This Article Wholly Amended on Apr. 14, 2011]
| Article 28-2 (Guidelines for Operation of Free Trade Zones) |
| (1) | The Minister of Trade, Industry and Energy shall prepare guidelines for operation of free trade zones and publish it in Official Gazette, as prescribed by Presidential Decree. The same shall also apply to any modification of such guidelines. <Amended on Mar. 23, 2013> |
| (2) | If necessary for efficiently administering free trade zones, the administrative authority may publicly notify occupancy management guidelines which include the duties referred to in Article 8 (2) for each free trade zone. The same shall also apply to any modification of such guidelines. |
| (3) | Where occupancy management guidelines to be published under paragraph (2) is related to land, a factory, etc. owned by a local government, the administrative authority shall consult with the head of the relevant local government. |
[This Article Newly Inserted on Apr. 14, 2011]
CHAPTER IV SHIPMENT OF GOODS INTO OR OUT OF FREE TRADE ZONES AND CONTROL THEROF
| Article 29 (Shipment of Goods into Free Trade Zones or Import thereof) |
| (1) | Any person who intends to ship any of the following goods into any free trade zone shall file a shipment report to the head of the customshouse, as prescribed by the Commissioner of the Korea Customs Service: <Amended on Jan. 27, 2016> |
| 1. | Foreign goods: Provided, That any of the following goods for which data prescribed by the Commissioner of the Korea Customs Service is submitted shall be excluded: |
| (a) | Foreign goods shipped into Korea from overseas and transshipped from the ship, aircraft and means of transport loaded with such goods into another ship, aircraft or means of transport; |
| (b) | Goods for which an export declaration (hereinafter referred to as "export declaration") filed in accordance with Article 241 of the Customs Act is accepted; |
| 2. | Goods that fall under any of the following items and are intended to be subject to the application of Article 45 (1) and (2) among the domestic goods which any occupant enterprise intends use or consume in any free trade zone: |
| (a) | Machinery, instruments, installations, equipment and their parts; |
| (b) | Raw materials, lubricants, office computers and construction materials; |
| (c) | Other goods recognized by the Commissioner of the Korea Customs Service as necessary to achieve business objectives; |
| 3. | Any of the following goods intended to be subject to Article 45 (2) among the domestic goods which a person falling under Article 52 (1) 1 of the Value-Added Tax Act (hereinafter referred to as “non-resident, etc.”) seeks to store in a free trade zone for overseas shipment: |
| (a) | Goods shall be supplied under a direct contract with a domestic business entity; |
| (b) | Goods shall be paid for in Korean won via a foreign exchange bank; |
| (c) | Goods shall be delivered to an occupant enterprise designated by a non-resident, etc. |
| (2) | Where any person who has shipped domestic goods into any free trade zone without filing a shipment report makes an application for a written confirmation of domestic goods, the head of the customshouse may issue such written confirmation of domestic goods. In such cases, procedures for issuing the written confirmation of domestic goods and other necessary matters shall be prescribed and published by the Commissioner of the Korea Customs Service. |
| (3) | Notwithstanding paragraph (1), in any of the following cases, any person intending to ship goods into any free trade zone shall file an import declaration (hereinafter referred to as "import declaration") required by Article 241 of the Customs Act and pay customs, etc. thereon: |
| 1. | Where any person other than occupant enterprises intends to ship foreign goods into any free trade zone; |
| 2. | Where any occupant enterprise qualified to move into any free trade zone under Article 10 (1) 1 through 3 and 10 (2) intends to ship foreign goods into any free trade zone to use or consume such foreign goods in the free trade zone: Provided, That this shall not apply where any of the following foreign goods is shipped into any free trade zone: |
| (a) | Machinery, instruments, installations, equipment and their parts; |
| (b) | Raw materials (excluding raw materials for which an occupant enterprise intends to file the import declaration), lubricants, office computers and construction materials; |
| (c) | Other goods recognized by the Commissioner of the Korea Customs Service as necessary to achieve business objectives; |
| 3. | Where any occupant enterprise qualified to move into any free trade zone under Article 10 (1) 4 and 5 ships foreign goods (excluding goods necessary to achieve the relevant business objectives among goods falling under any item of subparagraph 2) into such free trade zone to use or consume such foreign goods in the free trade zone. |
| (4) | In any of the following cases, any person who intends to ship goods out of any free trade zone shall file an import declaration and pay customs, etc.: |
| 1. | Where it is intended to ship goods into the customs territory, which are produced through manufacturing, processing, assembling, repair, etc., using all or some foreign goods as raw materials in any free trade zone; |
| 2. | Where it is intended to ship foreign goods, etc. out of any free trade zones into the customs territory in their original form. |
| (5) | Notwithstanding paragraph (4), the domestic goods referred to in paragraph (1) 3 shall not be shipped out of any free trade zone into the customs territory. <Newly Inserted on Jan. 27, 2016> |
[This Article Wholly Amended on Apr. 14, 2011]
| Article 30 (Shipment or Export of Foreign Goods out of Korea) |
| (1) | Any person who intends to ship foreign goods, etc. out of Korea (including the supply of foreign goods, etc. to any foreign trade ship or foreign trade aircraft; hereinafter the same shall apply) shall file a report to the head of the customshouse thereon, as prescribed by Presidential Decree: Provided, That the same shall not apply to any goods that fall under any item of Article 29 (1) 1 and on which data prescribed by the Commissioner of the Korea Customs Service is submitted. |
| (2) | Articles 226, 241 (2), 242, 245, 246 (1) and (2), the proviso to 247 (1), 249 and the main clause of 250 (1), (2) and (3), and 251 of the Customs Act shall apply mutatis mutandis to filing reports on shipment of foreign goods, etc. out of Korea referred to in paragraph (1). In such cases, "export and import" provided for in Article 226 (1) of the Customs Act shall be construed as "shipment of goods out of Korea", "export and import goods" provided for in Article 226 (2) of the same Act shall be construed as "goods shipped out of Korea", "export declaration" provided for in the proviso to Article 242 and Article 251 (1) and (2) of the same Act shall as "report on the shipment of goods out of Korea", "export goods" provided for in the proviso to Article 242 of the same Act as "goods shipped out of Korea", and "export" provided for in Articles 245 (1) and (2), 246 (1), the proviso to 247 (1), 249, and 250 (2) and (3) of the same Act as "shipment of goods out of Korea", respectively. <Amended on Jan. 27, 2016> |
| (3) | Any person who intends to ship any goods that are not foreign goods out of a free trade zone into a foreign country shall file an export declaration. |
[This Article Wholly Amended on Apr. 14, 2011]
| Article 31 (Confirmation of Shipment of Domestic Goods out of Free Trade Zones) |
| (1) | Any person who intends to ship domestic goods that are not foreign goods out of a free trade zone into the customs territory shall submit a written confirmation of domestic goods, a tax invoice, etc. and documents verifying that they have been shipped into such free trade zone as domestic goods (hereinafter referred to as "evidentiary documents on shipment of domestic goods") to the head of the customshouse: Provided, That this shall not apply to vehicles accessing and personal effects carried by accessible persons and other goods prescribed by Presidential Decree. |
| (2) | Any person who intends to ship domestic goods out of any free trade zone pursuant to paragraph (1) may submit a report on the list of domestic goods shipped out of any free trade zone as determined by the Commissioner of the Korea Customs Service to the head of the customshouse in lieu of evidentiary documents on shipment of domestic goods: Provided, That in cases where the head of the customshouse requests submission of evidentiary documents on shipment of domestic goods, the person shall comply with such request. |
| (3) | In cases falling under the main clause of paragraph (2), a person who intends to ship domestic goods out of any free trade zone shall keep evidentiary documents on shipment of domestic goods for the period prescribed by Presidential Decree, within five years from the date on which a report on the list of domestic goods shipped out of any free trade zone is submitted pursuant to the same paragraph. |
[This Article Wholly Amended on Apr. 14, 2011]
| Article 32 (Special Cases concerning Approval of Export or Import) |
| (1) | Any person who intends to ship any goods, the import or export of which is restricted under Article 11 of the Foreign Trade Act (excluding any goods subject to a coordination order issued under Article 46 of the same Act), into any free trade zone, or out of any free trade zone to any foreign country, shall obtain approval therefor from the Minister of Trade, Industry and Energy (from the head of the customshouse in cases of areas falling under subparagraph 1 (b) through (d) of Article 5; hereinafter in this Article the same shall apply). In such cases, approval granted by the Minister of Trade, Industry and Energy shall be deemed approval granted in accordance with the Foreign Trade Act. <Amended on Mar. 23, 2013> |
| (2) | Items of goods falling under the export and import guidelines which are published comprehensively in accordance with Article 12 of the Foreign Trade Act may be shipped into any free trade zone, or out of any free trade zone into any foreign country, notwithstanding the provisions of the export and import guidelines prescribed and published by the relevant administrative agencies: Provided, That this shall not apply to goods falling under import-restricted items, including narcotics, firearms, rotten foods, etc. prescribed separately in the relevant comprehensive publication. |
| (3) | Any person who intends to ship the goods referred to in paragraph (1) into the customs territory, shall obtain approval therefor from the Minister of Trade, Industry and Energy. In such cases, approval granted by the Minister of Trade, Industry and Energy shall be deemed approval granted under the Foreign Trade Act. <Amended on Mar. 23, 2013> |
| (4) | Any person who intends to ship the goods referred to in paragraph (2) into the customs territory, shall ship such goods according to the export and import guidelines prescribed in the comprehensive publication provided for in Article 12 of the Foreign Trade Act. |
[This Article Wholly Amended on Apr. 14, 2011]
| Article 33 (Temporary Shipment of Foreign Goods out of Free Trade Zones) |
Where any occupant enterprise intends to temporarily ship any of foreign goods, etc., which have been shipped into any free trade zone, into the customs territory for the purposes of repair, exhibition as a sample, test or inspection, etc., such occupant enterprise shall obtain permission, including the shipment permit period, etc. therefor, from the head of the customshouse, as prescribed by Presidential Decree.
[This Article Wholly Amended on Apr. 14, 2011]
| Article 34 (Work Performed outside Free Trade Zones) |
| (1) | Where any occupant enterprise intends to ship foreign goods, etc. into the customs territory (including any foreign goods that such occupant enterprise intends to ship directly into the customs territory from any foreign country) to process or repair them, such occupant enterprise shall decide on the scope of processing or repair work (hereinafter referred to as "work performed outside free trade zones"), the shipment period, goods subject to shipment and the place for shipping out, and then file a report thereon to the head of the customshouse. |
| (2) | If a report referred to in paragraph (1) is filed in conformity with the provisions of this Act, the head of the customshouse shall accept such report without delay. |
| (3) | Matters concerning the work performed outside the free trade zone, the shipment period and goods subject to shipment, etc. shall be prescribed by Presidential Decree. |
| (5) | Timing for determining whether goods, on which customs, etc. are imposed under Article 187 (6) of the Customs Act that is applied mutatis mutandis under paragraph (4), are taxable objects shall be the time when a report is accepted under paragraph (2). |
[This Article Wholly Amended on Apr. 14, 2011]
| Article 35 (Shipment Reports of Goods Processed outside Free Trade Zones) |
| (1) | Article 29 (4) shall apply mutatis mutandis to cases where any occupant enterprise intends to carry the goods that are processed and repaired through work performed outside any free trade zone, out of a place for shipping out to the customs territory other than the shipping-out place. |
| (2) | Article 30 (1) and (2) shall apply mutatis mutandis to cases where any occupant enterprise intends to ship goods processed and repaired through work performed outside any free trade zone from a place for shipping out to any foreign country directly. |
| (3) | Where any occupant enterprise intends to dispose of wastes generated in the processes of work performed outside any free trade zone, it shall file a report thereon to the head of the customshouse. |
[This Article Wholly Amended on Apr. 14, 2011]
| Article 36 (Bonded Transportation) |
| (1) | The bonded transportation of foreign goods, etc. may only be made between one free trade zone and another free trade zone or a place provided for in each subparagraph of Article 213 (1) of the Customs Act. |
[This Article Wholly Amended on Apr. 14, 2011]
| Article 37 (Shipment of Goods out of Designated Areas) |
| (1) | Articles 157-2, 177 (1) 1 and 208 through 212 of the Customs Act shall apply mutatis mutandis to goods (excluding any goods that fall under any item of Article 29 (3) 2 and are used or consumed directly by any occupant enterprise) in terms of the shipment, the storage period and sale thereof, etc., on which an import declaration is filed or which are shipped into an area designated by the Commissioner of the Korea Customs Service that is an airport or harbor among free trade zones and stored in such area. In such cases, "bonded area" in Article 157-2 of the Customs Act shall be construed as "free trade zone" and "licensed bonded area" or "bonded warehouse" in Article 177 (1) of the Customs Act shall be construed as "free trade zone", respectively. |
| (2) | Where the foreign goods, for which the period determined by the Commissioner of the Korea Customs Service elapsed within one year from the date of shipment into areas other than the area referred to in paragraph (1), fall under any of the following subparagraphs, any occupant enterprise may request the head of the customshouse to sell such foreign goods, as determined and announced by the Commissioner of the Korea Customs Service: |
| 1. | Where the owner of goods is not identified; |
| 2. | Where the owner of goods goes bankrupt or insolvent; |
| 3. | Where the whereabouts of the owner of goods, such as domicile/address are unknown; |
| 4. | Where the owner of goods refuses to accept such foreign goods. |
| (3) | Articles 208 through 212 of the Customs Act shall apply mutatis mutandis to the sale of foreign goods by the head of the customshouse pursuant to paragraph (2); "bonded area" under Article 208 (1) of the said Act shall be construed as "free trade zone", "when the storage period expires" as "when a request for sale is received", "goods, the storage period of which expires" under Article 208 (2) and "goods, the storage period of which has expired" under Article 209 (1) as "goods, the sale of which is requested", respectively. |
[This Article Wholly Amended on Apr. 14, 2011]
| Article 38 (Inventory Records) |
| (1) | Every occupant enterprise shall record and manage matters such as the names of items, standards, quantities, prices, details of maintenance work, etc. of the following goods, which are necessary to manage their inventory, as prescribed and published by the Commissioner of the Korea Customs Service: Provided, That this shall not apply to goods, etc. prescribed by Presidential Decree, the prices of which are below the amount prescribed and published by the Commissioner of the Korea Customs Service: |
| 1. | Goods shipped into any free trade zone; |
| 2. | Goods used, consumed or produced in any free trade zone; |
| 3. | Goods shipped out of any free trade zone; |
| 4. | Goods having remaining economic value after being discarded pursuant to paragraph (3). |
| (2) | Where goods referred to in each subparagraph of paragraph (1) are domestic goods provided for in Article 29 (1) 2, every occupant enterprise shall record and manage matters necessary to manage their inventory separately from the inventory of other goods. |
| (3) | Where any occupant enterprise has destroyed or lost or intends to discard foreign goods, etc., he or she shall file a report thereon to the head of the customshouse, as prescribed by Presidential Decree. |
| (4) | Every occupant enterprise shall keep the data recorded in accordance with paragraph (1) or (2) for the period prescribed by Presidential Decree. |
[This Article Wholly Amended on Apr. 14, 2011]
| Article 39 (Inspections of Current State of Inventory Management by Occupant Enterprises) |
| (1) | The head of the customshouse may require a subordinate public official to inspect any occupant enterprise to verify whether such occupant enterprise manages its inventory under Article 38. In such cases, each public official who conducts an inspection shall carry identification indicating his or her authority and show it to relevant persons. |
| (2) | The head of the customshouse may request any occupant enterprise to submit its accounting book, management ledgers of raw materials and products and other necessary data necessary for conducting inspections referred to in paragraph (1). |
| (3) | No occupant enterprise shall refuse, interfere with or evade inspections referred to in paragraph (1) or refuse to submit data referred to in paragraph (2) without good cause. |
| (4) | Where the inventory of foreign goods, etc. is found to fall short as a result of an inspection conducted under paragraph (1), the head of the customshouse shall collect, without delay, customs corresponding to such shortfall from the relevant occupant enterprise, as prescribed by Presidential Decree: Provided, That this shall not apply to cases where the goods, the loss of which is reported pursuant to Article 38 (3) are confirmed to be in any free trade zone or goods are destroyed on the grounds of a disaster or other inevitability. |
| (5) | The administrative authority may, if deemed necessary for the efficient management and operation of free trade zones, request the Commissioner of Korea Customs Service to provide materials about occupant enterprises’ shipments of goods in and out of free trade zones, as prescribed by Presidential Decree. <Amended on Jan. 27, 2016> |
[This Article Wholly Amended on Apr. 14, 2011]
| Article 40 (Disposal of Goods) |
| (1) | The head of the customshouse may order the owner, shipper or agent (hereinafter referred to as "owner of the goods, etc.") of any of the following goods among goods in any free trade zone to ship such goods out of Korea or to dispose of them, or dispose of them directly after notifying in advance the owner of the goods, etc. thereof: Provided, That the head of the customshouse shall, if extenuating circumstances exist that do not allow him or her enough time to notify the owner of the goods, etc., first dispose of the goods before notifying the owner of the goods, etc., of the disposal of them without delay: |
| 1. | Goods that could harm human life and property; |
| 2. | Decayed or deteriorated goods; |
| 3. | Goods, the use-by date of which has expired; |
| 4. | Goods equivalent to those referred to in subparagraphs 1 through 3 and prescribed and announced by the Commissioner of the Korea Customs Service. |
| (2) | Where the head of the customshouse is unable to notify the owner of the goods, etc. under paragraph (1) because his or her address or residence is unknown or other justifiable grounds exist, he or she may give public notice in lieu of the notification, as prescribed by Presidential Decree. |
| (3) | Where the owner of goods, etc. ships the goods out of Korea or disposes of the goods under paragraph (1) or the head of the customshouse disposes of them, the cost incurred thereby shall be defrayed by the owner of the goods, etc. |
[This Article Wholly Amended on Apr. 14, 2011]
| Article 40-2 (Suspension of Shipments into Free Trade Zones) |
| (1) | In any of the following cases, the head of the customshouse may suspend shipments of goods by a relevant occupant enterprise into any free trade zone within six months, as prescribed by Presidential Decree: |
| 1. | Where an occupant enterprise ships foreign goods into any free trade zone to use and consume them without filing an import declaration and paying customs, etc., prescribed in Article 29 (3); |
| 2. | Where an occupant enterprise ships foreign goods out of a free trade zone and into the customs territory without filing an import declaration or paying customs, etc., prescribed in Article 29 (4); |
| 3. | Where, in filing a report on shipment out of Korea under Article 30, an occupant enterprise fails to fulfill conditions for overseas shipment as prescribed in relevant statutes, including permission, approval, recommendation, or certification; or where an occupant enterprise fulfills such conditions by improper means; |
| 4. | Where an occupant enterprise violates its duty to report shipment of goods processed outside any free trade zone or to pay customs, etc., under Article 29 (4), which is applied mutatis mutandis in accordance with Article 35 (1); |
| 5. | Where an occupant enterprise violates its duty to keep inventory records in accordance with Article 38; |
| 6. | Where an occupant enterprise refuses, obstructs, or evades investigation in violation of Article 39 (3) without good cause or refuses to submit materials; |
| 7. | Where an occupant enterprise commits any violation falling under Articles 269, 270, 270-2, 271 (excluding any person who attempts to commit a crime referred to in Article 268-2 and any person who intends to commit violations referred to in Article 268-2), and 274. |
| (2) | Where the head of the customshouse deems that the suspension of shipments of goods into free trade zones prescribed in paragraph (1) is likely to cause serious inconvenience to the user or to undermine the common good, he or she may impose a penalty surcharge on a relevant occupant enterprise not exceeding the amount equivalent to 3/100 of the amount of sales accruing from the operation of the relevant occupant enterprise, in lieu of the suspension. In such cases, necessary matters concerning calculation of the amount of sales, amount of penalty surcharge, deadline for payment thereof shall be prescribed by Presidential Decree. |
| (3) | Where a person liable to pay a penalty surcharge prescribed in paragraph (2) fails to make such payment by the payment deadline, such surcharge shall be collected in the same manner as delinquent national taxes. |
[This Article Newly Inserted on Jan. 27, 2016]
| Article 41 (Prohibition from Shipping Goods into or out of Free Trade Zones) |
| (2) | The head of the customshouse may restrict the shipment of goods that cause harm to national health or preservation of the environment or other goods prescribed by Presidential Decree into or out of any free trade zone. |
[This Article Wholly Amended on Apr. 14, 2011]
| Article 41-2 (Protection of Intellectual Property Rights) |
| (1) | Goods that infringe on any of the following intellectual property rights shall not be shipped into or out of any free trade zone: <Amended on Jun. 1, 2012> |
| 1. | Trademark rights established and registered pursuant to the Trademark Act; |
| 2. | Copyrights and its neighboring rights prescribed in the Copyright Act; |
| 3. | Seed protection rights established and registered pursuant to the Plant Variety Protection Act; |
| 5. | Patent rights established and registered pursuant to the Patent Act; |
| (2) | The Commissioner of the Korea Customs Service and the head of the customshouse may take measures necessary to police goods which infringe on intellectual property rights referred to in the subparagraphs of paragraph (1) in any free trade zone. |
| (3) | Article 235 (2) through (7) of the Customs Act shall apply mutatis mutandis to measures prescribed in paragraph (2). In such cases, "export and import" shall be construed as "shipped in or out of", "withholding of customs clearance" as "withholding of shipping in or out of", "transshipment, combined transshipment" as "transshipment pursuant to Article 29 (1) 1 (a)", "export or import declaration" as "declaration of shipping in, import declaration, export declaration and declaration on shipping out of Korea", "goods declared as transshipped or combined-transshipped" as "goods that fall under Article 29 (1) 1 (a) and on which the data determined by the Commissioner of the Korea Customs Service pursuant to the proviso to the part other than the items of Article 29 (1) 1, is submitted", and "bonded area" as "free trade zone", respectively. |
[This Article Newly Inserted on Jun. 30, 2011]
| Article 42 (Inspections of Goods) |
| (1) | The head of the customshouse may inspect or confirm any goods shipped into or out of any free trade zone or any goods exported out of or imported into any free trade zone. |
| (2) | Inspections or confirmation of the goods referred to in paragraph (1) shall be performed in a place where the relevant goods are stored: Provided, That this shall not apply to any goods stored in an airport or harbor or any place designated by the Commissioner of the Korea Customs Service or any other goods requiring a detailed inspection. |
| (3) | The head of the customshouse may inspect goods carried or transported by persons, or any means of transportation that are allowed access to any free trade zones, as prescribed and published by the Commissioner of the Korea Customs Service. |
[This Article Wholly Amended on Apr. 14, 2011]
| Article 43 (Application of the Customs Act) |
Except as otherwise expressly provided for in this Act, the Customs Act shall apply to cases where any foreign goods, etc. in any free trade zone are shipped into the customs territory. [This Article Wholly Amended on Apr. 14, 2011]
CHAPTER V IMPOSITION, REDUCTION AND EXEMPTION OF CUSTOMS
| Article 44 (Standards for Levying Customs on Goods Produced in Free Trade Zones) |
In cases falling under Article 29 (4) 1, any goods shipped out of any free trade zone shall be deemed foreign goods that arrive in Korea, and customs, etc. shall be levied thereon. In such cases, when any domestic goods for which a carry-in report has not been filed under Article 29 (1) 2 are used as raw materials with approval therefor from the head of the customshouse, as prescribed by Presidential Decree, the quantity or price of the relevant domestic goods shall be deducted from the customs duty base applied to goods manufactured, processed, assembled and repaired. [This Article Wholly Amended on Apr. 14, 2011]
| Article 45 (Exemption or Refund of Customs) |
| (2) | Domestic goods whose shipment has been reported as referred to in Article 29 (1) 2 and 3 shall be deemed goods to be exported under Article 21 (1) of the Value-Added Tax Act, and are subject to the zero rate of the value-added tax, accordingly. <Amended on Jan. 27, 2016> |
| (3) | The zero rate of the value-added tax shall apply to foreign goods, etc. services supplied or provided between occupant enterprises in any free trade zone. |
[This Article Wholly Amended on Apr. 14, 2011]
| Article 46 (Exemption of Customs in Prospective Sites) |
| (1) | Construction materials prescribed by Presidential Decree, which are imported by any occupant enterprise falling under Article 10 (1) 1 through 5 from any foreign country to construct buildings and factories in any prospective site or free trade zone governed by the Customs Act under the proviso to Article 3 (1) shall be exempted from customs, etc. |
[This Article Wholly Amended on Apr. 14, 2011]
| Article 47 (Reduction or Exemption of Taxes, including Corporate Tax) |
Every occupant enterprise that is a foreign-invested company may be subject to reductions or exemptions from taxes such as corporate tax, income tax, acquisition tax, registration license tax, property tax, composite land tax, etc., as prescribed by the Restriction of Special Taxation Act. [This Article Wholly Amended on Apr. 14, 2011]
| Article 48 (Exemption from Traffic-Congestion Charges) |
[This Article Wholly Amended on Apr. 14, 2011]
| Article 49 (Support for Technology Development by Occupant Enterprises) |
| (1) | The State or local governments may subsidize occupant enterprises in free trade zones to encourage their technology development activities and training of human resources. |
| (2) | The State or local governments shall endeavor to maintain and repair factories, etc. rented to occupant enterprises, and to expand the various infrastructure, such as medical facilities, educational facilities, housing, etc. and may provide subsidies to support the business of occupant enterprises in free trade zones. |
| (3) | Matters necessary for standards, etc. for subsidies pursuant to paragraphs (1) and (2) shall be prescribed by Presidential Decree. |
[This Article Wholly Amended on Apr. 14, 2011]
| Article 49-2 (Formulation of Plans to Promote Projects to Enhance Competitiveness of Free Trade Zones) |
| (1) | The administrative authority shall formulate and implement a plan to promote projects (hereinafter referred to as "promotion plan") to enhance the competitiveness of occupant enterprises in free trade zones. |
| (2) | A promotion plan shall contain the following: |
| 1. | Current status of the competitiveness of the relevant free trade zone; |
| 2. | Matters regarding strengthening research and development capabilities of enterprises, research institutes, universities, etc. and the interconnection among them; |
| 3. | Matters regarding strengthening incentives for occupant enterprises; |
| 4. | Systems to promote projects to enhance the competitiveness of free trade zones and plans for raising funds; |
| 5. | Other matters necessary for strengthening the competitiveness of free trade zones. |
| (3) | The State and local governments shall endeavor to secure funds necessary for implementing promotion plans effectively. |
| (4) | Where the administrative authority intends to formulate or amend a promotion plan, he or she shall hear opinions of the head of the competent local government and consult with the head of the related central administrative agency: Provided, That this shall not apply to amendments to minor matters prescribed by Presidential Decree. |
| (5) | The administrative authority may entrust a project to a solely responsible agency under Article 11 (4) of the Industrial Technology Innovation Promotion Act, for the efficient promotion of a project to enhance the competitiveness of a free trade zone. In such cases, the administrative agency may contribute funds or provide subsidy to cover necessary expenses incurred by the solely responsible agency within the budget. |
| (6) | A solely responsible agency to which a project is entrusted pursuant to paragraph (5) may require an institution specializing in the relevant field prescribed by Ordinance of the Ministry of Trade, Industry and Energy or a nonprofit corporation established pursuant to Article 32 of the Civil Act to perform part of the project on its behalf to efficiently and systematically promote the project. |
[This Article Newly Inserted on Apr. 7, 2020]
CHAPTER Ⅵ SUPPLEMENTARY PROVISIONS
| Article 50 Deleted. <Apr. 14, 2011> |
| Article 51 (Establishment of Administrative Agencies) |
| (1) | The Minister of Trade, Industry and Energy may establish and operate an administrative agency to manage and operate free trade zones and to support the export industry. <Amended on Mar. 23, 2013> |
| (2) | Any agency in charge of the work necessary for supporting occupant enterprises' business activities may open its branch offices or permanently post its staff to any free trade zone to swiftly perform the work such as levy of collection of customs or tax, immigration control, quarantine, etc. |
[This Article Wholly Amended on Apr. 14, 2011]
| Article 52 Deleted. <Jan. 27, 2016> |
| Article 53 Deleted. <Jan. 27, 2016> |
| (1) | If the administrative authority intends to terminate any occupancy contract in accordance with Article 15 (1) or (2), it shall hold a hearing. <Amended on Jan. 27, 2016> |
| (2) | Where the head of the customshouse intends to suspend shipments of goods as referred to in Article 40-2 (1), he or she shall hold a hearing. <Newly Inserted on Jan. 27, 2016> |
[This Article Wholly Amended on Apr. 14, 2011]
| Article 55 (Delegation and Entrustment of Authority) |
| (1) | The heads of central administrative agencies may entrust the administrative authority with part of their respective authority, as prescribed by Presidential Decree. |
| (2) | The Minister of Trade, Industry and Energy or the ministers of competent ministries may entrust the administrative authority with part of the Minister's authority or their respective authority provided for in the Foreign Investment Promotion Act with respect to foreign capital introduced by occupant enterprises, as prescribed by Presidential Decree. <Amended on Mar. 23, 2013> |
| (3) | The administrative authority may delegate to the heads of agencies under his or her jurisdiction, a Mayor/Do Governor, or the head of a Si/Gun/Gu (referring to the head of an autonomous Gu), or entrust the Commissioner of the Korea Customs Service, the heads of agencies under his or her jurisdiction, or other corporations prescribed by Presidential Decree with part of his or her authority provided for in this Act, as prescribed by Presidential Decree. |
[This Article Wholly Amended on Apr. 14, 2011]
| Article 55-2 (Legal Fiction as Public Officials for Purposes of Penalty Provisions) |
[This Article Newly Inserted on Apr. 14, 2011]
CHAPTER VII PENTALTY PROVISIONS
| Article 56 (Penalty Provisions) |
Any person who ships goods out of or into any free trade zone in violation of Article 41 (1) shall be punished by imprisonment with labor for not more than seven years or by a fine not exceeding 70 million won. <Amended on Jan. 21, 2014> [This Article Wholly Amended on Apr. 14, 2011]
| Article 57 (Penalty Provisions) |
| (1) | Any of the following persons shall be punished by imprisonment with labor for not more than five years or by a fine not exceeding an amount equivalent to the greater between an amount 10 times the customs and the cost of such goods: |
| 1. | A person who uses or consumes foreign goods, or ships them into any free trade zone without filing an import declaration thereon and paying customs, etc., in violation of Articles 29 (3); |
| 2. | A person who ships goods processed or repaired through work performed outside any free trade zone into the customs territory in violation of Article 35 (1). |
| 1. | A person who ships foreign goods, etc. out of any free trade zone into the customs territory without filing an import declaration thereon and paying customs, etc. under Article 29 (4); |
| 2. | A person who ships domestic goods prescribed in Article 29 (1) 3 out of any free trade zone into the customs territory, in violation of the duty prescribed in Article 29 (5). |
[This Article Wholly Amended on Apr. 14, 2011]
| Article 58 (Penalty Provisions) |
Any of the following persons shall be punished by imprisonment with labor for not more than three years or by a fine not exceeding 30 million won: <Amended on Jan. 27, 2016>
| 1. | Any person who runs a business in any free trade zone without entering into an occupancy contract or a modified occupancy contract provided for in Article 11 (1) or by obtaining such permit by improper means; |
| 2. | Any person who runs a business other than the business provided for in Article 15 (3) after his or her occupancy contract has been terminated in accordance with paragraph (1) or (2) of the same Article. |
[This Article Wholly Amended on Apr. 14, 2011]
| Article 59 (Penalty Provisions) |
Any person who ships goods out of Korea without obtaining permission, approval, recommendation, verification or meeting other conditions, which are required to ship goods out of Korea, or by obtaining them or meeting such conditions illegally, in accordance with Acts and subordinate statutes among persons who have filed reports on shipment of goods out of Korea in accordance with Article 30 shall be punished by imprisonment with labor for not more than 1 year or by a fine not exceeding 20 million won. [This Article Wholly Amended on Apr. 14, 2011]
| Article 60 (Penalty Provisions) |
Any person falling under any of the following subparagraphs shall be punished by a fine not exceeding 20 million won:
| 1. | Any person who transfers any land, factory, etc. in violation of Article 15 (5) or (6); |
| 2. | Any person who transfers any land, factory, etc., in violation of Articles 25 (1) through (3); |
| 3. | Any person who ships goods out of any free trade zone without filing a report on shipment of such goods out of Korea or by filing a false report thereon, in violation of Article 30 (1) or 35 (2); |
| 4. | Any person who fails to keep and manage an inventory record or keeps or manages a false inventory record in violation of Article 38 (1) or (2); |
| 5. | Any person who fails to preserve an inventory record referred to in Article 38 (4); |
| 6. | Any person who refuses, interferes with or evades an inspection or refuses to submit data without justifiable grounds, in violation of Article 39 (3). |
[This Article Wholly Amended on Apr. 14, 2011]
| Article 61 (Penalty Provisions) |
Any person falling under any of the following subparagraphs shall be punished by a fine not exceeding 10 million won:
| 1. | Any person who obtains a written domestic goods confirmation provided for in Article 29 (2) by fraud or other improper means; |
| 2. | Any person who temporarily ships foreign goods, etc. out of any free trade zone without obtaining permission therefor, in violation of Article 33 or fails to ship them back into the free trade zone when the shipment permission period has lapsed; |
| 3. | Any person who performs work outside a free trade zone without filing a report thereon, in violation of Article 34 (1) or 35 (3) or disposes of wastes generated from the processes of work performed outside the free trade zone; |
| 5. | Any person who discards foreign goods, etc. without filing a report on the destruction or loss thereof or filing a discard report in violation of Article 38 (3); |
| 6. | Any person who ships goods restricted under Article 41 (2) out of or into any free trade zone; |
| 7. | Any person who refuses, interferes with or evades an inspection or confirmation pursuant to Article 42. |
[This Article Wholly Amended on Apr. 14, 2011]
| (1) | Any person who aids or abets an act provided by Article 56, 57 or 59 when he or she is aware of the offender's intention to perform such act shall be punished in the same manner as the principal offender is punished. |
| (2) | Any person who prepares to commit an offense or attempts to commit an offense provided by Article 56, 57 or 59 shall be punished in the same manner as the principal offense is punished. |
[This Article Wholly Amended on Apr. 14, 2011]
| Article 63 (Confiscation of Transport Apparatus Exclusively Used for Smuggling) |
Any ship, automobile or other means of transport exclusively used for committing an offence provided for in Article 56 shall be confiscated in any of the following cases where the owner thereof knows such ship, automobile or means of transport used to commit any offence: | 1. | Where the owner has loaded, intends to or actually load smuggled Articles; |
| 2. | Where the owner refuses to follow an order given by any authoritative public official to stop or disposes of, destroys or damages smuggled Articles loaded in a ship with the aim of evading arrest; |
| 3. | Where the owner takes custody of or acquires or intends to take custody or acquires smuggled goods at sea; |
| 4. | Where the owner transports smuggled goods. |
[This Article Wholly Amended on Apr. 14, 2011]
| Article 64 (Confiscation of Goods Used for Committing Offences) |
| (1) | Any specially-processed goods for committing an offence provided for in Article 56, regardless of who owns them, shall be confiscated or the owner shall be prohibited from benefiting from them. |
| (2) | Where goods which are potentially used to commit an offence provided by Article 56 are included in other goods, and such goods are owned by an offender, such other goods may also be confiscated. |
[This Article Wholly Amended on Apr. 14, 2011]
| Article 65 (Offences of Acquiring Smuggled Goods) |
| (1) | Any person who acquires, concedes, transports, stores, arranges or appraises goods falling under Article 56, 57 or 59 shall be punished by imprisonment with labor for not more than three years or by a fine equivalent to not more than the cost of such goods. |
| (2) | Any person who prepares to commit an offense referred to in paragraph (1) or attempts to commit such offence shall be punished in the same manner as if having committed the principal offence. |
[This Article Wholly Amended on Apr. 14, 2011]
| Article 66 (Concurrent Imposition of Imprisonment with Labor and Fine) |
Any person who commits an offence provided for in Article 56, 57 or 59 may be concurrently sentenced to imprisonment with labor and a fine, in consideration of the circumstances under which such offence is committed. [This Article Wholly Amended on Apr. 14, 2011]
| Article 67 (Confiscation and Additional Collection) |
| (1) | In cases falling under Article 56, the relevant goods shall be confiscated. |
| (2) | In cases falling under Article 57, the relevant goods owned and occupied by the offender shall be confiscated. |
| (3) | When it is impossible to confiscate all or some goods which have to be confiscated under paragraph (1) or (2), an amount equivalent to the domestic wholesale price of such goods at the time the offence is committed shall also be collected from the offender. |
| (4) | Any corporation or individual provided for in Article 68 (1) shall be deemed an offender for the purposes of paragraphs (1) through (3). |
[This Article Wholly Amended on Apr. 14, 2011]
| Article 68 (Joint Penalty Provisions and Exclusion of Provisions of the Criminal Act) |
| (1) | If the representative of a corporation, or an agent or employee of, or any other person employed, by a corporation or an individual commits an offence under Articles 56 through 62 in connection with the business affairs of the corporation or individual, not only shall such offender be punished, but also the corporation or individual shall be punished by a fine under the relevant provisions: Provided, That this shall not apply to cases where such corporation or individual has not been negligent in giving due attention and supervision concerning the relevant duties to prevent such offence. |
| (2) | Article 278 of the Customs Act shall apply mutatis mutandis to any person who has done any act in violation of the penalty provisions prescribed by this Act. |
[This Article Wholly Amended on Apr. 14, 2011]
| Article 69 (Investigations and Dispositions) |
[This Article Wholly Amended on Apr. 14, 2011]
| Article 70 (Administrative Fines) |
| (1) | Any person who fails to transfer any land, factory, etc., in violation of Article 15 (5) and (6), or 26 shall be subject to an administrative fine not exceeding five million won. |
| (2) | Any of the following persons shall be subject to an administrative fine not exceeding two million won: <Amended on Jan. 27, 2016> |
| 1. | Any person who starts his or her business without filing a report on commencement of business or files a false report, in violation of Article 14 (4); |
| 2. | Any person who fails to ship any remaining foreign goods, etc. out of any free trade zone or transfer them to any other occupant enterprise, in violation of Article 15 (4); |
| 3. | Deleted; <Jan. 27, 2016> |
| 4. | Any person who ships foreign goods under Article 29 (1) 1 into a free trade zone without filing a shipment report, or by filing a false shipment report for the said goods, in violation of Article 29 (1); |
| 5. | Any person who ships domestic goods under Article 29 (1) 2 into a free trade zone by filing a false shipment report on the said goods, in violation of Article 29 (1); |
| 6. | Any person who fails to file a shipment report on domestic goods referred to in subparagraph 3 of Article 29, in violation of Article 29 (1) or who files a false report on the said goods into a free trade zone; |
| 8. | Any person who fails to submit evidentiary documents on shipment of domestic goods or who ships domestic goods into the customs territory by submitting false evidentiary documents thereon, in violation of the proviso to Article 31 (1); |
| 9. | Any person who fails to submit evidentiary documents on shipment of domestic goods or who submits false evidentiary documents on shipment of domestic goods into a free trade zone, in violation of the proviso to Article 31 (2); |
| 10. | Any person who fails to keep evidentiary documents on shipment of domestic goods for the specified period, in violation of Article 31 (3); |
| (3) | Any person falling under any of the following subparagraphs shall be punished by an administrative fine not exceeding one million won: |
| 1. | Any person who fails to file a report on transfer, rental or use of a factory, etc. required by Article 25 (4); |
| 4. | Any person who fails to execute an order issued by the head of the customshouse to ship goods out of Korea or to dispose of goods pursuant to Article 40 (1), without good cause; |
| 5. | Deleted. <Jan. 27, 2016> |
| (4) | Administrative fines under paragraphs (1) through (3) shall be levied and collected by the head of a customshouse (referring to the administrative authority in cases falling under paragraphs (1), (2) 1 and (3) 1), as prescribed by Presidential Decree. <Amended on Jan. 27, 2016> |
[This Article Wholly Amended on Apr. 14, 2011]
ADDENDA <Act No. 7210, Mar. 22, 2004>
Article 1 (Enforcement Date)
This Act shall enter into force three months after the date of its promulgation.
Article 2 (Repeal of other Acts)
Article 3 (Applicability to Shipment of Goods out of Free Trade Zones on Which Import Declaration is Accepted)
The provisions of Article 157-2 of the Customs Act that are applied mutatis mutandis by the amended provisions of Article 37 shall apply to the first-accepted import declaration after this Act enters into force. Article 4 (Transitional Measures concerning Customs-Free Zones)
Article 5 (Transitional Measures concerning Registered Enterprises, etc. in Customs-Free Zones)
Article 6 (Transitional Measures concerning Occupancy-Permitted Enterprises in Free Trade Zones)
The administrative authority who grants occupancy permits in accordance with the provisions of Article 9 of the Act on the Designation, etc. of Free Trade Zones at the time this Act enters into force shall notify the head of the customhouse of matters concerning permits for occupant enterprises.
Article 7 (Transitional Measures concerning Disqualification from Occupancy Permits)
Any person who obtains an occupancy permit in accordance with Article 9 of the former Act on the Designation, etc. of Free Trade Zone (including any person who is deemed to have obtained an occupancy permit in accordance with Article 5 (1) of the Addenda) as at the time this Act enters into force or any other person who is a disqualified executive as provided by the amended provisions of subparagraphs 2 through 7 of Article 12 on the grounds that accrue prior to this Act entering into force shall be governed by the former provisions, notwithstanding the amended provisions of the same Article. Article 8 (Transitional Measures concerning Use and Consumption of Foreign Goods)
Article 9 (Transitional Measures concerning Shipment of Sample Goods out of Customs-Free Zones)
Article 10 (Transitional Measures concerning Reporting on Outside Work)
Article 11 (Transitional Measures concerning Reports on Destruction of Foreign Goods, etc.)
Article 12 (Transitional Measures concerning Exemption and Refund of Customs, etc.)
Article 13 (Transitional Measures concerning Reduction and Exemption of Rents)
The reduction and exemption of rents provided by Article 33 of the previous Act on Designation and Management of Customs-Free Zones for Building International Logistics Center or the reduction and exception of rents provided by Article 31 (2) and (3) of the former Act on the Designation, etc. of Free Trade Zone as at the time this Act enters into force shall be deemed the reduction and exemption of rents provided by the amended provisions of Article 20. Article 14 (Transitional Measures concerning Penalty Provisions)
Article 15 Omitted.
Article 16 (Relationship with other Acts)
ADDENDA <Act No. 7335, Jan. 14, 2005>
Article 1 (Enforcement Date)
This Act shall enter into force on the date of its promulgation.
Articles 2 through 12 Omitted.
ADDENDA <Act No. 7864, Mar. 3, 2006>
Article 1 (Enforcement Date)
This Act shall enter into force three months after the date of its promulgation.
Articles 2 through 11 Omitted.
ADDENDA <Act No. 8085, Dec. 26, 2006>
| (1) | (Enforcement Date) This Act shall enter into force six months after the date of its promulgation. |
| (2) | (Transitional Measures concerning Occupancy Requirements into Free Trade Zones) Any person who have obtained an occupancy permit into a free trade zone under the former provisions as at the time this Act enters into force shall be deemed to have obtained such occupancy permit under the former provisions, notwithstanding the amended provisions of Article 10 (1). |
ADDENDA <Act No. 8138, Dec. 30, 2006>
Article 1 (Enforcement Date)
This Act shall enter into force on January 1, 2007. (Proviso Omitted.)
Articles 2 through 6 Omitted.
ADDENDA <Act No. 8356, Apr. 11, 2007>
Article 1 (Enforcement Date)
This Act shall enter into force on the date of its promulgation.
Articles 2 through 7 Omitted.
ADDENDA <Act No. 8566, Jul. 27, 2007>
Article 1 (Enforcement Date)
This Act shall enter into force six months after the date of its promulgation. (Proviso Omitted.)
Articles 2 and 3 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. 8829, Dec. 31, 2007>
Article 1 (Enforcement Date)
This Act shall enter into force on January 1, 2008.
Articles 2 through 12 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. 9071, Mar. 28, 2008>
Article 1 (Enforcement Date)
This Act shall enter into force on January 1, 2009. (Proviso Omitted.)
Articles 2 through 11 Omitted.
ADDENDUM <Act No. 9243, Dec. 26, 2008>
This Act shall enter into force on the date of its promulgation.
ADDENDA <Act No. 9374, Jan. 30, 2009>
Article 1 (Enforcement Date)
This Act shall enter into force six months after the date of its promulgation (Proviso Omitted.)
Article 2 Omitted.
ADDENDA <Act No. 9401, Jan. 30, 2009>
Article 1 (Enforcement Date)
This Act shall enter into force six months after the date of its promulgation (Proviso Omitted.)
Articles 2 through 11 Omitted.
ADDENDA <Act No. 9587, Apr. 1, 2009>
| (1) | (Enforcement Date) This Act shall enter into force six months after the date of its promulgation. |
| (2) | (Transitional Measures) The application of penalty provisions to any act done before this Act enters into force shall be governed by the former provisions. |
ADDENDA <Act No. 9780, Jun. 9, 2009>
Article 1 (Enforcement Date)
This Act shall enter into force three months after the date of its promulgation (Proviso Omitted.)
Articles 2 through 12 Omitted.
ADDENDA <Act No. 10590, Apr. 14, 2011>
Article 1 (Enforcement Date)
This Act shall enter into force three months after the date of its promulgation.
Article 2 (Applicability to Reports on Completion, etc. of Construction of Factories and on Commencement of Business)
The amended provisions of Article 14 (2) and (4) shall apply to the first person who obtains an occupancy permit or a modified occupancy permit after this Act enters into force. Article 3 (Applicability to Restrictions on Disposal of Land, Factories, etc.)
The amended provisions of Article 25 (1), (3) and (5) shall apply to the first land any occupant enterprise, etc. acquires or divides or to a factory, etc. any occupant enterprise, etc. first acquires after this Act enters into force. Article 4 (Applicability to Division of Land)
The amended provisions of Article 25 (6) shall apply to the first land to be divided after this Act enters into force. Article 5 (Transitional Measures concerning Occupancy Certificates Replacing Registration of Factory)
Any occupancy certificate issued pursuant to the former provisions before this Act enters into force shall be deemed the certificate of registration of factory issued by the administrative authority pursuant to the amended provisions of Article 14 (2) of this Act.
ADDENDA <Act No. 10808, Jun 30, 2011>
| (1) | (Enforcement Date) This Act shall enter into force from the date of its promulgation: Provided, That the amended provisions of Article 41-2 shall enter into force on the date the Free Trade Agreement between the Republic of Korea and the European Union and its Member States (on the date two years pass after the said free trade agreement comes into effect in cases of patent rights under Article 41-2 (1) 5 and design rights under Article 41-2 (1) 6) comes into effect. |
| (2) | (Applicability) The amended provisions of Article 41-2 shall apply to the first goods on which a shipment report (including submission of the data determined by the Commissioner of the Korea Customs Service pursuant to the proviso to the part other than the items of Article 29 (1) 1, as the goods falling under Article 29 (1) 1 (a)) or an import declaration pursuant to Article 29, a report on shipment out of Korea or an export declaration pursuant to Article 30, and a report on bonded transportation pursuant to Article 36 is filed after the said amended provisions enter into force. |
ADDENDA <Act No. 11020, Aug. 4, 2011>
Article 1 (Enforcement Date)
This Act shall enter into force on the date of its promulgation. (Proviso Omitted.)
Articles 2 through 11 Omitted.
ADDENDA <Act No. 11029, Aug. 4, 2011>
Article 1 (Enforcement Date)
This Act shall enter into force on the date of its promulgation.
Articles 2 and 3 Omitted.
ADDENDA <Act No. 11042, Sep. 15, 2011>
Article 1 (Enforcement Date)
This Act shall enter into force on July 1, 2012.
Article 2 Omitted.
ADDENDA <Act No. 11458, Jun. 1, 2012>
Article 1 (Enforcement Date)
This Act shall enter into force one year after the date of its promulgation.
Article 2 through 6 Omitted.
ADDENDA <Act No. 11690, Mar. 23, 2013>
Article 1 (Enforcement Date)
| (1) | This Act shall enter into force on the date of its promulgation. |
Articles 2 through 7 Omitted.
ADDENDA <Act No. 12301, Jan. 21, 2014>
Article 1 (Enforcement Date)
This Act shall enter into force on the date of its promulgation.
Article 2 (Transitional Measures concerning Incompetent Persons, etc.)
Persons under adult guardianship referred to in the amended provisions of subparagraph 1 of Article 12 shall be deemed to include persons for whom declaration of incompetence or quasi-incompetence remains effective pursuant to Article 2 of the Addenda of partial amendment to the Civil Act by Act No. 10429.
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 year after the date of its promulgation.
Articles 2 through 11 Omitted.
ADDENDA <Act No. 13856, Jan. 27, 2016>
Article 1 (Enforcement Date)
This Act shall enter into force six months after the date of its promulgation.
Article 2 (Transitional Measures concerning Changes from Occupancy Permit into Occupancy Contract)
| (1) | Any person who obtained an occupancy permit under the former Article 11 as at the time this Act enters into force, shall be deemed to have entered into an occupancy contract under the amended provisions of Article 11: Provided, That implementation of measures prescribed in each subparagraph of the former Article 13 and revocation of occupancy permit referred to in Article 15 (2) 5 shall be governed by the former provisions. |
| (2) | Any person who can not obtain an occupancy permit under the former provisions of subparagraph 8 of Article 12 shall be deemed a person unable to enter into an occupancy contract under the amended provisions of subparagraph 8 of Article 12 until two years have elapsed from the date such occupancy permit is revoked. |
Article 3 (Transitional Measures concerning Penalty Provisions and Administrative Fines)
The previous provisions shall apply to the imposition of penalty provisions and administrative fines for acts done before this Act enters into force.
Article 4 Omitted.
ADDENDA <Act No. 14113, Mar. 29, 2016>
Article 1 (Enforcement Date)
This Act shall enter into force one year after the date of its promulgation.
Articles 2 through 18 Omitted.
ADDENDA <Act No. 15575, Apr. 17, 2018>
Article 1 (Enforcement Date)
This Act shall enter into force six months after the date of its promulgation.
Article 2 (Applicability concerning Occupancy Requirements)
The amended Article 10 (1) shall begin to apply from the first repatriating enterprise and foreign-invested enterprise entering into an occupancy contract after this Act enters into force.
ADDENDUM <Act No. 17192, Apr. 7, 2020>
This Act shall enter into force six months after the date of its promulgation.
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.
ADDENDA <Act No. 17883, Jan. 5, 2021>
Article 1 (Enforcement Date)
This Act shall enter into force three months after the date of its promulgation.
Articles 2 through 9 Omitted.