SPECIAL ACT ON ESTABLISHMENT AND MANAGEMENT OF FOREIGN EDUCATIONAL INSTITUTIONS IN FREE ECONOMIC ZONES AND JEJU FREE INTERNATIONAL CITY
Act No. 7533, May 31, 2005
Amended by Act No. 8852, Feb. 29, 2008
Act No. 9366, Jan. 30, 2009
Act No. 10632, May 19, 2011
Act No. 11690, Mar. 23, 2013
Act No. 13426, Jul. 24, 2015
Act No. 14147, May 29, 2016
Act No. 16741, Dec. 10, 2019
Act No. 17007, Feb. 18, 2020
Act No. 17074, Mar. 24, 2020
Act No. 17954, Mar. 23, 2021
The purpose of this Act is to enhance the educational environment for foreigners residing in free economic zones and Jeju Special Self-Governing Province by prescribing necessary matters concerning the establishment, management, etc. of foreign educational institutions to be established in free economic zones under Article 22 of the Special Act on Designation and Management of Free Economic Zones, and foreign educational institutions to be established in Jeju Special Self-Governing Province under Article 220 of the Special Act on the Establishment of Jeju Special Self-Governing Province and the Development of Free International City. <Amended on Jan. 30, 2009: May 19, 2011; Jul. 24, 2015; Mar. 23, 2021>
The terms used in this Act are defined as follows: <Amended on Jan. 30, 2009; May 19, 2011; Jul. 24, 2015; Mar. 23, 2021>
| 1. | The term "foreign educational foundation" means the State, a local government, or a non-profit corporation which establishes and manages a preschool, elementary, secondary, or higher educational institution under the foreign statutes or regulations in a foreign country; |
| 2. | The term "foreign educational institution" means a foreign educational institution to be established and managed in free economics zones under Article 22 of the Special Act on Designation and Management of Free Economic Zones, and a foreign educational institution to be established and managed in Jeju Special Self-Governing Province under Article 220 of the Special Act on the Establishment of Jeju Special Self-Governing Province and the Development of Free International City. |
| Article 3 (Relationship to Other Statutes) |
| Article 4 (Qualifications for Establishment) |
Persons eligible to establish foreign educational institutions shall be limited to foreign educational foundations. <Amended on Mar. 23, 2021>
| Article 5 (Approval of Establishment) |
| (1) | A foreign educational foundation that intends to establish a foreign educational institution shall meet the standards for establishment, including facilities and equipment as prescribed by Presidential Decree and obtain approval from the approving authority under subparagraph 2 upon recommendation from the recommending authority under subparagraph 1: <Amended on Feb. 18, 2020> |
| 1. | The recommending authority classified as follows: |
| (b) | A foreign educational institution to be established in Jeju Special Self-Governing Province: The Governor of Jeju Special Self-Governing Province; |
| 2. | The approving authority classified as follows: |
| (2) | A foreign educational foundation that intends to apply for approval of establishment of a foreign educational institution under paragraph (1) shall submit an application form to a person authorized to grant approval of the relevant foreign educational institution under paragraph (1) 2 (hereinafter referred to as "approving authority"), along with documents containing the trading name, the purpose of establishment, an educational management plan, etc., as prescribed by Presidential Decree. <Amended on Feb. 29, 2008; Mar. 23, 2013; Feb. 18, 2020; Mar. 23, 2021> |
| (3) | The approval under paragraph (1) may be subject to conditions. <Amended on Mar. 23, 2021> |
| (4) | The head of a foreign educational institution shall obtain approval from the approving authority in advance when intending to modify the matters regarding the approval of establishment, including the trading name, the purpose of establishment, the school building and site, and other important matters as prescribed by Presidential Decree. <Amended on Feb. 29, 2008; Mar. 23, 2013; Feb. 18, 2020> |
| (5) | Procedures for approval of establishment of foreign educational institutions and other necessary matters concerning establishment shall be prescribed by Presidential Decree. |
| Article 6 (Registration of Establishment) |
| (1) | When obtaining establishment approval for a foreign educational institution, the foreign educational foundation shall file for the same registration of establishment as that of a branch office of a juristic person under Article 50 of the Civil Act within three weeks of the approval date of establishment. In this case, "director" in the matters to be registered shall be construed as "representative of the foreign educational institution". <Amended on Mar. 23, 2021> |
| (2) | The registration under paragraph (1) shall include the following: |
| 1. | Applicable statutes or regulations for establishment of the foreign educational foundation in the relevant country; |
| 2. | Name and address of the foreign educational institution representing the foreign educational foundation in the Republic of Korea. |
| (3) | Articles 51, 52, 52-2, 53, and 54 of the Civil Act shall apply mutatis mutandis to the registration under paragraph (1). In such cases, "director" and "juristic person" shall be construed as "head of the foreign educational institution" and "foreign educational institution", respectively. <Amended on Mar. 23, 2021> |
| (4) | In cases of filing registration for modification by applying mutatis mutandis Article 52 of the Civil Act pursuant to paragraph (3), if the modification of the registered matters occurs in a foreign country, the approving authority shall be notified of the grounds therefor without delay, and the period of registration shall be counted from the date of receipt of the notification. <Amended on Feb. 29, 2008; Mar. 23, 2013; Feb. 18, 2020; Mar. 23, 2021> |
| Article 7 (Legal Capacity of Foreign Educational Institutions to Hold Rights) |
With regard to the legal capacity of foreign education institutions to hold rights and to perform lawful acts, Articles 34 and 35 of the Civil Act shall apply mutatis mutandis.
| Article 8 (Establishment of Foreign Educational Institution) |
| (1) | The foreign education institution shall come into existence when it registers the establishment pursuant to Article 6. <Amended on Mar. 23, 2021> |
| (2) | In the case of paragraph (1), the head of the foreign educational institution shall represent the foreign educational foundation. |
| Article 8-2 (Teachers and Staff) |
[This Article Newly Inserted on Dec. 10, 2019]
| Article 9 (Guidance and Supervision) |
| (1) | The approving authority shall be responsible for the guidance and supervision of foreign educational institutions. <Amended on Feb. 29, 2008; Mar. 23, 2013; Feb. 18, 2020> |
| (2) | If deemed necessary for the guidance and supervision of foreign educational institutions, the approving authority may require the head of a foreign educational institution to submit relevant materials as prescribed by Presidential Decree. <Amended on Feb. 29, 2008; Mar. 23, 2013; Feb. 18, 2020> |
| Article 10 (Student Quota) |
| (1) | The quota for students of a foreign educational institution shall be set by the head of that foreign educational institution, except for quotas relating to the fostering of human resources, including teachers, medical personnel, pharmacists, and medical technicians, as prescribed by Presidential Decree: Provided, That the quota for domestic students admittable to foreign educational institutions equivalent to all high schools or schools at lower level shall be determined by the head of the foreign educational institution within the scope of the ratio prescribed by Presidential Decree. <Amended on Mar. 23, 2021> |
| Article 11 (Recognition of Scholastic Ability) |
| (1) | Where a foreign educational institution equivalent to an elementary, middle, or high school under Article 2 of the Elementary and Secondary Education Act operates a curriculum prescribed by Presidential Decree, the superintendent of education may designate such institution as an educational institution to which scholastic recognition is granted. <Amended on Feb. 29, 2008; Mar. 23, 2013; Feb. 18, 2020; Mar. 23, 2021> |
| (2) | Any person who graduates from a foreign educational institution equivalent to a university or junior college under Article 2 of the Higher Education Act shall be deemed to have the same scholastic attainment as a person who has graduated from the corresponding school in the Republic of Korea. <Amended on Mar. 23, 2021> |
| (3) | Necessary matters concerning the designation under paragraph (1) shall be determined by Presidential Decree. <Amended on Mar. 23, 2021> |
| Article 12 (Accounting of Foreign Educational Institutions) |
The accounting of foreign educational institutions shall follow the accounting principles as prescribed by the Minister of Education, etc. <Amended on Feb. 29, 2008; Mar. 23, 2013>
| Article 13 (Rental and Sale of State-Owned or Publicly-Owned Property) |
With regard to the rental and sale of State-owned, publicly-owned property, etc. to foreign educational institutions, the provisions relating to support for foreign investment in Article 13 of the Foreign Investment Promotion Act shall apply mutatis mutandis. In this case, "foreign-invested companies, etc." shall be construed as "foreign educational foundation".
| Article 14 (Financial Support) |
| Article 15 (Measures Regarding Support) |
| (1) | The State or local governments may take any of the following measures with regard to foreign educational institutions or foreign educational foundations supported under Article 13 or 14: <Amended on Mar. 23, 2021> |
| 1. | To participate in a decision-making body concerning the management of a foreign educational institution, with the prior consent of that foreign educational foundation or foreign educational institution: Provided, That participation is permissible without the prior consent of such foundation or institution where the State or a local government provides the whole or a part of the school site and facilities, and the foreign educational foundation establishes and manages the foreign educational institution (hereinafter referred to as "jointly managed foreign educational institution"); |
| 2. | To be briefed by the foreign educational foundation or the foreign educational institution on its operations or accounting if deemed necessary; |
| 3. | To recommend modifications to budget-related measures if the budget management of the foreign educational foundation or the foreign educational institution is deemed improper in light of the purpose for the support. |
| (2) | The State or local governments may cease support under Article 13 or 14 on the grounds falling under any of the following subparagraphs: <Amended on Mar. 23, 2021> |
| 1. | Where continuous support is deemed improper due to poor outcomes from the support; |
| 2. | Where the foreign educational foundation or the foreign educational institution fails to follow the recommendations under paragraph (1) 3. |
| Article 16 (Approval of Closure of Foreign Educational Institution) |
The head of a foreign educational foundation or a foreign educational institution who intends to close the foreign educational institution shall obtain approval from the approving authority. <Amended on Feb. 29, 2008; Mar. 23, 2013; Feb. 18, 2020>
| Article 17 (Corrective Orders) |
| (1) | The approving authority may issue a corrective order for a specified period where the foreign educational institution falls under any of the following subparagraphs: <Amended on Feb. 29, 2008; Mar. 23, 2013; Feb. 18, 2020; Mar. 24, 2020; Mar. 23, 2021> |
| 1. | Where it violates the standards for establishment under Article 5 (1); |
| 2. | Where it fails to meet the conditions of approval under Article 5 (3); |
| 3. | Where it sets the quota, in violation of Article 10; |
| 4. | Where it fails to hold classes for at least three months consecutively, except during a vacation period; |
| 6. | Where it violates this Act or an order issued under this Act. |
| (2) | The approving authority may revoke the approval of establishment under Article 5 (1) or take necessary measures, such as the closure of a department or the suspension of student enrollments, as prescribed by Presidential Decree, where the foreign educational institution falls under any of the following subparagraphs: <Amended on Feb. 29, 2008; Mar. 23, 2013; Feb. 18, 2020; Mar. 23, 2021> |
| 1. | Where it is issued with a corrective order under paragraph (1) but fails to comply with it without good cause within the designated period; |
| 2. | Where it fails to rectify the issues provided for in paragraph (1). |
| (3) | The approving authority may order a person who operates any facility as a de facto foreign educational institution by using the title of a foreign educational institution or enrolling students without obtaining approval of establishment under Article 5 (1), to close such facility. <Amended on Feb. 29, 2008; Mar. 23, 2013; Feb. 18, 2020> |
| Article 18 (Modification or Revocation of Approval of Establishment of Foreign Educational Institution) |
| (1) | The approving authority may revoke approval of establishment under Article 5 (1) in any of the following cases: <Amended on Feb. 29, 2008; Mar. 23, 2013; Feb. 18, 2020; Mar. 23, 2021> |
| 1. | Where approval of establishment under Article 5 (1) or approval of modification under paragraph (4) of the same Article has been obtained by fraud or other improper means; |
| 2. | Where the foreign educational institution fails to open for at least one year from the scheduled date of opening. |
| (2) | The approving authority may revoke or modify approval of establishment under Article 5 (1) in any of the following cases: <Amended on Feb. 29, 2008; Jan. 30, 2009; May 19, 2011; Mar. 23, 2013; Feb. 18, 2020; Mar. 23, 2021> |
| 2. | Where the foreign educational foundation which establishes and manages the foreign educational institution is closed or dissolved. |
| (3) | Where any cause prescribed in paragraph (2) 2 occurs, the head of the foreign educational institution shall report the fact to the approving authority within seven days. <Amended on Feb. 29, 2008; Mar. 23, 2013; Feb. 18, 2020> |
Where the approving authority intends to revoke approval of establishment, close a department, or suspend student enrollment under Article 17 (2) or 18, he/she shall hold a hearing. <Amended on Feb. 29, 2008; Mar. 23, 2013; Feb. 18, 2020; Mar. 23, 2021>
| Article 20 (Liquidation of Foreign Educational Institution) |
| (1) | Where a foreign educational institution is closed or its approval of establishment is revoked under Article 16, 17 (2) or 18, it shall liquidate all of the property belonging to its account. In such cases, the foreign educational foundation which established and manages the foreign educational institution shall fulfill the obligations not satisfied out of all of the property of the said institution. <Amended on Mar. 23, 2021> |
| (2) | With regard to the liquidation under paragraph (1), Articles 81 through 85, 87 through 92, and 94 and 95 of the Civil Act shall apply mutatis mutandis. In this case, "director", "juristic person", and "prosecutor" shall be construed as "head of the foreign educational institution", "foreign educational institution", and "approving authority", respectively. <Amended on Feb. 29, 2008; Mar. 23, 2013; Feb. 18, 2020; Mar. 23, 2021> |
| (3) | Where the foreign educational institution is liquidated under paragraph (1), its assets, capital, reserves, and other surpluses shall first be appropriated to discharge the obligations to Korean citizens and to the foreigners who have an address or residence in the Republic of Korea. <Amended on Mar. 23, 2021> |
| (4) | No property of the foreign educational institution liquidated under paragraph (1) shall be transferred to another account of the said institution without undergoing the liquidation procedures as prescribed by this Act. <Amended on Mar. 23, 2021> |
| Article 21 Deleted. <Feb. 18, 2020> |
| Article 22 (Penalty Provisions) |
Any person who falls under any of the following subparagraphs shall be punished by imprisonment with labor for not more than three years or by a fine not exceeding 30 million won: <Amended on May 29, 2016; Feb. 18, 2020; Mar. 23, 2021>
| 1. | Anyone who operates any facility as a de facto foreign educational institution by using the title of a foreign educational institution or enrolling students, without obtaining approval of establishment under Article 5 (1); |
| 2. | Anyone who fails to obtain approval of modification, in violation of Article 5 (4); |
| 3. | Anyone who has obtained approval of establishment under Article 5 (1) or approval of modification under paragraph (4) of the same Article by fraud or other improper means; |
| 4. | Anyone who closes a foreign educational institution without obtaining approval of closure, in violation of Article 16; |
| 5. | Anyone who transfers the property of a foreign educational institution to other accounts of a related foreign educational foundation without going through the liquidation procedures prescribed in this Act pursuant to Article 20 (4). |
| Article 23 (Penalty Provisions) |
The head of any foreign educational institution who violates a corrective order issued under Article 17 (1) shall be punished by imprisonment with labor for not more than one year or by a fine not exceeding 10 million won. <Amended on May 29, 2016; Mar. 23, 2021>
| Article 24 (Administrative Fines) |
| (1) | The head of any foreign educational institution who fails to perform the duties relating to registration under this Act shall be subject to an administrative fine not exceeding five million won. <Amended on Mar. 23, 2021> |
| (2) | The administrative fine prescribed in paragraph (1) shall be imposed and collected by the approving authority, as prescribed by Presidential Decree. <Amended on Feb. 29, 2008; Mar. 23, 2013; Feb. 18, 2020; Mar. 23, 2021> |
| (3) | Any person who is dissatisfied with a disposition of an administrative fine issued under paragraph (2) may file an objection with the Minister of Education within 60 days after the date on which he/she received the notification of the administrative fine. <Amended on Feb. 29, 2008; Mar. 23, 2013; Mar. 23, 2021> |
| (4) | Where any person who is subject to the disposition of an administrative fine issued under paragraph (2) has filed an objection pursuant to paragraph (3), the Minister of Education shall, without delay, notify such fact to the competent court which, in turn, shall conduct the trial on the administrative fine in accordance with the Non-Contentious Case Procedure Act. <Amended on Feb. 29, 2008; Mar. 23, 2013; Mar. 23, 2021> |
| (5) | Where no objection is filed within the period specified in Article 3 and an administrative fine is not paid, the administrative fine shall be collected in the same manner as delinquent local taxes are collected. <Amended on Mar. 23, 2021> |
ADDENDUM <Act No. 7533, May 31, 2005>
This Act shall enter into force six months after the date of its promulgation.
ADDENDA <Act No. 8852, Feb. 29, 2008>
Article 1 (Enforcement Date)
This Act shall enter into force on the date of its promulgation: Provided, That ··· <omitted> ··· the amendments to the Acts, which were promulgated before this Act enters into force but the enforcement dates of which have not yet arrived, among the Acts amended by Article 6 of the Addenda, shall enter into force on the enforcement dates of the respective Acts.
Articles 2 through 7 Omitted.
ADDENDA <Act No. 9366, Jan. 30, 2009>
Article 1 (Enforcement Date)
This Act shall enter into force six months after the date of its promulgation.
Articles 2 through 9 Omitted.
ADDENDUM <Act No. 10632, May 19, 2011>
This Act shall enter into force on the date of its promulgation.
ADDENDA <Act No. 11690, Mar. 23, 2013>
Article 1 (Enforcement Date)
| (1) | This Act shall enter into force on the date of its promulgation. |
Articles 2 through 7 Omitted.
ADDENDA <Act No. 13426, Jul. 24, 2015>
Article 1 (Enforcement Date)
This Act shall enter into force six months after the date of its promulgation. (Proviso Omitted.)
Articles 2 through 39 Omitted.
ADDENDUM <Act No. 14147, May 29, 2016>
This Act shall enter into force on the date of its promulgation.
ADDENDUM <Act No. 16741, Dec. 10, 2019>
This Act shall enter into force on the date of its promulgation.
ADDENDA <Act No. 17007, Feb. 18, 2020>
Article 1 (Enforcement Date)
This Act shall enter into force on January 1, 2021. (Proviso Omitted.)
Article 2 (Preliminary Measures to Transfer Administrative Affairs)
| (1) | The head of a relevant central administrative agency shall prepare measures necessary to provide required personnel and financial resources necessary for a full-scale transfer of the central administrative authority and administrative affairs under this Act and shall report such measures to the competent standing committee of the National Assembly not later than three months before the enforcement date under this Act. |
Article 3 (General Transitional Measures concerning Administrative Dispositions)
Any disposition or other acts made or conducted by an administrative agency pursuant to the previous provisions as at the time this Act enters into force shall be deemed a disposition or acts made or conducted by an administrative agency pursuant to the provisions of this Act; and any application, report, or other acts filed with or conducted toward an administrative agency pursuant to the previous provisions shall be deemed an application, report, or acts filed with or conducted toward an administrative agency pursuant to the provisions of this Act.
Article 4 Omitted.
ADDENDUM <Act No. 17074, Mar. 24, 2020>
This Act shall enter into force six months after the date of its promulgation.
ADDENDUM <Act No. 17954, Mar. 23, 2021>
This Act shall enter into force on the date of its promulgation. (Proviso Omitted.)