CHAPTER I GENERAL PROVISIONS
The purpose of this Decree is to prescribe matters mandated by the Software Promotion Act and those necessary for the enforcement of said Act.
| Article 2 (Scope of Software Engineers) |
| (1) | “Person with educational background or experience prescribed by Presidential Decree” in subparagraph 10 (b) of Article 2 of the Software Promotion Act (hereinafter referred to as the "Act") means any of the following persons: |
| 2. | A person who has software technology skills and has a period of work experience in software technology; |
| 3. | Any other person who is recognized as having an educational background or work experience equivalent to or greater than that of a person described in subparagraph 1 or 2; |
| (2) | Detailed criteria, procedures, and methods, etc. for recognition as software engineers described in paragraph (1) shall be determined and publicly notified by the Minister of Science and ICT. |
CHAPTER II POLICY MEASURES FOR PROMOTING SOFTWARE
| Article 3 (Formulation of Master Plans and Implementation Plans) |
| (1) | The Minister of Science and ICT shall formulate and implement a master plan for promoting software (hereinafter referred to as "master plan") under Article 5 (1) of the Act every three years. |
| (2) | The Minister of Science and ICT shall formulate and implement an implementation plan for promoting software under Article 5 (3) of the Act (hereinafter referred to as "implementation plan") every year in accordance with the master plan. |
| (3) | Where necessary for formulating and implementing the master plan and implementation plan, the Minister of Science and ICT may request the head of a relevant central administrative agency, the Special Metropolitan City Mayor, a Metropolitan City Mayor, a Special Self-Governing City Mayor, a Do Governor, or a Special Self-Governing Province Governor (hereinafter referred to as the "Mayor/Do Governor") to cooperate in formulating and implementing the plans. |
| (4) | When the Minister of Science and ICT formulates or modifies a master plan or an implementation plan, he or she shall publicly announce such fact. |
| Article 4 (Submission of Data for Conducting Fact-Finding Surveys of Software Industry Information) |
| (1) | If the Minister of Science and ICT intends to request a software business entity, software convergence business entity, or software-related trade association (referring to an organization comprised of at least two software business entities or software convergence business entities which engage in the fields of the software industry; hereinafter referred to as "trade association"), or the Korea Software Financial Cooperative under Article 61 (1) of the Act to submit necessary data in order to conduct a fact-finding survey of software industry information pursuant to Article 6 (2) of the Act, he or she shall issue a written request for submission of data stating the following by no later than 15 days prior to the deadline for submission of the data: |
| 1. | Grounds for requesting the submission of data; |
| 2. | Deadline for submission of data; |
| 3. | Details of the data requested; |
| 4. | Methods and forms of preparation of the data requested; |
| 5. | Usage of the data requested. |
| (2) | A software business entity, a software convergence business entity, a trade association, or the Korea Software Financial Cooperative under Article 61 (1) of the Act, which is requested to submit data pursuant to paragraph (1), may submit the data through information and communications networks or by e-mail or other electronic means. |
| Article 5 (Software Industry Information Total System) |
| (1) | The Minister of Science and ICT may establish and operate a Software Industry Information Total System (hereinafter referred to as the "Software Industry Information Total System") to comprehensively manage and disclose software industry information pursuant to Article 7 of the Act. |
| (2) | The Minister of Science and ICT may perform the following affairs to efficiently establish, operate, and facilitate the use of the Software Industry Information Total System: |
| 1. | Research and development and technical support for establishing and operating the Software Industry Information Total System; |
| 2. | Undertaking of joint projects for establishing the Software Industry Information Total System; |
| 3. | Facilitation of information-sharing through the Software Industry Information Total System; |
| 4. | Other affairs deemed necessary by the Minister of Science and ICT for the efficient establishment, operation, and facilitation of the use of the Software Industry Information Total System. |
| (3) | The Minister of Science and ICT may organize and operate a consultative body with business entities, institutions, or organizations related to the software industry and software convergence to facilitate the efficient establishment, operation, and facilitation of the use of the Software Industry Information Total System. |
CHAPTER III LAYING FOUNDATION FOR SOFTWARE INDUSTRY
SECTION 1 Support for Software Industry
| Article 6 (Projects of the Software Policy Research Institute) |
| 1. | Research for the formulation of mid- to long-term policies related to the promotion of software and the vitalization of convergence thereof; |
| 2. | Analysis of trends in the software industry and policies of foreign countries; |
| 3. | Advice concerning software policies; |
| 4. | Other affairs deemed necessary by the Minister of Science and ICT for the efficient promotion and development of the software industry. |
| Article 7 (Regional Software Industry Promotion Agencies) |
| (1) | An agency eligible to be designated as a software industry promotion agency by region under Article 9 (2) of the Act (hereinafter referred to as the "regional industry promotion agency") shall meet all of the following requirements: |
| 1. | It shall be a non-profit corporation established under Article 32 of the Civil Act with funds contributed by the relevant local government; |
| 2. | It shall have specialized departments, human resources, funds, and physical facilities necessary for performing the affairs specified in Article 9 (1) of the Act; |
| (2) | The Minister of Science and ICT may entrust the following affairs that are to be conducted in each upper-level administrative division, the jurisdiction of which corresponds to that of each Metropolitan City, Special Self-Governing City, Do, or Special Self-Governing Do, to one regional industry promotion agency each (hereinafter referred to as the "hub regional industry promotion agency in upper-level administrative division"), which the Minister determines with the recommendation of the relevant Mayor/Do Governor, among regional industry promotion agencies located in relevant upper-level administrative divisions. |
| 1. | The following affairs to support the promotion of the software industry based on the characteristics of the relevant upper-level administrative division and to facilitate convergence between the software industry and other industries in the upper-level administrative division: |
| (a) | Surveys and research on policies and systems; |
| (b) | Surveys and research on the current status and actual conditions of the relevant upper-level administrative division; |
| (c) | Undertaking of research and development projects and dissemination of the outcome thereof; |
| (d) | Installation and operation of support facilities; |
| 2. | Fostering of enterprises and facilitation of business startup in the field of the software industry based on the characteristics of the relevant upper-level administrative division or in an industry field that involves the convergence of the software industry and other industries in the upper-level administrative division; |
| 3. | Provision of software training and development of human resources related to software; |
| 4. | Facilitation of the use of software and support for software distribution; |
| 5. | Facilitation of international cooperation among software business entities and support for their entry into overseas markets; |
| 6. | Enhancement of software quality capabilities; |
| 7. | Other affairs deemed necessary by the Minister of Science and ICT to support the promotion of the software industry and to facilitate convergence with local industries. |
| (3) | The Minister of Science and ICT may entrust affairs relating to the promotion of the software industry that are to be conducted in a region, the jurisdiction of which includes a Si, Gun, or autonomous Gu (excluding autonomous Gus in the Special Metropolitan City), to a regional industry promotion agency located in the region. In such cases, the subparagraphs of paragraph (2) shall apply mutatis mutandis to such affairs, and "upper-level administrative division" shall be construed as "region." |
| (4) | Where the Minister of Science and ICT has entrusted the affairs pursuant to paragraphs (2) and (3), he or she shall give public notice of regional industry promotion agencies entrusted with the affairs and details of the affairs. |
| (5) | The Minister of Science and ICT may provide regional industry promotion agencies to which he or she has entrusted the affairs pursuant to paragraphs (2) and (3) with financial and/or administrative support necessary for performing the entrusted affairs. |
| (6) | Where a regional industry promotion agency is entrusted with the affairs pursuant to paragraphs (2) and (3), it shall submit a performance report thereon for the previous year and an implementation plan for the relevant year to the Minister of Science and ICT by the last day of February each year. |
| (7) | Detailed matters relating to requirements and procedures for designating regional industry promotion agencies, methods for performing entrusted affairs, and other relevant matters under paragraphs (1) through (6) shall be determined and publicly notified by the Minister of Science and ICT. |
| Article 8 (Regional Software Industry Development Council) |
| (1) | Regional industry promotion agencies may establish a Korea Reginal Software Industry Promotion Council (hereinafter referred to as the "Council") to promote mutual cooperation in developing the software industry in relevant regions. |
| (2) | Where the Minister of Science and ICT formulates policies for the promotion of software by region, he or she may hear the opinion of the Council. |
| (3) | The Minister of Science and ICT may provide necessary support for the smooth operation of the Council. |
| Article 9 (Designation of Software Promotion Facilities) |
| (1) | Facilities eligible to be designated as software promotion facilities pursuant to Article 11 (1) of the Act shall meet all of the following requirements: |
| 1. | At least five software business entities (in the case of the Special Metropolitan City, 10 software business entities) shall take occupancy of a facility which desires to be designated as a software promotion facility under Article 11 (1) of the Act (hereinafter referred to as "promotion facility"); |
| 3. | At least 50/100 of the total floor area of a facility that desires to be designated as a promotion facility shall be used as a software project facility and its ancillary supporting facility; |
| 4. | Common use facilities, such as conference rooms and equipment rooms for common use, which are necessary for the software business shall be installed in a facility that desires to be designated as a promotion facility. |
| (2) | An entity which seeks to obtain designation as a promotion facility pursuant to Article 11 (2) of the Act (including a local government) shall submit an application prescribed by Ordinance of the Ministry of Science and ICT to the Minister of Science and ICT, along with documents substantiating that the entity meets the requirements for designation under paragraph (1). |
| (3) | Upon designating a promotion facility under Article 11 (3) of the Act, the Minister of Science and ICT shall publicly notify such fact. |
| (4) | Detailed matters relating to the designation, management, etc. of promotion facilities under paragraphs (1) through (3) shall be determined and publicly notified by the Minister of Science and ICT. |
| Article 10 (Revocation of Designation of Promotion Facilities) |
| (1) | Where the Minister of Science and ICT intends to revoke the designation of a promotion facility pursuant to Article 11 (6) of the Act, he or she shall hear opinions of the competent Mayor/Do Governor in advance. |
| (2) | Where the Minister of Science and ICT revokes the designation of a promotion facility pursuant to Article 11 (6) of the Act, he or she shall publicly notify such revocation. |
| Article 11 (Support for Promotion Facilities) |
The Minister of Science and ICT may provide the following support to promotion facilities in order to facilitate the creation and operation thereof:
| 1. | Funding necessary for establishing and operating promotion facilities; |
| 2. | Installation and operation of supporting facilities required for a software project, such as super high-speed information and communications network; |
| 3. | Other support the Minister of Science and ICT deems necessary for the efficient establishment and operation of promotion facilities. |
| Article 12 (Designation of Software Promotion Complexes) |
| (1) | An area eligible to be designated as a software promotion complex pursuant to Article 12 (1) of the Act shall meet all of the following requirements: |
| 1. | At least 25 software business entities (50 business entities in the case of the Special Metropolitan City) shall reside in the area intended to be designated as a software promotion complex (hereinafter referred to as "promotion complex"), or in which a promotion complex is to be established, in accordance with Article 12 (1) of the Act; |
| 2. | Software-related facilities and institutions shall exist in the area intended to be designated as a promotion complex or in which a promotion complex is to be established; |
| 3. | Infrastructure, such as transportation systems, communications networks, and financial institutions, shall be built in the area. |
| (2) | An entity which seeks to obtain designation as a promotion complex under Article 12 (2) of the Act shall submit an application prescribed by Ordinance of the Ministry of Science and ICT to the Minister of Science and ICT, along with documents substantiating that the requirements for designation under paragraph (1) are met. |
| (3) | Where the Minister of Science and ICT has designated a promotion complex by accepting an application for designation as a promotion complex under paragraph (2) or by directly establishing a promotion complex, he or she shall publicly notify such fact. |
| (4) | Detailed matters relating to the designation, management, etc. of promotion complexes under paragraphs (1) through (3) shall be determined and publicly notified by the Minister of Science and ICT. |
| Article 13 (Revocation of Designation of Promotion Complexes) |
| (1) | Article 10 shall apply mutatis mutandis to the revocation of designation of a promotion complex under Article 12 (4) of the Act. In such cases, "promotion facility" shall be construed as "promotion complex." |
| (2) | Article 11 shall apply mutatis mutandis to support for promotion complexes. In such cases, "promotion facility" shall be construed as "promotion complex." |
| Article 14 (Gratuitous Use of State-Owned Property) |
"Software startup entrepreneurs or other persons prescribed by Presidential Decree" in Article 15 of the Act means any of the following: | 1. | A software business entity; |
| 2. | A software startup entrepreneur whose use of the lent State-owned property under Article 15 of the Act is deemed necessary by the Minister of Science and ICT to support software business startup; |
| 3. | A cooperation referred to in Article 23 (3) 4 whose use of the lent State-owned property under Article 15 of the Act is deemed necessary by the Minister of Science and ICT to support software business startup. |
SECTION 2 Standardization and Quality Certification
| Article 15 (Granting of Software Quality Certification) |
| (1) | A person who intends to obtain software quality certification under Article 20 (1) of the Act (hereinafter referred to as "software quality certification") shall apply for quality certification to a certification institution designated under paragraph (2) of that Article (hereinafter referred to as "software quality certification institution"), as prescribed by Ordinance of the Ministry of Science and ICT. |
| (2) | A person who has obtained software quality certification from a software quality certification institution under Article 20 (3) of the Act may affix a mark indicating that he or she has obtained software quality certification (hereinafter referred to as "software quality certification mark") to the relevant product, document, etc. |
| (3) | The head of a software quality certification institution may receive expenses incurred in providing certification services from persons who apply for software quality certification pursuant to paragraph (1). In such cases, the Minister of Science and ICT shall determine and publicly notify detailed matters necessary for claiming such relevant expenses. |
| (4) | Detailed matters relating to application for software quality certification under paragraph (1), issuance of certificates of software quality, and the form of software quality certification mark under paragraph (2) shall be prescribed by Ordinance of the Ministry of Science and ICT. |
| Article 16 (Designation of Software Quality Certification Institutions) |
| (1) | "Institution that meets the designation requirements prescribed by Presidential Decree" in Article 20 (2) of the Act means an institution that meets all the following requirements: |
| 1. | It shall have an organization and human resources necessary for providing software quality certification services; |
| 2. | It shall satisfy environmental conditions, such as equipment necessary for providing software quality certification services and independent spaces and facilities necessary for operating such equipment; |
| 3. | It shall establish evaluation procedures prescribing matters to be evaluated for each category of software subject to software quality certification, criteria for such evaluation, and other relevant matters. |
| (2) | Where the Minister of Science and ICT designates, or revokes the designation of, a software quality certification institution pursuant to Article 20 (2) or (5) of the Act, he or she shall publicly announce such fact. |
| (3) | Detailed matters relating to requirements for the designation of software quality certification institutions under paragraph (1) and procedures for the designation of software quality certification institutions and for revocation of such designation under paragraph (2) shall be prescribed by Ordinance of the Ministry of Science and ICT. |
| Article 17 (Standards for Software Quality Certification) |
| (1) | Software eligible for software quality certification under Article 20 (3) of the Act shall meet all the following requirements: |
| 1. | It shall precisely perform software functions stated in the product manual, user guide, etc.; |
| 2. | Its performance efficiency, compatibility, etc. shall be at a level appropriate for use. |
| (2) | Detailed standards for software quality certification under paragraph (1) shall be determined and publicly notified by the Minister of Science and ICT. |
| Article 18 (Granting of Software Process Quality Certification) |
| (1) | A person who intends to obtain software process quality certification under Article 21 (1) of the Act (hereinafter referred to as "software process quality certification") shall apply for software process quality certification to a certification institution under paragraph (2) of that Article (hereinafter referred to as "software process quality certification institution") as prescribed by Ordinance of the Ministry of Science and ICT. |
| (2) | A person who has obtained software process quality certification under Article 21 (3) of the Act may place a mark on the relevant product, documents, etc., indicating that he or she has obtained software process quality certification (hereinafter referred to as "software process quality certification mark"). |
| (3) | The head of a software process quality certification institution may receive expenses incurred in providing certification services from persons who apply for software process quality certification pursuant to paragraph (1). In such cases, the Minister of Science and ICT shall determine and publicly notify detailed matters necessary for claiming such relevant expenses. |
| (4) | The software process quality certification shall be valid for three years from the date the certification is obtained. |
| (5) | The term of validity under paragraph (4) may be extended only twice, by up to two years per occasion, as determined and publicly notified by the Minister of Science and ICT. |
| (6) | Detailed matters relating to application for software process quality certification and issuance of a software quality certificate under paragraph (1), the forms of software process quality certification mark under paragraph (2), and extension of the term of validity of the software process quality certification under paragraph (5) shall be prescribed by Ordinance of the Ministry of Science and ICT. |
| Article 19 (Designation of Software Process Quality Certification Institution) |
| (1) | "Institution that meets the designation requirements prescribed by Presidential Decree" in Article 21 (2) of the Act means an institution that meets all the following requirements: |
| 1. | It shall have an organization and human resources responsible for assessment, both of which are necessary for providing software process certification services; |
| 2. | It shall establish operating procedures for providing software process certification services in a fair and objective manner. |
| (2) | Where the Minister of Science and ICT designates, or revokes the designation of, a software process quality certification institution pursuant to Article 21 (2) or (5) of the Act, he or she shall publicly announce such fact. |
| (3) | Detailed matters relating to requirements for designation of software process quality certification institutions under paragraph (1) and procedures for designation, or revocation of designation, of software process quality certification institutions under paragraph (2) shall be prescribed by Ordinance of the Ministry of Science and ICT. |
| Article 20 (Standards for Software Process Quality Certification) |
| (1) | A software business entity eligible for software process quality certification under Article 21 (3) of the Act shall meet all the following requirements: |
| 1. | It shall have a process of software maintenance and management, such as formulation of a plan for developing software and control thereof; |
| 2. | It shall have a software development process, which includes analysis, design, etc. required in the software development process. |
| 3. | It shall have a software support process required for software quality control, such as quality assurance; |
| 4. | It shall have the capability necessary to manage the process of the organization, such as the process standardization in the organization and the application and spread thereof; |
| 5. | It shall have the capability necessary to maintain or improve software process; |
| 6. | It shall have software process capability and the capability necessary for development and management relating to quality characteristics required in fields, such as software convergence. |
| (2) | Detailed matters relating to standards for certification under paragraph (1) shall be determined and publicly notified by the Minister of Science and ICT. |
| Article 21 (Scope of State Agencies) |
| 4. | An institution or organization of which the Government holds the largest equity share by investing capital therein: Provided, That any financial institution in which the Government invests less than 1/2 of its capital shall be excluded; |
| 6. | Any institution and organization that receives contributions from the Government in accordance with statutes or regulations; |
| 7. | A local government-invested public corporation or local public agency in which a local government has invested at least 1/2 of its capital in accordance with the Local Public Enterprises Act. |
| Article 22 (Preferential Treatment to Persons Having Obtained Software Process Quality Certification) |
Where the head of a State agency, etc. evaluates the technical competence of a software business entity which seeks to participate in a software project, while implementing the project, he or she may give preferential treatment to a software business entity which has obtained software process quality certification pursuant to Article 21 (4) of the Act.
SECTION 3 Human Resources Development and Technology Improvement
| Article 23 (Development of Software Human Resources) |
| (1) | The Minister of Science and ICT shall formulate a plan for education and training (including re-education and re-training; hereinafter the same shall apply) to develop human resources who have professional skills and knowledge relating to software and software convergence (hereinafter referred to as "software human resources") to implement policies on matters specified in Article 22 (1) 1 of the Act (hereinafter referred to as "education and training plan"). |
| (2) | The education and training plan shall include the following matters with respect to the development of software human resources: |
| 1. | Basic direction-setting for education and training; |
| 2. | Execution plan to provide education and training; |
| 3. | Funding plan for education and training; |
| 4. | Other matters deemed necessary by the Minister of Science and ICT for providing education and training for the development of software human resources. |
| (3) | "Entity which meets the requirements prescribed by Presidential Decree" in Article 22 (2) of the Act means any of the following institutions or organizations satisfying the requirements specified in attached Table 1: |
| 5. | Other education and training institutions related to the software industry, which the Minister of Science and ICT deems necessary to be designated as a software human resources training institution. |
| (4) | Where the Minister of Science and ICT intends to designate software human resources training institutions pursuant to Article 22 (2) of the Act, he or she may select institutions or organizations that seek to be designated through public invitation. |
| (5) | Where the Minister of Science and ICT designates, or revokes the designation of, a software human resources training institution pursuant to Article 22 (2) or (3) of the Act, he or she shall publicly announce such fact. |
| (6) | Detailed matters necessary for the development of software human resources, other than those provided in paragraphs (1) through (5), shall be prescribed by Ordinance of the Ministry of Science and ICT. |
| Article 24 (Operation of Specialized Software Educational Institutions) |
| (1) | A specialized software educational institution under Article 23 (1) of the Act (hereinafter referred to as "specialized software educational institution") shall only offer non-degree courses. |
| (2) | Detailed affairs conducted by a specialized software educational institution shall be as follows: |
| 1. | Development, operation, and distribution of efficient software educational courses, such as intensive software educational courses; |
| 2. | Affairs deemed necessary by the Minister of Science and ICT for developing software human resources. |
| Article 25 (Verification of Work Experience of Software Engineers) |
"Data prescribed by Presidential Decree" in the former part of Article 24 (5) of the Act means the following data regarding business entities or institutions related to software engineers: | 3. | Other data deemed necessary by the Minister of Science and ICT to maintain and manage the records of the place of employment, work experience, educational backgrounds, qualification, etc. of software engineers (hereinafter referred to as "work experience, etc.") and to secure the authenticity and accuracy of such records. |
| Article 26 (Selection of Persons Eligible for Support for Research Activities) |
| (2) | Articles 5 through 10 of the Enforcement Decree of the Sciences Promotion Act shall apply mutatis mutandis to the selection of persons eligible for support for research activities, grant of research project funds, signing of an agreement, and reporting and evaluation of the results of research activities conducted by researchers under Article 26 (1) through (3) of the Act. In such cases, "science support" shall be construed as "support for research activities"; "science support projects" as "support projects for research activities"; "scientific exchange" as "exchange of research activities"; "scientific activities" as "research activities"; and the "Minister of Education" as the "Minister of Science and ICT." |
CHAPTER IV SOFTWARE CONVERGENCE AND SOFTWARE EDUCATION
SECTION 1 Promoting Software Convergence and Ensuring Software Safety
| Article 27 (Promotion of Software Development Security) |
“Projects prescribed by Presidential Decree” in subparagraph 3 of Article 29 of the Act means the following projects relating to software development security in the private sector: | 1. | Investigation into and research on laws and systems; |
| 2. | Fact-finding surveys and international cooperation; |
| 3. | Diagnosis of security vulnerabilities and technical support; |
| 4. | Accumulation and use of information; |
| 5. | Formulation and dissemination of reference standards for software development security; |
| 6. | Monitoring of implementation of software development security. |
| Article 28 (Projects Related to Promotion of the Software Safety Industry) |
“Projects prescribed by Presidential Decree” in subparagraph 6 of Article 31 of the Act means the following projects relating to software safety: | 1. | Investigation into and research on laws and systems; |
| 2. | Fact-finding surveys and international cooperation. |
SECTION 2 Software Education and Creation of Software Culture
| Article 29 (Method of Tests of Practical Competency in IT) |
| (1) | The Test of Practical Competency in IT provided in Article 35 (1) of the Act (hereinafter referred to as the "Test of Practical Competency in IT") shall consist of written and practical tests. |
| (2) | The Test of Practical Competency in IT shall be conducted at least once a year. |
| (3) | The Minister of Science and ICT shall publicly announce matters necessary for conducting the Test of Practical Competency in IT, such as details, dates, times, and places thereof, on its website by not later than 90 days before the date the test is conducted. |
| (4) | The Minister of Science and ICT shall notify applicants of the results of the Test of Practical Competency in IT or make them available for perusal by the applicants. |
| (5) | The Minister of Science and ICT may receive fees from persons who intend to apply for, or receive certificates with regard to, the Test of Practical Competency in IT within the limits of actual expenses. |
| (6) | Detailed matters relating to the administration and implementation of the Test of Practical Competency in IT under paragraphs (1) through (5) shall be determined and publicly notified by the Minister of Science and ICT. |
CHAPTER V ADVANCEMENT OF SOFTWARE PROJECTS
SECTION 1 Common Provisions
| Article 30 (Contents of Contract for Software Project) |
| 1. | Methods and timing of finalization of task details; |
| 2. | Procedures for change to the task details finalized; |
| 3. | Procedures for change in contract amount, contract period, etc.; |
| 4. | Penalty for delay, penalty for breach of contract, or other compensation for damage; |
| 5. | Scope of defects with regard to defect liability and criteria for determination of defects; |
| 6. | Matters relating to the attribution, use, and protection of, and resolution of disputes involving, intellectual property rights related to a software project; |
| 7. | Other matters determined and publicly notified by the Minister of Science and ICT necessary to be specified clearly in a contract for the purpose of enhancing fairness in the contract and clarity of the terms and conditions of the contract. |
| Article 31 (Reporting of Disadvantageous Treatment) |
| (1) | A contractor who intends to report disadvantageous treatment, etc. by a project owner (hereinafter referred to as "disadvantageous treatment, etc.") in accordance with Article 39 (2) of the Act shall submit a written report stating the following matters to the Minister of Science and ICT: |
| 1. | Name, address, and contact information of the reporting person; |
| 2. | Name or title of the reported person (in the case of a corporation, the name of the representative of the corporation shall be included); |
| 3. | Details of disadvantageous treatment, etc. that the reporting person has received and data to substantiate such treatment. |
| (2) | Where the Minister of Science and ICT deems it necessary to supplement a report submitted pursuant to paragraph (1), he or she may request the relevant reporting person to supplement it within a specified period. |
| (3) | Upon receipt of a report under paragraph (1), the Minister of Science and ICT shall notify the reported person of the fact that the report was received, the name of the reporting person, and the details of the report, directly or by mail (including e-mail), within seven days from the date the report was received (referring to the date supplementation is completed where such supplementation was requested pursuant to paragraph (2)). |
| (4) | The Minister of Science and ICT shall hear the opinions of the reporting person and the reported person on the details of the report under paragraph (1). |
| (5) | The Minister of Science and ICT shall notify the reporting person and the reported person of the results of processing the details of the report and the grounds therefor directly or by mail (including e-mail). |
| Article 32 (Requirements for Public-Private Partnership Software Projects) |
| (1) | A software project referred to in Article 40 (1) of the Act (hereinafter referred to as "public-private partnership software project") shall meet all of the following requirements: |
| 1. | That it shall be any of the following software projects which use private capital and technology: |
| (a) | Project that the public sector defined in subparagraph 11 of Article 2 of the Act on Public-Private Partnerships in Infrastructure (hereinafter referred to as the "public sector") uses, as a service, any software which has already been developed (including minor modifications, such as user interface change and improvement of additional functions) by the private sector defined in subparagraph 12 of that Article (hereinafter referred to as the "private sector"); |
| (b) | Project involving software development, the cost of which to be borne by the private sector shall be at least 50/100 of the total project cost; |
| 2. | That it shall contribute to enhancing convenience in people's lives through implementation of the relevant project; |
| 3. | That each project specified in the items of subparagraph 1 shall have a method for cooperation between the public and private sectors, including the matters classified as follows: |
| (a) | Project under subparagraph 1 (a): Matters relating to software usage fees, etc.; |
| (b) | Project under subparagraph 1 (b): Matters relating to methods of developing and operating software, sharing the costs and the profits, etc.; |
| (2) | Detailed matters relating to requirements for the public-private partnership software project referred to in paragraph (1) shall be determined and publicly notified by the Minister of Science and ICT. |
| (3) | When the head of a State agency, etc. (excluding those provided in subparagraphs 1 and 2 of Article 21) intends to implement a public-private partnership software project, he or she shall first obtain approval therefor from the head of the competent State agency or local government. |
| Article 33 (Public-Private Partnership Software Projects Proposed by Private Sector) |
| (1) | The private sector may propose that the head of a State agency, etc. implement a public-private partnership software project. |
| (2) | When the head of a State agency, etc. determines to implement a public-private partnership software project proposed under paragraph (1), he or she shall notify the proposer of such fact and publicly announce the details of such proposal to enable a third party, other than the proposer, to participate in the project. |
| (3) | When the head of a State agency, etc., reviews and evaluates a proposal made by the initial proposer under paragraph (1) and a proposal made by a third party under paragraph (2), he or she may give preferential treatment to the initial proposer as determined and publicly notified by the Minister of Science and ICT. |
| (4) | Detailed matters relating to public-private partnership software projects proposed in the private sector under paragraphs (1) through (3) shall be determined and publicly notified by the Minister of Science and ICT. |
| Article 34 (Forecast of Demand for Software Projects) |
| (1) | Pursuant to Article 41 (1) of the Act, the head of a State agency, etc. shall submit to the Minister of Science and ICT information on demand for purchase of commercial software, and a plan for implementation of software projects, of the agencies under its jurisdiction, by the following deadlines. In such cases, the head of the State agency, etc. may submit the information on demand for purchase of commercial software, and the plan for implementation of software projects, of the agencies under its jurisdiction, through the Software Industry Information Total System. |
| 1. | Information on demand for purchase of commercial software and a plan for implementation of software projects for the relevant year: The last day of February every year; |
| 2. | Information on demand for purchase of commercial software and a plan for implementation of software projects for the following year: October 31 of every year. |
| (2) | Where the Minister of Science and ICT discloses information on demand for purchase of commercial software and a plan for implementation of software projects pursuant to Article 41 (2) of the Act, he or she shall disclose the relevant information and plan through the Software Industry Information Total System within 30 days from the date of receipt of the relevant information and plan. |
SECTION 2 Implementation of Software Projects
| Article 35 (Conducting Software Project Impact Assessment) |
| (1) | Where the head of a State agency, etc. implements a software project, he or she shall assess the impact of the software project pursuant to the main clause of Article 43 (1) of the Act (hereinafter referred to as "software project impact assessment") by the following deadlines: |
| 2. | Where he or she intends to place an order for the software project: Before giving a notice of tender; |
| 3. | Where the head of a State agency, etc. deems that the distribution of the relevant software or provision of services might intrude into the private software market: Before giving a notice of tender. |
| (2) | When the head of a State agency, etc. conducts software project impact assessment, he or she shall examine the following matters: |
| 1. | Similarities between software developed, distributed, operated, maintained, and managed as part of the software project subject to software project impact assessment and private-sector software; |
| 2. | Possibility of intrusion by the software project subject to software project impact assessment into the private software market; |
| 3. | Necessity and public nature of the software project subject to software project impact assessment. |
| (3) | The head of a State agency, etc. shall prepare a report on the results of software project impact assessment (hereafter in this Article referred to as "result report") according to detailed assessment items determined and publicly notified by the Minister of Science and ICT based on the results of the software project impact assessment. In such cases, where he or she prepares a result report, based on the software project impact assessment conducted under paragraph (1) 1, the report shall be submitted to the Minister of Science and ICT. |
| (4) | Where the head of a State agency, etc. deems that it is not appropriate to implement a relevant software project (excluding software projects related to national security; hereafter in this paragraph the same shall apply) based on the results of a software project impact assessment, he or she shall re-examine the software project by adjusting the details of the software project. |
| (5) | The Minister of Science and ICT may provide the head of a State agency, etc. with technical support necessary to ensure that the software project impact assessment proceeds smoothly. |
| (6) | Detailed matters relating to conducting software project impact assessments under paragraphs (1) through (5) shall be determined and publicly notified by the Minister of Science and ICT. |
| Article 36 (Projects Excluded from Software Project Impact Assessment) |
| 1. | Projects for the purchase, installation, maintenance, and management of commercial software; |
| 2. | Software projects related to national security, public order and safety, diplomacy, etc., which are not appropriate as private-sector projects; |
| 3. | Public-private partnership software projects; |
| 4. | Other software projects determined and publicly notified by the Minister of Science and ICT in consideration of their impact on the private software market. |
| Article 37 (Grounds for Exclusion from Re-Assessment of Results of Software Project Impact Assessment) |
| 1. | Where a software project the re-assessment of which is requested under the former part of Article 43 (3) of the Act (hereinafter referred to as "re-assessment") falls under any subparagraph of Article 36; |
| 2. | Where the same software business entity repeatedly requests a re-assessment with regard to the results of a software project impact assessment which has already been conducted; |
| 3. | Other cases where it is obvious that such request for re-assessment is made without good cause. |
| Article 38 (Standards for Labor Costs of Software Engineers) |
Statistics on labor costs that the Korea Software Industry Association under Article 10 of the Act (hereinafter referred to as the "Korea Software Industry Association") collects and produces after obtaining approval as specified in the former part of Article 18 (1) of the Statistics Act and publishes pursuant to Article 27 (1) of that Act shall apply to standards for labor costs of software engineers designed to ensure payment of an appropriate price under Article 46 (1) of the Act.
| Article 39 (Collection of Information on Software Projects) |
Article 4 shall apply mutatis mutandis where the Minister of Science and ICT requests the head of a State agency, etc. to submit necessary data pursuant to Article 46 (3) of the Act. In such cases, "software business entity, a software convergence business entity, a trade association, or the Korea Software Financial Cooperative under Article 61 (1) of the Act" shall be construed as "State agency, etc."
| Article 40 (Matters Subject to Prior Consultations in Implementing Software Projects) |
| Article 41 (Standards for Small or Medium Software Business Entities) |
| (1) | "Small and medium software business entities prescribed by Presidential Decree" in Article 48 (1) of the Act means any of the following: |
| (2) | "Software business entity categorized as a large company prescribed by Presidential Decree (hereinafter referred to as "large software business entity") in the former part of Article 48 (2) of the Act means a software business entity which does not fall under any subparagraph of paragraph (1). |
| Article 42 (Request for Performance Records on Participation of Large Software Business Entities) |
The Minister of Science and ICT may request the heads of State agencies, etc. to submit the following:
| 1. | Performance records on restricting the participation of large software business entities under the former part of Article 48 (2) of the Act; |
| Article 43 (Procedures for Recognition of Public-Private Partnership Software Projects) |
| (1) | Where the head of a State agency, etc. intends to obtain recognition pursuant to Article 48 (3) 4 of the Act for a software project under his or her jurisdiction that he or she intends to implement in cooperation with the private sector, he or she shall submit a public-private partnership software project plan to the Minister of Science and ICT, along with documents substantiating that all the requirements prescribed in the subparagraphs of Article 32 (1) are satisfied. |
| (2) | Where the Minister of Science and ICT deems that the relevant project meets all the requirements under the subparagraphs of Article 32 (1) after reviewing the project plan submitted under paragraph (1), he or she shall notify the head of the relevant State agency, etc. of such fact and give public notice that the relevant project is deemed a public-private partnership software project. |
| (3) | When the head of a State agency, etc. intends to change any of the requirements specified in any subparagraph of Article 32 (1) for a public-private partnership software project publicly notified under paragraph (2), he or she shall submit a plan for change to the public-private partnership software project to the Minister of Science and ICT, along with the documents stating the changed requirement. |
| (4) | The Minister of Science and ICT shall review the plan for change to the project submitted pursuant to paragraph (3) and publicly notify the results thereof. |
| (5) | Detailed matters relating to procedures for deeming public-private partnership software projects under paragraphs (1) through (4) shall be determined and publicly notified by the Minister of Science and ICT. |
| Article 44 (Method of Contracting for Software Project by State Agency) |
| (1) | “Method prescribed by Presidential Decree” in the main clause of Article 49 (1) of the Act means any of the following methods: |
| (2) | The Minister of Science and ICT may include the provision of preferential treatment to persons who have obtained software process quality certification pursuant to Article 21 (4) of the Act, in accordance with the guidelines under Article 49 (2) of the Act. |
| Article 45 (Formation of Software Project Task Deliberation Committee) |
| (1) | A software project task deliberation committee established under Article 50 (1) of the Act (hereinafter referred to as “task deliberation committee") shall be composed of at least five but up to 10 members, including one chairperson. |
| (2) | A member of the task deliberation committee (hereinafter referred to as "committee member") shall be appointed or commissioned by the head of a State agency, etc. from among the following persons taking gender equality into consideration; In such cases, committee members who do not belong to the relevant State agency, etc. shall be a majority of the total number of the committee members: |
| 2. | A public official of Grade V or higher in an administrative agency related to software affairs or a person who is or was in a position in a public institution equivalent thereto; |
| 3. | A person who has software skills and has at least six years of work experience in the field of software technology; |
| 4. | Other persons recognized by the head of a State agency, etc., to have abundant knowledge and experience relating to software and software projects. |
| (3) | The head of a State agency, etc. may request the National IT Industry Promotion Agency to recommend persons falling under paragraph (2) 1 through 3 as candidates for committee members, if necessary for appointing or commissioning committee members. |
| (4) | Upon receipt of a request under paragraph (3), the National IT Industry Promotion Agency shall recommend candidates for committee members within seven days. |
| (5) | The chairperson of a task deliberation committee shall be elected by and from among its members. |
| (6) | The term of office of committee members commissioned under paragraph (2) shall be two years and may be consecutively renewed only once. |
| Article 46 (Operation of Task Deliberation Committee) |
| (1) | The chairperson of a task deliberation committee shall convene and preside over meetings of the task deliberation committee. |
| (2) | Meetings of a task deliberation committee shall deliberate and decide on agenda items with a majority of all incumbent members present and the consent of a majority of those present. |
| (3) | A committee member shall be excluded from deliberation and decision-making on an agenda item in any of the following cases: |
| 1. | Where the member or his or her relative has a direct interest in the agenda item at issue; |
| 2. | Where an institution or organization to which the member belongs has a direct interest in the agenda item at issue; |
| 3. | Where the member, or a corporation to which he or she belongs, is or was an agent of a party to the agenda item at issue; |
| 4. | Where the member had worked for a corporation, which is a party to the relevant agenda item, as an executive officer or employee, within the most recent three years; |
| 5. | Where the member has given any testimony, statement or advice, or conducted any research, or provided service, or conducted any appraisal or investigation regarding the relevant agenda item. |
| (4) | Where the circumstances indicate that it would be impracticable to expect fair deliberations and decisions of a member of a task deliberation committee, a party to the agenda item on which the task deliberation committee is to deliberate and decide, may file a request for a challenge to the member with the task deliberation committee; and the task deliberation committee shall determine whether to accept the request by resolution. In such cases, the committee member to whom the challenge has been made shall not participate in the decision-making process. |
| (5) | Where the committee member falls under any subparagraph of paragraph (3), which constitutes the grounds for exclusion, he or she shall voluntarily recuse himself or herself from deliberation and decision-making on the relevant agenda item. |
| Article 47 (Procedures for Finalizing and Changing Task Details) |
| (1) | Where the head of a State agency, etc. intends to finalize any of the following matters related to the implementation of software projects, he or she shall refer the details to the task deliberation committee for deliberation and resolution: |
| 1. | Detailed tasks of a software project (including results of re-assessment of the software project impact assessment under Article 43 (3) of the Act); |
| 2. | Change in task details; |
| 3. | Where a contract price or contract period is adjusted due to changes in task details, the details of such adjustment. |
| (2) | If deemed necessary for deliberation and resolution, the chairperson of the task deliberation committee may request interested persons or relevant experts to attend a meeting of the committee and hear their opinions. |
| (3) | The head of a State agency, etc., may pay allowances to interested persons and relevant experts who attend a meeting of the task deliberation committee within the budget: Provided, That this shall not apply where a committee member who belongs to the State agency, etc. attends the meeting in direct connection with affairs under his or her jurisdiction. |
| (4) | Where the head of a State agency, etc. accepts a request under the former part of Article 50 (3) of the Act, he or she shall notify the chairperson of the task deliberation committee of the intent to hold a committee meeting, without delay. |
| (5) | The head of a State agency, etc. shall notify a software business entity which has requested a meeting of the results of deliberation and decision-making and a planned action within 14 days from the date he or she receives the request under the former part of Article 50 (3) of the Act: Provided, That where there is any unavoidable reason for undergoing deliberation and decision-making process, such as where it is necessary to conduct an additional investigation of facts related to changes in the details of tasks, the deadline for notification may be extended only once, by up to 14 days in consultation with the software business entity which has requested such meeting. |
| (6) | Where the head of a State agency, etc. gives a notice of tender to implement a software project, he or she shall clarify matters relating to procedures for changing tasks, such as the provision that a software business entity may request a meeting of the task deliberation committee pursuant to Article 50 (3) of the Act. |
| (7) | Detailed matters relating to the operation of the task deliberation committee under paragraphs (1) through (5) shall be determined and publicly notified by the Minister of Science and ICT. |
| Article 48 (Restriction on Subcontract) |
| (1) | "Any project that requires new or specialized technologies prescribed by Presidential Decree" in Article 51 (2) 2 of the Act means any of the following projects: |
| (2) | Where a software business entity intends to re-subcontract a project pursuant to the proviso of Article 51 (3) of the Act, the amount of the re-subcontract shall not exceed an amount equivalent to 50/100 of the amount of the software project subcontracted to the entity. |
| (3) | "Cases ... prescribed by Presidential Decree" in Article 51 (3) 1 of the Act means cases where any technology falling under any subparagraph of paragraph (1) is necessary. |
| (4) | "Cases ... prescribed by Presidential Decree" in Article 51 (3) 2 of the Act means where technical support is unavoidable for the maintenance and management of commercial software. |
SECTION 3 Facilitating the Use of Commercial Software
| Article 49 (Designation of Institutions Conducting Commercial Software Benchmark Tests) |
| (2) | Where the Minister of Science and ICT designates an institution conducting a commercial software benchmark test under Article 55 (1) of the Act (hereinafter referred to as "institution conducting a benchmark test") or revokes the designation thereof under paragraph (4) of that Article, he or she shall publicly announce such fact. |
| (3) | Detailed matters relating to requirements for designating institutions conducting a benchmark test under paragraph (1) and procedures for designating and revoking the designation thereof under paragraph (2) shall be prescribed by Ordinance of the Ministry of Science and ICT. |
| Article 50 (Subjects of Benchmark Tests) |
| (1) | The subject of the commercial software benchmark test under Article 55 (1) of the Act (hereinafter referred to as "benchmark test") shall be a commercial software product, the test of which is deemed necessary and publicly notified by the Minister of Science and ICT: Provided, That the head of a State agency, etc. may exclude any of the following commercial software products from such benchmark test: |
| 1. | Commercial software that reflects the results of the benchmark test after the head of the relevant State agency, etc. has previously conducted such benchmark test directly or through outsourcing; |
| 2. | Commercial software that reflects the results of the benchmark test after the head of another State agency, etc. has previously conducted such benchmark test directly or through outsourcing; |
| (2) | Where a State agency, etc., or an institution conducting a benchmark test intends to conduct the test pursuant to Article 55 (1) or (2) of the Act, the Minister of Science and ICT may prepare and provide guidelines for recommendations on benchmark tests to the relevant agency or institution so it may use them for conducting benchmark tests. |
| Article 51 (Outsourcing of Benchmark Tests) |
| (1) | Where the head of a State agency, etc. intends to outsource a benchmark test to an institution conducting a benchmark test under Article 55 (1) of the Act, he or she shall request such outsourcing in writing, as prescribed by Ordinance of the Ministry of Science and ICT. |
| (2) | The institution conducting a benchmark test upon receipt of a request under paragraph (1) shall conduct the benchmark test and notify the head of the State agency, etc. of the results thereof in writing. |
| (3) | Detailed matters relating to procedures for requesting benchmark tests and notification of the results thereof under paragraphs (1) and (2) shall be prescribed by Ordinance of the Ministry of Science and ICT. |
SECTION 4 Management of Software Projects
| Article 52 (Notification of Information Such as List of All Current Contracts for Software Projects) |
| (1) | "Information prescribed by Presidential Decree, such as the list of all current contracts for software projects" in Article 56 (2) of the Act means the following information related to contracts for software projects: |
| 1. | List of all current contracts for software projects, including project names, names of contracting parties, contract dates, and contract amounts; |
| 2. | List of all current status of purchase of commercial software, including product names, names of contracting parties, contract dates, contract amounts, contract methods, and quantities purchased. |
| (2) | The head of a State agency, etc. may make notification under Article 56 (2) of the Act by disclosing information on the list of all current contracts for software projects, etc. through the Software Industry Information Total System. |
| Article 53 (Management of Performance Records of Software Business Entities) |
| (1) | Where the Minister of Science and ICT intends to require software business entities to submit any of the following data pursuant to Article 58 (1) of the Act, he or she may subdivide a project into component fields and require the software business entities to submit data for each subdivided field: |
| 1. | Data on software business entities prescribed by Ordinance of the Ministry of Science and ICT, such as the names of companies, representatives, sales amounts, and technical human resources; |
| 2. | Data on the performance of software projects conducted by software business entities, such as the names of software projects, contract periods, contract amounts, and project owners. |
| 4. | Other data the Minister of Science and ICT deems necessary to be submitted for ensuring the truth and accuracy of data submitted by software business entities. |
| (3) | Detailed matters relating to subfields of software projects and data for each field under paragraph (1) shall be prescribed by Ordinance of the Ministry of Science and ICT. |
| Article 54 (Reasons for Non-Approval for Release of Software Outputs) |
| 1. | Where software output constitutes confidentiality defined in subparagraph 1 of Article 2 of the Regulations on Security Work; |
| 2. | Other cases related to national security, which are publicly notified by the Minister of Science and ICT and the Minister of the Interior and Safety after consultation in consideration of the potential impacts of shipping out software output on national security. |
CHAPTER VI KOREA SOFTWARE FINANCIAL COOPERATIVE
| Article 55 (Procedures for Authorizing Establishment of the Korea Software Financial Cooperative) |
| (1) | To establish a Korea Software Financial Cooperative pursuant to Article 61 (1) of the Act (hereinafter referred to as the "Financial Cooperative"), at least 10 software business entities, as promoters, shall apply for its authorization to the Minister of Science and ICT after passing a resolution on the articles of incorporation at an inaugural general meeting. |
| (2) | When the Minister of Science and ICT authorizes the establishment of the Financial Cooperative under paragraph (1), he or she shall publicly announce such fact. |
| (3) | Promoters shall be responsible for affairs of the Financial Cooperative until it is established and its executive officers are appointed. |
| Article 56 (Matters to Be Included in Articles of Incorporation) |
Matters to be included in the articles of incorporation of the Financial Cooperative shall be as follows:
| 3. | Location of its office; |
| 4. | Matters relating to its projects; |
| 5. | Matters relating to its executive officers and employees; |
| 6. | Qualifications for members of the Financial Cooperative (hereinafter referred to as "cooperative members"), and admission and withdrawal thereof; |
| 7. | Matters relating to the rights and obligations of cooperative members; |
| 8. | Matters relating to the amount of one unit of investment and the method of investment; |
| 9. | Matters relating to the creation, operation, and management of fundamental property; |
| 10. | Matters relating to assets and accounting; |
| 11. | Matters relating to general meetings and the board of directors' meetings; |
| 12. | Matters relating to its dissolution and the disposal of the remaining assets; |
| 13. | Matters relating to public announcement; |
| 14. | Matters relating to amendment to the articles of incorporation. |
| Article 57 (Registration of the Financial Cooperative) |
| (1) | When the Financial Cooperative receives authorization for establishment pursuant to Article 55 (2), it shall register the following matters at the location of the main office: |
| 4. | Location of its office; |
| 5. | Year, month, and date of authorization for establishment; |
| 6. | Total amount of investment, amount of one unit of investment, and the method of investment; |
| 7. | Matters relating to restrictions on the transfer of investment securities; |
| 8. | Names, addresses, and resident registration numbers of executive officers; |
| 9. | Matters relating to restrictions on representation; |
| 10. | Matters relating to agents; |
| 11. | Methods of making public announcements. |
| (2) | Where there is any change in registered matters prescribed in the subparagraphs of paragraph (1) (excluding matters relating to the total amount of investment prescribed in subparagraph 6 of that paragraph), the Financial Cooperative shall register such change within three weeks from the date the change occurs. |
| Article 58 (Projects of the Financial Cooperative) |
| (1) | "Projects prescribed by Presidential Decree" in subparagraph 5 of Article 62 of the Act means the following projects designed to ensure the healthy development of the software industry: |
| 1. | Survey and research related to the Financial Cooperative's projects (hereinafter referred to as "mutual aid project"); |
| 2. | Projects for management consulting, diagnosis and instruction, and education and training for cooperative members; |
| 3. | Projects for providing information on receipt of orders, etc. from foreign countries regarding software and related systems |
| 4. | Projects for guaranteeing liability for damage caused by cooperative members and persons employed thereby; |
| 5. | Projects for improving the welfare of cooperative members and persons employed thereby; |
| 6. | Projects for Investing in relevant projects necessary for attaining the cooperative's purposes; |
| 7. | Operations specified in the articles of incorporation as incidental to the projects specified in subparagraphs 1 through 6. |
| (2) | The Financial Cooperative may conduct the following projects targeting software business entities that are not its members as prescribed by both the articles of incorporation and the mutual aid rules under Article 64 of the Act (hereinafter referred to as "mutual aid rules") insofar as such projects do not impede cooperative member’s use: |
| 1. | Investment of funds necessary for software development, technology improvement, and management stability under subparagraph 1 of Article 62 of the Act and loans to the invested companies; |
| 2. | Projects for management consulting, diagnosis and instruction, education and training for its members; |
| 3. | Projects for providing information on receipt of orders, etc. from foreign countries regarding software and related systems; |
| 4. | Projects for guaranteeing liability for damage caused by software business entities and their employees; |
| 5. | Projects for improving the welfare of software business entities and their employees. |
| Article 59 (Creation of Fundamental Property) |
| 1. | Investments, contributions, or deposits made by institutions and persons related to the software industry; |
| 2. | Loans to finance mutual aid projects; |
| 3. | Profits and other incomes. |
| Article 60 (Approval of Mutual Aid Rules) |
| 1. | Matters relating to cooperative members' investment money; |
| 2. | Matters relating to the Financial Cooperative's reserves, accumulated funds, and profits; |
| 3. | Matters relating to operation multiples and rates for loans and guarantees for cooperative members; |
| 4. | Matters relating to the creation and operation of fundamental property of the Financial Cooperative. |
| Article 61 (Accumulation and Management of Reserves for Losses) |
| (1) | The Financial Cooperative shall separately accumulate and manage the reserves for losses under Article 65 (1) of the Act (hereinafter referred to as "reserves") within 3/100 of the amount of loans, the amount of debt guarantee, and the amount of performance guarantee. |
| (2) | Reserves shall not be used for a purpose other than for compensation for loss incurred in operating mutual aid projects and for expenses necessary for managing the loss. |
| (3) | Detailed matters relating to accumulation and management of reserves for losses under paragraphs (1) and (2) shall be prescribed by mutual aid rules. |
| Article 62 (Investments and Investment Securities) |
| (1) | The total amount of investment of the Financial Cooperative shall be the aggregate of the face value of the units of investment made by its members. |
| (2) | The Financial Cooperative shall issue investment securities stating the names, investment shares, etc. of its members to the members who make investments, as prescribed by its articles of incorporation. |
| Article 63 (Transfer of Title of Investment Securities) |
| (1) | Where a current or former cooperative member intends to transfer his or her equity shares pursuant to Article 67 (1) of the Act, he or she shall obtain confirmation from the Financial Cooperative on the transfer of title of the relevant investment securities as prescribed by the articles of incorporation. |
| (2) | Where the Financial Cooperative acquires equity shares on any of the grounds specified in Article 68 (1) 2 and 3 of the Act, it shall dispose of such equity shares after transferring the title of the relevant investment securities to the Financial Cooperative. |
| Article 64 (Accounting of the Financial Cooperative) |
| (1) | The Financial Cooperative shall record contributions and investments among its fundamental property in the capital contribution account of the capital account and the reserve for losses in the reserve for losses account of the capital account. |
| (2) | Except as provided in paragraph (1), the Financial Cooperative shall conduct accounting according to the accounting standards of such Financial Cooperative, and matters not prescribed by the accounting standards shall be accounted for based on the Korea Financial Accounting Standards. |
| Article 65 (Matters to Be Reported by the Financial Cooperative) |
The Minister of Science and ICT may require the Financial Cooperative to report the following:
| 1. | Matters resolved at the general meeting of the Financial Cooperative or the meeting of its board of directors; |
| 2. | Matters required to understand the current status of the Financial Cooperative, such as financial conditions of its members; |
| 3. | Other important matters related to the Financial Cooperative and its members, on which reporting is deemed necessary by the Minister of Science and ICT. |
CHAPTER VII SUPPLEMENTARY PROVISIONS
| Article 66 (Entrustment of Affairs) |
| (1) | The Minister of Science and ICT may entrust the following affairs under Article 72 of the Act to a corporation or organization specified in the subparagraphs of paragraph (2): |
| 2. | Receive applications for designation as a regional industry promotion agency and examine details of the applications and whether to revoke such designation, in accordance with Article 9 (2) and (3) of the Act; |
| 3. | Receive applications for designation as a promotion facility and examine details of the applications and whether to revoke such designation, in accordance with Article 11 (2) and (6) of the Act; |
| 4. | Receive applications for designation as a promotion complex and examine details of the applications and whether to revoke such designation, in accordance with Article 12 (1) and (4) of the Act; |
| 6. | Retain and preserve and receive records of software engineers' work experience, etc. and issue a software engineer's certificate of work experience under Article 24 (1) through (3) of the Act; |
| 7. | Support the implementation of projects for promoting the field of software development security under the subparagraphs of Article 29 of the Act; |
| 9. | Prepare a standard contract for a software project and recommend the use of such standard contract under Article 38 (4) of the Act; |
| 10. | Receive and notify reports of disadvantageous treatment, etc. given by project owners under Article 39 (2) of the Act; and receive and notify reports of disadvantageous treatment, etc. given by contractors to subcontractors and by subcontractors to re-subcontractors under Article 39 (3) of the Act; |
| 11. | Receive and disclose information on demand for the purchase of commercial software and plans for the implementation of software projects under Article 41 (1) and (2) of the Act; |
| 12. | Formulate and implement measures of technical support for project owners; formulate and implement training courses, such as technical training on placing an order; request data from software business entities, etc.; and receive data submitted by such business entities, all of which are affairs under the jurisdiction of the Minister of Science and ICT among those under Article 42 (1) through (3) of the Act; |
| 14. | Facilitate the distribution of commercial software; assist in determining an appropriate price therefor; and comprehensively manage product information relating to commercial software under Article 53 (2) and (3) of the Act; |
| 15. | Collect and review data to check whether the software projects under Article 57 (1) through (4) of the Act have been implemented in compliance with applicable statutes or regulations (such data shall be limited to those disclosed to the general public); assist in sending documents recommending improvement on violations of any statute or regulation; receive results of the action taken and notified by the head of a State agency, etc. following the recommendation for improvement; and request and receive data relating to the software projects; |
| 16. | Request data relating to technical human resources, project performance records, etc. of software business entities and receive the data submitted; retain and preserve the data on technical human resources and project performance records of software business entities; request the head of a State agency, etc. to submit the data and receive the data submitted, under Article 58 (1) through (3) of the Act; |
| 17. | Provide regional industry promotion agencies with support necessary for performing entrusted affairs and receive a performance report for the previous year and an implementation plan for the relevant year submitted by such regional industry promotion agencies under Article 7 (5) and (6); |
| 18. | Provide support for the operation of the Council under Article 8 (3); |
| 19. | Provide technical support for software project impact assessment to the head of a State agency, etc. under Article 35 (5). |
| (2) | Corporations or organizations eligible to be entrusted with the affairs under paragraph (1) shall be as follows: |
| 1. | The National IT Industry Promotion Agency; |
| 2. | The Korea Software Industry Association; |
| 3. | Other corporations or organizations deemed by the Minister of Science and ICT to have expertise in affairs relating to the promotion of software. |
| (3) | Where the Minister of Science and ICT entrusts affairs pursuant to paragraph (1), he or she shall publicly notify a corporation or organization entrusted with the affairs and the details of said affairs. |
| Article 67 (Restitution of Contributions) |
"Corporation or organization prescribed by Presidential Decree" in Article 74 (5) of the Act means the following corporations or organizations: | 1. | Contributions from the Ministry of Science and ICT: The National IT Industry Promotion Agency; |
| 2. | Other contributions from central administrative agencies and local governments: Corporations or organizations deemed by the head of the relevant agency to have expertise in the restitution of the contributions. |
| Article 68 (Management of Personally Identifiable Information) |
| Article 69 (Re-Examination of Regulation) |
The Minister of Science and ICT shall examine the appropriateness of the following matters every three years, counting from December, 10, 2020 (referring to the period that ends on the day before December, 10, 2020 of every third year) and shall take measures, such as making improvements:
| 1. | Requirements for designation of promotion facilities under Article 9 (1); |
| 2. | Requirements for designation of promotion complexes under Article 12 (1); |
| 3. | Contents of a contract for a software project under Article 30; |
| 4. | Requirements for designation of institutions conducting benchmark tests under Article 49 (1); |
| 5. | Matters subject to approval under mutual aid rules under Article 60; |
| 6. | Accumulation and management of reserves for losses under Article 61. |
ADDENDA <Presidential Decree No. 31221, Dec. 8, 2020>
Article 1 (Enforcement Date)
This Decree shall enter into force on December 10, 2020.
Article 2 (Applicability to Formulation of Implementation Plans)
The amended provisions of Article 3 (2) shall begin to apply where a master plan is formulated after this Decree enters into force. Article 3 (Applicability to Designation of Software Promotion Facilities)
Article 4 (Applicability to Designation of Software Promotion Complexes)
Article 5 (Transitional Measures concerning Software Industry Information Total System)
Article 6 (Transitional Measures concerning Members of Deliberative Committee on Task Change)
| (1) | Members of the Deliberative Committee on Task Change commissioned pursuant to the previous provisions as of March 31, 2020 on which the Enforcement Decree of the Software Industry Promotion Act (Presidential Decree No. 30551) enters into force shall be deemed members of the Deliberative Committee on Task Change commissioned pursuant to the amended provisions of Article 14-2 (2) 3 of that Decree until their terms of office expire. |
| (3) | The term of office of a member deemed appointed pursuant to paragraph (2) shall be as prescribed in the amended provisions of Article 45 (6), and the commencement date of the term shall be the date this Decree enters into force. |
| (4) | The limitation on reappointment as provided in the amended provisions of Article 45 (6) shall also apply to the members deemed commissioned as provided in paragraph (2), and the number of reappointment shall be calculated by deeming a term of office beginning on the enforcement date of this Decree to be the first term of office. |
| (5) | Where the Deliberative Committee on Task Change which fails to meet the amended provisions of the latter part of Article 45 (2), among the previous deliberative committees on task change deemed the task deliberation committees pursuant to Article 11 of the Addenda to the Act as at the time this Decree enters into force, intends to appoint or commission its members (excluding reappointment), it shall appoint or commission members who do not belong to the State agency, etc. until the requirements under the same amended provisions are met. |
Article 7 (Transitional Measures concerning the Korea Software Financial Cooperative)
Article 8 Omitted.
Article 9 (Relationship to Other Statutes or Regulations)
References in other statutes or regulations to the provisions of the previous Enforcement Decree of the Software Industry Promotion Act as at the time this Decree enters into force shall be deemed references to the corresponding provisions of this Decree in lieu of the previous provisions, if such corresponding provisions exist in this Decree.
ADDENDA <Presidential Decree No. 32196, Dec. 9, 2021>
Article 1 (Enforcement Date)
This Decree shall enter into force on December. 9, 2021.
Articles 2 and 3 Omitted.