CHAPTER I GENERAL PROVISIONS
By prescribing matters necessary for the establishment of a foundation to activate distributed energy and for the expansion of distributed energy, the purpose of this Act is to contribute to the development of the national economy by activating distributed energy and increasing the stability of energy supply through the utilization of energy-related advanced technologies.
The terms used in this Act shall be defined as follows:
| 1. | The term "distributed energy" means energy supplied or produced in a space, area, or neighboring area where energy is used, which does not exceed a certain scale prescribed by Presidential Decree; |
| 2. | The term "distributed energy business" means any of the following business to supply distributed energy: |
| (c) | Small and medium-sized nuclear power generation business: Electricity generation business using nuclear reactors defined in subparagraph 8 of Article 2 of the Nuclear Safety Act, which meets the scale and requirements prescribed by Presidential Decree; |
| (d) | Integrated power plant business for distributed energy: Business utilizing distributed energy resources among integrated power plant business under subparagraph 12-10 of Article 2 of the Electric Utility Act; |
| (e) | Renewable energy business: Business of supplying energy prescribed by Presidential Decree, among new energy defined in subparagraph 1 of Article 2 of the Act on the Promotion of the Development, Use and Diffusion of New and Renewable Energy and renewable energy defined in subparagraph 2 of that Article; |
| (h) | Stored electricity sales business: Business of storing electricity in an electric storage device and selling electricity when needed; |
| (i) | Renewable energy electricity supply business: Renewable energy electricity supply business defined in subparagraph 12-8 of Article 2 of the Electricity Business Act; |
| (k) | Demand management business: Business in which a demand management business entity under Article 31 (5) of the Electric Utility Act replaces generators to generate power and adjust electricity supply and demand by using demand response resources; |
| 3. | The term "distributed energy business entity" means any of the following persons who engage in distributed energy business: |
| (a) | A person who has registered his or her distributed energy business under Article 8; |
| (b) | A person who is deemed to have filed for registration of distributed energy business pursuant to the proviso, with the exception of the subparagraphs, of Article 8 (1); |
| 7. | The term "power transmission lines" means transmission lines, transformers, opening and closing devices, and other electric installations owned and managed by electric transmission business entities; |
| 8. | The term "distribution networks" means distribution lines, transformers, switchgears and other electrical equipment owned and managed by electric distribution business entities; |
| 9. | The term "power system impact assessments" means the preparation of plans to avoid, remove, or reduce any harmful impacts on the stability of electricity supply through the investigation, prediction, and evaluation of the impacts on the electric power systems defined in subparagraph 14 of Article 2 of the Electric Utility Act (hereinafter referred to as "electric power system") caused by the installation of facilities using at least a certain scale of electricity, the construction, etc. of multi-family housing complexes; |
| 10. | The term "distributed energy specialized area" means an area designated and publicly notified under Article 36; provided, where part of a district electricity supply zone (referring to a specific zone in which a district electric business entity defined in subparagraph 12 of Article 2 of the Electric Utility Act supplies electricity; hereafter the same shall apply in this subparagraph) is included in a distributed energy specialized area, the entire district electricity supply zone shall be included. |
| Article 3 (Responsibilities of the State) |
| (1) | The State and local governments shall formulate and promote policies necessary for the activation of distributed energy. |
| (2) | A distributed energy business entity shall endeavor to promote the development and commercialization of technologies necessary for the activation of distributed energy and to ensure the stable supply thereof. |
| Article 4 (Relationship to Other Statutes) |
CHAPTER II MASTER PLAN FOR ACTIVATION OF DISTRIBUTED ENERGY
| Article 5 (Master Plan to Activate Distributed Energy) |
| (1) | In order to efficiently achieve the purpose of this Act, the Minister of Trade, Industry and Energy shall formulate and implement a 5-year master plan to activate distributed energy (hereinafter referred to as "master plan") and an annual implementation plan (hereinafter referred to as "implementation plan") with a commitment period of at least 10 years. |
| (2) | The master plan shall include the matters falling under each of the following subparagraphs: |
| 1. | Mid- and long-term policy objectives and directions for the activation of distributed energy; |
| 2. | Establishment and maintenance of systems for the activation of distributed energy; |
| 3. | Support for the activation of distributed energy; |
| 4. | Promotion plans for the activation of distributed energy; |
| 5. | Amount of diffusion of distributed energy; |
| 6. | Establishment of systems for the production and consumption of distributed energy; |
| 7. | Plans for financing the expansion of investments necessary for the activation of distributed energy; |
| 8. | Systematic promotion for the activation of distributed energy; |
| 9. | Improvement of social acceptability for the activation of distributed energy; |
| 10. | Establishment of a foundation for the further activation of distributed energy; |
| 11. | Other important matters determined by the Minister of Trade, Industry and Energy with regard to the further activation of distributed energy. |
| (3) | Where the Minister of Trade, Industry and Energy intends to formulate or change a master plan, the Minister shall consult with the heads of the relevant central administrative agencies and report it to the State Council after deliberation and resolution by the Energy Committee established under Article 9 of the Energy Act (hereinafter referred to as the "Energy Committee"). |
| (4) | If necessary for formulating a master plan and an implementation plan, the Minister of Trade, Industry and Energy may request that the heads of the relevant central administrative agencies and the heads of the relevant organizations or institutions submit data. Upon receipt of such request, the heads of the relevant central administrative agencies or the heads of the relevant organizations or institutions shall comply therewith, unless there is a compelling reason not to do so. |
| (5) | Except as provided in paragraphs (1) through (4), matters necessary for formulating and implementing a master plan and an implementation plan shall be prescribed by Presidential Decree. |
| Article 6 (Fact-Finding Survey on Distributed Energy) |
| (1) | The Minister of Trade, Industry and Energy may conduct a fact-finding survey necessary to identify the level of activation of distributed energy in consideration of the following matters: |
| 1. | Current status and prospects of distributed energy; |
| 2. | Current status of technologies related to the further activation of distributed energy; |
| 3. | Current status necessary for the improvement of other policies and systems aiming at the further activation of distributed energy, recognized by the Minister of Trade, Industry and Energy. |
| (2) | The Minister of Trade, Industry and Energy shall formulate a master plan by reflecting the results of a fact-finding survey under paragraph (1). |
| (3) | Matters necessary for the timing and methods of procedures, etc. for a fact-finding survey under paragraph (1) shall be prescribed by Presidential Decree. |
| Article 7 (Recommendation for Improvement of Statutes or Regulations Related to Development and Activation of Distributed Energy) |
| (1) | The Minister of Trade, Industry and Energy may provide his or her opinions or recommendations to the heads of the relevant central administrative agencies in charge of the relevant statutes or regulations to make the reasonable improvement of the statutes or regulations related to the development and further activation of distributed energy. |
| (2) | The heads of the relevant central administrative agencies who have received opinions or recommendations on the improvement of statutes or regulations under paragraph (1) shall respect the opinions or recommendations of the Minister of Trade, Industry and Energy and endeavor to improve the relevant statutes or regulations, unless there is a compelling reason not to do so. |
CHAPTER III REGISTRATION OF DISTRIBUTED ENERGY BUSINESS
| Article 8 (Registration of Distributed Energy Business) |
| (1) | A person who intends to engage in distributed energy business shall file for registration of each type of distributed energy business with the Minister of Trade, Industry and Energy; provided, he or she shall be deemed to have filed for registration in any of the following cases: |
| 4. | A business entity who supplies distributed energy among wind power generation business entities who have obtained permission from the Jeju Special Self-Governing Province Governor under Article 303 of the Special Act on the Establishment of Jeju Special Self-Governing Province and the Development of Free International City. |
| (2) | A person who intends to file for registration of distributed energy business under paragraph (1) shall file an application with the Minister of Trade, Industry and Energy, as prescribed by Ministerial Decree of Trade, Industry and Energy. |
| (3) | The Minister of Trade, Industry and Energy shall accept an application for registration under paragraph (2), unless such application falls under any of the following cases: |
| 1. | Where the applicant falls under the grounds for disqualification under Article 11; |
| 2. | Where the applicant fails to have capital, human resources, facilities, etc. prescribed by Presidential Decree. |
| (4) | Where a distributed energy business entity intends to change any important matter prescribed by Presidential Decree, such as the trade name and representative, among the matters registered under paragraph (1), he or she shall file for registration of change with the Minister of Trade, Industry and Energy. |
| (5) | Where a distributed energy business entity who has filed for registration under paragraph (1) or for registration of change under paragraph (4) files a report on business closure with the head of the competent tax office pursuant to Article 8 of the Value-Added Tax Act or where the head of the competent tax office cancels the business registration of the distributed energy business entity, the Minister of Trade, Industry and Energy may cancel the registration ex officio. |
| (6) | The procedures for and methods of registration of distributed energy business and registration of change thereof under paragraphs (1) and (4) and other necessary matters shall be prescribed by Ministerial Decree of Trade, Industry and Energy. |
| Article 9 (Business Succession) |
| (1) | A person who falls under any of the following subparagraphs shall succeed to the status of the distributed energy business entity: |
| 1. | Where a distributed energy business entity has transferred all of the distributed energy business, the transferee; |
| 2. | Where a distributed energy business entity other than a corporation dies, his or her successor; |
| 3. | Where a distributed energy business entity which is a corporation merges with another corporation, the corporation surviving the merger or newly incorporated after the merger; |
| 4. | Where a distributed energy business entity, which is a corporation, divides a corporation, a corporation established by division. |
| (2) | In the case of the succession of the status of a distributed energy business entity under paragraph (1), the effect of an administrative disposition imposed on the previous distributed energy business entity shall be succeeded to by the person who has succeeded to the status of the distributed energy business entity, and where any disposition procedures are underway, such procedures may be taken against the person who has succeeded to the status of the distributed energy business entity. |
| (3) | Article 11 shall apply mutatis mutandis to the grounds for disqualification of a successor under paragraph (1). |
| (4) | A person who succeeds to the status of a distributed energy business entity pursuant to paragraph (1) shall report such fact to the Minister of Trade, Industry and Energy within 30 days from the date of succession, as prescribed by Ministerial Decree of Trade, Industry and Energy. |
| Article 10 (Revocation of Registration) |
| (1) | Where a distributed energy business entity registered under Article 8 (1) falls under any of the following cases, the Minister of Trade, Industry and Energy may revoke the registration or order him or her to suspend the business for a specified period not exceeding 6 months; provided, in cases falling under subparagraph 1 or 4, the Minister of Trade, Industry and Energy shall revoke the registration: |
| 1. | Where he or she has filed for registration by fraud or other improper means; |
| 2. | Where he or she fails to apply to register a change to important matters, in violation of Article 8 (4); |
| 4. | Where he or she falls under the grounds for disqualification under Article 11; |
| 5. | Where he or she has received subsidies under this Act by fraud or other improper means, or has used the subsidized funds for other purposes. |
| (2) | Where an heir who has succeeded to the status of a distributed energy business entity falls under paragraph (1) 3 or 4, paragraph (1) shall not apply for 6 months from the date on which such cause occurs. |
| (3) | Where a distributed energy business entity falls under paragraph (1) 2 or 5 and the suspension of business is likely to cause serious inconvenience to distributed energy users, etc. or to harm public interest, the Minister of Trade, Industry and Energy may impose a penalty surcharge not exceeding 50 million won in lieu of an order to suspend business, as prescribed by Presidential Decree. |
| (4) | The disposition standards for each violation under paragraph (1) and the standards for the imposition of a penalty surcharge under paragraph (3) shall be prescribed by Presidential Decree. |
| (5) | Where a person liable to pay a penalty surcharge under paragraph (3) fails to pay it by the payment deadline, the Minister of Trade, Industry and Energy may collect it in the same manner as national taxes are compulsorily collected. |
| Article 11 (Grounds for Disqualification) |
Any of the following persons shall be prohibited from filing for registration of distributed energy business:
| 1. | An incompetent person under adult guardianship; |
| 2. | A person who has been declared bankrupt and has not been reinstated; |
| 3. | A person who has committed any crime related to electricity in violation of Articles 172-2, 173, 173-2 (excluding those who violated Article 172 (1)), 174 (limited to an attempt to commit any crime in violation of Articles 172-2 (1) and 173 (1) and (2)), and 175 (limited to those who premeditated or conspired to commit any crime in violation of Articles 172-2 (1) and 173 (1) and (2)) of the Criminal Act; or who has violated this Act, and for whom 2 years have not yet passed since his or her imprisonment without labor or heavier punishment was completely executed (including where it is deemed to have been executed) or exempted; |
| 4. | A person who is under suspension of the execution of his or her imprisonment without labor or heavier punishment declared by a court for committing a crime prescribed in subparagraph 3; |
| 5. | A person for whom 2 years have not passed since the registration of his or her distributed energy business was revoked under Article 10 (1); |
| 6. | A corporation, the representative of which falls under any of subparagraphs 1 through 5. |
| Article 12 (Orders to Improve Business Methods) |
In the case of any of the following subparagraphs, the Minister of Trade, Industry and Energy may order a distributed energy business entity to improve his or her business methods, etc.:
| 1. | Where a distributed energy business entity fails to promptly make necessary repairs or take other measures to remove impediments to the supply of distributed energy resulting from an accident; |
| 2. | Where it is deemed that the business method, etc. of a distributed energy business entity is detrimental to the benefits of distributed energy users, in violation of this Act. |
CHAPTER IV MANDATORY INSTALLATION FOR DISTRIBUTED ENERGY
| Article 13 (Allocation of Distributed Energy Use) |
| (1) | If deemed necessary for the activation of distributed energy and the stabilization of energy supply, the Minister of Trade, Industry and Energy may require any of the following persons prescribed by Presidential Decree (hereinafter referred to as "mandatory installer") to submit a plan on the installation of distributed energy facilities before undertaking the relevant project or installing facilities in order to encourage the use of distributed energy in excess of a certain percentage of energy consumption. In such cases, the Minister of Trade, Industry and Energy may determine and publicly notify an area for which a plan on the installation of distributed energy facilities is required to be submitted (hereafter referred to as "area subject to mandatory installation" in this Article): |
| 1. | The owner of a building defined in subparagraph 2 of Article 2 of the Building Act, which is newly constructed or substantially repaired, the energy consumption of which exceeds the scale prescribed by Presidential Decree; |
| 2. | Any of the following persons: |
| (c) | An implementer of an innovation city development project under Article 10 of the Special Act on the Construction and Development of Innovation Cities; |
| (f) | A manager of a high-tech medical complex defined in subparagraph 1 of Article 2 of the Special Act on the Promotion of High-Tech Medical Complexes; |
| (g) | A manager of an innovation city defined in subparagraph 3 of Article 2 of the Special Act on the Construction and Development of Innovation Cities; |
| (i) | A manager of an area, district, etc. which requires the use of distributed energy to promote the diffusion of distributed energy. |
| (2) | The Minister of Trade, Industry and Energy shall determine the capacity of distributed energy facilities to be installed by a mandatory installer (hereinafter referred to as "capacity of mandatory installation") and areas subject to mandatory installation by region and by year, as prescribed by Presidential Decree. |
| (3) | The Minister of Trade, Industry and Energy shall take into account the following matters, when determining the capacity of mandatory installation: |
| 1. | A master plan and an implementation plan; |
| 2. | The current status of installation of distributed energy-related facilities and the amount of energy used by a mandatory installer; |
| 3. | The level of suitability of facilities related to distributed energy; |
| 4. | The imposition of an obligation in relation to the installation of distributed energy-related facilities under statutes other than this Act; |
| 5. | Other matters prescribed by Ministerial Decree of Trade, Industry and Energy. |
| (4) | A mandatory installer shall submit the results of calculating the capacity of mandatory installation to the Minister of Trade, Industry and Energy, as prescribed by Ministerial Decree of Trade, Industry and Energy. |
| (5) | The Minister of Trade, Industry and Energy may examine the results of calculating the capacity of mandatory installation submitted under paragraph (4), and where it is deemed that the details thereof are inappropriate for meeting the capacity of mandatory installation or that the efforts to comply with mandates to install distributed energy facilities are lacking, the Minister may request that the mandatory installer adjust or supplement the results of calculating the capacity of mandatory installation. In such cases, upon receipt of a request for adjustment or supplementation, the mandatory installer shall comply therewith, unless there is good cause. |
| (6) | Where the Minister of Trade, Industry and Energy determines the capacity of mandatory installation under paragraph (2), the Minister may request that the relevant administrative agencies, public institutions, etc. provide necessary data. |
| (7) | The standards for examining the results of calculating the capacity of mandatory installation under paragraph (5), the methods of examination, and other necessary matters shall be prescribed by Presidential Decree. |
| (1) | A mandatory installer who has an objection to the results of calculating the capacity of mandatory installation for which a request for adjustment or supplementation is made under Article 13 (5) may file an objection in writing with the Minister of Trade, Industry and Energy within 30 days from the date of receipt of such request. |
| (2) | The Minister of Trade, Industry and Energy shall make a decision on the objection within 30 days from the date of receipt of the objection, and shall notify the applicant of the result in writing without delay; provided, where it is impossible to make the decision within 30 days due to any unavoidable cause, the Minister may extend the period by up to 30 days, and shall notify the applicant of the grounds for such extension in writing. |
| (3) | Matters necessary for the procedures for filing an objection under paragraph (1) and the notification of a decision under paragraph (2) shall be prescribed by Presidential Decree. |
| Article 15 (Imposition and Collection of Penalty Surcharge) |
| (1) | The Minister of Trade, Industry and Energy may impose and collect a penalty surcharge not exceeding the capacity calculated by multiplying the shortfall by 150/100 of the unit price for installation of distributed energy facilities on a mandatory installer who fails to meet the capacity of mandatory installation. |
| (2) | Necessary matters, such as the methods and standards for calculating a penalty surcharge under paragraph (1), shall be prescribed by Presidential Decree. |
| (3) | Where a person liable to pay a penalty surcharge under paragraph (1) fails to pay it by the payment deadline, the Minister of Trade, Industry and Energy shall collect additional charges. |
| (5) | Penalty surcharges under paragraph (1) and additional surcharges under paragraph (3) shall become the revenue of the Electric Power Industry Basis Fund under Article 48 of the Electric Utility Act. |
| (6) | Where a person liable to pay a penalty surcharge under paragraph (1) and an additional charge under paragraph (3) fails to pay it by the payment deadline, the Minister of Trade, Industry and Energy shall collect it in the same manner as national taxes are compulsorily collected. |
CHAPTER V MANAGEMENT AND SUPERVISION OF DISTRIBUTION NETWORKS
| Article 16 (Obligation of Electric Distribution Business Entity to Install and Manage Appropriate Facilities) |
| (1) | An electric distribution business entity shall install and manage facilities meeting the standards determined and publicly notified by the Minister of Trade, Industry and Energy so that distributed energy business entities connected to distribution networks can smoothly supply electricity through the distribution networks in response to changes in the demand and supply of electricity. |
| (2) | An electric distribution business entity shall disclose a policy on the management of distribution networks stating the objectives, scope, conditions, procedures, methods, etc., as prescribed by Presidential Decree, and shall notify the relevant electric distributed energy business entity of the facts, impacts, etc. of measures for the management of distribution networks, if any; provided, where it is impracticable to notify the relevant electric distributed energy business entity of such facts, impacts, etc. for any unavoidable reason, official notice may be substituted for such notification. |
| (3) | An electric distribution business entity shall not make unreasonable discrimination in providing and blocking access to distribution networks based on the types of distributed energy, their providers, etc.; provided, this shall not apply where it is deemed necessary to reasonably cut the supply of power. |
| (4) | An electric distribution business entity may block access to distribution networks in any of the following cases: |
| 1. | Where necessary for increasing the security and stability of distribution networks; |
| 2. | Where necessary for protecting the interests of electricity generation business entities, such as multiple distributed energy business entities, or electricity consumers from temporary overload and congestion of distribution networks caused by construction, maintenance, operation, etc. of electrical facilities; |
| 3. | Where a State agency makes a request under statutes or regulations or where necessary for the enforcement of other statutes; |
| 4. | Where the Korea Power Exchange under Article 35 of the Electric Utility Act (hereinafter referred to as the "Electric Power Exchange") or an electric transmission business entity makes a request to ensure the security and stability of transmission lines or to resolve congestion in transmission lines caused by the construction, maintenance, repair, and operation of an electric installation of the transmission lines. |
| (5) | Details in cases where access to distribution networks can be blocked under paragraph (4) 1 and 2 shall be prescribed by Ministerial Decree of Trade, Industry and Energy. |
| Article 17 (Obligation for Stable Operation of Distribution Networks) |
| (1) | An electric distribution business entity shall operate the electric power system in a stable manner through power output prediction, monitoring, evaluation, etc. of electric power generated from a distributed energy business within a project area connected to distribution networks. |
| (2) | A distributed energy business entity shall provide an electric distribution business entity with information on distributed energy prescribed by Presidential Decree, such as data on characteristics of power generation facilities, output information, prediction data, etc. necessary for the output prediction, monitoring, evaluation, etc. of distributed energy. |
| (3) | An electric distribution business entity shall provide a distributed energy business entity with information prescribed by Presidential Decree, such as information on output control of and access to distributed energy. |
| (4) | In order to provide information on distributed energy under paragraph (2), a distributed energy business entity shall install facilities equipped with control and communication functions. |
| (5) | An electric distribution business entity shall share information necessary for the stable operation of the electric power systems with the Electric Power Exchange and establish a cooperation system. |
| (6) | Matters necessary for the stable operation of the electric power systems under paragraph (1) and the establishment of information sharing and cooperation systems under paragraph (5) shall be prescribed by Ministerial Decree of Trade, Industry and Energy. |
| Article 18 (Submission of Plans for Expansion and Operation of Distribution Networks) |
| (1) | An electric distribution business entity shall conduct a fact-finding survey on distributed energy to cover matters prescribed by Presidential Decree, such as the types and scale of distributed energy business the facilities of which are installed or operated within an electric distribution business area, and shall submit to the Minister of Trade, Industry and Energy a plan to expand and operate distribution networks necessary for accommodating distributed energy in the relevant area. In such cases, the Minister of Trade, Industry and Energy may request changes in the plan for expanding and operating distribution networks, in consideration of the characteristics of the distributed energy linked to the relevant distribution networks and the current status of the activation of distributed energy. |
| (2) | Where an electric distribution business entity fails to implement a plan to expand and operate a distribution network under paragraph (1), the Minister of Trade, Industry and Energy may request that the electric distribution business entity implement the plan within a specified period. Upon receipt of such request, the electric distribution business entity shall comply therewith, unless compelling reasons prescribed by Ministerial Decree of Trade, Industry and Energy exist. |
| (3) | The Minister of Trade, Industry and Energy may impose a penalty surcharge not exceeding 1 billion won if an electric distribution business entity fails to comply with a request for the implementation of a plan to expand and operate distribution networks under paragraph (2) without good cause. |
| (4) | Matters necessary for conducting a fact-finding survey on distributed energy under paragraph (1), submitting a plan to expand distributed networks, and submitting an operation plan, etc. shall be prescribed by Ministerial Decree of Trade, Industry and Energy. |
| (5) | Matters necessary for the standards, procedures, etc. for the imposition of penalty surcharges under paragraph (3) shall be prescribed by Presidential Decree. |
| Article 19 (Request for Submission of Data) |
If deemed necessary for the stable management of distribution networks, the Minister of Trade, Industry and Energy may request that an electric distribution business entity submit a report and data on the current status or operation of electric distribution facilities, and that the relevant persons appear and make statements.
| Article 20 (Corrective Orders) |
Where an electric distribution business entity falls under any of the following cases, the Minister of Trade, Industry and Energy may issue a corrective order:
| 1. | Where he or she violates this Act or any provision, order, or instruction under this Act; |
| 2. | Where he or she falsely prepares or neglects to submit data requested by the Minister of Trade, Industry and Energy under this Act; |
| 3. | Where he or she refuses, interferes with, or evades the supervision of the Minister of Trade, Industry and Energy over the operation of distribution networks pursuant to this Act. |
| Article 21 (Penalty Surcharge) |
| (1) | Where an electric distribution business entity or a distributed energy business entity engages in electric distribution business or distributed energy business by unlawful or improper means in violation of Article 16 or 17, the Minister of Trade, Industry and Energy may impose a penalty surcharge not exceeding the amount calculated by multiplying the sales of the electric distribution business entity or the distributed energy business entity by 3/100; provided, in cases prescribed by Presidential Decree where there is no sales amount or where it is impracticable to calculate the sales, the Minister may impose and collect a penalty surcharge not exceeding 1 billion won. |
| (2) | Matters necessary for the methods of calculating sales under paragraph (1), the standards, procedures, etc. for imposing penalty surcharges shall be prescribed by Presidential Decree. |
| Article 22 (Distribution Supervision) |
In order to activate distributed energy, the Minister of Trade, Industry and Energy shall supervise the affairs of electric distribution business entities related to the following matters:
| 1. | Expansion of distribution facilities necessary for the activation of distributed energy; |
| 2. | Fair operation of distribution networks; |
| 3. | Establishment of standards for the fair operation of distribution networks; |
| 4. | Mid- to long-term planning and performance analysis of distribution business; |
| 5. | Projects for the establishment of a foundation for distributed energy in distribution networks. |
CHAPTER VI POWER SYSTEM IMPACT ASSESSMENTS
| Article 23 (Subjects of Power System Impact Assessments) |
| (1) | A business entity who intends to use electricity exceeding a certain amount prescribed by Presidential Decree (hereinafter referred to as "business entity subject to power system impact assessments") in an area subject to power system impact assessments designated and publicly notified by the Minister of Trade, Industry and Energy, as prescribed by Presidential Decree, shall conduct power system impact assessments; provided, any of the following projects may be exempted from the power system impact assessments: |
| 2. | Projects on which the Minister of National Defense has consulted with the Minister of Trade, Industry and Energy as deemed necessary for protecting military secrets or urgently carrying out military operations; |
| 3. | Projects on which the Director of the National Intelligence Service has consulted with the Minister of Trade, Industry and Energy, as deemed necessary for national security; |
| 4. | Other projects prescribed by Presidential Decree as necessary to attract high-tech industries, etc. |
| (2) | When conducting power system impact assessments under paragraph (1), a business entity subject to power system impact assessments shall evaluate the smooth flow of electricity, quality maintenance, the stable supply of power, impacts on the use of power, etc. |
| (3) | Detailed standards for power system impact assessments and other necessary matters shall be prescribed by Presidential Decree. |
| Article 24 (Submission and Examination of Statement of Power System Impact Assessments) |
| (1) | Where a business entity subject to power system impact assessments is required to obtain approval, authorization, permission, designation, etc. (hereinafter referred to as "approval, etc.") for a project subject to power system impact assessments or a plan of such project under Article 23 (1) (hereinafter referred to as "project plan, etc."), he or she shall submit the written results of power system impact assessments (hereinafter referred to as "statement of power system impact assessments") to the Minister of Trade, Industry and Energy before applying for such approval, etc. by the deadline prescribed by Presidential Decree. |
| (2) | Where a statement of power system impact assessments fails to meet the detailed standards under Article 23 (3), the Minister of Trade, Industry and Energy may require its supplementation. |
| (3) | If necessary for examining the statement of power impact assessments, the Minister of Trade, Industry and Energy may hear the opinions of the relevant specialized institutions or experts, or request that the heads of institutions prescribed by Presidential Decree, with expertise in the field of electric power systems, vicariously examine the statement, dispatch their experts or provide other necessary cooperation. |
| (4) | Where the Minister of Trade, Industry and Energy examines a statement of power system impact assessments submitted under paragraph (1), the Minister shall undergo deliberation by the Electric Policy Council established under Article 47-2 of the Electric Utility Act. |
| (5) | Where the examination of a statement of power system impact assessments shows any of the following matters (hereinafter referred to as "improvement requirements, etc."), the Minister of Trade, Industry and Energy shall notify a business entity subject to power system impact assessments accordingly, as prescribed by Ministerial Decree of Trade, Industry and Energy: |
| 1. | Matters requiring any improvement in the statement of power system impact assessments; |
| 2. | Matters requiring any adjustment or supplementation in the project plan, etc.; |
| 3. | Other measures necessary for minimizing power system impacts resulting from the implementation of the relevant projects. |
| (6) | The notification under paragraph (5) shall be given within 3 months from the date of receipt of the statement of power system impact assessments. |
| (1) | Where a business entity subject to power system impact assessments has an objection to improvement requirements, etc. notified under Article 24 (5), he or she may file an objection with the Minister of Trade, Industry and Energy in accordance with the procedures prescribed by Presidential Decree. |
| (2) | Upon receipt of an objection filed under paragraph (1), the Minister of Trade, Industry and Energy shall examine the validity of the objection in accordance with the procedures prescribed by Presidential Decree and notify the applicant of the results. |
| Article 26 (Reflection and Verification of Improvement Requirements) |
| (1) | Where a business entity subject to power system impact assessments is notified of improvement requirements, etc. under Article 24 (5), he or she shall submit a project plan, etc. reflecting the details thereof to the Minister of Trade, Industry and Energy. |
| (2) | The Minister of Trade, Industry and Energy shall verify whether improvement requirements, etc. are reflected in the project plan, etc. submitted under paragraph (1). |
| Article 27 (Change of Statement of Power System Impact Assessments) |
| (1) | Where a business entity subject to power system impact assessments, who has been notified of improvement requirements, etc. fails to commence a project within the period prescribed by Presidential Decree or where it becomes inappropriate to implement a project plan, etc. in accordance with the improvement requirements, etc. due to the occurrence of any cause prescribed by Presidential Decree, the business entity shall change the details of the report on the power system impact assessments related to the relevant improvement requirements, etc. and submit it to the Minister of Trade, Industry and Energy. |
| (2) | Articles 24 through 26 shall apply mutatis mutandis to the change of a statement of power system impact assessments under paragraph (1). |
| Article 28 (Implementation of Power System Impact Assessments) |
| (1) | When implementing a project subject to power system impact assessments under Article 23 (1) (hereinafter referred to as "project subject to assessments"), a business entity subject to power system impact assessments shall comply with the mandates (hereinafter referred to as "mandates") reflected in the relevant project plan, etc. following the power system impact assessments. |
| (2) | In the case of change of a business entity subject to power system impact assessments, the obligations of the business entity under paragraph (1) shall be succeeded to by the new business entity subject to power system impact assessments. In such cases, the succeeding business entity subject to power system impact assessments shall notify the Minister of Trade, Industry and Energy of the details of succession, etc., as prescribed by Ministerial Decree of Trade, Industry and Energy. |
| Article 29 (Verification of Compliance of Mandates) |
| (1) | The Minister of Trade, Industry and Energy shall verify whether a business entity subject to power system impact assessments has complied with mandates. |
| (2) | The Minister of Trade, Industry and Energy may require a business entity subject to power system impact assessments to submit data necessary for verifying the compliance of mandates (hereafter in this Article referred to as "data for verifying the compliance of mandates") under paragraph (1) or may authorize public officials under his or her jurisdiction to enter the relevant place of business to conduct investigation and verification. Upon receipt of a request to submit data for verifying the compliance of mandates, the business entity subject to power system impact assessments shall comply therewith, unless there is a compelling reason not to do so. |
| (3) | The Minister of Trade, Industry and Energy who conducts investigation and verification under paragraph (2) shall notify a person under investigation of a plan on such investigation, stating its date, time, purpose, details, etc. no later than 7 days before the investigation, and shall prepare a report on the investigation and verification results immediately after such investigation and verification, as prescribed by Ministerial Decree of Trade, Industry and Energy. |
| (4) | A relevant public official who conducts investigation and verification under paragraph (2) shall carry a certificate which indicates his or her status and authority for entering and exiting the relevant place of business, and present it to interested persons. |
| Article 30 (Compliance Orders) |
| (1) | Where a business entity subject to power system impact assessments fails to comply with mandates, the Minister of Trade, Industry and Energy shall order him or her to take measures necessary for the compliance thereof. |
| (2) | If deemed that a business entity subject to power system impact assessments fails to comply with an order issued under paragraph (1), which results in significant impacts on the electric power system, the Minister of Trade, Industry and Energy may order the suspension of the relevant project until such order is completely complied with. |
| Article 31 (Follow-Up Management) |
| (1) | A business entity subject to power system impact assessments who has complied with mandates to implement a project subject to assessments shall maintain, manage, and operate his or her independent power generation facilities, etc. in compliance with the relevant mandates. |
| (2) | Where any change in the electric power system, etc. requires the change of the relevant independent power generation facilities or the maintenance, management, and operation thereof, a business entity subject to power system impact assessments shall report the details of such change to the Minister of Trade, Industry and Energy in advance. |
| (3) | The Minister of Trade, Industry and Energy shall determine whether to accept a report on change under paragraph (2) within 180 days from the date of receipt of the report, as prescribed by Ministerial Decree of Trade, Industry and Energy, and notify the person who has filed such report of whether to accept the report. |
| (4) | Where the Minister of Trade, Industry and Energy fails to notify a person who has filed a report of whether his or her report is accepted or whether the processing period is extended pursuant to statutes or regulations governing the processing of civil petitions within the period prescribed in paragraph (3), the report shall be deemed accepted on the day following the expiry of such period (where the processing period is extended or re-extended under statutes or regulations governing the processing of civil petitions, referring to the relevant processing period). <Added on Feb. 3, 2022> |
| Article 32 (Vicarious Execution of Power System Impact Assessments) |
| (1) | When conducting or changing power system impact assessments, a business entity subject to power system impact assessments may have a person designated by the Minister of Trade, Industry and Energy conduct such assessments vicariously, as prescribed by Presidential Decree. |
| (2) | A business entity subject to power system impact assessments that concludes a contract for the vicarious execution or change of such power system impact assessments pursuant to paragraph (1) shall conclude a contract separate from other contracts related to the project subject to assessments. |
| (3) | The Minister of Trade, Industry and Energy who has designated an agent for power system impact assessments under paragraph (1) shall publicly announce such designation. |
CHAPTER VII DESIGNATION OF DISTRIBUTED ENERGY SPECIALIZED AREA AND REGULATORY EXCEPTIONS
| Article 33 (Application for Designation of Distributed Energy Specialized Areas) |
| (1) | 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 "Mayor/Do Governor") who intends to obtain the designation of a distributed energy specialized area shall formulate a plan for a distributed energy specialized area under Article 35 and shall file an application for the designation of a distributed energy specialized area with the Minister of Trade, Industry and Energy. |
| (2) | Matters necessary for the procedures, etc. for filing an application for the designation of a distributed energy specialized area shall be prescribed by Presidential Decree. |
| Article 34 (Proposal of Plan for Distributed Energy Specialized Area) |
| (1) | A private enterprise or the head of a Si/Gun/Gu (the head of a Gu means the head of an autonomous Gu; hereinafter referred to as "private enterprise, etc.") may propose a plan for a distributed energy specialized area to the Mayor/Do Governor having jurisdiction over the relevant region. |
| (2) | A plan for a distributed energy specialized area proposed by a private enterprise, etc. shall include the matters under the subparagraphs of Article 35 (1). |
| Article 35 (Formulation of Plan for Distributed Energy Specialized Area) |
| (1) | Where a Mayor/Do Governor intends to apply for the designation of a distributed energy specialized area, he or she shall formulate a plan for a distributed energy specialized area, including the following matters: |
| 1. | Name, location, and size of a distributed energy specialized area; |
| 2. | Necessity for the designation of a distributed energy specialized area and expected effects; |
| 3. | Plans for the development of a distributed energy specialized area; |
| 4. | Regulatory exceptions applied to distributed energy specialized areas, their necessity, and the scope of the application; |
| 5. | Demand for electricity in distributed energy specialized areas and plans for the supply thereof; |
| 6. | Other matters prescribed by Presidential Decree as necessary for applying for the designation of a distributed energy specialized area. |
| (2) | A Mayor/Do Governor shall publicly announce a plan for a distributed energy specialized area formulated under paragraph (1) for at least 30 days and hear the opinions of residents, enterprises, etc. |
| Article 36 (Designation of Distributed Energy Specialized Areas) |
| (1) | Upon receipt of an application for the designation of a distributed energy specialized area under Article 33 (1), the Minister of Trade, Industry and Energy shall notify the head of the relevant central administrative agency of the details thereof. |
| (2) | Upon receipt of notification under paragraph (1), the head of the relevant central administrative agency shall examine the details of the relevant application and file a reply thereto with the Minister of Trade, Industry and Energy within 30 days, accompanied with the written results. If necessary for examining the data notified under paragraph (1), the head of the relevant central administrative agency may request that the Mayor/Do Governor who has filed an application for the designation of a distributed energy specialized area supplement such data, and the period required to supplement such data shall not be included in the period under the former part. |
| (3) | The Minister of Trade, Industry and Energy may designate a distributed energy specialized area after approving a plan for a distributed energy specialized area after deliberation and resolution by the Energy Committee, in consideration of the opinions of the heads of the relevant central administrative agencies under paragraph (2). |
| (4) | Where the Minister of Trade, Industry and Energy approves a plan for a distributed energy specialized area under paragraph (3) and designates a distributed energy specialized area, the Minister shall publicly notify the details thereof in the Official Gazette, as prescribed by Presidential Decree, and notify the Mayor/Do Governor who has filed an application accordingly. In such cases, Article 8 of the Framework Act on the Regulation of Land Use shall apply to the public notification, etc. of topographical drawings. |
| (5) | Except as provided in paragraphs (1) through (4), matters necessary for the designation, etc. of a distributed energy specialized area shall be prescribed by Presidential Decree. |
| Article 37 (Recommendation for Application for Designation of Distributed Energy Specialized Areas) |
| (1) | With respect to an area where the activation of distributed energy is particularly necessary for the smooth supply of electricity and the stabilization of the electric power systems, the Minister of Trade, Industry and Energy may designate a distributed energy specialized area after consulting with the Mayor/Do Governor having jurisdiction over the relevant area, hearing the opinions of the relevant central administrative agencies, and undergoing deliberation and resolution by the Energy Committee, or may recommend that the Mayor/Do Governor having jurisdiction over the relevant area file an application for the designation of a distributed energy specialized area. |
| (2) | Where a Mayor/Do Governor applies for the designation of a distributed energy specialized area in accordance with the recommendation under paragraph (1), the Minister of Trade, Industry and Energy may designate such area in preference to other applications. |
| (3) | Matters necessary for the designation of distributed energy specialized areas and recommendation for designation application under paragraph (1) shall be prescribed by Presidential Decree. |
| Article 38 (Effects of Designation of Distributed Energy Specialized Areas) |
| (1) | The State and local governments shall endeavor to partially or wholly exclude the application of administrative regulations under Article 2 (1) 1 of the Framework Act on Administrative Regulations or to devolve regulatory authority (hereinafter referred to as "regulatory exceptions, etc.") in relation to an area designated as a distributed energy specialized area pursuant to Article 36 in implementing a plan for a distributed energy specialized area. |
| (2) | The Special Metropolitan City, a Metropolitan City, a Special Self-Governing City, a Do, or a Special Self-Governing Province in which a distributed energy specialized area is located may prescribe matters necessary for the operation of the distributed energy specialized area by municipal ordinance. |
| (3) | Matters necessary for regulatory exceptions, etc. shall be prescribed by Presidential Decree. |
| Article 39 (Change of Designation of Distributed Energy Specialized Areas) |
| (1) | Where a Mayor/Do Governor having jurisdiction over a distributed energy specialized area (hereinafter referred to as "competent Mayor/Do Governor") intends to change the details of a plan for a distributed energy specialized area approved under Article 36 and the designation of a distributed energy specialized area, he or she shall file an application for the change thereof with the Minister of Trade, Industry and Energy. |
| (2) | Articles 33 through 36 shall apply mutatis mutandis to the details of a plan for a distributed energy specialized area and the change of the designation of a distributed energy specialized area under paragraph (1). |
| Article 40 (Revocation of Designation of Distributed Energy Specialized Areas) |
| (1) | Where a distributed energy specialized area falls under any of the following subparagraphs, the competent Mayor/Do Governor may file an application for the revocation of the designation of the distributed energy specialized area with the Minister of Trade, Industry and Energy: |
| 1. | Where the objectives of designation of a distributed energy specialized area cannot be achieved or are expected to be impossible to achieve; |
| 2. | Where serious side effects result from the application of regulatory exceptions, etc. to a distributed energy specialized area; |
| 3. | Where other grounds prescribed by Presidential Decree exist. |
| (2) | Upon receipt of an application under paragraph (1), the Minister of Trade, Industry and Energy may revoke the designation of a distributed energy specialized area after deliberation and resolution by the Energy Committee. |
| (3) | The Minister of Trade, Industry and Energy may revoke the designation of a distributed energy specialized area with poor operational performance ex officio after deliberation and resolution by the Energy Committee, as prescribed by Presidential Decree. |
| (4) | Where the Minister of Trade, Industry and Energy revokes the designation of a distributed energy specialized area pursuant to paragraph (3), the Minister shall publicly notify the details thereof in the Official Gazette and immediately notify the competent Mayor/Do Governor, private enterprise, etc. thereof. |
| (5) | Where the designation of a distributed energy specialized area is revoked under paragraph (2) or (3), the application of regulatory exceptions, etc. applied to the relevant distributed energy specialized area in accordance with a plan for a distributed energy specialized area shall be suspended; provided, where the suspension of the application of regulatory exceptions, etc. is very impracticable or not practically beneficial and other cases prescribed by Presidential Decree exist, such application may be sustained after deliberation and resolution by the Energy Committee. |
| (6) | Except as provided in paragraphs (1) through (5), matters necessary for the revocation of the designation of a distributed energy specialized area, such as methods of and procedures for filing an application therefor, shall be prescribed by Presidential Decree. |
| Article 41 (Evaluation of Operation of Distributed Energy Specialized Areas) |
| (1) | The Minister of Trade, Industry and Energy may evaluate the operation of distributed energy specialized areas regularly or occasionally. |
| (2) | The Minister of Trade, Industry and Energy may request that the heads of the relevant administrative agencies and the competent Mayor/Do Governor submit the relevant data, if necessary for the evaluation under paragraph (1). Upon receipt of such request, the heads of the relevant administrative agencies and the competent Mayor/Do Governor shall comply therewith, unless there is a compelling reason not to do so. |
| (3) | The Minister of Trade, Industry and Energy shall finalize the evaluation results under paragraph (1) after deliberation and resolution by the Energy Committee and notify the competent Mayor/Do Governor thereof, and the competent Mayor/Do Governor shall take improvement measures according to the evaluation results, unless there is a compelling reason not to do so. |
| (4) | Except as provided in paragraphs (1) through (3), matters necessary for the standards, methods, procedures, etc. for evaluating the operation of distributed energy specialized areas shall be prescribed by Presidential Decree. |
| Article 42 (Follow-Up Management) |
| (1) | The Minister of Trade, Industry and Energy shall frequently inspect the application of regulatory exceptions, etc. with the cooperation of the heads of the relevant central administrative agencies and local governments, and shall take measures to re-examine the relevant regulatory exceptions, etc., if the application of regulatory exceptions, etc. frequently undermines the lives and safety of citizens, the environment, the stable supply of energy, and the stability of the electric power system, or is likely to undermine the safe protection and processing of personal information, etc. |
| (2) | Except as provided in paragraph (1), matters necessary for the standards, methods, procedures, etc. for the follow-up management of regulatory exceptions, etc. shall be prescribed by Presidential Decree. |
| Article 43 (Electricity Transaction between Distributed Energy Business Entities and Electric Sales Business Entities) |
| (1) | Notwithstanding the Electric Utility Act, a distributed energy business entity that has installed power generation facilities in a distributed energy specialized area may directly supply electricity to electricity consumers not through the electricity market defined in subparagraph 13 of Article 2 of that Act (hereafter referred to as "electricity market" in this Article) within the distributed energy specialized area. In such cases, consultations on charges, other terms and conditions of supply, etc. shall be held individually to conclude a contract. |
| (2) | A distributed energy business entity may make a transaction with an electric sales business entity where an accident in a distributed energy specialized area or any other cause prescribed by Ministerial Decree of Trade, Industry and Energy results in shortage of electricity, or may make a transaction in the electricity market or with an electric sales business entity in accordance with the rules on the operation of the electricity market under Article 43 of the Electric Utility Act, where surplus power exists. |
| (3) | No electric sales business entity shall refuse transactions under paragraph (2) without good cause. |
| (4) | An electric sales business entity shall prepare the terms and conditions stating matters relating to electric rates and other transaction terms and conditions for transactions under paragraph (2) and obtain authorization therefor from the Minister of Trade, Industry and Energy. The same shall also apply to any change to such terms and conditions. |
| (6) | No electricity traded under paragraph (1) shall be subject to the issuance of a new and renewable energy supply certificate under Article 12-7 (1) of the Act on the Promotion of the Development, Use and Diffusion of New and Renewable Energy. |
| (7) | Matters regarding the supply of electricity in a distributed energy specialized area under paragraph (1) shall be prescribed by Ministerial Decree of Trade, Industry and Energy. |
| Article 44 (Electricity User's Right to Choose Supplier) |
| (1) | Except electricity users supplied with electricity from district electric business entities under subparagraph 12 of Article 2 of the Electric Utility Act, electricity users in distributed energy specialized areas may be supplied with electricity from distributed energy business entities and electric sales business entities. |
| (2) | The procedures for the supply of electricity, measurement, settlement of accounts, etc. under paragraph (1) shall be prescribed by Ministerial Decree of Trade, Industry and Energy. |
CHAPTER VIII ELECTRIC RATES BY REGION
| Article 45 (Electric Rates by Region) |
When an electric sales business entity prepares the basic terms and conditions of supply under Article 16 (1) of the Electric Utility Act for balanced national development, etc., he or she may separately determine electric rates in consideration of the costs, etc. of transmission and distribution of electricity.
| Article 46 (Expansion of Social and Economic Benefits of Distributed Energy Business) |
| (1) | The Minister of Trade, Industry and Energy shall endeavor to expand the social and economic benefits of distributed energy business (including social and economic benefits arising from the reduction of unnecessary costs incurred in the installation of large-scale power generation facilities and transmission power systems thanks to the use of distributed energy, the avoidance of social conflicts and the stabilization of power supply), so that distributed energy business can be conducted in a stable manner. |
| (2) | The Minister of Trade, Industry and Energy may require an institution designated as prescribed by Presidential Decree to calculate the benefits under paragraph (1). |
| (3) | Matters necessary for the expansion of social and economic benefits of distributed energy business under paragraph (1) shall be prescribed by Presidential Decree. |
| Article 47 (Subsidies and Loans) |
| (1) | Where necessary to facilitate the development and diffusion of distributed energy, the Government may subsidize or lend any of the following expenses to distributed energy business entities, as prescribed by Presidential Decree: |
| 1. | Expenses incurred in developing technologies and training professional human resources to innovate the stability, efficiency, and eco-friendliness of distributed energy business; |
| 2. | Expenses incurred in cooperation and technology exchanges with foreign countries in relation to distributed energy business; |
| 3. | Other expenses prescribed by Presidential Decree, which are necessary to facilitate the development and diffusion of distributed energy. |
| (2) | Matters necessary for the procedures for and methods of providing subsidies or loans pursuant to paragraph (1) shall be prescribed by Presidential Decree. |
| Article 48 (Investment of Fund in Distributed Energy Business) |
A person who manages any of the following funds may invest in or fund distributed energy business in accordance with the relevant fund management plan:
| 1. | Funds prescribed by Presidential Decree, the establishment of which is governed under the statutes prescribed in Appendix 2 of the National Finance Act; |
| 2. | Other funds prescribed by Presidential Decree, the establishment purpose of which is similar to that of the funds prescribed in subparagraph 1. |
| Article 49 (Training of Professional Human Resources) |
| (1) | The Government may formulate and promote the following policies to train professional technical human resources for the development and diffusion of distributed energy: |
| 1. | Establishment of a system for training technical human resources in line with the establishment of a foundation for the development and diffusion of distributed energy; |
| 2. | Training of human resources through the facilitation of industry-academic cooperation; |
| 3. | Training of technical human resources in the fields with promising future prospects, for the development and diffusion of distributed energy; |
| 4. | Re-education of on-site technical human resources for the development and diffusion of distributed energy; |
| 5. | Other matters prescribed by Ministerial Decree of Trade, Industry and Energy to train human resources necessary for the development and diffusion of distributed energy. |
| (2) | The Government may support a person who undertakes any project under the subparagraphs of paragraph (1) by fully or partially subsidizing the expenses incurred in undertaking the relevant project within the budget. |
| Article 50 (Compilation of Statistics on Distributed Energy) |
| (1) | The Minister of Trade, Industry and Energy may prepare and manage statistics on distributed energy to facilitate the development and diffusion of distributed energy. |
| (2) | The Minister of Trade, Industry and Energy may have a related specialized institution perform the task of compiling and managing statistics under paragraph (1), as prescribed by Ministerial Decree of Trade, Industry and Energy. In such cases, the expenses incurred in performing the relevant task may be fully or partially subsidized within the budget. |
| (3) | Matters necessary for the compilation and management of statistics pursuant to paragraph (1) shall be prescribed by Ministerial Decree of Trade, Industry and Energy. |
| Article 51 (International Cooperation and Support for Entry into Overseas Markets) |
| (1) | The Minister of Trade, Industry and Energy may undertake any of the following projects to facilitate international cooperation and accelerate entry into overseas markets in relation to distributed energy: |
| 1. | International exchange of technology and human resources in relation to distributed energy, international standardization, and international joint research and development; |
| 2. | Hosting of international exhibitions on distributed energy in the Republic of Korea; |
| 3. | Overseas marketing, public relations activities, and foreign investment attraction; |
| 4. | Provision of information, consultation, and cooperation on overseas expansion; |
| 5. | Other projects prescribed by Ministerial Decree of Trade, Industry and Energy to support overseas expansion and international exchange. |
| (2) | The Minister of Trade, Industry and Energy may support any person who undertakes any project under the subparagraphs of paragraph (1) by fully or partially subsidizing the expenses incurred in undertaking the relevant project within the budget. |
| Article 52 (Expansion of Social Consensus) |
The Minister of Trade, Industry and Energy may formulate and promote the following policies to build social consensus on the spread of distributed energy by raising citizens’ awareness and understanding of the development and diffusion of distributed energy:
| 1. | Building awareness, understanding and consensus on the use of distributed energy in society; |
| 2. | Education and publicity for the establishment and diffusion of a distributed energy-friendly culture; |
| 3. | Development and dissemination of educational contents related to distributed energy; |
| 4. | Development and support for institutions or organizations undertaking projects or activities for the establishment and development of distributed energy-friendly culture; |
| 5. | Establishment of systems and foundations to experience distributed energy-friendly culture and facilitate exchanges; |
| 6. | Other matters prescribed by Presidential Decree to develop a social consensus on the expansion of distributed energy. |
| Article 53 (Establishment and Operation of Comprehensive Information Management System) |
| (1) | The Minister of Trade, Industry and Energy may establish and operate a comprehensive information management system for distributed energy in order to provide distributed energy business entities with necessary information, such as technology, human resources, and industrial trends, and to systematically manage information on the current status of distributed energy. |
| (2) | The Minister of Trade, Industry and Energy may have a related specialized institution perform duties for establishing and operating the comprehensive information management system under paragraph (1), as prescribed by Ministerial Decree of Trade, Industry and Energy. In such cases, the expenses incurred in performing the relevant duties may be fully or partially subsidized within the budget. |
| (3) | Other matters necessary for the scope of establishment and operation of the comprehensive information management system shall be prescribed by Ministerial Decree of Trade, Industry and Energy. |
| Article 54 (Designation of Distributed Energy Promotion Center) |
| (1) | The Minister of Trade, Industry and Energy may designate a distributed energy promotion center (hereafter referred to as "center" in this Article) for the development and diffusion of distributed energy. |
| (2) | The center shall engage in the following projects: |
| 1. | Policy support, such as performance analysis and surveys related to the development and diffusion of distributed energy; |
| 2. | Projects for distributed energy-related research and development, standardization, training of professional human resources, and establishment of a foundation; |
| 3. | Provision of information on distributed energy and advice on management, technology, etc.; |
| 4. | Support for and management of statistics related to distributed energy; |
| 5. | A pilot project or system improvement project for the activation of distributed energy and the rationalization of regulations; |
| 6. | Support for and management of government subsidies, loans, etc. related to distributed energy; |
| 7. | A project to support the establishment and operation of a comprehensive information management system; |
| 8. | Preparation and disclosure of statistics and future policy indicators related to distributed energy business; |
| 9. | Industrial-academic-research technical cooperation, publicity, and international cooperation projects related to projects under subparagraphs 1 through 8; |
| 10. | Other projects prescribed by Presidential Decree to achieve the objectives of the center. |
| (3) | Where the center designated under paragraph (1) falls under any of the following, the Minister of Trade, Industry and Energy may revoke the designation thereof; provided, in the case of subparagraph 1, the Minister shall revoke such designation: |
| 1. | Where it has obtained designation by fraud or other improper means; |
| 2. | Where it fails to meet the requirements for designation under paragraph (4). |
| (4) | Other matters necessary for the standards and procedures for the designation of the center and the revocation of the designation, and the smooth operation thereof shall be prescribed by Presidential Decree. |
| Article 55 (Establishment of Distributed Energy Support Center) |
| (1) | A distributed energy support center may be established in each local government (hereafter referred to as "support center" in this Article) to comprehensively support enterprises which provide counseling, guidance, publicity, surveys, and research related to distributed energy, handle or vicariously handle civil petitions, offer business start-up training, or engage in other distributed energy business. |
| (2) | If necessary for conducting the affairs related to distributed energy in the relevant region, a Mayor/Do Governor may request that the relevant administrative agencies, corporations or organizations related to distributed energy (hereinafter referred to as "relevant institutions") dispatch the public officials or executive officers and employees of the relevant institutions to the support center; provided, advance consultations with the competent Minister shall precede a request for the dispatch of public officials. |
| (3) | If necessary for efficiently handling the business affairs related to distributed energy, a Mayor/Do Governor may request that the head of the relevant administrative agency in charge of such business affairs establish a branch office of the relevant agency in the support center. |
| (4) | A Mayor/Do Governor may request cooperation from the relevant administrative agencies or the relevant institutions, if necessary to perform the affairs under paragraph (1). |
| (5) | Matters necessary for the organization and operation of the support center shall be prescribed by Presidential Decree. |
CHAPTER IX SUPPLEMENTARY PROVISIONS
| Article 56 (Purchase of Insurance) |
| (1) | A distributed energy business entity shall purchase insurance to indemnify others for damage caused by the supply of distributed energy. |
| (2) | The types of insurance, those subject to subscription, procedures for subscription, and other necessary matters under paragraph (1) shall be prescribed by Presidential Decree. |
| (3) | The Minister of Trade, Industry and Energy may, in consultation with the Financial Services Commission, have insurers transfer part of the proceeds from the insurance under paragraph (1) to persons undertaking projects to prevent distributed energy-related damage and distribute distributed energy every 3 years within 3 months from the end of the third business year; matters necessary therefor shall be prescribed by Presidential Decree. |
| Article 57 (Prohibited Acts) |
No distributed energy business entity shall engage in any of the following acts. In such cases, the types of business facilities under subparagraph 2 and the specific details regarding the installation or remodeling thereof shall be prescribed by Presidential Decree:
| 1. | Selling distributed energy by unfairly increasing the supply of distributed energy, such as by deceiving the amount of heat supplied on purpose; |
| 2. | Installing or remodeling business facilities for the purpose of acts prescribed in subparagraph 1, or using the installed or remodeled business facilities through the acquisition or lease thereof; |
| 3. | Suspending or reducing the supply of distributed energy or restricting the sale thereof without good cause; |
| 4. | Other acts prescribed by Presidential Decree that undermine the sound and orderly distribution of distributed energy to be supplied. |
| Article 58 (Prohibition of Divulgence of Confidential Information) |
An executive officer or employee of an institution entrusted with affairs under Article 62 or a person who has served in the post shall not divulge or misappropriate any confidential information he or she has become aware of in the course of performing his or her duties, or allow other persons to use such information.
| Article 59 (Submission of Data and Inspection) |
| (1) | If necessary for supervising distributed energy business entities, the Minister of Trade, Industry and Energy may order distributed energy business entities and distributed energy-related institutions, corporations, or organizations (hereafter referred to as "distributed energy business entities, etc." in this Article) to report on the affairs or submit data. |
| (2) | The Minister of Trade, Industry and Energy may have public officials under his or her control enter the offices, places of business, and other places of distributed energy business entities, etc. to inspect the relevant documents or ask questions to the relevant persons or take other necessary measures. |
| (3) | A public official making a visit for inspection under paragraph (2) shall carry an identification indicating his or her authority and present it to interested persons. |
The Minister of Trade, Industry and Energy who intends to take any of the following dispositions shall hold a hearing:
| 1. | Revocation of the registration of a distributed energy business entity under Article 10; |
| 2. | Revocation of the designation of a distributed energy specialized area under Article 40 (3); |
| 3. | Revocation of the designation of the distributed energy promotion center under Article 54 (3). |
Any person who intends to file for registration pursuant to Article 8 (1) shall pay fees, as prescribed by Ministerial Decree of Trade, Industry and Energy.
| Article 62 (Delegation and Entrustment of Authority) |
Part of the authority of the Minister of Trade, Industry and Energy under this Act may be delegated or entrusted to an institution under his or her jurisdiction, the Korea Energy Agency under Article 45 of the Energy Use Rationalization Act, or a relevant specialized institution, as prescribed by Presidential Decree.
| Article 63 (Legal Fiction as Public Officials for Purposes of Applying Penalty Provisions) |
CHAPTER X PENALTY PROVISIONS
| Article 64 (Penalty Provisions) |
| (1) | Any of the following persons shall be punished by imprisonment with labor for not more than 2 years or by a fine not exceeding 20 million won: |
| 1. | A person who commits any prohibited act falling under any subparagraph of Article 57; |
| 2. | A person who divulges or misappropriates any confidential information he or she has become aware of in the course of performing his or her duties, or allows any third person to use such confidential information, in violation of Article 58. |
| (2) | Any of the following persons shall be punished by imprisonment with labor for not more than 1 year or by a fine not exceeding 10 million won, or such imprisonment with labor and fine may be imposed concurrently: |
| 1. | A person who engages in distributed energy business without filing for registration under Article 8 (1) or without filing for registration of change under paragraph (4) of that Article; |
| 2. | A person who fails to comply with an improvement order under Article 12; |
| 3. | A person who fails to comply with a corrective order under Article 20. |
| Article 65 (Joint Penalty Provisions) |
If the representative of a corporation or an agent or employee of, or any other person employed by, the corporation or an individual commits any violations described in Article 64 in conducting the affairs of the corporation or individual, the corporation or individual shall be punished by a fine prescribed in that Article in addition to punishing the violators accordingly; provided, this shall not apply where such corporation or individual has not been negligent in giving due attention and supervision regarding the relevant affairs to prevent such offense.
| Article 66 (Administrative Fines) |
| (1) | Any of the following persons shall be subject to an administrative fine not exceeding 10 million won: |
| 1. | A person who fails to comply with an order to take measures under Article 30 (1); |
| 2. | A person who fails to maintain, manage, and operate his or her independent power generation facilities, etc. in compliance with mandates, in violation of Article 31 (1), or a person who changes his or her independent power generation facilities or the methods of maintaining, managing, and operating such facilities without filing a report on such change, in violation of paragraph (2) of that Article. |
| (2) | Any of the following persons shall be subject to an administrative fine not exceeding 3 million won: |
| 1. | An electric distribution business entity who fails to submit a plan to expand and operate distribution networks under Article 18; |
| 2. | An electric distribution business entity who fails to comply with a request for submission of data, etc. under Article 19; |
| 3. | A person who fails to comply with mandates, in violation of Article 28 (1); |
| 4. | A person who fails to comply with a request to submit data, in violation of the latter part of Article 29 (2). |
| (3) | Administrative fines under paragraphs (1) and (2) shall be imposed and collected by the Minister of Trade, Industry and Energy, as prescribed by Presidential Decree. |
ADDENDA <Act No. 19437, Jun. 13, 2023>
Article 1 (Enforcement Date)
This Act shall enter into force one year after the date of its promulgation.
Article 2 (Special Cases concerning Small and Medium-Sized Nuclear Power Generation Projects)
This Act shall apply to small and medium-sized nuclear power generation projects under subparagraph 2 (c) of Article 2 from the date on which permission is obtained from the Nuclear Safety and Security Commission under Article 3 of the Act on the Establishment and Operation of the Nuclear Safety Commission.