CHAPTER I GENERAL PROVISIONS
The purpose of this Decree is to prescribe matters mandated by the Special Act on Response to Local Industrial Crisis and Recovery of Local Economy and matters necessary for the enforcement thereof.
CHAPTER II PROMOTION SYSTEM
| Article 2 (Deliberative Committee on Response to Industrial Crisis) |
| (1) | The Deliberative Committee on Response to Industrial Crisis (hereafter referred to as the "Deliberative Committee on Response to Industrial Crisis" in this Article) established under Article 5 (1) of the Special Act on Response to Local Industrial Crisis and Recovery of Local Economy (hereinafter referred to as the "Act") shall deliberate on the following matters: |
| 1. | Matters regarding the designation of and support for areas for preemptively responding to industrial crisis; |
| 2. | Matters regarding the designation of a special area for responding to industrial crisis, the extension of the period of designation, the cancellation of designation, and support therefor; |
| 3. | Matters regarding the approval of a plan on special areas for responding to industrial crisis under Article 9 (1) of the Act; |
| 4. | Matters regarding the evaluation of the operation of special areas for responding to industrial crisis under Article 25 of the Act; |
| 5. | Other matters deemed necessary by the chairperson of the Deliberative Committee on Response to Industrial Crisis in connection with response to local industrial crisis. |
| (2) | The Deliberative Committee on Response to Industrial Crisis shall be comprised of up to 15 persons, including 1 chairperson, in consideration of gender balance. |
| (3) | The Minister of Trade, Industry and Energy shall serve as the chairperson of the Deliberative Committee on Response to Industrial Crisis, and the following persons shall serve as members of the Deliberative Committee on Response to Industrial Crisis: |
| 1. | The Vice Minister of Economy and Finance, the Vice Minister of the Interior and Safety, the Vice Minister of Employment and Labor, the Vice Minister of Land, Infrastructure and Transport, and the Vice Minister of SMEs and Startups; and in cases of an agency with multiple Vice Ministers, the Vice Minister designated by the head of the relevant agency; |
| 2. | Persons commissioned by the Minister of Trade, Industry and Energy from among experts in the fields related to response to local industrial crisis, such as region, industry, economy, or employment; |
| 3. | Vice Ministers or Vice Minister-level public officials of central administrative agencies designated by the chairperson of the Deliberative Committee on Response to Industrial Crisis with respect to the agenda items referred to a meeting of the Deliberative Committee on Response to Industrial Crisis. |
| (4) | The term of office of the members under paragraph (3) 2 (hereafter referred to as "commissioned members" in this Article) shall be 2 years, and they may be reappointed only twice. |
| (5) | On the occurrence of a vacancy in the office of a commissioned member, a new member shall be commissioned to fill the vacancy, and the term of office of the newly commissioned member shall be counted from the date he or she is commissioned. |
| (6) | The chairperson of the Deliberative Committee on Response to Industrial Crisis shall represent the Committee and exercise overall control over its affairs. |
| (7) | Where the chairperson of the Deliberative Committee on Response to Industrial Crisis is unable to perform his or her duties for any unavoidable cause, a member designated in advance by the chairperson shall act on his or her behalf. |
| (8) | The chairperson of the Deliberative Committee on Response to Industrial Crisis shall convene and preside over meetings of the Committee. |
| (9) | A majority of the members of the Deliberative Committee on Response to Industrial Crisis shall constitute a quorum, and any resolution thereof shall require the concurring vote of a majority of those present. |
| (10) | The Deliberative Committee on Response to Industrial Crisis shall have 1 secretary to perform the business affairs, who shall be appointed by the chairperson from among public officials of the Ministry of Trade, Industry and Energy. |
| (11) | Except as provided in paragraphs (1) through (10), details necessary for the operation of the Deliberative Committee on Response to Industrial Crisis shall be determined by the chairperson after a resolution by the Committee. |
| Article 3 (Fact-Finding Survey on Local Industry) |
| (1) | A fact-finding survey on local industrial status and changes under Article 6 (1) of the Act (hereinafter referred to as "fact-finding survey on local industries") shall include the following matters: |
| 1. | Matters regarding employment depending on local industrial structure, gender and age; |
| 2. | Matters regarding the business management environment of major local enterprises; |
| 3. | Matters regarding the local economic conditions, such as the current status of business suspension or closure; |
| 4. | Other matters deemed necessary by the Minister of Trade, Industry and Energy to respond to local industrial crisis and identify the recovery of the local economy. |
| (2) | A fact-finding survey on local industries shall be conducted once every year. |
| Article 4 (Establishment and Operation of Comprehensive Local Industry Information System) |
A comprehensive local industry information system under Article 6 (2) of the Act (hereinafter referred to as "local industry information system") shall process the following information: | 1. | Key indicators related to local industries, including local industrial activities, business activities, and economic trends; |
| 2. | Key indicators of the local labor market by business type; |
| 3. | Indicators that reflect the business management environment of local enterprises, including supply chains, market prospects and capital market conditions; |
| 4. | Indicators that reflect the current benefits and effects of support projects on special areas for responding to industrial crisis; |
| 5. | Other matters with which changes in local industrial trends and recovery can be verified. |
CHAPTER III DESIGNATION OF SPECIAL AREAS FOR RESPONDING TO INDUSTRIAL CRISIS
| Article 5 (Preventive Measures and Support against Industrial Crisis) |
| (1) | The Special Metropolitan City Mayor, a Metropolitan City Mayor, a Special Self-Governing City Mayor, a Do Governor, and a Special Self-Governing Province Governor (hereinafter referred to as "Mayor/Do Governor") may formulate and implement a prevention plan under Article 7 (1) of the Act (hereinafter referred to as "plan for the prevention of industrial crisis") in any of the following cases: |
| 1. | Where the Minister of Trade, Industry and Energy recommends the formulation and implementation of a plan for the prevention of industrial crisis pursuant to Article 7 (1) of the Act; |
| 2. | Where a Mayor/Do Governor deems it necessary for preventing a crisis in the local main industry and strengthening the competitiveness of the local industry. |
| (2) | A plan for the prevention of industrial crisis shall include the following matters: |
| 1. | Matters regarding the establishment of strategies for strengthening local industrial competitiveness; |
| 2. | Matters regarding support for the relevant industries, such as research and development, establishment of infrastructure, development of human resources, support for commercialization, etc.; |
| 3. | Matters regarding financing and policy support; |
| 4. | Other matters deemed required by a Mayor/Do Governor for preventive measures against industrial crisis. |
| Article 6 (Designation of Area Preemptively Responding to Industrial Crisis) |
| (1) | A Mayor/Do Governor who files an application for the designation of an area for preemptively responding to industrial crisis under Article 8 (1) of the Act shall formulate a plan on areas for preemptively responding to industrial crisis under that paragraph (hereinafter referred to as "plan on areas for preemptively responding to industrial crisis"), which contains the following matters, and submit it to the Minister of Trade, Industry and Energy: |
| 1. | Name of an administrative district to be designated as an area for preemptively responding to industrial crisis; |
| 2. | Details of support required to be provided preemptively, to improve economic situations; |
| 3. | Data to examine to determine whether the requirements under Article 8 (2) of the Act, such as industrial structures, trends of enterprises in the main industry, changes in the number of employees, etc. are satisfied; |
| 4. | Other data, with which the deterioration of the local industry can be proved, as recognized by a Mayor/Do Governor. |
| (2) | The following methods shall apply to determine whether the requirements for the designation of an area for preemptively responding to industrial crisis are satisfied pursuant to the latter part, with the exception of the subparagraphs, of Article 8 (2) of the Act: |
| 2. | Article 8 (2) 2 of the Act: Where it is deemed that the drastic decline in the number of the enterprises and businesses operating within the local main industry or in the number of their employees is likely to affect the local industrial infrastructure; |
| 3. | Article 8 (2) 3 of the Act: Where urgent response is required due to a plan to relocate major local enterprises and businesses, a restructuring plan, a business closure decision, etc. |
| (3) | The Minister of Trade, Industry and Energy shall determine and publicly notify the detailed standards for determining whether the requirements for the designation of an area for preemptively responding to industrial crisis under paragraph (2) are satisfied. |
| (4) | The Minister of Trade, Industry and Energy may conduct an on-site inspection of and collect data on an area for which an application for the designation of an area for preemptively responding to industrial crisis has been filed to examine whether to grant such designation. |
| (5) | The period of designation of an area for preemptively responding to industrial crisis shall be 2 years. |
| (6) | Where an area for preemptively responding to industrial crisis is designated as a special area for responding to industrial crisis pursuant to Article 10 (1) of the Act during the period of designation under paragraph (5), the designation of the area as such shall be deemed canceled. |
| (7) | A Mayor/Do Governor shall submit to the Minister of Trade, Industry and Energy an operational report on the outcomes, effects, etc. of support provided to an area for preemptively responding to industrial crisis every 6 months as of the date of such designation. |
| Article 7 (Application for Designation of Special Area for Responding to Industrial Crisis) |
| (1) | A Mayor/Do Governor shall file an application for the designation of a special area for responding to industrial crisis under Article 9 (1) of the Act, by viewing a Si (including an administrative Si under Article 10 of the Special Act on the Establishment of Jeju Special Self-Governing Province and the Development of Free International City; hereafter the same shall apply in this Article)/Gun/autonomous Gu as a unit area; provided, he or she may file such application by combining 2 or more Sis/Guns/autonomous Gus into a single unit area, in consideration of economic zones based on industrial structures and characteristics. |
| (2) | "Matters prescribed by Presidential Decree" in Article 9 (1) 5 of the Act means the following: |
| 1. | Period and method of inspecting documents related to a plan on special areas for responding to industrial crisis under Article 9 (1) of the Act (hereinafter referred to as "plan on areas in industrial crisis"); |
| 2. | Results of hearing opinions from residents, enterprises, related experts, etc. under Article 9 (4) of the Act; |
| 3. | Other matters whose inclusion in a plan on areas in industrial crisis is deemed necessary by the Minister of Trade, Industry and Energy to respond to local industrial crisis. |
| (3) | The Minister of Trade, Industry and Energy shall determine whether the requirements for the designation of a special area for responding to industrial crisis under the latter part, with the exception of the subparagraphs, of Article 9 (2) of the Act are satisfied in accordance with the following methods: |
| 1. | Article 9 (2) 1 of the Act: Where the industrial structure of the relevant area has low diversity, the number of workers involved in the main industry accounts for a large proportion, and the area has high local specialization; |
| 2. | Article 9 (2) 2 of the Act: Where the number of employees or places of business in the main industry has decreased and the production indicators of the main industry have deteriorated; |
| 3. | Article 9 (2) 3 of the Act: Where the indicators of the relevant local economy have deteriorated, such as total local employment, local electricity consumption, and local business suspension or closure; |
| 4. | Article 9 (2) 4 of the Act: Other cases where the Minister of Trade, Industry and Energy deems that the local main industry and local economic conditions have deteriorated. |
| (4) | The Minister of Trade, Industry and Energy shall determine and publicly notify the detailed standards for determining whether the requirements for the designation of a special area for responding to industrial crisis under paragraph (3) are satisfied. |
| (5) | Pursuant to Article 9 (4) of the Act, a Mayor/Do Governor shall publicly announce a plan on areas in industrial crisis in the official report, on the website of the relevant Special Metropolitan City, Metropolitan City, Special Self-Governing City, Do, or Special Self-Governing Province (hereinafter referred to as "City/Do"), and daily newspapers mainly distributed in the relevant City/Do, respectively. |
| (6) | A person who has an opinion on a plan on areas in industrial crisis publicly announced under paragraph (5) may submit a written opinion to the relevant Mayor/Do Governor within the period of such public announcement. |
| (7) | A Mayor/Do Governor may hold a public hearing on the publicly announced plan on areas in industrial crisis. In such cases, he or she shall publicly announce the following matters in the official report and on the website of the relevant City/Do, and in daily newspapers mainly distributed in the relevant City/Do, respectively, no later than 14 days before the scheduled date of the public hearing: |
| 1. | Objectives of the public hearing; |
| 2. | Date, time, and venue of the public hearing; |
| 3. | Overview of a draft plan on areas in industrial crisis; |
| 4. | Other matters the public announcement of which is deemed necessary by a Mayor/Do Governor in connection with the holding of the public hearing. |
| Article 8 (Designation of Special Area for Responding to Industrial Crisis) |
| (1) | Policies to be formulated to ensure the recovery of the main industry and economy of a special area for responding to industrial crisis pursuant to Article 10 (4) of the Act shall include the following matters: |
| 1. | Financial and fiscal support, such as subsidies, loans, and contributions to enterprises and small business owners; |
| 2. | Support for the research and development activities of enterprises and for the commercialization of research and development outcomes; |
| 3. | Support to enterprises for domestic sales and exports, and advisory services on business management, technologies, and accounting; |
| 4. | Support for employment security, such as education for the vocational development of workers, and education for the re-employment of the unemployed and retired; |
| 5. | Support for the expansion of infrastructure and the attraction of investment to develop new industries; |
| 6. | Other support deemed necessary by the Minister of Trade, Industry and Energy, such as support for the economic recovery of a special area for responding to industrial crisis, etc. |
| (2) | A Mayor/Do Governor who intends to obtain an extension of the period of designation of a special area for responding to industrial crisis under Article 10 (6) of the Act shall submit an application, containing the following matters related to such extension, to the Minister of Trade, Industry and Energy: |
| 1. | Recovery of the local main industry; |
| 2. | Recovery of the local economy; |
| 3. | Outcomes of the implementation of a plan on areas in industrial crisis; |
| 4. | Necessity for additional support and expected effects. |
| (3) | The Minister of Trade, Industry and Energy shall determine and publicly notify the detailed standards for determining whether the standards for extending the period of designation under paragraph (2) are satisfied. |
| (4) | Upon receipt of an application submitted under paragraph (2), the Minister of Trade, Industry and Energy shall examine the matters referred to in the subparagraphs of paragraph (2) and determine whether to extend the period of designation of a special area for responding to industrial crisis by comprehensively considering the results of such examination. |
| (5) | An operational report under Article 10 (8) of the Act shall include the following matters: |
| 1. | Key local industrial trends and economic situations; |
| 2. | Outcomes of the implementation of a plan on areas in industrial crisis; |
| 3. | Outcomes and effects of support provided in accordance with policies under Article 10 (4) of the Act; |
| 4. | Outcomes and effects of support provided by a local government having jurisdiction over the relevant area. |
| (6) | The Minister of Trade, Industry and Energy shall determine and publicly notify the detailed methods, etc. of preparing operational reports under paragraph (5). |
| Article 9 (Modification of Plan on Area in Industrial Crisis) |
| (1) | A Mayor/Do Governor who intends to request the approval of the modification of a plan on areas in industrial crisis pursuant to Article 11 (1) of the Act shall submit to the Minister of Trade, Industry and Energy an application including the following: |
| 1. | Objectives of and grounds for the modification of a plan on areas in industrial crisis; |
| 2. | Any modification to a plan on areas in industrial crisis. |
| (2) | "Modifications to minor matters prescribed by Presidential Decree" in the proviso of Article 11 (2) of the Act means the following: |
| 1. | Any modification to terminologies following modifications to other statutes or regulations, plans, etc.; |
| 2. | Any modification to a plan on areas in industrial crisis, deemed necessary by the Minister of Trade, Industry and Energy, to the extent not affecting the basic direction of the plan, such as an objective and strategy. |
| Article 10 (Cancellation of Designation of Special Area for Responding to Industrial Crisis) |
| (1) | The Minister of Trade, Industry and Energy who cancels the designation of a special area for responding to industrial crisis under Article 12 (2) and (3) of the Act shall publicly announce the following matters in the Official Gazette and notify a Mayor/Do Governor having jurisdiction over the relevant special area for responding to industrial crisis thereof without delay: |
| 1. | Name of a special area for responding to industrial crisis; |
| 2. | Grounds for the cancellation of the designation of a special area for responding to industrial crisis; |
| 3. | Date of the designation of a special area for responding to industrial crisis and date of the cancellation of designation thereof. |
| (2) | The competent Mayor/Do Governor in receipt of notification under paragraph (1) shall publicly announce the details thereof in the official report and on the website of the relevant City/Do, and in daily newspapers mainly distributed in the relevant City/Do, respectively, for at least 14 days, so that residents may inspect the details thereof. |
| Article 11 (Prompt Proceeding of Procedures) |
A Mayor/Do Governor who modifies and submits a plan for the prevention of industrial crisis or a plan on preemptively responding areas under the latter part of Article 14 of the Act shall ensure that the details referred to in the subparagraphs of Article 9 (1) of the Act are included in the plan for the prevention of industrial crisis or the plan on preemptively responding areas.
CHAPTER IV SUPPORT FOR SPECIAL AREAS FOR RESPONDING TO INDUSTRIAL CRISIS
| Article 12 (Provision of Funds) |
| (1) | "Projects prescribed by Presidential Decree, such as investment in facilities, establishment and expansion of factories, business management innovation, conversion of business types, and securing of working funds" in Article 15 (1) of the Act means the following: |
| 2. | Construction and expansion of factories; |
| 3. | Business management innovation; |
| 4. | Conversion of business types; |
| 5. | Business regarding the basic operation of enterprises, including the securing of working funds; |
| 6. | Other projects for which the provision of funds, loans, or subsidies is deemed required by the Minister of Trade, Industry and Energy for the diversification of local industries and the business stabilization of local enterprises. |
| (2) | "Funds or capital prescribed by Presidential Decree" in Article 15 (2) 2 of the Act means the funds or capital determined by the Minister of Trade, Industry and Energy in consultation with the head of a central administrative agency that manages and operates such funds or capital in consideration of the purpose of establishing such funds or capital. |
| (3) | Except as provided in paragraphs (1) and (2), the Minister of Trade, Industry and Energy shall determine necessary matters, such as standards, methods, conditions, etc. for financing projects conducted in a special area for responding to industrial crisis, in consultation with the head of a central administrative agency that manages the funds. |
| Article 13 (Preferential Subsidization for Infrastructure) |
Infrastructure for which all or part of installation expenses may be subsidized pursuant to Article 16 (1) of the Act shall be as follows. | 1. | Transportation facilities, such as roads, railroads, harbors, and airports; |
| 2. | Water supply facilities, gas supply facilities, and electricity and communications facilities; |
| 3. | Utility tunnels, waterworks and sewerage systems, and waste disposal facilities; |
| 4. | Parks and green spaces; |
| 5. | Other infrastructure for which preferential subsidization is deemed necessary by the Minister of Trade, Industry and Energy to help the recovery of local industries and the local economy. |
| Article 14 (Standards for Designation of Institutions Providing Consulting Services) |
| (1) | The Minister of Trade, Industry and Energy may designate an institution that satisfies all of the following requirements as an institution providing consulting services pursuant to Article 19 (1) of the Act: |
| 1. | Any of the following institutions: |
| (c) | A corporation established under any special Act; |
| 2. | Human resources dedicated to providing consulting services under Article 19 (1) of the Act and systems for the provision of such services; |
| 3. | Expertise required to connect the results of consulting with the means of government support. |
| (2) | The Minister of Trade, Industry and Energy who has designated an institution providing consulting services under Article 19 (1) of the Act shall publicly notify the details thereof in the Official Gazette. |
| (3) | A person designated as an institution providing consulting services under Article 19 (1) of the Act shall submit annual operation outcomes to the Minister of Trade, Industry and Energy by January 31 of the following year. |
| Article 15 (Connection with and Preferential Support for Support Projects) |
| (1) | "Projects prescribed by Presidential Decree, such as the establishment of industrial infrastructure, technology development, development of human resources, business start-up, support for market development, etc." in Article 20 of the Act means the following: |
| 1. | Establishment of industrial infrastructure; |
| 2. | Technology development and commercialization; |
| 3. | Development of human resources; |
| 5. | Support for market development; |
| 6. | Business stabilization of enterprises; |
| 7. | Revitalization of local trading areas and support for small business owners; |
| 8. | Other support deemed necessary by the Minister of Trade, Industry and Energy in response to local industrial crisis and for the recovery of the local economy. |
| (2) | The Minister of Trade, Industry and Energy may request that the heads of the relevant central administrative agencies provide support under the subparagraphs of paragraph (1) to special areas for responding to industrial crisis. |
CHAPTER V SPECIAL CASES CONCERNING SPECIAL AREAS FOR RESPONDING TO INDUSTRIAL CRISIS
| Article 16 (Reduction of or Exemption from Usage Fees or Rents for State and Public Property) |
| (1) | Where usage fees or rents for State property are reduced or exempted under Article 21 of the Act, the rate of reduction or exemption shall be determined by the head of the competent central government agency (including persons delegated or entrusted under Articles 28, 29, and 42 (1) and (4) of the State Property Act; hereafter the same shall apply in this Article) within 100/100 of the usage fees or rents for State property, following consultation with the Minister of Trade, Industry and Energy. |
| (2) | Where usage fees or rents for public property are reduced or exempted under Article 21 of the Act, the rate of reduction or exemption shall be prescribed by ordinance of the competent local government of the relevant public property within the limit of 50/100 of the usage fees or rents for the relevant public property. |
| (3) | Where usage fees or rents for State or public property are reduced or exempted under Article 21 of the Act, the period of reduction or exemption shall be the period during which the area home to the relevant State or public property is designated as a special area for responding to industrial crisis. |
| Article 17 (Special Cases concerning the Subsidy Management Act) |
Specific matters, including projects that may be supported with increased subsidies under Article 24 of the Act and subsidy rates shall be publicly notified by the Minister of Trade, Industry and Energy following consultation with the Minister of Economy and Finance, in comprehensive consideration of the purpose and intent of each project, its relevance to support special areas for responding to industrial crisis, etc.
CHAPTER VI SUPPLEMENTARY PROVISIONS
| Article 18 (Evaluation of Operation of Special Area for Responding to Industrial Crisis) |
| (1) | The standards for evaluating the operation of a special area for responding to industrial crisis under Article 25 (1) of the Act shall be as follows: |
| 1. | The degree of improvements in industry-related indicators, such as the production and employment of the main industry; |
| 2. | The degree of improvements in indicators related to the local economy, such as the number of business suspensions or closures, local commercial districts, and electricity consumption; |
| 3. | Outcomes of the relevant area in the implementation of a plan on areas in industrial crisis; |
| 4. | Outcomes and effects of support provided by the competent local governments. |
| (2) | When conducting an evaluation under Article 25 (1) of the Act, the Minister of Trade, Industry and Energy shall provide a written evaluation on an operational report submitted by a Mayor/Do Governor under Article 10 (8) of the Act; provided, an on-site evaluation may be conducted, if verification at the site is required. |
| Article 19 (Submission of Details regarding Support to Special Areas for Responding to Industrial Crisis) |
| (1) | Pursuant to Article 26 (1) of the Act, the head of the relevant central administrative agency shall submit the details of support, including the following matters, to the Minister of Trade, Industry and Energy every 6 months from the date of the designation of a special area for responding to industrial crisis: |
| 1. | Names and key details of support projects; |
| 2. | Eligibility and duration of support; |
| 3. | Outcomes of support and details of the relevant budget. |
| (2) | The Minister of Trade, Industry and Energy who intends to provide a Mayor/Do Governor with the details of support submitted under paragraph (1) pursuant to Article 26 (2) of the Act shall consult with the heads of the relevant central administrative agencies. |
| Article 20 (Delegation and Entrustment of Authority or Affairs) |
| 1. | Collection and preparation of statistical data related to a fact-finding survey on local industries; |
| 2. | Establishment and operation of a local industry information system; |
| 3. | On-site inspection and collection of data under Article 10 (3) of the Act and Article 6 (4) of this Decree; |
| 4. | Evaluation of the operation of special areas for responding to industrial crisis under Article 25 (1) of the Act. |
| 1. | Support necessary for the effective implementation of plans for the prevention of industrial crisis; |
| 2. | Support for the main industry of an area for preemptively responding to industrial crisis under Article 8 (5) of the Act; |
| 3. | Support for the development of human resources and for research and development activities in a special area for responding to industrial crisis under Articles 17 and 18. |
CHAPTER VII PENALTY PROVISIONS
| Article 21 (Administrative Fines) |
The standards for imposing administrative fines under Article 29 (1) of the Act shall be as specified in the attached Table.
ADDENDA <Presidential Decree No. 32455, Feb. 18, 2022>
Article 1 (Enforcement Date)
This Decree shall enter into force on February 18, 2022.