INFORMATION AND COMMUNICATIONS TECHNOLOGY INDUSTRY PROMOTION ACT
Act No. 9708, May 22, 2009
Act No. 9708, May 22, 2009
CHAPTER Ⅰ GENERAL PROVISIONS
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| Article 1 (Purposes) |
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The purpose of this Act is to enhance the competitiveness of the information and communications technology industry and consequently contribute to the growth of the national economy by establishing the foundation for the promotion of the information and communications technology industry.
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| Article 2 (Definitions) |
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The definitions of terms used in this Act shall be as follows:
| 1. | The term "information and communications" means a series of activities and means for the promotion of informatization, including apparatuses, technologies, and services for collecting, processing, storing, searching, transmitting, receiving, and utilizing information; |
| 2. | The term "information and communications technology industry" means any of the following industries that develop, manufacture, produce, or distribute products for information and communications (hereinafter referred to as "products for information and communications") or that provide services related to such business activities (hereinafter referred to as "services for information and communications"): Provided, That excluded herefrom, are industries that provide services for information and communications under Article 2 (1) 2 of the Act on Promotion of Information and Communications Network Utilization and Information Protection, etc.: |
| (a) | Industries related to computers and apparatuses for information and communications; |
| (e) | The e-learning industry under subparagraph 3 of Article 2 of the E-Learning Industry Development Act; |
| (f) | Industries related to protection of information under subparagraph 6 of Article 3 of the Framework Act on National Informatization; |
| (g) | Other industries specified by Presidential Decree as an industry that creates a value added by utilizing information and communications technology; |
| 3. | The term "information and communications enterprise" means an enterprise that engages in business of developing, manufacturing, producing, or distributing products for information and communications or in business of providing a service related to information and communications ; |
| 4. | The term "information and communications network" means an information and communications system for collecting, processing, storing, searching, transmitting, or receiving information by using telecommunications systems under subparagraph 2 of Article 2 of the Framework Act on Telecommunications or by utilizing telecommunications systems, computers, and technologies for the use of computers. |
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| Article 3 (Duties of State and Local Governments) |
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| (1) | The State shall establish and implement a comprehensive policy necessary for the promotion of the information and communications technology industry and prepare a plan for securing financial resources therefor. |
| (2) | Local governments shall, respectively, prepare a policy necessary for promotion of the information and communications technology industry based on information and communications technology, taking into consideration the State's policy and local specificities. |
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| Article 4 (Relations to other Acts) |
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Except as otherwise provided by any other Act, matters relevant to the promotion of the information and communications technology industry shall be governed by this Act.
CHAPTER Ⅱ PROMOTION OF INFORMATION AND COMMUNICATIONS INDUSTRY
Section 1 Establishment and Implementation of Plan for Promotion of Information and Communications Technology Industry
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| Article 5 (Plan for Promotion of Information and Communications Technology Industry) |
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| (1) | The Minister of Knowledge Economy shall establish and implement a plan for the promotion of information and communications technology industry (hereinafter referred to as "promotion plan"), which shall include the following matters, to set the goals and direction of medium- and long-term plans for the promotion of the information and communications technology industry: |
| 1. | Matters concerning the basic direction of the policy on the promotion of information and communications technology industry; |
| 2. | Matters concerning the policy on the promotion of the information and communications technology industry for each segment of business; |
| 3. | Matters concerning the promotion of development, diffusion, proliferation, and utilization of information and communications technology; |
| 4. | Matters concerning the promotion of standardization of information and communications and the accreditation therefor; |
| 5. | Matters concerning the training of professional human resources for information and communications technology and information and communications technology industry (hereinafter referred to as "professional human resources"); |
| 6. | Matters concerning support for startup and growth of information and communications enterprises; |
| 7. | Matters concerning the stimulation of supply of funds to information and communications enterprises; |
| 8. | Matters concerning the support of information and communications technology industry for international cooperation and entering into overseas markets; |
| 9. | Other matters necessary for the promotion of the information and communications technology industry. |
| (2) | The Minister of Knowledge Economy may establish and implement annual plans within the extent of the promotion plan. |
| (3) | Matters necessary for the establishment and implementation of the promotion plan and annual plans under paragraph (2) and other relevant matters shall be prescribed by Presidential Decree. |
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| Article 6 (Preparation of Statistics) |
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| (1) | The Minister of Knowledge Economy shall prepare and manage statistics on the information and communications technology industry, subject to consultation with the Commissioner of the Korea National Statistical Office, for efficient establishment and implementation of the promotion plan. |
| (2) | The Statistics Act shall apply mutatis mutandis to the preparation of statistics under paragraph (1), but the matters subject to surveys and the scope of surveys and other relevant matters shall be prescribed by Ministerial Decree of Knowledge Economy. |
Section 2 Promotion of Information and Communications Technology
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| Article 7 (Implementation Plan for Promotion of Information and Communications Technology) |
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| (1) | The Minister of Knowledge Economy shall establish and implement an implementation plan for the promotion of information and communications technology, which shall include the following matters, in accordance with the promotion plan for the promotion of information and communications technology: |
| 1. | Matters concerning research on the level of information and communications technology and evaluation and utilization of developed information and communications technology; |
| 2. | Matters concerning smooth distribution of information related to information and communications technology; |
| 3. | Matters concerning facilitation of research and development of information and communications technology and combination and fusion with other technologies; |
| 4. | Matters concerning cooperation, guidance, and transfer of information and communications technology; |
| 5. | Matters concerning facilitation of cooperations between industrial and academic circles for information and communications technology; |
| 6. | Matters concerning training of professional human resources and supply of, and demand for, such human resources; |
| 7. | Matters concerning standardization of information and communications technology and adoption of new information and communications technology; |
| 8. | Matters concerning fostering of institutes or organizations specializing in research on information and communications technology; |
| 9. | Matters concerning international cooperations in information and communications technology; |
| 10. | Other matters necessary for the promotion of information and communications technology. |
| (2) | The Minister of Knowledge Economy may, if necessary for the efficient promotion of matters under paragraph (1), retain a research institute or organization related to the development of information and communications technology and promotion of information and communications technology industry to have it perform relevant work vicariously and may subsidize expenses required for such vicarious performance, as prescribed by Presidential Decree. |
| (3) | Matters necessary for the establishment and implementation of an implementation plan for promotion of information and communications technology under paragraph (1) and other relevant matters shall be prescribed by Presidential Decree. |
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| Article 8 (Designation of Subjects for Research, etc.) |
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| (1) | The Minister of Knowledge Economy may select subjects for research on information and communications technology and designate researchers for such subjects for the research and development of information and communications technology. |
| (2) | Matters necessary for selection of subjects for research and designation of researchers under paragraph (1), subsidization of expenses for research, and other necessary matters shall be prescribed by Presidential Decree. |
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| Article 9 (Support for Commercialization of New Technology, etc.) |
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| (2) | The Minister of Knowledge Economy may collect royalties from any person who uses, transfers, lends, or exports a product that has been commercialized with new technology developed with support under paragraph (1). |
| (3) | Matters necessary for collection and management of royalties under paragraph (2) shall be prescribed by Presidential Decree. |
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| Article 10 (Management and Distribution of Information Related to Information and Communications Technology) |
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| (1) | The Minister of Knowledge Economy shall prepare a scheme for systematic and comprehensive management and distribution of information related to information and communications technology in order to promote information and communications technology industry. |
| (2) | The Minister of Knowledge Economy may, if necessary for systematic and comprehensive management of data related to information and communications technology, request related administrative agencies and national and public research institutes to furnish him or her with data on information and communications technology and related materials. In such cases, the head of an agency or institute shall cooperate as requested, unless there is any exceptional circumstance to the contrary. |
| (3) | The Minister of Knowledge Economy shall carry out programs for distributing information related to information and communications technology to expediate and facilitate the use of such information. |
| (4) | Further specific scope of related data on information and communications technology subject to distribution under paragraph (3) shall be prescribed by Presidential Decree. |
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| Article 11 (Prior Notice of Technology) |
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| (1) | The Minister of Knowledge Economy may give prior notification of new technology for information and communications, taking into consideration the long-term direction of development of information and communications technology industry and changes in the environment for information and communications technology. |
| (2) | Matters necessary for the details and method of, and procedures for, the prior notice under paragraph (1) and other relevant matters shall be prescribed by Ministerial Decree of Knowledge Economy. |
Section 3 Facilitation of Standardization of Information and Communications and Accreditation Therefor
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| Article 12 (Facilitation of Standardization of Information and Communications) |
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The Minister of Knowledge Economy shall prepare a policy necessary for the following matters in order to promote the information and communications technology industry:
| 1. | Standardization of information and communications technology; |
| 2. | Standardization of products for information and communications; |
| 3. | Standardization of information and communications networks; |
| 4. | Standardization of services for information and communications; |
| 5. | Standardization for sharing information; |
| 6. | Other matters necessary for the standardization of information and communications . |
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| Article 13 (Establishment and Accreditation of Standards for Information and Communications) |
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| (1) | The Minister of Knowledge Economy may establish and publicly notify standards(hereinafter referred to as "standards for information and communications") for technology, products, networks, and services related to information and communications (hereinafter referred to as "information and communications technology, etc. ") as industrial standards under Article 5 (1) of the Industrial Standardization Act in order to promote information and communications technology industry and may recommend information and communications enterprises, public agencies, research institutes, and other entities under Article 4 of the Act on the Management of Public Institutions (hereinafter referred to as "public institutions") to use the standards. |
| (2) | Matters concerning the establishment of standards for information and communications, the accreditation of information and communications technology, etc. for information and communication conforming to information and communication standards, and the use and follow-up management of accreditation marks shall be governed by the Industrial Standardization Act. |
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| Article 14 (Assistance in Accreditation of Information and Communications Technology) |
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The Minister of Knowledge Economy shall prepare necessary policy to ensure information and communications technology that has been newly developed by an information and communication enterprise, a public agency, a research institute, or any other entity can have its performance accredited promptly to have its reliability recognized.
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| Article 15 (Facilitation of International Standardization of Information and Communications Technology) |
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The Government shall prepare a policy necessary for maintaining and strengthening cooperative systems with international standard organizations or international standard institutes related to information and communication standards and for making it possible to have domestic information and communication standards adopted as international standards.
Section 4 Establishing Foundation for Promotion of Information and Communications Technology Industry
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| Article 16 (Fostering Professional Human Resources) |
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The Minister of Knowledge Economy shall prepare a policy on the following matters necessary for fostering professional human resources, required for promotion of information and communications technology industry as follows:
| 1. | Research on the actual demand for professional human resources and forecast for the medium- and long-term supply of, and demand for, such human resources; |
| 2. | Establishment and support of training institutes for professional human resources; |
| 3. | Support for development and distribution of educational programs for fostering professional human resources; |
| 4. | Support for the firm settlement of qualification systems for information and communication technology and the supply of, and demand for, professional human resources; |
| 5. | Support of educational programs conducted by schools at different levels and other educational institutes on information and communication technology and information and communications technology industry; |
| 6. | Other matters necessary for fostering professional human resources. |
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| Article 17 (Promotion of International Cooperation in Information and Communications Technology Industry) |
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| (1) | The Minister of Knowledge Economy shall ascertain international movements in relation to information and communication technology and information and communications technology industry and promote international cooperation. |
| (2) | The Minister of Knowledge Economy may provide support to activities for international exchanges of information and communication technology and professional human resources and international joint research and development projects in order to promote international cooperation in information and communications technology industry. |
| (3) | The Minister of Knowledge Economy may provide support to international cooperations of the private sector in relation to information and communication technology and information and communications technology industry. |
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| Article 18 (Development of Complexes for Promotion of Information and Communications Technology Industry) |
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| (1) | The Government shall prepare a policy necessary for development and supply of industrial sites and for supporting infrastructure for information and communications technology industry to lay the foundation for information and communications technology industry and shall preferentially provide support to private individuals, in cases where they intend to jointly develop a complex for the promotion of information and communications technology industry. |
| (2) | Matters necessary for the support of complexes for promotion of information and communications technology industry shall be prescribed by Presidential Decree. |
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| Article 19 (Improvement of Structure of Distribution and Facilitation of Diffusion) |
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| (1) | The Minister of Knowledge Economy may provide support to projects for expansion of distribution facilities and specialization of distributors in order to improve the structure of distribution of products and services related to information and communications. |
| (2) | The Government may prepare a policy for diffusion of products and services for information and communications to State agencies, local public governments, and public agencies (hereinafter referred to as "State agencies, etc.") and provide support thereto. |
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| Article 20 (Support for Development of Contents of Information) |
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In order to secure national competitiveness or enhance public interest, the Minister of Knowledge Economy may provide support, financial, technical, or otherwise, as necessary, to any person who develops information content distributable through information and communications networks.
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| Article 21 (Facilitation of Development of Applied Services via Information and Communications Services) |
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| (1) | The Government may provide support, financial, technical, or otherwise, as necessary, to any State agency, etc. that has developed and provides any service that makes work process more efficient, automated, and upgraded by utilizing information and communications networks (hereinafter referred to as "applied services via information and communications networks". |
| (2) | The Minister of Knowledge Economy may provide support, financial, technical, or otherwise, as necessary, to the private sector in order to facilitate private sector's development of applied services via information and communications networks. |
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| Article 22 (Support of Related Institutions) |
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| (1) | The Minister of Knowledge Economy may subsidize expenses incurred by any institution or organization related to information communication technology or information and communications technology industry for carrying out any of the following affairs: |
| 1. | Surveys and statistics related to information communication technology or the information and communications technology industry; |
| 2. | Development of information and communications technology; |
| 3. | Fostering professional human resources; |
| 4. | Surveys and research on policies related to information and communications technology or information and communications technology industry; |
| 5. | Research, development, and diffusion of standards for information and communications; |
| 6. | Support for the development of information content distributable through information and communications networks; |
| 7. | Supply of various kinds of related data on information communication technology or information communication industry and establishment of information distribution systems; |
| 8. | Overseas cooperation related to information and communications technology or information and communications technology industry; |
| 9. | Support for startup, legal affairs, accounting, business management of information and communications enterprises; |
| 10. | Improvement of the structure of distribution of information and communications technology, etc. for information and communications and facilitation of the diffusion thereof; |
| 11. | Other matters necessary for laying the foundation for information and communications technology industry. |
| (2) | The procedure for, and the method of, the subsidization for expenses under paragraph (1) and other necessary matters shall be prescribed by Ministerial Decree of Knowledge Economy. |
Section 5 Policy on Support of Information and Communications Enterprises
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| Article 23 (Technical Guidance) |
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| (1) | The Minister of Knowledge Economy may, if necessary for securing the quality of products and services that information and communications enterprises develop, manufacture, produce, distribute, or provide for information and communications, provide them with technical guidance for standardization of technology, technical training, supply of technical information, or cooperation with international organizations. |
| (2) | The entities eligible for technical guidance under paragraph (1), details of such technical guidance, and other necessary matters shall be prescribed by Presidential Decree. |
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| Article 24 (Supply of Various Kinds of Information) |
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The Minister of Knowledge Economy may collect various kinds of knowledge and information, such as information about domestic and overseas markets, technology, and business management for information and communications technology industry and build up a database with this knowledge and information to provide them to information and communications enterprises.
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| Article 25 (Facilitation of Information and Communications Enterprises Entering into Overseas Markets) |
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The Minister of Knowledge Economy shall prepare and promote necessary policy for helping domestic information and communications enterprise actively entering into overseas markets to conduct business activities thereover.
Section 6 Information Technology Industry Promotion Agency
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| Article 26 (Establishment, etc. of the Information Technology Industry Promotion Agency) |
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| (1) | A Information Technology Industry Promotion Agency shall be (hereinafter referred to as the "Industry Promotion Institute") shall be established in order to efficiently support information and communications technology industry. |
| (2) | The Industry Promotion Institute shall be a legal entity. |
| (3) | The Industry Promotion Institute may establish local offices and affiliates for carrying out its business activities under subparagraphs of Article 27, as stipulated by its articles of incorporation. |
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| Article 27 (Business Activities) |
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The Industry Promotion Institute shall carry out the following business activities:
| 1. | Support for research on, and establishment of, policies on information and communications technology industry; |
| 2. | Fostering professional human resources; |
| 3. | Projects for laying the foundation, such as fostering and development of, and supportive facilities for, information and communications technology industry; |
| 4. | Support for the startup and growth of information and communications technology industry; |
| 5. | Support for stimulation of, and marketing activities for, distribution markets for development of information and communications technology industry; |
| 6. | Activities for analysis of movements in information and communications technology industry, preparation of statistics, distribution of information, and services; |
| 7. | Activities for fusion and utilization of information and communications technology; |
| 8. | Support for international exchanges and cooperation in connection with information and communications technology industry and entering into overseas markets; |
| 9. | Publication and public relations activities for the information and communications technology industry; |
| (a) | Surveys and research on policies and systems for promotion of technology for software; |
| (b) | Activities necessary for improvement of software business operators' competence in quality management and expertise; |
| 12. | Development of technology necessary for development of the e-learning industry under the E-Learning Industry Development Act and research on the standardization of such technology; |
| 13. | Business affairs specified as those of the Industry Promotion Institute, or business affairs entrusted to the Industry Promotion Institute, by this Act or any other Act and subordinate statutes; |
| 14. | Other business activities specified by Presidential Decree as necessary for accomplishment of objectives of the establishment of the Industry Promotion Institute. |
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| Article 28 (Financial Resources) |
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| (1) | The Government may contribute or subsidize all, or some expenses for establishment and operation of the Industry Promotion Institute within the extend of budget or funds. |
| (2) | The Industry Promotion Institute may engage in projects for profit by obtaining approval of the Minister of Knowledge Economy, to raise funds for expenses necessary for accomplishing objectives under Article 26 (1). |
| (3) | The Industry Promotion Institute may accept contributions from business operators of electronic commerce under the subparagraph 6 of Article 2 of the Framework Act on Electronic Commerce so as to appropriate such contributions for expenses involved in operation and implementation of business of the Industry Promotion Institute with regard to business activities under the subparagraph 11 of Article 27.
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| (4) | The Industry Promotion Institute may charge royalties to any person who uses standards developed by it pursuant to subparagraph 11 (b) of Article 27.
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| (5) | The State or any local government may, if necessary for establishment and operation of the Industry Promotion Institute, lease any State-owned or public property without consideration. |
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| Article 29 (Guidance for and Supervision of Business) |
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| (1) | The Minister of Knowledge Economy shall guide and supervise the Industry Promotion Institute with regard to the following business affairs and may, if deemed necessary, require it to report matters concerning its business, accounting, or property or assign public officials under his or her control to inspect the Industry Promotion Institute's books of account, documents, facilities, or any other articles: |
| 1. | Matters concerning appropriateness of carrying out any project entrusted by the Minister of Knowledge Economy pursuant to any Act and subordinate statutes or any business affair directly related to affairs under the control of the Ministry of Knowledge Economy; |
| 2. | Matters concerning compliance with guidelines for business management under Article 50 of the Act on the Management of Public Agencies; |
| 3. | Formulation of an annual business plan and budget; |
| 4. | Results of business performance and settlement of accounts for each year; |
| 5. | Other matters specified by other Acts and subordinate statutes. |
| (2) | The Minister of Knowledge Economy may, when he or she discovers any illegal or improper act as a result of reporting or inspection under paragraph (1), order the Industry Promotion Institute to rectify such act. |
| (3) | Public officials who conduct an inspection pursuant to paragraph (1) shall carry identification indicating their authority and produce it to people concerned. |
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| Article 30 (Prohibition of Use of Similar Names) |
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No one other than the Industry Promotion Institute shall use the name "Information Technology Industry Promotion Agency" or any similar name.
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| Article 31 (Application Mutatis Mutandis of the Civil Act) |
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Except as otherwise provided for by this Act and the Act on the Management of Public Agencies, provisions governing incorporated foundations of the Civil Act shall apply mutatis mutandis to the Industry Promotion Institute.
CHAPTER Ⅲ FOSTERING OF INDUSTRY FOR SECURITY OF KNOWLEDGE AND INFORMATION
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| Article 32 (Fostering of Industry for Security of Knowledge and Information) |
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| (1) | The Minister of Knowledge Economy shall prepare a policy necessary for fostering the manufacturing or the product distribution industry with security technology, such as technology for encryption, authentication, identification, and surveillance, (hereinafter referred to as "security technology") applied thereto (hereinafter referred to as "security products"), or the industry, the business of which provides all services for counteracting disasters, calamities, or crimes by utilizing security technology or security products (hereinafter referred to as "knowledge and information security") and for enhancing the competitiveness of such industry. |
| (2) | The Minister of Knowledge Economy may provide support, financial, technical, or otherwise, as necessary, for promotion by the private sector of the knowledge and information security industry in order to efficiently implement a policy under paragraph (1). |
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| Article 33 (Designation of Consulting Companies Specializing in Security of Knowledge and Information) |
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| (1) | The Minister of Knowledge Economy may designate any person deemed able to perform the following business affairs in a safe and reliable manner as a consulting company specializing in security of knowledge and information (hereinafter referred to as "consulting company specializing in knowledge and information security"): |
| 1. | Analysis and assessment of weaknesses in main information and communications infrastructure designated pursuant to Article 8 of the Act on the Protection of Information and Communications Infrastructure (hereinafter referred to as "main information and communications infrastructure"); |
| 2. | Establishment of protective measures for main information and communications infrastructure. |
| (2) | Persons qualifiable for designation of a consulting company specializing in knowledge and information security are limited to legal entities. |
| (3) | The Minister of Knowledge Economy may, when he or she designates a consulting company specializing in knowledge and information security, prescribe the effective period of such designation as three years and may re-designate the consulting company at the end of the effective period. |
| (4) | Necessary matters concerning the designation under paragraph (1), the criteria and procedure for, and the method of, re-designation under pararaph (3), and other relevant matters shall be prescribed by Ministerial Decree of Knowledge Economy. |
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| Article 34 (Disqualification) |
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No one falling under any of the following subparagraphs are qualifiable as a consulting company specializing in knowledge and economy security:
| 1. | A legal entity, any executive of which falls under any of the following items: |
| (a) | A minor or a person declared incompetent or quasi-incompetent; |
| (b) | A person who has been declared bankrupt, but is not yet reinstated; |
| (c) | A person in whose case two years have not passed since a sentence of imprisonment without prison labor or any heavier punishment pronounced upon him or her was completely executed (or is deemed completely executed) or discharged; |
| (d) | A person upon whom a sentence of suspended imprisonment without prison labor or any heavier punishment was pronounced but who is still in the period of suspension; |
| (e) | A person who has worked as an executive for a legal entity whose designation was cancelled pursuant to any provision of Article 37 (1) 1 and 3 through 5. |
| 2. | A corporation in whose case three years have not passed since the designation was cancelled under Article 37 (1) 1 or subparagraphs 3 through 5. |
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| Article 35 (Transfer or Merger of Consulting Companies Specializing in Knowledge and Information Security) |
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| (1) | Each consulting company specializing in knowledge and information security shall, if any of the following events occurs, report it to the Minister of Knowledge Economy, as prescribed by Ministerial Decree of Knowledge Economy: |
| 1. | If it transfers its business for the affairs under subparagraphs of Article 33 (1) to any third party; |
| 2. | Legal entities, each of whom is a consulting company specializing in knowledge and information security merge. |
| (2) | The Minister of Knowledge Economy shall, when he or she receives a report under paragraph (1), examine as to whether the transferee or the legal entity newly established or surviving upon merger meets the criteria for the designation under Article 33 (4) and whether any ground for disqualification is not applicable to such transferee or legal entity. |
| (3) | A transferee or legal entity specified in paragraph (2) succeeds to the status of the relevant consulting companies specializing in security of knowledge and information at the time the Minister of Knowledge Economy receives the relevant report. |
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| Article 36 (Shutdown, Discontinuance, or Resumption of Business) |
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Any consulting company specializing in knowledge and information security that intends to shut down, discontinue, or resume its business shall report such intention to the Minister of Knowledge Economy by no later than 30 days from the date on which it intends to shut down, discontinue, or resume its business, as prescribed by Ministerial Decree of Knowledge Economy.
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| Article 37 (Cancellation of Designation of Consulting Company Specializing in Knowledge and Information Security, etc.) |
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| (1) | The Minister of Knowledge Economy may, if a consulting company specializing in knowledge and information security falls under any of the following subparagraphs, cancel the designation of the consulting company specializing in knowledge and information security or order it to suspend its business completely or partially for a period not exceeding three months, as prescribed by Ministerial Decree of Knowledge Economy: Provided, That if it falls under any of subparagraphs 1 through 3 the designation of consulting company specializing in security of knowledge and information must be cancelled without any exception: |
| 1. | If it has obtained the designation by deceit or in any other fraudulent way; |
| 2. | If it has failed to meet the criteria for designation under Article 33 (4); |
| 3. | If it falls under any subparagraph of Article 34 (excluding cases where an executive has been replaced with another person within three months from the date on which the executive became disqualified; |
| 4. | If it has misused or abused any information which became known to it in the course of performance of business to bring about a malfunction in operation of main information and communications infrastructure; |
| 5. | If it has failed to preserve records and data in a safe way in violation of Article 39 (1). |
| (2) | The Minister of Knowledge Economy shall hold a hearing, whenever he or she intends to cancel the designation of a consulting company specializing in knowledge and information security. |
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| Article 38 (Reporting, etc.) |
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| (1) | The Minister of Knowledge Economy may, if he or she deems it particularly necessary for protection of information about main information and communications infrastructure, require any consulting company specializing in knowledge and information security to submit relevant documents or data. |
| (2) | Every consulting company specializing in knowledge and information security shall, upon receiving such demand for relevant documents or data pursuant to paragraph (1), comply with the demand, unless there is any exceptional circumstance to the contrary. |
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| Article 39 (Preservation of Records and Data) |
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| (1) | Every consulting company specializing in knowledge and information security shall safely preserve records and data prepared in connection with its work for analysis and assessment of weaknesses of main information and communications infrastructure. |
| (2) | Any consulting company specializing in knowledge and information security whose designation is cancelled pursuant to Article 37 or that discontinues its business shall return records and data under paragraph (1) to the head of the agency responsible for the management of main information and communications infrastructure under Article 5 (1) of the Act on the Protection of Information and Communications Infrastructure or destroy such records and data. |
| (3) | Matters necessary for destruction of relevant records and data under paragraph (2) shall be prescribed by Ministerial Decree of Knowledge Economy. |
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| Article 40 (Association of Industry for Security of Knowledge and Information) |
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| (1) | Persons who are engaged in any business related to the industry for security of knowledge and information may establish an association of industry for security of knowledge and information by obtaining authorization of the Minister of Knowledge Economy. |
| (2) | The association of industry for security of knowledge and information shall be a legal entity. |
| (3) | Necessary matters concerning the authorization procedure for the association of industry for security of knowledge and information, the business and supervision of such association, and other relevant matters shall be prescribed by Presidential Decree. |
| (4) | Except as otherwise provided for by this Act, provisions governing incorporated associations of the Civil Act shall apply mutatis mutandis to the association of industry for security of knowledge and information. |
CHAPTER Ⅳ FUND FOR PROMOTION OF INFORMATION AND COMMUNICATIONS
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| Article 41 (Establishment of Fund for Promotion of Information and Communications) |
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The Government shall establish a fund for promotion of information and communications (hereinafter referred to as "Fund") in order to support the promotion of information and communications.
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| Article 42 (Sources of Fund) |
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The Fund shall be raised from the following sources:
| 1. | Contributions and loans from the Government; |
| 4. | Earnings from the operation of the Fund; |
| 5. | Borrowings and other revenue. |
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| Article 43 (Imposition and Collection of Charges for Research and Development) |
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| (1) | In order to develop information and communications technology and to promote information and communications technology industry, the Minister of Knowledge Economy may impose charges at the rate specified by Presidential Decree (hereinafter referred to as "charge") on any of the following persons within the extent of 1/100 of his or her annual sales (excluding sales of telecommunications service provided by using an alloted frequency if the consideration for the allotted frequency has been paid in accordance with Article 11 of the Radio Waves Act) and collect such charges accordingly: |
| 1. | A key telecommunications business operator under Article 5 of the Telecommunications Work Business Act; |
| 2. | A special telecommunications business operator under Article 19 of the Telecommunications Work Business Act. |
| (2) | Necessary matters concerning the guidelines and procedure for the calculation of charges, such as applicable rates of charge limitations on collection, and other relevant matters shall be prescribed by Presidential Decree. |
| (3) | The Minister of Knowledge Economy may exempt a person from charges or abate the charge for a person, if the scale of the business that the person runs and the person's ability to bear the burden of charges does not reach a specific level, as prescribed by Presidential Decree. |
| (4) | The Minister of Knowledge Economy shall, if any person who is obligated to pay charges fails to pay charges by the deadline for payment, demand the person to pay it within a given period of not less than 15 days. In such cases, an additional charge prescribed by Presidential Decree shall be imposed and collected within the extent of 80/100 of charges in arrears. |
| (5) | The Minister of Knowledge Economy may, if a person who was demanded to pay charges and an additional charge pursuant to paragraph (4) fails to pay such charges, collect the charges in accordance with practices for the disposition of default national taxes. |
| (6) | Charges and additional charge collected pursuant to paragraphs (1) and (4) shall belong to the Fund. |
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| Article 44 (Use of Fund) |
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| (1) | The Fund shall be used for any of the following projects and activities carried out in accordance with the promotion plan: |
| 1. | Projects for research on, and development of, information and communications (including radio wave broadcasting; the same shall apply hereafter in this paragraph); |
| 2. | Projects for development, establishment, and diffusion of standards for information and communications; |
| 3. | Projects for fostering human resources for information and communications; |
| 4. | Projects for laying the foundation for information and communications technology industry, except projects specified in subparagraphs 1 through 3; |
| 7. | Activities incidental to projects specified in subparagraphs 1 through 4. |
| (2) | The Minister of Knowledge Economy may restitute a portion spent for any purpose, other than the originally contemplated purpose out of the Fund from a person to whom the Fund had been granted but who spent such money for any purpose, other than the originally contemplated purpose of use. |
| (3) | The restitution of the Fund under paragraph (2) shall be carried out in accordance with practices for the disposition of default national taxes. |
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| Article 45 (Operation and Management of Fund) |
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| (1) | The Fund shall be operated and managed by the Minister of Knowledge Economy. |
| (2) | The Minister of Knowledge Economy may entrust the Industry Promotion Institute or any other institution or organization related to information and communications technology industry with part of administrative affairs for the operation and management of the Fund, as prescribed by Presidential Decree. |
| (3) | Matters necessary for operation and management of the Fund shall be prescribed by Presidential Decree in addition to the provisions of paragraphs (1) and (2). |
CHAPTER Ⅴ SUPPLEMENTARY PROVISONS
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| Article 46 (Annual Reporting on Promotion of Information and Communications Technology Industry) |
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| (1) | The Minister of Knowledge Economy shall prepare a report on the policy for promotion of information and communications technology industry and shall submit it to the National Assembly before the beginning of the regular session each year. |
| (2) | The report under paragraph (1) shall contain the following matters: |
| 1. | The current status of domestic and overseas information and communications technology industries; |
| 2. | A promotion plan and an implementation plan for the promotion of information and communications technology under Article 7 (1); |
| 3. | Policies that have been implemented and is planned to be implemented for the promotion of information and communications technology industry; |
| 4. | Other important matters concerning information and communications technology industry. |
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| Article 47 (Delegation and Entrustment of Authority) |
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| (1) | The Minister of Knowledge Economy may delegate part of his or her authority under this Act to heads of affiliates under his or her control, as prescribed by Presidential Decree. |
| (2) | The Minister of Knowledge Economy may entrust the Industry Promotion Institute or any other institution or organization deemed and publicly notified by the Minister of Knowledge Economy as specializing in the information and communications technology industry with part of his or her authority under this Act, as prescribed by Presidential Decree. |
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| Article 48 (Duty of Confidentiality) |
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No one who carries out, or who has carried out, any business affairs entrusted pursuant to this Act shall divulge any confidential information known to him or her in the course of his or her performance of the business affairs.
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| Article 49 (Statutory Treatment as Public Officials in Application of Penal Provisions) |
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Executives and employees of the Industry Promotion Institute and executives and employees of an institution or organization, who engage in business affairs entrusted by the Minister of Knowledge Economy pursuant to Article 45 (2) or 47 (2), are deemed as public officials for the purposes of Articles 129 through 132 of the Criminal Act.
CHAPTER Ⅵ PENAL PROVISIONS
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| Article 50 (Penal Provisions) |
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Any person who has divulged any confidential information which has become known to him or her in the course of performing his or her performance entrusted business affairs in violation of Article 48 shall be punishable by imprisonment with prison labor for not more than three years or by a fine not exceeding thirty million won.
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| Article 51 (Joint Penal Provisions) |
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If the representative of a legal entity or an agent, an employee, or a servant of a legal entity or a private individual has committed an offense under Article 50 in the scope of the business of the legal entity or the private individual, not only shall such actor be punishable accordingly, but the legal entity or the private individual shall also be punishable by the fine prescribed in the relevant Article: Provided, That the foregoing sentence shall not apply to cases where a legal entity or a private individual had not neglected reasonable care and supervision in connection with the relevant matter in order to prevent such offense.
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| Article 52 (Fines for Negligence) |
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| (1) | Any person who falls under any of the following subparagraphs shall be punishable by a fine for negligence not exceeding ten million won: |
| 1. | A person who has failed to file a report in accordance with Article 36;
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| 2. | A person who has failed to submit relevant documents or data, or who has submitted a false document or data, in violation of Article 38 (2); |
| 3. | A person who has failed to return or destroy records and data in violation of Article 39 (2). |
| (2) | Any person who has used the name "National Information Technology Promotion Agency" or any similar name in violation of Article 30 shall be punishable by a fine for negligence not exceeding five million won. |
| (3) | Fines for negligence under paragraph (1) or (2) shall be imposed and collected by the Minister of Knowledge Economy, as prescribed by Presidential Decree. |
ADDENDA
Article 1 (Enforcement Date)
This Act shall enter into force three months after the date of its promulgation: Provided, That Article 2 of the Addenda shall enter into force on the date of its promulgation.
Article 2 (Preparation for Establishment of the Industry Promotion Institute)
| (1) | The Minister of Knowledge Economy shall establish a committee for the establishment of the Industry Promotion Institute (hereinafter referred to as the "organizational committee") to have an organizational committee for carrying out administrative affairs for the dissolution of the following institutes and the establishment of the Industry Promotion Institute: |
| 3. | The Institute for Information Technology Advancement under Article 35-2 of the Framework Act on Information Promotion. |
| (2) | The organizational committee shall be comprised of five committee members or less, including one chairperson, and the chairperson shall be commissioned by the Minister of Knowledge Economy from among committee members. |
| (3) | Initial executives, except the auditor, of the Industry Promotion Institute shall be appointed by the Minister of Knowledge Economy from among persons recommended by the organizational committee, and the initial auditor of the Industry Promotion Institute shall be appointed by the Minister of Strategy and Finance from among persons recommended by the organizational committee. In such cases, the organizational committee is deemed the committee for recommendation of executives for the appointment of initial executives of the Industry Promotion Institute. |
| (4) | The organizational committee shall prepare the Industry Promotion Institute's articles of incorporation and shall file for the registration of incorporation of the Industry Promotion Institute with joint signatures of committee members thereon without delay, subject to prior authorization of the Minister of Knowledge Economy. |
| (5) | The organizational committee shall, once the head of the Industry Promotion Institute is appointed, transfer administrative affairs to him or her immediately. Members of the organizational committee are deemed dismissed from service upon completion of the transfer. |
| (6) | Expenses incurred in the establishment of the Industry Promotion Institute shall be contributed equally by the institutes specified in paragraph (1) (hereinafter referred to as the "Korea Software Industry Promotion Agency and other related institutes"). |
Article 3 (Transitional Measure concerning Establishment of the Industry Promotion Institute)
| (1) | Notwithstanding provisions governing the dissolution and liquidation of legal entities of the Civil Act that shall apply mutatis mutandis to relevant Acts, the Korea Software Industry Promotion Agency and other related institutes are deemed dissolved simultaneously at the time the Industry Promotion Institute is established, and the Industry Promotion Institute shall succeed comprehensively to all rights and obligations of the Korea Software Industry Promotion Agency and other related institutes. |
| (2) | The value of property to which the Industry Promotion Institute shall succeed pursuant to paragraph (1) shall be determined by the book value as at the day immediately preceding the date of registration of establishment. |
| (3) | Names of the Korea Software Industry Promotion Agency and other related institutes already recorded in registers and other official records at the time when this Act enters into force are deemed the name of the Industry Promotion Institute. |
| (4) | Any act already performed by or in relation to the Korea Software Industry Promotion Agency or any other related institute before this Act enters into force is deemed an act performed by or in relation to the Industry Promotion Agency. |
| (5) | Employees of the Korea Software Industry Promotion Agency and other related institutes become employees of the Industry Promotion Institute, as determined by the organizational committee. |
Article 4 (Transitional Measure concerning Designation of Public Agency)
The designation of the Korea Software Industry Promotion Agency and other related institutes as public agencies, already made by the Minister of Knowledge Economy pursuant to the Act on the Management of Public Agencies at the time this Act enters into force, is deemed the designation of the Industry Promotion Institute under this Act.
Article 5 (Transitional Measure concerning Standards and Accreditation)
Article 6 (Transitional Measure concerning Designation of Accrediting Institutions)
Article 7 (Transitional Measure concerning Designation of Consulting Companies Specializing in Protection of Information)
Persons designated by the Minister of Knowledge Economy as consulting companies specializing in protection of information pursuant to Article 17 of the former Act on the Protection of Information and Communications Infrastructure at the time this Act enters into force are deemed consulting companies specializing in knowledge and information security designated pursuant to Article 17. In such cases, the effective period of the designation as a consulting company specializing in knowledge and information security begins on the day on which the effective period began in accordance with the former Act and subordinate statutes. Article 8 (Transitional Measure concerning Korea Information Security Industry Association)
Article 9 (Transitional Measure concerning Fund)
The Fund for the promotion of information and communications, formed pursuant to Article 33 of the former Framework Act on Informatization Promotion at the time this Act enters into force, is deemed the Fund under this Act.
Article 10 Omitted.
Article 11 (Transitional Measure Following Amendments of other Acts)
Imposition of fines for negligence on offences already committed before this Act enters into force shall be governed by Article 30 (1) 3 through 5 of the former Act on Protection of Informatization and Communications Infrastructure.
Article 12 (Relations to other Acts and Subordinate Statutes)
| (1) | A citation of the former Framework Act on Informatization Promotion, Act on the Protection of Information and Communications Infrastructure, or Framework Act on Telecommunications or any provision thereof by any other Act or subordinate statute in force at the time this Act enters into force shall be deemed to be a citation of this Act or the corresponding provision hereof in lieu of the previous provision, if such corresponding provision exists herein. |
| (2) | A citation of the Korea Software Industry Promotion Agency or any other related institute by any other Act or subordinate statute in force at the time when this Act enters into force shall be deemed a citation of the Industry Promotion Institute (except where a matter cited is related to the assignments of the Institute for Information Technology Advancement for research and development, which shall be transferred to the Korea Institute for Advancement of Technology and the Korea Evaluation Institute of Industrial Technology pursuant to Article 6 (3) of the Addenda to the partially amended Industrial Technology Innovation Promotion Act (Act No. 9369)). |
Last updated : 2010-03-22