DEFENSE ACQUISITION PROGRAM ACT
Act No. 10218, Mar. 31, 2010
Act No. 7845, Jan. 2, 2006
Amended by Act No. 8486, May 25, 2007
Act No. 8852, Feb. 29, 2008
Act No. 9561, Apr. 1, 2009
Act No. 10218, Mar. 31, 2010
CHAPTER I GENERAL PROVISIONS
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| Article 1 (Purpose) |
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The purpose of this Act is to seek to strengthen the competitiveness of the defense industry, and to ultimately contribute to the promotion of the advanced strong military and development of the national economy, by prescribing matters concerning the execution of defense acquisition programs, such as the improvement of defense capabilities, promotion of the defense industry, procurement of munitions, etc. in order to establish a foundation for self-reliant national defense.
[This Article Wholly Amended by Act No. 10218, Mar. 31, 2010]
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| Article 2 (Basic Principles) |
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The basic principles of this Act are to expand systems and capabilities for the defense acquisition programs to ensure national security, and to maintain preparedness for self-reliant national defense and expand potential for economic growth by strengthening the competitiveness of the defense industry through securing transparency, speciality and efficiency of defense acquisition programs.
[This Article Wholly Amended by Act No. 10218, Mar. 31, 2010]
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| Article 3 (Definitions) |
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The definitions of terms used in this Act shall be as follows:
<Amended by Act No. 9561, Apr. 1, 2009>
| 1. | The term "project for improvement of defense capability" means the purchasing, and research and development including new development, improvement of performance, etc., of weapons systems for the purpose of enhancing military force, and the installation, etc. of facilities accompanying them; |
| 2. | The term "munitions" means the materials acquired to be used and administered by the Ministry of National Defense and military units or organizations under the direct control of the Ministry, or army, navy and air force (hereinafter referred to as "each service"), which is classified into weapons systems and non-weapon systems; |
| 3. | The term "weapons systems" means the integration of weapons that show fighting capability in the battlefield, such as guided weapons, aircraft, naval vessels, etc., and all sorts of elements, such as equipment, parts, facilities, software, etc. necessary for the operation thereof, which are prescribed by Presidential Decree; |
| 4. | The term "non-weapon system" means all sorts of elements, such as equipment, parts, facilities, software, other materials, etc. other than a weapon system; |
| 5. | The term "acquisition" means procurement of munitions by purchasing (including lease; hereinafter the same shall apply) or procurement through research, development and manufacture; |
| 6. | The term "offset trade" means trade where a condition of reciprocal service, such as transfer of relevant knowledge, technology, etc., the overseas export of domestic weapons, equipment, parts, etc. is attached when purchasing weapons, equipment, etc. from abroad; |
| 7. | The term "defense materials" means materials designated pursuant to the provisions of
Article 34 from among the munitions;
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| 8. | The term "defense industry" means the manufacture, repair, processing, assembling, testing, maintenance, recycling, betterment or remodeling (hereinafter referred to as "manufacture") or research and development of defense materials; |
| 9. | The term "defense contractor" means an enterprise that manufactures defense materials, so designated pursuant to the provisions of
Article 35;
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| 10. | The term "specialized research institute" means an organization entrusted by the Administrator of the Defense Acquisition Program Administration with the research and development, testing and measurement of defense materials, the manufacture and authorization of machinery and tools for defense materials, and the development of software relating to the business analysis of defense contractors or the defense industry; |
| 11. | The term "defense industry facilities" means land and fixtures (including equipment and instruments) thereon, which are provided for the research and development or manufacture of defense materials by defense contractors or specialized research institutes. |
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| Article 4 (Relationship with other Acts) |
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Except for cases expressly provided for in other Acts regarding defense acquisition programs, the provisions of this Act shall apply.
CHAPTER II TRANSPARENCY AND SPECIALIZATION IN EXECUTION OF DEFENSE AQUISITION PROGRAMS
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| Article 5 (Real-Name Policy System and Information Disclosure) |
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| (1) | With regard to the determination or execution of major policies on defense acquisition programs, the Minister of National Defense and the Administrator of the Defense Acquisition Program Administration shall implement the real-name policy system that records and preserves the matters, such as the post, rank, name and opinion of the participants in the determination or implementation of major policies, various types of plans and reports, the details of discussions and conclusions of meetings, public hearings, etc. |
| (2) | In promoting defense acquisition programs, the Minister of National Defense and the Administrator of the Defense Acquisition Program Administration shall disclose information on procedures and details of decision making. In such cases, the Official Information Disclosure Act shall apply to the information disclosure. |
| (3) | Matters necessary for the methods, etc. of implementation of the real-name policy system pursuant to paragraph (1) shall be prescribed by Presidential Decree. |
| (4) | The Minister of National Defense and the Administrator of the Defense Acquisition Program Administration shall submit without delay, to the relevant standing committee of the National Assembly, the outcomes of analysis and evaluation, and outcomes of incorporating them into polices, in respect of projects for the improvement of defense capability, the total project cost of which is not less than 500 billion won (50 billion won in cases of research and development), among the outcomes of analysis and evaluation conducted pursuant to Articles 23 and 24. <Added by Act No. 10218, Mar. 31, 2010> |
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| Article 6 (Integrity Pledge System and Ombudsman System) |
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| (1) | In order to enhance transparency and fairness in the execution of defense acquisition programs, the Minister of National Defense and the Administrator of the Defense Acquisition Program Administration shall cause the persons listed in the following subparagraphs to submit pledge of integrity under the conditions as prescribed by Presidential Decree: |
| 1. | Public officials assigned to the Defense Acquisition Program Administration; |
| 2. | Members of the Defense Acquisition Program Promotion Committee and subcommittees pursuant to the provisions of Articles 9 and 10; |
| 3. | Officers and staff of the Agency for Defense Development (hereinafter referred to as the Agency for Defense Development) pursuant to the provisions of the Agency for Defense Development Act and the Agency for Defense Technology and Quality Assurance pursuant to the provisions of Article 32; |
| 4. | The representative, officers and staff of the following enterprises or research institutes, who participate in the relevant defense acquisition programs: |
| (b) | Enterprises involved in the defense industry other than defense contractors (hereinafter referred to as a "general enterprise"); |
| (c) | Specialized research institutes; |
| (d) | Research institutes (hereinafter referred to a "general research institute") that have not been entrusted by the Administrator of the Defense Acquisition Program Administration pursuant to the provisions of subparagraph 10 of Article 3. |
| (2) | The pledge of integrity pursuant to the provisions of paragraph (1) shall contain the matters in the following subparagraphs: |
| 1. | Matters regarding prohibition, etc. of demands for, promises of, giving and receiving of valuables, entertainment, etc.; |
| 2. | Matters regarding prohibition, etc. of supply of specific information on defense acquisition programs; |
| 3. | Other matters prescribed by Presidential Decree to enhance the transparency and fairness of defense acquisition programs. |
| (3) | Where a person who has been entrusted as a member of the Defense Acquisition Program Promotion Committee pursuant to Article 9 (4) fails to comply with the terms of the pledge of integrity, the Minister of National Defense shall relieve him or her of such entrustment. |
| (4) | In order to enhance transparency and fairness in the execution of defense acquisition programs, the Administrator of the Defense Acquisition Program Administration may operate an ombudsman system which can investigate matters of civil appeal raised in the course of execution of defense acquisition programs and make a request, etc. for rectification or inspection. |
| (5) | A person eligible to be an ombudsman shall have qualifications falling under any of the following subparagraphs: Provided, That a person cannot be an ombudsman if the person in question, the person's spouse, or the person's lineal descendent or ascendant held office as an executive or employee of a defense contractor, general enterprise, specialized research institute or general research institute within two years before the person is commissioned as an ombudsman: <Added by Act No. 10218, Mar. 31, 2010> |
| 1. | A person who held or is holding a position as associate professor or higher in a department related to the defense industry, or department of accounting, law or public administration, at a school under Article 2 of the Higher Education Act; |
| 2. | An attorney-at-law, certified public accountant, professional engineer or patent attorney who has experience in the relevant field for not less than three years; |
| 3. | A person of high integrity who held office as a pubic official of Grade IV or higher (including a public official belonging to the Senior Civil Service) at a central administrative agency; |
| 4. | Others persons of learning and high moral repute who have abundant expert knowledge and experience in the field of the defense industry. |
| (6) | An ombudsman may investigate civil appeals and request for rectification, inspection, etc. to the Administrator of the Defense Acquisition Program Administration pursuant to paragraph (4): Provided, the ombudsman shall not investigate any of the following matters: <Added by Act No. 10218, Mar. 31, 2010> |
| 1. | Matters for which objection or remedy proceedings, such as an administrative appeal, administrative litigation, judgment of the Constitutional Court, etc., are pending under other Acts; |
| 2. | Matters which has become final and conclusive through judgment, decision, adjudication, reconciliation, mediation, arbitration, etc.; |
| 3. | Matters which were or are being audited by a national agency, such as the Board of Audit and Inspection or other agencies; |
| 4. | Matters under a criminal investigation by a criminal investigation agency. |
| (7) | An ombudsman may, when intending to conduct an investigation under paragraph (6), hear the statement of a relevant employee, peruse relevant documents, inspect the site, etc.: Provided, That the ombudsman may request for the statement of opinions or explanations to the relevant employee, if perusal is impossible because the documents fall under Article 9 (1) 2 and 5 of the Official Information Disclosure Act. <Added by Act No. 10218, Mar. 31, 2010> |
| (8) | An ombudsman shall not concurrently hold office falling under any of the following subparagraphs: <Added by Act No. 10218, Mar. 31, 2010> |
| 1. | A member of the National Assembly or a local council; |
| 2. | A member of a political party, or a member of an association whose main purpose is to conduct political activities; |
| 3. | An executive or employee of a defense contractor, general enterprise, specialized research institute or general research institute. |
| (9) | Matters, such as the composition of ombudsmen, etc., necessary for the operation of the ombudsman system pursuant to paragraph (4) shall be prescribed by Presidential Decree. <Amended by Act No. 10218, Mar. 31, 2010> |
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| Article 7 (System of Qualifications for Position) |
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| (1) | In order to enhance efficiency and professionalism in executing defense acquisition programs, the Administrator of the Defense Acquisition Program Administration shall appoint persons with the corresponding qualifications to positions particularly deemed to require expertise. |
| (2) | The extent of position, standards for qualifications and other necessary matters pursuant to paragraph (1) shall be prescribed by Presidential Decree. |
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| Article 8 (Research of Legal Issues, etc. regarding Defense Acquisition Programs) |
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In order to prevent any acts that may inflict financial loss on the State in the execution of defense acquisition programs and to ensure the smooth execution of defense acquisition programs, the Administrator of the Defense Acquisition Program Administration shall proceed the matters prescribed by Presidential Decree, such as contracts, negotiations, etc., after having legal experts, etc. review legal issues, etc. thereof.
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| Article 9 (Defense Acquisition Program Promotion Committee) |
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| (1) | In order to deliberate upon and coordinate major policies, management of financial resources, etc. for the promotion of defense acquisition programs, the Defense Acquisition Program Promotion Committee shall be placed under the control of the Minister of National Defense (hereinafter referred to as the "Committee"). |
| (2) | The Committee shall deliberate upon and coordinate the following matters: |
| 1. | Matters regarding major policies and plans relating to defense acquisition programs; |
| 2. | Matters regarding the formulation of medium-term plans in the fields of projects for the improvement of defense capability pursuant to the provisions of
Article 13 (2);
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| 3. | Matters regarding the formulation of budgets for projects for the improvement of defense capability pursuant to the provisions of
Article 14 (1);
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| 4. | Matters regarding the decision of method of promotion of the project for improvement of defense capability pursuant to the provisions of
Article 17;
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| 5. | Matters regarding the conclusion of types of weapons systems, equipment, etc. to be purchased; |
| 6. | Matters regarding offset trade pursuant to the provisions of
Article 20;
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| 7. | Matters regarding the analysis, evaluation and utilization of the results thereof pursuant to the provisions of
Articles 23 and
24; |
| 8. | Matters regarding the standardization of munitions and quality assurance pursuant to the provisions of
Articles 26 and
28; |
| 9. | Matters regarding contracts for the procurement of munitions; |
| 10. | Matters regarding the formulation of mediumand long-term policies on the advancement of national defense science and technology pursuant to the provisions of
Article 30;
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| 11. | Matters regarding the formulation of basic plans for fostering the defense industry pursuant to the provisions of
Article 33;
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| 12. | Matters regarding the designation of defense materials (hereinafter referred to as the "defense materials") and defense contractors pursuant to the provisions of
Articles 34 and
35; |
| 13. | Matters regarding the coordination of projects and request for measures pursuant to the provisions of
Article 36; and
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| 14. | Other matters that the Minister of National Defense and the Administrator of the Defense Acquisition Program Administration recognize as requiring deliberation and coordination. |
| (3) | The Committee shall consist of 20 members or less including a Chairman. In this case, two persons falling under paragraph (4) 4 and 5 respectively shall be included. |
| (4) | The Minister of National Defense shall be the Chairman of the Committee, the Administrator of the Defense Acquisition Program Administration shall be the Vice Chairman and the persons falling under the following subparagraphs shall be the members:
<Amended by Act No. 8852, Feb. 29, 2008> |
| 1. | A person who is prescribed by Presidential Decree from among the public officials of assistant ministerial or director general level, or generals in the Ministry of National Defense, the Agency for the Defense Acquisition Program Administration, the Joint Chiefs of Staff or each service; |
| 2. | A person who is commissioned by the Minister of National Defense from among the persons, recommended by the head of the agency where they belong, being the public officials of assistant ministerial or director general level in the Ministry of Education, Science and Technology, the Ministry of Knowledge Economy, or the Ministry of Strategy and Finance; |
| 3. | The President of the Agency for Defense Development and the President of the Agency for Defense Technology and Quality Assurance referred to in
Article 32;
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| 4. | A person who is entrusted by the Minister of National Defense from among the persons recommended by the relevant standing committee of the National Assembly; and |
| 5. | A person who is entrusted by the Minister of National Defense from among the persons, recommended by the Administrator of the Defense Acquisition Program Administration, who have abundant expertise and experience in defense acquisition programs, or who have learning and a good reputation. |
| (5) | Matters necessary for the composition and operation of the Committee, terms of office of its members, etc. shall be prescribed by Presidential Decree. |
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| Article 10 (Subcommittees and Specialized Members) |
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| (1) | In order to efficiently execute the business of the Committee, subcommittees shall be established for each field. |
| (2) | Where the Committee deems it necessary, the Committee may further deliberate upon and coordinate the matters deliberated upon and coordinated by the subcommittees, which were delegated by the Committee or prescribed by Presidential Decree as concerning the subcommittees. |
| (3) | The Chairman of the Committee may entrust specialized members who have expertise and experience in defense acquisition programs to seek advice on the major matters of deliberation by the Committee and subcommittees. |
| (4) | The specialized members may attend and speak at the Committee and subcommittees, and may submit written opinions to the Committee, if necessary. |
| (5) | Matters necessary for the composition and operation of subcommittees, terms of office of the specialized members, etc. shall be prescribed by Presidential Decree. |
CHAPTER III PROJECT FOR IMPROVEMENT OF DEFENSE CAPABILITY
Section 1 Principles for Execution of Projects for Improvement of Defense Capability
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| Article 11 (Basic Principles for Execution of Project for Improvement of Defense Capability) |
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Where the Administrator of the Defense Acquisition Program Administration executes projects for the improvement of defense capability, he shall observe the principles in the following subparagraphs:
| 1. | The research and development, and promotion of localization of weapons systems for the accomplishment of self-reliant national defense through the development of national defense science and technology; |
| 2. | The promotion of demonstrating maximum defense capability by acquiring weapons systems with optimal performance, as required by each service; |
| 3. | Devising a stable comprehensive plan for the assistance of ordinances for the efficient operation of weapons systems; |
| 4. | Securing transparency and specialization at all stages of the advancement of projects for the improvement of defense capability; |
| 5. | The promotion of mutually organic supplementation and development of national science and technology and national defense science and technology; and |
| 6. | The establishment of systems for international cooperation to enhance the efficiency of research and development pursuant to the provisions of
Article 18.
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| Article 12 (Comprehensive Project Administration System) |
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| (1) | Where it is necessary for the efficient execution of projects for the improvement of defense capability, the Administrator of the Defense Acquisition Program Administration shall implement a comprehensive project administration system that administers all procedures of a unit project by having the person who administers a unit project comprehensively organize the specialized manpower by function, such as formulation of plans, drawing up of budgets, decisions on types of weapons, negotiation, administration of contracts, administration of quality assurance, administration of technology, etc. |
| (2) | Matters necessary for the method of operation, procedures, etc. of the comprehensive project administration system pursuant to the provisions of paragraph (1) shall be decided by the Administrator of the Defense Acquisition Program Administration. |
Section 2 Medium-Term National Defense Plan and Budget
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| Article 13 (Medium-Term National Defense Plan, etc.) |
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| (1) | The Minister of National Defense shall establish a medium-term plan (hereinafter referred to as "medium-term national defense plan") with the approval of the President regarding projects for the improvement of defense capability, ordinary operation, etc. for the rational building of military force. |
| (2) | The medium-term plan regarding projects for the improvement of defense capability within the medium-term national defense plan shall be established by the Administrator of the Defense Acquisition Program Administration under the guidance of the Minister of National Defense, and shall be submitted to the Minister of National Defense, and the Minister of National Defense shall place it through the deliberation and coordination of the Committee in advance. In such cases, the order of priority in the requirement for the weapons systems, operation plan of national finance, etc. shall be considered. |
| (3) | Matters regarding the establishment of medium-term plan regarding projects for the improvement of defense capability pursuant to the provisions of paragraph (2) shall be prescribed by Presidential Decree. |
| (4) | The Minister of National Defense shall report it to the competent Standing Committee of the National Assembly, immediately after the establishment of the medium-term national defense plan.
<Added by Act No. 9561, Apr. 1, 2009> |
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| Article 14 (Drawing-up and Execution of Budget) |
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| (1) | The Administrator of the Defense Acquisition Program Administration shall draw up a budget for projects for the improvement of defense capability on the basis of the medium-term national defense plan and the Minister of National Defense's guidance for drawing up budgets, and report it to the Minister of National Defense. |
| (2) | The Administrator of the Defense Acquisition Program Administration shall establish a plan for the implementation of the budget and an operation plan for the efficient implementation and administration of the budget in the field of a particular project for the improvement of defense capability. |
| (3) | Matters necessary for the drawing-up and implementation of the budget pursuant to the provisions of paragraphs (1) and (2) shall be prescribed by Presidential Decree. |
Section 3 Decisions on Requirements and Corrections
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| Article 15 (Decisions on Requirements) |
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| (1) | The Minister of National Defense shall decide upon the requirements for weapons systems, etc. for projects for the improvement of defense capability in accordance with the proposal by the Chairman of the Joint Chiefs of Staff after the deliberation of the Joint Chiefs of Staff. |
| (2) | The Minister of National Defense shall organize the manpower, executing the business relating to decisions on the requirements pursuant to the provisions of paragraph (1), well-balanced among the services so that the decision on the requirements may be made objectively and rationally. |
| (3) | The procedures, etc. for decisions on the requirements pursuant to the provisions of paragraph (1) shall be prescribed by Presidential Decree. |
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| Article 16 (Correction of Requirements) |
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| (1) | The Minister of National Defense may correct the requirements of weapons systems, etc. which have been decided pursuant to the provisions of
Article 15 (1). In such cases, the Chairman of the Joint Chiefs of Staff may propose the correction of requirements to the Minister of National Defense.
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| (2) | Where the requirements for weapons systems, etc. are corrected pursuant to the provisions of paragraph (1), the provisions of
Article 15 (1) shall apply mutatis mutandis:
Provided, That this shall not apply to cases where such insignificant matters as prescribed by Presidential Decree are corrected.
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Section 4 Execution of Projects for Improvement of Defense Capability
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| Article 17 (Methods, etc. of. Promotion of Project for Improvement of Defense Capability) |
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| (1) | Where the requirement for weapons systems, etc. for the projects for improvement of defense capability pursuant to the provisions of
Article 15 (1) are decided, the Administrator of the Defense Acquisition Program Administration shall decide the methods of promotion of projects for the improvement of defense capability after prior research that has investigated and analyzed the possibility of research and development, timing of requirements and required quantities, level of national defense science and technology, the effect of fostering the defense industry, technological and economic feasibility, effectiveness compared to expense, etc. relating to the relevant weapons systems:
Provided, That this shall not apply where there is an urgent requirement for weapons systems, etc. for projects for the improvement of defense capability in time of war, disaster, overseas deployment of armed forces, etc.
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| (2) | Where it is needed in conducting the prior research pursuant to the provisions of paragraph (1), the opinions of the Agency for Defense Development, each service, the relevant Ministry, etc. shall be reflected. |
| (3) | The methods of promotion of projects for the improvement of defense capability pursuant to the provisions of paragraph (1) shall be executed by classifying them into research and development, and purchasing. |
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| Article 18 (Research and Development) |
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| (1) | The Administrator of the Defense Acquisition Program Administration shall research and develop, and secure the core technology necessary for the research and development of weapons systems pursuant to the provisions of
Article 17 (3).
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| (2) | For the efficient implementation of the budget and effective strengthening of military force in executing the research and development, the Administrator of the Defense Acquisition Program Administration shall promote the research and development of strategically valuable weapons and the core technology pursuant to the provisions of paragraph (1) in the first instance. |
| (3) | Where the Government bears all or part of the expenses necessary for the research and development of weapons systems and core technology, the Administrator of the Defense Acquisition Program Administration may select an institute to be in charge of the research and development, and promote the research and development. |
| (4) | Where the Administrator of the Defense Acquisition Program Administration conducts the research and development of weapons systems and core technology, he may entrust research or manufacture of prototypes to defense contractors, general enterprises, specialized research institutes or general research institutes by specifying the items, methods, scale of research or prototypes, and other necessary matters.
<Amended by Act No. 9561, Apr. 1, 2009> |
| (5) | Where the Administrator of the Defense Acquisition Program Administration has entrusted research or manufacture of protypes as prescribed by paragraph (4), he shall pay the research expenses or prototype manufacturing cost.
<Amended by Act No. 9561, Apr. 1, 2009> |
| (6) | In cases where it is necessary for the promotion of the research and development of weapons systems, the Administrator of the Defense Acquisition Program Administration may launch a model project to make the best use of new technologies.
<Added by Act No. 9561, Apr. 1, 2009> |
| (7) | In cases where the Administrator of the Defense Acquisition Program Administration chooses an organization in charge of research and development or a prototype manufacturer as prescribed by paragraphs (3) and (4), he may preferentially appoint a small and medium enterprise (which refersto small and medium enterprises under
Article 2 of the Framework Act on Small and Medium Enterprises; hereinafter the same shall apply) for the purpose of facilitating the growth of small and medium enterprises well-equipped with technical excellence as for product items determined and notified to the public by the Administrator of the Defense Acquisition Program Administration.
<Added by Act No. 9561, Apr. 1, 2009> |
| (8) | Matters necessary for the procedures, etc. of research and development of weapons systems and core technology shall be prescribed by Ministerial Decree of National Defense. |
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| Article 19 (Purchase) |
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| (1) | The Administrator of the Defense Acquisition Program Administration shall purchase domestically-manufactured munitions in the first instance:
Provided, That he may purchase the munitions manufactured overseas where it is difficult to purchase them in Korea.
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| (2) | Where it is necessary for the efficient execution of purchasing business, the Administrator of the Defense Acquisition Program Administration may cause the civilian specialists prescribed by Presidential Decree, such as the persons, etc. to be recommended by the Committee, who have a track record of working in the field of international contracting, to participate in the purchase procedures. |
| (3) | Matters necessary for the purchase procedures, etc. for the promotion of projects for the improvement of defense capability shall be prescribed by Presidential Decree. |
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| Article 20 (Offset Trade) |
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| (1) | Where the Administrator of the Defense Acquisition Program Administration purchases munitions from abroad pursuant to the provisions of
Article 19 (1), the promotion of offset trade for a unit project worth more than the amount prescribed by Presidential Decree shall be the principle.
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| (2) | Where the Administrator of the Defense Acquisition Program Administration selects technology, etc. that can be secured through offset trade, he shall have it linked with mediumand long-term policies on the advancement of national defense science and technology pursuant to the provisions of
Article 30 (1) and the action plan.
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| (3) | Where the Administrator of the Defense Acquisition Program Administration intends to promote offset trade, he shall satisfy the conditions falling under any of the following subparagraphs:
<Amended by Act No. 9561, Apr. 1, 2009> |
| 1. | Securing of the technology necessary for projects for the improvement of defense capability; |
| 2. | Securing of logistic support capability for the purchase of weapons systems; |
| 3. | Participation in the development and manufacture of weapons systems manufactured in the country of the contracting party; |
| 4. | The export of munitions, such as defense materials, etc.; |
| 5. | Securing of maintenance materials for the weapons systems from the country of the contracting party; or |
| 6. | Implementation of matters prescribed by Presidential Decree, such as export linkages for commodities other than munitions (limited to cases where the conditions under any of subparagraphs 1 through 5 are satisfied). |
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| Article 21 (Testing and Evaluation) |
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| (1) | Where the Administrator of the Defense Acquisition Program Administration intends to research and develop, or purchase weapons systems, or research and develop the core technology pursuant to the provisions of
Article 18 (1), he shall simultaneously draw up a plan for testing and evaluation of the relevant weapons systems and core technology, such as the standards, items, methods, timing, etc. of testing and evaluation.
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| (2) | Each service and each organization (referring to the Agency for Defense Development, defense contractors, general enterprises, specialized research institutes and general research institutes; hereafter in this Article the same shall apply) shall perform the testing and evaluation of the weapons systems and core technology in accordance with the plan for testing and evaluation pursuant to the provisions of paragraph (1). In such cases, the outcomes of testing and evaluation shall be notified to the Administrator of the Defense Acquisition Program Administration. |
| (3) | Where it is necessary to enhance the professionalism and transparency of testing and evaluation, the Administrator of the Defense Acquisition Program Administration may cause the civilian specialists to participate in the testing and evaluation at the recommendation of the Committee. |
| (4) | The Administrator of the Defense Acquisition Program Administration shall judge whether the weapons systems and core technology satisfy the standards, etc. of testing and evaluation on the grounds of the result of testing and evaluation that has been notified pursuant to paragraph (2), and report it to the Committee. |
| (5) | Matters necessary for the formulation of plans for testing and evaluation pursuant to the provisions of paragraph (1) shall be prescribed by Presidential Decree. |
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| Article 22 (Improvement of Performance) |
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| (1) | In order to enhance the performance and quality of the weapons systems in operation or in the manufacturing process, the Administrator of the Defense Acquisition Program Administration may promote the improvement of performance. |
| (2) | Where the surroundings of operation of weapons systems change substantially or the important operation performance of the weapons systems changes notwithstanding the provisions of paragraph (1), the improvement of performance shall be promoted in accordance with the procedures for decisions on requirements pursuant to
Article 15.
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| (3) | Matters necessary for the procedures for promotion, etc. of improvement of performance pursuant to paragraph (1) shall be prescribed by Ministerial Decree of National Defense. |
Section 5 Analysis and Evaluation
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| Article 23 (Conduct of Analysis and Evaluation) |
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| (1) | In order to seek rational decision making and to use financial resources effectively in executing the projects for improvement of defense capability, the system of analysis and evaluation of projects for the improvement of defense capability shall be established and the analysis and evaluation shall be conducted accordingly.
<Amended by Act No. 10218, Mar. 31, 2010> |
| (2) | The Administrator of the Defense Acquisition Program Administration shall conduct the analysis and evaluation of the following matters: |
| 1. | The analysis and evaluation necessary for the formulation of a medium-term plan, formulation of a budget, etc. in the field of projects for the improvement of defense capability before the execution of the budget of the relevant project; |
| 2. | The analysis and evaluation of interim outcomes, etc. of the project in the course of executing the budget of the relevant project; |
| 3. | The analysis and evaluation of the outcomes of conducting the project, etc. after the completion of implementation of budget of the relevant project. |
| (3) | The Minister of National Defense shall conduct the analysis and evaluation of the proposal of requirements of projects for the improvement of defense capability, incorporation of the deployed weapons systems into the fighting capability, etc. besides those prescribed in the subparagraphs of paragraph (2). In such cases, the Minister may have the Chairman of the Council of the Joint Chiefs of Staff or the Chief of Staff of each service conduct them. |
| (4) | The Minister of National Defense and the Administrator of the Defense Acquisition Program Administration may have civilian specialists to participate in the analysis and evaluation if necessary to enhance the credibility of the analysis and evaluation. |
| (5) | The methods, procedures, etc. of analysis and evaluation pursuant to paragraphs (2) through (4) shall be prescribed by Ministerial Decree of National Defense. |
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| Article 24 (Utilization of Outcomes of Analysis and Evaluation) |
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| (1) | In order to efficiently execute projects for the improvement of defense capability, the Administrator of the Defense Acquisition Program Administration shall arrange for the outcomes of the analysis and evaluation pursuant to the provisions of
Article 23 (2) 1 and 2 to be utilized in the decision making of each phase of promotion of the relevant project for the improvement of defense capability.
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| (2) | The Administrator of the Defense Acquisition Program Administration shall arrange for the outcomes of the analysis and evaluation pursuant to the provisions of
Article 23 (2) 3 to be utilized in the decision making for the relevant project for improvement of defense capability.
|
| (3) | The Minister of National Defense shall arrange for the outcomes of the analysis and evaluation pursuant to the provisions of
Article 23 (3) to be utilized in the decisions, etc. on requirements of the project for improvement of defense capability, and may request the Administrator of the Defense Acquisition Program Administration for re-analysis and evaluation of or corrective measures against the outcomes of the analysis and evaluation pursuant to the provisions of
Article 23 (2) if necessary in consideration of the surroundings of operations of the armed force, technological changes, etc.
|
CHAPTER IV PROCUREMENT AND QUALITY ASSURANCE
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| Article 25 (Planning and Methods of Procurement) |
|
| (1) | The Administrator of the Defense Acquisition Program Administration shall formulate a procurement plan for munitions in accordance with the guidance of the Minister of National Defense, and procure munitions accordingly. |
| (2) | In order to efficiently implement the defense budget, the Defense Acquisition Program Administration shall procure munitions en bloc:
Provided, That each service may procure directly, or request the Public Procurement Service to make purchases as prescribed by Presidential Decree.
|
법령보기 화면
| Article 26 (Standardization) |
|
| (1) | In order to efficiently acquire munitions, the Administrator of the Defense Acquisition Program Administration shall formulate a plan for the standardization of munitions with the aim of efficient acquisition of munitions. In this case, the Korean Industrial Standard under
Article 12 of the Industrial Standardization Act shall be reflected on the matters to the extent applicable.
<Amended by Act No. 8486, May 25, 2007> |
| (2) | The Administrator of the Defense Acquisition Program Administration shall designate or revoke standard articles in accordance with the plan formulated pursuant to the provisions of paragraph (1), and formulate, amend or abolish the standards for munitions, and administer munitions by distinguishing their physical or functional characteristics. |
| (3) | Matters necessary for the designation or revocation of standard articles in accordance with paragraph (2), and the formulation, amendment or abolition of standards for munitions, and their administration in accordance with the physical or functional characteristics of munitions shall be prescribed by Presidential Decree. |
법령보기 화면
| Article 27 (Munitions Inventory Information) |
|
| (1) | The Administrator of the Defense Acquisition Program Administration shall administer the munitions inventory information by classifying the munitions in accordance with the standardization pursuant to the provisions of
Article 26, by designating names and stock numbers, and by logging their characteristics, etc.
|
| (2) | The Administrator of the Defense Acquisition Program Administration shall formulate and execute a plan for the administration and utilization of information on inventory of munitions pursuant to the provisions of paragraph (1), and endeavor to engage in the international exchange of munitions inventory information. |
법령보기 화면
| Article 28 (Quality Assurance) |
|
| (1) | The Administrator of the Defense Acquisition Program Administration shall formulate and execute a plan for quality assurance including a program for amendment and supplementation to overcome inadequacies in accordance with the examination of the quality of the munitions to verify whether they conform to the initial requirements of the user at each stage of research and development, and purchasing. |
| (2) | The concrete methods, etc. regarding quality assurance at each stage pursuant to the provisions of paragraph (1) shall be prescribed by Ministerial Decree of National Defense. |
법령보기 화면
| Article 29 (Quality Control) |
|
| (1) | The Administrator of the Defense Acquisition Program Administration shall, after consultation with the Minister of Knowledge Economy, establish standards for responsible management, or resource control, etc. by defense contractors or specialized research institutes to assure quality in the manufacture of defense materials.
<Amended by Act No. 8852, Feb. 29, 2008> |
| (2) | Defense contractors or specialized research institutes shall take measures necessary for the quality control of defense materials in accordance with the standards pursuant to the provisions of paragraph (1). |
| (3) | Where it is necessary for the research and development, purchase and manufacture of defense materials, the Minister of Knowledge Economy and the Administrator of the Defense Acquisition Program Administration may, after consultation among themselves, receive reports from the defense contractors or specialized research institutes, or dispatch relevant public officials to the facilities of the defense industry (hereinafter referred to as "defense industry facilities") or other necessary places to provide instructions on quality control or technology.
<Amended by Act No. 8852, Feb. 29, 2008> |
| (4) | The relevant public officials, etc. dispatched pursuant to the provisions of paragraph (3) may request the defense contractors or the managers of specialized research institutes to take necessary measures for the quality control, etc. of defense materials. |
CHAPTER V ADVANCEMENT OF NATIONAL DEFENSE SCIENCE AND TECHNOLOGY
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| Article 30 (Formulation and Execution of Policy on Advancement of National Defense Science and Technology) |
|
| (1) | The Minister of National Defense shall formulate mediumand long-term policies on the advancement of national defense science and technology, and the Administrator of the Defense Acquisition Program Administration shall formulate and execute an action plan thereof. In this case, the matters prescribed by Presidential Decree shall be deliberated upon by the National Science and Technology Committee pursuant to the provisions of
Article 9 of the Framework Act on Science and Technology.
|
| (2) | Matters necessary for the formulation of mediumand long-term policies and action plans shall be prescribed by Presidential Decree. |
법령보기 화면
| Article 31 (Advancement of Information on National Defense Science and Technology) |
|
| (1) | The Administrator of the Defense Acquisition Program Administration shall systematically integrate and administer the information relating to national defense science and technology in the following subparagraphs: |
| 1. | Technological information secured through research and development; |
| 2. | Technological information introduced from abroad for the manufacture of major defense materials; |
| 3. | Technological information transferred from foreign contracting party through offset trade; |
| 4. | Technological information researched and developed through cooperation with industrial education institutes, research institutes, enterprises, etc. pursuant to the provisions of subparagraph 2 of
Article 2 of the Promotion of Industrial Education and Industry Academic Cooperation Act;
|
| 5. | Information on the list of industrial property rights, such as patent rights, utility model rights, specifications books, design drawings, etc.; and |
| 6. | Other information on national defense science and technology data collected by the Government domestically and abroad. |
| (2) | For the information on national defense science and technology administered pursuant to the provisions of paragraph (1), besides that recognized as difficult to reveal due to military purposes, the Administrator of the Defense Acquisition Program Administration shall arrange for it to be administered and distributed in accordance with the policy on the administration and distribution of national awareness of science and technology pursuant to the
Framework Act on Science and Technology.
|
| (3) | Each service and the government-invested research institutes may transfer, with or without consideration, the national defense science and technology in their possession to the relevant domestic enterprises, institutes, etc. with the approval of the Administrator of the Defense Acquisition Program Administration. |
| (4) | Every three years, the Administrator of the Defense Acquisition Program Administration shall conduct an inspection of the present status of technology for each weapon system in its possession, and a comparison of national technological level with those of major advanced countries. |
법령보기 화면
| Article 32 (Agency for Defense Technology and Quality Assurance) |
|
| (1) | The Agency for Defense Technology and Quality Assurance shall be established in order to efficiently conduct the business of securing, distribution, administration, quality assurance, etc. of information regarding national defense science and technology, and weapons systems. |
| (2) | The Agency for Defense Technology and Quality Assurance shall be established as a juristic person. |
| (3) | The Agency for Defense Technology and Quality Assurance shall come into being by registering the incorporation thereof. |
| (4) | The articles of incorporation shall contain the matters in the following subparagraphs: |
| 3. | The location of its principal office; |
| 4. | Matters regarding business and finance; |
| 5. | Matters regarding officers; |
| 6. | Matters regarding the board of directors; |
| 7. | Matters regarding the amendment of the articles of incorporation; and |
| 8. | Matters regarding its dissolution. |
| (5) | Where the Agency for Defense Technology and Quality Assurance intends to draft or amend the articles of incorporation, it shall obtain the authorization of the Administrator of the Defense Acquisition Program Administration. In this case, the Administrator of the Defense Acquisition Program Administration shall obtain approval from the Minster of National Defense before granting authorization. |
| (6) | The Agency for Defense Technology and Quality Assurance shall conduct the following businesses: |
| 1. | Business assistance in the planning of national defense science and technology, and investigation and analysis of national defense science and technology; |
| 2. | Business assistance in the investigation, analysis, evaluation of projects for the improvement of defense capability; |
| 3. | Assistance in the designation of executing organizations for conducting core technology development projects, evaluation of performance outcomes, etc.; |
| 4. | The integrated administration of information on national defense science and technology and weapons systems; |
| 5. | Business assistance in the quality assurance of munitions, quality control of defense materials, etc. and the relevant business entrusted by the Administrator of the Defense Acquisition Program Administration; |
| 6. | Technological assistance in the standardization of munitions requested in the course of execution of defense acquisition programs, testing and evaluation, etc.; |
| 7. | Technological assistance in projects for national defense cooperation, such as the localization of parts production, etc. promoted in cooperation with the central administrative agencies and local governments; |
| 8. | Matters regarding the collection and supply of information on export prices and import prices of munitions; and |
| 9. | Other matters prescribed by Presidential Decree with regard to the administration, etc. of national defense science and technology. |
| (7) | The Government shall contribute the expenses necessary for the establishment and operation of the Agency for Defense Technology and Quality Assurance. |
| (8) | Matters necessary for the operation, supervision, etc. of the Agency for Defense Technology and Quality Assurance shall be prescribed by Presidential Decree. |
| (9) | The provisions in the Civil Act regarding incorporated foundations shall apply to the matters regarding the Agency for Defense Technology and Quality Assurance for matters that are not prescribed in this Act. |
CHAPTER VI FOSTERING OF DEFENSE INDUSTRY
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| Article 33 (Formulation of Basic Plan for Fostering Defense Industry) |
|
| (1) | In order to rationally assist and foster the defense industry, the Administrator of the Defense Acquisition Program Administration shall formulate a Basic Plan for fostering the defense industry (hereinafter referred to as the "Basic Plan"). |
| (2) | The Basic Plan shall include the matters in the following subparagraphs: |
| 1. | Matters regarding the basic policy for fostering the defense industry; |
| 2. | Matters regarding the rationalization of manufacturing facilities of the defense industry; |
| 3. | Matters regarding the research and development, and purchase of defense materials; |
| 4. | Matters regarding promotion of the localization of defense materials production; |
| 5. | Matters regarding the determination of manufacturing capacity of defense materials; |
| 6. | Matters regarding the development of manpower and technological level relating to the defense industry; |
| 7. | Matters regarding the international cooperation of the defense in dustry and exports; and |
| 8. | Other matters that the Administrator of the Defense Acquisition Program Administration recognizes as necessary for fostering the defense industry. |
| (3) | Matters necessary for the formulation of the Basic Plan shall be prescribed by Presidential Decree. |
법령보기 화면
| Article 34 (Designation of Defense Materials) |
|
| (1) | The Administrator of the Defense Acquisition Program Administration may, after consultation with the Minister of Knowledge Economy, designate materials classified as weapons systems as defense materials, which are necessary for the securing of stable source of procurement, strict quality assurance, etc.:
Provided, That materials that are not classified as weapons systems but prescribed by Presidential Decree may be designated as defense materials.
<Amended by Act No. 8852, Feb. 29, 2008> |
| (2) | Defense materials shall be designated by classifying them into either major defense materials or general defense materials. |
| (3) | The classification into either major defense materials or general defense materials pursuant to the provisions of paragraph (2), and other matters necessary for the designation of defense materials shall be prescribed by Presidential Decree. |
법령보기 화면
| Article 35 (Designation, etc. of Defense Contractors) |
|
| (1) | Those who intend to manufacture defense materials shall obtain designation as defense contractors from the Minister of Knowledge Economy after meeting the standards for facilities, the requirements of security, etc. that are prescribed by Presidential Decree. In this case, the Minister of Knowledge Economy shall consult in advance with the Administrator of the Defense Acquisition Program Administration regarding the designation of defense contractors.
<Amended by Act No. 8852, Feb. 29, 2008> |
| (2) | Where the Minister of Knowledge Economy designates a defense contractor pursuant to the provisions of paragraph (1), the Minister shall designate by classifying the contractor as either a major defense contractor or general defense contractor. Enterprises which manufacture the defense materials falling under any of the following subparagraphs shall be major defense contractors, and enterprises that manufacture other defense materials shall be general defense contractors:
<Amended by Act No. 8852, Feb. 29, 2008> |
| 1. | Firearms and other fire power weapons; |
| 6. | Tanks, armored vehicles and other mobile combat equipment; |
| 7. | Radars, identification friend or foe, and other communication and electronic equipment; |
| 8. | Night observation devices and other optical or thermal imaging devices; |
| 9. | Combat engineering equipment; |
| 10. | Chemical, biological and radiological warfare equipment; |
| 11. | Command and control systems; or |
| 12. | Other materials that the Administrator of the Defense Acquisition Program Administration designates as recognized to be important for military strategy or tactical operations. |
| (3) | Where the change in substance of the governance of management of a defense contractor because of transaction and public sale, or merger and acquisition, or other reasons is expected and it falls under the standards prescribed by Presidential Decree, those who intend to gain a controlling interest in the management of the relevant defense contractor shall submit relevant documents to the Minister of Knowledge Economy as prescribed by Presidential Decree and obtain his prior approval:
Provided, That this shall not apply where permission from the Minister of Knowledge Economy has been obtained pursuant to the provisions of
Article 6 (3) through (6) of the Foreign Investment Promotion Act.
<Amended by Act No. 8852, Feb. 29, 2008> |
| (4) | Where the Minister of Knowledge Economy intends to grant approval pursuant to the main sentence of paragraph (3), the Minister shall consult with the Administrator of the Defense Acquisition Program Administration in advance.
<Amended by Act No. 8852, Feb. 29, 2008> |
| (5) | Matters necessary for the designation pursuant to paragraphs (1) and (2) shall be prescribed by Presidential Decree. |
법령보기 화면
| Article 36 (Coordination, etc. of Businesses) |
|
| (1) | With respect to the cases falling under any of the following subparagraphs, among cases where a large enterprise (hereinafter referred to as "large enterprise"), which is related with the defense industry, pursuant to subparagraph 2 of
Article 2 of the Act on the Promotion of Collaborative Cooperation between Large Enterprises and Small-Medium Enterprises merges and takes over a small or medium enterprise, or duplicated investment among defense contractors is done, the Administrator of the Defense Acquisition Program Administration may, after consultation with the Minister of Knowledge Economy, coordinate the business between the large enterprise and the small or medium enterprise or the business between the defense contractors. In such cases, the Administrator of the Defense Acquisition Program Administration may recommend the parties to come to an agreement:
<Amended by Act No. 9561, Apr. 1, 2009> |
| 1. | In cases where the Administrator of the Defense Acquisition Program Administration deems that merger, acquisition, or duplicated investment is likely to noticeably lower the efficiency of the defense industry; and |
| 2. | In cases where a small and medium enterprise for which a merger or acquisition is scheduled applies for business coordination. |
| (2) | Where the Administrator of the Defense Acquisition Program Administration coordinates businesses pursuant to the provisions of paragraph (1), he may recommend the matters of the following subparagraphs after the deliberation of the Committee:
<Amended by Act No. 9561, Apr. 1, 2009> |
| 1. | To large enterprises, the postponement of takeover, commencement or expansion of business for a period not exceeding three years, or a reduction of the items and manufacturing quantity, manufacturing facilities, etc.; and |
| 2. | To defense contractors, the coordination of the timing or scale of investment or restriction of interlocking investments. |
| (3) | Where the Administrator of the Defense Acquisition Program Administration deems that a large enterprise has performed an unfair trade pursuant to the provisions of
Article 23 (1) of the Monopoly Regulation and Fair Trade Act, after the deliberation of the Committee, the Administrator may notify the Minister of Knowledge Economy thereof and request the Fair Trade Commission to take necessary measures pursuant to the provisions of
Articles 24 and 24-2 of the same Act. In such cases, the Fair Trade Commission shall take the necessary measures without delay.
<Amended by Act No. 8852, Feb. 29, 2008> |
| (4) | Where the Administrator of the Defense Acquisition Program Administration intends to undertake business coordination pursuant to the provisions of paragraph (1), he shall inquire into the relevant facts and report the outcome to the Committee.
<Amended by Act No. 9561, Apr. 1, 2009> |
| (5) | Where the large enterprise or defense contractor fails to perform the recommended matters without justifiable grounds, contrary to the recommendations of the Administrator of the Defense Acquisition Program Administration pursuant to the provisions of paragraph (2), the Administrator of the Defense Acquisition Program Administration may officially announce the terms thereof, and order the large enterprise or defense contractor to perform them if he has not performed the recommended matters even after the lapse of three months from the official announcement. |
| (6) | The details of the official announcement of recommendations under paragraph (5) shall be as follows:
<Added by Act No. 9561, Apr. 1, 2009> |
| 1. | Title of enterprises for which recommendations are made; |
| 2. | Details of recommendations; |
| 3. | Follow-up measures following the failure to implement the recommendations; and |
| 4. | Other matters necessary for the execution of recommendations. |
| (7) | In circumstances where it is deemed that, after the order of execution under paragraph (5) has been made, the reason for such order has been changed or has disappeared prior to the execution, the Administrator of the Defense Acquisition Program Administration shall withdraw from whole or partial coordinations after going through a deliberation by the Committee.
<Added by Act No. 9561, Apr. 1, 2009> |
| (8) | Where the Administrator of the Defense Acquisition Program Administration intends to coordinate businesses pursuant to the provisions of paragraph (1), he may recommend the relevant large enterprise or defense contractor to temporarily suspend the takeover, commencement, expansion or investment of the relevant business until after the deliberation of the Committee. |
| (9) | Matters necessary for the inquiry into the facts, methods, procedures, etc. of official announcement pursuant to the provisions of paragraphs (4) and (5) shall be prescribed by Presidential Decree.
<Amended by Act No. 9561, Apr. 1, 2009> |
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| Article 37 (Protection and Fosterage) |
|
| (1) | The Government shall guarantee defense materials manufactured and procured by defense contractors. |
| (2) | The Government shall provide priority to defense contractors who manufacture major defense materials when assisting in the following matters:
<Amended by Act No. 9561, Apr. 1, 2009> |
| 1. | Research or manufacture of prototypes pursuant to the provisions of
Article 18 (4);
|
| 2. | The loan of funds pursuant to the provisions of
Article 38 (1); and
|
| 3. | Other matters prescribed by Presidential Decree for the protection and fosterage of defense contractors. |
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| Article 38 (Loans) |
|
| (1) | Where necessary for the fosterage of the defense industry, the Government may loan funds falling under any of the following subparagraphs in relation to defense contractors at low long-term interest rates (in cases where defense contractors obtain a loan from a financial institution, it includes the case where the difference between the loan rate and the rate prescribed by the Administrator of the Defense Acquisition Program Administration is subsidized; hereinafter the same shall apply):
Provided, That the funds falling under subparagraphs 3 through 5 may be loaned to a general enterprise:
<Amended by Act No. 9561, Apr. 1, 2009> |
| 1. | Funds necessary for the installation, transfer, replacement, supplementation, or expansion of defense facilities; |
| 2. | Funds necessary for the purchase and reserve of raw materials; |
| 3. | Development funds for the localization of defense materials and other munitions; |
| 4. | Funds necessary for the export of defense materials and materials corresponding to defense materials as prescribed by Presidential Decree (hereinafter referred to as "defense materials, etc."); |
| 5. | Funds necessary for the development of core technology and parts; |
| 6. | Funds necessary for research and development and the maintenance of idle facilities; or |
| 7. | Other funds necessary for the operation of defense contractor. |
| (2) | Matters necessary for loan application procedures under paragraph (1) shall be prescribed by Presidential Decree.
<Added by Act No. 9561, Apr. 1, 2009> |
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| Article 39 (Grants, etc. of Subsidies) |
|
| (1) | Where it is recognized as necessary for the fosterage of the defense industry, the Administrator of the Defense Acquisition Program Administration may grant a subsidy for all or part of expenses incurred in the following matters to defense contractors or specialized research institutes within its budget: |
| 1. | The purchase or installation of instruments used exclusively for the defense industry; |
| 2. | Research and development or the introduction of technology; |
| 3. | The quality inspection of munitions or quality control of defense materials; and |
| 4. | Other matters prescribed by Presidential Decree for the fosterage of the defense industry. |
| (2) | Defense contractors or specialized research institutes shall not transfer, exchange or loan the assets which have been purchased, or whose utility has been increased, by means of subsidies pursuant to the provisions of paragraph (1) without the approval of the Administrator of the Defense Acquisition Program Administration. |
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| Article 40 (Treatment, etc. of Technical Manpower) |
|
| (1) | The Administrator of the Defense Acquisition Program Administration may grant bounty, etc. within the extent of budget as prescribed by Presidential Decree to the technical manpower engaged in the Agency for Defense Development, the Agency for Defense Technology and Quality Assurance, defense contractors, specialized research institutes, military repair units (including military maintenance depots; hereinafter the same shall apply) or military procurement units, or those who have researched and developed excellent defense materials or related core technology. |
| (2) | Defense contractors or specialized research institutes shall employ technical manpower and ensure the smooth manufacture or supply of prototypes of defense materials. |
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| Article 41 (Assistance to Defense Industry) |
|
For the purposes of research and development, or the manufacture of defense materials, the Defense Acquisition Program Administration, each service, the Agency for Defense Development, the Agency for Defense Technology and Quality Assurance and military repair units may give technical assistance or assistance in manufacturing to defense contractors or specialized research institutes at the expense of the defense contractors or specialized research institutes.
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| Article 42 (Establishment of Associations, etc.) |
|
| (1) | For the purpose of sound development of the defense industry, defense contractors, general enterprises, specialized research institutes, general research institutes and defense well-informed business-related communities, etc. may establish associations or organizations, as prescribed by Presidential Decree. |
| (2) | The associations or organizations established pursuant to the provisions of paragraph (1) shall be juristic persons. |
| (3) | Those who intend to establish an association or organization pursuant to the provisions of paragraph (1) shall obtain permission from the Administrator of the Defense Acquisition Program Administration. |
| (4) | Regarding the associations or organizations pursuant to the provisions of paragraphs (1) and (2), the provisions relating to private corporation in the
Civil Act shall apply
mutatis mutandis to matters not provided for in this Act.
|
| (5) | Matters necessary for the functioning, supervision, etc. of associations or organizations pursuant to the provisions of paragraph (1) shall be prescribed by Presidential Decree. |
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| Article 43 (Designation of Guarantee Organizations) |
|
| (1) | In order to reduce the financial burden of defense contractors, etc. and to allow the defense contractors, etc. to use the guarantee organization conveniently, the Administrator of the Defense Acquisition Program Administration may designate an organization (hereinafter referred to as "guarantee organization") that performs guarantee business pursuant to the provisions of any subparagraphs in paragraph (2) relating to defense business. |
| (2) | The scope of guarantee business of a guarantee organization shall be as listed in the following subparagraphs:
<Amended by Act No. 9561, Apr. 1, 2009> |
| 1. | Payment guarantees against loan of funds pursuant to the provisions of
Article 38 (1);
|
| 2. | Payment guarantees of security for bids and contract deposits against the procurement and research of defense materials and manufacture of prototypes, and payment guarantees against warranty deeds pursuant to the provisions of
Article 46 (1);
|
| 3. | Payment guarantees against retainers and part payments pursuant to the provisions of
Article 46 (2);
|
| 5. | Loan guarantees against funds necessary for reserving raw materials pursuant to the provisions of
Article 55; and
|
| 6. | Other guarantees necessary for defense contractors, etc. to conduct defense business. |
| (3) | Matters necessary for the requirements for designation, methods of designation, procedures of designation, etc. of guarantee organizations shall be prescribed by Presidential Decree. |
법령보기 화면
| Article 44 (Assistance in Export of Defense Materials, etc.) |
|
| (1) | Where it is recognized as necessary for the promotion of the export of defense materials, etc. and national defense science and technology, the Administrator of the Defense Acquisition Program Administration may, with the approval of the Minister of National Defense, take necessary measures for the promotion of investment in the defense industry, expansion of export markets, etc. as prescribed by Presidential Decree.
<Amended by Act No. 9561, Apr. 1, 2009> |
| (2) | Where it is recognized as necessary for the promotion of export pursuant to the provisions of paragraph (1), the Administrator of the Defense Acquisition Program Administration may provide the persons falling under any of the following subparagraphs (limited to corporations and organizations) with the financial assistance, or material or human assistance within the budget, as prescribed by Presidential Decree:
<Amended by Act No. 9561, Apr. 1, 2009> |
| 1. | Persons who promote the export of defense materials, etc.; |
| 2. | Persons who engage in the business of consultation, guidance, public relations, exhibition, training, mediation of consultations, etc. for the promotion of export; |
| 3. | Persons who conduct exhibitions or operate exhibition centers relating to defense materials, etc. or who send defense materials, etc. to domestic or oversea exhibition; or |
| 4. | Persons who promote international cooperation for the export of defense materials, etc. |
| (3) | Where a foreign government or an exporter of defense materials, etc. requests the Administrator of the Defense Acquisition Program Administration to take measures pursuant to paragraph (1), the Administrator may take measures falling under any of the following subparagraphs at the expense of a requester:
<Added by Act No. 9561, Apr. 1, 2009> |
| 1. | Management of affairs related to assistance in subsequent supplies of war following the export of defense materials, etc.; |
| 2. | Technical assistance and business management regarding the remodeling and development of defense materials, etc. for export; or |
| 3. | A test evaluation for export. |
| (4) | Where it is necessary to advance the business of export promotion pursuant to the provisions of paragraphs (1) and (2), the Administrator of the Defense Acquisition Program Administration may dispatch public officials under his control to the countries of major export markets for export cooperation. |
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| Article 45 (Transfer, Lease, etc. of State Assets) |
|
| (1) | The Government may sell, or lease with or without considerations the general assets and goods (including munitions; hereinafter the same shall apply) from among the State assets to defense contractors by means of free contract notwithstanding the
State Properties Act, and may grant permission for the use of administrative assets from among the State assets without consideration as prescribed by Presidential Decree notwithstanding the
State Properties Act.
<Amended by Act No. 9401, Jan. 30, 2009> |
| (2) | Where it is necessary for the manufacture, and research and manufacture of defense materials, and the manufacture of prototypes of defense materials, the Government may lease or transfer, with or without consideration, necessary specialized equipment, or goods to defense contractors or specialized research institutes as prescribed by Presidential Decree notwithstanding the
Commodity Management Act.
|
| (3) | Defense contractors or specialized research institutes shall not use State assets or goods for purposes other than permitted purposes, which have been transferred, leased or granted permission for use pursuant to the provisions of paragraph (1) or (2). |
| (4) | Where defense contractors request for transfer, loan or permission for use of defense facilities or defense materials held by the State for the purpose of export, the Government may transfer, lease or grant permission for use of the defense facilities or defense materials with or without consideration, or exchange defense materials held by defense contractors as far as there is no obstruction to military operations or the maintenance of war capability notwithstanding the provisions of other Acts or subordinate statutes. |
| (5) | When there is difference between the prices of defense facilities or defense materials that are exchanged pursuant to the provisions of paragraph (4), the difference shall be settled in cash. |
| (6) | Matters necessary for the transfer, lease, permission for use, exchange, etc. of defense facilities or defense materials shall be prescribed by Presidential Decree. |
법령보기 화면
| Article 46 (Special Cases, etc. of Contract) |
|
| (1) | Where the Government procures the repair parts that are essential to the management of defense materials and weapons systems, or entrusts research or manufacture of prototypes (including research services relating thereto) pursuant to the provisions of
Article 18 (4), the Government may conclude a short-term, long-term, fixed or approximation contract. In such cases, the kinds, terms, methods of contracts, and other necessary matters shall be prescribed by Presidential Decree, notwithstanding the provisions of the Act on Contracts to which the State is a Party or other relevant Acts or subordinate statutes.
<Amended by Act No. 9561, Apr. 1, 2009> |
| (2) | Where the payment of retainers and part payments is needed when a contract pursuant to the provisions of paragraph (1) is concluded, the retainers and part payments may be paid within the extent provided for in the budget of the relevant year. In such cases, the retainers or part payments paid over shall not be used for any purpose other than the implementation of the relevant contract. |
| (3) | Where a contract provided for in paragraph (1) is concluded, the standards and methods of cost accounting, and the payment standards, payment methods and payment procedures for retainers and part payments pursuant to the provisions of paragraph (2) shall be prescribed by Ministerial Decree of National Defense. In such cases, the Minister of National Defense shall consult with the Minister of Strategy and Finance in advance.
<Amended by Act No. 8852, Feb. 29, 2008> |
| (4) | Regarding the retainers and part payments to be paid over where a long-term contract is concluded pursuant to the provisions of paragraph (1), the settlement may be postponed until the last delivery of contract materials, notwithstanding the provisions of the Act on Contracts to which the State is a Party or other relevant Acts or subordinate statutes. |
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| Article 47 (Grounds for Disqualification from Designation as Defense Contractor) |
|
Any person who falls under any of the following subparagraphs shall not be designated as a defense contractor:
| 1. | Where the officer (including spouse and direct ascendant or descendant) of a defense contractor, whose designation has been revoked pursuant to the provisions of
Article 48 (1), is an officer of another defense contractor that seeks to be designated before three years have passed since such revocation; or
|
| 2. | Where a defense contractor seeks to be designated at the same place with the same facilities before six months have passed since the revocation of designation as a defense contractor pursuant to the provisions of
Article 48 (1).
|
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| Article 48 (Revocation, etc. of Designation) |
|
| (1) | Where a defense contractor falls under any of the following subparagraphs, the Minister of Knowledge Economy may revoke such designation after consultation with the Administrator of the Defense Acquisition Program Administration:
<Amended by Act No. 8852, Feb. 29, 2008; Act No. 9561, Apr. 1, 2009> |
| 1. | Where the representative and officer of a defense contractor have violated the provisions of pledge of integrity pursuant to the provisions of
Article 6;
|
| 2. | Where a defense contractor has failed to meet the standards for facilities and requirements for security pursuant to the provisions of
Article 35 (1);
|
| 3. | Where a defense contractor has not obtained approval pursuant to the provisions of
Article 35 (3);
|
| 4. | Where a defense contractor has rejected, avoided or failed to perform the contract for supply of defense materials to the Government without justifiable grounds; |
| 5. | Where a defense contractor has failed to comply with an order for performance pursuant to the provisions of
Article 36 (5);
|
| 6. | Where a defense contractor has obtained a loan pursuant to the provisions of
Article 38 (1) by fraudulent or other unlawful means, or used funds for other purposes;
|
| 7. | Where a defense contractor has obtained subsidies pursuant to the provisions of
Article 39 (1) by fraudulent or other unlawful means, or used subsidies for other purposes;
|
| 8. | Where a defense contractor has disposed of the assets without obtaining approval pursuant to the provisions of
Article 39 (2);
|
| 9. | Where a defense contractor has used State assets or goods for other purposes in violation of the provisions of
Article 45 (3);
|
| 10. | Where a defense contractor has not performed the order of disposition necessary for the replacement, supplementation, expansion or relocation of facilities pursuant to the provisions of
Article 49 (1);
|
| 11. | Where a defense contractor has violated an order pursuant to the provisions of
Article 53 (1);
|
| 12. | Where a defense contractor has concluded a contract for supply by furnishing the Government with false or other unlawful cost data; or |
| 13. | Where a defense contractor has requested the revocation of designation as defense contractor from the Minister of Knowledge Economy along with the relevant documents as it has become incapable of conducting normal business due to nonpayment, bankruptcy or other unavoidable operational reasons. |
| (2) | Where a defense contractor falls under any of paragraph (1) 1 through 12, the Administrator of the Defense Acquisition Program Administration may request the Minister of Knowledge Economy to revoke its designation.
<Amended by Act No. 8852, Feb. 29, 2008> |
| (3) | Where defense materials fall under any of the following subparagraphs, the Administrator of the Defense Acquisition Program Administration may revoke the designation after consultation with the Minister of Knowledge Economy:
<Amended by Act No. 8852, Feb. 29, 2008> |
| 1. | Where it is recognized that it can be procured from two or more enterprises and the quality shall be guaranteed; |
| 2. | Where there is no requirement for such materials from the military, or the system equipment has been deleted; |
| 4. | Where the revocation of designation of defense materials is necessary, or there is no need to keep the designation of such defense materials following research and development, change, cancellation of purchase, etc. |
| (4) | Where a guarantee organization is engaged in business other than as stipulated in its articles of incorporation, or performs an act in violation of the conditions of designation, the Administrator of the Defense Acquisition Program Administration may revoke its designation as a guarantee organization. |
| (5) | Where the Minister of Knowledge Economy or the Administrator of the Defense Acquisition Program Administration intends to revoke designation of a defense contractor or guarantee organization pursuant to the provisions of paragraphs (1) and (4), he shall hold a hearing.
<Amended by Act No. 8852, Feb. 29, 2008> |
| (6) | Matters necessary for the procedures, etc. of revocation of designation pursuant to the provisions of paragraphs (1), (3) and (4) shall be prescribed by Presidential Decree. |
CHAPTER VII SUPPLEMENTARY PROVISIONS
법령보기 화면
| Article 49 (Replacement, Supplementation, Expansion or Relocation of Facilities) |
|
| (1) | Where there arises a dire need for national defense in a state of war, disaster or other emergency equivalent thereto, the Minister of Knowledge Economy may, at the request of the Administrator of the Defense Acquisition Program Administration, order the operator of a defense enterprise to take measures necessary for the replacement, supplementation, expansion or relocation of the facilities directly provided by such enterprise to the manufacture of defense materials.
<Amended by Act No. 8852, Feb. 29, 2008> |
| (2) | The Minister of Knowledge Economy shall compensate for any loss arising from the replacement, supplementation, expansion or relocation of the facilities due to an order pursuant to paragraph (1).
<Amended by Act No. 8852, Feb. 29, 2008> |
| (3) | The person who has succeeded to the business which has the facilities with an order for replacement, supplementation, expansion or relocation pursuant to paragraph (1), shall succeed to the rights and obligations under paragraphs (1) and (2) resulting from the order. |
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| Article 50 (Strict Observance of Secret) |
|
No person who falls under any of the following subparagraphs shall divulge or stealthily use any secrets he or she has learned in the course of performing his or her duty regarding a defense acquisition program: <Amended by Act No. 10218, Mar. 31, 2010>
| 1. | A person who held or is holding the post falling under
Article 6 (1) 1 and 2;
|
| 2. | A person who has been entrusted with the duty of ombudsman pursuant to
Article 6 (9);
|
| 3. | A person who is or was a representative, officer or staff at the Defense Agency for Technology and Quality, a defense contractor, general enterprise, specialized research institute or general research institute; |
| 4. | A person who engaged or is engaging in the business of the manufacture and research of defense materials at the Defense Agency for Technology and Quality, a defense contractor, general enterprise, specialized research institute or general research institute. |
법령보기 화면
| Article 50-2 (Approval for Participation in National Strategic Arms Projects, etc.) |
|
| (1) | When a company, the management right of which is substantially acquired by a foreign company or foreigner intends to participate in national strategic arms projects or other projects equivalent thereto, the company shall in advance obtain the approval from the Administrator of the Defense Acquisition Program Administration, for the purpose of preventing science technology for national defense from being leaked overseas. |
| (2) | Standards, etc. for the kinds of projects subject to approval, procedure and time of approval, and substantial acquisition of the management right pursuant to paragraph (1) shall be prescribed by Presidential Decree. |
[This Article Added by Act No. 10218, Mar. 31, 2010]
법령보기 화면
| Article 51 (Consultation, etc. on Manufacture and Sales Contracts for Defense Materials) |
|
| (1) | Where a government agency or a person other than a government agency needs defense materials for the purposes of maintaining national security, guarding, research, testing or inspection, etc., it may purchase them after concluding a manufacture or sales contract for defense materials with a defense contractor. |
| (2) | A government agency which intends to purchase defense materials under paragraph (1) shall consult with the Administrator of the Defense Acquisition Program Administration in advance, and the person other than the government agency shall obtain approval from the Administrator of the Defense Acquisition Program Administration upon recommendation by the head of the relevant central administrative agency:
Provided, That an enterprise and defense contractor which have obtained a manufacturer's license regarding military firearms, swords, explosives, etc. under
Article 53 (1) need not receive the recommendation from the head of the relevant central administrative agency.
|
[This Article Wholly Amended by Act No. 9561, Apr. 1, 2009]
법령보기 화면
| Article 52 (Collection and Use of Technology Royalties) |
|
| (1) | The Administrator of the Defense Acquisition Program Administration may conclude contracts for the use of relevant technology with persons who intend to use the outcomes of research and development thereof, and collect technology royalties from those who use it. |
| (2) | The technology royalties collected pursuant to paragraph (1) shall be used for the following purposes: |
| 1. | Reinvestment in research and development; |
| 2. | Expenses of registration of intellectual property rights regarding national defense science and technology and the administration thereof; |
| 4. | Operational expenses of organizations which researched and developed the relevant national defense science and technology. |
| (3) | Matters necessary for the calculation, methods of collection, procedures for collection, etc. of technology royalties pursuant to paragraph (1) shall be determined and announced by the Administrator of the Defense Acquisition Program Administration. |
법령보기 화면
| Article 53 (Special Precedents regarding Manufacture of Military Firearms, Swords, Explosives, etc.) |
|
| (1) | Regarding firearms, swords, explosives, etc., the Administrator of the Defense Acquisition Program Administration shall permit, supervise and issue necessary orders or take necessary measures on the manufacture, import, export, transfer, takeover, possession, use, storage, transportation, scrapping, etc. as prescribed by Presidential Decree, notwithstanding the provisions of other Acts or subordinate statutes. |
법령보기 화면
| Article 54 (Orders, etc. for Sale) |
|
| (1) | Where there arises a dire need for national defense in time of war, disaster or other emergencies equivalent thereto, or the operator of a defense enterprise or a person who has defense materials for sale brings about serious danger to national security by refusing to manufacture or sell defense materials, etc. without justifiable grounds, the Administrator of the Defense Acquisition Program Administration may order the operator of the defense enterprise or the person who has defense materials for sale to transfer the defense materials to the Government by fixing the time and price of transfer, time and method of payment, and other necessary matters. |
| (2) | Where the Administrator of the Defense Acquisition Program Administration cannot issue an order for transfer pursuant to the provisions of paragraph (1) because he could not ascertain the owner of defense materials, he may order the person in possession of the defense materials concerned to deliver over them by fixing the time and price of delivery, time and method of payment, and other necessary matters. |
| (3) | The cost of manufacture, the profits of the enterprise, etc. shall be considered when determining the transfer price pursuant to the provisions of paragraph (1). |
법령보기 화면
| Article 55 (Reserve of Raw Materials) |
|
| (1) | Defense contractors shall reserve raw materials for the manufacture of defense materials. |
| (2) | The administration of reserving of raw materials pursuant to the provisions of paragraph (1) and other necessary matters shall be prescribed by Presidential Decree. |
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| Article 56 (Suspension and Cessation of Business) |
|
Where a defense contractor intends to suspend or cease its business, it shall obtain approval from the Knowledge Economy in advance. In such cases, the Minister of Knowledge Economy shall consult with the Administrator of the Defense Acquisition Program Administration.
<Amended by Act No. 8852, Feb. 29, 2008>
법령보기 화면
| Article 57 (Control of Exports, etc.) |
|
| (1) | Anyone who intends to engage in the business of overseas exporting or intermediation (including intermediation between third party countries) of such trade in major defense materials and national defense science and technology shall report to the Administrator of the Defense Acquisition Program Administration, as prescribed by Presidential Decree. |
| (2) | Where anyone intends to export abroad or intermediate the trade of defense materials and national defense science and technology, he shall obtain permission from the Minster of Knowledge Economy or the Administrator of the Defense Acquisition Program Administration, as prescribed by Presidential Decree.
<Amended by Act No. 8852, Feb. 29, 2008> |
| (3) | Anyone who intends to engage in the business negotiations before obtaining export permission of major defense materials, and national defense science and technology shall obtain preliminary approval from the Administrator of the Defense Acquisition Program Administration, as prescribed by Ministerial Decree of National Defense. Anyone who intends to participate in international bidding shall obtain approval for participation in international bidding from the Administrator of the Defense Acquisition Program Administration, as prescribed by Ministerial Decree of National Defense. |
| (4) | The Administrator of the Defense Acquisition Program Administration may limit, or order the coordination of exports of major defense materials and national defense science and technology after consultation with the relevant administrative agency, as prescribed by Presidential Decree. |
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| Article 58 (Recovery of Fraudulent Gains) |
|
Where a defense contractor, general enterprise, specialized research institute or general research institute has made fraudulent gains by submitting data containing false or unlawful cost accounting to the Government, the Administrator of the Defense Acquisition Program Administration shall recover the fraudulent gains, with additional levies equivalent to the fraudulent gains, as prescribed by Presidential Decree.
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| Article 59 (Sanction against Violation of Pledge of Integrity) |
|
Where a person falling under
Article 6 (1) 4 fails to observe the terms of pledge of integrity, the Administrator of the Defense Acquisition Program Administration may impose sanctions by restricting qualification to participate in bidding for up to one year against the relevant defense contractor, general enterprise, specialized research institute or general research institute, as prescribed by Presidential Decree.
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| Article 60 (Legal Fiction, etc. of Public Officials) |
|
| (1) | The members of the Committee who are not public officials, members of the subcommittees and the person who has been entrusted as ombudsman pursuant to Article 6 (9) shall be deemed public officials in the application of the penal provisions of the Criminal Act and other Acts.
<Amended by Act No. 10218, Mar. 31, 2010> |
| (2) | The provisions of Chapter VII of the State Public Officials Act, regarding public service, and the Act on the Establishment and Operation of Public Officials' Councils shall apply mutatis mutandis to the executives and employees of the Defense Agency for Technology and Quality, and they shall be deemed public officials in the application of the penal provisions of the Criminal Act and other Acts. |
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| Article 61 (Delegation and Entrustment of Authority) |
|
| (1) | The Minister of National Defense may, as prescribed by Presidential Decree, delegate a part of his or her authority pursuant to this Act to the Administrator of the Defense Acquisition Program Administration. |
| (2) | The Administrator of the Defense Acquisition Program Administration may, as prescribed by Presidential Decree, entrust a part of his or her authority pursuant to this Act to the President of the Agency for Defense Development and to the President of the Defense Agency for Technology and Quality. |
CHAPTER VIII PENAL PROVISIONS
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| Article 62 (Penal Provisions) |
|
| (1) | Any person who receives a loan or subsidy pursuant to Article 38 (1) or 39 (1) by deceitful or unlawful means, or uses the loan or subsidy for other purposes shall be punished by imprisonment, with or without prison labor, for not more than ten years, or a fine not exceeding an amount equivalent to ten times the amount of the loan or subsidy. <Amended by Act No. 9561, Apr. 1, 2009> |
| (2) | Any person who obtains permission pursuant to Article 53 or 57 (2) by deceitful or unlawful means, or performs a relevant act without obtaining permission shall be punished by imprisonment, with or without prison labor, for not more than ten years, or a fine not exceeding 50 million won. |
| (3) | Any person who divulges or stealthily uses secrets that the person learned in the course of his or her duty, in violation of Article 50 shall be punished by imprisonment, with or without prison labor, for not more than five years, or by a fine not exceeding 30 million won. |
| (4) | Any person who falls under any of the following subparagraphs shall be punished by imprisonment, with or without prison labor, for not more than three years, or by a fine not exceeding ten million won: |
| 1. | Any person who transfers, exchanges or loans assets without approval from the Administrator of the Defense Acquisition Program Administration in violation of Article 39 (2); |
| 2. | Any person who uses the retainer or part payments for other purposes, which the person received pursuant to Article 46 (2); |
| 3. | Any person who performs an act in Article 48 (1) 12; or |
| 4. | Any person who violates an order pursuant to Article 49 (1), 53 or 54. |
| (5) | Any person who falls under any of the following subparagraphs shall be punished by imprisonment for not more than one year, or by a fine not exceeding five million won: <Amended by Act No. 9561, Apr. 1, 2009> |
| 1. | Any person who acquires a substantial controlling interest in management without obtaining approval pursuant to the main sentence of Article 35 (3); |
| 2. | Any person who uses State assets or goods for other purposes in violation of Article 45 (3); |
| 3. | Any person who uses defense materials for other purposes, which have been purchased by concluding a contract for manufacture and sales pursuant to Article 51 (1); |
| 4. | Any person who suspends or ceases his or her business without approval pursuant to Article 56. |
| (6) | Any person who falls under any of the following subparagraphs shall be punished by a fine not exceeding five million won: |
| 1. | Any person who fails to reserve raw materials for the manufacture of defense materials pursuant to Article 55 without justifiable grounds; |
| 2. | Any person who engages in export business of major defense materials without report pursuant to Article 57 (1), or who has reported export business of major defense materials in fraudulent or unlawful manners. |
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| Article 63 (Joint Penal Provisions) |
|
Where the representative of a corporation, or an agent, servant or other employee of a corporation or individual has committed an offense provided for in
Article 62 with regard to the affairs of the corporation or individual, such corporation or individual shall be fined pursuant to the provisions of
Article 62, in addition to the punishment of the offender:
Provided, That the same shall not apply to cases where such corporation or individual has not been negligent in giving due attention and supervision concerning the relevant duties to prevent such offence.
[This Article Wholly Amended by Act No. 9561, Apr. 1, 2009]
ADDENDA
Article 1 (Enforcement Date)
This Act shall enter into force on the date of its promulgation: Provided, That the provisions of Article 32 shall enter into force one month after the date of its promulgation. Article 2 (Repeal of Other Acts)
Article 3 (Preparation for Establishment of Agency for Defense Technology and Quality Assurance)
| (1) | The Administrator of the Defense Acquisition Program Administration shall entrust five or less founding members to administer the affairs of the establishment of the Agency for Defense Technology and Quality Assurance within thirty days from the date of promulgation of this Act. |
| (2) | The founding members shall prepare the articles of incorporation of the Agency for Defense Technology and Quality Assurance, obtain approval from the Administrator of the Defense Acquisition Program Administration, and have its incorporation registered. |
| (3) | Where the founding members have finished the registration of incorporation, they shall promptly hand over business to the President of the Agency for Defense Technology and Quality Assurance, whereupon, they are deemed as having been relieved of the entrustment after so handing over business. |
Article 4 (Applicable Precedents concerning Disqualification from Designation as Defense Contractor)
The provisions of Article 47 shall apply starting with the case of revocation of designation as defense contractor first after this Act enters into force.
Article 5 (Transitional Measures concerning Disposition, etc.)
Where there are provisions in this Act regarding applications, reports, etc. against the disposition that the administrative agency has executed pursuant to the provisions of the previous Act on Special Measures for the Defense Industry and the administrative agency at the time this Act enters into force, it shall be deemed such disposition, application, report, etc. pursuant to the provisions of this Act when there are provisions pertaining thereto in this Act.
Article 6 (Transitional Measures concerning Specialized and Departmentalized Enterprises, etc)
The provisions of the previous Act on Special Measures for the Defense Industry shall apply from the date this Act enters into force until December 31, 2008 to the enterprises and materials specialized and departmentalized pursuant to the provisions of the previous Act on Special Measures for the Defense Industry at the time this Act enters into force.
Article 7 (Transitional Measures concerning Fund for Fostering Defense Industry)
| (1) | The provisions of the previous Act on Special Measures for Defense Industry shall apply from the date this Act enters into force until December 31, 2006 to the Fund for Fostering Defense Industry established pursuant to the provisions of the previous Act on Special Measures for the Defense Industry at the time this Act enters into force. The authorities of the Minister of National Defense pursuant to the provisions of Article 7-2 (5) of the previous Act on Special Measures for the Defense Industry shall be exercised by the Administrator of the Defense Acquisition Program Administration. |
| (2) | The assets, claims and liability for the Fund for Fostering Defense Industry pursuant to the provisions of paragraph (1) shall be succeeded by the general account of the State on January 1, 2007. |
Article 8 (Transitional Measures concerning Designation as Specialized Research Institutes)
Organizations that have been designated as research institutes pursuant to the provisions of the previous Act on Special Measures for the Defense Industry at the time this Act enters into force shall be deemed as having been designated pursuant to this Act.
Article 9 (Transitional Measures concerning Designation of Defense Contractors, etc.)
The enterprises and materials that have been designated as defense contractors and defense materials pursuant to the provisions of the previous Act on Special Measures for the Defense Industry at the time this Act enters into force shall be deemed as having been designated pursuant to this Act.
Article 10 (Transitional Measures concerning Defense Industry Advancement Association)
| (1) | The Defense Industry Advancement Association authorized for establishment pursuant to the previous Act on Special Measures for the Defense Industry at the time this Act enters into force shall be deemed as having obtained permission for establishment pursuant to the provisions of Article 42. |
| (2) | The Defense Industry Advancement Association pursuant to the provisions of paragraph (1) shall be deemed as having been designated as a guarantee organization pursuant to the provisions of Article 43. |
| (3) | The businesses that the Defense Industry Advancement Association conducts as proxy pursuant to the provisions of Article 22-3 (7) of the previous Act on Special Measures for the Defense Industry at the time this Act enters into force shall be succeeded by the Administrator of the Defense Acquisition Program Administration. |
Article 11 (Transitional Measures concerning Activities by Defense Procurement Agency of the Ministry of National Defense and Each Service)
The activities conducted by the Defense Procurement Agency of the Ministry of National Defense and each service in connection with defense project programs, such as testing and evaluation, agreements, etc. before this Act enters into force shall be deemed as having been conducted by the Administrator of the Defense Acquisition Program Administration pursuant to the provisions of this Act.
Article 12 (Transitional Measures concerning Claims, Liabilities, Employees, etc. of Defense Quality Assurance Agency)
| (1) | Claims and liabilities relating to the activities conducted by the Agency for Defense Development in the name of the President of the Defense Quality Assurance Agency which was under the control of the Agency for Defense Development, and the assets used and administered by the President of the Defense Quality Assurance Agency from among the assets of the Agency for Defense Development at the time this Act enters into force shall be succeeded by the Agency for Defense Technology and Quality Assurance. |
| (2) | The employees working at the Defense Quality Assurance Agency at the time of establishment of the Agency for Defense Technology and Quality Assurance shall be succeeded by the Agency for Defense Technology and Quality Assurance at the same time that the Agency for Defense Technology and Quality Assurance is established within the extent of functions, organizations and regular numbers prescribed in the articles of incorporation. |
| (3) | The activities belonging to the businesses of the Defense Acquisition Program Administration from among the activities conducted by the President of the Defense Quality Assurance Agency before this Act enters into force shall be deemed as having been conducted by the Administrator of the Defense Acquisition Program Administration, and the activities belonging to the businesses of the Agency for Defense Technology and Quality Assurance shall be deemed as having been conducted by the President of the Agency for Defense Technology and Quality Assurance. |
Article 13 (Transitional Measures concerning Penal Provisions)
The application of penal provisions to the violations pursuant to the previous Act on Special Measures for the Defense Industry before this Act enters into force shall be pursuant to the provisons of the same Act.
Article 14 (Special Precedents concerning Special Appointments, etc.)
| (1) | For the purpose of efficiently promoting defense acquisition programs and maintaining the continuity of the programs, the civilian military employees who are or have been performing the duties relating to the defense acquisition programs may be specially appointed as public officials belonging to the Defense Acquisition Program Administration by June 30, 2006. In this case, the period of work necessary for the rank expected for appointment may be reduced, notwithstanding the provisions of Article 28 (2) 3 of the State Public Officials Act. |
| (2) | Those who have been specially employed pursuant to the provisions of paragraph (1) may be exempt from the appointment to probationer notwithstanding the provisions of main sentence of Article 29 (1) of the State Public Officials Act, and may be appointed to a higher rank as prescribed by Presidential Decree, notwithstanding the provisions of Article 40 of the same Act. |
| (3) | Where the salary of the person specially appointed pursuant to the provisions of paragraph (1) is less than the salary before the special appointment, all or a part of the difference in salary may be supplemented as prescribed by Presidential Decree, notwithstanding the provisions of Article 47 (1) of the State Public Officials Act. |
| (4) | Where the term of service of a specially appointed civilian military employee, who has been in service (including a term of service as soldier or other public official) for more than thirty years, is calculated for the purposes of conferment of decorations pursuant to the provisions of Article 15 of the Awards and Decorations Act, the term of service at the Defense Acquisition Program Administration shall be deemed as having served continuously as a civilian military employee. |
| (5) | The qualifications for application, method of examination, etc. in the special appointment pursuant to the provisions of paragraph (1) shall be prescribed by Presidential Decree. |
Article 15 (Amendment of Other Acts)
Article 16 (Relationship with Other Acts or Subordinate Statutes)
Where the provisions of the previous Act on Special Measures for the Defense Industry are cited in other Acts or subordinate statutes at the time this Act enters into force and there are corresponding provisions in this Act, this Act or the relevant provisions of this Act shall be deemed as having been cited in place of the previous provisions.
ADDENDA<Act No. 8486, May 25, 2007>
Article 1 (Enforcement Date)
This Act shall enter into force one year after the date of its promulgation.
Articles 2 through 10
Omitted.
ADDENDA<Act No. 8852, Feb. 29, 2008>
Article 1 (Enforcement Date)
This Act shall enter into force on the date of its promulgation. (Proviso Omitted.)
Articles 2 through 7
Omitted.
ADDENDA<Act No. 9401, Jan. 30, 2009>
Article 1 (Enforcement Date)
This Act shall enter into force six months after the date of its promulgation. (Proviso Omitted.)
Articles 2 through 11
Omitted.
ADDENDUM<Act No. 9561, Apr. 1, 2009>
This Act shall enter into force three months after the date of its promulgation.
ADDENDA<Act No. 10218, Mar. 31, 2010>
| (1) | (Enforcement Date) This Act shall enter into force six months after the date of its promulgation. |
| (2) | (Applicability to Presentation of Analysis and Evaluation Outcomes, etc) The amended provisions of Article 5 (4) shall apply starting with a project for improvement of defense capability first analyzed or evaluated after this Act enters into force. |
Last updated : 2010-09-08