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ACT ON DEVELOPMENT OF WATER MANAGEMENT TECHNOLOGIES AND ON PROMOTION OF WATER INDUSTRY

Act No. 15654, jun. 12, 2018

CHAPTER I GENERAL PROVISIONS
 Article 1 (Purpose)
The purpose of this Act is to contribute to improving the quality of life and to creating a sustainable water circulation system by contributing to the promotion of the water industry by providing a framework for the systematic development of water management technologies.
 Article 2 (Definitions)
The definitions of terms used in this Act shall be as follows:
1. The term "water management technology" means any technology necessary for the balanced management of the volume and quality of water and of aquatic ecosystems;
2. The term "water industry" means any of the following business:
(a) Technology business related to waterworks facilities under subparagraph 17 of Article 3 of the Water Supply and Waterworks Installation Act;
(b) Business of installing and managing sewerage systems under subparagraph 3 of Article 2 of the Sewerage Act;
(c) Drinking water-related business under subparagraph 9 of Article 3 of the Drinking Water Management Act;
(d) Business related to seawater desalination facilities under subparagraph 32 of Article 3 of the Water Supply and Waterworks Installation Act;
(e) Business related to water reuse under subparagraph 1 of Article 2 of the Act on Promotion and Support of Water Reuse;
(f) Business related to the treatment and use of wastewater under subparagraph 4 of Article 2 of the Water Environment Conservation Act;
(g) Business related to the development, use, purification, etc. of groundwater under subparagraph 1 of Article 2 of the Groundwater Act;
(h) Business related to the development, use, etc. of rural water under subparagraph 3 of Article 2 of the Agricultural and Fishing Villages Improvement Act;
(i) River works under subparagraph 5 of Article 2 of the River Act;
(j) Maintenance of small rivers, etc. under subparagraph 4 of Article 2 of the Small River Maintenance Act;
(k) Business related to the construction, use, management, etc. of dams under subparagraph 1 of Article 2 of the Act on Construction of Dams and Assistance to Their Environs;
(l) Other business prescribed by Presidential Decree from among businesses using or managing water as prescribed by relevant statutes;
(m) Design, construction and operation related to the business under items (a) through (l); test, examination and certification of parts, materials, equipment, instruments and chemicals; and manufacture, sale and distribution thereof; consulting thereon, etc.;
3. The term "water enterprise" means any enterprise engaging in the water industry;
4. The term "public water utility" means any institution engaging in the water industry from among public institutions under Article 4 of the Act on the Management of Public Institutions, local government-directly operated enterprises under Article 5 of the Local Public Enterprises Act, local government-invested public corporations under Article 49 of the same Act and local public agencies under Article 76 of the same Act;
5. The term "water industry test bed facility and water industry cluster" means any facility and cluster established to achieve synergy effects through the interrelation between water industry-related enterprises, research institutes, universities, enterprise support facilities, etc. by concentrating them in a certain area;
6. The term "commercialization" means the development, manufacture or sale of products using technologies or the improvement of technologies in the process thereof;
7. The term "test bed" means the test or operation of a technology formulated theoretically by making trial products, etc. with such technology; or the determination of scale, optimization or securing ancillary technologies by applying a developed technology to a test bed facility, etc.
 Article 3 (Responsibilities of State)
(1) The State and local governments shall formulate and implement policies necessary for the development of water management technologies and for the promotion of the water industry.
(2) Public water utilities shall provide consumers with high quality water-related services through management innovation and technological development and shall proactively cooperate in the policies for the development of water management technologies and for the promotion of the water industry.
(3) For the construction of a sustainable water circulation system, the State, local governments or public water utilities shall endeavor to discover and disseminate excellent products or technologies.
 Article 4 (Relationship with Other Statutes)
Except as otherwise provided in other statutes, the relevant provisions of this Act shall apply concerning the development of water management technologies and the promotion of the water industry.
CHAPTER II ESTABLISHMENT OF FOUNDATION FOR DEVELOPMENT OF WATER MANAGEMENT TECHNOLOGIES AND FOR PROMOTION OF WATER INDUSTRY
 Article 5 (Master Plan for Development of Water Management Technologies and for Promotion of Water Industry)
(1) The Government shall formulate and implement a master plan for the systematic development of water management technologies and for the promotion of the water industry (hereafter referred to as "master plan" in this Article) upon deliberations by the Presidential Advisory Council on Science and Technology pursuant to the Presidential Advisory Council on Science and Technology Act.
(2) The master plan shall include the following matters:
1. Basic direction-setting and objectives of the development of water management technologies and of the promotion of the water industry;
2. Analysis of domestic and foreign environment of water management technologies and the water industry;
3. Measures to incorporate water management technologies with a sustainable water circulation system;
4. Training of specialized personnel in the field of water management and creation of jobs;
5. Development of water management technologies and stimulation of dissemination thereof;
6. Measures to support the expansion into foreign markets of water management technologies and the water industry;
7. Measures to efficiently use water industry test bed facilities and water industry clusters;
8. Other matters necessary for the development of water management technologies and for the promotion of the water industry.
(3) The Special Metropolitan City Mayor, a Metropolitan City Mayor, a Special Self-Governing City Mayor, Do Governors or a Special Self-Governing Province Governor (hereinafter referred to as "Mayor/Do Governor") shall, pursuant to the master plan, formulate and implement an implementation plan for the development of water management technologies and for the promotion of the water industry (hereafter referred to as "implementation plan" in this Article) in consideration of regional characteristics.
(4) Matters necessary for the formulation and implementation of the master plan and implementation plan shall be prescribed by Presidential Decree.
 Article 6 (Survey of Actual Conditions of Water Industry)
(1) To efficiently pursue policies related to the water industry, the Minister of Environment shall survey the actual conditions of the water industry (hereinafter referred to as "survey of actual conditions") and make public the result thereof.
(2) Where necessary for a survey of actual conditions, the Minister of Environment may request relevant central administrative agencies, local governments, public water utilities, related enterprises, other related juristic persons or organizations to submit data or to provide opinions, etc. In such cases, the central administrative agencies, etc. in receipt of such request shall comply therewith unless there is a compelling reason not to do so.
(3) Necessary matters, such as the details, timing and methods of, procedures for conducting a survey of actual conditions, shall be prescribed by Presidential Decree.
 Article 7 (Establishment of Comprehensive Water Technology Information System)
(1) To promote the development of water industry-related technologies and to efficiently manage related information, the Minister of Environment shall establish and operate a comprehensive water technology information system (hereafter referred to as "information system" in this Article) and promote the use of such information.
(2) The Minister of Environment may request relevant central administrative agencies, local governments, public water utilities, other related juristic persons or organizations to submit data necessary for the establishment and operation of an information system. In such cases, the central administrative agencies, etc. in receipt of such request shall comply therewith unless there is a compelling reason not to do so.
(3) Where the Minister of Environment establishes the information system, such system shall be linked to the basic plans and implementation plans for national informatization under Articles 6 and 7 of the Framework Act on National Informatization.
(4) Matters necessary for the establishment, management and use of the information system under paragraph (1) and for a request to submit data, etc. under paragraph (2) shall be prescribed by Ordinance of the Ministry of Environment.
 Article 8 (Expediting Development of Water Management Technologies)
(1) To expedite the development of water management technologies, the Government shall promote the following matters:
1. Survey of trends in and demand for water management technologies;
2. Research and development of water management technologies;
3. Technological cooperation and exchange of personnel, information, etc. between institutions;
4. Other matters necessary for the research and development of water management technologies.
(2) The Government may subsidize expenses incurred by those who research and develop water management technologies to expedite the development of water management technologies under paragraph (1).
 Article 9 (Creation of Foundation for Standardization of Water Industry)
(1) To create a foundation for the standardization of the water industry in order to promote the water industry and to strengthen the competitiveness of water enterprises, the Government may undertake the following projects:
1. Standardization of technologies, products, etc. related to the water industry;
2. Research for expediting standardization under subparagraph 1 and projects for disseminating standardization;
3. Creation of an environment in which a performance test of products on an international level is possible for the creation of a foundation for the standardization of the water industry;
4. Other projects prescribed by Presidential Decree for the creation of a foundation for the standardization of the water industry.
(2) Where necessary to undertake projects to create a foundation for the standardization of the water industry under paragraph (1), the Minister of Environment may designate specialized institutions related to the standardization of the water industry to implement the projects and may partially or fully subsidize expenses incurred in such projects.
 Article 10 (Support for Commercialization of Excellent Products)
(1) The Minister of Environment may examine and evaluate products or technologies according to the procedures and standards prescribed by Presidential Decree and designate those of which performance is verified as excellent products or technologies (hereafter referred to as "excellent products, etc." in this Article) in order to strengthen the technological competitiveness of domestic water enterprises.
(2) To promote the development and dissemination of excellent products, etc., the Minister of Environment may sponsor aid projects that provide financial benefits, such as application of preferential subsidy rates, to local governments with outstanding results in the introduction of excellent products, etc.
(3) The Minister of Environment may select local governments that have contributed to expanding the dissemination of excellent products, etc. to give an award and provide such local governments preferential support in projects, etc. subsidized by the National Treasury.
(4) The State, local governments or public water utilities may establish and operate a cooperation system to expedite the development and dissemination of excellent products, etc., and purchase the excellent products, etc. as determined by the cooperation system or have relevant facilities related to the water industry in their jurisdiction use the excellent products, etc.
(5) A person who is in charge at the State, local governments or public water utilities that have contracted to purchase or use excellent products, etc. pursuant to paragraph (4) shall not be responsible for the loss incurred from the purchase or use of such products, etc. unless willful intention or gross negligence is proven.
(6) Matters necessary for the term of validity of designation under paragraph (1), for the standards for evaluation of the results under paragraph (2), and for the establishment, operation, etc. of the cooperation system under paragraph (4) shall be prescribed by Presidential Decree.
 Article 11 (Implementation of Pilot Projects)
(1) To promote the use and dissemination of innovative technologies related to the water industry prescribed by Presidential Decree, the Government may formulate plans for pilot projects and implement the projects.
(2) The Government may provide administrative and financial assistance to local governments, public water utilities, research institutions, etc. participating in pilot projects under paragraph (1).
(3) The Government shall evaluate the results of pilot projects under paragraph (1).
(4) The procedures for formulating and promoting a plan for pilot projects under paragraph (1), methods of evaluating the results of such projects under paragraph (3), etc. shall be prescribed by Presidential Decree.
 Article 12 (Support for Establishment of Business)
The Government may support the promotion of establishment, growth and development of water enterprises, as prescribed by Presidential Decree.
 Article 13 (Designation of Innovative Water Enterprises)
(1) For the promotion of the water industry, the Minister of Environment may designate a water enterprise satisfying at least two of the following requirements from among the small and medium enterprises under Article 2 (1) of the Framework Act on Small and Medium Enterprises (hereinafter referred to as "small and medium enterprises") as an innovative water enterprise:
1. An investment in research, development, etc. related to the water industry shall be undertaken in a proportion equal to or greater than that prescribed by Presidential Decree;
2. Technologies, engineering methods or products (including parts, equipment, instruments, facilities and services) related to the water industry shall be exported in a proportion equal to or greater than that prescribed by Presidential Decree;
3. Parts, equipment, instruments, technologies or engineering methods that have obtained certification prescribed by Presidential Decree from foreign governments, public institutions, associations, etc. shall be in its possession.
(2) Matters necessary for the term of validity of designation of innovative water enterprises, methods of designation, procedures for designation, etc. under paragraph (1) shall be prescribed by Presidential Decree.
(3) Where an innovative water enterprise designated pursuant to paragraph (1) falls under any of the following cases, the Minister of Environment may revoke the designation as prescribed by Presidential Decree: Provided, That where such enterprise falls under subparagraph 1, he or she shall revoke the designation:
1. Where an enterprise obtains designation by fraud or other improper means;
2. Where an enterprise ceases to satisfy the requirements for designation under paragraph (1).
(4) As for an innovative water enterprise whose designation is revoked pursuant to paragraph (3), the Minister of Environment shall not re-designate the enterprise as an innovative water enterprise unless three years elapse from the date such designation is revoked.
(5) Where the Minister of Environment intends to revoke designation pursuant to paragraph (3), he or she shall hold a hearing.
 Article 14 (Support for Innovative Water Enterprises)
(1) The State may support the research and development of new technologies and products, the improvement of research facilities, etc. of innovative water enterprises designated pursuant to Article 13 (1).
(2) The Minister of Environment shall regularly conduct a performance evaluation of innovative water enterprises provided with subsidies.
(3) Matters necessary for the performance evaluation under paragraph (2) shall be prescribed by Presidential Decree.
CHAPTER III ESTABLISHMENT AND OPERATION OF WATER INDUSTRY TEST BED FACILITIES AND WATER INDUSTRY CLUSTERS
 Article 15 (Establishment and Operation of Water Industry Test Bed Facilities and Water Industry Clusters)
(1) To promote the water industry and to strengthen the competitiveness of water enterprises, the State or local governments may establish and operate water industry test bed facilities and water industry clusters including the following facilities and clusters:
1. Water industry research and promotion facilities that are established for research and technological development of the water industry, for training of specialized personnel, for support for the establishment of business and commercialization, for support for publicity of products, for support for entry into markets, etc.;
2. Facilities for the examination of technologies of water enterprises and for the certification of products, and test bed facilities;
3. Water industry clusters;
4. Other facilities necessary to support water enterprises for expansion into foreign markets.
(2) Water industry test bed facilities and water industry clusters established pursuant to paragraph (1) shall be deemed the following clusters, facilities and zones:
1. Facilities for clustering venture businesses under Article 18 (1) of the Act on Special Measures for the Promotion of Venture Businesses and the venture business development and promotion zones under Article 18-4 (1) of the same Act;
(3) The State may entrust the operation of water industry test bed facilities and water industry clusters to specialized institutions under Article 23, as prescribed by Presidential Decree, and in such cases, it may fully or partially subsidize expenses incurred therein.
(4) Local governments may entrust the operation of water industry test bed facilities and water industry clusters to the relevant specialized institutions prescribed by Presidential Decree.
(5) The State or local governments may collect fees from users of water industry test bed facilities and water industry clusters, as prescribed by Ordinance of the Ministry of Environment.
(6) Matters necessary for the selection, etc. of locations for water industry test bed facilities and water industry clusters under paragraph (1) shall be prescribed by Presidential Decree or municipal ordinances.
 Article 16 (Support for Residing Enterprises)
(1) To expedite the technological development, commercialization and expansion into foreign markets of enterprises, research institutes, universities, relevant institutions, organizations, etc. that reside in water industry test bed facilities and water industry clusters (hereinafter referred to as "residing enterprises, etc."), the State or local governments may support the following matters:
1. Priority use of the water industry research and promotion facilities and water industry test bed facilities under Article 15 (1), and reduction in or exemption from usage fees;
2. Priority use of the dispersed test bed facilities under Article 17 (1) and reduction in or exemption from usage fees;
3. Priority participation in projects supporting expansion into foreign markets under Article 21;
4. Priority provision of loans, etc. under Article 6 (1) 14 of the Korea Environmental Industry and Technology Institute Act;
5. Participation in other projects deemed necessary by the Minister of Environment or the heads of local governments.
(2) The State or local governments may promote policies necessary to expedite commercialization and dissemination of the technologies and products created by residing enterprises, etc.
 Article 17 (Establishment of Dispersed Test Bed Facilities)
(1) To support the technological development of water enterprises and the commercialization thereof, the State, local governments or public water utilities may establish and operate test bed facilities in waterworks facilities, public sewerage facilities, public wastewater treatment facilities, water resource facilities, etc. under their jurisdiction (hereinafter referred to as "dispersed test bed facilities") in connection with water industry test bed facilities or with water industry test bed facilities within water industry clusters.
(2) The State, local governments or public water utilities may collect fees from users of dispersed test bed facilities, as prescribed by Ordinance of the Ministry of Environment.
 Article 18 (Special Cases concerning Supply of Sewage or Wastewater to Test Bed Facilities)
(1) Where a public sewerage management authority under Article 18 (1) of the Sewerage Act or an installer or operator of a public wastewater treatment facility under Article 48 (1) of the Water Environment Conservation Act supplies sewage or wastewater to a test bed facility (including a dispersed test bed facility under Article 17; hereinafter the same shall apply), the sewage or wastewater shall be deemed discharged appropriately, notwithstanding Article 19 (2) of the Sewerage Act and Article 50 (1) of the Water Environment Conservation Act.
(2) Where treated water discharged from a test bed facility satisfies the standards for effluent water quality under Article 12 (3) of the Water Environment Conservation Act and Article 7 (1) of the Sewerage Act, a person who operates the test bed facility may discharge the treated water to public waters under subparagraph 9 of Article 2 of the Water Environment Conservation Act; and where the treated water satisfies the standards for water quality under Article 14 of the Act on Promotion and Support of Water Reuse, such person may reuse or supply the treated water discharged from the test bed facility.
 Article 19 (Establishment of the Korea Water Technology Certification Agency)
(1) To efficiently implement the duties of certification and examination to secure water management technologies or hygienic safety, quality, performance, etc. of water management products and other duties related thereto, a Korea Water Technology Certification Agency (hereinafter referred to as the "Certification Agency") shall be established.
(2) The Certification Agency shall be incorporated as a juristic person.
(3) The Certification Agency shall be established at the time when it registers such establishment at the location of its main office.
(4) The duties of the Certification Agency shall be as follows:
1. Certification and examination of water management technologies or of the hygienic safety, quality, performance, etc. of water management products;
2. Development, inspection and research of standards for certification and examination under subparagraph 1;
3. Evaluation of risks and development of evaluation methods for the development of standards under subparagraph 2;
4. Other duties entrusted by the Minister of Environment with regard to certification and examination of water management technologies or of water management products.
(5) The State may fully or partially subsidize expenses incurred in the establishment, operation, etc. of the Certification Agency within budgetary limits.
(6) Except as otherwise provided in this Act, the provisions regarding incorporated foundations under the Civil Act shall apply mutatis mutandis to the Certification Agency.
 Article 20 (Establishment of Water Industry Support Centers)
(1) A Mayor/Do Governor may establish water industry support centers to perform the following duties:
1. Analysis of the current status of and trends in the water industry in his or her jurisdiction;
2. Support for policies and development of programs for the promotion of the water industry;
3. Support for the development of technologies related to the water industry;
4. Support for public institutions and enterprises with water management technologies;
5. Support for the establishment of water enterprises, for the strengthening of capabilities thereof and for expansion into foreign markets;
6. Management of water industry test bed facilities and water industry clusters;
7. Other duties deemed necessary by the Mayor/Do Governor for the promotion of the water industry.
(2) The Government may provide administrative and financial support to water industry support centers under paragraph (1) as prescribed by Presidential Decree.
(3) Matters necessary for the establishment and operation of water industry support centers under paragraph (1) shall be prescribed by municipal ordinances.
CHAPTER IV SUPPORT FOR EXPANSION INTO FOREIGN MARKETS OF WATER ENTERPRISES
 Article 21 (Support for Expansion into Foreign Markets)
To support the expansion into foreign markets of small and medium enterprises from among water enterprises, the State may promote the following projects:
1. Survey and research of foreign markets and provision of information;
2. Joint international research and exchange of technologies and personnel;
3. Support for the acquisition of international certification, test bed trials in foreign countries and the international standardization of technologies;
4. Other projects deemed necessary by the Minister of Environment for international cooperation and support for expansion into foreign markets.
 Article 22 (Establishment of the Korea Water Partnership)
(1) Water enterprises, public water utilities, local governments, etc. shall establish a Korea Water Partnership (hereinafter referred to as the "Partnership") to support the expansion into foreign markets of water enterprises and to promote the water industry.
(2) The Partnership shall be incorporated as a juristic person.
(3) The Partnership shall be established at the time when it registers such establishment at the location of its main office.
(4) The Partnership shall implement the following projects:
1. Promotion of public-private cooperation to strengthen the competitiveness of the water industry;
2. Detection of projects to stimulate the expansion into foreign markets of water enterprises and support therefor;
3. Collection and dissemination of foreign water management technologies and of foreign information on the water industry;
4. Other projects stipulated by the articles of incorporation to support the expansion into foreign markets of water enterprises and to promote the water industry.
(5) Except as otherwise provided in this Act, the provisions regarding incorporated associations under the Civil Act shall apply mutatis mutandis to the operation of the Partnership.
CHAPTER V SUPPLEMENTARY PROVISIONS
 Article 23 (Entrustment of Duties)
Part of the duties of central administrative agencies under this Act may be entrusted to the following specialized institutions as prescribed by Presidential Decree:
1. The Certification Agency;
2. The Partnership;
3. The Korea Water Resources Corporation under the Korea Water Resources Corporation Act;
4. The Korea Environment Corporation under the Korea Environment Corporation Act;
5. The Korea Environmental Industry and Technology Institute under the Korea Environmental Industry and Technology Institute Act;
6. The Korea Water and Wastewater Association under the Water Supply and Waterworks Installation Act;
7. The Korea Rural Community Corporation under the Korea Rural Community Corporation and Farmland Management Fund Act;
8. Government-funded research institutes under the Act on the Establishment, Operation and Fostering of Government-Funded Research Institutes.
 Article 24 (Legal Fiction as Public Officials in Applying Penalty Provisions)
The executive officers and employees of institutions, organizations or juristic persons who are engaged in the duties entrusted pursuant to Article 23 shall be deemed public officials in applying Articles 129 through 132 of the Criminal Act.
ADDENDA
Article 1 (Enforcement Date)
This Act shall enter into force six months after the date of its promulgation: Provided, That Articles 15 (1), 17 and 18 shall enter into force on the date of its promulgation and Article 19 shall enter into force one year after the date of its promulgation.
Article 2 (Transitional Measures concerning the Korea Water Partnership)
(1) The board of directors of the Korea Water Partnership (hereinafter referred to as "former juristic person"), an incorporated association, as at the time this Act enters into force, may determine to file an application with the Minister of Environment to approve succession to all the property, rights and obligations thereof by the Partnership to be established pursuant to this Act.
(2) The former juristic person that obtains approval from the Minister of Environment pursuant to paragraph (1) shall be deemed dissolved simultaneously with the establishment of the Partnership pursuant to this Act, notwithstanding the provisions of the Civil Act regarding dissolution and liquidation, and all the property, rights and obligations belonging to the former juristic person shall be succeeded to by the Partnership.
Article 3 (Transitional Measures concerning Water Industry Test Bed Facilities and Water Industry Clusters)
The water industry clusters established pursuant to Articles 6 and 13-2 of the Environmental Technology and Industry Support Act as at the time this Act enters into force shall be deemed water industry test bed facilities and water industry clusters under this Act.