CHAPTER I GENERAL PROVISIONS
The purpose of this Act is to make defense science and technology innovation and strengthen the national competitiveness by establishing a framework for defense science and technology innovation, thereby ensuring strong national defense and further contributing to the development of the national economy.
The terms used in this Act are defined as follows:
| 2. | The term “defense science and technology” means science and technology necessary for the development, manufacturing, operation, improvement, remodeling testing, measurement, etc. of munitions under subparagraph 2 of Article 3 of the Defense Acquisition Program Act to be used for military purposes; |
| 3. | The term “defense science and technology innovation” means a series of processes to obtain the capability to develop defense science and technology and to create useful outcomes obtaining and using advanced technology; |
| 4. | The term “future-leading defense technology” means innovative and emerging national defense science and technology to be applied for any weapons system whose requirements under Article 15 (1) of the Defense Acquisition Program Act have not been determined or planned; |
| 5. | The term “defense research and development” means the following research and development: |
| (a) | Research and development of weapons systems; |
| (c) | Research and development of future-leading defense technology; |
| (d) | Other research and development determined by the Minister of the Defense Acquisition Program Administration, such as research and development using new technologies; |
| 6. | The term “development outcomes” means any tangible outcomes, such as products (including prototypes and trial products), research equipment, facility, etc., as well as intangible outcomes, including technical data and intellectual property rights, all of which have been obtained in the course of, or generated as a result of, national defense research and development; |
| Article 3 (Responsibilities of the State) |
| (1) | The State shall establish and implement comprehensive policies for defense science and technology innovation. |
| (2) | A company, a university, a research institute, and an agency, organization or similar entity related to defense science and technology (hereinafter referred to as “research institute or similar entity”) shall make an utmost effort to strengthen the capability for defense science and technology innovation and to ensure the good use of research and development outcomes. |
| Article 4 (Basic Principles of Defense Science and Technology Innovation) |
The Minister of National Defense and the Minister of the Defense Acquisition Program Administration shall observe the following principles to promote defense science and technology innovation:
| 2. | To secure core technology necessary for the research and development of weapons systems in advance; |
| 3. | To promote the opening of defense science and technology policies and to build the defense science and technology innovation system; |
| 4. | To use mature technologies held by commercial companies in respect of defense science and technology and to build the international cooperative system; |
| 5. | To implement the development of future-leading defense technologies to effectively prepare for the future security environment. |
| Article 5 (Relationship to Other Statutes) |
This Act shall apply in respect of defense science and technology innovation, except as otherwise provided in other statutes.
CHAPTER II ESTABLISHMENT OF MASTER PLANS FOR DEFENSE SCIENCE AND TECHNOLOGY INNOVATION AND IMPLEMENTATION SYSTEM
| Article 6 (Establishment of Master Plans for Defense Science and Technology Innovation) |
| (2) | Master plans shall include the following: |
| 1. | Medium-to-long term development objectives of, and basic direction-setting for, defense science and technology innovation; |
| 2. | Policies to advance defense science and technology; |
| 3. | Matters concerning allocation of funds and expansion of investments for defense science and technology innovation; |
| 4. | Other important matters prescribed by Presidential Decree in respect of defense science and technology innovation. |
| (3) | The Minister of the Defense Acquisition Program Administration shall establish an implementation plan for defense science and technology innovation (hereinafter referred to as “implementation plan”) each year in accordance with the master plan. |
| (4) | Except as provided in paragraphs (1) through (3), matters necessary to establish the master plans and implementation plans shall be prescribed by Presidential Decree. |
| Article 7 (Building Cooperative System) |
| (1) | The Minister of National Defense shall endeavor to build the cooperative system with relevant central administrative agencies, research institutes or similar entities in order to ensure the efficient use of national funding invested in defense science and technology innovation. |
| (3) | The Minister of National Defense and the Minister of the Defense Acquisition Program Administration may link the outcomes of basic research under Article 2 of the Basic Research Promotion and Technology Development Support Act to defense research and development that such Ministers implement, in cooperation with the heads of relevant central administrative agencies, such as the Minister of Science and ICT. |
CHAPTER III IMPLEMENTATION OF DEFENSE RESEARCH AND DEVELOPMENT PROJECTS
| Article 8 (How Defense Research and Development Projects Are Implemented) |
| (1) | The Minister of the Defense Acquisition Program Administration may authorize a research institute or similar entity to implement a defense research and development project. In such cases, the Minister of the Defense Acquisition Program Administration may conclude a contract or an agreement on the defense research and development project with the following persons, and the Minister shall conclude a contract in principle in the case of research and development projects of weapons systems referred to in subparagraph 5 (a) of Article 2, but may choose to conclude an agreement based on the characteristics of a project. The Minister shall conclude an agreement in principle in the case of the defense research and development projects referred to in items (b) through (d) of that subparagraph: |
| 1. | A person that supervises and implements the defense research and development project (hereinafter referred to as “institute supervising research and development”); |
| 2. | A person that participates in the defense research and development project (hereinafter referred to as “research and development participant”) as necessary to effectively implement such project, in addition to the institute supervising research and development. |
| (2) | The Minister of the Defense Acquisition Program Administration may contribute, in whole or in part, to the costs required for implementing a project on which the Minister has concluded a contract under paragraph (1). |
| (3) | If the Minister of the Defense Acquisition Program Administration authorizes the Agency for Defense Development established under the Act on the Agency for Defense Development to implement a defense research and development project notwithstanding the latter part of paragraph (1), the Minister may contribute to the costs required for implementing that project. |
| (4) | An institute supervising research and development may entrust part of the defense research and development project it implements to a research institute or similar entity by concluding a contract or an agreement with the research institute or similar entity, if necessary to effectively implement such defense research and development project. In such cases, the latter part of paragraph (1) shall apply mutatis mutandis to the principles of concluding a contract or an agreement. |
| (6) | If the Minister of the Defense Acquisition Program Administration deems it necessary to efficiently implement a defense research and development project, the Minister may authorize the Defense Agency for Technology and Quality established under Article 32 of the Defense Acquisition Program Act or any other agency prescribed by Presidential Decree to support activities related to the planning, management and evaluation of tasks (hereinafter referred to as “planning and related activities”) for the defense research and development project. In such cases, the Minister of the Defense Acquisition Program Administration may contribute, in whole or in part, the costs required for planning and related activities. |
| (7) | Matters concerning conclusion, modification and termination of contracts or agreements on defense research and development projects under paragraph (1), matters concerning the scope of planning and related activities under paragraph (6), procedures for defense research and development, payment, use and management of contributions, and other necessary matters shall be prescribed by Presidential Decree. |
| (8) | To foster small and medium enterprises having technological capabilities, the Minister of the Defense Acquisition Program Administration may preferentially select small and medium entrepreneurs under Article 2 of the Framework Act on Small and Medium Enterprises for items determined and publicly notified by the Minister of the Defense Acquisition Program Administration when selecting institutes supervising research and development or research and development participants by concluding a contract or an agreement under paragraph (1). |
| (9) | The Minister of National Defense may conduct research and development projects for the force support systems referred to in subparagraph 5 (e) of Article 2 by applying mutatis mutandis paragraphs (1) through (8). In such cases, “the Minister of the Defense Acquisition Program Administration” shall be construed as “the Minister of National Defense”. |
| Article 9 (Restrictions on Participation in Defense Research and Development Projects) |
| (1) | If any of the following is applicable to a research institute or similar entity or its researcher-in-chief, researcher, executive officer or employee that has participated in a defense research and development project under an agreement concluded under Article 8, the Minister of National Defense may impose on the relevant institute or person a restriction prohibiting participation in any other defense research and development project for a period not to exceed two years (or five years in the case of a person on whom a restriction on participation in a task of any other defense research and development project has been imposed on the same grounds), and may recover, in whole or in part, the project costs the Minister has contributed: Provided, That a reduction or exemption can be granted in respect of the period of restriction on participation and an amount of the project costs to be recovered in the case of subparagraph 1, if the relevant institute or person is deemed to have performed research and development in good faith: |
| 1. | If the research and development task is determined as a suspended or failed one based on evaluations conducted by the Minister of National Defense and the Minister of the Defense Acquisition Program Administration as the results of the defense research and development project is extremely inferior; |
| 2. | If the relevant institute or person divulges or leaks the details of research and development in Korea or overseas without following due process; |
| 3. | If the relevant institute or person gives up performing the research and development task without good cause; |
| 4. | If the relevant institute or person fails to pay a royalty or pay back the project costs without good cause; |
| 5. | If the relevant institute or person uses the research and development fund for any purpose other than for research and development; |
| 6. | If the relevant institute or person applies for, and files for registration of, an intellectual property right, being development outcomes, in the name of the researcher-in-chief or researcher without good cause; |
| 7. | If the relevant institute or person performs research and development by fraud or other improper means; |
| 8. | Other cases prescribed by Presidential Decree where the relevant institute or person otherwise breaches the agreement. |
| (2) | Upon imposing a restriction on participation in a defense research and development project under paragraph (1), the Minister of the Defense Acquisition Program Administration shall inform the heads of other relevant central administrative agencies of the restriction on participation. |
| (3) | Upon imposing a restriction on participation or taking a project costs recovery measure under paragraph (1), the Minister of the Defense Acquisition Program Administration shall give the head of the institute to which the relevant research-in-chief, researcher, executive officer or employee belongs written notice stating the restriction of participation or project costs recovery measure and other relevant matters. |
| (4) | If the conduct specified in paragraph (1) 5 is discovered, the Minister of the Defense Acquisition Program Administration may impose on, and collect from, the relevant research institute, similar entity, researcher-in-chief, researcher, executive officer or employee an additional monetary sanction in an amount not to exceed five times the amount used for any purpose other than for research and development. |
| (5) | If a person against whom a project costs recovery measure has been taken under paragraph (1) fails to pay back the money by the due date, the Minister of the Defense Acquisition Program Administration shall demand the payment thereof within a specified period, and if the person fails to pay back the money within the specified period, the Minister of the Defense Acquisition Program Administration shall collect it in the same manner as delinquent national taxes area collected. |
| (6) | If a person on whom an additional monetary sanction has been imposed under paragraph (4) fails to pay the additional monetary sanction by the due date, the Minister of the Defense Acquisition Program Administration shall collect it in the same manner as delinquent national taxes area collected. |
| (7) | The Minister of the Defense Acquisition Program Administration may entrust the Commissioner of the National Tax Service with the duties relating to the recovery of the project costs, collection of additional monetary sanctions and disposition of delinquency under paragraph (1) and paragraphs (4) through (6). |
| (8) | Detailed standards for the period of restriction on participation on each ground for restriction on participation and an amount of project costs to be recovered under the main clause of paragraph (1), standards for recognizing the performance of research and development in good faith, for reductions and exemptions in respect of the period of restriction on participation and an amount of project costs to be recovered under the proviso of that paragraph, standards for additional monetary sanctions under paragraph (4), and other necessary matters shall be prescribed by Presidential Decree. |
| Article 10 (Vesting of Development Outcomes) |
| (1) | Development outcomes obtained through defense research and development projects conducted under a contract or an agreement under Article 8 shall be in principle owned by the State. |
| (2) | Notwithstanding paragraph (1), an intellectual property right among the development outcomes under paragraph (1) may be jointly owned by the State and the relevant institute supervising research and development, as stipulated in the contract or agreement concluded under Article 8: Provided, That the intellectual property right may be jointly owned by the State and the research and development participant in cases prescribed by Presidential Decree in which it is inappropriate to recognize the ownership of that institute supervising research and development for such reasons that the research and development participant has provided a research facility and equipment. |
| (3) | The Minister of the Defense Acquisition Program Administration may grant to a research institute or similar entity a license in respect of any intellectual property right owned by the State among intellectual property rights obtained through defense research and development projects. |
| (4) | If an intellectual property right is jointly owned under paragraph (2), each co-owner may grant a license to any person who intends to license (which means use, transfer, lease or export; hereinafter the same shall apply) the intellectual property right with the consent of every other co-owner: Provided, That the State may grant a license to any person who intends to license the intellectual property right without the consent of every other co-owner, if necessary for national security. |
| (5) | Management of development outcomes and intellectual property rights, share ratios in joint ownership, the extent to which ownership can be exercised, and grant of licenses under paragraphs (1) through (4) and other necessary matters shall be prescribed by Presidential Decree. |
| Article 11 (Collection and Use of Royalties) |
| (1) | The head of an institution that possesses development outcomes shall conclude with any person who intends to license the development outcomes a contract specifying the details of the license, royalty, payment methods of the royalty and other relevant matters, and collect the royalty from the person: Provided, That if any company that has participated in defense research and development intends to use development outcomes obtained through such defense research and development, no royalty need be collected. |
| (2) | Royalties (excluding royalties collected by each service of the Armed Forces and the Defense Acquisition Program Administration) collected by the head of an institution that possesses development outcomes under paragraph (1) shall be used for the following purposes: |
| 1. | Reinvesting in research and development; |
| 2. | Costs for applying for and managing intellectual property rights related to defense science and technology; |
| 3. | Monetary rewards for participating researchers or employees contributing to the dissemination of technology; |
| 4. | Operating expenses of the institution that possesses the development outcomes; |
| (3) | The head of an institution that possesses development outcomes may grant a full or partial exemption of a royalty under paragraph (1) for such purposes as promoting use of defense science and technology for civil requirements, promoting the export of defense materials, and fostering small and medium enterprises and middle-standing enterprises. |
| (4) | The head of an institution that possesses development outcomes may permit a royalty under paragraph (1) to be paid in installments. |
| (5) | Methods for calculation and collection of royalties, collection procedures, full or partial exemptions, payment in installments and use under paragraphs (1) through (4) and other necessary matters shall be prescribed by Presidential Decree. |
CHAPTER IV ESTABLISHMENT OF FRAMEWORK FOR DEFENSE SCIENCE AND TECHNOLOGY INNOVATION
| Article 12 (Management of Knowledge and Information on Defense Science and Technology) |
| (1) | The Minister of the Defense Acquisition Program Administration shall manage the following knowledge and information on defense science and technology comprehensively and systematically: |
| 1. | Technological knowledge and information obtained through defense research and development; |
| 2. | Technological knowledge and information imported from foreign countries to produce defense materials; |
| 4. | Other knowledge and information on defense science and technology prescribed by Presidential Decree. |
| (2) | The Minister of the Defense Acquisition Program Administration shall ensure that knowledge and information on defense science and technology managed under paragraph (1) is managed and distributed under the policy on management and distribution of knowledge and information on science and technology under Article 26 of the Framework Act on Science and Technology unless the Minister determines that the disclosure of knowledge and information is impracticable for military purposes. |
| (3) | To efficiently manage knowledge and information on defense science and technology, the Minister of the Defense Acquisition Program Administration may request research institutes or similar entities to submit data related to knowledge and information on defense science and technology they have obtained through defense research and development, and the research institutes or similar entities shall comply with such request, unless there is a compelling reason not to do so. |
| (4) | To systematically manage knowledge and information on defense science and technology under paragraph (1), the Minister of the Defense Acquisition Program Administration shall conduct a survey, every three years, on the current state of technology held for each weapons system and domestic technological levels in comparison with major advanced countries. |
| Article 13 (Dissemination of Development Outcomes and Technology Transfer) |
| (1) | The Minister of the Defense Acquisition Program Administration shall establish and implement policies on the following in order to promote the dissemination of development outcomes and technology transfer: |
| 1. | Management and distribution of information on the dissemination of development outcomes and technology transfer; |
| 2. | Fostering of organizations established within institutes, associations, universities and research institutes related to the dissemination of development outcomes and technology transfer; |
| 3. | Training of professional personnel; |
| 4. | Exchanges and cooperation among research institutes or similar entities in respect of human resources, technology, infrastructure, etc.; |
| 5. | Other matters prescribed by the Minister of the Defense Acquisition Program Administration as necessary to promote the dissemination of development outcomes and technology transfer. |
| (2) | The Minister of the Defense Acquisition Program Administration may implement projects in accordance with the policies established under paragraph (1) and may authorize research institutes or similar entities to perform related projects and contribute, in whole or in part, the costs required for performing such related projects. |
| (3) | An institute that possesses development outcomes may transfer defense science and technology it has obtained through defense research and development to a research institute or similar entity at or free of charge with the approval of the Minister of the Defense Acquisition Program Administration. |
| Article 14 (Expansion and Use of Research Facilities and Equipment) |
| (1) | For the efficient implementation of defense research and development, the Minister of the Defense Acquisition Program Administration may support institutions that perform defense research and development projects in expanding research facilities and equipment or may develop other necessary plans. |
| (2) | The Minister of the Defense Acquisition Program Administration may permit institutions that perform defense research and development projects to use research facilities and equipment prescribed by the Minister of the Defense Acquisition Program Administration if the Minister determines necessary for defense research and development. |
| Article 15 (Training of Quality Human Resources and Payment of Incentives) |
| (1) | The Minister of the Defense Acquisition Program Administration shall endeavor to keep human resources working for institutions that perform defense research and development projects motivated by such means as expanding the foundation for defense research and development and training quality human resources. |
| (2) | The Minister of National Defense and the Minister of the Defense Acquisition Program Administration may pay an incentive, etc. to a person who makes outstanding performance in respect of defense research and development within the budget, as prescribed by Presidential Decree. |
| Article 16 (Support for Promoting Defense Science and Technology Innovation) |
| (1) | The Minister of the Defense Acquisition Program Administration may authorize the Defense Agency for Technology and Quality established under Article 32 of the Defense Acquisition Program Act to perform the following tasks in order to efficiently support the promotion of defense science and technology innovation: |
| 1. | Conducting research to establish the master plans and implementation plans under Article 6; |
| 2. | Supporting the planning and related activities of defense research and development projects under Article 8 (6); |
| 3. | Promoting the use and management of development outcomes and technology transfer under Articles 10 and 13; |
| 4. | Managing knowledge and information on defense science and knowledge under Article 12; |
| 5. | Supporting expansion of research facilities and equipment and promoting the use thereof under Article 14; |
| 9. | Other projects prescribed by Presidential Decree as supporting tasks for defense research and development. |
| (2) | The Minister of the Defense Acquisition Program Administration may contribute, in whole or in part, the costs required for performing the tasks under the subparagraphs of paragraph (1) within the budget. |
CHAPTER V SUPPLEMENTARY PROVISIONS
| Article 17 (Delegation and Entrustment of Authority) |
| (1) | The Minister of National Defense may delegate part of his or her authority under this Act to the Minister of the Defense Acquisition Program Administration, as prescribed by Presidential Decree. |
| (2) | The Minister of the Defense Acquisition Program may entrust part of his or her authority under this Act to the president of the Defense Agency for Technology and Quality or any agency prescribed by Presidential Decree, as prescribed by Presidential Decree. |
| Article 18 (Duty of Confidentiality) |
A person who is a current or former executive officer or employee of any agency or legal person that performs the duties entrusted under Article 17 shall not disclose any confidential information the person has learned while performing such duties: Provided, That this shall not apply in a case where the Minister of the Defense Acquisition Program determines necessary for defense science and technology innovation.
| Article 19 (Legal Fiction as Public Officials for Purposes of Penalty Provisions) |
CHAPTER 6 PENALTY PROVISIONS
| Article 20 (Penalty Provisions) |
A person who discloses any confidential information the person has learned while performing his or her duties in violation of Article 18 shall be punished by imprisonment with labor for a term not exceeding three years or by a fine not exceeding 30 million won.
| Article 21 (Joint Penalty Provisions) |
If the representative of a legal person or an agent or employee of, or any other person employed by, the legal person or an individual commits any violations described in Article 20 in conducting the business of the legal person or individual, the body corporate or individual shall, in addition to punishing the violators accordingly, be punished by a fine prescribed in the relevant Article: Provided, That the same shall not apply if such legal person or individual has not been negligent in give due attention to, and supervising, the business to prevent such violations.
ADDENDA <Act No. 17163, Mar. 31, 2020>
Article 1 (Enforcement Date)
This Act shall enter into force one year after the date of its promulgation.
Article 2 (Applicability to Recognition of Performance of Research and Development in Good Faith)
The provisions of the proviso of Article 9 (1) shall begin to apply to a defense research and development project an agreement on which is to be first concluded after this Act enters into force. Article 3 (Applicability to Ownership of Development Outcomes)
The provisions of Article 10 shall begin to apply to a contract or an agreement to be first concluded after this Act enters into force. Article 4 (Applicability to Collection and Use of Royalties)
The provisions of Article 11 shall begin to apply to a contract to be first concluded in respect of the use of technology after this Act enters into force. Article 5 (General Transitional Measures concerning Disposition under the Previous Defense Acquisition Program Act) Any act done by or towards administrative agencies under the previous Defense Acquisition Program Act as at the time this Act enters into force shall be deemed to be an act done by or towards administrative agencies under this Act, if corresponding provisions exist herein. Article 6 (Transitional Measures concerning Medium-to-Long Term Polices on Advancement of National Defense Science and Technology)
The medium-to-long term policies on the advancement of national defense science and technology and implementation plans established under Article 30 of the previous Defense Acquisition Program Act as at the time this Act enters into force shall be deemed to be the master plans and implementation plans for defense science and technology innovation established under Article 6. Article 7 (Transitional Measures concerning Imposition of Liquidated Damages and Restrictions on Eligibility to Bid)
The previous Defense Acquisition Program Act shall apply in respect of imposition of liquidated damages or restrictions on the eligibility to bid for any violation committed before this Act enters into force. Article 8 (Transitional Measures concerning Management of Information on Defense Science and Technology)
Any act done in respect of management of information on defense science and technology under Article 31 of the previous Defense Acquisition Program Act before this Act enters into force shall be deemed to be an act done under Article 12. Article 9 (Transitional Measures concerning Penalty Provisions and Joint Penalty Provisions)
Provisions of the previous Defense Acquisition Program Act shall apply where the penalty provisions or joint penalty provisions are to be applied to any violation committed before this Act enters into force. Article 10 Omitted.
Article 11 (Relationship to Other Statutes or Regulations)
A citation of the previous Defense Acquisition Program Act or any provisions thereof in respect of defense science and technology in other statutes or regulations as at the time this Act enters into force shall be deemed to be a citation of this Act or the corresponding provisions of this Act, in lieu of the previous Defense Acquisition Program Act or any provisions thereof, if such corresponding provisions exist herein.