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ACT ON ENCOURAGEMENT OF PURCHASE OF ENVIRONMENT-FRIENDLY PRODUCTS

Amended by Act No. 10030, February 4, 2010

Article 1 (Purpose)

The purpose of this Act is to conserve resources, prevent environmental pollution, and contribute to the sustainable development of the national economy by encouraging the purchase of environment-friendly products.

Article 2 (Definitions)

The definition of terms used in this Act shall be as follows:

1. The term "environment friendly product" means products falling under any of the following items, which are designated as a green product under Article 2(5) of the Framework Act on Low Carbon, Green Growth:

(a) Products subject to certification of environmental marks under Article 17(1) of the Development of and Support for Environmental Technology Act, which have obtained such certification, or products which meet certification standards by item, as determined and published by the Minister of Environment under Article 17(3); (b) Products subject to quality certification of recycled products as determined and published by the Minister of Knowledge Economy under Article 33 of the Act on the Promotion of Saving and Recycling of Resources and Article 15 of the Industrial Technology Innovation Promotion Act, which have obtained such certification or meet certification standards;

(c) Other green products which meet determination standards by item, published by the Minister of Environment following the consultation with the Minister of Knowledge Economy.

ACT TO PROMOTE THE PURCHASE

OF ENVIRONMENTALLY-FRIENDLY

PRODUCTS

Laws on Green Growth, and Economic Investment in Korea 287 04_LawsConcerningGreenGrowth

2. The term "public institutions" means State agencies, local governments, and public institutions designated under Articles 4 through 6 of the Act on the Management of Public Institutions, and other institutions prescribed by Presidential Decree. Article 3 (Duty to Encourage the Purchase of Environment Friendly Products) (1) The heads of public institutions shall actively promote the formulation and implementation of plans related to data survey, education, publication and training of the human resources necessary to encourage the procurement of environment friendly products.

(2) Business operators shall endeavor to produce environment friendly products; improve the quality thereof; and use environment friendly materials or parts. (3) Nationals of the Republic of Korea shall endeavor to use environment friendly products.

Article 4 (Basic Plans for Encouraging Purchase of Environment-Friendly Products) (1) The Minister of Environment shall formulate basic plans (hereinafter referred to as "basic plan") for encouraging purchase of environment-friendly products, following consultation with the heads of the relevant central administrative agencies every five years, after undergoing deliberation by the Central Environmental Preservation Advisory Committee under Article 37 (1) of the Framework Act on Environmental Policy.

(2) Basic plans shall include the following matters:

1. Policy directions and promotion plans to encourage the purchase of environment-friendly products:

2. Important matters about items subject to environment-friendly product requirements and determination standards under each item of subparagraph 1 of Article 2;

3. Analysis of records of environment-friendly products purchased by public institutions and measures to increase such purchases;

4. Matters on international cooperation with regard to environment-friendly products; and

5. Other matters recognized by the Minister of Environment as necessary to encourage the purchase of environment-friendly products.

(3) The Minister of Environment may, if deemed necessary for formulation of basic plans, request the heads of the relevant public institutions to submit data. The heads of public 288 Ministry of Government Legislation

institutions who are requested to provide data shall cooperate with such requests, unless there exist special grounds otherwise.

(4) The provisions of paragraphs (1) and (3) shall apply mutatis mutandis to changes in basic plans already formulated.

Article 5 Deleted

Article 6 (Public Institutions' Obligation to Purchase Environment Friendly Products) The heads of public institutions shall purchase environment friendly products, when they intend to purchase any product provided that this shall not apply in cases falling under any of the following subparagraphs:

1. When environment friendly products are not available for the item intended to be purchased;

2. When the supply of environment-friendly products is unstable;

3. When it is difficult to achieve the purposes of the law, due to grounds such as substantially inferior quality of environment friendly products;

4. When the heads of public institutions intend to purchase products so as to comply with provisions on the preferential purchase under other Acts, such as the Welfare of Disabled Persons Act, etc.;

5. When the heads of public institutions conclude that it is difficult to purchase environment friendly products, due to unavoidable reasons, such as urgent demand, etc. Article 7 (Guidelines for Purchasing of Environment Friendly Products) Every year, the Minister of Environment shall establish guidelines for the purchase of environment friendly products for the coming year, as prescribed by Presidential Decree, and notify the heads of public institutions of such guidelines. Article 8 (Implementation Plans for Purchasing Environment Friendly Products) (1) The heads of public institutions shall formulate and announce implementation plans for purchasing environment friendly products (hereinafter referred to as "implementation plan") for the relevant fiscal year in accordance with the guidelines under Article 7 before each fiscal year begins.

(2) The heads of public institutions shall, when they formulate and announce implementation plans, submit such plans to the Minister of Environment without delay provided that Laws on Green Growth, and Economic Investment in Korea 289 04_LawsConcerningGreenGrowth

the head of a Si/Gun/Gu (hereinafter the same shall apply and refer to the head of an autonomous Gu) shall submit implementation plans to the Special Metropolitan City Mayor, Metropolitan City Mayor or Do Governor (hereinafter referred to as the "Mayor/Do Governor"), and the Mayor/Do Governor shall integrate implementation plans of each Si/Gun/Gu (hereinafter the same shall apply and refer to an autonomous Gu) and submit such plans.

Article 9 (Purchase Records of Environment Friendly Products) (1) The heads of public institutions shall consolidate the purchase records of environment friendly products under implementation plans and make known the purchase records within two months after each fiscal year ends.

(2) The heads of public institutions shall, when they consolidate and make known the purchase records as provided in paragraph (1), submit such records to the Minister of Environment without delay provided that the head of each Si/Gun/Gu shall submit the purchase records to the Mayor/Do Governor, and the Mayor/Do Governor shall integrate the purchase records of each Si/Gun/Gu and submit such records to the Minister of Environment.

Article 10 (Request for Cooperation to Encourage the Purchase of Environment Friendly Products)

If deemed necessary to encourage the purchase of environment friendly products, the Minister of Environment may request heads of the relevant public institutions to take necessary measures concerning matters falling under each subparagraph. In such cases, the heads of public institutions shall cooperate with such requests, unless any special ground exists to the contrary:

1. Reflection of applicable provisions for the use of environment friendly products in construction specifications, etc.;

2. Reflection of purchase records of environment friendly products in items for performance assessment by central administrative agencies or local governments;

3. Other matters necessary for encouraging the purchase of environment friendly products. Article 11 (Encouraging Local Governments to Purchase Environment-Friendly Products

(1) The Special Metropolitan City, Metropolitan Cities and Dos (hereinafter referred to 290 Ministry of Government Legislation

as "City/Do) or each Si/Gun/Gu may, if deemed necessary to encourage the purchase of environment friendly products, prescribe the following matters as Municipal Ordinances and implement such Municipal Ordinances:

1. Matters necessary for fulfilling obligations to purchase environment friendly products under Article 6;

2. Establishment and application of standards for determining whether items other than those subject to environment friendly products are environment-friendly products;

3. Other matters necessary for encouraging the purchase of environment friendly products.

(2) Each City/Do or Si/Gun/Gu shall, when it establishes or amends Municipal Ordinances under paragraph (1), submit such Municipal Ordinances to the Minister of Environment, without delay.

Article 12 (Role of Administrator of Public Procurement Service) (1) When the products requested for purchase by the heads of public institutions can be replaced with environment friendly products, the Administrator of the Public Procurement Service shall adjust purchase plans to ensure that the public institutions purchase environment friendly products, after consulting with the heads of said public institutions.

(2) The Minister of Environment and heads of the relevant central administrative agencies may request the Administrator of the Public Procurement Service to take necessary measures to encourage the purchase of environment friendly products, such as expanding the foundation for the electronic procurement of environment friendly products, designating environment friendly products as exemplary procurement goods, etc. Article 13 Deleted (by Act No. 9335, Jan. 7, 2009). Article 14 (Request for Information on Environment Friendly Products) (1) The Minister of Environment may request heads of public institutions to submit data on a selection of items subject to environment friendly products or establishment of determination standards for environment friendly products. (2) The heads of public institutions that are requested to provide data under paragraph (1) shall cooperate with such request, unless any special ground exists to the contrary. Laws on Green Growth, and Economic Investment in Korea 291 04_LawsConcerningGreenGrowth

Article 14-2 (Establishment and Operation of Data Management System of Environment Friendly Products)

(1) The Government shall be equipped with a comprehensive data distribution system (hereinafter referred to as "data management system") on the production, distribution, quality, safety, and environment friendliness of environment friendly products and take measures necessary to encourage the purchase of environment friendly products. (2) The submission of implementation plans and purchase records under Article 9 may be substituted with the transmission of such plans and purchase records via the data management system.

[This Article was newly inserted by Act No. 8947, Mar. 21, 2008] Article 15 (Support for Encouragement of Purchase of Environment-Friendly Products, etc.)

(1) The Government may lend each of the following support to business operators and the relevant organizations which contribute to encouraging the purchase of environment-friendly products:

1. Provision of data to encourage purchase of environment-friendly products;

2. Support for fostering specialists to encourage purchase of environment-friendly products;

3. Support for sales of environment-friendly products in Korea and foreign countries;

4. Support for obtaining certification concerning environment-friendly products in Korea and foreign countries;

5. Financial assistance for production, distribution, and sales of environment-friendly products;

6. Support for technology transfers among companies to facilitate production and distribution of environment-friendly products;

7. Support for improving the quality of environment-friendly products;

8. Support for cooperative movement projects under the Promotion of Small and Medium Enterprises and Encouragement of Purchase of Their Products Act;

9. Support for publicity and education of environment-friendly products; and

10. Other support necessary to encourage purchase of environment-friendly products (2) The Government may grant rewards to public institutions, business operators, appropriate organizations, etc. that have excellent purchase records of environment-friendly 292 Ministry of Government Legislation

products or have contributed to encouraging the purchase of environment-friendly products, as prescribed by President Decree. Article 15-2 (Fostering of Associations for Promotion of Environment-Friendly Products)

(1) Any association involved in promotion of environment-friendly products established with permission by the Minister of Environment under Article 32 of the Civil Act may conduct any of the following projects:

1. Investigative project such as collection and analysis of information about technology development, production, and sales volume, etc. of environment-friendly products;

2. Project for publicity of environment-friendly products and consumer education; and

3. Mutual aid project for development and sales of new environment-friendly products (2) To conduct a mutual aid project under paragraph 3 of Article 1, mutual aid provisions shall be drafted and approved by the Minister of Environment. The same shall apply to any change to the provisions.

(3) The provisions under paragraph (2) shall prescribe the scope of a mutual aid project, mutual aid fund, mutual aid fee, and other matters necessary to conduct the project. (4) The Minister of Labor may provide support like financial assistance to an association involved in promotion of environment-friendly products and engaged in any project under each subparagraph of paragraph (1).

[Newly Inserted, Feb. 4, 2010]

Article 16 (Preferential Support of Subsidies)

The Minister of Environment may grant or support environment-related subsidies under Article 75 of the Water Supply and Waterworks Installation Act, Article 56 of the Wastes Control Act, Article 35 of the Sewerage Act, etc, to local governments which have excellent purchase records of environment friendly products, in preference to other local governments. Article 17 (Education of Persons in Charge of Purchase, etc.) The Minister of Environment may provide education to persons in charge of purchase in public institutions, business operators, consumers, etc., as prescribed by Presidential Decree, so as to encourage purchase of environment-friendly products. [Title Amended, Feb. 4, 2010]

Laws on Green Growth, and Economic Investment in Korea 293 04_LawsConcerningGreenGrowth

Article 17-2 (Fostering of Specialists)

To foster specialists for production and distribution of environment-friendly products, the Minister of Environment may designate universities, research institutions, and other specialized organizations as organizations to foster specialists and subsidize all or part of costs of education and training, as prescribed by Presidential Decree. [Newly Inserted, Feb. 4, 2010]

Article 18 (Establishment and Operation of Stores Selling Environment Friendly Products)

(1) Business operators who manage discount stores, departments stores or shopping centers, which fall under superstores under Article 2(3) of Distribution Industry Development Act, and who manage an integrated distribution center of agricultural and fishery products, the size of which is not less than that prescribed by Presidential Decree, under Article 2(12) of the Act on Distribution and Price Stabilization of Agricultural and Fishery Products shall establish and operate stores selling environment friendly products (including recycled products under Article 2(5) of the Act on the Promotion of Saving and Recycling of Resources), so as to encourage the purchase of environment friendly products.

(2) The size of the stores or formulation and assessment of operation plans under paragraph (1) and other necessary matters shall be prescribed by Presidential Decree. [This Article was newly inserted by Act No. 8013, Sep. 27, 2006] Article 18-2 (Reporting, Inspections, etc.)

(1) The Minister of Environment, the Mayor/Do Governor or the head of each Si/Gun/Gu may order business operators falling under Article 18(1) to make reports or submit data, in order to verify whether stores selling environment friendly products are established and operated, and grant the relevant public officials access to their places of business to inspect the relevant documents or facilities. (2) Public officials who access places of business for inspection under paragraph (1) shall carry certificates indicating their legitimate authority and present them to the relevant persons.

[This Article was newly inserted by Act No. 8947, Mar. 21, 2008] Article 19 (Delegation or Entrustment of Authority or Tasks) (1) The Minister of Environment may delegate part of his/her authority under this Act 294 Ministry of Government Legislation

to the Mayor/Do Governor or the heads of local environmental government agencies, as prescribed by Presidential Decree.

(2) The Minister of Environment may entrust part of his/her tasks under this Act to the relevant specialized institutions, such as the Korea Environmental Industry & Technology Institute under Article 5-2 of the Development of and Support for Environmental Technology Act, as prescribed by Presidential Decree. Article 20 (Fines for Negligence)

Any person who fails to establish and operate stores selling environment friendly products, in violation of Article 18 (1) shall be punished by fines for negligence not exceeding three million won.

[This Article was newly inserted by Act No. 8013, Sep. 27, 2006] Article 21 (Imposition and Collection of Fines for Negligence) (1) Fines for negligence under Article 20 shall be imposed and collected by the Minister of Environment or the head of each Si/Gun/Gu (referring to the head of an autonomous Gu hereinafter referred to as "imposing authority"), as prescribed by Presidential Decree. (2) Any person dissatisfied with a judgment of a fine for negligence under paragraph (1) may raise an objection to the imposing authority within 30 days after he/she is notified of the aforementionedjudgment.

(3) If any person subject to a judgment of a fine for negligence under paragraph (1) raises an objection under paragraph (2), the imposing authority shall, without delay, notify the competent courts of the fact, which, in turn, shall proceed to a trial on the fine for negligence pursuant to the Non-Contentious Case Litigation Procedure Act. (4) If neither an objection is raised nor is a fine for negligence paid within the period under paragraph (2), the aforementioned fine for negligence shall be collected by referring to the practices on judgments in cases involving default of national or local taxes. [This Article was newly inserted by Act No. 8013, Sep. 27, 2006] ADDENDUM

This Act shall enter into force on the date of its promulgation: Provided, That the amended provisions of Articles 4 and 5 shall enter into force three months after its promulgation.