Home | Databases | WorldLII | Search | Feedback Laws of the Republic of Korea

COMPENSATION FOR OIL POLLUTION DAMAGE GUARANTEE ACT

CHAPTER I GENERAL PROVISIONS

Article 1 (Purpose)

The purpose of this Act is to promote the protection of victims and sound development of oil transport by ship by clearly identifying the liability of the owner of a ship and establishing a system guaranteeing compensation for oil pollution damage, in case of damage by oil leaks or discharged from a ship. Article 2 (Definitions)

Definitions of the terms of this Act shall be as follows: 1. The term "Oil Tanker" means any sea-going vessel (including a barge) of any type constructed or adapted for the carriage of oil in bulk as cargo: Provided, that a ship capable of carrying oil or other cargoes shall be regarded as an oil tanker only when it is actually carrying oil in bulk as cargo, or it has residues of such carriage of oil in bulk aboard;

2. The term "General Ship' means all ships excluding oil tankers and oil storage barges;

3. The term "Oil Storage Barge" means a floating maritime structure, or a ship, for storing oil under subparagraph 1 of Article 2 of the Ship Safety Act;

4. The term "Ship Owner(s)" means a person or persons under the following classification:

a. Oil Tanker and General Ship: a person or persons registered as the owner of a ship under the provisions of Article 8 (1) of the Fishing Vessel Act, Article 13 (1) of the Fishing Boat Ship Act or foreign Acts and subordinate statutes (in the absence of registration, a person or persons owning an oil tanker or a general ship): Provided, that in the case of a ship owned by a foreign country, any corporation or association in that country registered as the ship's operator shall be deemed as the owner of the ship under this Act, and in the case of a ship of foreign registry chartered by a national of the Republic of Korea, any person or persons registered as the owner of a ship and the charterer shall be deemed as the owner of the ship under this Act; b. Oil Storage Barge: The owner or hirer of the Oil Storage Barge.

5. The term "Oil" means any persistent hydrocarbon mineral oil such as crude oil, fuel oil, and lubricating oil, whether carried on board a ship as cargo or in the bunkers of such a ship, which is determined by the Presidential Decree;

6. The term "Bunker Oil" means hydrocarbon mineral oil, including lubricating oil, that is used or intended to be used for the operation or propulsion of the ship;

7. The term "Oil Pollution Damage" means the following damages or costs caused by an oil tanker, a general ship or an Oil Storage Barge: a. Loss or damage caused outside a ship by contamination resulting from the escape or discharge of oil from the ship, wherever such escape or discharge may occur: Provided, that compensation for impairment of the environment other than loss of profit from such impairment shall be limited to costs of reasonable measures of recovery actually undertaken or to be undertaken; b. The costs for preventive measures; and

c. Further loss or damage caused by preventive measures.

8. The term "Incident" means any occurrence or a series of occurrences having the same origin, which causes oil pollution damage or creates a grave and imminent threat of causing such damage;

9. The term "Preventive Measures" means any reasonable measures taken by any party or a third party after an incident has occurred to prevent or minimize oil pollution damage;

10. The term "Insurer, etc." means any person who compensates the damage of the owner of a ship or guarantees the performance of compensatory obligation under the compensation for oil pollution damage guarantee contract as provided for in this Act;

11. The term "Limited Claim" means any claim against the owner of a ship or the insurer, etc. to which such owner or insurer may limit his/her liability under this Act;

12. The term "Beneficiary Obligor" means any person who is an obligor to the limited claim in the liability limitation procedures, other than the person who makes a request for the initiation of the liability limitation procedures;

13. The term "Civil Liability Convention" means the International Convention on Civil Liability for Oil Pollution Damage, 1992;

14. The term "Fund Convention" means the International Convention on the Establishment of an International Fund for Compensation for Oil Pollution Damage, 1992;

15. The term "International Fund" means the International Fund for Compensation for Oil Pollution Damage under Article 2 (1) of the Fund Convention;

16. The term "Supplementary Fund Convention" means the Protocol of 2003 to the International Convention on the Establishment of an International Fund for Compensation for Oil Pollution Damage, 1992;

17. The term "Supplementary Fund" means the international fund for compensation for oil pollution damage under Article 2 (1) of the Supplementary Fund Convention; and

18. The term "Bunker Convention" means the International Convention on Civil Liability for Bunker Oil Pollution Damage, 2001. Article 3 (Scope of Application)

This Act shall apply to oil pollution damage occurring in the territory (including the territorial sea, hereinafter the same shall apply) of the Republic of Korea and in the exclusive economic zone of the Republic of Korea: Provided, that this Act shall apply to preventive measures, wherever taken to prevent or minimize such oil pollution damage in the territory and the exclusive economic zone of the Republic of Korea.

Article 4 (Tonnage of Ships)

The "Gross Tonnage" under this Act shall mean the international gross tonnage under subparagraph 1 of Article 3 (1) of the Ship Act for he vessel engaged in international voyage and the gross tonnage under subparagraph 2 of the same Article for other ships.

CHAPTER II OIL TANKER

SECTION I LIABILITY OF OIL TANKER FOR OIL POLLUTION DAMAGE

Article 5 (Liability of Oil Tanker for Oil Pollution Damage) (1) The owner of an oil tanker at the time of an incident shall be liable for any oil pollution damage, in the event that occurs: Provided that this provision shall not apply in case of the following oil pollution damage:

1. Resulting from an act of war, civil war, insurrection or a natural phenomenon of an exceptionally inevitable and irresistible character;

2. Wholly caused by an act or omissions done with intent to cause damage by a third party, other than the owner of a ship or his/her employee; or

3. Wholly caused by negligence or other wrongful acts of the State or public organizations responsible for the maintenance of navigational marks or navigational aids.

(2) When an incident involving two or more ships occur, and where it is uncertain that the oil pollution damage is caused by oil escaped or discharged from any particular ship, the owners of all the ships concerned shall be jointly and severally liable for all such damage: Provided, that this provision shall not apply when such oil pollution damage falls under any of subparagraphs of paragraph (1). (3) Where an oil pollution damage incident consists of a series of occurrences, the owner of the ship at the time of the initial occurrence shall be deemed as the owner of the ship at the time of the incident.

(4) Where oil pollution damage is caused by a ship of foreign registry chartered by a national of the Republic of Korea, the owner of the ship and the charterer shall be jointly and severally liable for such damage.

(5) No claim for compensation under Chapter II may be made against the person falling under any of the following subparagraphs:

1. The agents or servants of the owner a ship, or the members of the crew;

2. The pilot or any other person, who without being a member of the crew, performs services for the ship;

3. Any charterer (excluding a bareboat charterer), manager or operator of the oil tanker;

4. Any person performing salvage operations with the consent of the owner of a ship or on the instructions of a competent public authority;

5. Any person taking preventive measures; and

6. All agents or servants of the persons mentioned in subparagraphs 3 through 5.

(6) The owner of a ship who compensates for oil pollution damage caused by an oil tanker may exercise the right to indemnity against any third party related to the incident: Provided, that the exercise of the right to indemnity against any person falling under any of paragraph (5) shall be limited to damage resulting from their personal act or omission, committed with intent to cause such damage, or recklessly and with knowledge that such damage would probably result. Article 6 (Consideration of Liability)

Where oil pollution damage is caused by the victims' willful intention or negligence, the court shall take such information into consideration while deciding upon the liability and amount of compensation.

Article 7 (Limitation of Liability of Owner of Oil Tanker) (1) The owner of an oil tanker (including partners with unlimited liability in the case of a corporation) who is liable for compensation for oil pollution damage the provisions of Article 5 (1) or (2) may limit the oil pollution liability in accordance with the provisions of this Act: Provided, that this provision shall not apply to the cases of oil pollution damage resulting from his/her personal act or omission, committed with the intent to cause such damage, or recklessly and with knowledge that such damage would probably result.

(2) Any owner of an oil tanker who wishes to limit his/her liability under the provisions of the main sentence of paragraph (1) shall make an application for initiation of the liability limitation procedures to the court pursuant to Article 9 of the Act on the Procedure for Limiting the Liability of Shipowners, etc within six months from the date of the written application by the claimant, which states the amount exceeding the aggregate amount of liability under Article 8.

Article 8 (Aggregate Amount of Liability)

(1) Where the owner of an oil tanker can limit his/her liability under Article 7 (1), the aggregate amount of liability shall be as follows:

1. 4.510,000 units of the account for an oil tanker not exceeding 5,000 units of tonnage; and

2. For an oil tanker with a tonnage in excess of 5,000, the amount calculated by multiplying each additional unit of tonnage exceeding 5,000 by 631 units of the account within the limit of the amount corresponding to 89,770,000 units of the account shall be added to the amount mentioned in subparagraph 1. (2) The "units of account" referred to in paragraph (1) is the Special Drawing Right as defined by the International Monetary Fund, and the calculation of units of the account in terms of Korean currency shall be made in accordance with the provisions of Article 11 (2) of the Act on the Procedure for Limiting the Liability of Shipowners, etc. Article 9 (Scope of Limit of Liability)

For each ship, the limit of liability of the owner of an oil tanker shall extend to all limited claims against the owner of a ship, or the insurer related to the incident involving such a ship.

Article 10 (Ratio of Payment for Limited Claimant) When the owner of an oil tanker limits his/her liability in accordance with the provisions of Article 7, the limited claimant shall be paid according to the ratio of the amount of limited claims.

Article 11 (Extinction of Rights)

Rights of compensation against the owner of an oil tanker under the provisions of Article 5 (1) or (2) shall be extinguished unless an action is brought within three years from the date when the oil pollution damage occurred. The same provision shall apply to the case where no action has been brought within six years from the date of the initial accident that caused the oil pollution damage. Article 12 (Jurisdiction of Compensation for Oil Pollution Damage Action with Respect to Owner of Ship)

Any action against the owner of an oil tanker shall be submitted to the jurisdiction of the court as prescribed by the Supreme Court Regulations unless its jurisdiction has been determined by any other Acts. Article 13 (Validity of Foreign Judgments)

(1) Any judgment given by a foreign court with jurisdiction concerning compensation for oil pollution damage action shall remain valid except in the following cases under the provisions of Article 9 (1) of the Civil Liability Convention:

1. Where the judgment was obtained by fraud; and

2. Where the defendant was not served with an order for summoning or order necessary for the initiation of the trial, or was not given a fair opportunity to present his/her case.

(2) In the application of provisions of Article 27 (2) of the Civil Execution Act concerning execution of the final judgment under the provisions of paragraph (1), the term "when the foreign judgment does not fulfill the requirements of Article 217 of the Civil Procedure Act" shall be deemed as "when the foreign judgment falls under any of the subparagraphs of Article 13 (1) of the Compensation for Oil Pollution Damage Guarantee Act".

SECTION II COMPENSATION FOR OIL POLLUTION DAMAGE

GUARANTEE CONTRACT

Article 14 (Conclusion of Guarantee Contract)

(1) The owner of an oil tanker registered in the Republic of Korea and carrying not less than 200 tons of oil in bulk as cargo shall conclude a compensation for oil pollution damage guarantee contract (hereinafter referred to as "guarantee contract"). (2) The owner of an oil tanker other than that registered in the Republic of Korea which carries not less than 200 tons of oil in bulk as cargo and arrives and departures the domestic ports, or uses domestic mooring facilities, shall conclude the guarantee contract.

(3) The Minister of Land, Transport and Maritime Affairs may order any oil tanker in violation of the provisions of paragraph (1) to suspend her proceeding. (4) The Minister of Land, Transport and Maritime Affairs may refuse any ship which violates the provisions of paragraph (2) to arrive and departure the domestic ports or may not permit it to use domestic mooring facilities. Article 15 (Guarantee Contract)

(1) Any guarantee contract shall be the insurance contract which compensates the damage incurred by the owner of a ship due to fulfillment of his/her obligations for compensation or contract which guarantees the fulfillment of his/her obligations for compensation where the owner of an oil tanker is liable for compensation for oil pollution damage by oil on board the ship.

(2) The owner of an oil tanker shall enter into a guarantee contract with an insurer, etc. as prescribed by the Ordinance of Ministry of Land, Transport and Maritime Affairs, which has financial resources to guarantee the compensation for damage or to fulfill obligations for compensation of the owner of the oil tanker. (3) In the case of the guarantee contract under paragraph (2), the insurance amount for the compensation for damage of the owner of a ship or the performance of payment shall not be less than the maximum amount of liability for each ship under the provisions of Article 8.

(4) The guarantee contract shall be that which may lose its validity or alter its contents under the situations falling under the provisions of Article 7 (5) of the Civil Liability Convention.

Article 16 (Claims for Compensation against Insurer) (1) The victim of oil pollution damage by an oil tanker may directly make claims against the insurer, etc. that made a guarantee contract with the owner of an oil tanker: Provided, that in the case of oil pollution damage resulted from the willful misconduct of the owner of an oil tanker, this provision shall not apply. (2) The insurer, etc. may only use the defenses, which the owner of a ship may use against the victim, against the victim.

(3) The provisions of Articles 5 (6) and 7 through 11 shall apply mutatis mutandis to the compensation for damage by insurer, etc. Article 17 (Jurisdiction of Claim to Compensation Oil Pollution Damage against the Insurer, etc.)

A claim against the insurer, etc. under the provisions of Article 16 (1) may also be brought to court with jurisdiction under Article 12. Article 18 (Certificate of Guarantee Contract)

(1) The Minister of Land, Transport and Maritime Affairs shall issue a certificate (hereinafter referred to as "certificate of guarantee contract") to an oil tanker attesting the guarantee contract for the oil tanker (excluding ships of foreign registry which are Contracting States to the Civil Liability Convention) in the case of an application by the owner of an oil tanker who has entered a guarantee contract with the insurer, etc.

(2) Any person who wishes to make an application under the provisions of paragraph (1) shall submit an application stating the name of ship, type of guarantee contract, and other matters as determined by the Ordinance of the Ministry of Land, Transport and Maritime Affairs to the Minister of Land, Transport and Maritime Affairs. (3) The application, issuance, reassurance, period of validity, fees and other necessary matters concerning the certificate of guarantee contract shall be as prescribed by the Ordinance of the Ministry of Land, Transport and Maritime Affairs. Article 19 (Alteration of Entries in Certificate of Guarantee Contract) (1) Any person who has been issued a certificate of guarantee contract shall, in the case of alteration of entries in the certificate, report such altered matters to the Minister of Land, Transport and Maritime Affairs within 15 days from the date of such alteration.

(2) The Minister of Land, Transport and Maritime Affairs shall, upon a report under the provisions of paragraph (1), issue a new certificate of guarantee contract to the reporter.

Article 20 (Maintenance of Certificate of Guarantee Contract) (1) Any oil tanker carrying not less than 200 tons of oil in bulk as cargo shall keep the certificate of guarantee contract on board. (2) Any ship, other than those in the registry of the Republic of Korea, that carries not less than 200 tons of oil in bulk as cargo and arrives and departures the domestic ports, or uses the domestic mooring facilities shall keep a certificate of the form prescribed by the Annex to the Civil Liability Convention by which any foreign Contracting State to the contract attests that a guarantee contract for such ship has been entered, or a document filled out and issued by any foreign country under the provisions of Article 7 (12) of the Civil Liability Convention with respect to the ship. SECTION III CLAIM AGAINST INTERNATIONAL FUNDS AND CONTRIBUTIONS

Article 21 (Claims of Victims for Compensation against International Funds) Any person suffering oil pollution damage may claim for compensation under the provisions of Article 4 (1) of the Fund Convention with respect to the amount that has not been compensated for the damage from the owner of a ship or the insurer, etc. under the terms of the Fund Convention.

Article 22 (Intervention by International Fund)

(1) The International Fund may intervene in any pending action against the owner of an oil tanker or against the insurer, etc. as a party. (2) The provisions of Article 79 of the Civil Procedure Act shall apply mutatis mutandis to the cases of paragraph (1).

Article 23 (Notification of Litigation to International Fund) (1) Any party may notify the International Fund that the action is pending. (2) The provisions of Article 85 of the Civil Procedure Act shall apply mutatis mutandis to the notification of pending of litigation under paragraph (1). Article 24 (Jurisdiction of Action against International Fund) (1) With respect to the jurisdiction of an action against the International Fund for compensation under the provisions of Article 4 (1) of the Fund Convention, the provisions of Article 17 shall apply mutatis mutandis. (2) Where an action against the owner of an oil tanker or against the insurer, etc. concerning oil pollution damage is pending in the court of first instance, or where limiting liability is pending, such court shall have an exclusive jurisdiction despite of the jurisdiction provisions referred under in paragraph (1) against the same oil pollution damage.

Article 25 (Validity of Foreign Judgments)

The provisions of Article 13 shall apply mutatis mutandis to the final judgment of a foreign court with jurisdiction under the provisions of Article 7 (1) or (3) of the Fund Convention.

Article 26 (Report of Quantity of Contributing Oil) (1) Any person (hereinafter referred to as an "oil receiver") who has received oil carried by sea and discharged into the country and determined by the Presidential Decree (hereinafter referred to as "contributing oil") shall report the quantity of oil received to the Minister of Land, Transport and Maritime Affairs in the following year as prescribed by the Ordinance of the Ministry of Land, Transportation and Maritime Affairs, in the case where the aggregate quantity of contributing oil received in that year exceeds 150,000 tons. In this case, any person who has received contributing oil on behalf of others such as the lessee of a tank shall not be deemed as an oil receiver, but any person who has them receive contributing oil shall be deemed as an oil receiver. (2) Where there exists any person who governs the business activities of the oil receiver, such person shall report the quantity of oil received by the oil receiver to the Minister of Land, Transport and Maritime Affairs in the following year as prescribed by the Ordinance of the Ministry of Land, Transport and Maritime Affairs when the annual aggregate quantity of contributing oil (the aggregate quantity added by the person governing the business activities of the oil receiver where he/she has received contributing oil) received by the oil receiver exceeds 150,000 tons. In this case, the provisions of paragraph (1) of this Article shall not apply to each oil receiver. (3) The scope of any person who governs the business activities of oil receiver under the provisions of paragraph (2) shall be determined by the Presidential Decree. Article 27 (Communication of Data to International Fund) (1) The Minister of Land, Transport and Maritime Affairs shall, upon receipt of a report under the provisions of Article 26 (1) or (2), notify the Minister of Knowledge Economy of the details of the report and send a document stating the matters provided for in Article 15 (2) of the Fund Convention to the International Fund. (2) The Minister of Land, Transport and Maritime Affairs shall, where he/she sends the document to the International Fund under the provisions of paragraph (1) of this Article, notify the oil receiver stated therein of the quantity of contributing oil notified to the International Fund to such receiver. Article 28 (Making Contributions to International Fund) (1) The oil receiver or the person governing the business activities of the oil receiver who is to report the quantity of contributing oil under the provisions of Article 26 (1) or (2) shall make contributions under the provisions of Article 10 of the Fund Convention to the International Fund in accordance with the provisions of Articles 12 and 13 of the Fund Convention.

(2) Where any person (hereafter referred to as the "obligator for payment") who is liable to make contributions under the provisions of paragraph (1) makes them in arrears, he/she shall pay the contributions and interest at a rate determined by the Assembly of the International Fund.

Article 29 (Notice of Demand to Payer in Arrears of International Fund) Where any obligator for payment makes them in arrears, the Minister of Land, Transport and Maritime Affairs shall demand the person to make contributions. SECTION IV CLAIM AGAINST SUPPLEMENTARY FUNDS AND

CONTRIBUTIONS

Article 30 (Claims for Compensation by Victims against Supplementary Fund) Any person suffering oil pollution damage may claim for compensation under the provisions of Article 4 (1) of the Supplementary Fund Convention with respect to the oil pollution damage exceeding the maximum liability limit of the International Fund under the terms of the Supplementary Fund Convention. Article 31 (Applicability)

With respect to claim for compensation and contributions under Article 30, the provisions of Section III (excluding Article 21) shall apply. In this case, "International Fund" in Articles 22 through 24, and 28 shall be deemed as "Supplementary Fund," "Article 4 (1) of the Fund Convention" in Article 24 (1) as "Article 4 (1) of the Supplementary Fund Convention," "Article 7 (1) or (3) of the Fund Convention" in Article 25 as "Article 7 of the Supplementary Fund Convention," "Article 15 (2) of the Fund Convention" in Article 27 (1) as "Article 13 (1) of the Supplementary Fund Convention," "Articles 12 and 13 of the Fund Convention" and "Article 10 of the Fund Convention" in Article 28 (1) as "Articles 11, 12 (1) and 18 of the Supplementary Fund Convention" and "Article 10 of the Supplementary Fund Convention," respectively. SECTION V PROCEDURES FOR THE LIMITATION OF LIABILITY Article 32 (Application for Initiation of the Limitation of Liability Procedure) (1) Any owner of a ship or insurer, etc. may apply for the initiation of the procedure for liability limitation under the Act on Procedure for Limiting Liability of Ship Owners, etc. to the court to limit liability for oil pollution damage. (2) Any case limiting liability under paragraph (1) of this Article (hereafter referred to as the "case limiting liability") shall fall exclusively under the jurisdiction of the district court which has jurisdiction over the location where the incident has caused oil pollution damage.

(3) Any case limiting liability concerning preventive measures taken beyond the territory and the exclusive economic zone of the Republic of Korea, in order to prevent damages within the territory and in the exclusive economic zone of the Republic of Korea, shall fall under the jurisdiction of the court prescribed by the Supreme Court Rules, where any jurisdictional court under the provisions of paragraph (2) of this Article has not been determined.

Article 33 (Transfer of Cases Limiting Liability) The court may transfer ex officio any case limiting liability to any other jurisdictional court, to the court which has an universal jurisdiction over the limited claimant, or to the court where the case limiting liability concerning oil pollution damage, which has been caused by the same incident, is pending, where it is deemed necessary to avoid serious damage or delay.

Article 34 (Order of Deposit)

(1) Where it deems the application for the initiation of procedure limiting liability under Article 34 (1) to be appropriate, the court shall order an applicant to deposit the amount equivalent to the aggregate liability amount, plus an annual interest of 6% from the date of occurrence of an incident or any other calculating date to the date of designated deposit within a period not exceeding 14 days. (2) The provisions of Article 11 (2) and (3) of the Procedures for Limiting Liability Act shall apply mutatis mutandis to the calculation of aggregate liability amount under paragraph (1) of this Article, and service of the order of deposit. (3) Any applicant for the initiation of the procedures for limiting liability may submit the document of the guarantee of deposit instead of cash deposits of paragraph (1) of this Article, with permission of the court. (4) In the case of paragraph (3) of this Article, the provisions of Articles 13 through 15 of the Procedures for Limiting Liability Act shall apply mutatis mutandis. (5) An immediate appeal may be made against any decision referred to in paragraph (1) of this Article.

Article 35 (Intervention of International Fund)

The International Fund may intervene in the procedures for limiting liability as prescribed by the Supreme Court Rules.

Article 36 (Notice of Tendency of the Procedures for Limiting Liability to International Fund)

(1) Where the procedures for limiting liability is pending, any applicant for the procedures for limiting liability, beneficiary obligor or intervener in the procedures for limiting liability may notify such intent to the International Fund. (2) Any person who wishes to make a notification in accordance with the provisions of paragraph (1) of this Article shall submit a document stating the matters as prescribed by Article 21 (1) of the Procedures for Limiting Liability Act which is applied under Article 41.

(3) The court shall serve the document under the provisions of paragraph (2) of this Article to the International Fund.

Article 37 (Service of Notification, etc. of Cancellation of Initiation of Procedures for Limiting Liability to International Fund)

(1) The court shall serve a document stating any alterations in the matters as prescribed in Article 21 (1) of the Procedures for Limiting Liability Act when the International Fund intervenes in the procedure or when service has been made to the International Fund in accordance with the provisions of Article 36 (3), and a document stating matters concerning notification when a notification is made in accordance with the provisions of Article 25 (1), 83 (1) or 85 (1) of the Procedures for Limiting Liability Act applied under Article 41.

(2) The provisions of Article 8 of the Procedures for Limiting Liability Act shall apply mutatis mutandis to the cases of paragraph (1) of this Article. Article 38 (Intervention in Procedures for Limiting Liability by Owner of Ship who Takes Preventive Measures)

(1) The owner of a ship who takes preventive measures may intervene in the procedures for limiting liability as a person with limited claims concerning the expenses of the preventive measures.

(2) The provisions of Articles 43, 45 and 48 of the Procedures for Limiting Liability Act shall apply mutatis mutandis to the cases of paragraph (1) of this Article. Article 39 (Suspension of Legal Proceedings)

(1) Where an action between the claimant and the applicant or beneficiary obligor pertaining to the limited claims reported under the provisions of Article 43 of the Procedures for Limiting Liability Act, which is made applicable in Article 41, is pending, the court may order a suspension of the legal proceedings ex officio or upon request in the case of intervention in the procedures or receipt of the notification under the provisions of Article 23 (1) by the International Fund and in other cases, the court may suspend the proceedings upon request.

(2) Where an action against the International Fund in order to request for compensation concerning the limited claims reported under the provisions of Article 43 of the Procedures for Limiting Liability Act, which is applied mutatis mutandis under Article 38 (2), is pending, the court may order a suspension of the legal proceedings ex officio.

(3) In the case of paragraph (1) of this Article, when the court orders a suspension of the legal proceedings upon request by the plaintiff, the court may cancel the suspension order upon request by the plaintiff. Article 40 (Intervention, etc. of Supplementary Fund) With respect to the intervention in the procedures for limiting liabilities, notice of continuance of the procedures for limiting liabilities, etc., the provisions of Articles 35 through 37 and 39 shall apply mutatis mutandis. In this case, "International Fund" in Articles 35 through 37 and 39 shall be deemed as "Supplementary Fund," and "Fund Convention" in Article 39 (2) as "Supplementary Fund Convention". Article 41 (Applicability of Procedures for Limiting Liability Act) The provisions of the Procedures for Limiting Liability Act in addition to this Act shall apply mutatis mutandis to the procedures for limiting liability under the provisions of this Act. In such case, "this Act" in Articles 4, 6 through 8, 27, 34 and 88 of the Procedures for Limiting Liability Act shall be deemed as "this Act made applicable in Article 41 of the Compensation for Oil Pollution Damage Guarantee Act." "The total amount of limited claims under Article 770 (1) of the Commercial Act exceeds the corresponding maximum liability amount" in Article 10 of the Procedures for Limiting Liability Act shall be deemed as "the amount of limited claims exceeds the maximum liability amount of Article 8 of the Compensation for Oil Pollution Damage Guarantee Act." "Maximum liability amount under the provisions of Article 770 (1) and (4) of the Commercial Act" in Article 11 (1) of the Procedures for Limiting Liability Act shall be deemed as "maximum liability amount under Article 8 of the Compensation for Oil Pollution Damage Guarantee Act," and "Article 767 (1) of the Commercial Act" in Article 17 (1) of the Procedures for Limiting Liability Act shall be deemed as "Article 7 (2) of Compensation for Oil Pollution Damage Guarantee Act." "Article 770 (1) of the Commercial Act" in Article 18 (1) of the Procedures for Limiting Liability Act shall be deemed as "Article 8 (1) of Compensation for Oil Pollution Damage Guarantee Act." "Reasons referred to in the proviso other than the subparagraphs of Article 769 of the Commercial Act or subparagraphs of Article 773 of the same Act" in subparagraph 2 of the same Article shall be deemed as "the case referred to in the proviso of Article 7 (1) of the Compensation for Oil Pollution Damage Guarantee Act." "The content and assorting of limited claims according to the provisions of Article 770 (1) of the Commercial Act" in Article 53 of the Procedures for Limiting Liability Act shall be deemed as "the content" and "the content and assorting of limited claims under the provisions of Article 770 of the Commercial Act" in Article 56 of the Procedures for Limiting Liability Act shall be deemed as "the content." "The content and assorting of limited claims under the provisions of Article 770 (1) of the Commercial Act" in Article 57 (2) of the Procedures for Limiting Liabilities Act shall be deemed as "the content," and "the next, according to the assorting of limited claims under the provisions of Article 770 (1) of the Commercial Act" in Article 66 (2) shall be deemed as "the next." Article 42 (Supreme Court Rules)

The matters necessary for the procedures for limiting liability under this Act, other than those as provided in this Act, shall be provided by the Supreme Court Rules. CHAPTER III GENERAL SHIPAND OIL STORAGE BARGE

SECTION I LIABILITY OF GENERAL SHIP AND OIL STORAGE BARGE FOR COMPENSATION FOR OIL POLLUTION DAMAGE

Article 43 (Liability of General Ship for Compensation for Oil Pollution Damage (1) The owner of a general ship shall be liable for oil pollution damage resulting from Bunker Oil of the general ship; Provided that this provision shall not apply where the oil pollution damage of the ship falls under any of the subparagraphs of Article 5 (1). (2) With respect to the liability of a general ship for compensation for oil pollution damage, the provisions of Article 5 (2) through (4), (6) and Article 6 shall apply mutatis mutandis. In this case, "Oil Tanker" shall be deemed as "General Ship," "Oil" as "Bunker Oil" and "owner of an oil tanker" as "owner of a general ship". (3) With respect to the rights of claim for compensation against the owner of a general ship, the provisions of Article 11 shall apply mutatis mutandis. In this case, "owner of an oil tanker" shall be deemed as "owner of a general ship." Article 44 (Liability of Oil Storage Barge for Compensation for Oil Pollution Damage)

(1) The owner of an oil storage barge shall be liable for oil pollution damage resulting from oil on board the oil storage barge. Provided, that this provision shall not apply where the oil pollution damage falls under any one of subparagraphs of Article 5 (1).

(2) With respect to the liability of an oil storage barge for compensation for oil pollution damage, the provisions of Article 5 (2) through (4), (6) and Article 6 shall apply mutatis mutandis. In this case, "oil tanker" shall be deemed as "oil storage barge" and "owner of an oil tanker" as "owner of an oil storage barge". (3) With respect to the rights of claim for compensation against the owner of an oil storage barge, the provisions of Article 11 shall apply mutatis mutandis. In this case, "owner of an oil tanker" shall be deemed as "owner of an oil storage barge." Article 45 (Limitation of Liability of Owner of General Ship) (1) With respect to limitation of liability of the owner of a general ship (including partners with unlimited liability in the case of a corporation) that is liable for compensation for oil pollution damage, the provisions of Articles 9 and 10 shall apply mutatis mutandis, and Articles of 769 and 770 (1) of the Commercial Act shall also apply. In the case of mutatis mutandis application of Articles 9 and 10, "oil tanker" shall be deemed as "general ship."

Article 46 ((Limitation of Liability of Owner of Oil Storage Barge) (1) With respect to limitation of liability of the owner of an oil storage barge (including partners with unlimited liability in case of a corporation) that is liable for compensation for oil pollution damage, the provisions of Articles 7 through 10, 32 through 34, 38, 39 and 41 shall apply mutatis mutandis. In this case "oil tanker" shall be deemed to read "oil storage barge".

SECTION II COMPENSATION FOR OIL POLLUTION DAMAGE

GUARANTEE CONTRACT OF GENERAL SHIPAND OIL STORAGE BARGE Article 47 (Conclusion of Guarantee Contract)

(1) The owner of a general ship of gross tonnage exceeding 1,000 tons and registered with the Republic of Korea shall enter a compensation for oil pollution damage guarantee contract (hereinafter referred to as "oil pollution damage compensation guarantee contract") to guarantee the liability for compensation for oil pollution damage under Articles 43 (1) and 44 (1). (2) The owner of a general ship of gross tonnage exceeding 1,000 tons and registered in a foreign country which arrives and departures the domestic ports, or uses domestic mooring facilities, shall enter the oil pollution damage compensation guarantee contract.

(3) The Minister of Land, Transport and Maritime Affairs may order a general ship in violation of the provisions of paragraph (1) to suspend her proceeding. (4) The Minister of Land, Transportation and Maritime Affairs may refuse any ship which violates the provisions of paragraph (2) to arrive and departure the domestic ports or may not permit it to use domestic mooring facilities. Article 48 (Oil Pollution Damage Compensation Guarantee Contract) (1) An oil pollution damage compensation guarantee contract shall be an insurance contract which compensates the damage incurred by the owner of a general ship or oil storage barge due to fulfillment of his/her obligations for compensation or a contract which guarantees the fulfillment of his/her obligations for compensation where the owner of a ship is liable for compensation for oil pollution damage caused by the ship.

(2) With respect to the insurer, etc. with whom the owner of a general ship or oil storage barge may enter the oil pollution damage compensation guarantee contract, the provisions of Article 15 (2) shall apply mutatis mutandis. In this case, "owner of an oil tanker" shall be deemed as "the owner of a general ship or oil storage barge". (3) The oil pollution damage compensation guarantee contract shall not be less than the following amount;

1. The insurance amount to compensate the damage incurred by the owner of a general ship or the amount to guarantee the fulfillment of the obligations for compensation of the owner shall be the maximum amount of liability under Article 770 (1) 3 of the Commercial Act for each general ship.

2. The insurance amount to compensate the damage incurred by the owner of an oil barge (including consequential damage resulting from such oil pollution) or the amount to guarantee the fulfillment of the obligations for compensation of the owner shall be the maximum amount of liability under Article 8. Article 49 (Applicability)

With respect to claims of the owner of a general ship and oil storage barge against the oil pollution damage compensation guarantee contract and the insurer, etc., the provisions of Articles 16 through 19 shall apply mutatis mutandis. In this case, "oil tanker" shall be deemed as "general ship or oil storage barge," "guarantee contract" as "oil pollution damage compensation guarantee contract," "owner of an oil tanker" as "owner of a general ship or oil storage barge," and "Contracting States to the Civil Liability Convention" as "Contracting States to the Bunker Convention." Article 50 (Keeping of Certificate of Oil Pollution Oil Pollution Damage Compensation Guarantee Contract)

(1) Any general ship of gross tonnage exceeding 1,000 tons and registered with the Republic of Korea shall keep the certificate of oil pollution oil pollution damage compensation guarantee contract on board the ship. (2) Any oil storage barge shall keep the certificate of oil pollution damage compensation guarantee contract on board the barge or in the main office of the owner of the oil storage barge.

(3) Any general ship of gross tonnage exceeding 1,000 tons and registered with a foreign country, which seeks to enter or leave the domestic ports, or use domestic mooring facilities, shall keep the certificate of oil pollution damage compensation guarantee contract on board the ship.

CHAPTER IV SUPPLEMENTARY PROVISIONS

Article 51 (Priority Rights of Ship)

(1) The limited claimant for oil pollution damage of an oil tanker, general ship or oil storage barge shall have priority rights upon the ship which incurred the accident, its parts and uncollected transport fees concerning the limited claims. (2) The priority rights under the provisions of paragraph (1) shall be secondary to Article 777 (1) 4 of the Commercial Act.

(3) The provisions of Articles 777 through 786 of the Commercial Act shall apply mutatis mutandis to the priority rights under the provisions of paragraph (1). Article 52 (Effect of Formulation of Liability Limitation in Foreign Country which is Contracting State)

(1) In the case of the formulation of liability limitation in a foreign country which is a Contracting State to the Civil Liability Convention under the provisions of Article 5 (3) of the Civil Liability Convention, any claimant who holds limited claims for compensation from the fund may not exercise his/her rights upon the properties of the owner of a ship or insurer, etc. other than the Fund itself. (2) The provisions of Articles 28 through 30 of the Procedures for Limiting Liability Act shall apply mutatis mutandis to the provisions of paragraph (1). Article 53 (Appraisal of Oil Pollution Damage)

The requirements to be satisfied by any person who investigates the damage caused by oil pollution, calculates the amount of damage, and appraises oil pollution damage shall, if necessary, be determined by the Presidential Decree. Article 54 (Information of Guarantee Contract)

(1) The captain of a specific ship (referring to an oil tanker used for carrying oil exceeding 200 tons in bulk or a general ship of a gross tonnage exceeding 1,000 tons: the same shall apply hereafter) seeking to enter domestic ports from ports in foreign territory shall notify the Minister of Land, Transport and Maritime Affairs of the name, port of registry, information of conclusion of the guarantee contract or oil pollution damage compensation guarantee contract under this Act, etc. of the specific ship in advance under the conditions as provided by the Ordinance of the Ministry of Land, Transport and Maritime Affairs.

(2) The captain of a specific ship shall, where he/she is unable to notify the Minister of Land, Transport and Maritime Affairs of the information of the guarantee contract for inevitable reasons, including bad weather, disaster and other reasons as prescribed by the Ordinance of the Ministry of Land, Transport and Maritime Affairs, before making port, notify the information of the guarantee contract immediately after entrance into a port of the ship under the conditions as provided by the Ordinance of the Ministry of Land, Transport and Maritime Affairs. (3) The notice of the contents of the guarantee contract under paragraphs (1) and (2) may be made by the owner or agent of the specific ship. Article 55 (Inspections and Report, etc. on Entry) (1) The Minister of Land, Transport and Maritime Affairs may order the submission of related documents under the provisions of Articles 20, 26 and 50, or have the affiliated public officials enter the ship or workplace and inspect or confirm the related documents.

(2) The submission of the copy of the certificate of guarantee contract and the related documents under Article 20 (1) or 50 (1) shall be deemed to have underwent inspection under paragraph (1). Provided, that where there exists doubt as a result of examination of the submitted documents, the affiliated officials may conduct entrance and inspection.

(3) The Minister of Land, Transport and Maritime Affairs may operate an electronic processing system for the selection of ships subject to inspection, advance notice of inspection and reference to inspection result, etc. under paragraph (1) and (2). (4) The Minister of Land, Transport and Maritime Affairs shall, in the event of intending to conduct an entrance inspection under paragraph (1) and (2), notify matters such as the inspector, date and time, reason and content of the inspection at least seven days prior to the inspection of the workplace and in advance to the ship owner. Provided, that the same shall not apply when urgent or where it is deemed unable to attain the aim of the inspection or confirmation due to potential destruction of evidence or for other reasons, if an advance notice is given.

(5) The public officials who carry out the inspection or confirmation under the provisions of paragraphs (1) and (2) of this Article shall carry a certificate showing his/her authority and present it to the persons concerned. Article 56 (Ships for Public Use)

The provisions of this Act shall not apply to any ship owned by the Republic of Korea and which is offered for public use.

Article 57 (Delegation and Entrustment of Authority) (1) The Minister of Land, Transport and Maritime Affairs may delegate part of the authority under this Act to the heads of affiliated institutions as prescribed by the Presidential Decree.

(2) The Minister of Land, Transport and Maritime Affairs may entrust the marine disaster prevention specialized agencies designated by the Presidential Decree with the following authority as prescribed by the Presidential Decree:

1. Receipt and processing of report of the quantity of contributing oil received under the provisions of Article 26 (1) and (2);

2. Notification, submission of a document under Article 27 (1) and notification of the quantity of contributing oil under Article 27 (2);

3. Notice of demand for the payment of contributions under the provisions of Article 29.

CHAPTER V PENAL PROVISIONS

Article 58 (Bribery by Manager)

(1) Where any manager appointed under the provisions of Article 20 of the Procedures for Limiting Liability Act which shall be applicable mutatis mutandis under Article 41 or any deputy manager appointed under the provisions of Article 37 of the Procedures for Limiting Liability Act which shall be applicable mutatis mutandis under Article 41 accepts, demands or promises a bribe in connection with his/her duty, such person shall be punished by imprisonment for not more than five years or a fine not exceeding 5,000,000 won.

(2) In the case of paragraph (1), the bribe taken shall be confiscated. Where it is impossible to confiscate whole or part of the bribe, its equivalent value shall be collected.

Article 59 (Offer etc. of Bribe)

Any person who has promised, offered or expressed his/her intention to offer a bribe under the provisions of Article 58 (1) shall be punished by imprisonment for not more than three years or a fine not exceeding 2,000,000 won. Article 60 (Penal Provisions)

Any person falling under any of the following subparagraphs shall be punished by imprisonment for not more than three years or a fine not exceeding 50,000,000 won:

1. Any person who fails to conclude the guarantee contract in violation of the provisions of Articles 14 (1) or 47 (1);

2. Any person who enters or leaves domestic ports, or uses domestic mooring facilities without entering a guarantee contract in violation of the provisions of Articles 14 (2) or 47 (2); and

3. Any person who has a certificate of guarantee contract issued or reissued under the provisions of Article 18 (including the case of applying mutatis mutandis in Article 47) by fraudulent or other unlawful methods. Article 61 (Penal Provisions)

Any person who fails to report or reports falsely, or fails to submit or submits false documents upon request for report or submission of documents under the provisions of Article 34 (2) of the Procedures for Limiting Liability Act which is applicable mutatis mutandis under Article 41, shall be punished by imprisonment for not more than one year or a fine not exceeding 5,000,000 won. Article 62 (Penal Provisions)

Any person falling under any of the following subparagraphs shall be punished by a fine not exceeding 5,000,000 won:

1. Any person who fails to make a notice under Article 54 (1) (including alteration notice) or makes a false notice;

2. Any person who fails to make a notice under Article 54 (2) or makes a false notice;

3. Any person who fails to submit or submits falsely related documents in violation of the order for submission of related documents under Article 55 (1) without reasonable cause; and

4. Any person who refuses, interferes with, or avoids the inspection or confirmation by public officials without reasonable cause in violation of the provisions of Article 55 (1) or (2).

Article 63 (Joint Penal Provisions)

Where the representative of a corporation, or an agent, servant, or any other employee of a corporation or an individual commits an act of offense as referred to in Articles 60 through 62 in connection with the activities of the legal person or the individual, the corporation or the individual shall also be punished by a fine of each Article in addition to punishment of the wrongdoer. Provided, that the same shall not apply where the corporation or the individual has supervised the affairs with considerable attention to prevent such offense.

Article 64 (Presumption as Public Officials in Application of Penal Provisions) Officers and staff of marine disaster prevention agencies engaged in the activities entrusted by the Minister of Land, Transport and Maritime Affairs under the provisions of Article 57 (2) shall be deemed as public officials in the application of Articles 129 through 132 of the Criminal Act.

Article 65 (Fine for Negligence)

(1) Any person falling under any of the following subparagraphs shall be punished by a fine for negligence not exceeding 5,000,000 won:

1. Any person who fails to report or reports falsely in violation of the provisions of Article 19 (1);

2. Any person who fails to keep the certificate on board a ship in violation of Article 20 (1) or 50 (1);

3. Any person who enters or leaves a domestic port or uses domestic mooring facilities without keeping the documents, etc. on board the ship in violation of Article 20 (2) or 50 (3);

4 Any person who fails to report or reports falsely in violation of the provisions of Article 26 (1) or (2);

5. Any person who fails to keep the certificate on board an oil storage barge or in the main office of the owner in violation of Article 50 (2); (2) The fine for negligence of paragraph (1) shall be imposed and collected by the Minister of the Land, Transport and Maritime Affairs (referring to the head of an affiliated agency where such authority is delegated to him/her under the provisions of Article 57 (1)) under the conditions as prescribed by the Presidential Decree. ADDENDA

Article 1 (Enforcement Date)

This Act shall enter into force six months after the date of its promulgation: Provided that the amended provisions of Articles 30, 31 and 40 shall enter into force on the date when the Supplementary Fund Convention enters into force for the Republic of Korea.

Article 2 (Transitional Measures Concerning Penal Provisions, etc.) Where the penal provisions and fine for negligence are applied to acts conducted before the enforcement of this Act, provisions valid at the time of such acts shall apply.

Article 3 (Amendments of Other Acts)

Part of the Special Act on Support for Victims of Oil Pollution Damage from the Herbei Spirit and Restoration of Oceanic Environment, etc. shall be amended as follows:

"Ship" in subparagraph 1 of Article 2 shall be amended to "oil tanker," and "subparagraph 4 of Article 2 of the Compensation for Oil Pollution Damage Guarantee Act" in subparagraph 8 of the same Article to "subparagraph 7 of Article 2 of the Compensation for Oil Pollution Damage Guarantee Act". "Article 6 (1) of the Compensation for Oil Pollution Damage Guarantee Act" in Article subparagraphs (1) and (2) of Article 9 (1) shall be amended to "Article 7 (1) of the Compensation for Oil Pollution Damage Guarantee Act". Article 4 (Relationship with Other Acts)

The previous provisions of the Compensation for Oil Pollution Damage Guarantee Act cited by other Acts and subordinate statutes at the time when this Act is effective shall be deemed to cite the corresponding provisions in the place of the previous provisions, if there are any provisions corresponding to them.