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ENFORCEMENT DECREE OF THE ACT ON DESIGNATION AND MANAGEMENT OF FREE ECONOMIC ZONES
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ENFORCEMENT DECREE OF THE ACT ON DESIGNATION AND MANAGEMENT OF FREE ECONOMIC ZONES
ENFORCEMENT DECREE OF THE ACT ON DESIGNATION AND MANAGEMENT OF FREE ECONOMIC ZONES
INTRODUCTION
Details of Enactment and Amendment
- Enactment: This Decree was enacted by the Presidential Decree No. 18029 (Jun. 30, 2003) following the enactment of the Act on Designation
and Operation of Free Economic Zones (Act No. 6835, Dec. 30, 2002), which is for the creation of foreigner friendly management and
living conditions in the free trade zone so that our country can play a central role of the Northeast Asian economy, so as to prescribe
the matters delegated by the same Act, and the matters necessary for the enforcement thereof.
- Amendment: This Decree has arrived at its present form as a result of being amended 2 times with the latest one on April 28, 2005
after the enactment thereof.
Main Contents
- This Decree lays down the detailed standards of international airport, international port, etc. to be considered when to designate
free trade zone.
- This Decree lays down the extent of exemption or deduction of rent for foreigner invested enterprise that occupies the free trade
zone, and the extent of construction cost of main infrastructure facilities that the State can preferentially support.
- This Decree lays down the extent of foreign language service that the mayor of Seoul Metropolitan City, mayor of Metropolitan City
or Do governor supplies, and the extent of foreign currency payable as means of foreign payment between parties to ordinary transaction.
- The Minister of Education and Human Resources Development, Minister of Foreign Affairs and Trade, Ministry of Government Administration
and Home Affairs, Minister of Commerce, Industry and Energy, etc. shall be the ex officio members of the free trade zone commission,
and persons entrusted from among the specialists in the field relating to the free trade zone such as labor, environment, foreign
investment, etc. shall be entrusted members.
- The standard of business type and facility which is judged as inappropriate for occupancy in the free trade zone shall be the business
type and facility that obstruct pleasant residence surroundings, or are markedly low in contribution to the national economic development
in view of technological transfer, generation of employment, etc.
- The Seoul Metropolitan City, Metropolitan City, City or Gun that controls the free economic zone may lay down the maximum of building-to-land
ratio or ratio of volume of building by the Municipal Ordinance separately from the one prescribed by the National Land Planning
and Utilization Act according to the specific use zone.
ENFORCEMENT DECREE OF THE ACT ON DESIGNATION AND MANAGEMENT OF FREE ECONOMIC ZONES
Presidential Decree No. 18029, Jun. 30, 2003
Amended by Presidential Decree No. 18548, Sep. 17, 2004
Presidential Decree No. 18816, Apr. 28, 2005
Article 1 (Purpose)
The purpose of this Decree is to provide for matters delegated under the Act on Designation and Management of Free Economic Zones
and other matters needed for its enforcement. <Amended by Presidential Decree No. 18816, Apr. 28, 2005>
Article 2 (Request for Designating Free Economic Zones)
(1) The Special Metropolitan City Mayor, the Metropolitan City Mayor or the Do governor (hereinafter referred to as the Mayor/Do
governor ) shall, when he asks for designating any free economic zone in accordance with Article 4 (1) of the Act on Designation
and Management of Free Economic Zones (hereinafter referred to as the Act ), work out measures to stabilize the prices of real estate,
including lands and buildings, etc. which are located in the area to be developed into the free economic zone and in its surrounding
areas, and consult with the Minister of Finance and Economy and the Minister of Construction and Transportation thereabout in advance.
<Amended by Presidential Decree No. 18816, Apr. 28, 2005>
(2)The Mayor/Do governor may ask the heads of central administrative agencies concerned to take necessary measures to stabilize the
prices of real estate in a free economic zone and its surrounding areas.
Article 3 (Publication of Designation of Free Economic Zone, etc.)
(1) The Minister of Finance and Economy shall, when he designates any free economic zone in accordance with Article 4 (6) of the Act,
publish matters falling under each of the following subparagraphs in the Official Gazette: <Amended by Presidential Decree No.
18816, Apr. 28, 2005>
1.The name, location and area of the free economic zone;
2.Objectives of designating the free economic zone;
3.The location, size and undertaker of a development project inside the free economic zone (hereinafter referred to as the development
project );
4.The duration of the development project, ways to secure financial resources and methods of undertaking the development project (in
the event that the development project is undertaken on a phased basis in accordance with Article 4 (5) of the Act, the above refers
to the duration of the development project, ways to secure financial resources and methods of undertaking the development project
on a phased basis);
5.Programs for utilizing land and for major infrastructure;
6.Programs for accommodating population and for constructing residental buildings;
7.Program for inducing investments from foreigners and creating environment for their settlement;
8.Ways to persue related books; and
9.Other matters that are recognized as necessary by the Free Economic Zone Committee set up pursuant to Article 25 of the Act (hereinafter
referred to as the Committee ).
(2) The Minister of Finance and Economy shall, if he cancels, in part, the designation of any free economic zone or alters details
of the development project of any free economic zone in accordance with Article 7 of the Act, publish the grounds thereof and matters
falling under each of the subparagraphs of paragraph (1) in the Official Gazette: Provided, That he shall, if he cancels, in whole,
the designation of any free economic zone, publish the grounds thereof and matters falling under subparagraph 1 through 3 of paragraph
(1).
Article 4 (Matters Taken into Account with Regard to Designation of Free Economic Zone)
(1) The international airports and international harbors provided for in subparagraph 4 of Article 5 of the Act shall be in conformity
with the standards specified in each of the following subparagraphs:
1.In the case of any international airport, it is required to have access to regular international air links and the capacity to handle
not less than 500,000 tons of freight a year; and
2.In the case of any international harbor, it is required to have access to regular international container-ship shipping links and
the capacity to handle not less than 10 million tons of cargoes a year and the exclusive wharf for not less than 20,000-ton container
ships.
(2) The term other matters prescribed by the Presidential Decree in subparagraph 7 of Article 5 of the Act means matters falling
under each of the following subparagraphs:
1.The easiness of securing professional manpower and the supply and demand of manpower;
2.The level of services in surrounding cities, including management environment and living conditions, etc.;
3.The practicality of the plan for developing any free economic zone; and
4.Other matters that are recognized as necessary by the Minister of Finance and Economy.
Article 4-2 (Undertaker of Development Business)
The Minister of Finance and Economy shall give considerations to matters falling under each of the following subparagraphs in designating
the undertakers of development businesses under subparagraph 3 of Article 6 of the Act:
1.Ability to induce foreign investments;
2.Financial soundness and ability to raise the required funds;
3.Experiences to execute the similar development businesses; and
4.Matters publicized by the Minister of Finance and Economy as he deems it necessary.
[This Article Newly Inserted by Presidential Decree No. 18816, Apr. 28, 2005]
Article 5 (Plan for Developing Free Economic Zones)
(1) The term matters prescribed by the Presidential Decree in subparagraph 13 of Article 6 of the Act means matters falling under
each of the following subparagraphs:
1.The duration of the development project;
2.Matters concerning the infrastructure such as the use of water, energy, traffic and information and communications, etc.;
3.Program for cultural facilities and creating parks as well as green areas;
4.Program for urban scenary;
5.Program for existing buildings and installations, etc. to be kept intact;
6.Program for underground installations including utility tunnels, etc.;
7.Matters concerning the inducement of major facilities and standards for installing them; and
8.The examination of the economic efficiency with respect to the program for constructing key establishments, including the social
infrastructure, etc., which are all necessary to develop any economic free zone.
(2) The plan for developing free economic zone shall be appended by documents and drawings falling under each of the following subparagraphs:
1.The topographic map drawn on a scale of not less than 1 to 25,000, which indicates the location of the relevant free economic zone
and the topographic map drawn on a scale of not less than 1 to 5,000, which indicates the location of the relevant free economic
zone; and
2.The land registration map or the forest land map, which indicates the boundary of the relevant free economic zone.
(3) The Minister of Finance and Economy may, when it is deemed necessary, ask the Mayor/Do governor for additional matters to be included
in the plan for developing any free economic zone.
Article 6 (Change in Plan for Developing Free Economic Zones)
The term insignificant matters as prescribed by the Presidential Decree in Article 7-2 (3) of the Act means matters falling under
anyone of each of the following subparagraphs: <Amended by Presidential Decree No. 18816, Apr. 28, 2005>
1.Change in the name of the relevant free economic zone on the grounds of a change in the administrative district, etc.;
2.Change in the area that is equivalent to less than 10/100 of the area of the relevant free economic zone;
3.Change in the number of the population that is equivalent to less than 10/100 of the number of the population scheduled to be accommodated;
4.Change in the detailed program for the development project within the scope of not changing the goals of such development project;
5.Change in the program for building a major infrastructure on the grounds of circumstances involving topography and soil quality;
6.Change in the name and address of the undertaker of the development project (in the case of a corporation, it refers to the name
and address of such corporation and also the name and address of the representative of such corporation; hereafter the same shall
be applied); and
7.Other matters prescribed by the Minister of Fiance and Economy.
Article 6-2 (Restrictions on Acts)
(1) The term acts as prescribed by the Presidential Decree in the former part of Article 8-2 (1) of the Act means acts falling under
any of the following subparagraphs:
1.Alteration of the type and quality of lands and excavation;
2.Gathering of earth and rocks, gravel and sand;
3.New construction, reconstruction and expansion of buildings, or installation of structures;
4.Deforestation of bamboo trees and planting; and
5.Installation or stacking of goods uneasy to move.
(2) The competent Mayor/Do governor shall render a permission for acts falling under each subparagraph of paragraph (1) within the
scope not hindering the development business. In this case, the competent Mayor/ Do governor shall hear opinions of the undertaker
of development business before rendering the permission.
(3) Notwithstanding the provisions of paragraph (1), acts falling under any of the following subparagraphs within districts of development
business may be performed without any permission of the competent Mayor/ Do governor:
1.Alteration of the type and quality of lands for cultivation;
2.Installation of simple structures to be directly utilized for production of the agricultural fishery products;
3.Tentative planting of ornamental vegetation in areas which are not the cultivation lands;
4.Installation or stacking of goods of less than five tons which are the goods of solitary entity whose individual part is less than
one ton and easy to partition; and
5.Acts of utilizing lands which do not hinder the development business and do not damage natural sights.
[This Article Newly Inserted by Presidential Decree No. 18816, Apr. 28, 2005]
Article 7 (Program for Undertaking Development Project)
Every undertaker of the development project shall develop a program for undertaking his development project in accordance with Article
9 (1) of the Act in conformity with the plan for developing free economic zones.
Article 8 (Application for Approving Program for Undertaking Development Project)
(1) Every undertaker of the development project shall, when he intends to obtain approval for a program for undertaking his development
project in accordance with Article 9 (1) of the Act, file an application specifying matters falling under each of the following subparagraphs,
with the Minister of Finance and Economy for approving the program for undertaking the development project: <Amended by Presidential
Decree No. 18816, Apr. 28, 2005>
1.The location and area of the development project he intends to undertake;
2.The implementation duration of the development project;
3.Schedule to secure and utilize the land required for the development project;
4.In the event that the development project is undertaken on a phased basis in accordance with Article 4 (5) of the Act, the program
for undertaking the development project on a phased basis;
5.District unit planning under the provisions of Article 9 (4) of the Act ;
5-2. Necessity of application of relevant special cases and detailed contents in the case where the building-to-land ratio or building
volume ratio is separately provided under Article 9-2 of the Act;
6.In the event that the permission, etc. are already granted, which are deemed fictitious under each subparagraph of Article 11 (1)
of the Act, the contents thereof;
7.The name and address of the undertaker of the relevant development project; and
8.Other matters that are recognized by the Minister of Finance and Economy as necessary to undertake the development project.
(2) Every application for approving the program for undertaking the development project under paragraph (1) shall be accompanied by
documents and drawings falling under each of the following subparagraphs: <Amended by Presidential Decree No. 18816, Apr. 28,
2005>
1.The location map;
2.The site map drawn on the basis of the land registration map;
3.Planned floor plan design and summary drawing documents;
4.Plan for fiancing the development project and a document attesting such plan (including the investment plan by year, the plan for
securing financial resources and the plan for recovery of invested money by year, etc.);
4-2.Plans for inducing the foreign investments;
5.Plan for purchasing or compensating for land, etc. in the area of the development project (referring to the land, goods or rights
provided for in Article 2 of the Act on the Acquisition of Land, etc. for Public Works and the Compensation Therefor; hereinafter
the same shall apply) and a document concerning the relocation of residents;
6.Plan for utilizing, earning profit from, managing and disposing of the land and facilities created by the development project;
7.The environmental impact assessment report provided for in Article 17 of the Act on Assesment of Impacts of Works on Environment,
Traffic, Disasters, etc.;
8.A document concerning measures to preserve cultural properties;
9.A written record concerning the installation, relocation, removal, reversion, transfer of control, transfer, etc. of public facilities;
10.A detailed statement concerning the location, lot number, category, area, ownership and rights other than the ownership of the
land, etc. to be expropriated, and a document stating the name and address of the landowner or the rightful claimant on the land;
11.A detailed statement concerning existing factories and buildings, etc. that are intended to be kept intact as they are;
12.Plan for reversing and replacing public facilities and land, etc.; and
13.Documents necessary for consultations with the heads of administrative agencies concerned under Article 11 (2) of the Act.
Article 9 (Procedures for Approving Program for Undertaking Development Project)
(1) The relevant undertaker of the development project shall file an application for approving his program for undertaking the development
project under Article 9 (1) of the Act within 18 months from the date on which the designation of the relevant free economic zone
is published in accordance with Article 4 (6) of the Act with the Minister of Finance and Economy, and also submit the copy of his
program for undertaking the development project to the Mayor/Do governor: Provided, That in case where the time limit for approval
of execution plans has been extended under Article 9 (3) of the Act, the time limit for application for execution plans has also
been deemed to have been extended as much as the relevant extended time limit. <Amended by Presidential Decree No. 18816, Apr.
28, 2005>
(2) The Minister of Finance and Economy shall notify in writing the relevant undertaker of the development project of whether he grants
approval or grants approval after altering the application within 6 month from the date on which he receives the application for
approving the program for undertaking the development project under paragraph (1), unless there exist special circumstances which
render it impossible for him to do so.
Article 10 (Change in Program for Undertaking Development Project)
The term insignificant matters as prescribed by the Presidential Decree in the proviso of Article 9 (2) of the Act means matters
falling under any one of the following subparagraphs: <Amended by Presidential Decree No. 18816, Apr. 28, 2005>
1.Change in the name and address of the undertaker of the development project;
2.Change in the duration of the development project within the term of not more one year;
3.Correction of mistake, etc. of the project area, within the scope of not changing the area of the development project; and
4.Change in the location of unimportant equipment and facilities.
Article 11 (Time for Submitting Environment Impact Assessment Report)
The environmental impact assessment report and consultations shall be submitted and requested, respectively, prior to granting approval
for the program for undertaking the development project under Article 9 of the Act, notwithstanding the provisions of Article 14
(1) of the Enforcement Decree of the Act on Assessment of Impacts of Works on Environment, Traffic, Disasters, etc. <Amended by
Presidential Decree No. 18816, Apr. 28, 2005>
Article 11-2 (Special Cases concerning National Land Planning and Utilization Act)
Special Metropolitan Cities, Metropolitan cities having jurisdiction over free economic zones or Sis/Guns located within the free
economic zones may provide separately the building-to-land ratio or building volume ratio within the free economic zones by their
Municipal Ordinances within the scope not exceeding 150/100 of the building-to-land ratio or building volume ratio to be applied
to the relevant specific-use area; Provided, That in case where the specific-use area is altered under Article 11 (1) 16 of the Act,
the building-to-land ratio or building volume ratio shall not be provided separately.
[This Article Newly Inserted by Presidential Decree No. 18816, Apr. 28, 2005]
Article 12 (Publication of Approving of Program for Undertaking Development Project)
Matters that the Minister of Finance and Economy is required to publish in the Official Gazette with regard to the program for undertaking
the development project under Article 10 (1) of the Act shall be as follows:
1.The name of the development project and also the name of the undertaker of the development project (in the case of a corporation,
the name of such corporation and the name of the representative thereof);
2.Objectives and a summary of the development project;
3.The location and area of the development project;
4.The duration of the development project; and
5.Details of the land, etc. to be expropriated or used: Provided, That it excludes the case where such details of the land, etc. are
included in the publication of the designation of the relevant free economic zone.
Article 12-2 (Procedures for Legal Fiction of Authorization or Permission etc.)
The head of related administrative agency in receipt of a request for consultation from the Minister of Finance and Economy under
Article 11 (2) of the Act shall present his opinions within 30 days from the date of receiving the request for consultation.
[This Article Newly Inserted by Presidential Decree No. 18816, Apr. 28, 2005]
Article 13 (Inspection of Work Completion)
(1) Any undertaker of the development project shall, when he intends to have the completion of his development project inspected in
accordance with Article 14 (1) of the Act, file an application for the inspection of work completion, accompanied by documents falling
under each of the following subparagraphs, with the Minister of Finance and Economy:
1.The written record of work completion (including the drawing and specification of work completion and photos showing the work completion);
2.The map of cadastral survey;
3.The written record of the land area by the purpose of use;
4.The written record of reverted public facilities, etc. and their drawings; and
5.Other documents prescribed by the Ordinance of the Ministry of Finance and Economy.
(2) The Minister of Finance and Economy shall, upon receiving any application for the inspection of work completion, check whether
the relevant development project has been undertaken in conformity with the program for undertaking development project and if he
recognizes the relevant development project has been undertaken in conformity with such program, deliver a written inspection of
work completion to the relevant undertaker of the development project and then publish matters falling under each of the following
subparagraphs in the Official Gazette:
1.The name of the development project;
2.The name and address of the undertaker of the development project;
3.The location and area of the development project and the area by the purpose of use;
4.The date of work completion;
5.Matters concerning management and disposal of major facilities; and
6.Other matters that are recognized as necessary by the Minister of Finance and Economy.
Article 14 (Use of Land, etc. Prior to Inspection of Work Completion)
(1) In the event that any person, who has rented or purchased by contract any land created and any facility installed in the development
project, asks for permission for using them prior to the inspection of work completion, the undertaker of the relevant development
project shall, if the use of such land and facility prior to the inspection of work completion is deemed not to impede his development
project, file an application for permission for use prior to the inspection of work completion, accompanied by documents falling
under each of the following subparagraphs, with the Minister of Finance and Economy:
1.Document stating the grounds of using them and the urgency of using them prior to the inspection of work completion;
2.Document showing the current process of the work involving such land and facility to be used;
3.The written opinion put forward by the inspector of work or the supervisor of work with regard to the possibility of use of land
and facility to be used and their safety, etc.;
4.The drawing and photo showing such land and facility to be used in the completion stage; and
5.The explicit survey of the land to be used.
(2) The Minister of Finance and Economy shall, upon receiving the application from the undertaker of the relevant development project
for using the land and facility under paragraph (1), judge whether the developed land and the installed facility can be used in conformity
with their usages and then take a disposition of granting the permission or not granting the permission within 30 days from the date
on which he receives the application.
Article 15 (Financial Support for Local Governments)
(1) In the event that the State financially supports local governments in accordance with Article 16 (3) of the Act, the Committee
shall set standards for financial support taking into account matters falling under each of the following subparagraphs. In this
case, the Committee shall take into consideration the standards for financial support provided for in Article 14 of the Foreign Investment
Promotion Act: <Amended by Presidential Decree No. 18816, Apr. 28, 2005>
1.The scale of job creation;
2.The effects of technology transfer;
3.The types of business and the amount of investment, which are run and made by foreign-invested enterprises located in free economic
zones (hereinafter referred to as located foreign-invested enterprises );
4.The extent of contributions by local governments to the inducement of foreign investments; and
5.The ripple effects of foreign investments on the local economy as well as the national economy.
(2) The heads of central administrative agencies shall, upon receiving requests from local governments for financial support, provide
such local governments with financial support according to the standards for financial support, which are set by the Committee: Provided,
That in case where the funds are assisted under Article 14 of the Foreign Investment Promotion Act as the foreign investment areas
under Article 18 of the same Act are designated within the free economic zone, the funds shall not be assisted. <Amended by Presidential
Decree No. 18816, Apr. 28, 2005>
Article 16 (Reduction or Exemption, etc. of Rentals on National and Public Properties)
(1) The amount of rentals on national and public properties provided for in Article 16 (4) of the Act shall be an amount obtained
by multiplying the rate of not less than 10/1,000 by the value of the relevant national and public properties.
(2) The reduction rate or exemption rate applied to the rentals on national properties provided for in Article 16 (4) of the Act shall
be set by the national property management agency in charge of managing the relevant national properties (including any person who
is delegated or entrusted under Article 21 or 32 (3) of the State Properties Act) within the scope of 100/100 of the rentals on the
national properties. <Amended by Presidential Decree No. 18816, Apr. 28, 2005>
(3) Any located foreign-invested enterprise that intends to have rentals on any national property reduced or exempted in accordance
with Article 16 (4) of the Act shall file an application for the reduction or the exemption of the rentals with the competent national
property management agency.
(4) Any located foreign-invested enterprise that intends to have rentals on any public property reduced or exempted in accordance
with Article 16 (4) of the Act shall file an application for the reduction or exemption of the rentals with the head of the relevant
local government.
(5) The relevant local government shall prescribe the business entitled to the reduction or exemption of the rentals on public properties
provided for in Article 16 (4) of the Act and detailed matters concerning the reduction or exemption rate of the rentals in the Municipal
Ordinance taking into account job creation and the effects on the revitalization of free economic zones and local economy, etc.
(6) The State and local governments may, if they sell any national and public property to any undertaker of the development project
or any located foreign-invested enterprise and any purchaser is recognized to be difficult to pay the purchase price in a lump sum,
extend the payment date of the purchase price or allow the purchaser to pay the purchase price in installments according to methods
falling under each of the following subparagraphs in accordance with Article 16 (5) of the Act. In this case, the applied interest
shall not exceed 4 percent per annum:
1.In the case of the national property: the payment date of the purchase price is extended within the term of one year or the purchase
price is paid in installments within the term of 20 years; and
2.In the case of the public property: the payment date of the purchase price is extended or the purchase price is paid in installments
as prescribed by the Municipal Ordinance.
(7) The rents and sales of national and public properties provided for in Article 16 of the Act shall be governed by the State Properties
Act and the Local Finance Act except as otherwise provided for in the Act and this Decree. <Amended by Presidential Decree No.
18816, Apr. 28, 2005>
Article 17 (Preferential Assistance in Infrastructure)
(1) The infrastructure to which the State and local governments are required to provide preferential assistance under Article 18 of
the Act shall be as follows:
1.National expressways, general national highways, Special Metropolitan City highways, Metropolitan City highways, local highways
and State-supported local highways, which all link free economic zones with outside areas;
2.Principal roads inside free economic zones;
3.Railway, subway, airport and harbor facilities;
4.Parks and green areas;
5.Utility tunnels, tap-water and sewage systems and waste-disposal facilities; and
6.Other infrastructure which is in need of support and the Committee resolves after deliberation to support it for the purpose of
revitalizing free economic zones.
(2) The State may financially support the infrastructure referred to in each subparagraph of paragraph (1) within the scope of 50/100
of the construction cost: Provided, That in the event that it is deemed necessary to revitalize free economic zones, the State may
cover the total amount of the construction cost after going through the Committee s deliberation and resolution.
(3) The State shall, if it provides the financial support referred to in paragraph (2), decide infrastructures subject to the financial
support and the scope of the financial support after going through the Committee s deliberation and resolution.
Article 18 (Provision of Foreign-Language Services)
(1) The foreign language for which services are rendered under Article 20 (1) of the Act shall be English in principle and if it is
deemed necessary, other foreign language may be used.
(2) The scope of rendering foreign-language services under Article 20 (2) of the Act shall be as follows:
1.Acts and subordinate statutes governing the designation and operation of free economic zones;
2.The plan for developing free economic zones;
3.Various official business manuals and information materials compiled by administrative agencies in connection with the development
project;
4.Documents sent out to foreigners (including the organizations of foreigners; hereafter the same shall apply) in free economic zones;
5.The answering of civil petitions filed by foreigners in free economic zones;
6.The handling of queries and complaints from foreigners and counseling for foreigners in free economic zones;
7.Various publications and public notices which are made under this Act; and
8.Other matters that are deemed necessary to ensure the conveniences of foreigners.
(3) Administrative agencies concerned shall, if requested by foreigners in free economic zones, translate the materials referred to
in each subparagraph of paragraph (2) into English and provide foreigners with them and such administrative agencies concerned may,
if it is deemed necessary, render interpretation services.
(4) For the purpose of rendering foreign-language services referred to in paragraph (2), administrative agencies concerned shall post
necessary professional manpower, including interpreters and translators, etc., and compile and keep related materials, etc.
(5) Administrative agencies concerned may, if requested by foreigners in free economic zones, assist with their handling of civil-petition
affairs, including the writing and submission, etc. of their civil petitions.
Article 19 (Payment in Ordinary Transaction)
The price in ordinary transaction in any free economic zone under Article 21 of the Act, the amount of which is not more than $10,000
per transaction, may be paid directly by means of foreign exchange between the parties to such ordinary transaction.
Article 20 (Appointment of Foreign Teachers, etc.)
(1) Qualifications for foreign teachers who are appointed to operate the curriculum of the international high school (hereinafter
referred to as the international high school ) under Article 22 (7) of the Act shall be as follows: <Amended by Presidential
Decree No. 18816, Apr. 28, 2005>
1.Persons who fall under the qualification standards for middle-school teachers provided for in Article 21 (2) and the attached Table
2 of the Elementary and Secondary Education Act; and
2.Persons who have taught not less than 3 years after obtaining teaching qualifications in accordance with their respective home-country
Acts.
(2) The person authorized to appoint teachers may, if it is necessary to operate the curriculum of the international high school,
appoint any foreigner as a lecturer.
(3) The qualification standards referred to in each subparagraph of paragraph (1) shall also apply to the qualification standards
for appointment of foreign lecturers under paragraph (2): Provided, That any foreigner who has earned a bachelor s degree or higher
in accordance with his home-country Act shall be deemed to meet the qualification standards for foreign lecturers.
(4) In the event that any foreigner falling under the proviso of paragraph (3) is appointed as a lecturer, he shall undergo the training
of not less than 4 weeks, which is conducted by the superintendent of the board of education of the Special Metropolitan City, the
Metropolitan City or the Do (hereinafter referred to as the City/Do ), within 6 months from the date of his appointment.
(5) The foreign teachers referred to in paragraph (1) shall be contracted every five years and they may be appointed only for their
own mother languages of native country and a subject that is deemed necessary by the head of the international high school. The term
of appointment for foreign lecturers referred to in paragraph (2) shall be not more than one year and the term of appointment for
them may, if necessary, be extended within the term of 3 years.
(6) Foreign teachers and lecturers may be remunerated in accordance with their respective appointment contracts, taking into account
Article 5 and the attached Table 11 of the Rules on the Remuneration of Public Officials.
(7) The services of foreign teachers and lecturers shall be governed by their respective appointment contracts.
Article 21 (Retransmission of Foreign Broadcasts)
The number of channels for foreign broadcasts which any CATV broadcasting business operator may retransmit under Article 24 of the
Act shall not exceed 20/100 of the television broadcasting channels, radio broadcasting channels and data broadcasting channels under
operation, respectively. <Amended by Presidential Decree No. 18548, Sep. 17, 2004>
This Article has lost its effect since July 1, 2005 in accordance with the provisions of paragraph (2) of the Addenda which was prescribed
by the Presidential Decree No. 18029 on June 30, 2003
Article 22 (Matters Subject to Committee s Deliberation and Resolution)
The term the matters prescribed by the Presidential Decree in Article 25 (2) 7 of the Act means the matters falling under each of
the following subparagraphs: <Amended by Presidential Decree No. 18816, Apr. 28, 2005>
1.Matters concerning the prevention of illegal circulation of foreign currencies in free economic zones;
2.Matters concerning the prevention of rampant and unplanned development and steps to stabilize the prices of real estate in free
economic zones;
3.Matters concerning the installation criteria, etc. for the structures within the sports facilities under Article 9-3 of the Act;
4.Matters concerning the financial support by the State for local governments under Article 16 (3) of the Act; and
5.Other matters that are recognized by the Committee as necessary for improving management conditions and living environment for foreigners.
Article 23 (Members)
(1) The ex officio members provided for in Article 25 (5) of the Act shall be the Minister of Education and Human Resources Development
and the Minister of Science and Technology, the Minister of Foreign Affairs and Trade, the Minister of Government Administration
and Home Affairs, the Minister of Culture and Tourism and the Minister of Agriculture and Forestry, the Minister of Commerce, Industry
and Energy, the Minister of Information and Communication, the Minister of Health and Welfare, the Minister of Environment, the Minister
of Labor, the Minister of Construction and Transportation, the Minister of Maritime Affairs and Fisheries, the Minister of Planning
and Budget and the Minister of Office for Government Policy Coordination. <Amended by Presidential Decree No. 18816, Apr. 28,
2005>
(2) The commissioned members provided for in Article 25 (6) of the Act shall be those commissioned from among experts in the fields
of labor, environment, foreign investment, physical distribution, urban policy, which are all related to free economic zones.
(3) The terms of office for the commissioned members under paragraph (2) shall be two years and they may be recommissioned only once.
(4) In the event that there occurs any vacancy from among commissioned members, a new member shall be commissioned to fill the vacancy
and his term of office shall be reckoned from the date on which he is commissioned.
Article 24 (Operation of Committee)
(1) The chairman shall represent the Committee and exercise overall control of the Committee s work.
(2) The vice chairman shall assist the chairman and perform the chairman s duties when the chairman is unable to perform his duties
on the grounds of inevitability.
(3) The chairman shall call meetings of the Committee and preside over such meetings.
(4) The chairman shall, when he calls a meeting of the Committee, notify in writing each of the members of the date, place and objectives,
etc. of such meeting by 3 days before the meeting opens: Provided, That the same shall not apply to the case of emergency.
(5) The Committee s meetings shall open with the attendance of a majority of the total members on the register roll and resolve with
the concurrent vote of a majority of those present.
(6) The Committee shall have one secretary charged with administrative affairs and the secretary shall be appointed by the Minister
of Finance and Economy from among public officials belonging to the Free Economic Zone Planning Group.
Article 25 (Hearing of Opinions)
(1) The head of any central administrative agency, who is not an ex officio member, may, if necessary, attend any meeting of the Committee
to state his opinion.
(2) The Committee may, if it is deemed necessary for deliberation, get the Mayor/Do governor having jurisdiction over the relevant
free economic zone and any other interested person to appear at the meeting of the Committee to hear his opinion.
(3) The Mayor/Do governor may attend the meeting of the Committee to state his opinion on the designation and operation, etc. of the
free economic zone.
Article 26 (Allowances)
Members and relevant experts who are present at any meeting of the Committee may be paid allowances within limits of budget: Provided,
That the same shall not apply to the case of public officials who are present at any meeting of the Committee in direct connection
with their official business.
Article 27 (Work of Free Economic Zone Planning Group)
(1) The Minister of Finance and Economy may, if it is deemed necessary to perform the work of the Free Economic Zone Planning Group,
ask administrative agencies, institutions and organizations, which are all concerned with the free economic zones, to second their
public officials and their officers and employees to the Free Economic Zone Planning Group.
(2) The term other matters prescribed by the Presidential Decree in Article 26 (2) 6 of the Act shall mean matters falling under
each of the following subparagraphs:
1.Working-level consultations with the City/Do about the operation of free economic zones;
2.Consultations with ministries concerned about ways to build a system by which the management of free economic zones and living conditions
therein are improved;
3.Consultations with ministries about foreign investments in free economic zones and ways to break bottlenecks therein; and
4.Other matters necessary to assist the Committee effectively.
Article 28 (Administrative Body in Each of Free Economic Zones)
(1) The administrative body provided for in Article 27 (2) of the Act shall perform administrative affairs delegated by the State,
administrative affairs delegated by the City/Do having jurisdiction over the relevant free economic zone and administrative affairs
provided for in Article 27 (1) of the Act in accordance with the Municipal Ordinance and the Municipal Rule.
(2) The Mayor/Do governor shall, when he intends to establish the administrative body referred to in paragraph (1), determine the
time for establishing such administrative body taking into account the development level of the relevant free economic zone, the
demand for administration affairs accruing in the relevant free economic zone and the number of permanent residents in the relevant
free economic zone, etc.
(3) The head of administrative body may demand the related administrative agency and related institutions and organizations to dispatch
the public officials or officers and staff members, in case where it is necessary for the development business of free economic zones.
<Newly Inserted by Presidential Decree No. 18816, Apr. 28, 2005>
Article 28-2 (Entrustment, etc. of Appointment Rights)
(1) The Mayor/Do governor shall delegate the authority falling under each of the following subparagraphs to the head of administrative
body under Article 27-3 (1) of the Act:
1.Transfer rights on the public officials of general services belonging to administrative bodies; and
2.Appointment rights on the public officials of technical and contractual services belonging to administrative bodies: Provided, That
it shall be limited to the transfer rights to the head of administrative body to be established under the latter part of Article
27 (2) of the Act.
(2) The head of administrative body to be established under the latter part of Article 27 (2) of the Act may recommend the candidates
for appointment to the public officials of technical and contractual services belonging to administrative bodies to the Mayor/Do
governor.
(3)The Mayor/Do governor shall hear the opinions of the head of administrative body before transferring or dispatching the public
officials of general services belonging thereto to the administrative body.
[This Article Newly Inserted by Presidential Decree No. 18816, Apr. 28, 2005]
Article 29 (Capability, etc. of Ombudsman)
(1) Every ombudsman provided for in Article 28 (1) of the Act shall be commissioned by the Mayor/Do governor from among persons who
have profound experience in the business of foreign investment and are well versed in foreign languages.
(2) The term of office for every ombudsman shall be three years, and he may be reappointed.
(3) Every ombudsman shall perform the task falling under each of the following subparagraphs:
1.The task of helping break bottlenecks that foreigners and located foreign-invested enterprises face;
2.The task of gathering information on bottlenecks involving the business management of located foreign-invested enterprises;
3.The task of gathering information on bottlenecks involving the living conditions foreigners in the relevant free economic zone;
and
4.The task of coming up with ways to improve problems referred to in subparagraphs 2 and 3, and proposing administrative agencies
concerned for implementing such ways.
(4) Every ombudsman may ask administrative agencies concerned or organizations concerned to cooperate with him in performing the task
referred to in paragraph (3) and in this case, the administrative agencies concerned and the organizations concerned shall, upon
receiving the request, notify the ombudsman of their opinions within 7 days from the date of the request.
(5) Every ombudsman shall cooperate closely with foreign-investment ombudsmen provided for in Article 15-2 of the Foreign Investment
Promotion Act to effectively break bottlenecks that located foreign-invested enterprises face. <Amended by Presidential Decree
No. 18816, Apr. 28, 2005>
(6) Every ombudsman shall analyze quarterly his record of breaking bottlenecks and report the results to the Committee within one
month after the completion of relevant quarter.
Article 30 (Inaccessible Types of Business)
(1) The term type of business and facility prescribed by the Presidential Decree in Article 29 (1) of the Act means the type of
business and facility falling under any of the following subparagraphs:
1.The type of business or the facility that undermines comfortable residental environment;
2.The type of business or the facility that is harmful to air, soil and marine environment;
3.The type of business or the facility that may impede the inducement of foreign investments by harming corporate environment or living
conditions; and
4.The type of business of the facility that is judged to be significantly low in its contribution to the development of the national
economy through technology transfer or job creation, etc.
(2) The Minister of Finance and Economy may, if he orders the relevant enterprise to suspend its business or the relevant facility
shut down in accordance with Article 29 (2) of the Act, arrange any industrial complex as the alternative location for the type of
business or facility which can be located in such industrial complex, after consulting with the authorized manager or the management
institution of such industrial complex provided for in Article 30 of the Industrial Cluster Development and Factory Establishment
Act. <Amended by Presidential Decree No. 18816, Apr. 28, 2005>
Article 31 (Delegation of Authority)
The heads of central administrative agencies shall delegate their authority falling under each of the following subparagraphs to the
Mayor/Do governor in accordance with Article 30 of the Act: <Amended by Presidential Decree No. 18816, Apr. 28, 2005>
1.The extension of the time limit for commencing the development project under the proviso of Article 12 (1) of the Act;
2.The inspection of work completion and permission for use of lands, etc. before the inspection of work completion under the proviso
of Article 14 (3) of the Act provided for in Article 14 (1) of the Act;
3.Deleted; <by Presidential Decree No. 18816, Apr. 28, 2005>
4.The registration of any foreigner-only pharmacy provided for in Article 23 (2) of the Act; and
5.The business suspension of any inaccessible type of business, etc. or the order given to shut down any facility under Article 29
(2) of the Act, the hearing provided for in paragraph (3) of the same Article and the vicarious execution provided for in paragraph
(4) of the same Article.
Article 32 (Fine for Negligence)
(1) The Korean Broadcasting Commission shall, when it imposes any fine for negligence in accordance with the provisions of Article
35 (1) and (2) of the Act, notify any person subject to the deposition of fine for negligence of the payment of the fine for negligence,
explicitly indicating in writing the kind of the act of violation, the amount of the fine for negligence and the payment time limit,
etc. after checking and confirming the relevant act of violation.
(2) The Korean Broadcasting Commission shall, when it intends to impose any fine for negligence referred to in paragraph (1), give
any person subject to the disposition of fine for negligence an opportunity to state his opinion, orally or in writing during the
prescribed period of not less than 10 days. In this case, when he fails to state his opinion by the fixed date, he shall be deemed
to have no opinion to state.
(3)The Korean Broadcasting Commission shall, when it determines the amount of any fine for negligence, take into consideration the
motives of the relevant act of violation and the consequences, etc. thereof.
ADDENDA
(1) (Enforcement Date) This Decree shall enter into force on July 1, 2003.
(2) Deleted. <by Presidential Decree No. 18816, Apr. 28, 2005>
ADDENDA <Presidential Decree No. 18548, Sep. 17, 2004>
Article 1 (Enforcement Date)
This Decree shall enter into force on the date of its promulgation. (Proviso Omitted.)
Articles 2 through 7 Omitted.
ADDENDA <Presidential Decree No. 18816, Apr. 28, 2005>
(1) (Enforcement Date) This Decree shall enter into force on the date of its promulgation.
(2) (Transitional Measures concerning Restriction on Acts within Districts of Development Business) A person who has undertaken the
acts under the amended provisions of Article 8-2 (1) of the amended Act by already obtaining a permission or authorization (including
the cases where it is not necessary to obtain a permission or authorization under the related acts and subordinate statutes) under
the related acts and subordinate statutes at the time of enforcement of the amended Act, under Article 4 (2) of the Addenda of Act
No. 7349; the amended Act from among the Act on Designation and Management of Free Economic Zones (hereinafter referred to as the
amended Act ) shall file a report with the competent Mayor/Do governor on the plans for relevant acts and the situations of progress
within three months from the date of enforcing this Decree.
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