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ENFORCEMENT DECREE OF THE NATIONAL RESEARCH FOUNDATION OF KOREA ACT

[Enforcement: Jun. 26, 2009] [Presidential Decree No. 21551, Jun. 25, 2009, Enactment] Ministry of Education, Science and Technology (Regulation Reform Legal Division) 02- 2100-6160

Article 1 (Purpose)

The purpose of this Decree is to prescribe the matters delegated by the National Research Foundation of Korea Act and matters required for the enforcement thereof. Article 2 (Registration of Establishment)

(1) The National Research Foundation of Korea (hereinafter referred to as the "Foundation") under Article 2 of the National Research Foundation of Korea Act (hereinafter referred to as the "Act") shall register its establishment at the location of its main office within three weeks from the date of obtaining authorization on its articles of association.

(2) Matters to be registered under paragraph (1) shall include each of the following subparagraphs:

1. Purpose;

2. Name;

3. Location of main office;

4. Names and addresses of executives;

5. Total amount of assets; and

6. Method of public notice. (3) In applying for the registration of establishment, the articles of association under Article 4 of the Act shall be attached thereto.

Article 3 (Recommendation of Candidate for Director) (1) The agencies and organizations under Article 6 (3) of the Act shall be those listed in each of the following subparagraphs:

1. The National Academy of Sciences under the National Academy of Sciences Act;

2. The Korean Academy of Science and Technology under Article 11 of the Researches of Basic Sciences Promotion Act;

3. The National Academy of Engineering of Korea under Article 40 of the Industrial Technology Innovation Promotion Act;

4. The National Research Council for Economics, Humanities and Social Sciences under Article 4 of the Act on the Establishment, Operation and Fosterage of Government-Funded Research Institutions;

5. The Korea Research Council of Fundamental Science and Technology under Article 18 of the Act on the Establishment, Operation and Fosterage of Government-Funded Research Institutions in Science and Technology Field;

6. The Academy of Korean Studies under the Academy of Korean Studies Fosterage Act;

7. The Korean Federation of Science and Technology Societies and the Korea Industrial Technology Association under Article 49 of the Enforcement Decree of the Framework Act on Science and Technology; and

8. Other agencies and organizations deemed necessary by the Minister of Education, Science and Technology in relation to science and R&D. (2) The agencies and organizations referred to in paragraph (1) shall, when recommending candidates for directors to the executives recommendation committee under Article 29 of the Act on the Management of Public Institutions (hereinafter referred to as the "executives recommendation committee"), recommend the candidates among persons with sufficient expertise and experience in the concerned field of research. (3) The executives recommendation committee shall, when recommending candidates for directors to the Minister of Education, Science and Technology under Article 26 of the Act on the Management of Public Institutions, specify the agency or organization that recommended the respective candidates.

Article 4 (Payment of Contributions, Etc.)

(1) The Foundation shall, when intending to receive the contributions under Article 11 (1) of the Act, submit a written request for contributions for the next year, attaching data in which the details of request for contributions are specified, to the Minister of Education, Science and Technology by May 31 of every year.

(2) The Minister of Education, Science and Technology shall, upon receiving the written request for contributions, review its contents, and when he/she deems it necessary to pay the contributions, put in the budget the contributions requested by the Foundation. (3) The Minister of Education, Science and Technology shall, when the Government's payment of the contributions is decided, notify the Foundation of the fact. (4) The Foundation shall, upon receiving the notification referred to in paragraph (3), submit to the Minister of Education, Science and Technology the written request for contributions attaching the business plan for each quarter and the budget execution plan. (5) The Foundation shall manage the contributions from the Government through a separate account, and shall execute them only for the uses determined in the quarterly business plan and budget execution plan.

Article 5 (Loan of State and Public Properties on Free Basis, Etc.) (1) The conditions and procedures for the loan, use or benefiting from State and public properties on a free basis under Article 12 (1) of the Act shall be determined by entering a contract between the Foundation and the management authority in charge of the State or public property concerned.

(2) In the cases where the Foundation has used the State or public property which was loaned on a free basis or subjected to use or be benefited under Article 12 (1) of the Act, for purposes other than its original purpose, the management authority of the State or public property may terminate the contract.

(3) For matters not stipulated in the Act or this Decree concerning free loans, use or being benefited from State and public properties, the relevant provisions of the State Properties Act and the Public Properties and Articles Management Act shall apply mutatis mutandis. Article 6 (Submittal of Business Plan, Etc.)

Pursuant to Article 14 of the Act, the Foundation shall submit the business plan and budget which includes the objectives, policies, details of major projects, and required budget, etc. to the Minister of Education, Science and Technology before the commencement of the concerned business year.

Article 7 (Composition and Operation of External Evaluation Committee) (1) The external evaluation committee under Article 15 (3) of the Act (hereinafter referred to as the "external evaluation committee") shall be composed of not more than 11 members including a chairman.

(2) Members of the external evaluation committee shall be commissioned or appointed by the Minister of Education, Science and Technology from the persons falling under each of the following subparagraphs:

1. Persons with sufficient expertise and experience in scientific and R&D projects; and

2. General-category public officials related to the operation of the research business management system under Article 15 (1) of the Act, belonging to the Senior Civil Service Group of the Ministry of Education, Science and Technology. (3) The chairman of the external evaluation committee shall be appointed by the Minister of Education, Science and Technology among the members pertaining to subparagraph 1 of paragraph (2).

(4) The chairman of the external evaluation committee shall represent the committee and exercise overall control of the committee affairs. (5) The term of office for the members commissioned under subparagraph 1 of paragraph (2) shall be two years.

(6) The external evaluation committee shall have a secretary to execute the affairs of the committee, who shall be appointed by the Minister of Education, Science and Technology from Grade III or IV public officials of the Ministry of Education, Science and Technology.

(7) The external evaluation committee may request the Foundation to submit data required for examining the fairness and efficiency in the performances of the research business management experts under Article 15 (3) of the Act. (8) Necessary matters concerning the operation of the external evaluation committee, such as detailed procedures and methods of the evaluation and utilization of the evaluation results, other than those stipulated in paragraphs (1) through (7), shall be prescribed by the Minister of Education, Science and Technology. Article 8 (Submittal of Balance Sheets)

The Foundation shall submit the balance sheets of revenue and expenditures pursuant to Article 16 of the Act, along with the documents in each of the following subparagraphs:

1. Balance sheet and statement of profit and loss for each business year;

2. Comparison list of business plans with the execution results for each business year;

3. Audit report of the certified public accountant or accounting firm; and

4. Minutes of the board of director meeting that resolved the accounts closing of revenues and expenditures.

ADDENDA

Article 1 (Enforcement Date)

This Decree shall enter into force on Jun. 26, 2009. Articles 2 (Abolition of Other Acts)

The Enforcement Decree of the Korea Science Foundation Act shall be abolished. Article 3 (Amendment of Other Laws and Regulations) (1) The Enforcement Decree of the Framework Act on Science and Technology shall be partially amended as hereunder:

The term "Korea Science Foundation established under the Korea Science Foundation Act" in Article 34 shall be amended to "National Research Foundation of Korea established under the National Research Foundation of Korea Act." Subparagraph 1 of Article 47 (1) shall be as follows:

1. The National Research Foundation of Korea established under the National Research Foundation of Korea Act.

(2) Office organization of the Ministry of Education, Science and Education and the agencies under the said Ministry shall be partially amended as hereunder: The term "Korea Science Foundation" in subparagraph 5 of Article 17 (3) shall become "National Research Foundation of Korea," and subparagraph 52 of the same paragraph shall be deleted, and the term "subparagraphs 37 through 72 of paragraph (3)" in paragraph (5) of the same Article shall be "subparagraph 37 through 51, and 53 through 72 of paragraph (3)."

(3) The Enforcement Decree of the Special Act on Supporting Science and Engineering Departments, that is aimed at enhancing the competitiveness of national science and technology, shall be partially amended as hereunder. Subparagraph 5 of Article 28 (4) shall be as follows:

5. National Research Foundation of Korea under the National Research Foundation of Korea Act.

(4) The International Science and Technology Cooperation Rule shall be partially amended as hereunder.

Subparagraph 2 of Article 4 (3) shall be as follows and subparagraph 3 of the same paragraph shall be deleted:

2. National Research Foundation of Korea under the National Research Foundation of Korea Act.

(5) The Enforcement Decree of the Act on Fosterage and Support for Female Scientists and Engineers shall be partially amended as hereunder. Subparagraph 4 of Article 8 (4) shall be as follows:

4. National Research Foundation of Korea under the National Research Foundation of Korea Act.

(6) The Enforcement Decree of the Support of Specific Research Institutions Act shall be partially amended as hereunder.

Subparagraph 7 of Article 3 shall be as follows:

7. National Research Foundation of Korea under the National Research Foundation of Korea Act.

(7) The Enforcement Decree of the Sciences Promotion and Credit Guarantee, Etc. for School Expense Loans Act shall be partially amended as hereunder. Article 17 (3) and 18 shall be deleted.

Chapter VI (Articles 22 through 28) and Chapter VII (Articles 29 through 34, and 34-2) shall be deleted.

(8) The Rule on Delegation and Entrustment of Administrative Authorities shall be partially amended as hereunder:

The term "president of the Korea Sciences Promotion Foundation" in Article 44 (2) shall be "president of the National Research Foundation of Korea." Article 4 (Relations to Other laws and Regulations) In the cases where other laws and regulations have cited the former Enforcement Decree of the Korea Science Foundation Act, and the Enforcement Decree of the Sciences Promotion and Credit Guarantee, Etc. for School Expense Loans Act, or their provisions, and if there are provisions in this Decree pertaining to such provisions, this Decree or the relevant provisions of this Decree is deemed to have been cited in lieu of the former provisions.