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INDUSTRIAL CLUSTER DEVELOPMENT AND FACTORY ESTABLISHMENT ACT

INDUSTRIAL CLUSTER DEVELOPMENT AND FACTORY ESTABLISHMENT ACT


INTRODUCTION

Details of Enactment and Amendment

- Enactment: This Act was enacted on January 13, 1990 as Act No. 4212, repealing the previously enforced Industrial Placement Act and Industrial Complex Management Act, in order to simplify Acts, subordinate statutes and systems related to the complex industrial location and to minimize the overlapping authorization/permission procedures related to the construction of factories.
- Amendment: The title of the Industrial Placement and Factory Construction Act was changed to the Industrial Cluster Development and Factory Establishment Act on December 30, 2002. The latest amendment was made on August 4, 2005.


Main Contents

- In order to allow an easy determination by an enterprise as to whether a factory may be established in a certain area, the business types/sizes/scopes of factories which are permitted to be established at different specific use areas shall be announced systematically, in coordination with the public announcement of industrial site standards.
- Corporations and organizations designated by the Minister of Commerce, Industry and Energy may set up an industrial site center in order to support industrial site related business operations, for example, by disseminating information on the present state of industrial sites domestically and abroad.
- Under the Korea Industrial Complex Corporation, there shall be established the Factory Establishment Support Center which may perform support affairs for the establishment of factories including consultation services on site selection for such establishment, assistance for obtaining various funds therefor, and provision of information pertaining to tax reduction and exemption in order to support the establishment of factories by small and medium enterprises and foreign capital-invested companies.
- Under the Korea Industrial Complex Corporation, there shall be established a factory establishment ombudsman office to receive, investigate and deal with corporate bottlenecks or recommendations related to the establishment of factories as well as to prepare relaxations or improvements of administrative regulation pertaining to such establishment.
- A person who intends to newly construct/enlarge, or alter the business type of, a factory whose building area is at least five hundred square meters shall obtain approval of the head of a Si/Gun/Gu.
- Convenience to the civil petitioners who intend to establish a factory is raised by lumping, at each step, the procedures for approval for establishment of a factory, the related authorization/permission, etc. required for construction of the factory, installation of manufacturing facilities, etc. up until the factory begins to run and allowing them the legal fiction of having been resolved.
- Administrative procedures accompanying the act of securing an industrial site, permission for construction, completion inspection, etc. are minimized by setting up public service centers for establishment of factories at Cities/Dos and Sis/Guns/Gus to provide a one-step service for the various authorization/permission details that are related with establishing a factory.
- The Act prescribes the procedures and standards related with establishment/lot sale and management of apartment-type factories which are for shared use by many enterprises.
- The Minister of Commerce, Industry and Energy may designate an industrial complex exclusively for foreign capital invested companies within an industrial complex in order to facilitate investment within Korea by foreign capital invested companies.




INDUSTRIAL CLUSTER DEVELOPMENT AND FACTORY ESTABLISHMENT ACT

Amended by Act No. 7678, Aug. 4, 2005



CHAPTER I GENERAL PROVISIONS


Article 1 (Purpose)
The purpose of this Act is to contribute to the sound development of the national economy through continued industrial development and balanced regional development, by developing the industrial cluster, supporting the smooth establishment of factories and realizing systematic management of industrial sites and industrial complexes. <Amended by Act No. 5091, Dec. 29, 1995; Act No. 6842, Dec. 30, 2002>

Article 2 (Definitions)
The definitions of terms as used in this Act shall be as follows: <Amended by Act No. 4720, Jan. 7, 1994; Act No. 5091, Dec. 29, 1995; Act No. 5240, Dec. 31, 1996; Act No. 5827, Feb. 8, 1999; Act No. 6842, Dec. 30, 2002>
1.The term factory means a business place for conducting the manufacturing industry as prescribed by the Presidential Decree with manufacturing facilities such as structures, installations, or machinery or equipment forming goods manufacturing process as well as facilities incidental thereto (hereinafter referred to as the manufacturing facilities ), which is prescribed by the Presidential Decree;
2.The term restricted population zone means major cities and their surrounding areas, determined by the Presidential Decree, where the concentration of industry and the rate of population increase is so high that it is necessary to prompt the relocation of and restrict the new establishment or expansion of the factories;
3.The term growth administration zone means zones, determined by the Presidential Decree, for which permission for the establishment of and increase in factories within certain limits is necessary in order to ensure the effective control of the high concentration of industry and population increase;
4.The term environmental protection zone means the zones where restraints on the establishment and increase in factories is necessary for the protection of the natural environment, including water quality and the green belt within the Han River water system;
5.The term promotional zone means areas designated and proclaimed under Article 23 for the purpose of establishing industrial complexes in accordance with the requirements of national policies for, inter alia, the facilitation of factory transfer to local areas, etc.;
5-2.The term industrial cluster means forming an aggregate that generates synergy effects through mutual links among companies, research institutes, universities and corporate-supporting facilities which are all concentrated in a certain zone;
5-3.The term knowledge-based industrial cluster zone means the zone that is designated and published in accordance with Article 22 for the purpose of expediting the cluster of the knowledge-based industry;
5-4.The term knowledge-based industry means the industry that is prescribed by the Presidential Decree as having a high level of intensive knowledge;
5-5.The term industrial cluster infrastructure means establishments or facilities such as research and development institutes, corporate-supporting facilities, establishments for educating and training technical manpower, etc. which are all designed to develop the industrial cluster;
5-6.The term industrial infrastructure means basic facilities such as water supply facilities, traffic and communications facilities, energy facilities and distribution facilities, etc. which are all necessary for companies to carry out their production activities;
5-7.The term project for upgrading the structure of industrial complexes means the project undertaken by any management agency for the purpose of expediting the attraction of companies, etc. and boosting the competitiveness of located companies through the expansion of the information infrastructure and the industrial cluster infrastructure, etc. in industrial complexes;
6.The term apartment-type factory means the collective multi-story building, prescribed by the Presidential Decree, which can house several factories at the same time;
7.The term industrial complex means any national industrial complex, general local industrial complex, urban high-tech industrial complex, and agricultural and industrial complex which are all designated and developed in accordance with Articles 6, 7, 7-2 and 8 of the Industrial Sites and Development Act;
8.The term management of industrial complex means affairs which fall under each of the following items, which are prescribed by the Presidential Decree:
(a)Sale, lease, and ex post facto management of sites and facilities in the industrial complex;
(b)Installation, maintenance, repair and improvement of infrastructure facilities as prescribed by the Presidential Decree in the industrial complex; and
(c)Assistance in business activities of the occupant enterprises and supporting agencies;
9.The term authorized administrator means the person with administrative authority in the industrial complex, as prescribed by subparagraphs of Article 30 (1);
10.The term administrative agency means the agency which manages the administrative affairs of the industrial complex as prescribed by subparagraphs of Article 30 (2);
11.The term occupant enterprise means an enterprise which is part of an industrial complex, and among those desiring to operate a business belonging to the manufacturing industry, knowledge industry, information and communication industry, resource conservation industry, or any other industry determined by the Presidential Decree, is qualified in accordance with the Presidential Decree, and has concluded a contract of occupancy pursuant to Article 38 (1) or (3);
12.The term supporting agency means the agency which, among those wishing to manage the financial, insurance, medical, educational and other businesses prescribed by the Presidential Decree which are necessary for the purpose of occupying a part of industrial complex and supporting the occupant enterprises, is qualified pursuant to the Presidential Decree, and has concluded a contract of occupancy pursuant to Article 38 (3);
13.The term establishment of factory means newly establishing or enlarging a factory;
14.The term new establishment of factory means newly constructing structures (including setting up installations) or installing manufacturing facilities after converting the use of existing structures into that of a factory; and
15.The term expansion of factory means expanding the construction area or the site area of a factory registered under Article 16 (1).

Article 3 (Basic Program for Developing Industrial Cluster)
(1) The Minister of Commerce, Industry and Energy shall map out and publish the basic program for developing the industrial cluster (hereinafter referred to as the basic program for developing the industrial cluster ), covering the entire national land, every five years. the same shall apply to a case where he alters such basic program.
(2) The basic program for developing the industrial cluster shall contain the matters falling under each of the following subparagraphs:
1.Matters concerning the cluster and specialization of industries with high growth potential by region that are prescribed by the Presidential Decree and ways to facilitate their links;
2.Matters concerning industrial sites and the supply and demand of manpower that are necessary to expedite the industrial cluster by region;
3.Matters concerning the expansion of the industrial cluster infrastructure;
4.Matters concerning assistance in any region whose industries remain backward or inactive; and
5.Other matters concerning the industrial cluster and the development of regional industries.
(3) The Minister of Commerce, Industry and Energy shall, when he intends to map out or alter the basic program for developing the industrial cluster, hear the opinion of the Special Metropolitan City Mayor, the Metropolitan City Mayor or the Do governor (hereinafter referred to as the Mayor/Do governor ) and go through a deliberation thereon by the Industrial Cluster Policy Council established under Article 5 after consulting with the Minister of Construction and Transportation and the heads of central administration agencies concerned thereabout: Provided, That the same shall not apply to a case where he alters any insignificant matter prescribed by the Presidential Decree.
(4) The Minister of Commerce, Industry and Energy shall, when he intends to map out or alter the basic program for developing the industrial cluster, make such program compatible with the plan falling under each of the following subparagraphs:
1.The comprehensive plan for the national land provided for in Article 6 (2) of the Framework Act on the National Land;
2.The urban planning provided for in subparagraph 2 of Article 2 of the Act on the National Land Planning and Utilization;
3.The Seoul metropolitan area readjustment planning provided for in subparagraph 2 of Article 2 of the Seoul Metropolitan Area Readjustment Planning Act; and
4.The industrial sites supply plan provided for in Article 5-2 of the Industrial Sites and Development Act.
(5) The head of any central administrative agency shall, when he intends to undertake or promote a project related to the industrial development, make such project compatible with the basic program for developing the industrial cluster.
[This Article Wholly Amended by Act No. 6842, Dec. 30, 2003]

Article 3-2 (Formulation, etc. of Program for Developing Regional Industries)
(1) The Mayor/Do governor may map out a program for developing regional industries for developing the regional industry including the industrial cluster in his jurisdictional region every five years. In this case, such program shall be made compatible with the basic program for developing the industrial cluster.
(2) The Minister of Commerce, Industry and Energy may provide assistance needed to develop regional industries such as the industrial cluster.
[This Article Newly Inserted by Act No. 6842, Dec. 30, 2003]

Article 4 (Succession of Effectiveness of Acts)
Procedures and other actions under this Act shall be effective as against the successor to the possessor, occupant or any other interested person of the factory concerned.



CHAPTER II INDUSTRIAL SITES


Article 5 (Industrial Cluster Policy Council)
(1) The Industrial Cluster Policy Council (hereinafter referred to as the Council ) shall be established under the Ministry of Commerce, Industry and Energy with the mandate to deliberate on important matters concerning the policy of administering the industrial cluster and industrial complexes. <Amended by Act No. 6842, Dec. 30, 2003>
(2) Matters necessary for the function, composition and operation, etc. of the Council shall be determined by the Presidential Decree.

Article 6 (Survey of Industrial Sites)
(1) The Minister of Commerce, Industry and Energy may, in accordance with the Presidential Decree, make necessary surveys concerning industrial sites, etc. (hereinafter referred to as site surveys ) with respect to the following matters: <Amended by Act No. 4541, Mar. 6, 1993; Act No. 5091, Dec. 29, 1995; Act No. 5827, Feb. 8, 1999; Act No. 6842, Dec. 30, 2003>
1.Formulation of the basic program for developing the industrial cluster;
2.Proper operation of industrial sites;
3.Institution of standards for factory sites;
4.Formulation of management guidelines for industrial complexes; and
5.Other basic matters concerning industrial sites.
(2) The Minister of Commerce, Industry and Energy may, if deemed necessary for carrying out site surveys under paragraph (1), request the cooperation of the Mayor/Do governor and the heads of related business organizations such as Korea Industrial Complex Corporation under Article 45-3 (hereinafter referred to as Corporation ), chambers of commerce and industry, Korea Chamber of Commerce and Industry under the Chambers of Commerce and Industry Act and Korea Federation of Small and Medium Business Enterprise Cooperatives Federation. <Amended by Act No. 4541, Mar 6, 1993; Act No. 5091, Dec. 29, 1995; Act No. 5827, Feb. 8, 1999; Act No. 6842, Dec. 30, 2002>
(3) If the Mayor/Do governor and the heads of business organizations concerned receive such request for cooperation as prescribed in paragraph (2), they shall comply with the said request unless there is any justifiable reason. <Newly Inserted by Act No. 5827, Feb. 8, 1999>

Article 6-2 (Establishment and Operation of Information Networks)
(1) The Minister of Commerce, Industry and Energy may establish and operate an information network (including the information network for administering the factory establishment; hereinafter the same shall apply) in conjunction with the head of the central administrative agency or local government concerned, for the purpose of facilitating the smooth supply of information regarding factory construction, etc., and the swift collection and analysis of information necessary for policies concerning industrial cluster and factory construction. <Amended by Act No. 5827, Feb. 8, 1999; Act No. 6842, Dec. 30, 2003>
(2) Persons who establish and operate information networks under paragraph (1) may require the head of the agency concerned, such as the competent central administrative agency, local government, government invested institution, or government-contributed institution, etc., to furnish such materials and information as is necessary. In this case, the head of the agency required to furnish material or information shall, in the absence of any justifiable grounds, comply with the demand.
(3) Persons who establish and operate information networks under paragraph (1) may entrust its operation to the agency or association prescribed by the Presidential Decree.
(4) Matters necessary in respect of the operation of information networks under paragraph (1) shall be determined by the Presidential Decree.
[This Article Newly Inserted by Act No. 5091, Dec. 29, 1995]

Article 7 (Establishment, etc. of Industrial Site Center)
(1) Corporations and organizations designated by the Minister of Commerce, Industry and Energy may set up an industrial site center to disseminate information on the present state of industrial sites at home and abroad, and to assist efficiently companies with their business operations related to the industrial site.
(2) Deleted. <by Act No. 6842, Dec. 30, 2003>
(3) Matters concerning standards for designating the corporations and organizations referred to in paragraph (1) and setting up, operation and control of the industrial site center referred to in paragraph (1) shall be prescribed by the Presidential Decree. <Amended by Act No. 6842, Dec. 30, 2003>
(4) In the event that any corporation or organization that is designated by the Minister of Commerce, Industry and Energy under paragraph (1) fails to begin setting up its industrial site center within one month from the date of designation without any justifiable grounds or is difficult to continue its work on the grounds of its dissolution or for other reasons, the Minister of Commerce, Industry and Energy may revoke his designation. <Newly Inserted by Act No. 6842, Dec. 30, 2003>
[This Article Wholly Amended by Act No. 5827, Feb. 8, 1999]

Article 7-2 (Setup, etc. of Center for Supporting Factory Establishment)
(1) A center for supporting factory establishment shall be set up in every industrial complex to render consultant services on site selection for factory establishment, help gain access to various funds, provide information pertaining to tax reduction and exemption, operate an information network for factory establishment and management, deal with affairs involving factory establishment or act as an agent in dealing with such affairs and perform support affairs for factory establishment.
(2) Any person who intends to establish a factory may commission the head of the center for supporting factory establishment set up under paragraph (1) (hereinafter referred to as the support center ) to perform vicariously the business of establishing his factory such as preparation and submission of documents related to establish his factory.
(3) The head of the support center who is commissioned to perform vicariously the business of establishing a factory shall transfer the documents to the head of the agency in charge of dealing with administrative affairs involving factory establishment.
(4) The head of the agency in charge of dealing with administrative affairs involving factory establishment shall, when he receives the documents transferred for factory establishment under paragraph (3), consult without delay with the head of the agency concerned thereabout, and the head of the agency concerned shall, upon receiving a request for consultation, put forth his opinion within 10 days. In this case, the head of the agency concerned shall, when he intends to disagree, specify the reasons therefor and if he fails to put forth his opinion with 10 days from the date of receipt, he shall be deemed to have no opinion.
(5) Necessary matters concerning the composition, operation, etc. of the support center shall be prescribed by the Presidential Decree.
[This Article Newly Inserted by Act No. 6842, Dec. 30, 2003]

Article 7-3 (Ombudsman Office for Factory Establishment, etc.)
(1) An ombudsman office shall be established in every industrial complex to receive, check and deal with corporate bottlenecks or recommendations involving factory establishment, devise ways to relax or streamline administrative regulations on factory establishment, work out ways to improve the system by which factories are established and propose the implementation of such ways by the administrative agencies concerned.
(2) The head of ombudsman office for factory establishment established under paragraph (1) (hereinafter referred to as the ombudsman office for factory establishment ) shall perform his duty of dealing with bottlenecks, etc. involving factory establishment and may ask the administrative agencies concerned or other agencies to cooperate with him. In this case, such administrative agencies concerned and other agencies concerned shall, upon receiving a request for cooperation, put forth their opinions within 10 days.
(3) Necessary matters concerning the composition, operation, etc. of the ombudsman office for factory establishment shall be prescribed by the Presidential Decree.
[This Article Newly Inserted by Act No. 6842, Dec. 30, 2003]

Article 8 (Standards for Factory Sites)
The Minister of Commerce, Industry and Energy shall, in consultation with the heads of central administrative agencies concerned, set standards for factory sites (hereinafter referred to as the site standards ) with respect to matters falling under each of the following subparagraphs and make them known to the public. The same shall be applied to a case where the standards are altered: <Amended by Act No. 6842, Dec. 30, 2003>
1.Matters related to the business type, size and scope of a factory which are allowed or restricted according to the area designated for special utilization under the National Land Planning and Utilization Act, and the Acts and subordinate statutes prescribed by the Presidential Decree;
2.Matters related to the ratio (hereinafter referred to as the standard factory area ratio ) of the area of factory structures, etc. (hereinafter referred to as the factory structures, etc. ) as prescribed by the Presidential Decree to the area of factory site by the manufacturing business type and the object of its application;
3.Matters related to the prevention of environmental pollution by the manufacturing business type; and
4.Matters related to restrictions on factory sites which may cause environmental pollution.
[This Article Wholly Amended by Act No. 5827, Feb. 8, 1999]

Article 9 (Confirmation of Standards for Factory Sites, etc.)
(1) The head of Si/Gun/Gu (referring to the head of autonomous Gu; hereinafter the same shall apply) shall, upon receiving application from a landowner or interested person, confirm and notify within 10 days from the date of receipt the landowner or interested person of the possibility of the establishment of factories in respect of the land located within the area of jurisdiction, according to lot number. <Amended by Act No. 6842, Dec. 30, 2003>
(2) The head of Si/Gun/Gu may publish matters such as areas in which factories are permitted to be established and the business types of factories which are permitted to be established in the areas that are each prescribed by the Ordinance of Ministry of Commerce, Industry and Energy in the public bulletin by the end of February each year. The same shall apply to a case where the head of Si/Gun/Gu alters the published matters. <Amended by Act No. 6842, Dec. 30, 2003>
[This Article Newly Inserted by Act No. 5240, Dec. 31, 1996]

Article 10 (Succession to Rights and Duties)
(1) The person to whom the factory has been transferred from the person who received approval under Article 13 (1) shall succeed to all rights and duties regarding the factory. <Amended by Act No. 5091, Dec. 29, 1995>
(2) Where a person or juristic person succeeds to or merges with the factory of a person who received approval under Article 13 (1), the successor or juristic person which continues to exist after merger or which is created by merger, shall succeed to all rights and duties in respect of the factory. <Amended by Act No. 5091, Dec. 29, 1995>

Article 11 (Application of Standard Factory Area Ratio)
(1) The area of factory structures, etc. which is subject to the application of the standard factory area ratio that is made known to the public under subparagraph 2 of Article 8, shall be conformed to the area which is calculated on the basis of the standard factory area ratio (hereinafter referred to as the standard factory construction area ): Provided, That the same shall not apply to areas where the construction of factory is restricted by other Acts or to sites prescribed by the Presidential Decree.
(2) If the head of Si/Gun/Gu, or the heads of administrative agencies find the area of factory structures, etc. falling short of the standard factory construction area as prescribed in paragraph (1) after receiving a notice from a builder that the establishment, etc. of a factory is completed under the provisions of Article 15, they may urge the builder to conform the area in question to the standard factory construction area.
(3) The area of factory structures, etc. as prescribed in paragraph (1) shall include the scheduled portion from the date the establishment, etc. of a factory is approved to that as prescribed by the Presidential Decree.
(4) The calculation methods of the standard factory construction area referred to in paragraph (1) shall be stipulated by the Presidential Decree.
[This Article Wholly Amended by Act No. 5827, Feb. 8, 1999]

Article 12 Deleted.
<by Act No. 5827, Feb. 8, 1999>



CHAPTER III ESTABLISHMENT OF FACTORIES


Article 13 (Approval of Establishment, etc. of Factory)
(1) A person, who intends to newly build or enlarge or to alter the business type of a factory on the area of not less than five hundred square meters or to alter the business type (hereinafter referred to as the establishment, etc. of a factory ), shall obtain the approval of the head of Si/Gun/Gu pursuant to the Presidential Decree. The same shall apply to a case where he intends to alter the approved matters: Provided, That if he intends to alter any insignificant matter prescribed by the Ordinance of the Ministry of Commerce, Industry and Energy from among the approved matters, he sill make a report thereon to the head of Si/Gun/Gu. <Amended by Act No. 6842, Dec. 30, 2003>
(2) In a case falling under each of the following subparagraphs, it shall be deemed that the establishment of factory is approved under paragraph (1): <Amended by Act No. 6842, Dec. 30, 2003>
1.A case where approval is obtained under Article 20 (2);
2.A case where an occupation contract and an alteration contract is concluded under the main sentence of Article 38 (1) and (2); and
3.A case where permission, authorization and license of the establishment of the factory in question are obtained under other Acts prescribed by the Presidential Decree.
(3) A person, who intends to be granted the legal fiction of a permission, report, licence, approval, cancellation or disuse under Article 13-2 even if his factory construction area falls short of the five hundred square meters, may obtain an approval of establishment, etc. of a factory under paragraph (1) of this Article.
(4) The head of Si/Gun/Gu and the administrative agencies shall keep factory establishment ledgers, enter necessary matters in them and manage them.
[This Article Wholly Amended by Act No. 5827, Feb. 8, 1999]

Article 13-2 (Legal Fiction of Authorization and Permission, etc.)
(1) In giving an approval of the establishment, etc. of a factory under Article 13 (1), a permission, report, license, approval, cancellation or disuse (hereinafter referred to as the authorization and permission, etc. ) falling under each of the following subparagraphs in relation to the relevant factory and access road sites, about which the head of Si/Gun/Gu concerned has consulted with the heads of administrative agencies concerned under the main sentence of paragraph (5) (including a case where the consultation is omitted under the proviso of paragraph (5)), shall be deemed to have already been authorized and permitted: <Amended by Act Nos. 6841 & 6842, Dec. 30, 2003; Act No. 7678, Aug. 4, 2005>
1.Permission to convert farmland under Article 36 (1) of the Farmland Act, report on the conversion of farmland under Articles 37 (1) and 45 of the same Act and approval for the alteration of use under Article 42 (1) of the same Act;
2.Permission for and report on the conversion of mountainous districts under Article 14 and 15 of the Management of Mountainous Districts Act, approval for the alteration of use of the land converted into mountainous district under Article 21 of the same Act and permission for and report on deforestation under Article 90 (1) of the Forestry Act;
2.Permission for and report on the conversion of mountainous districts under Article 14 and 15 of the Management of Mountainous Districts Act, approval for the alteration of use of the land converted into mountainous district under Article 21 of the same Act and permission for and report on deforestation under Article 36 (1) and (4) of the Creation and Management of Forest Resources Act; Enforcement Date: Aug. 5, 2006
3. Permission to convert grassland under Article 23 (1) of the Grassland Act;
4.Permission to deforest bamboos, etc. in erosion-control areas under the main sentence of Article 14 (1) of the Work against Land Erosion or Collapse Act, and cancellation of the designation of erosion-control areas under Article 20 (1) of the same Act;
5.Permission for act of development (limited to changing the form and quality of land or dividing land) under Article 56 (1) of the National Land Planning and Utilization Act, designation of the undertaker of an urban planning facility project under Article 86 of the same Act, authorization for implementation program under Article 88 of the same Act and permission for land transaction contract under Article 118 of the same Act;
6.Permission to undertake river-related works under the main sentence of Article 30 (1) of the River Act and permission to occupy and use rivers under each subparagraph of Article 33 (1) of the same Act;
7.Permission for occupying and using public waters under each subparagraph of Article 5 (1) of the Public Waters Management Act, and authorization of or report on implementation program under Article 8 of the same Act;
8.Permission for reburying graves under Article 23 (1) of the Funeral Services, etc. Act;
9.Permission to open private roads, etc. under Article 4 of the Private Road Act;
10.Permission to occupy and use roads under Article 40 (1) of the Road Act;
11.License for reclaiming tidal flats in public waters under Article 9 (1) of the Public Water Surface Reclamation Act;
12.Approval for using the facilities of agricultural infrastructure for other purposes under the main sentence of Article 20 (1) of the Rearrangement of Agricultural and Fishing Villages Act;
13.Permission to use state-owned properties and making profits from using them under Article 24 of the State Properties Act, and disuse of roads, rivers, ditches and banks under Article 30 (1) of the same Act;
14.Permission to use administrative properties and preservation properties and making profits from using them under the proviso of Article 82 (1) of the Local Finance Act, and disuse of administrative properties and preservation properties under Article 82 (5) of the same Act;
15.Deleted; and <by Act No. 6842, Dec. 30, 2003>
16.Permission to construct under Article 8 (1) of the Building Act, report on construction under Article 9 (1) of the same Act, permission or report to construct temporary structures under Article 15 (1) and (2) of the same Act and report on the setup of installations under Article 72 (1) of the same Act.
(2) In granting permission to open private roads under Article 4 of the Private Road Act to a person who has obtained approval for the establishment, etc. of a factory under Article 13 (1) of this Act (excluding a person who has obtained the legal fiction of permission to open private roads, etc. when the establishment of his factory has been approved under paragraph (1) 9 of this Article), the authorization and permission prescribed by each subparagraph of paragraph (1) of this Article (excluding subparagraph 9) in relation to factory and access road sites, about which the head of Si/Gun/Gu has consulted with heads of administrative agencies concerned under paragraph (5) of this Article, shall be deemed to have been authorized and permitted.
(3) In giving approval for the establishment, etc. of a factory under Article 13 (1), a permission and report falling under each of the following subparagraphs in relation to the intended business of the factory concerned, about which the head of Si/Gun/Gu has consulted with heads of administrative agencies concerned under paragraph (5) of this Article, shall be deemed to have already been granted and made:
1.Conditional permission to do the slaughter business and the livestock processing business as prescribed in Article 23 (1) of the Processing of Livestock Products Act;
2.Permission to manufacture gas apparatus as prescribed in Article 3 of the Safety Control and Business Regulation of Liquefied Petroleum Gas Act;
3. Permission to manufacture high-pressure gas as prescribed in Article 4 of the High-Pressure Gas Safety Control Act, registration for manufacturing gas containers as prescribed in Article 5 of the same Act and report on the use of specific high-pressure gas as prescribed in Article 20 of the same Act; and
4.Conditional permission to bottle drinking water as prescribed in Article 20 (1) of the Management of Drinking Water Act.
(4) A person, who intends to obtain the authorization and permission, etc. or the legal fiction of permission and report under paragraphs (1) through (3) of this Article (including a person, who intends to obtain permission to construct or the legal fiction of construction report under paragraph (1) 16 of this Article as well as the legal fiction of permission, etc. falling under each subparagraph of Article 14 (1)), shall submit related documents as prescribed by the Ordinance of the Ministry of Commerce, Industry and Energy when he makes a request for approving the establishment, etc. of a factory: Provided, That the related documents prescribed by the Ordinance of the Ministry of Commerce, Industry and Energy may be submitted when a request for construction permission is made pursuant to the provisions of Article 14 (or when the work starts in case where permission for construction or the legal fiction of construction report is sought under paragraph (1) 16).
(5) In giving approval for the establishment, etc. of a factory under paragraph (2) of this Article or in giving permission to open private roads under the provisions of Article 4 of the Private Road Act, if there exist matters which fall under each subparagraph of paragraphs (1) and (3) of this Article, the head of Si/Gun/Gu shall consult with the heads of administrative agencies concerned: Provided, That the same shall not be applied to a case where the head of Si/Gun/Gu gives the approval on the basis of the widely-publicized standards under Article 13-4 (2).
(6) When the head of Si/Gun/Gu approves the establishment, etc. of a factory pursuant to the provisions of the proviso of paragraph (5), he shall notify heads of administrative agencies concerned of contents of the approval.
(7) and (8) Deleted. <by Act No. 6842, Dec. 30, 2003>
[This Article Newly Inserted by Act No. 5827, Feb. 8, 1999]



Article 13-3 (Special Cases for Approval of Establishment, etc. of Factory)
(1) In case that it is inevitably necessary to link non-road ways (meaning the roads prescribed in Article 2 of the Road Act and semi-roads prescribed in Article 10 of the same Act) to a factory and the linking is in conformity with the standards as prescribed by the Presidential Decree, the head of Si/Gun/Gu shall permit opening private roads notwithstanding the provisions of Articles 2 and 4 of the Private Road Act.
(2) Any person, who has obtained approval for the establishment, etc. of his factory in an area or a district designated for special utilization under Article 13 at the time of deciding and announcing the plans for the urban management with respect to the designation of area and district designated for special utilization under the National Land Planning and Utilization Act may continue his construction work and business without being hampered even if the designation or the alteration of the area or the district takes place. In this case, an official, who is vested with the right to give the authorization and permission under relevant Acts and subordinate statutes, may give the authorization and permission necessary for the establishment of the factory. <Amended by Act No. 6842, Dec. 30, 2002>
(3) In case that the head of Si/Gun/Gu revokes the approval for business plan or the permission to construct a factory under the provisions of Article 24 of the Support for Small and Medium Enterprise Establishment Act against a person who has obtained permission for his business plan under the provisions of Article 21 of the same Act, he may not order the person to restore the land to the original state and give approval for the establishment, etc. of a factory on the same land to the relevant founder or a third person as prescribed by the Presidential Decree notwithstanding the provisions of Article 24 of the same Act. <Amended by Act No. 6194, Jan. 21, 2000>
[This Article Newly Inserted by Act No. 5827, Feb. 8, 1999]

Article 13-4 (Public Notice of Criteria for Dealing with Factory Establishment Affairs)
(1) A head of an administrative agency, who is vested with the right to give the authorization and permission under the provisions of each subparagraph of Article 13-2 (2), shall set criteria for dealing with the authorization and permission, etc. and notify the Minister of Commerce, Industry and Energy of them. The same shall be applied to a case where the alteration of the criteria takes place.
(2) The Minister of Commerce, Industry and Energy, upon receiving the criteria from each administrative agency under paragraph (1), shall compile them and put them on public notice. The same shall be applied to a case where the criteria are altered.
[This Article Newly Inserted by Act No. 5827, Feb. 8, 1999]

Article 13-5 (Revocation of Approval for Establishment, etc. of Factory)
(1) The head of Si/Gun/Gu may revoke the approval for the establishment, etc. of the factory concerned and order the restoration of the land in question to its original state, where it is recognized that the person who has received approval for the establishment, etc. of the factory has difficulties in carrying on the business due to such reasons as are prescribed by the Presidential Decree. In this case, the provisions of Article 44 of the Farmland Act and Article 39 of the Management of Mountainous Districts Act shall apply mutatis mutandis to matters concerning the restoration of the land to its original state. <Amended by Act No. 5091, Dec. 29, 1995; Act No. 5240, Dec. 31, 1996; Act No. 6841, Dec. 30, 2002>
(2) Deleted. <by Act No. 5091, Dec. 29, 1995>
[This Article Newly Inserted by Act No. 4720, Jan. 7, 1994]


Article 14 (Permission to Construct Factory)
(1) In giving permission for establishment, etc. of a factory under the provisions of Article 8 of the Building Act and receiving a report under the provisions of Article 9 of the same Act (including a case where permission to construct and report on construction are deemed to have been obtained and made at the time of approving the establishment, etc. of a factory under Article 13-2 (1) 16) to and from a person who has obtained permission for establishment, etc. of a factory under Article 13 (1) (including a person who is deemed to have obtained permission to establish a factory under Article 13 (2)), permission, authorization, approval, agreement or report falling under each of the following subparagraphs (hereinafter referred to as the permission ), about which the head of Si/Gun/Gu has consulted with the heads of administrative agencies concerned, shall be deemed to have been obtained: <Amended by Act No. 6452, Mar. 28, 2001; Act No. 6842, Dec. 30, 2002; Act No. 6893, May 29, 2003; Act No. 7291, Dec. 31, 2004; Act No. 7459, Mar. 31, 2005>
1.Permission to occupy and use roads under Article 40 (1) of the Road Act;
2.Permission to install facilities or installations under Article 20 of the Sewerage Act and report on the installation of drainage facilities under Article 24 (2) of the same Act;
3.Authorization to install exclusive waterworks under Article 36 (1) of the Water Supply and Waterworks Installation Act;
4.Authorization for and report on private-use electrical installation work plans under Article 62 (1) and (2) of the Electric Utility Act;
5.Agreement on construction permission, etc. under Article 7 (1) of the Installation, Maintenance, and Safety Control of Fire-Fighting System Act, report on fire-fighting facility work under Article 13 (1) of the Fire-Fighting System Installation Business Act, and permission for installation of factory, etc. under Article 6 (1) of the Safety Control of Dangerous Substances Act;
6.Permission for the act of development (limited to the act of constructing buildings or setting up installations) under Article 56 (1) of the National Land Planning and Utilization Act, designation of the undertaker of an urban planning facility project under Article 86 of the same Act and authorization for implementation program under Article 88 of the same Act;
7.Permission to construct temporary structures or report on it under Article 15 (1) and (2) of the Building Act and report on the setup of installations under Article 72 of the same Act;
8.Approval for or report on the installation of waste disposal facilities under Article 30 (2) of the Wastes Control Act;
9.Report on the installation of wastewater treatment facilities under Article 9 (2) of the Act on the Disposal of Sewage, Excreta and Livestock Wastewater, report on the installation of independent septic tank under Article 10 of the same Act, permission for or report on the installation of discharge facilities under Article 24-2 of the same Act;
10. Permission to install discharge and ventilation facilities and report on them under Article 10 (1) of the Clean Air Conservation Act, Article 10 (1) of the Water Quality Conservation Act and Article 9 (1) of the Noise and Vibration Control Act;
10.Permission to install discharge and ventilation facilities and report on them under Article 10 (1) of the Clean Air Conservation Act, Article 33 (1) of the Water Quality Conservation Act and Article 9 (1) of the Noise and Vibration Control Act; Enforcement Date: Apr. 1, 2006
11.Report on the installation of facilities to control the specific soil contamination under Article 12 of the Soil Environment Conservation Act;
12.Permission to establish simple explosives warehouses under Article 25 (1) of the Control of Firearms, Swords, Explosives, etc. Act;
13.Permission to establish liquified petroleum gas storehouses under Article 5 (1) of the Safety Control and Business Regulation of Liquified Petroleum Gas Act; and
14.Permission to establish high-pressure gas storehouses under Article 4 (3) of the High-Pressure Gas Safety Control Act.
(2) A person, who intends to obtain the legal fiction of permission, etc. under the provisions of each subparagraph of paragraph (1), shall submit related documents as prescribed by related Acts and subordinate statutes when he requests permission for the construction of the factory or reports on the construction of it.
(3) In giving permission for construction under Article 8 (1) of the Building Act or receiving a report on the construction under Article 9 (1) of the same Act, if there exist matters falling under each subparagraph of paragraph (1), the head of Si/Gun/Gu shall consult with the heads of administrative agencies concerned.
[This Article Wholly Amended by Act No. 5827, Feb. 8, 1999]

Article 14-2 (Approval for Use of Factory Structures)
(1) In giving approval for the use of structures as prescribed in Article 18 (1) of the Building Act to a person who has obtained the legal fiction of permission to construct a factory or made a report on the construction when the establishment, etc. of a factory has been approved under Article 13-2 (1) of this Act and a person who has obtained permission for the construction or made a report under the provisions of Article 14, inspection, report, agreement and request (hereinafter referred to as the inspection ) which fall under each of the following subparagraphs, about which the head of Si/Gun/Gu has consulted with the heads of administrative agencies concerned under paragraph (3), shall be deemed to have undergone inspection: <Amended by Act No. 6842, Dec. 30, 2002; Act No. 6893, May 29, 2003; Act No. 7459, Mar. 31, 2005>
1.Inspection prior to use of private electrical facilities under Article 63 of the Electric Utility Act;
2.Agreement on the approval for use under Article 7 (1) of the Installation, Maintenance, and Safety Control of Fire-Fighting System Act, inspection on the completion of fire-fighting facility work under Article 14 (1) of the Fire-Fighting System Installation Business Act, and inspection on the completion of factory, etc. under Article 9 (1) of the Safety Control of Dangerous Substances Act;
3.Report on the start of using waste disposal facilities under Article 30 (4) of the Wastes Control Act;
4.Inspection of the completion of the installation of sewage treatment facilities and independent water-purification tanks under Article 12 (1) of the Act on the Disposal of Sewage, Excreta and Livestock Wastewater;
5. Report on the start of operating facilities under Article 14 (1) of the Clean Air Conservation Act, Article 14 (1) of the Water Quality Conservation Act and Article 13 (1) of the Noise and Vibration Control Act;
5.Report on the start of operating facilities under Article 14 (1) of the Clean Air Conservation Act, Article 37 (1) of the Water Quality Conservation Act and Article 13 (1) of the Noise and Vibration Control Act; Enforcement Date: Apr. 1 2006
6.Deleted; <by Act No. 7140, Jan. 29, 2004>
7.Inspection of completion under Article 43 of the Control of Firearms, Swords, Explosives, etc. Act;
8.Inspection of the completion of the construction of liquefied petroleum gas storehouses and the installation of gas utensil manufacturing facilities under Article 18 (2) of the Safety Control and Business Regulation of Liquefied Petroleum Gas Act;
9.Inspection of the completion of the establishment of high-pressure gas storehouses and manufacturing factories, the installation of facilities for manufacturing high-pressure gas apparatus under Article 16 (3) of the High-Pressure Gas Safety Control Act and inspection of the completion of the installation of specific high-pressure gas facilities under Article 20 of the same Act;
10.Inspection of work completion under Article 62 (1) and Article 98 (2) of the National Land Planning and Utilization Act; and
11.Request for the registration of land changes under Article 3 (2) of the Cadastral Act.
(2) A person, who intends to obtain the legal fiction of inspection, etc. pursuant to the provisions of each subparagraph of paragraph (1), shall submit related documents as prescribed by relevant Acts and subordinate statutes when he requests approval for using the structures of a factory concerned.
(3) In giving approval for using structures under Article 18 (1), if there exist matters in the contents thereof falling under each of the subparagraphs of paragraph (1), the head of Si/Gun/Gu shall consult with the heads of administrative agencies concerned.
[This Article Wholly Amended by Act No. 5827, Feb. 8, 1999]

Article 14-3 (Approval for Installation of Manufacturing Facilities)
(1) A person, who intends to install manufacturing facilities and do the manufacturing business in whole or part of factory structures falling under each of the following subparagraphs with the factory construction area of not less than 500 square meters, shall obtain approval from the head of Si/Gun/Gu pursuant to the Presidential Decree. The same shall apply to a case where he intends to alter the approved matters: Provided, That when he intends to alter any insignificant matter prescribed by the Ordinance of the Ministry of Commerce, Industry and Energy from among the approved matters, he shall make a report thereon to the head of Si/Gun/Gu. <Amended by Act No. 6842, Dec. 30, 2003>
1.Factory structures which are built after obtaining approval for the establishment, etc. of a factory under Article 13 (1) without specifying the business type in advance; and
2.Structures of a factory, the registration of which is made under Article 16 (1) but revoked under Article 17 (1) 2.
(2) The conclusion of an occupancy contract under the main sentence of Article 38 (1) shall be deemed to have obtained approval for the installation of manufacturing facilities under paragraph (1) of this Article.
(3) In giving approval under paragraph (1) of this Article, permission or report as prescribed in each subparagraph of Article 13-2 (3) and permission, etc. as prescribed in each subparagraph of Article 14 (1), about which the head of Si/Gun/Gu has consulted with the heads of administrative agencies concerned, shall be deemed to have been permitted or reported under each subparagraph of Article 13-2 (3) and permitted under each subparagraph of Article 14 (1).
(4) The provisions of the main sentence of Article 13-2 (4) and (5), and Article 14 (2) and (3) shall be applied mutatis mutandis to a case of paragraph (3) of this Article. In this case, a request for approving the establishment, etc. of a factory and a request for permitting the construction of a factory or a report on the construction shall be deemed a request for approving the installation of manufacturing facilities.
(5) In receiving a report on the completion of the establishment, etc. of a factory under the provisions of Article 15 from a person who has installed manufacturing facilities after obtaining approval for the installation of manufacturing facilities, the inspection, etc. as prescribed in each subparagraph of Article 14-2 (1), about which the head of Si/Gun/Gu has consulted with the heads of administrative agencies concerned, shall be deemed to have been completed.
(6) The provisions of Article 14-2 (2) and (3) shall be applied mutatis mutandis to paragraph (5) of this Article. In this case, a request for approving the use of a factory and approval for using it shall be deemed a report on the completion of the establishment, etc. of a factory and the acceptance of the report on the completion.
[This Article Wholly Amended by Act No. 5827, Feb. 8, 1999]

Article 14-4 (Revocation of Approval for Installation of Manufacturing Facilities)
In case that approval for the installation of manufacturing facilities is found to have been obtained in fraudulent and illegal ways or the business is found to be difficult to do for reasons as prescribed by the Presidential Decree, the head of Si/Gun/Gu may revoke the approval.
[This Article Newly Inserted by Act No. 5827, Feb. 8, 1999]

Article 15 (Report on Completion of Establishment, etc. of Factory)
If a person who obtains the approval of establishment, etc. of a factory under Article 13 (1) completes the construction of the factory, or a person who obtains the approval of installation of manufacturing facilities under Article 14-3 (1) (including a person who is deemed to do so under Article 14-3 (2)) completes the installation of manufacturing facilities, he shall report such completion to the head of Si/Gun/Gu within a period as prescribed by the Presidential Decree: Provided, That in case of an enterprise located within the industrial complex, such report shall be made to a management organ.
[This Article Wholly Amended by Act No. 5827, Feb. 8, 1999]

Article 16 (Registration of Factory)
(1) Where the head of Si/Gun/Gu or a management organ receives a report on the completion of the establishment, etc. of a factory under Article 15, it shall register the said report in factory registration ledgers pursuant to the Ordinance of the Ministry of Commerce, industry and Energy.
(2) A person subject to an approval for the establishment, etc. of a factory under Article 13 (1) and an owner or occupant of a factory under Article 20 (2) may apply for the registration of his factory under paragraph (1) of this Article pursuant to the Ordinance of the Ministry of Commerce, industry and Energy.
(3) If a person who obtains the approval for the establishment, etc. of a factory under Article 13 (1) intends to operate partially a factory before the construction thereof is completed, he shall apply for the registration thereof pursuant to the Ordinance of the Ministry of Commerce, Industry and Energy.
(4) Any person who has altered any matter prescribed by the Ordinance of the Ministry of Commerce, Industry and Energy among those entered in the factory registration ledgers under paragraphs (1) through (3), shall apply for such alteration to the head of Si/Gun/Gu within two months from the date of alteration: Provided, That a request by an occupant enterprise for the alteration of an occupant contract under Article 38 (2) after having completed the establishment, etc. of a factory shall be deemed a request for the alteration of registration. <Amended by Act No. 6842, Dec. 30, 2002>
(5) In case that administrative agencies register new matters in their factory registration ledgers under paragraphs (1) through (3) and alter registered matters under paragraph (4), they shall notify the head of Si/Gun/Gu of the changes.
(6) In making the registration for a person who has completed the establishment, etc. of a factory under paragraphs (1) through (3), registration, report and permission (hereinafter referred to as the registration in this Article) falling under each of the following subparagraphs, about which the head of Si/Gun/Gu has consulted with heads of administrative agencies concerned under paragraph (9), shall be deemed to have completed the registration of each of the following subparagraphs: <Amended by Act No. 6193, Jan. 21, 2000; Act No. 6727, May 26, 2002; Act No. 7292, Dec. 31, 2004>
1.Registration of publishing companies and printing houses under Article 3 (1) of the Registration of Publishing Companies and Printing Office Act;
2.Registration of the grain processing business under Article (1) of the Grain Management Act;
3.Report on the ginseng manufacturing business under the provisions of Article 12 of the Ginseng Business Act;
4.Registration of the feed manufacturing business under the provisions of Article 9 of the Control of Livestock and Fish Feed Act;
5.Registration of the fertilizer production business under Article 11 (1) of the Fertilizer Control Act;
6.Permission to do the butchery business and the livestock product processing business under Article 22 (1) of the Processing of Livestock Products Act;
7.Deleted; <by Act No. 6842, Dec. 30, 2002>
8.Registration of the gauge manufacturing business and repair business under the provisions of Article 5 of the Weights Act;
9.Permission to manufacture materials under Article 38 (1) of the Industrial Safety and Health Act;
10.Registration of the toxic material manufacturing business under Article 20 (1) of the Toxic Chemicals Control Act, report on the manufacturing of observation materials under Article 13 (1) of the same Act and permission for handling restricted or prohibited toxic material manufacturing businesses under Article 34 (1) of the same Act;
11.Report on the recycling of livestock excreta or wastewater under Article 20 (1) of the Act on the Disposal of Sewage, Excreta and livestock Wastewater;
12.Permission to bottle drinking water from wells, registration of the water-treatment material manufacturing business and report on the water purifier manufacturing business under the provisions of Article 18 of the Management of Drinking Water Act;
13.Permission to do the manufacturing and processing business of food and food additives and report on it, and the manufacturing business of apparatus, containers and packages under the provisions of Article 22 of the Food Sanitation Act;
13-2.Permission for manufacturing business of health functioning food under the provision of Article 5 of the Act on Health Functioning Food;
14.Permission to run the manufacturing business of equipments for the physically handicapped under Article 50 (1) of the Welfare of Disabled Persons Act;
15.Registration of the aggregate collection business under Article 14 (1) of the Aggregate Picking Act;
16.Report on the repair business of construction machinery under Article 21 (1) of the Construction Machinery Management Act;
17.Registration of the car scrapping business under Article 53 (1) of the Automobile Management Act;
18.Registration of and report on the processing business of fisheries products under Article 49 (1) of the Fisheries Act; and
19.Permission to run the speculative machine manufacturing business under Article 13 (1) the Act on Special Cases concerning Regulation and Punishment of Speculative Acts, etc.
(7) In making the alteration of registration under paragraph (4), permission to make alteration, report on alteration and report on the succession of status (hereinafter referred to as the permission to make alteration ) falling under each of the following subparagraphs, about which the head of Si/Gun/Gu has consulted with administrative agencies concerned under paragraph (9), shall be deemed to have been obtained: <Amended by Act No. 6842, Dec. 30, 2002; Act No. 6893, May 29, 2003; Act No. 7291, Dec. 31, 2004; Act No. 7459, Mar. 31, 2005>
1.Permission to alter plans for electrical facility works for private use and report on it under Article 62 (1) and (2) of the Electric Utility Act;
2.Permission to alter the installation of factory, etc. under Article 6 (1) of the Safety Control of Dangerous Substances Act, and report on the succession of status under Article 10 (3) of the same Act;
3.Approval for or report on the alteration of the installation of waste disposal facilities under Article 30 (3) of the Wastes Control Act; and report on the succession of status under Article 32 (2) of the same Act;
4.Report on the alteration of the installation of wastewater treatment facilities and independent water purifiers under Articles 9 (2) and 10 (2) of the Act on the Disposal of Sewage, Excreta and Livestock Wastewater;
5. Report on or permission to alter the installation of discharge and ventilation facilities under Article 10 (2) and (3) of the Clean Air Conservation Act, Article 10 (2) and (3) of the Water Quality Conservation Act and Article 9 (2) of the Noise and Vibration Control Act;
5.Report on or permission to alter the installation of discharge and ventilation facilities under Article 10 (2) and (3) of the Clean Air Conservation Act, Article 33 (2) and (3) of the Water Quality Conservation Act and Article 9 (2) of the Noise and Vibration Control Act; Enforcement Date: Apr. 1, 2006
6.Report on the alteration under Article 12 (1) of the Soil Environment Conservation Act;
7.Permission to alter the establishment of liquified petroleum gas storehouses under Article 5 (1) of the Safety Control and Regulation of Liquified Petroleum Gas Business Act, and report on the succession of status under Article 7 (3) of the same Act; and
8.Permission for altering the establishment of high-pressure gas storehouses under Article 4 (3) of the High-Pressure Gas Safety Control Act.
(8) A person, who seeks to obtain the legal fiction of registration, etc. under the provisions of each subparagraph of paragraph (6) and permission to make the alteration under the provisions of each subparagraph of paragraph (7), shall submit related documents as prescribed by related Acts and subordinate statutes when he reports on the completion of the establishment, etc. of a factory or applies for the alteration of registration.
(9) In making registration under paragraphs (1) through (3) and the alteration of registration under paragraph (4), when matters exist that fall under each subparagraph of paragraph (6) or each subparagraph of paragraph (7), the head of Si/Gun/Gu shall consult with heads of administrative agencies concerned.
(10) Procedures for the registration of a factory and the scope of a request under the provisions of paragraphs (1), (5) and (9) shall be stipulated by the Ordinance of the Ministry of Commerce, Industry and Energy.
[This Article Wholly Amended by Act No. 5827, Feb. 8, 1999]

Article 16-2 (Registration of Factory Structures)
(1) A person, who has obtained approval for using the structures of a factory under Article 14-2 (1), may ask the head of Si/Gun/Gu or heads of administrative agencies to register the factory structures before installing manufacturing facilities.
(2) The head of Si/Gun/Gu or heads of management organs, upon a request for the registration under paragraph (1), shall register the factory structures in their factory registration ledgers under Article 16 (1) as prescribed by the Ordinance of the Ministry of Commerce, Industry and Energy.
[This Article Newly Inserted by Act No. 5827, Feb. 8, 1999]

Article 17 (Revocation of Factory Registration, etc.)
(1) In case that a factory registered under paragraphs (1) through (3) of Article 16 falls under each of the following subparagraphs, the head of Si/Gun/Gu shall revoke the registration as prescribed by the Presidential Decree:
1.A case where the factory ceases to exist or the use of structures is altered;
2.A case where the factory is shut down or its manufacturing facilities cease to exist; and
3.Other cases as prescribed by the Presidential Decree.
(2) In case that the registration of a factory is revoked under paragraph (1), the head of Si/Gun/Gu shall notify administrative agencies concerned, with which it has consulted about registration, etc. falling under each of subparagraphs of Article 16 (6), of the revocation of the factory registration.
(3) The scope of registration revocation under paragraph (1) shall be stipulated by the Presidential Decree.
[This Article Wholly Amended by Act No. 5827, Feb. 8, 1999]

Article 18 (Consultations about Establishment, etc. of Factory)
(1) In holding consultations with heads of administrative agencies concerned under Articles 13-2 (5) (including a case where Article 20 (4) is applied mutatis mutandis), 14 (3), 14-2 (3) and 16 (9), if the consultations end up with no agreement, the head of Si/Gun/Gu may ask the Mayor/Do governor to hold such consultations. If the consultations yield again no agreement, the head of Si/Gun/Gu may ask the Minister of Commerce, Industry and Energy to hold such consultations.
(2) The Minister of Commerce, Industry and Energy, upon a request for the consultations from the head of Si/Gun/Gu, shall consult with heads of administrative agencies concerned.
[This Article Newly Inserted by Act No. 5827, Feb. 8, 1999]

Article 19 (Foundation, etc. of Public Service Center for Establishment of Factories)
(1) The Mayor/Do governor and the head of Si/Gun/Gu may found an organization (hereinafter referred to as the public service center for the establishment of factories ) for the purpose of the systematic receipt and conduct of civil petitions related to industrial sites and the establishment of factories. <Amended by Act No. 5091, Dec. 29, 1995; by Act No. 6842, Dec. 30, 2002>
(2) and (3) Deleted. <by Act No. 5240, Dec. 31, 1996>

(4) Deleted. <by Act No. 5091, Dec. 29, 1995>
(5) All matters necessary concerning the foundation and administration, etc. of the public service center for the establishment of factories shall be determined by the Presidential Decree.



CHAPTER IV DEVELOPMENT OF INDUSTRIAL CLUSTER


Article 20 (Restrictions on New Establishment etc. of Factories)
(1) Factories (including apartment-type factories) with a floor space of not less than five hundred square meters shall be prohibited from undertaking activities such as the new establishment, expansion or transfer of factories, or the changing of business type within restricted population zones, growth administration zones, and environmental protection zones: Provided, That this provision shall not apply in cases determined by the Presidential Decree, where it is recognized that such activities are necessary for national economic development and the creation of a suitable living environment for local residents. <Amended by Act No. 5091, Dec. 29, 1995; Act No. 5240, Dec. 31, 1996>
(2) Any person who intends to establish, expand or transfer a factory, or change the type of business under the proviso of paragraph (1) above shall obtain the approval of the head of Si/Gun/Gu as prescribed by the Ordinance of the Ministry of Commerce, Industry and Energy. The same shall apply to a case where he intends to alter any approved matter: Provided, That when he intends to alter any insignificant matter prescribed by the Ordinance of the Ministry of Commerce, Industry and Energy, he shall make a report thereon to the head of Si/Gun/Gu. <Amended by Act No. 5091, Dec. 29, 1995; Act No. 5827, Feb. 8, 1999; Act No. 6842, Dec. 30, 2002>
(3) Deleted. <by Act No. 5240, Dec. 31, 1996>
(4) The provisions of Article 13 (3) and (4) and the provisions of Articles 13-2 and 13-3 shall be applied mutatis mutandis to the case of the approval obtained under paragraph (2) above. <Amended by Act No. 5091, Dec. 29, 1995; Act No. 5240, Dec. 31, 1996; Act No. 5827, Feb. 8, 1999>
(5) Deleted. <by Act No. 5091, Dec. 29, 1995>
(6) The provisions of Article 13 (5) shall apply mutatis mutandis to persons who have received approval under paragraph (2) above. <Amended by Act No. 5091, Dec. 29, 1995; Act No. 5827, Feb. 8, 1999>
(7) Persons, who have concluded occupancy contracts in the restricted population zones, growth administration zones and environmental protection zones under Article 38 (1) (including the alteration of under Article 38 (2)), shall be deemed to have obtained approval under paragraph (2) above. <Amended by Act No. 5091, Dec. 29, 1995; Act No. 5827, Feb. 8, 1999>
[This Article Wholly Amended by Act No. 4720, Jan. 7, 1994]

Article 21 (Confirmation of Relocation of Factory)
Persons, who have relocated their factories in a restricted population zone to a promotional zone or other regions, may obtain the confirmation of the relocation of their factories from the head of Si/Gun/Gu where their factories have been located after applying for such confirmation.
[This Article Wholly Amended by Act No. 5827, Feb. 8, 1999]

Article 22 (Designation of Knowledge-Based Industrial Cluster Zone)
(1) The Mayor/Do governor may, if it is deemed necessary to develop the cluster of knowledge-based industry, map out a program for developing a knowledge-based industrial cluster zone which includes matters falling under each of the following subparagraphs and ask the Minister of Commerce, Industry and Energy to designate a certain area under his jurisdiction as the knowledge-based industrial cluster zone (hereinafter referred to as the cluster zone ):
1.Area intended to be designated as the cluster zone;
2.Current cluster of the knowledge-based industry;
3.Current industrial cluster infrastructure;
4.Ways to expedite the cluster of knowledge-based industry and to expand the industrial cluster infrastructure; and
5.Amount of financial resources required to develop the cluster zone and ways to secure such financial resources.
(2) The Minister of Commerce, Industry and Energy may, upon receiving a request for designating an area as a cluster zone, designate such cluster zone only when the program for developing the knowledge-based industrial cluster zone meets the requirements falling under each of the following subparagraphs. In this case, the Minister of Commerce, Industry and Energy shall consult with the heads of central administrative agencies concerned thereabout in advance:
1.The cluster zone is required to be compatible with the basic program for developing the industrial cluster;
2.The cluster zone is required to be compatible with the program for supplying industrial sites provided for in Article 5-2 of the Industrial Sites and Development Act; and
3.Ways to expand the industrial cluster infrastructure and to secure necessary financial resources, etc. are required to be appropriate.
(3) In the event that any area for which a request is made to be designated as a cluster zone falls under the urban high-tech industrial complex provided for in Article 7-2 of the Industrial Sites and Development Act, the Minister of Commerce, Industry and Energy may preferentially designate such area as a cluster zone.
(4) The Minister of Commerce, Industry and Energy shall, when he designates any cluster zone under paragraph (2), publish the contents of his designation under the conditions as prescribed by the Presidential Decree.
[This Article Newly Inserted by Act No. 6842, Dec. 30, 2002]

Article 22-2 (Support for Cluster Zone)
(1) The Minister of Commerce, Industry and Energy shall preferentially support the project falling under each of the following subparagraphs for every cluster zone:
1.The project undertaken to build the industrial technology complex provided for in Article 2 of the Act on Special Cases for Support of Industrial Technology Complexes;
2.The project undertaken to develop the industrial infrastructure technology provided for in Article 24 of the Industrial Development Act and the development project provided for in each subparagraph of Article 25 of the same Act;
3.The project undertaken to build the technological infrastructure provided for in Article 5 of the Act on the Establishment of Industrial Technology Foundation; and
4.The project undertaken to facilitate the decentralization of technology provided for in Article 14 of the Technology Transfer Promotion Act.
(2) The Administrator of the Small and Medium Business Administration may preferentially support local governments that are granted the designation of cluster zones from the fund raised to nurture local small and medium companies under Article 44 (1) of the Balanced Regional Development and Support for Local Small and Medium Enterprises Act for the purpose of developing cluster zones.
(3) In the event that any industrial complex establishes any apartment-type factory in any cluster zone, the State or the local government may preferentially provide the fund needed to build such apartment-type factory.
(4) The State or local governments may preferentially support the construction of infrastructure such as the security of sites, road and water-supply facilities and sewage facilities, etc., in cluster zones for the purpose of developing such cluster zones.
(5) Local governments may support necessary matters for companies that are located in cluster zones or intend to move into cluster zones.
[This Article Newly Inserted by Act No. 6842, Dec. 30, 2002]

Article 23 (Designation of Promotional Zones)
(1) Where the creation of industrial complexes are necessary for facilitating the transfer of factories to local areas and the collectivization of pollution industries, and where the creation of factory areas no smaller than that prescribed by Article 41 of the Industrial Sites and Development Act is necessary for the strengthening of industrial competitiveness, the Minister of Commerce, Industry and Energy shall designate and issue public notice of promotional zones. <Amended by Act No. 4541, Mar. 6, 1993; Act No. 5091, Dec. 29, 1995; Act No. 5827, Feb. 8, 1999; Act No. 6842, Dec. 30, 2002>
(2) Where the Minister of Commerce, Industry and Energy intends to designate promotional zones pursuant to paragraph (1), he shall prepare a plan for the promotional zone and after consultation with the Minister of Construction and Transportation, shall present it jointly to the Council. <Amended by Act No. 4541, Mar. 6, 1993; Act No. 5091, Dec. 29, 1995; Act No. 5827, Feb. 8, 1999>
(3) Plans for promotional zones under paragraph (2) shall include the following matters: <Amended by Act No. 5091, Dec. 29, 1995; Act No. 6842, Dec. 30, 2002>
1.The location and boundaries of the promotional zone;
2.The type and scale of industry to be attracted to the zone;
3.The kind of industrial complex necessary for the development of the promotional zone; and
4.Other matters determined by the Presidential Decree.
(4) Matters such as the designation procedure, etc. of the promotional zone under paragraphs (1) and (2) shall be determined in accordance with the Presidential Decree.

Article 24 (Standards for Designation of Promotional Zones)
The promotional zone shall be designated from among those zones which fulfill the following conditions: <Amended by Act No. 6842, Dec. 30, 2002>
1.In terms of location, zones with wide potential for use, such as the capacity to accomodate highly concentrated industries;
2.Zones with positive effect on regional development; and
3.Zones allowing easy secureness of industrial sites and the installation of support facilities such as water and electricity, etc.

Article 25 (Factory Transfer to Promotional Zone)
As amongst those factories moving to the promotional zones designated and publicly announced under Article 23, the Minister of Commerce, Industry and Energy may, as the need arises, give priority of occupant to factories wishing to move out of restricted population zones. <Amended by Act No. 4541, Mar. 6, 1993; Act No. 4720, Jan. 7, 1994; Act No. 5091, Dec. 29, 1995; Act No. 5827, Feb. 8, 1999>

Article 26 (Facilitation of Company Transfer to Local Areas)
(1) The Minister of Commerce, Industry and Energy may take and implement policy steps to develop local industries after consulting with the heads of central administrative agencies concerned for the eventual purpose of developing local industries through the facilitation of transfer of companies to local areas.
(2) The State or local governments shall provide necessary assistance in facilitating the transfer of companies to local areas.
[This Article Newly Inserted by Act No. 6842, Dec. 30, 2002]

Article 27 Deleted.
<by Act No. 5827, Feb. 8, 1999>

Article 28 (Municipal-Type Factory)
The Minister of Commerce, Industry and Energy may designate factories of frontier industries, factories with low pollution emission, or factories that are closely connected with urban life, as municipal-type factories as prescribed by the Presidential Decree. <Amended by Act No. 5827, Feb. 8, 1999>
[This Article Wholly Amended by Act No. 5240, Dec. 31, 1996]



CHAPTER IV-2 APARTMENT-TYPE FACTORY


Article 28-2 (Establishment, etc. of Apartment-Type Factory)
(1) Article 13, Article 13-2, Article 13-3, Article 13-4, Article 13-5, Article 14, Article 14-2, Article 14-3. Article 14-4 and the provisions of Article 18 shall be applied mutatis mutandis to approval for the establishment of apartment-type factory, the legal fiction of the authorization and permission, etc., special cases in approval for the establishment etc. of apartment-type factory, the public notice of standards, etc. for dealing with the apartment-type factory, the revocation of the approval, permission to construct the apartment-type factory, approval for using it, approval for the installation of manufacturing facilities, revocation of the approval for the installation of manufacturing facilities and consultations.
(2) A person, who has established an apartment-type factory under Article 18 (1) and obtained approval for using it, shall report the completion of the establishment of the apartment-type factory to the head of Si/Gun/Gu or heads of administrative agencies within a period as prescribed by the Presidential Decree. The same shall be applied to a case where he seeks to alter, among reported matters, important matters prescribed by the Ordinance of the Ministry of Commerce, Industry and Energy.
(3) The head of Si/Gun/Gu and heads of management agencies, upon the receipt of a report from a builder on the completion of the establishment of an apartment-type factory under paragraph (2), shall enter the report in their apartment-type factory ledgers.
(4) When the administrative agencies register the apartment-type factory under paragraph (3), they shall notify the head of Si/Gun/Gu of the registration.
[This Article Newly Inserted by Act No. 5827, Feb. 8, 1999]

Article 28-3 (Assistance in Apartment-Type Factory)
(1) Necessary funds may be provided for the apartment-type factory as prescribed by other Acts.
(2) The State or local governments, which have built the apartment-type factory, may sell it at construction costs or lease at rent rates as prescribed by the Presidential Decree notwithstanding the State Properties Act and the Local Finance Act.
(3) A person, who has bought an apartment-type factory at construction costs, shall not be permitted to resell it within a period set by the Ordinance of the Ministry of Commerce, Industry and Energy. The same shall not be applied to a case where he sells it after having been declared bankrupt and other cases as prescribed by the Ordinance of the Ministry of Commerce, Industry and Energy.
[This Article Newly Inserted by Act No. 5827, Feb. 8, 1999]

Article 28-4 (Sale of Apartment-Type Factory)
(1) In case that a person, who has built an apartment-type factory, seeks to sell or lease it, he shall openly do so after working out a public notice plan for the recruitment of occupant enterprises (who mean those willing to buy or lease the apartment-type factory for the manufacturing business and other businesses; hereinafter the same shall apply) and then obtaining approval for the plan from the head of Si/Gun/Gu. The same shall be applied to a case where he seeks to alter, among approved matters, important matters as prescribed by the Ordinance of the Ministry of Commerce, Industry and Energy.
(2) Paragraph (1) shall not be applied to cases falling under each of the following subparagraphs in relation to the sale and lease of the apartment-type factory:
1.Apartment-type factories newly built due to the attraction of factories removed by public works projects or other reasons as prescribed by the Presidential Decree; or
2.Apartment-type factories less than any scale as prescribed by the Presidential Decree.
(3) In case that a person, who has built an apartment-type factory, is the State, a local government, the Korea Industrial Complex Corporation under the provisions of Article 45-3, the Small and Medium Enterprise Promotion Corporation under the Promotion of Small and Medium Enterprise and Facilitation of Purchase of Their Products Act and a local corporation under the Local Public Corporation Act (hereinafter referred to as the local corporation ), he may recruit occupant enterprises after notifying the head of Si/Gun/Gu of a pubic notice plan notwithstanding paragraph (1). The same shall apply to a case where he seeks to alter, among notified matters, important matters as prescribed by the Ordinance of the Ministry of Commerce, Industry and Energy.
[This Article Newly Inserted by Act No. 5827, Feb. 8, 1999]

Article 28-5 (Occupancy of Apartment-Type Factory)
(1) Facilities falling under each of the following subparagraphs shall be permitted to occupy the apartment-type factory:
1.Facilities for the manufacturing business and other businesses as prescribed by the Presidential Decree;
2.Facilities for a venture company under Article 2 (1) of the Act on Special Measures for the Promotion of Venture Business; and
3.Other facilities as prescribed by the Presidential Decree for assistance in the production activities of occupant enterprises.
(2) The scope and size of facilities permitted to occupy the apartment-type factory under the provisions of each subparagraph of paragraph (1) shall be stipulated by the Presidential Decree.
[This Article Newly Inserted by Act No. 5827, Feb. 8, 1999]

Article 28-6 (Management of Apartment-Type Factory)
(1) The apartment-type factory shall be managed by a person falling under each of the following subparagraphs:
1.In case that the relationship of divisional ownership is constituted under the Act on the Ownership and Management of Aggregate Buildings: the management corporation under Article 23 (1) of the same Act; and
2.In case that the relationship of divisional ownership is not constituted under the Act on the Ownership and Management of Aggregate Buildings: a person who has built the apartment-type factory.
(2) The management corporation referred to in paragraph (1) 1 shall work out articles under Article 28 (1) of the Act on the Ownership and Management of Aggregate Buildings and report it to the Head of Si/Gun/Gu within the period from the time when it is organized to that as prescribed by the Ordinance of the Ministry of Commerce, Industry and Energy. The same shall apply to a case where the management corporation seeks to alter, among reported matters, important matters as prescribed by the Ordinance of the Minister of Commerce, Industry and Energy.
(3) Service rules for a person (hereinafter referred to as the manager ), who is assigned to manage the apartment-type factory under the provisions of each subparagraph of paragraph (1), shall be laid down by the Ordinance of the Ministry of Commerce, Industry and Energy.
[This Article Newly Inserted by Act No. 5827, Feb. 8, 1999]

Article 28-7 (Duties of Occupant Enterprises, etc.)
(1) The occupant enterprise or the manger of the apartment-type factory shall not perform acts falling under each of the following subparagraphs:
1.The act of removing, destroying and damaging the impact-resistant walls and major structures as prescribed by the Presidential Decree of the apartment-type factory;
2.The act of installing heavy machinery and vibration-generating equipment in excess of the load capacity fixed by a design at the time of approving the construction of structures; and
3.The act of significantly undermining the production activities of other companies and the maintenance of safety of the apartment-type factory, which is prescribed by the Ordinance of the Ministry of Commerce, Industry and Energy.
(2) An occupant shall obey articles under Article 28-6 (2).
[This Article Newly Inserted by Act No. 5827, Feb. 8, 1999]

Article 28-8 (Measures against Breach of Duties, etc.)
In case that the breach of duties referred to in Article 28-7 by the occupant enterprise or the manager is feared to undermine significantly the safety of the apartment-type factory and the production activities of other companies, the head of Si/Gun/Gu may order the correction of such breach or take measures to ensure the safety of the apartment-type factory as prescribed by the Presidential Decree.
[This Article Newly Inserted by Act No. 5827, Feb. 8, 1999]

Article 29 Deleted.
<by Act No. 5827, Feb. 8, 1999>



CHAPTER V ADMINISTRATIONOF INDUSTRIAL COMPLEX


Article 30 (Authorized Administrator, etc.)
(1) The authorized administrators shall be as follows: <Amended by Act No. 4541, Mar. 6, 1993; Act No. 4720, Jan. 7, 1994; Act No. 5091, Dec. 29, 1995; Act No. 5827, Feb. 8, 1999; Act No. 6842, Dec. 30, 2002>
1.The Minister of Commerce, Industry and Energy in the case of national industrial complexes;
2.The Mayor/Do governor in the case of general local industrial complexes and urban high-tech industrial complexes; and
3.The head of Si/Gun/Gu in the case of agricultural and industrial complexes.
(2) The administrative agencies shall be as follows: <Amended by Act No. 4720, Jan. 7, 1994; Act No. 5091, Dec. 29, 1995; Act No. 5240, Dec. 31, 1996; Act No. 6842, Dec. 30, 2002>
1.The authorized administrator;
2.The head of a local government to whom administrative affairs are delegated by the authorized administrator;
3.The Korea Industrial Complex Corporation or the industrial complex administrative corporation entrusted by the authorized administrator with administrative affairs;
4.The Consultative Council for Occupant Enterprises that is entrusted with administrative affairs by the authorized administrator; and
5.Any institution, prescribed by the Presidential Decree, which is entrusted with administrative affairs (limited to the administrative affairs of any general local industrial complex, any urban high-tech industrial complex and any agricultural and industrial complex) by the authorized administrator.
(3) Industrial complexes created by the State, local government, or any other person for occupancy industrial facilities pursuant to Acts other than the Industrial Sites and Development Act such as the National Land Planning and Utilization Act may be managed by the authorized administrator suitable for that industrial complex under paragraph (1). <Amended by Act No. 5091, Dec. 29, 1995; Act No. 5827, Feb. 8, 1999; Act No. 6842, Dec. 30, 2002>
(4) The administrative agency shall conform with the development plan for industrial complexes under Articles 6 through 7-2 of the Industrial Sites and Development Act in administering the industrial complex. <Newly Inserted by Act No. 5091, Dec. 29, 1995; Act No. 6406, Jan. 29, 2001>
(5) The administrative agency commissioned by the authorized administrator to manage the industrial complex may be engaged in the real estate business on factory sites and structures in the industrial complex notwithstanding the provisions of Article 9 of the Business Affairs of Licensed Real Estate Agents and Report of Real Estate Transactions Act. <Newly Inserted by Act No. 5827, Feb. 8, 1999; Act No. 7638, Jul. 29, 2005>

Article 31 (Industrial Complex Administrative Corporation)
(1) In order to ensure the effective administration of the industrial complex, the authorized administrator may delegate or entrust whole or part of the administrative affairs to the administrative agency referred to in Article 30 (2), in accordance with the Presidential Decree. <Amended by Act No. 4720, Jan. 7, 1994; Act No. 5091, Dec. 29, 1995; Act No. 5240, Dec. 31, 1996>
(2) Persons wishing to establish an industrial complex administrative corporation (hereinafter referred to as an administrative corporation ) or an autonomous consultative council composed of occupant enterprises (hereinafter referred to as a consultative council for occupant enterprises ) with the aim of being commissioned to manage the affairs for managing industrial complex, shall obtain approval from the authorized administrator and accept the conditions prescribed by the Presidential Decree. <Amended by Act No. 5240, Dec. 31, 1996; Act No. 5827, Feb. 8, 1999>
(3) The administrative corporation and the consultative council for occupant enterprises (hereinafter referred to as the administrative corporation ) shall be a juristic person and shall be formed by the registration of establishment in the location of its main office. <Amended by Act No. 5827, Feb. 8, 1999>
(4) The property of the administrative corporation shall not be transferred or offered as security without the approval of the authorized administrator. <Amended by Act No. 5827, Feb. 8, 1999>
(5) The authorized administrator may revoke authorization of the establishment of an administrative corporation, etc. in any of the following circumstances: <Amended by Act No. 5827, Feb. 8, 1999>
1.Where the corporation violates this Act or any order issued pursuant to this Act;
2.Where the corporation carries on a business other than that for which it was established;
3.Where it is recognized that achievement of the purpose for which it was established is impossible; or
4.Where the corporation inflicts harm on the public good.
(6) Where the authorized administrator has authorized the establishment of a consultative council for occupant enterprises under paragraph (2), the administrator shall, without delay, entrust the administrative affairs of the industrial complex concerned or take such measures as are necessary for the change of the administrative agency to the consultative council for occupant enterprises. <Newly Inserted by Act No. 5091, Dec. 29, 1995>
(7) Necessary matters concerning the formation and operation of the consultative council for occupant enterprises shall be determined by the Presidential Decree.
(8) The provisions concerning the corporate juristic person in the Civil Act shall be applied mutatis mutandis except as provided for in this Act regarding the administrative corporation. In that case, the administrative agency in charge of the industrial complex shall be deemed the authorized administrator. <Amended by Act No. 5827, Feb. 8, 1999>

Article 32 (Administrative Guidelines etc. for Industrial Complexes)
(1) The Minister of Commerce, Industry and Energy shall formulate and issue public notice of administrative guidelines for industrial complexes (hereinafter referred to as administrative guidelines ) concerning basic matters for the management of industrial complexes through the deliberations by the Council in accordance with the Presidential Decree. The same shall apply in the case of modifications to these guidelines: Provided, That this provision shall not apply to the modification of trivial matters such as are prescribed by the Presidential Decree. <Amended by Act No. 4541, Mar. 6, 1993; Act No. 5091, Dec. 29, 1995; Act No. 5827, Feb. 8, 1999; Act No. 6842, Dec. 30, 2002>
(2) Among those administrative guidelines formulated pursuant to paragraph (1), administrative guidelines for agricultural and industrial complexes shall be determined by the Presidential Decree.

Article 33 (Formulation of Basic Programs for Management of Industrial Complexes)
(1) Where an industrial complex is designated pursuant to Articles 6 through 8 of the Industrial Sites and Development Act and areas are found to be managed as potential industrial complexes, the administrative agency shall formulate a basic program for the management of the industrial complex (hereinafter referred to as the basic management program ) in accordance with the Presidential Decree. In this case, the administrative agency delegated or entrusted with administrative affairs by the authorized administrator, shall obtain the approval of the authorized administrator regarding the basic management program (including modified programs), and obtain the approval of the Mayor/Do governor as prescribed by the Presidential Decree, in respect of the basic management program for agricultural and industrial complexes. <Amended by Act No. 5091, Dec. 29, 1995; Act No. 5827, Feb. 8, 1999>
(2) When the administrative agency intends to formulate a basic management program or the authorized administrator intends to give approval pursuant to paragraph (1) above, the agency or administrator shall consult with the holder of the right to designate industrial complexes under Articles 6 through 7-2 of the Industrial Sites and Development Act: Provided, That the same shall not be applied to the alteration of minor matters as prescribed by the Presidential Decree. <Amended by Act No. 4720, Jan. 7, 1994; Act No. 5091, Dec. 29, 1995; Act No. 5827, Feb. 8, 1999; Act No. 6406, Jan. 29, 2001>
(3) Where the administrative agency, authorized administrator or Mayor/Do governor formulates or approves a basic management program referred to in paragraph (1), public notice of this fact shall be issued. <Newly Inserted by Act No. 4270, Jan. 7, 1994; Act No. 5091, Dec. 29, 1995>
(4) The basic management program referred to in paragraph (1) above shall include the following matters: <Newly Inserted by Act No. 4270, Jan. 7, 1994; Act No. 5091, Dec. 29, 1995>
1.Matters concerning the area of the industrial complex to be administered;
2.Matters concerning the type of business of the occupant and qualifications of the occupant enterprise;
3.Matters concerning zones within the industrial complex (hereinafter referred to as industrial area ) classified by use;
4.Matters concerning the placement of factories according to business type;
5.Matters concerning the establishment and operation of support facilities; and
6.Other matters necessary for the management of the industrial complex.
(5) Zones classified by use under paragraph (4) 3 may be classified into and administered under the following zones: industrial facilities zones, support facilities zones, public facilities zones and green belt zones. In this case, the industrial facilities zones may be further subdivided according to use. <Newly Inserted by Act No. 4720, Jan. 7, 1994; Act No. 5091, Dec. 29, 1995>
(6) The provisions of Article 76 (1) of the National Land Planning and Utilization Act shall not apply to zones classified by use under paragraph (5). <Newly Inserted by Act No. 4720, Jan. 7, 1994; Act No. 6842, Dec. 30, 2002>

Article 34 (Sale and Lease of Land Owned by State and Local Governments in Industrial Complex)
(1) The Minister of Commerce, Industry and Energy or heads of local governments may sell or lease land, factory structures and other facilities owned by the State or local governments (with regard to state-owned land, factory structures and facilities, their sales and leases are confined to those, the management of which is transferred by administrative agencies in charge of managing them and others designated by the Minister of Finance and Economy for management and disposal) to occupant enterprises or the support agency pursuant to the Presidential Decree.
(2) Prices of land, factory structures and facilities owned by the State (hereinafter referred to as the factory, etc. ) to be sold or leased under paragraph (1) shall be decided by the Minister of Commerce, Industry and Energy and the Minister of Finance and Economy at the end of their consultations notwithstanding the State Properties Act. Meanwhile, prices of land and factories, etc. owned by local governments shall be decided by heads of local governments concerned notwithstanding the Local Finance Act. In that case, the amount may be denominated in foreign currencies if necessary.
(3) Occupant enterprises or the support agency, which have leased the land owned by the State or local governments, may build factories on the leased land notwithstanding the State Properties Act and the Local Finance Act.
[This Article Wholly Amended by Act No. 5827, Feb. 8, 1999]

Article 35 (Designation of Areas for Special Promotional Industries)
Where the Minister of Commerce, Industry and Energy deems it necessary for the rational development of the industry and for balanced regional development, the Minister may designate fixed areas within the industrial complex as areas for special promotional industries. <Amended by Act No. 4541, Mar. 6, 1993; Act No. 5091, Dec. 29, 1995; Act No. 5827, Feb. 8, 1999>

Article 35-2 (Development, etc. of Overseas Industrial Complexes)
(1) A person, who seeks to develop, sell or manage an industrial complex abroad (hereinafter referred to as the overseas industrial complex ) beyond the size as prescribed by the Ordinance of the Ministry of Commerce, Industry and Energy with the aim of attracting mainly domestic companies, shall work out an overseas industrial complex development plan under the conditions as prescribed by the Presidential Decree, and report it to the Minister of Commerce, Industry and Energy. The same shall apply to a case where he seeks to alter, among reported matters, important matters as prescribed by the Presidential Decree.
(2) The Minister of Commerce, Industry and Energy, upon the receipt of a report under paragraph (1), shall notify the Minister of Construction and Transportation of matters concerning the development of the overseas industrial complex.
[This Article Wholly Amended by Act No. 5827, Feb. 8, 1999]

Article 35-3 Deleted.
<by Act No. 7281, Dec. 31, 2004>

Article 35-4 Deleted.
<by Act No. 5240, Dec. 31, 1996>

Article 35-5 (Occupation, etc.)
The administrative agency may act as proxy for foreign investment enterprises that concluded contracts for occupancy pursuant to Article 38 (1) or for foreign investors who invest in the foreign investment enterprise concerned, in relation to the following activities: <Amended by Act No. 5454, Dec. 13, 1997; Act No. 5544, May 25, 1998; Act No. 5827, Feb. 8, 1999>
1.Affairs related to various reports and a request for the authorization and permission, etc. under the Foreign Investment Promotion Act;
2.Affairs related to all reports and requests for approval under the Foreigner s Land Acquisition Act; and
3.Affairs related to reports and requests for permission under the Building Act, and other Acts and subordinate statutes.
[This Article Newly Inserted by Act No. 4720, Jan. 7, 1994]

Article 36 (Decisions concerning Transfer and Price, etc. of Land for Development)
(1) Where the administrative agency wishes to be entrusted by the business operator in accordance with Article 16 of the Industrial Sites and Development Act (hereinafter referred to as a business operator ) with the business relating to the lotting-out and leasing of land pursuant to Article 38 of the same Act, the administrative agency shall submit the plan for the lotting-out and leasing of land to the authorized administrator: Provided, That in the case of an agricultural and industrial complex, the administrative agency shall obtain approval from the Mayor/Do governor. <Amended by Act No. 5091, Dec. 29, 1995>
(2) Deleted. <by Act No. 5827, Feb. 8, 1999>
(3) Matters concerning the object, scope and procedure of approval under the provisions of paragraph (1) shall be stipulated by the Presidential Decree. <Amended by Act No. 4720, Jan. 7, 1994; Act No. 5827, Feb. 8, 1999>

Article 37 (Common Expenses)
(1) Deleted. <by Act No. 5240, Dec. 31, 1996>
(2) The administrative agency may, with the approval of the authorized administrator, take receipt of the common expenses from the occupant enterprise and the supporting agency where it is necessary for the establishment, maintenance, and repair of roads, wastewater treatment stations, waste disposal stations, street lights and joint facilities as prescribed by the Ordinance of the Ministry of Commerce, Industry and Energy with the exception of public facilities the State or local governments have to maintain and manage: Provided, That in the case of common expenses regarding the agricultural and industrial complex, the administrative agency shall obtain the approval of the Mayor/Do governor pursuant to the provisions of the Presidential Decree. <Amended by Act No. 4541, Mar. 6, 1993; Act No. 4720, Jan. 7, 1994; Act No. 5091, Dec. 29, 1995; Act No. 5827, Feb. 8, 1999>
(3) Deleted. <by Act No. 5240, Dec. 31, 1996>
(4)The criterion and method for the calculation of the amount of common expenses under paragraph (2) shall be prescribed by the Presidential Decree. <Amended by Act No. 5240, Dec. 31, 1996>

Article 38 (Contracts, etc. for Occupancy)
(1) Persons who manage or wish to manage a manufacturing business within an industrial complex shall conclude a contract regarding occupancy (hereinafter referred to as a contract for occupancy ) with the administrative agency in accordance with the Ordinance of the Ministry of Commerce, Industry and Energy: Provided, That this shall not apply in cases determined by the Presidential Decree. <Amended by Act No. 4541, Mar. 6, 1993; Act No. 4720, Jan. 7. 1994; Act No. 5091, Dec. 29, 1995; Act No. 5827, Feb. 8, 1999>
(2) Where any occupancy enterprise and supporting agency wish to modify, among matters concerning the contract for occupancy, matters prescribed by the Ordinance of the Ministry of Commerce, Industry and Energy, they shall conclude a new contract of modification. <Amended by Act No. 5091, Dec. 29, 1995; Act No. 5827, Feb. 8, 1999; Act No. 6842, Dec. 30, 2002>
(3) The provisions of paragraphs (1) and (2) shall apply mutatis mutandis to persons who manage or wish to manage a business other than a manufacturing business within the industrial complex. <Amended by Act No. 5091, Dec. 29, 1995>
(4) As amongst the administrative agencies, the administrative corporation or the consultative council for occupant enterprises shall give notice regarding contract for occupancy or the contract of modification to the head of Si/Gun/Gu pursuant to the Ordinance of the Ministry of Commerce, Industry and Energy where the administrative corporation or the consultative council for occupant enterprises concludes a contract for occupancy or contract of modification under paragraph (1) or (2). <Amended by Act No. 5091, Dec. 29, 1995; Act No. 5827, Feb. 8, 1999>

Article 38-2 (Leasing Businesses, etc. within Industrial Complex)
(1) Persons wishing to undertake the business of leasing in respect of the industrial areas and factories within the industrial complex, shall conclude a contract for occupancy with the administrative agency. <Amended by Act No. 5827, Feb. 8, 1999>
(2) All necessary matters concerning the scope of the leasing business and the criterion, etc. for lease prices in respect of industrial areas and factories under paragraph (1) shall be determined by the Presidential Decree. <Amended by Act No. 5827, Feb. 8, 1999>
[This Article Newly Inserted by Act No. 5091, Dec. 29, 1995]

Article 39 (Restriction on Disposition of Industrial Area, etc.)
(1) Where any occupant enterprise that owns any industrial area and factory in the industrial facility area provided for in Article 33 (5) (hereinafter referred to as the industrial facility area ) intends to dispose of the industrial area and factory bought at a lotting-out prior to completion of establishment of the factory, etc., which is prescribed by the Presidential Decree, the occupant enterprise shall transfer it to the administrative agency: Provided, That where the administrative agency is unable to purchase it, the occupant enterprise shall transfer it to another occupant enterprise which is selected by the administrative agency based on the purchase applications as prescribed by the Presidential Decree or to any of the agencies outlined below (hereinafter referred to as a relevant agency ): <Amended by Act No. 4825, Dec. 22, 1994; Act No. 5091, Dec. 29, 1995; Act No. 5109, Dec. 29, 1995; Act No. 5499, Jan. 13, 1998; Act
No. 5827, Feb. 8, 1999; Act No. 6842, Dec. 30, 2002>
1.Small Business Corporation as prescribed by the Promotion of Small and Medium Enterprises and Encouragement of Purchase of Their Products Act;
2.Korea Land Corporation as prescribed by the Korea Land Corporation Act and the Korea Water Resources Corporation as prescribed by the Korea Water Resources Corporation Act;
3.Financial institutions (including a financial institution established pursuant to such Acts as the Industrial Bank of Korea Act, etc.) which has obtained authorization for establishment under Article 8 of the Banking Act; and
4.Other agencies, as prescribed by the Presidential Decree, which are related to the establishment and support of occupant enterprises.
(2) Where any occupant enterprise that owns any industrial area (including any divided industrial area) and factory, etc. in the industrial facility area intends to dispose of such industrial area and factory, etc. that is prescribed by the Presidential Decree after completion of the factory, etc., the occupant enterprise shall report to the administrative agency pursuant to the Presidential Decree: Provided, That this provision shall not apply where the industrial area and factory, etc. are disposed of to an occupant enterprise. <Amended by Act No. 5091, Dec. 29, 1995; Act No. 5827, Feb. 8, 1999; Act No. 6842, Dec. 30, 2002>
(3) When the administrative agency transfers any industrial area and factory, etc. in the industrial facility area for which it has received the transfer or an application for the purchase of them under paragraph (1), the administrative agency may be paid the actual cost of selecting a transferee by a company that acquires by transfer such industrial area and factory, etc. under the conditions as prescribed by the Presidential Decree. <Newly Inserted by Act No. 6842, Dec. 30, 2002>
(4) The price for assignment of industrial area under paragraph (1) shall be determined by adding the interest, and costs prescribed by the Presidential Decree to the purchase price, and the price for assignment of the factory, etc. may be determined by taking into consideration the current appraisal price of a certified public appraiser as prescribed by the Public Notice of Values and Appraisal of Real Estate Act: Provided, That in case there is a request from the occupant enterprise, the transfer price of the industrial area may be an amount not more than the amount calculated by adding the interest and cost prescribed by the Presidential Decree to its acquisition price. <Amended by Act No. 5091, Dec. 29, 1995; Act No. 6842, Dec. 30, 2002; Act No. 7335, Jan. 14, 2005>
(5) In case that a person, who seeks to lease an industrial area or a factory from a lessor under Article 38-2 (1) or to take over an industrial area or a factory, etc. from another occupant enterprise under the proviso of paragraph (1) and paragraph (2), is not an occupant enterprise, he shall conclude a contract for occupancy under Article 38 (1) or (3): Provided, That the same shall not apply to a case where the person eager to take over it is the relevant agency. <Amended by Act No. 5827, Feb. 8, 1999>
(6) Matters necessary for the sale price and sale procedure, etc. of the industrial area and factory, etc. purchased by the relevant agency shall be determined by the Presidential Decree. <Amended by Act No. 5091, Dec. 29, 1995>
[This Article Newly Inserted by Act No. 4720, Jan. 7, 1994]

Article 39-2 (Division, etc. of Industrial Areas)
(1) In the event that it is intended to divide any industrial site (referring to one on which no building is erected) that is owned by the authorized administrator, the administrative agency or the business operator, such industrial area shall be divided into an area not less than the area prescribed by the Ordinance of the Ministry of Commerce, Industry and Energy. In this case, the administrative agency and the business operator shall consult with the authorized administrator thereabout in advance.
(2) In the event that any occupant enterprise intends to divide any industrial area (referring to one on which a building is erected) that he owns after establishing a factory thereon, such industrial area shall be divided into an area not less than the area prescribed by the Ordinance of the Ministry of Commerce, Industry and Energy. In this case the occupant enterprise shall consult with the administrative agency thereabout in advance.
(3) Any person who intends to divide an industrial area in accordance with paragraph (1) shall build the infrastructure prescribed by the Ordinance of the Ministry of Commerce, Industry and Energy that includes roads, water-supply facilities and tap-water and sewage systems, etc.
[This Article Newly Inserted by Act No. 6842, Dec. 30, 2002]

Article 40 (Acquisition of Industrial Area by Auction, etc.)
(1) In case a person, who has acquired an industrial area or a factory, etc. of another occupant enterprise through auction or under the provisions of other Acts, fails to conclude a contract for occupancy within a period prescribed by the Ordinance of the Ministry of Commerce, Industry and Energy, he shall turn over the industrial area and factory, etc. to a third person within a period prescribed by the Ordinance of the Ministry of Commerce, Industry and Energy.
(2) Any person who has acquired the industrial area and factory, etc. under paragraph (1) shall, if he intends to transfer them to any third party, make a report thereon to the administrative agency under the conditions as prescribed by the Presidential Decree: Provided, That this shall not apply to a case where he intends to dispose of the industrial area and factory, etc. to an occupant enterprise. <Amended by Act No. 6842, Dec. 30, 2002>
(3) In the event that any person who acquires the industrial area and factory, etc. under paragraph (1) is not an existing occupant enterprise, he shall enter into a contract for occupancy in advance in accordance with Article 38 (1) or (3): Provided, That the same shall not apply to a case where a person who intends to acquire is a relevant agency. <Newly Inserted by Act No. 6842, Dec. 30, 2002>
[This Article Wholly Amended by Act No. 5827, Feb. 8, 1999]

Article 41 (Recovery of Industrial Area)
Where parts of industrial area which were sold in lots to occupant enterprise or supporting agency, are not used for the purpose of contract for occupancy, the administrative agency may recover such area upon payment of the price regulated by the former part of Article 39 (4) in accordance with the Presidential Decree. <Amended by Act No. 4720, Jan. 7, 1994; Act No. 5091, Dec. 29, 1995>

Article 42 (Termination, etc. of Contract for Occupancy)
(1) Where the occupant enterprise or supporting agency falls within any of the following circumstances, the administrative agency shall order the occupant enterprise or supporting agency to rectify the situation within the period prescribed by the Presidential Decree, and where the occupant enterprise or supporting agency does not comply, it may terminate such a contract for occupancy: <Amended by Act No. 4541, Mar. 6, 1993; Act No. 4720, Jan. 7, 1994; Act No. 5091, Dec. 29, 1995; Act No. 5827, Feb. 8, 1999; Act No. 6842, Dec. 30, 2002>
1.Where, after concluding the contract for occupancy, the construction of the factory etc. is not commenced within the period prescribed by the Ordinance of the Ministry of Commerce, Industry and Energy in the absence of justifiable causes;
2.Where it is recognized that the completion of the factory etc. is in fact impossible;
3.Where in the absence of justifiable causes, the business has not commenced within one year after completion of the factory etc., or business has been suspended continuously for not less than one year;
4.Where the occupant enterprise or supporting agency has modified the matters prescribed by the Ordinance of the Ministry of Commerce, Industry and Energy, without concluding a contract of modification pursuant to Article 38 (2) (including cases in which it is applied mutatis mutandis by Article 38 (3));
5.Where the industrial areas and factories, etc. are leased or sold in violation of the provisions of Article 38-2 or Article 39 (1); and
6.Where the contract for occupancy as provided for in Articles 38 and 38-2 is breached.
(2) Persons whose contract for occupancy has been terminated under paragraph (1) shall immediately cease all business, except for such unfinished business etc. as prescribed by the Presidential Decree.
(3)Deleted. <by Act No. 5827, Feb. 8, 1999>
(4)Where the administrative agency has terminated the contract for occupancy pursuant to paragraph (1), the administrative agency shall notify the head of Si/Gun/Gu of the fact. <Newly Inserted by Act No. 4720, Jan. 7, 1994>
(5) The administrative agency shall, if it intends to terminate any contract for occupancy under paragraph (1), hear the opinion of a party to such contract in advance. <Newly Inserted by Act No. 6842, Dec. 30, 2002>

Article 43 (Property Disposition etc. upon Termination of Contract for Occupancy)
(1) A person, among the persons whose contracts for occupancy have been terminated for reasons falling under each of the subparagraphs of Article 42 (1), who has failed to complete the establishment of a factory, shall dispose of the industrial area and the factory, etc. in his possession under Article 39 (1) within a period prescribed by the Ordinance of the Ministry of Commerce, Industry and Energy. <Amended by Act No. 5827, Feb. 8, 1999>
(2) A person, among the persons whose contracts for occupancy have been terminated for reasons falling under each of the subparagraphs of Article 42 (1), who has completed the establishment of a factory, shall turn over the industrial area and the factory, etc. in his possession to another company or a relevant agency within a period prescribed by the Ordinance of the Ministry of Commerce, Industry and Energy after reporting it to the administrative agency under the conditions as prescribed by the Presidential Decree. The same shall apply to a person who has discontinued his business: Provided, That the same shall not apply to a case where he intends to sell the industrial area and the factory, etc. to an occupant enterprise. <Amended by Act No. 5827, Feb. 8, 1999; Act No. 6842, Dec. 30, 2002>
(3) The provisions of Article 39 (4) shall apply mutatis mutandis to the assignment price of the industrial area and factory, etc. as referred to in paragraphs (1) and (2). <Amended by Act No. 5091, Dec. 29, 1995>
(4) Industrial area and factory, etc. which are not assigned within the period prescribed by paragraph (2) may be purchased by the administrative agency at the price determined under Article 39 (4). <Amended by Act No. 5091, Dec. 29, 1995>
[This Article Wholly Amended by Act No. 4720, Jan. 7, 1994]

Article 44 (Support of Occupant Enterprises)
(1) The administrative agency may undertake support services prescribed by the Presidential Decree, such as the supply of market information, energy supply, the promotion of industrial labor relations, and vocational training, for the benefit of the occupant enterprises.
(2) Where the Small and Medium Enterprise Promotion Corporation or the Agricultural and Fisheries Products Distribution Corporation is requested by the administrative agency, occupant enterprise or supporting agency, such corporation may play a role in guiding management and technology (in the case of the Agricultural and Fisheries Products Distribution Corporation, this is limited to enterprises of the business of manufacturing agricultural and fisheries processing, and food and drink manufacturing goods and foodstuffs).

Article 45 (Safety Management of Industrial Complexes, etc.)
The administrative agency may, if necessary, guide occupant enterprises with respect to safety management, pollution control and environmental management, etc, under the conditions as prescribed by the Presidential Decree.
[This Article Wholly Amended by Act No. 6842, Dec. 30, 2002]

Article 45-2 (Program for Sophisticating Structure of Industrial Complexes)
(1) The authorized administrator may, if any industrial complex falls under any of the following subparagraphs, get the relevant administrative agency to map out a program for sophisticating the structure of the industrial complex:
1.Where changes in economic conditions and the urbanization of surrounding areas make it necessary to rearrange any existing industrial complex;
2.Where it become necessary to make a comprehensive improvement and upgrade of environment to support management activities carried out by occupant companies; and
3.Where the authorized administrator deems it necessary for the industrial development.
(2) The program for sophisticating the structure of industrial complexes (hereinafter referred to as the program for sophisticating the structure of industrial complexes) shall contain the matters falling under each of the following subparagraphs:
1.The current state of industrial complexes and the analysis of their competitiveness;
2.The selection of a strategy task designed to develop the industrial complexes;
3.The details and methods to facilitate the sophistication of the structure of industrial complexes;
4.Methods to facilitate the cluster by industry and industry with high growth potential; and
5.Other matters prescribed by the Presidential Decree.
(3) The program for sophisticating the structure of industrial complexes shall be approved by the authorized administrator.
(4) The authorized administrator shall, when he intends to grant approval under paragraph (3), go through deliberation thereon of the Council after consulting with the person authorized to designate the relevant industrial complex (limited to the case of any national industrial complex). The same shall apply to a case where he intends to alter his approval.
(5) The authorized administrator shall, when he approves the program for sophisticating the structure of industrial complexes, publish his approval. The same shall apply to a case where he alters his approval.
[This Article Wholly Amended by Act No. 6842, Dec. 30, 2002]



CHAPTER V-2 KOREANINDUSTRIAL COMPLEX CORPORATION


Article 45-3 (Establishment, etc. of Korean Industrial Complex Corporation)
(1) The Korean Industrial Complex Corporation (hereinafter referred to as the Corporation ) shall be established to support the development and management of industrial complexes and assist companies in their industrial activities. <Amended by Act No. 5827, Feb. 8, 1999>
(2) The Corporation shall be a juristic person created by the registration of incorporation at the seat of the main office.
(3) Entities other than the Corporation shall not use the title an Industrial Complex Corporation or any similar name.
(4) The government or person other than the government may provide funds necessary for the establishment and management of the Corporation.
[This Article Newly Inserted by Act No. 5240, Dec. 31, 1996]

Article 45-4 (Articles of Association)
(1) The following matters shall be recorded in the articles of association of the Corporation:
1.Purpose;
2.Name;
3.Matters concerning the main office, regional head offices, branch offices, training institutes, and other offices;
4.Matters concerning the officers and employees;
5.Matters concerning the board of directors;
6.Matters concerning the operations of the Corporation and the conduct thereof;
7.Matters concerning assets and accounting;
8.Matters concerning modification of the articles of association of the Corporation;
9.The method of public notification; and
10.Matters concerning the enactment of, and amendments to, and repeal of the regulations and provisions.
(2) Where the Corporation wishes to amend the articles of association, the Corporation shall obtain the permission of the Minister of Commerce, Industry and Energy. <Amended by Act No. 5827, Feb. 8, 1999>
[This Article Newly Inserted by Act No. 5240, Dec. 31, 1996]

Article 45-5 (Officers, etc.)
(1) The Corporation shall appoint the following officers:
1.One chief director;
2.One vice-chief director;
3.Not more than five directors; and
4.One auditor (meaning a part-time auditor; hereinafter the same shall apply).
(2) The chief director shall be appointed and dismissed by the Minister of Commerce, Industry and Energy, and the vice-chief director and other directors shall be appointed and dismissed by the chief director acting through the resolutions of the board of directors, upon receipt of approval from the Minister of Trade, Industry and Energy: Provided, That the ex officio director may be appointed in accordance with the provisions of the articles of association. <Amended by Act No. 5827, Feb. 8, 1999>
(3) The auditor shall be appointed and dismissed by the Minister of Trade, Industry and Energy. <Amended by Act No. 5827, Feb. 8, 1999>
(4) The terms of office of the chief director, the vice-chief director, the other directors and the auditor shall be three years, the terms of ex officio directors shall be the period for which they hold office. <Amended by Act No. 5827, Feb. 8, 1999>
(5) When the seat of an officer becomes vacant, the term of office of the substitute officer shall, with the exception of the ex officio director, be the remaining period of the previous officer.
[This Article Newly Inserted by Act No. 5240, Dec. 31, 1996]

Article 45-6 (Board of Directors)
(1) A board of directors shall be established in the Corporation for the resolution of important matters of the Corporation.
(2) The board of directors shall consist of the chief director, the vice-chief director, and directors.
(3) Necessary matters concerning the administration of the board of directors shall be prescribed by the articles of association.
[This Article Newly Inserted by Act No. 5240, Dec 31, 1996]

Article 45-7 (Operations)
(1) The Corporation shall perform businesses falling under each of the following subparagraphs to attain the objective as prescribed in Article 45-3 (1): <Amended by Act No. 5827, Feb. 8, 1999; Act No. 6842, Dec. 30, 2002>
1.The business of managing the industrial complex as prescribed in subparagraph 8 of Article 2;
2.The business of developing, building, selling and leasing the industrial complex;
3.The business of installing and operating factories, apartment-type factories, physical distribution facilities and supporting facilities, and selling and leasing them;
4.The business of promoting management-labor cooperation in occupant enterprises and handling matters related to the demand and supply of manpower;
5.The business of promoting welfare, educational programs and housing construction for the workers of the occupant enterprises;
6.The business of boosting the productivity and exports for the occupant enterprises;
7.The business of supporting matters related to the establishment of factory;
8.The business of relocating and collectivizing factories;
9.The business of gathering and disseminating information pertaining to the establishment of factory and the industrial complex, and conducting research and survey;
9-2.The business of sophisticating the structure of industrial complexes; and
10.Other business as prescribed by the Presidential Decree which aim for assisting occupant enterprises.
(2) The authorized administrator of each industrial complex may entrust the administrative affairs of the industrial complex to the Corporation upon consultation with the Minister of Commerce, Industry and Energy. <Amended by Act No. 5827, Feb. 8, 1999>
(3) Deleted. <by Act No. 5827, Feb. 8, 1999>
(4) The Corporation may, in carrying out activities under paragraph (1), act in mutual cooperation with local governments or relevant agencies such as the Small and Medium Enterprise Promotion Corporation or the Korean Chamber of Commerce and Industry, in respect of activities of support for the occupant enterprises. <Amended by Act No. 5827, Feb. 8, 1999>
(5) All necessary matters relating to cooperation with the local government and relevant agencies under paragraph (4) shall be prescribed by the Presidential Decree.
[This Article Newly Inserted by Act No. 5240, Dec. 31, 1996]

Article 45-8 (Loans)
Where the Corporation needs funds in order to carry out the activities referred to in Article 45-7, the Corporation may borrow such funds from both inside or outside the country in accordance with the provisions of the relevant Acts and subordinate statutes, upon the receipt of the approval of the Minister of Commerce, Industry and Energy. <Amended by Act No. 5827, Feb. 8, 1999>
[This Article Newly Inserted by Act No. 5240, Dec. 31, 1996]

Article 45-9 (Expenses)
The Corporation may, with the approval of the Minister of Commerce, Industry and Energy, charge those persons who have received the benefit of the activities of the Corporation, with the necessary expenses. <Amended by Act No. 5827, Feb. 8, 1999>
[This Article Newly Inserted by Act No. 5240, Dec. 31, 1996]

Article 45-10 (Budget and Settlement of Accounts)
(1) The Corporation shall draw up a budget for total revenue and expenditure for every financial year and receive the approval of the Minister of Commerce, Industry and Energy. This provision shall also apply in cases where the Corporation wishes to modify such budget. <Amended by Act No. 5827, Feb. 8, 1999>
(2) Where the Corporation seeks to obtain approval pursuant to paragraph (1), the Corporation shall submit the drafted budget bill to the Minister of Commerce, Industry and Energy at least twenty days prior to the commencement of the fiscal year. <Amended by Act No. 5827, Feb. 8, 1999>
(3) The Corporation shall draw up and submit an annual statement of accounts to the Minister of Commerce, Industry and Energy within three months of the conclusion of the fiscal year. <Amended by Act No. 5827, Feb. 8, 1999>
(4) Where the annual settlement of accounts results in a profit for the Corporation, such profits shall be applied to losses carried over from previous year and the remaining profits shall be reserved in the way prescribed by the Minister of Commerce, Industry and Energy. <Amended by Act No. 5827, Feb. 8, 1999>
[This Article Newly Inserted by Act No. 5240, Dec. 31, 1996]

Article 45-11 (Guidance and Supervision of Operations)
(1) The Minister of Commerce, Industry and Energy shall guide and supervise the operations of the Corporation, and may, where necessary, issue directions or orders to the Corporation concerning the operations. <Amended by Act No. 5827, Feb. 8, 1999>
(2) All necessary matters concerning guidance and supervision by the Minister of Commerce, Industry and Energy shall be determined by the Presidential Decree. <Amended by Act No. 5827, Feb. 8, 1999>
[This Article Newly Inserted by Act No. 5240, Dec. 31, 1996]



CHAPTER VI SUPPLEMENTARY PROVISIONS


Article 46 (Tax Reductions and Exemptions)
The State or local government may make reductions or exemptions regarding corporate tax, income tax, acquisition tax, property tax and registration tax as prescribed by the Restriction of Special Taxation Act, in order to facilitate the systematic establishment of industrial sites and to attract occupant enterprises and supporting agencies into industrial complexes. <Amended by Act No. 5091, Dec. 29, 1995; Act No. 6842, Dec. 30, 2002>

Article 47 (Funding)
The State or local government may take such measures as are necessary regarding the supply of funds for the smooth establishment of industrial sites, and the attraction of occupant enterprises and supporting agencies into industrial complexes. <Amended by Act No. 5091, Dec. 29, 1995; Act No. 6842, Dec. 30, 2002>

Article 48 (Reports and Inspections)
(1) The Minister of Commerce, Industry and Energy may order the Mayor/Do governor, the Mayor/Do governor may order the head of Si/Gun/Gu and the head of Si/Gun/Gu may order the owner or possessor of the factory, respectively, to submit the necessary reports or materials regarding the site, construction and registration of the factory as prescribed by the Ordinance of the Ministry of Commerce, Industry and Energy, and may order the inspection of such reports or materials by public officials within his jurisdiction. <Amended by Act No. 4541, Mar. 6, 1993; Act No. 5091, Dec. 29, 1995; Act No. 5827, Feb. 8, 1999; Act No. 6842, Dec. 30, 2002>
(2) The Minister of Commerce, Industry and Energy may order the administrative agencies, occupant enterprises, supporting agencies, and the Mayor/Do governor may order the administrative agencies, occupant enterprises, supporting agencies of general industrial complexes and urban high-tech industrial complexes and the head of Si/Gun/Gu, and the head of Si/Gun/Gu may order the administrative agencies, occupant enterprises and supporting agencies of the agricultural and industrial complexes, respectively, to make necessary reports or to submit materials regarding the management of the industrial complex as prescribed by the Ordinance of the Ministry of Commerce, Industry and Energy, and may have a public official within his jurisdiction inspect the activities concerning the management of the industrial complex. <Amended by Act No. 4541, Mar. 6, 1993; Act No. 5091, Dec. 29, 1995; Act No. 5827, Feb. 8, 1999; Act No. 6842, Dec. 30, 2002>
(3) The public officials who carry out inspections pursuant to paragraphs (1) and (2) shall carry a certificate of identification and show it to those persons concerned.
(4) All necessary matters regarding reports and inspections under paragraphs (1) through (3) shall be determined by the Ordinance of the Ministry of Commerce, Industry and Energy. <Amended by Act No. 4541, Mar. 6, 1993; Act No. 5091, Dec. 29, 1995; Act No. 5827, Feb. 8, 1999>

Article 49 (Guidance and Supervision)
(1) The Minister of Commerce, Industry and Energy may guide and supervise the Mayor/Do governor, the head of Si/Gun/Gu, and owner or possessor of a factory, in respect of all necessary matters concerning the site, construction and registration etc. of the factory as prescribed by the Ordinance of the Ministry of Commerce, Industry and Energy. <Amended by Act No. 4541, Mar. 6, 1993; Act No. 5091, Dec. 29, 1995; Act No. 5827, Feb. 8, 1999>
(2) The Minister of Commerce, Industry and Energy may guide and supervise the administrative agencies, occupant enterprises and supporting agencies in respect of all necessary matters concerning the management etc. of the industrial complex as prescribed by the Ordinance of the Ministry of Commerce, Industry and Energy. <Amended by Act No. 4541, Mar. 6, 1993; Act No. 5091, Dec. 29, 1995; Act No. 5827, Feb. 8, 1999>

Article 50 (Restrictions on Permission, etc. for Construction)
The Mayor/Do governor or the head of Si/Gun/Gu shall not give permission, etc. for construction or operation, etc. of a factory as prescribed by the relevant Acts and subordinate statutes, to those persons who do not obtain approval regarding the new establishment, expansion or transfer of factories, or change of business type as prescribed by this Act.
[This Article Wholly Amended by Act No. 5091, Dec. 29, 1995]

Article 51 (Delegation and Entrustment of Authority)
Part of the authority of the Minister of Commerce, Industry and Energy prescribed under this Act may be delegated or entrusted to the head of a central administrative agency, Mayor/Do governor, the head of Si/Gun/Gu as prescribed by the Presidential Decree. <Amended by Act No. 5827, Feb. 8, 1999>
[This Article Wholly Amended by Act No. 5091, Dec. 29, 1995]

Article 51-2 (Hearing)
Where the head of Si/Gun/Gu desires to make such a disposition falling under any of the following subparagraphs, he shall hold a hearing: <Amended by Act No. 5827, Feb. 8, 1999>
1.Revocation of approval for the establishment, etc. of a factory under Article 13-5;
2.Revocation of approval for the installation of manufacturing facilities under Article 14-4;
3.Revocation of the registration of a factory under Article 17; and
4.Revocation of approval under Article 20 (6).
[This Article Wholly Amended by Act No. 5453, Dec. 13, 1997]



CHAPTER VII PENAL PROVISIONS


Article 52 (Penal Provisions)
Any person falling under each of the following subparagraphs shall be punished by imprisonment for not more than three years or a fine not exceeding fifteen million won: <Amended by Act No. 4720, Jan. 7, 1994; Act No. 5091, Dec. 29, 1995; Act No. 5827, Feb. 8, 1999>
1.Deleted; <by Act No. 5091, Dec. 29, 1995>
2.A person who has newly established or expanded a factory, or altered the business type without obtaining approval in violation of Article 13 (1), or altered approved matters without obtaining approval for the alteration (including a case that is applied mutatis mutandis under Article 28-2 (1));
2-2.A person who has installed manufacturing facilities without obtaining approval in violation of Article 14-3 (1);
3. A person who has newly established, expanded or relocated a factory in violation of Article 20 (1) and (2), or altered the business type, or approved matters without obtaining approval for the alteration.
4. through 6. Deleted; <by Act No. 5827, Feb. 8, 1999>


7.A person who has managed a manufacturing or any other business without concluding a contract for occupancy under Article 38 (1) or (3);
8.A person who has transferred the industrial area or factory, etc. in violation of Article 39 (1);
9.Deleted; <by Act No. 5827, Feb. 8, 1999>
10.A person who has continued to do the business in violation of Article 42 (2); and
11.Deleted. <by Act No. 5827, Feb. 8, 1999>

Article 53 (Penal Provisions)
Any person falling under each of the following provisions shall be punished with a fine not exceeding fifteen million won:
1.A person who has sold an apartment-type factory in violation of Article 28-3 (3);
2.A person who has sold an apartment-type factory without obtaining approval under Article 28-4 (1);
3.A person who has breached the duties as prescribed in Article 28-7 (1); and
4.A person who has engaged in the manufacturing business or other business without concluding an alteration contract in violation of Article 38 (2).
[This Article Wholly Amended by Act No. 5827, Feb. 8, 1999]

Article 54 (Joint Penal Provisions)
Where the representative of a juristic person, or the agent, servant or other employee of the juristic person or individual commits a violation of Article 52 or 53 in respect of the business of the juristic person or individual, the fine under each Article shall be imposed on such juristic person or individual in addition to punishment of the actual violator.

Article 55 (Fine for Negligence)
(1) Any person falling under each of the following subparagraphs shall be subject to a fine for negligence not exceeding five million won: <Amended by Act No. 5827, Feb. 8, 1999; Act No. 6842, Dec. 30, 2002>
1.A person who has engaged in the business of leasing industrial areas and factories, etc. in violation of Article 38 (2);
2.A person who has transferred an industrial area or a factory, etc. without making a report in violation of Articles 39 (2), 40 (2) or 43 (2);
3.A person who has failed to transfer an industrial area or a factory, etc. in violation of Article 40 (1);
4.A person who has failed to transfer an industrial area or a factory, etc. within a period prescribed by Article 43 (1) and (2);
5.A person who has transferred an industrial area or a factory, etc. in violation of Article 43 (1) and (2); and
6.A person who has rejected, obstructed or skirted inspections under Article 48 (1) or (2).
(2) Any person falling under each of the following subparagraphs shall be subject to a fine for negligence not exceeding two million won: <Amended by Act No. 5827, Feb. 8, 1999; Act No. 6842, Dec. 30, 2002>
1.A person who has altered approved matters without making a report on such alteration required under the proviso of Article 13 (1), the proviso of Article 14-3 (1) and the proviso of Article 20 (2);
2.A person who has run a factory without reporting on the completion of the establishment of a factory under Article 15 or after making a false report;
3. A person who has partially run a factory without registering a partial operation of the factory under Article 16 (3);
4.A person who has altered registered matters without making an alteration registration under Article 16 (4);
5.A person who has not reported or falsely reported under Article 28-6 (2);
6.A person who has not reported or falsely reported under Article 35-2 (1); and
7.A person who has not reported or falsely reported under Article 48 (1) or (2).
(3) The fine for negligence provided for in paragraphs (1) and (2) shall be imposed and collected by the Minister of Commerce, Industry and Energy (referring to the heads of central administrative agencies, the Mayor/Do governor and the head of Si/Gun/Gu if the authority is delegated or commissioned to them under Article 51; the same in this Article shall apply), the Mayor/Do governor and the head of Si/Gun/Gu under the conditions as prescribed by the Presidential Decree. <Amended by Act No. 5091, Dec. 29, 1995; Act No. 5827, Feb. 8, 1999; Act No. 6842, Dec. 30, 2002>
(4) Persons who object to the disposition of a fine for negligence pursuant to paragraph (3) may raise an objection to the Minister of Commerce, Industry and Energy, the Mayor/Do governor and the head of Si/Gun/Gu within thirty days from the date of receiving the notice of its disposition. <Amended by Act No. 4541, Mar. 6, 1993; Act No. 4720, Jan. 7, 1994; Act No. 5091, Dec. 29, 1995; Act No. 5827, Feb. 8, 1999; Act No. 6842, Dec. 30, 2002>
(5) Where persons notified of the disposition of a fine for negligence under paragraph (3) raise an objection under paragraph (4), the Minister of Commerce, Industry and Energy, the Mayor/Do governor and the head of Si/Gun/Gu shall give notice of that fact to the competent court without delay, and courts which receive such notice shall deliver judgment on the fine for negligence in accordance with the Non-Contentious Case Litigation Procedure Act. <Amended by Act No. 4541, Mar. 6, 1993; Act No. 4720, Jan. 7, 1994; Act No. 5091, Dec. 29, 1995; Act No. 5827, Feb. 8, 1999; Act No. 6842, Dec. 30, 2002>
(6) Where the fine for negligence has not been paid and an objection has not been raised within the period prescribed under paragraph (4), the fine shall be collected in accordance with procedures such as those for the collection of national or local tax in arrears. <Amended by Act No. 4720, Jan. 7, 1994>



ADDENDA


Article 1 (Enforcement Date)
This Act shall enter into force of one year after the date of its promulgation: Provided, That the provisions of Article 3 of the Addenda shall enter into force on the date of its promulgation.

Article 2 (Repealed Acts)
The Industrial Placement Act and the Industrial Complex Management Act are each hereby repealed.

Article 3 (Registration of Existing Factory)
The head of Si/Gun/Gu may hand over the certificate of factory registration prescribed by Article 16 (1) to the possessor or owner of the factory who received the certificate of business registration under Article 5 of the Value-Added Tax Act before December 31, 1989, in accordance with the objects, standards and procedure, etc. determined by the Minister of Trade, Industry and Energy in consultation with the head of the administrative agency concerned.

Article 4 (Transitional Measures regarding Basic Program, etc. for Industrial Placement)
(1) The basic program for industrial placement in respect of which notification had been issued pursuant to the previous Industrial Placement Act at the time this Act enters into force, shall be regarded as the basic program for industrial placement as prescribed by Article 3.
(2) The standards for factory sites in respect of which notice had been issued pursuant to the provisions of the previous Industrial Placement Act at the time this Act enters into force, shall be regarded as the standards of factory sites as prescribed under Article 8 (1).
(3) Factories which had given notice of establishment, received permission for new establishment, expansion or transfer, and had given notice of transfer of the factory in accordance with the provisions of the previous Industrial Placement Act at the time this Act enters into force, shall be regarded as factories which have given notice of establishment, received permission for new establishment, expansion or transfer, and have given notice of transfer of the factory as prescribed by Articles 13 (1), 20 (2) and 21 (1).
(4) Factories registered as existing factories pursuant to the previous Industrial Placement Act at the time this Act enters into force, shall be regarded as factories which are registered in accordance with the provisions of Article 16 (1).
(5) Promotional zones designated under the previous Industrial Placement Act at the time of this Act enters into force, shall be regarded as promotional zones designated pursuant to Article 23.

Article 5 (Transitional Measures regarding Industrial Complexes etc.)
(1) Industrial complexes which were subject to the application of the previous Industrial Complex Management Act at the time this Act enters into force, shall be regarded as industrial complexes as prescribed by subparagraph 6 of Article 2.
(2) Occupant enterprises and supporting agencies prescribed by the previous Industrial Complex Management Act at the time this Act enters into force, shall be regarded as occupant enterprises and supporting agencies as prescribed by subparagraphs 8 and 9 of Article 2.
(3) The Industrial Complex Management Corporation established pursuant to the previous Industrial Complex Management Act at the time of this Act enters into force, shall be regarded as the Industrial Complex Administrative Corporation prescribed by Article 31 (2).
(4) Industrial complex areas and zones classified by use which were proclaimed under the previous Industrial Complex Management Act at the time this Act enters into force, shall be regarded as industrial complex areas and zones classified by use which were proclaimed under Article 34 (3).

Article 6 (Transitional Measures regarding Agricultural and Industrial Complexes)
Matters relating to agricultural and industrial areas, as amongst those matters which were the subject of deliberation and resolution by the Central Committee for the Development of Income Sources for Agricultural and Fishing Villages pursuant to Article 24 of the Act for the Promotion and Development of Income Sources for Agricultural and Fishing Villages, shall be regarded as matters which have been deliberated and resolved by the Industrial Placement Policy Committee as prescribed under Article 5.

Article 7 Omitted.
Article 8 (Relationship with Other Acts)
Where an Act or its provisions repealed pursuant to Article 2 of this Addenda is cited in other Acts and subordinate statutes at the time this Act enters into force, those Acts and subordinate statutes shall be regarded as citing this Act or the relevant provisions of this Act where the relevant provisions are included in this Act.



ADDENDA <Act No. 4381, May 31, 1991>


Article 1 (Enforcement Date)
This Act shall enter into force one year after the date of its promulgation.

Articles 2 through 7 Omitted.










ADDENDA <Act No. 4419, Dec. 14, 1991>


Article 1 (Enforcement Date)
This Act shall enter into force on July 1, 1992. (Proviso Omitted.)

Articles 2 through 8 Omitted.











ADDENDA <Act No. 4429, Dec. 14, 1991>


Article 1 (Enforcement Date)
This Act shall enter into force one year after the date of its promulgation.

Articles 2 through 6 Omitted.










ADDENDA <Act No. 4541, Mar. 6, 1993>


Article 1 (Enforcement Date)
This Act shall enter into force on the date of its promulgation. (Proviso Omitted.)

Articles 2 through 5 Omitted.












ADDENDA <Act No. 4574, Aug. 5, 1993>


Article 1 (Enforcement Date)
This Act shall enter into force three months after the date of its promulgation.

Articles 2 through 5 Omitted.









ADDENDA <Act No. 4720, Jan. 7, 1994>


Article 1 (Enforcement Date)
This Act shall enter into force three months after the date of its promulgation.

Article 2 (Transitional Measures regarding Permission, etc. for Establishment, Expansion, etc. of Factories)
(1) Persons who had received permission for the new establishment, expansion or transfer of factories within transfer promotion zones or restricted adjustment zones prior to the entry into force of this Act, shall be regarded as having received permission for the new establishment, expansion or transfer of factories in restricted population zones.
(2) Persons who were issued with a factory establishment notification certificate, or who had received permission, authorization and approval regarding the new establishment, expansion or transfer of factories in promotional development zones, reserved development zones, or environmental conservation zones pursuant to the Seoul Metropolitan Area Readjustment Planning Act prior to the entry into force of this Act, shall be regarded as having received permission, etc. for the new establishment, expansion or transfer of factories in growth administration zones or environmental protection zones.

Article 3 (Transitional Measures regarding Certificate of Factory Registration)
Certificates of factory registration which were issued to occupant enterprises of industrial complexes pursuant to the previous provisions prior to the entry into force of this Act, shall be regarded as having been issued by the administrative agency as prescribed by Article 16.

Article 4 (Transitional Measures regarding Amendment of Penal Provisions)
In the application of penal provisions to acts committed prior to the entry into force of this Act, the previous provisions shall apply.

Article 5 Omitted.





ADDENDA <Act No. 4825, Dec. 22, 1994>


Article 1 (Enforcement Date)
This Act shall enter into force on July 1, 1995. (Proviso Omitted.)

Articles 2 through 13 Omitted.











ADDENDA <Act No. 4919, Jan. 5, 1995>


Article 1 (Enforcement Date)
This Act shall enter into force one year after the date of its promulgation: Provided, That the provisions of Articles 47 (1) 3 and 47 (3), and the provision of Article 6 of the Addenda shall enter into force on the date of its promulgation.

Articles 2 through 7 Omitted.














ADDENDA <Act No. 4970, Aug. 4, 1995>


Article 1 (Enforcement Date)
This Act shall enter into force six months after the date of its promulgation.

Articles 2 through 8 Omitted.










ADDENDA <Act No. 5091, Dec. 29, 1995>


Article 1 (Enforcement Date)
This Act shall enter into force six months after the date of its promulgation.

Article 2 (Transitional Measures regarding Matters to be Considered by Industrial Sites Policy Committee)
Matters considered and resolved by the Industrial Sites Policy Committee pursuant to previous provisions at the time of the this Act enter into force, shall be regarded as having been considered and resolved by the Industrial Placement Policy Committee pursuant to the amended provisions of Article 5.

Article 3 (Transitional Measures regarding Notification, etc. of New Establishment, Expansion, etc. of Factories)
The receipt of notification, approval or permission regarding the new establishment, expansion, transfer of factories or change of business type as prescribed by the previous provisions of Article 13 (1) and (3), 18 (1), 20 (2) and (4), or 29 (2) at the time this Act enters into force, shall be regarded as approval pursuant to the amended provisions of Article 13 (1), 20 (2) or 29 (2).

Article 4 (Transitional Measures regarding Reports on Completion of Factories)
Factories which had submitted reports on the completion of their establishments as prescribed by previous provisions at the time this Act enters into force, shall be considered as having given reports on the completion of establishment, etc. of a factory in accordance with the amended provisions of Article 15.

Article 5 (Transitional Measures regarding Name Changes of Industrial Complexes etc.)
(1) Industrial complexes that existed at the time this Act enters into force, shall be regarded as industrial complexes as prescribed by this Act.
(2) The Industrial Complex Management Corporation that existed at the time this Act enters into force, shall be regarded as the Industrial Complex Management Corporation as prescribed by this Act.

Article 6 (Transitional Measures regarding Penal Provisions)
In the application of penal provisions to acts committed prior to the entry into force of this Act, the previous provisions shall apply.

Article 7 Omitted.
ADDENDA <Act No. 5109, Dec. 29, 1996>


Article 1 (Enforcement Date)
This Act shall enter into force on January 1, 1996. (Proviso Omitted.)

Articles 2 and 3 Omitted.









ADDENDA <Act No. 5240, Dec. 31, 1996>


Article 1 (Enforcement Date)
This Act shall enter into force on the date of its promulgation: Provided, That the amended provisions of subparagraph 6 of Article 2 shall enter into force three months after the date of its promulgation.

Article 2 (Transitional Measures regarding Apartment-Type Factories)
Apartment-type factories which had received approval for establishment pursuant to the previous provisions at the time this Act enters into force, shall be regarded as apartment-type factories in accordance with this Act.

Article 3 (Transitional Measures regarding Administrative Costs of Industrial Complexes)
Administrative costs collected from persons who occupied industrial area without receiving permission for use prior to authorization of completion under Article 37 (7) of the Industrial Site and Development Act, as amongst those persons who had concluded a contract for occupancy for the industrial complex being constructed at the time this Act enters into force, shall be returned within 90 days from the enforcement date of this Act.

Article 4 (Transitional Measures regarding Modifications to Municipal-Type Factories)
Factories of the municipal model type as prescribed by previous provisions at the time this Act enters into force, shall be regarded as municipal-type factories in accordance with the amended provisions of Article 28.

Article 5 (Preparation for Establishment of Corporation)
(1) The Minister of Trade, Industry and Energy shall appoint an establishment commission of not more than 7 members within thirty days after the enforcement of this Act , and charge this commission with the management of affairs concerning the establishment of the corporation.
(2) The establishment commission shall receive the authorization of the Minister of Trade, Industry and Energy in the drafting of the articles of association of the corporation.
(3) Where the establishment commission has received authorization pursuant to paragraph (2), the commission shall, without delay, turn over the duties to the chief director upon registration of the establishment of the corporation by joint signature.
(4) The establishment commissioners shall be regarded as decommissioned from office from the date of commencement of business by the corporation.
(5) Expenses incurred in the establishment of the corporation shall be borne by the Korean Industrial Complex Administrative Corporations an incorporated association.

Article 6 (Transitional Measures regarding Succession to Rights and Duties of Korean Export Industry Corporation)
(1) Juristic persons falling within the following provisions, which were established pursuant to Article 31 at the time this Act enters into force, may apply to the Minister of Trade, Industry and Energy for approval of succession by the corporation established in accordance with the amended provisions of Article 45-3, to all the rights and duties prescribed by resolutions of the board of directors:
1.The Korean Export Industry Corporation;
2.The Western Industrial Complex Administrative Corporation;
3.The Central Industrial Complex Administrative Corporation;
4.The South-eastern Industrial Complex Administrative Corporation; and
5.The South-western Industrial Complex Administrative Corporation.
(2) Where the juristic person referred to in paragraph (1) receives the authorization of the Minister of Trade, Industry and Energy pursuant to paragraph (1), that juristic person shall be regarded as dissolved at the same time as the establishment of the Corporation under the amended provisions of Article 45-3, despite the articles of association of the juristic person in question, or the provisions of the Civil Act regarding dissolution and liquidation. The Corporation established pursuant to the amended provisions of Article 45-3 shall succeed to all rights and duties of each juristic person.

Article 7 (Applied Examples regarding Lotting-Out, etc. of State or Public Apartment-Type Factories)
The amended provisions of Article 29 (5) shall also apply to cases where the State or local government intends to acquire prepared housing sites under the Housing Site Development Promotion Act at preparation cost price before the enforcement of this Act, and construct, lot-out or lease apartment-type factories on the State or public area concerned.

Article 8 Omitted.





Article 9 (Relationship with Other Acts and Subordinate Statutes)
Where factories of the municipal type as prescribed in previous provisions are cited in other Acts and subordinate statutes at the time this Act enters into force, such Acts and subordinate statutes shall be regarded as citing municipal-type factories as prescribed in the amended provisions of Article 28.

Article 10 (Transitional Measures regarding Factories in Process of Applying for Approval for Establishment, etc. of Factory)
Applications for authorization of the establishment, etc. of a factory prescribed by previous provisions at the time this Act enters into force, shall be regarded as applications for authorization of the establishment etc. of a factory in accordance with this Act.



ADDENDA <Act No. 5453, Dec. 13, 1997>


Article 1 (Enforcement Date)
This Act shall enter into force on January 1, 1998. (Proviso Omitted.)

Article 2 Omitted.



ADDENDUM <Act No. 5454, Dec. 13, 1997>


This Act shall enter into force on January 1, 1998.



ADDENDA <Act No. 5499, Jan. 13, 1998>


Article 1 (Enforcement Date)
(1) This Act shall enter into force on April 1, 1998. (Proviso Omitted.)
(2) Omitted.

Articles 2 through 10 Omitted.










ADDENDA <Act No. 5544, May 25, 1998>


Article 1 (Enforcement Date)
This Act shall enter into force one month after the date of its promulgation.

Articles 2 through 4 Omitted.








ADDENDA <Act No. 5827, Feb. 8, 1999>


Article 1 (Enforcement Date)
This Act shall enter into force six months after the date of its promulgation.

Article 2 (Transitional Measures concerning the Industrial Site Center)
The industrial Site Center established under the previous provisions of Article 7 (1) at the time of enforcing this Act shall be deemed the Industrial Site Center established by a corporation or an organization designated by the Minister of Commerce, Industry and Energy under the amended provisions of Article 7 (1).

Article 3 (Transitional Measures concerning Coerced Sale of Redundant Industrial Sites)
The redundant industrial sites in the process of coerced sale under the previous provisions of Article 12 at the time of enforcing this Act shall be dealt with according to the previous provisions.

Article 4 (Transitional Measures concerning Factories Ordered to Relocate)
Factories ordered to relocate from the restricted population zone under the previous provisions of Article 22 at the time of enforcing this Act shall be dealt with according to the previous provisions.

Article 5 (Transitional Measures concerning Approval for Draft Public Notice on Recruitment of Apartment-Type Factory)
The approval obtained at the time of enforcing this Act for a public notice on the recruitment of an apartment-type factory shall be deemed to have been obtained or notified thereon under the amended provisions of Article 28-4.

Article 6 (Transitional Measures concerning Term of Auditor of Corporation)
The term of an auditor of the Corporation at the time of enforcing this Act shall be dealt with according to the previous provisions notwithstanding the amended provisions of Article 45-5 (4) and his term shall reckon from the length during which he has held office under the previous provisions.

Article 7 (Transitional Measures concerning Penal Provisions)
The application of the penal provisions to acts performed before the enforcement of this Act shall be dealt with according to the previous provisions.

Article 8 Omitted.
ADDENDA <Act No. 6193, Jan. 21, 2000>


Article 1 (Enforcement Date)
This Act shall enter into force on July 1, 2000.

Articles 2 through 7 Omitted.










ADDENDA <Act No. 6194, Jan. 21, 2000>


Article 1 (Enforcement Date)
This Act shall enter into force three months after the date of its promulgation.

Articles 2 through 4 Omitted.










ADDENDA <Act No. 6406, Jan. 29, 2001>


Article 1 (Enforcement Date)
This Act shall enter into force on July 1, 2001.

Articles 2 and 3 Omitted.









ADDENDA <Act No. 6452, Mar. 28, 2001>


Article 1 (Enforcement Date)
This Act shall enter into force on January 1, 2002.

Articles 2 through 6 Omitted.









ADDENDA<Act No. 6654, Feb. 4, 2002>


Article 1 (Enforcement Date)
This Act shall enter into force on January 1, 2003.

Articles 2 through 7 Omitted.










ADDENDA<Act No. 6727, Aug. 26, 2002>


Article 1 (Enforcement Date)
This Act shall enter into force one year after the date of its promulgation.

Articles 2 through 9 Omitted.









ADDENDA<Act No. 6841, Dec. 30, 2002>


Article 1 (Enforcement Date)
This Act shall enter into force nine months after the date of its promulgation.

Articles 2 through 12 Omitted.












ADDENDA <Act No. 6842, Dec. 30, 2002>


Article 1 (Enforcement Date)
This Act shall enter into force on July 1, 2003.

Article 2 (Application Example concerning Division of Industrial Area)
The amended provisions of Article 30-2 shall apply, starting with any industrial area that is divided first after the enforcement of this Act.

Article 3 (Application Example concerning Report on Transfer of Industrial Area, etc.)
The amended provisions of Articles 40 (2) and 43 (2) shall apply, starting with any industrial area that is transferred first after the enforcement of this Act.

Article 4 (Transitional Measure concerning Formulation of Basic Program for Developing Industrial Cluster)
The basic program for developing the industrial cluster that is to be mapped out first in accordance with the amended provisions of Article 3 after the enforcement of this Act shall be mapped out by September 30, 2003.

Article 5 (Transitional Measure concerning Center for Supporting Factory Establishment)
The factory establishment center under the previous provisions of Article 7 (2) at the time of enforcement of this Act shall be deemed the center for supporting factory establishment under the amended provisions of Article 7-2.

Article 6 (Transitional Measures concerning Acquisition of Industrial Area through Auction, etc.)
Any person who acquires any industrial area, etc. in accordance with the previous provisions of Article 40 (1) at the time of enforcement of this Act shall be governed by the previous provisions, notwithstanding the amended provisions of Article 40 (2).

Article 7 Omitted.
Article 8 (Relation with Other Acts)
In case where the previous Industrial Placement and Factory Construction Act or the provisions thereof are quoted in other Acts at the time of the enforcement of this Act and if there exist the provisions corresponding thereto in this Act, the corresponding provisions of this Act shall be deemed quoted.



ADDENDA <Act No. 6893, May 29, 2003>


Article 1 (Enforcement Date)
This Act shall enter into force one year after the date of its promulgation.

Articles 2 through 6 Omitted.
















ADDENDA <Act No. 7140, Jan. 29, 2004>


Article 1 (Enforcement Date)
This Act shall enter into force six months after the date of its promulgation.

Articles 2 through 8 Omitted.








ADDENDA <Act No. 7281, Dec. 31, 2004>


Article 1 (Enforcement Date)
This Act shall enter into force on January 1, 2005. (Proviso Omitted.)

Articles 2 through 5 Omitted.








ADDENDA <Act No. 7291, Dec. 31, 2004>


Article 1 (Enforcement Date)
This Act shall enter into force six months after the date of its promulgation. (Proviso Omitted.)

Articles 2 through 7 Omitted.










ADDENDA <Act No. 7292, Dec. 31, 2004>


Article 1 (Enforcement Date)
This Act shall enter into force one year after the date of its promulgation. (Proviso Omitted.)

Articles 2 through 12 Omitted.












ADDENDA <Act No. 7335, Jan. 14, 2005>


Article 1 (Enforcement Date)
This Act shall enter into force on the date of its promulgation.

Articles 2 through 12 Omitted.











ADDENDA <Act No. 7459, Mar. 31, 2005>


Article 1 (Enforcement Date)
This Act shall enter into force one year after the date of its promulgation.

Articles 2 through 6 Omitted.











ADDENDA <Act No. 7638, Jul. 29, 2005>


Article 1 (Enforcement Date)
This Act shall enter into force six months after the date of its promulgation. (Proviso Omitted.)

Articles 2 through 17 Omitted.










ADDENDA <Act No. 7678, Aug. 4, 2005>


Article 1 (Enforcement Date)
This Act shall enter into force one year after the date of its promulgation.

Articles 2 through 12 Omitted.


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