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TRUCK TRANSPORTATION BUSINESS ACT

[Effective Jul. 14, 2008] [Act No. 8980, Mar. 21, 2008, Amendment of Other Act] Ministry of Land, Transport and Maritime Affairs (Logistics Industry Division) 02-2110- 6361

CHAPTER I GENERAL PROVISIONS

Article 1 (Purpose)

The purpose of this Act is to help facilitate freight forwarding by the efficient management and sound development of the truck transportation business and thereby contribute to the promotion of public welfare.

Article 2 (Definitions)

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

1. The term "trucks" means trucks and special automobiles as prescribed in Article 3 of the Automobile Management Act and defined by the Ordinance of the Ministry of Land, Transport and Maritime Affairs.

2. The term "truck transport business" means truck transportation business,motor freight forwarding business and truck transportation affiliated business.

3. The term "truck transportation business" means commercial business for carrying freight with compensation by using trucks in response to requests from other persons. In this case, if any shipper rides in a truck with his freight, the freight shall be inappropriate to be loaded into any automobile for passenger transport service in consideration of its weight, volume and shape, and necessary matters concerning standards therefor and automobiles subject to such freight shall be prescribed by the Ordinance of the Ministry of Land, Transport and Maritime Affairs.

4. The term "motor freight forwarding business" means commercial business which a forwarder acts as a broker or an agent for freight transportation contract with compensation in response to requests from other persons or transports freight under his own name and on his own account by using freight transport means of other person who run truck transportation business or truck transportation affiliated business.

5. The term "truck transportation affiliated business" means commercial business which an operator transports freight with compensation in response to requests from other persons by using his own trucks or requests an assigned truck transportatio affiliated member ( Limited to the affiliated members which are transportation business operators under Article 3 (3)) to transport freight.

6. The term "truck transportation affiliated business operator" means a person who has obtained a license of the truck transportation affiliated business under the provisions of Article 29 (1).

7. The term "truck transportation affiliated business member" means a person who has joined as a transportation affiliated member of a truck transportation affiliated business operator (hereinafter referred to as "transportation affiliated business operator"), and has obtained a right of using of the said business mark (including trade name and trademark, etc. Hereinafter the same shall apply), and who falls under any of the following items.

(a) A transportation business operator under Article 3 (3) who transports the freights assigned from a transportation affiliated business operator , or transports freight in response to requests from those other than the said operator; (b) A freight forwarding business operator under Article 24 (2) who acts as a broker or an agent for freight transportation contract of a transportation affiliated business operator or provides motor freight forwarding business for those other than transportation affiliated business operator.

8. The term "transportation service employees" means such personnel as truck drivers, clerks who handle office works concerning freight transportation or freight forwarding business and assistants who provide assistance, and other persons engaged in truck transportation business.

9. The term "public managed truck depot" means a depot which is provided for a truck transpor business by Special Metropolitan City Mayor, Metropolitan City Mayor, Do governor and Special Autonomous Do governor (hereinafter referred to as "Mayor/Do governor") or the head of City/Gun/Gu (referring to the head of autonomous Gu. Hereinafter the same shall apply). CHAPTER 2 TRUCK TRANSPORTATION BUSINESS

Article 3 (License, etc. of Truck transportation Business) (1) Any person who intends to operate the truck transportation business shall obtain a license from the Minister of Land, Transport and Maritime Affairs under the conditions as prescribed by the Ordinance of the Ministry of Land, Transport and Maritime Affairs.

(2) Any person who has obtained a license of truck transportation affiliated business under the provisions of Article 29 (1) shall be exempted from obtaining a license under the provisions of paragraph (1).

(3) In case a person who has obtained a license of truck transportation business under the provisions of paragraph (1) (hereinafter referred to as "transportation business operator") intends to alter any licensed matter, heHe shall obtain a permission of alteration from the Minister of Land, Transport and Maritime Affairs under the conditions as prescribed by the Ordinance of the Ministry of Land, Transport and Maritime Affairs. Provided, that in case he intends to alter minor items as prescribed by the Presidential Decree, he shall file a report to the Minister of Land, Transport and Maritime Affairs under the conditions as prescribed by the Ordinance of the Ministry of Land, Transport and Maritime Affairs. (4) The types of truck transportation business under the provisions of paragraph (1) shall be determined by the Presidential Decree.

(5) The standards for a license of the truck transportation business or a modified license involving an increase the units of trucks under the provisions of paragraphs (1) and main sentence of paragraph (3) shall be as follows.

1. It shall satisfy the standard for supply which is publicly announced by the Minister of Land, Transport and Maritime Affairs according to business types under the provisions of paragraph(4),in view of demands in truck transportatio.

2. It shall satisfy such standards as prescribed by the Ordinance of the Ministry of Land, Transport and Maritime Affairs, including the units of trucks, capital, or evaluated amount of the properties, and transportation facilities such as truck depot, etc. (hereinafter referred to as "transportation facilities"). (6) In case a transportation business operator falls under any case of the following subparagraphs, heHe shall be prohibited from altering any licensed matters accompanying with increasing the units of trucks.

1. Where heHe received the improvement order under Article 13, but he has failed to comply thereof; and

2. Where heHe received the order to reduce the units of trucks under Article 19 (1) , for whom one year has not passed yet.

(7) Every transportation business operator shall, under the conditions as prescribed by the Ordinance of the Ministry of Land, Transport and Maritime Affairs, file a report on matters relating to the license standards under the provisions of paragraph (5) with the Minister of Land, Transport and Maritime Affairs in every period as prescribed by the Presidential Decree within the limit of less than three years from the date of obtaining a license under paragraph (1). Article 4 (Grounds for Disqualification)

Any person who falls under any of the following subparagraphs shall not obtain a license of truck transportation business under the provisions of Article 2 (1). In case of a juristic person, the same shall also apply where any of its officers falls under any of the following subparagraphs:

1. Any person who has been declared incompetent or quasi-incompetent;

2. Any person who was declared bankrupt, but has not yet been reinstated;

3. Any person who had been sentenced to punishment of imprisonment or a heavier punishment in violation of this Act and for whom two years have not elapsed yet since the execution of such sentence was completed (including the case where the execution of the sentencewas deemed to have been completed) or exempted;

4. Any person who is still in the period of the suspension of the execution of imprisonment or a heavier punishment as declared by a court for violation of this Act; and

5. Any person who was received a disposition of cancellation of license under the provisions of Article 19 (1) and for whom two years have not passed since the license was cancelled.

Article 5 (Fares and Fees, Etc.)

(1) A transportation business operator as prescribed by the Presidential Decree shall set fares and fees and report them to the Minister of Land, Transport and Maritime Affairs thereof in advance.

(2) Necessary matters concerning the report of fares and fees under the provisions of paragraph (1) shall be prescribed by the Ordinance of the Ministry of Land, Transport and Maritime Affairs.

Article 6 (Transportation Clause)

(1) A transportation business operator shall set a transportation clause and report it to the Minister of Land, Transport and Maritime Affairs thereof. In the case of altering the transportation clause, the same shall also apply

(2) The Minister of Land, Transport and Maritime Affairs may, in case any transportation clause (hereinafter referred to as "standard clause") with regard to freight transportation exists that has been made by the association or the federation established each pursuant to Article 48 or 50 and has gone through examination of the Fair Trade Commission in accordance with Article 19-2 of the Regulation of Standardized Contracts Act, encourage its usage to transportation business operators. (3) Any transportation business operator shall, if heHe agrees to the use of the standard clause when he obtains a license of truck transportation business under Article 3 (including the alteration of license thereof), be deemed that he has made the report referred to in paragraph (1).

Article 7 (Liability of Transportation Business Operator) (1) The provisions of Article 135 of the Commercial Act shall apply mutatis mutandis to any liability of transportation business operator for compensation for damages caused by loss, damage, or delay in delivery of freight (hereinafter referred to as "freight accident").

(2) In applying paragraph (1), the freight concerned which has not been delivered within three months after the time limit of its delivery shall be deemed as being lost. (3) The Minister of Land, Transport and Maritime Affairs may, if the consignor of freight requests a compensation for damage under the provisions of paragraph (1), mediate over disputes thereof under the conditions as prescribed by the Ordinance of the Ministry of Land, Transport and Maritime Affairs. (4) The Minister of Land, Transport and Maritime Affairs shall, if the consignor of freight requests mediation of a dispute under the provisions of paragraph (3), make a draft mediation after promptly confirming the fact and investigating the details of damage.

(5) In the event that both parties accept the draft mediation under paragraph (4), it shall be deemed that an agreement, the same as the draft mediation ,to be reached between the parties.

(6) The Minister of Land, Transport and Maritime Affairs may entrust the affairs of dispute mediation under paragraphs (3) and (4) to the Korea Consumer Agency as prescribed in Article 33 (1) of the Framework Act on Consumers or consumer organizations registered as prescribed in Article 29 (1) of the same Act. Article 8 (Qualifications for Engage in Driving Duties of Truck Transport Business) (1) Any person who intends to engage in driving duties of truck transport business shall satisfy the requirements of the following subparagraphs.

1. heHe shall satisfy necessary requirements for driving duties such as the age, driving experience, etc. as prescribed by the Ordinance of the Ministry of Land, Transport and Maritime Affairs;

2. heHe shall satisfy the standards of precise test for driving aptitude as prescribed by the Ordinance of the Ministry of Land, Transport and Maritime Affairs;

3. heHe shall pass the examination conducted by the Minister of Land, Transport and Maritime Affairs in the Act and subordinate statutes of truck transport business, the guidance on dealing with freight, etc. and receive the prescribed education. In this case, only those who satisfy the requirements of subparagraphs 1 and 2 may apply for the examination; and

(2)The Minister of Land, Transport and Maritime Affairs shall deliver a qualification certificate which indicates permission for engaging in the driving duties of truck transportation business (hereinafter referred to as "qualification certificate for engaging in freight transportation") to persons who satisfy the requirements as prescribed in paragraph (1).

(3)Necessary matters concerning examination, education and delivery, etc. of qualification certificate under the provisions of paragraphs (1) and (2) shall be prescribed by the Ordinance of the Ministry of Land, Transport and Maritime Affairs. Article 9 (Grounds for Disqualification)

Any person who falls under any of the following subparagraphs shall not obtain the qualification for engaging in freight transportation under the provisions of Article 8.

1. Persons who fall under Article 4 (1), (3) or (4); and

2. Persons whose qualification for engaging in freight transportation was cancelled under the provisions of Article 23 (1) 1 through 6, for whom two years have not passed from the date of its cancelation.

Article 10 (Management of Employment Record of Truck Drivers) (1) When a transportation business operator has employed truck drivers, he shall record and manage matters necessary for issuing the certificate of driving careerincluding working period, etc.

(2) Associations and federations established under the provisions of Articles 48 and 50 (hereinafter referred to as "operators' organization") may perform functions such as recording and managing the working period, etc. under the provisions of paragraph (1), under the conditions as prescribed by the Ordinance of the Ministry of Land, Transport and Maritime Affairs.

Article 11 (Matters to be Observed by Transportation Business Operator) (1) Any transportation business operator shall run his business in good faith within the limits of licensed matters, and shall not offer unfair terms and conditions of transportation, nor refuse acceptance of transportation contract without justifiable reasons, nor conduct any other acts that may significantly disturb the order of freight transportation.

(2) A transportation business operator shall, in order to prevent overwork of truck drivers and ensure safe operation, not assign drivers to excessivehours of driving. (3) A transportation business operator shall not transport freight which does not meet the freight criteria under the latter part of subparagraph 3 of Article 2. (4) A transportation business operator shall not commit an act of exchanging the unlawful money and goods with any automobile management operator under the Automobile Management Act in relation to the freight transportation such as the broken down and accident-suffered trucks.

(5) A transportation business operator shall guide and supervise his transportation service employees engaged in the related truck transportatio business to assure their compliance with the code of practice as defined in Article 12. (6) Any transportation business operator shall not rebate illegally the amount equivalent to the whole or part of fares and fees received for the price of freight transportation to the freight consignor, other transportation business operator or persons who run motor freight forwarding business.

(7) Any transportation business operator, in respect to freight which the transportation contract has been concluded under his own name, shall not commit an act which may disturb the order of freight transportation such as entrusting or having other transportation business operator conduct the transportation of the said freighton terms of commission or other copmpensation.

(8) A transportation business operator shall provide the list of fares, fees and transportation clause at his place of business or in the trucks and present it upon request of customers..

(9) A transportation business operator shall be prohibited from joining two or more truck transportation affiliated members (hereinafter referred to as "transportation affiliated member").

(10)A transportation business operator who is the transportation affiliated member shall not receive any mediation of freight transportation directly from any forwarder belonging to the said transportation affiliated business operator whom he has joined.

(11)A transportation business operator who has joined as the transportation affiliated member shall change his trade name to a transportation affiliated member of the transportation affiliated business operator he belonged to, and file a report thereof to the Minister of Land, Transport and Maritime Affairs under the conditions as prescribed by the Ordinance of the Ministry of Land, Transport and Maritime Affairs. (12)In addition to the matters to be observed as prescribed in paragraphs (1) through (11), the Minister of Land, Transport and Maritime Affairs may prescribe the following matters by the Ordinance of the Ministry of Land, Transport and Maritime Affairs matters.

1. Matters concerning the use of truck depot at truck truck transportation business and transportation facilities; and

2. Other matters to be observed by transportation business operator to promote the safety of transportation and convenience of freight consignors. Article 12 (Matters to be Observed by Transportation Service Employees) (1) No transportation service employees engaged in the truck transportation business shall do an act falling under any of the following subparagraphs.

1. An act of forcing freight to be unloaded halfway without legitimate reasons;

2. An act of refusing the freight transportation without legitimate reasons;

3. An act of claiming or collecting unreasonable fares or fees; and

4. An act of exchanging the unlawful money and goods with any automobile management operator under the Automobile Management Act in relation to the freight transportation such as the broken down and accident-suffered trucks. (2) In addition to the matters to be observed as prescribed in paragraphs (1), the Minister of Land, Transport and Maritime Affairs may prescribe other matters to be observed by transportation service employees for securing the safety of transportation and promoting convenience of freight consignors by the Ordinance of the Ministry of Land, Transport and Maritime Affairs.

Article 13 (Improvement Order)

1. The Minister of Land, Transport and Maritime Affairs may order every transportation operator to adopt the following measures in case where it is deemed necessary to ensure safe operation, to establish the transportation order and to promote the convenience of freight consignors.Alteration of transportation clause;

2. Structural modification of trucks and the improvement of transportation facilities;

3. Measures to ensure safe transportation of freight;

4. Subscription to the freight indemnity insurance, etc. under the provisions of Article 35, in addition insurance and mutual aid which a transportation business operator shall subscribe obligatorily as prescribed in the Guarantee of Automobile Accident Compensation Act; and

5. Other necessary matters for the improvement of truck transportation business as prescribed by the Presidential Decree.

Article 14 (Order to Commence Business)

(1) The Minister of Land, Transport and Maritime Affairs may, in case where transportation business operators or transportation service employees refuse to transport the freight collectly without legitimate reasons and cause a significant inconvenience to the freight transportation and therefore incurring serious crisis to the national economy or there exist sufficient reasons deemed to incur it, order the relevant transportation business operators or transportation service employees to commence their business.

(2) The Minister of Land, Transport and Maritime Affairs shall, in case he intends to order transportation business operators or transportation service employees to commencetheir business under the provisions of paragraph (1), go through a deliberation by the State Council.

(3) Any transportation business operator or transportation service employees shall not refuse the order under the provisions of paragraph (1) without legitimate reasons. Article 15 (Certification of Excellent Transportation Business Operator) (1) The Minister of Land, Transport and Maritime Affairs may grant a certification of excellent company to a transportation business operator who has prepared facilities and equipments which freight consignors can use conveniently, provided the information regarding freight transportation, and improvedservices for freight consignors through safe transportationof freight. (2) The Minister of Land, Transport and Maritime Affairs may entrust the affair of certification of excellent enterprise to Korea Consumer Agency as prescribed in Article 33 (1) of the Framework Act on Consumers or a consumer organizations registered as prescribed in Article 29 (1) of the same Act. (3) The Minister of Land, Transport and Maritime Affairs may provide preferential financial assistance to a transportation business operator who has been certified as a excellent company under the provisions of paragraph (1). (4) Necessary matters concerning the business types subject to the certification of excellent company and the standards for and the methods of selection, etc. shall be prescribed by the Ordinance of the Ministry of Land, Transport and Maritime Affairs Article 16 (Transfer and Takeover, etc. of Truck transportation Business) (1) Where it is intended to transfer or take over any truck transportation business, the transferee shall report to the Minister of Land, Transport and Maritime Affairs under the conditions as prescribed by the Ordinance of the Ministry of Land, Transport and Maritime Affairs.

(2) Where a corporation which is the transportation business operator is merged with another corporation (Excluding a case where a corporationwhich is the transportation business operator merges with another corporation which is not a transportation business operator), a corporation which remains after such merger or is newly established by such merger shall report to the Minister of Land, Transport and Maritime Affairs under the conditions as prescribed by the Ordinance of the Ministry of Land, Transport and Maritime Affairs.

(3) In case where the report under paragraph (1) or (2) has been made, a person who has taken over the truck transportation business shall succeed to the status of transportation business operator who has transferred the truck transportation business, and such corporation, which remains after or is established by such merger, shall succeed to the status of transportation business operator of any such corporation as beingextinct thereby.

(4) The provisions of Article 4 shall apply mutatis mutandis to the grounds for disqualification of transferee under paragraph (1) or (2), and the corporation, which remains after or is established by such merger.

Article 17 (Succession of Truck transportation Business) (1) Where a transportation business operator dies, if any successor intends to continue the truck transportation business concerned, he shall report to the Minister of Land, Transport and Maritime Affairs within sixty days following the death of the predecessor.

(2) In case any successor has made a report as prescribed in paragraph (1), the license of truck transportation business for the predecessor from the date of the predecessor's death to the date of report shall be deemed as license for the said successor. (3) Any successor who has made a report as prescribed in paragraph (1) shall succeed to the status of transportation business operator of the predecessor. (4) The provisions of Article 4 shall apply mutatis mutandis to the grounds for disqualification of successor under paragraph (1). Provided, that in case the successor transfers the truck transportation business concerned to other person within three months from the date of the predecessor's death, the license of truck transportation business for the predecessor from the date of the predecessor's death to the date of the transfer shall be deemed as license for the said successor. Article 18 (Report for Suspension and Closure of Truck transportation Business) (1) In case where a transportation business operator intends to suspend all or part of truck transportation business or close down all of truck transportationation business, he shall report thereon to the Minister of Land, Transport and Maritime Affairs under the conditions as prescribed by the Ordinance of the Ministry of Land, Transport and Maritime Affairs.

(2) In case where a transportation business operator intends to suspend all or part of truck transportation business or close down all of truck transportation business, he shall in advance put up a notice at the place of business or place where the general public can easily see.

Article 19 (Revocation of License, etc. of Truck transportation Business) (1) The Minister of Land, Transport and Maritime Affairs may, in case where a transportation business operator falls under any of the following subparagraphs, revoke his license, or order the suspension of all or part of his business for a fixed period not more than six months or the reduction of units of trucks. Provided, that in case falling under subparagraphs (1) and (5), the license shall be revoked.

1. Where he has obtained the license under Article 3 (1) by unlawful means;

2. Where he has obtained a permission of alteration under Article 3 (3) by unlawful means;

3. Where he has failed to meet the standards under Article 3 (5);

4. Where he has failed to report under Article 3 (7) or filed a false report;

5. Where he falls under any of the subparagraphs of Article 4. Provided, that in case a corporation whose officer falling under any of subparagraphs of Article 4 has replaced the said officer within three months, the license shall not be revoked;

6. Where he has a person who is not qualified for engaging in freight transportation transport freight;

7. Where he has violated the matters to be observed under Article 11 (Excluding the paragraph (4) of the same Article);

8. Where he has failed to carry out the improvement order under Article 13 without legitimate reasons;

9. Where he has failed to carry out the order for the commencement of business under Article 14 without legitimate reasons;

10. Where he has violated the disposition of business suspension under this Article or the order to the reduction of units of trucks;

11. Where he has caused occurrence of many casualties due to a serious traffic accident or frequent traffic accidents; and

12. Where he has violated this Act or an order or disposition under this Act. (2) The scope of a serious traffic accident and frequent traffic incidents under paragraph (1) 11 shall be prescribed by the Presidential Decree. (3) The standards and procedures for the revocation of license, disposition of business suspension or the order to the reduction of units of trucks under paragraph (1) and other necessary matters shall be prescribed by the Presidential Decree. Article 20 (Suspension of Use of Trucks)

(1) In case a transportation business operator falls under any of the following subparagraphs, he shall return the registration certificates and number plates of trucks concerned to the Minister of Land, Transport and Maritime Affairs.

1. Where he has made a report for suspension or closure of truck transportation business under Article 18 (1);

2. Where he has has been subject to the revocation of license, disposition of business suspension under Article 19 (1); and

3. Where he has altered the licensed matters for the purpose of reducing units of trucks (Including the case of following the order to the reduction of units of trucks under Article 19 (1)).

(2) The Minister of Land, Transport and Maritime Affairs shall, in case falling under any of the following subparagraphs, restore any registration certificate and number plate of trucks which were returned under paragraph (1) to the transportation business operator concerned:

1. Where the period of suspension by report under Article 18 (1) has expired; and

2. Where the period of business suspension by order under Article 19 (1) has expired. (3) A transportation business operator to whom the number plates of trucks have been restored under paragraph (2) shall have them attached to the trucks concerned and have the official seal of the Mayor/Do governor on them. Article 21 (Imposition of Penalty Surcharge)

(1) The Minister of Land, Transport and Maritime Affairs may, in case a transportation business operator falls under any of the subparagraphs of Article 19 (1) and is subject to the disposition of business suspension, and the disposition of business suspension might give a significant inconvenience to users of the truck transportation business concerned or harm the public interest otherwise, impose and collect penalty surcharge not exceeding twenty million Won on him in lieu of the disposition of business suspension under conditions as prescribed by the Presidential Decree. (2) The amount of penalty surcharge, depending upon the types and degrees, etc. of the violations subject to the imposition of penalty surcharge under paragraph (1), and other necessary matters shall be prescribed by the Presidential Decree. (3) The Minister of Land, Transport and Maritime Affairs shall, in case where a person who received a disposition of the imposition of penalty surcharge under paragraph (1) has failed to pay within the specified time limit, collect the penalty surcharge concerned according to examples of disposition taken to collect national taxes in arrears.

(4) The penalty surcharge collected under paragraph (1) shall not be used (including subsidies and loans) for other purposes than those as prescribed in the following subparagraphs.

1. Construction and expansion of freight terminals;

2. Construction and expansion of joint truck depots (referring to the truck depot installed or leased by operators' organization, transportation business operator or transportation affiliated business operator to be offered jointly to the transportation business operator or transportation affiliated business operator. hereinafter the same shall apply); and

3. Necessary projects for the development of truck transportation business such as improvement of transportation business or other project of providing information on freight, etc.

(5) The Minister of Land, Transport and Maritime Affairs shall establish and execute the operation plan of the collected penalty surcharges under the conditions as prescribed by the Ordinance of the Ministry of Land, Transport and Maritime Affairs. Article 22 (Hearing)

In case the Minister of Land, Transport and Maritime Affairs intends to revoke the license under the provisions of Article 19 (1), he shall hold a hearing. Article 23 (Revocation of Qualification for Engaging in Freight Transportation) (1) In case where any person who has acquired the qualification for engaging in freight transportation falls under any of the following subparagraphs, the Minister of Land, Transport and Maritime Affairs may revoke the said qualification or suspend the validity of the said qualification for a fixed period of not more than six months. Provided, that in cases of subparagraphs 1, 2, 5, 6, and 7, the qualification shall be revoked.

1. Where he falls under any of subparagraphs of Article 4 which applies mutatis mutandis to Article 9 (1);

2. Where he has obtained the qualification for engaging in freight transportation by falsity or other illegal means;

3. Where he has violated the provisions of Article 14 (3);

4. Where he has caused a traffic accident during the freight transportation by intention or negligence and caused the death or injury of person;

5. Where he has leased the qualification certificate for engaging in freight transportation to other person;

6. Where he has engaged in driving duties of truck transportation business during the period of suspension of qualification for engaging in freight transportation; and

7. Where his driver's license under the Road Traffic Act enabling him/her to drive a truck has been revoked.

(2) Necessary matters concerning the standards and procedures for dispositions under the provisions of paragraph (1) shall be prescribed by the Ordinance of the Ministry of Land, Transport and Maritime Affairs.

(3) The provisions of Article 20 shall apply mutatis mutandis to the revocation of qualification for engaging in freight transportation. CHAPTER 3 MOTOR FREIGHT FORWARDING BUSINESS

Article 24 (License, etc. of Motor Freight Forwarding Business) (1) Any person who intends to operate the motor freight forwarding business shall obtain a license from the Minister of Land, Transport and Maritime Affairs under the conditions as prescribed by the Ordinance of the Ministry of Land, Transport and Maritime Affairs. Provided, that a person who has obtained a license of truck transportation affiliated business under the provisions of Article 29 (1) shall be exempted from obtaining a license

(2) In case a person who has obtained a license of motor freight forwarding business under the main sentence of paragraph (1) (hereinafter referred to as " motor freight forwarding business operator") intends to alter any licensed matters, she shall report to the Minister of Land, Transport and Maritime Affairs under the conditions as prescribed by the Ordinance of the Ministry of Land, Transport and Maritime Affairs. (3) The types of motor freight forwarding business under paragraph (1) shall be prescribed by the Presidential Decree.

(4) The standards for license of motor freight forwarding business under paragraph (1) shall be as follows.

1. It shall satisfy the supply standards publicized by the Minister of Land, Transport and Maritime Affairs in consideration of demand for motor freight forwarding; and

2. It shall satisfy the standards as prescribed by the Ordinance of the Ministry of Land, Transport and Maritime Affairs such as the size of office, capital, or evaluated amount of the properties, etc.

(5) The provisions of Article 3 (7) shall apply mutatis mutandis to the report of matters concerning the standards for license of motor freight forwarding business. Article 25 (Prohibition of Use of Name of Motor Freight Forwarding Business Operator)

No motor freight forwarding business operator shall have other person run the motor freight forwarding business under his own name.

Article 26 (Matters to be Observed by Motor Freight Forwarding Business Operator ) (1) Any motor freight forwarding business operator, in respect to freight which the transportation contract has been concluded under his own name, shall not conclude a contract with other motor freight forwarding business operator for the remainders of the contract amount after part of the amount has been deducted, to transport the said freight.

(2) A motor freight forwarding business operator, in respect to freight which the mediation or proxy of transportation has been requested by the freight consignor, shall not request the mediation or brokerage to other motor freight forwarding business operator by receiving fee or othercompensation. (3) A motor freight forwarding business operator shall, in respect to freight which he was requested for the transportation, deliver a certificate of consignment or receipt, etc. of freight which contains the name of the freight consignor and fares, etc. to a transportation business operator and a transportation affiliated business operator under the conditions as prescribed by the Ordinance of the Ministry of Land, Transport and Maritime Affairs. Provided, that in case of freight as prescribed by the Ordinance of the Ministry of Land, Transport and Maritime Affairs, he may not deliver a certificate of consignment or receipt, etc. of freight. (4) A motor freight forwarding business operator shall not notify the types, weights and volumes of the freight to a transportation business operator by falsity. (5) Any motor freight forwarding business operator who is the transportation affiliated member shall not mediate the freight transportation to a transportation affiliated member belonging to the transportation affiliated business operatorwhereto he is affiliated.

(6) An act of mediating the freight transportation to a transportation affiliated business operator by a motor freight forwarding business operator shall not be considered as a subcontract, mediation or proxy under the provisions of paragraphs (1) and (2). Article 27 (Revocation of License, etc. of Motor Freight Forwarding Business) (1) The Minister of Land, Transport and Maritime Affairs may, in case where a motor freight forwarding business operator falls under any of the following subparagraphs, revoke his license, or order the suspension of his business for a fixed period not more than six months. Provided, that in case falling under subparagraphs (1), (2) and (9), the license shall be revoked.

1. Where he falls under any of the subparagraphs of Article 4 which applies mutatis mutandis to Article 28. Provided, that in case a corporation whose officer is falling under any of subparagraphs of Article 4 has replaced the said officer within three months, the license shall not be revoked;

2. Where he has obtained the license under Article 24 (1) by falsity or other unlawful means;

3. Where he has failed to satisfy the standards for license under Article 24 (4);

4. Where he has failed to report under Article 24 (5) or reported by falsity;

5. Where he has violated the provisions of Article 25;

6. Where he has violated the matters to be observed under Article 26;

7. Where he has violated the matters to be observed under Article 11 (Excluding the paragraphs (3), (4), (7), (10) and (12) of the same Article) which apply mutatis mutandis to Article 28;

8. Where he has failed to carry out the improvement order under Article 13 (Excluding the sub-paragraph 2 of the same Article) which apply mutatis mutandis to Article 28;

9. Where he has conducted his business in violation of the order of business suspension under this Article; and

10. Where he has violated this Act or the order or disposition under this Act. (2) The standards and procedures for the revocation of license or disposition of business suspension under paragraph (1) and other necessary matters shall be prescribed by the Presidential Decree.

Article 28 (Provisions Applicable Mutatis Mutandis) The provisions of Articles 4, 6, 7, 11 (Excluding the paragraphs (3), (4), (7), (10) and (12) of the same Article), 12 (Excluding subparagraph 4 of paragraph (1) of the same Article), 13, 15 through 18, 21 and 22 shall apply mutatis mutandis to the motor freight forwarding business. In this case, when the provisions of Articles 6, 11 (8) and 13 (1) shall apply mutatis mutandis, "terms and conditions of transportation clause" shall be deemed as "terms and conditions of motor freight forwarding clause ". CHAPTER 4 TRUCK TRANSPORTATION AFFILIATED BUSINESS Article 29 (License, etc. of Truck transportation Affiliated Business) (1) Any person who intends to operate the truck transportation affiliated business shall obtain a license from the Minister of Land, Transport and Maritime Affairs under the conditions as prescribed by the Ordinance of the Ministry of Land, Transport and Maritime Affairs.

(2) In case a transportation affiliated business operator who has obtained a license under the provisions of paragraph (1) intends to alter any licensed matter, he shall obtain a permission of alteration from the Minister of Land, Transport and Maritime Affairs under the conditions as prescribed by the Ordinance of the Ministry of Land, Transport and Maritime Affairs. Provided, that in case he intends to alter minor items as prescribed by the Presidential Decree, he shall report to the Minister of Land, Transport and Maritime Affairs under the conditions as prescribed by the Ordinance of the Ministry of Land, Transport and Maritime Affairs. (3) The standards for a permission of alteration accompanying with a license of truck transportation affiliated business under the main sentences of paragraphs (1) and (2) or increasing units of trucks shall be as follows.

1. It shall satisfy the supply standards publicized by the Minister of Land, Transport and Maritime Affairs in consideration of demand in truck transportation; and

2. It shall satisfy the number of trucks (including number of trucks possessed by transportation affiliated members), capital, or evaluated amount of the properties, transportation facilities and other standards as prescribed by the Ordinance of the Ministry of Land, Transport and Maritime Affairs. (4) The provisions of Article 3 (7) shall apply mutatis mutandis to report of matters concerning the standards for license of transportation affiliated business operator. Article 30 (Roles, Etc. of Transportation Affiliated Business Operator and Transportation Affiliated Member)

(1) Any transportation affiliated business operator shall perform the following matters in good faith for the smooth execution of truck transportation affiliated business.

1. Fair allotments between direct transport volume of a transportation affiliated business operator and transport volume of transportation affiliated members;

2. Development and distribution of effective transportation techniques; and

3. Installation and operation of a joint computer network for smooth freight transportation.

(2) Any transportation affiliated member shall perform the following matters in good faith for smooth execution of truck transportation affiliated business.

1. Provision of transportation services which satisfy the standards set by the transportation affiliated business operator (limited to a transportation affiliated member who is the transportation business operator);

2. Notification of the location of trucks for smooth freight transportation (limited to a transportation affiliated member who is the transportation business operator); and

3. Securing and supply of transportation freight for transportation affiliated business operators (limited to a transportation affiliated member who is the motor freight forwarding business operator).

(3) The provisions of Article 7 (3) through (6) shall apply mutatis mutandis to the dispute mediation between transportation affiliated business operator and transportation affiliated member. In this case, "freight consignor" shall be deemed as "transportation affiliated business operator or transportation affiliated member". Article 31 (Improvement Order)

The Minister of Land, Transport and Maritime Affairs may, in case where it is deemed necessary for securing safe operation, establishing the order of transportation and promoting the convenience of freight consignors, order the following matters to a transportation affiliated business operator.

1. Alteration of transportation clause;

2. Structural modification of trucks and the improvement of transportation facilities;

3. Measures for securing safe transportation of freight;

4. The obligation of providing a document of information disclosure, return of the affiliation money, details of the affiliation contract and renewal of affiliation contract under Articles 7, 10, 11 and 13 of the Fair Transactions in Franchise Business Act which applies mutatis mutandis to Article 34 of this Act.

5. Subscription of freight indemnity insurance, etc. under the provisions of Article 35 and insurance and mutual aid which a transportation affiliated business operator shall subscribe obligatorily as prescribed in the Guarantee of Automobile Accident Compensation Act; and

6. Other necessary matters for the improvement of truck transportation affiliated business as prescribed by the Presidential Decree. Article 32 (Revocation of License, Etc. of Truck transportation Affiliated Business) (1) The Minister of Land, Transport and Maritime Affairs may, in case where a transportation affiliated business operator falls under any of the following subparagraphs, revoke his license, or order the suspension of all or part of his business for a fixed period not more than six months or the reduction of units of trucks. Provided, that in case falling under subparagraphs (1) and (4), the license shall be revoked.

1. Where he falls under any of the subparagraphs of Article 4 which applies mutatis mutandis to Article 33. Provided, that in case a corporation whose officer is falling under any of subparagraphs of Article 4 has replaced the said officer within three months, the license shall not be revoked;

2. Where he has a person who is not qualified for engaging in freight transportation transport freight;

3. Where hehas failed to perform the order to commence business under Article 14 which applies mutatis mutandis to Article 33 without legitimate reasons;

4. Where he has obtained the license under Article 29 (1) by falsity or other unlawful means;

5. Where he has obtained a permission of alteration under Article 29 (2) by falsity or other unlawful means;

6. Where he has failed to satisfy the standards for license or a permission of alteration under Article 29 (3);

7. Where he has failed to report under Article 29 (4) or reported by falsity;

8. Where he has failed to perform the improvement order under Article 31 without any justifiable reasons;

9. Where he has violated the provisions of Article 11 (Excluding the provisions of paragraphs (4), (9) through (11) of the same Article) which apply mutatis mutandis to Article 33, and Article 25 (Excluding the case where letting transportation affiliated member use his business mark);

10. Where he has violated the provisions of Articles 7, 9 through 11, 13 and 14 of the Fair Transactions in Franchise Business Act which apply mutatis mutandis to Article 34 (Excluding the case of receiving the improvement order under Article 31);

11. Where he has violated the disposition of business suspension under this Article or the order to the reduction of units of trucks;

12. Where he has caused occurrence of many casualties due to a serious traffic accident or frequent traffic accidents; and

13. Where heHe has violated this Act or the order or disposition under this Act. (2) The scope of a serious traffic accident and frequent traffic incidents under paragraph (1) 12 shall be prescribed by the Presidential Decree. (3) The standards and procedures for the revocation of license, disposition of business suspension or the order to the reduction of units of trucks under paragraph (1) and other necessary matters shall be prescribed by the Presidential Decree. Article 33 (Provisions Applicable Mutatis Mutandis) Articles 4, 5 through 7, 10, 11 (excluding the provisions of paragraphs 9 through 11 of the same Article), 12, 14, 15 through 18, 20 through 22 and 25 (Excluding the case of letting transportation affiliated member use his business mark) shall apply mutatis mutandis to truck transportation affiliated business. In this case, when the provisions of Articles 6, 11 (8) and subparagraph 1 of Article 13 apply mutatis mutandis, "transportation clause" shall be deemed as " transportation affiliated clause", and "other transportation business operators" of Article 11 (7) shall be deemed as "Persons other than attached transportation affiliated member (Excluding an attached transportation affiliated member who is the motor freight forwarding business operator)". Article 34 (Provisions Applicable Mutatis Mutandis of the Fair Transactions in Franchise Business Act)

The provisions of Articles 7, 9 through 11, 13 and 14 of the Fair Transactions in Franchise Business Act shall apply mutatis mutandis to the provision of information between transportation affiliated business operator and transportation affiliated member, return of affiliation fee, affiliation contract, etc. In this case, "a person who desires to affiliate" shall be deemed as "a person who intends to join as a transportation affiliated member" and "affiliated business operator" shall be deemed as "transportation affiliated member", "affiliation headquarters", "affiliation headquarters (including the case where regional affiliation headquarters or an affiliation broker recruit affiliated business operators. Hereinafter the same shall apply)" under Article 7 (1) of the same Act, and "affiliation headquarters, or operators' organization composed of affiliation headquarters" of Article 7 (3) of the same Act shall be deemed as "transportation affiliated business operator" respectively, and "affiliation money under subparagraph 6 (a) and (b) of Article 2" under Article 10 (1) of the same Act shall be deemed as "money paid to the transportation affiliated business operator for the price of using the business marks when affiliating to transportation affiliated member, regardless of the titles or payment types" CHAPTER 5 SUBSCRIPTION, ETC. OF FREIGHT INDEMNITY INSURANCE, ETC.

Article 35 (Obligatory Subscription to Freight Indemnity Insurance) A person who falls under any of the following subparagraphs shall subscribe a liability insurance of freight indemnity or mutual aid (hereinafter referred to as "freight indemnity insurance, etc.") under the conditions as prescribed by the Presidential Decree in order to carry our liability of damage compensation under Article 7 (1).

1. A transportation business operator who possesses trucks as prescribed by the Ordinance of the Ministry of Land, Transport and Maritime Affairs from among those whose maximum loading capacity is not less than five tons or whose gross weight is not less than 10 tons;

2. A motor freight forwarding business operator who handles freight as prescribed by the Ordinance of the Ministry of Land, Transport and Maritime Affairs; and

3. A transportation affiliated business operator. Article 36 (Obligation to Conclude Contract of Freight Indemnity Insurance) (1) An insurance company under the Insurance Business Act (including a person who runs the mutual aid business for freight indemnity liability. Hereinafter referred to as "insurance companies, etc.") shall, in case a person who should subscribe freight indemnity insurance, etc. (hereinafter referred to as "obligatory subscriber of the insurance, etc.") intends to subscribe freight indemnity insurance, etc., not refuse a conclusion of contracts for freight indemnity insurance, etc. (hereinafter referred to as "liability insurance contract, etc.") unless there are specific reasons as prescribed by the Presidential Decree.

(2) In case of falling under specific reasons as prescribed by the Ordinance of the Ministry of Land, Transport and Maritime Affairs such as a case where an obligatory subscriber of the insurance, etc. has a high probability of causing accidents, notwithstanding the provisions of paragraph (1), a number of insurance companies, etc. may conclude liability insurance contract, etc. jointly. Article 37 (Cancellation of Liability Insurance Contract) Obligatory subscribers of the insurance, etc. and insurance companies, etc. shall not cancel or terminate all or part of liability insurance contract, etc. with the exception of cases falling under any of the following subparagraphs.

1. Where the licensed matter for truck transportation business has been altered (limited to the reduction of the unit of trucks) under the provisions of main sentence of Article 3 (3);

2. Where the truck transportation business has been suspended or closed down under the provisions of Article 18 (1) (including the cases applied mutatis mutandis in Articles 28 and 23);

3. Where the license for freight trucking service has been revoked or the reduction of the units of trucks has been ordered under the provisions of Article 19 (1);

4. Where the license for motor freight forwarding business has been revoked under the provisions of Article 27 (1);

5. Where the licensed matter of the truck transportation affiliated business has been altered (limited to the reduction of the units of trucks) under the provisions of main sentence of Article 29 (2);

6. Where the license for truck transportation affiliated business has been revoked or the reduction of the units of trucks has been ordered under the provisions of Article 32 (1);

7. Where freight indemnity insurances has been subscribed in duplication, and one of them is intended to be canceled or terminated;

8. Where the insurance companies, etc. may not continue business due to the reasons for bankruptcy, etc.; and

9. Other cases corresponding to subparagraphs 1 through 8 as prescribed by the Presidential Decree.

Article 38 (Notification of Completion Date of Liability Insurance Contract, Etc) (1) The insurance companies, etc. shall notify the obligatory subscribers of insurance, etc., who have concluded the liability insurance contract, etc with themselves, the fact of completion of relevant contracts not later than 30 days before the completion date of the contracts.

(2) The insurance companies, etc. shall, in case where the obligatory subscribers of insurance, etc. who have concluded liability insurance contract, etc. with themselves have failed to conclude new contracts after the relevant contracts were completed, notify such facts without delay to the Minister of Land, Transport and Maritime Affairs.

(3) Necessary matters concerning the methods of and procedures for the notification under the provisions of paragraphs (1) and (2) shall be prescribed by the Ordinance of the Ministry of Land, Transport and Maritime Affairs. CHAPTER 6 RATIONALIZATION OF MANAGEMENT

Article 39 (Efforts such as Rationalization of Management) Transportation business operators, motor freight forwarding business operators or transportation affiliated business operators (hereinafter referred to as "transport business operators") shall endeavor to promote the rationalization of management and improvement in transportation service, such as establishment of the order of freight transportation, efficient business administration, and development of freight transportation techniques, etc.

Article 40 (Entrustment of Management)

(1) A transportation business operator may, if necessary for the efficient execution of truck transportation business, entrust part of the business to other person. (2) The provisions of Article 4 shall apply mutatis mutandis with respect to disqualifications of a person who intends to be entrusted with the management of the truck transportation business under paragraph (1). Article 41 (Guidance in Management)

(1) The Minister of Land, Transport and Maritime Affairs may, if it is deemed necessary for the improvement of business of the truck transportation business or improvement of transportation service, guide transport business operators in the management of the truck transportation business.

(2) The Minister of Land, Transport and Maritime Affairs may render recommendations for improving management to truck transportation business operators whose management in financing, business operation, etc. is deemed to be in unstable condition and, if necessary, have them submit a mid and long-term plan or an annual plan, etc. on improvement in the management. (3) In case the plan, etc. on improvement in the management that has been submitted by the transport business operators under paragraph (2) is deemed to be unreasonable, the Minister of Land, Transport and Maritime Affairs may recommend the modification thereof.

Article 42 (Management Education for Officers)

The Minister of Land, Transport and Maritime Affairs or the Mayor/Do governor may, if it is deemed necessary for improving management capacity of transport business operators, conduct management education for the officers (in the case of individuals, referring to the transport business operators) in charge of management. Article 43 (Financial Assistance)

(1) In the event that local governments, business operators' organization, or truck transportation business operators undertake projects falling under each of the following subparagraphs and financial assistance thereto is deemed necessary, the State may provide subsidies or loans to cover part of costs needed to undertake such projects under the conditions as prescribed by the Presidential Decree.

1. Project of constructing joint truck depots;

2. Project of physical distribution informatization;

3. Project of replacing old trucks;

4. Project of expanding and improving facilities and equipments for the enhancement of truck transportation business service; and

5. Other projects prescribed by the Ordinance of the Ministry of Land, Transport and Maritime Affairs as necessary to improve the management of the truck transportation business.

(2) The Special Metropolitan City Mayor, Metropolitan City Mayor, Special Autonomous Do Governor, the head of City/Gun (including the head of Gun in Metropolitan City) may provide a subsidy to transport business operators (including a person entrusted with a truck transportation business under Article 40 (1)) for the all or part of the sum of money equivalent to the amount of increase, such as the amount of tax falling under each of the following subparagraphs imposed upon oil. In this case, necessary matters concerning the eligibility for payment, method of payment, application documents, procedures, etc. of subsidy shall be prescribed by the Minister of Land, Transport and Maritime Affairs.

1. Education tax, traffic, energy and environment tax, and driving tax respectively imposed upon light oil under Article 5 (1) of the Education Tax Act, Article 2 (1) 2 of the Traffic, Energy And Environment Tax Act, and Article 196-17 (1) of the Local Tax Act; and

2. Special consumption tax, education tax and surcharge respectively imposed upon butane among petroleum gases under Article 1 (2) 4 (f) of the Special Consumption Tax Act, Article 5 (1) of the Education Tax Act, and Article 18 (2) 1 of the Petroleum and Petroleum Substitute Fuel Business Act.

Article 44 (Use of Subsidy)

(1) A person who receives a subsidy or loan under Article 43 (1) shall not use the funds for other purposes than the purpose for which he has received such subsidy or loan. (2) The Minister of Land, Transport and Maritime Affairs shall guide and supervise a person who has received a subsidy or loan under Article 42 (1) to use the funds properly.

(3) The Minister of Land, Transport and Maritime Affairs, Special Metropolitan City Mayor, Metropolitan City Mayor, Special Autonomous Do Governor or the head of City/Gun (including the head of Gun in Metropolitan City) shall order any operators' organization or transport business operator (including a person entrusted with a truck transportation business under Article 40 (1)) who has received a subsidy or loan by falsity or other unlawful means under Article 43 (1) or (2) to return the subsidy or loan, and, in case the said organization or operator has failed to comply therewith, collect it in accordance with the examples of disposition for the national tax or local tax in arrears.

Article 45 (Establishment of Public Managed Truck Depot) (1) The Mayor/Do governor or the head of City/Gun/Gu may establish and operate a public managed truck depot directly, or lease (Including entrustment of operation) it to the operators' organization, transportation business operator or transportation affiliated business operator.

(2) When the Mayor/Do governor or the head of City/Gun/Gu intends to establish a public managed truck depot, he shall establish a plan for the installation and operation of the public managed truck depot (hereafter in this Article, referred to as the "plans for installation and operation"). In this case, the head of City/Gun/Gu shall obtain authorization therefor from the Mayor/Do governor in advance. In the case of any modification of the authorized plans, the same shall also apply. (3) When the Mayor/Do governor or the head of City/Gun/Gu establishes or modifies the plans for installation and operation under paragraph (2), or has obtained an authorization or modified authorization, he shall make a public notification thereof. Article 46 (Expropriation and Use)

(1) The Mayor/Do governor or the head of City/Gun/Gu may expropriate or use lands and buildings necessary to establish public truck depots, fixtures to such lands, or other rights than ownerships of such lands, buildings or fixtures. (2) With respect to the expropriation or use as provided in paragraph (1), the Act on the Acquisition of Land, etc. for Public Works and the Compensation Therefor, except as prescribed by this Act, shall apply mutatis mutandis. (3) In applying mutatis mutandis the Act on the Acquisition of Land, etc. for Public Works and the Compensation Therefor under paragraph (2), the authorization as referred to in Article 45 (2) shall be regarded as the approval for a project under Article 20 (1) of the Act on the Acquisition of Land, etc. for Public Works and the Compensation Therefor.

Article 47 (Investigation on Conditions, etc. of Truck Transportation Business) (1) The Minister of Land, Transport and Maritime Affairs may request the reports on the conditions of their business and assets, etc. from transport business operators and may direct public officials under his authority to examine into the conditions of their management of business if deemed necessary to improve management or the quality of transportation service.

(2) The Minister of Land, Transport and Maritime Affairs may, if it is necessary for examining the management conditions of the transport business operators under paragraph (1), have a certified public accountant or a person who meets such requirements as prescribed by the Minister of Land, Transport and Maritime Affairs examine into the conditions of financial management of the transport business operators.

(3) The public officials who conduct the examination under paragraph (1) shall present a document verifying their authority to the persons concerned CHAPTER 7 OPERATORS' ORGANIZATION

Article 48 (Establishment of Association)

(1) Transport business operators may, with the authorization of the Minister of Land, Transport and Maritime Affairs, establish associations by the types of the truck transportation business or by the Special Metropolitan City, the Metropolitan City, the Do and the Special Autonomous Do (hereinafter referred to as "City/Do") for the purpose of a sound development of the truck transportation business and the promotion of the common interest of the transport business operators. (2) An association shall be a juristic person.

(3) An association shall be formed by making the registration of incorporation in the location of the head office thereof.

(4) In order to establish an association, not less than one fifth of the total number of persons eligible for membership to the association concerned shall promote it, and then an application for the authorization therefor shall be filed with the Minister of Land, Transport and Maritime Affairs after the articles of incorporation thereof have been prepared at the inaugural general meeting with the consent of not less than one- third of the total number of persons eligible for the membership to the association. (5) Transport business operators may join an association under the conditions as prescribed by the articles of incorporation.

(6) Qualifications for members, the fixed number and election method of officers, and other matters that may be necessary for the operation of an association shall be determined by the articles of incorporation.

(7) Any modification of the articles of incorporation shall be subject to authorization by the Minister of Land, Transport and Maritime Affairs. (8) The entries in the articles of incorporation of an association and the necessary matters for supervision thereof shall be prescribed by the Ordinance of the Ministry of Land, Transport and Maritime Affairs.

(9) Provisions concerning the incorporated association as referred to in the Civil Act, except as provided by this Act, shall apply mutatis mutandis with respect to the associations.

Article 49 (Undertakings of Association)

An association shall carry out the following undertakings.

1. A project designed to promote a sound development of a truck transportation business as well as the common interest of the truck transportation business operators;

2. Preparation and control of statistics that may be necessary for the promotion and development of the truck transportation business, and the project on the collection, examination, and research of foreign information;

3. Education and training for both employers and employees engaged in the truck transportation business;

4. Guidance in the improvement of the operations of the truck transportation business;

5. Such matters as have been assigned by this Act to the undertakings of the associations;

6. Such duties as have been entrusted by the State or a local government; and

7. Ancillary duties of the projects as provided in subparagraphs 1 through 5. Article 50 (Federations)

(1) The associations formed by the transportation business operators, the associations formed by motor freight forwarding business operators and the associations formed by the transportation affiliated business operators may, under the conditions as prescribed by the Ordinance of the Ministry of Land, Transport and Maritime Affairs, establish a federation separately (hereinafter referred to as "federations") to achieve their common objectives. In this case, the associations formed by the transportation business operators, the associations formed by the motor freight forwarding business operators and the associations formed by the transportation affiliated business operators shall be each member of the federations. (2) The provisions of Articles 48 and 49 shall apply mutatis mutandis to the establishment and undertakings of federations.

Article 51 (Mutual Aid Project)

(1) The federations formed by the associations of the transport business operators may, under the conditions as prescribed by the Presidential Decree, operate an assurance business and a mutual-aid project for the indemnity of freights as may be caused by traffic accidents of transport business operators, with the permission of the Minister of Land, Transport and Maritime Affairs.

(2) The transport business operators are eligible for membership to the mutual-aid business under paragraph (1), and the transport business operators who have joined the mutual-aid project shall pay their shares of expenses to carry out such business. (3) The proportions of the share of expenses as defined in paragraph (2) shall be approved by the Minister of Land, Transport and Maritime Affairs. (4) Necessary matters concerning the contents and operations of the mutual-aid project under paragraph (1) shall be prescribed by the Presidential Decree. (5) The Insurance Business Act shall not apply with respect to the mutual-aid project under paragraph (1).

Article 52 (Application for Mediation of Disputes) In case there arise disputes over mutual-aid contracts and mutual-aid payments in operating the mutual-aid project as defined in Article 51, the parties to the disputes may file an application for mediation with the Mutual-Aid Dispute Mediation Commission in accordance with Article 70 of the Passenger Transport Service Act.

Article 53 (Sanctions against Officers and Employees of Mutual Aid Business) In the event that any officer or any employee engaged in the mutual aid business violatesthe mutual aid regulations or failsto comply with any order given or any disposition taken under this Act, the Minister of Land, Transport and Maritime Affairs may demand a disciplinary action against such officer and employee and the president of the federation shall comply with such demand unless he has any special reason. Article 54 (Supervision)

(1) The Minister of Land, Transport and Maritime Affairs shall guide and supervise the federations and the associations.

(2) The Minister of Land, Transport and Maritime Affairs may, if deemed necessary, order the associations and federations to submit reports on operation and take other necessary measures, or direct the public officials under his authority to examine their operational conditions or accounts and to inspect books and other related documents. (3) The public officials who carry out the examination and inspection under paragraph (2) shall produce a document verifying their authority to the persons concerned. CHAPTER 8 OPERATION OF TRUCKS FOR PRIVATE USE

Article 55 (Report of Operation of Trucks for Private Use) Any person who intends to operate a truck not for truck transportation business and truck transportation affiliated business but for private use (hereinafter referred to as a "truck for private use"), as defined by the Presidential Decree, he shall report to the Mayor/Do governor such matters as prescribed by the Ordinance of the Ministry of Land, Transport and Maritime Affairs. In the case of any modification of the reported items, the same shall also apply.

Article 56 (Prohibition of Onerous Carriage)

No owner or user of a truck for private use shall provide such a truck for an onerous service of freight transportation (including charging operational costs of the truck) or lease it to another person for such service. Provided, that in case of falling under reasons defined by the Ordinance of the Ministry of Land, Transport and Maritime Affairs and is permitted by the Mayor/Do governor, a truck may be provided or leased for the purpose of freight transportation.

Article 57 (Conditions for Replenishing Trucks)

The scope of trucks as may be replenished for the new registration of truck transportation business and truck transportation affiliated business, the increase in units of trucks, or replacement and disposal shall be prescribed by the Presidential Decree within the limit of three-year use. Provided, that in case of trucks prescribed by the Ordinance of the Ministry of Land, Transport and Maritime Affairs, different conditions for replenishing may be applied.

CHAPTER 9 SUPPLEMENTARY PROVISIONS

Article 58 (Prohibition from Seizure)

The money and other valuables provided under Article 43 (2) and the right to receive them shall not be subject to a seizure.

Article 59 (Education, etc. for Transportation Service Employees) (1) The Minister of Land, Transport and Maritime Affairs or the Mayor/Do governor may, if it is deemed necessary to improve trucking services, etc, of transportation service employees, carry out the education of transportation service employees under the conditions as prescribed by the Ordinance of the Ministry of Land, Transport and Maritime Affairs.

(2) The Mayor/Do governor may, when it is necessary to conduct efficiently the education referred to in paragraph (1), establish and operate a training institution for transportation service employees directly or designate such training institution under the conditions as prescribed by the Municipal Ordinance of the relevant City/Do and provide financial assistance to cover costs needed to operate the training institution of transportation service employees.

Article 60 (Guidance and Supervision in Truck transportation Business) The Minister of Land, Transport and Maritime Affairs shall, in order to promote a sound development of the truck transportation business, direct and supervise the affairs under the jurisdiction of the Mayor/Do governor as prescribed by this Act. Article 61 (Report and Inspection)

(1) The Minister of Land, Transport and Maritime Affairs or the Mayor/Do governor may, in the case falling under each of the following subparagraphs, have a transport business operator, truck owner or user make reports on the operation of the business or the ownership or use of the trucks or submit documents related thereto, and, if necessary, have his public officials enter the place of business of the transport business operators to check on books and documents, inspect things and question persons in charge:

1. Where it becomes necessary to confirm whether the standards for license provided for in Article 3 (5), 24 (4) or 29 (3) are met;

2. Where it becomes necessary to determine the act of disrupting the order of freight transportation, etc; and

3. Where it becomes necessary to ascertain the unlawful act perpetrated by any transport business operator and to take an administrative disposition, such as revocation of the license.

(2) The public officials who enter the place of the business to inspect under paragraph (1) shall carry certificates showing their authority and produce them to persons concerned, and deliver a document stating their names, the agency to which they belong, the objective of entering the place of business and date, etc. to any person in charge or write such matters in the relevant book under the conditions as prescribed by the Ordinance of the Ministry of Land, Transport and Maritime Affairs. Article 62 (Request for Providing Data)

(1) The Minister of Land, Transport and Maritime Affairs may request the Commissioner General of the National Police Agency to provide the data necessary for the confirmation on the qualification to apply for examination by applicants under Article 8 (1) 3, and for the cancellation or suspension etc. of the qualification for engaging in freight transportation under the provisions of Article 23, in order to efficiently manage the qualification for engaging in freight transportation. (2) The Commissioner General of the National Police Agency, upon requested for providing the data under the provisions of paragraph (1), shall comply with it unless he has any special reasons.

Article 63 (Delegation of Authority)

(1) The Minister of Land, Transport and Maritime Affairs may delegate part of his authority under this Act to the Mayor/Do governor under the conditions as prescribed by the Presidential Decree.

(2) The Mayor/Do governor may re-delegate part of authorities delegated by the Minister of Land, Transport and Maritime Affairs under the provisions of paragraph (1) to the head of City/Gun/Gu by obtaining an approval of the Minister of Land, Transport and Maritime Affairs.

(3) The Mayor/Do governor may delegate part of authorities under this Act to the head of City/Gun/Gu under the conditions as prescribed by the Municipal Ordinance of City/Do.

Article 64 (Entrustment, etc. of Authority)

(1) The Minister of Land, Transport and Maritime Affairs or the Mayor/Do governor may entrust part of his authority under this Act to the association, the federation or the specialized inspection institutions prescribed by the Presidential Decree under the conditions as prescribed by the Presidential Decree or the Municipal Ordinance of the relevant City/Do. In this case, the Mayor/Do governor shall, if he intends to entrust any of his duties, obtain approval therefor from the Minister of Land, Transport and Maritime Affairs in advance.

(2) The officers and staff members of the association, federation, or specialized inspection agency who carry out the functions that have been entrusted under paragraph (1) shall be regarded as public officials in case of penalty under the provisions of Articles 129 through 132 of the Criminal Act is applied. Article 65 (Fees)

(1) Any person who intends to file an application for license or authorization, etc. or to make a report under this Act shall pay fees fixed by the Ordinance of the Ministry of Land, Transport and Maritime Affairs and the Municipal Ordinance of the relevant local government. Provided, that in case the relevant authority has been entrusted to the association, etc. under Article 64 (1), he shall pay the fees fixed by the relevant association, etc. concerned to the relevant association, etc. concerned. (2) When any institution entrusted with part of the authority intends to set the fees in accordance with the proviso of paragraph (1), it shall obtain approval therefor from the Minister of Land, Transport and Maritime Affairs in case that part of the authority is entrusted by the Minister of Land, Transport and Maritime Affairs and from the Mayor/Do governor in case that part of the authority is entrusted by the Mayor/Do governor. The same shall apply to a case where it is intended to change the approved criteria.

CHAPTER 10 PENAL PROVISIONS

Article 66 (Penal Provisions)

Any person who has violated the provisions of Article 14 (3) (Including the case applied mutatis mutandis in Article 33) shall be punished by imprisonment for not more than three years or a fine not exceeding thirty million won. Article 67 (Penal Provisions)

Any person who falls under any of the following subparagraphs shall be punished by imprisonment for not more than two years or a fine not exceeding twenty million won.

1. A person who has operated the truck transportation business without obtaining a license under Article 3 (1) or (3) or with obtaining a license obtained by falsity or other illegal means;

2. A person who has operated the motor freight forwarding business without obtaining a license under Article 24 (1) or with obtaining a license by falsity or other illegal means;

3. A person who has violated an obligation of prohibition from using the name under Article 25 (including the case applied mutatis mutandis in Article 33);

4. A person who has operated the truck transportation affiliated business without obtaining a license under Article 29 (1) or (2) or with obtaining a license by falsity or other illegal means; and

5. A person who has put his truck for private use to an onerous service of freight transportation or leased it for such service in violation of Article 59. Article 68 (Penal Provisions)

Any person who falls under any of the following subparagraphs shall be punished by imprisonment for not more than one year or a fine not exceeding ten million won.

1. A person who has engaged in a driving duty for the truck transportation business without receiving a qualification certificate for engaging in freight transportation;

2. A person who has acquired a qualification for engaging in freight transportation by falsity or other illegal means;

3. A person who has let a person having no qualification for engaging in freight transportation engage in a driving duty for the truck transportation business;

4. A transportation business operator who has violated the provisions of Article 11 (4) (including the cases applied mutatis mutandis in Article 33); and

5. A transportation service employee has violated the provisions of Article 12 (1) 4 (including the cases applied mutatis mutandis in Article 33). Article 69 (Joint Penal Provisions)

(1) In case the representative of a corporation or an agent, user, or another employee of a corporation has committed any of the offenses as defined in Article 68 in respect to the operation of the business of the corporation, the corporation, in addition to the wrongdoer concerned, shall also be punished by a fine under the same Article. Provided, that in case the corporation has paid a significant attention and supervision to the business concerned in order to prevent the said offense, the same shall not apply.

(2) In case the representative of an individual or an agent, user, or another employee of an individual has committed any of the offenses as defined in Article 48 in respect to the operation of the business of the individual, the individual, in addition to the wrongdoer concerned, shall also be punished by a fine under the same Article. Provided, that in case the individual, has paid a significant attention and supervision to the business concerned in order to prevent the said offense, the same shall not apply.

Article 70 (Fine for Negligence)

(1) Any person who falls under any of the following subparagraphs shall be punished by a fine for negligence not exceeding five million won.

1. A person who has failed to make a report on modification of licensed matters as provided in the proviso of Article 3 (3);

2. A person who has failed to make a report on fares and fees as provided in Article 5 (1) (including the case applied mutatis mutandis in Article 33);

3. A person who has failed to make a report on the transportation clause under the provisions of Article 6 (including the case applied mutatis mutandis in Articles 28 and 33);

4. A person who has violated Article 10;

5. A transportation business operator who has violated the matters to be observed under the provisions of Article 11 (excluding paragraphs (3) and (4) of the same Article, and including the case applied mutatis mutandis in Articles 28 and 33);

6. A transportation service employee who has violated the matters to be observed under the provisions of Article 12 (excluding paragraphs (1) 4 of the same Article, including the case applied mutatis mutandis in Articles 28 and 33);

7. A person who has failed to comply with the improvement order the provisions of Article 13 (including the case applied mutatis mutandis in Article 28);

8. A person who has failed to make a report on the transfer, takeover, merger, or succession under Article 16 (1) and (2) or 17 (1) (including the case applied mutatis mutandis in Articles 28 and 33);

9. A person who has failed to make a report on the suspension or closure under the provisions of Article 18 (1) (including the case applied mutatis mutandis in Articles 28 and 33);

10. A person who has failed to return the registration certificates or number plates of trucks in violation of Article 20 (1) (including the case applied mutatis mutandis in Article 33);

11. A person who has failed to report the modification of the licensed items as provided in Article 24 (2);

12. A motor freight forwarding business operator who has violated the matters to be observed the provisions of Article 26;

13. A person who has failed to make a report on alteration of the licensed items under the proviso of Article 29 (2);

14. A person who has failed to comply with the improvement order under the provisions of Article 31;

15. A person who has failed to join the freight indemnity insurance, etc. under the provisions of Article 35;

16. Insurance companies, etc. which have refused to conclude liability insurance contracts, etc. in violation of the provisions of Article 36;

17. An obligatory subscriber of the insurance, etc. or insurance companies, etc who has canceled or terminated the liability insurances, etc. in violation of the provisions of Article 37;

18. Insurance companies, etc. which have failed to notify the relevant matters in violation of the provisions of Article 38 (1) and (2);

19. A person who has received the subsidy or loan in violation of Article 44 (1) or used the subsidy or loan for other than reported purposes;

20. A person who has failed to make a report under Article 47 (1) or made a report by falsity;

21. A person who has refused, obstructed, or evaded the examination as prescribed in Article 47 (1);

22. A person who has failed to carry out an order issued under Article 54 (2) or who has refused, obstructed, evaded the examination or inspection;

23. A person who has failed to make a report on the use of a truck for private use under Article 55;

24. A person who has failed to make a report under Article 61 (1) or made a report by falsity;

25. A person who has failed to submit documents under Article 61 (1) or submitted false document; and

26. A person who has refused, obstructed, or evaded the inspection as prescribed in Article 61 (1).

(2) The fine for negligence as prescribed in paragraph (1) shall be imposed and collected by the Minister of Land, Transport and Maritime Affairs or traffic administrative agencies under the conditions as prescribed by the Presidential Decree (3) Any person who is dissatisfied with the disposition of a fine for negligence as provided in paragraph (1) may raise an objection to the Minister of Land, Transport and Maritime Affairs or the Mayor/Do governor within 30 days after the receipt of the notice of the disposition.

(4) In case the person who was subject to the disposition of a fine for negligence as provided in paragraph (2) has raised an objection under paragraph (3), the Minister of Land, Transport and Maritime Affairs or the Mayor/Do governor shall without delay notify the competent court, which, in turn, shall proceed to a trial on a fine for negligence pursuant to the Non-Contentious Case Litigation Procedure Act. (5) In case neither objection has been raised nor the fine negligence has been paid within the period as provided in paragraph (3), it shall be collected according to the example of a disposition taken to collect national taxes or local taxes in arrears Article 71 (Special Case for Application of Provision of Fine for Negligence) In applying the provisions of Article 70 concerning a fine for negligence, no act of violation upon which a surcharge has already been imposed under Article 21 (1) (including the case applied mutatis mutandis in Articles 28 and 33) shall be punishable with a fine for negligence.

ADDENDA (PASSENGER TRANSPORT SERVICE ACT) Article 1 (Enforcement Date)

This Act shall enter into force on July 14, 2008. Article 2 Through Article 6 Omitted.

Article 7 (Amendment of other Acts)

(1) Through (9) Omitted.

(10) Part of the Truck transportation Business Act shall be amended as follows. "Article 66-2" among Article 52 shall be amended to "Article 70". Article 8 Omitted.