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ACT ON DESIGNATION AND MANAGEMENT OF FREE ECONOMIC ZONES
ACT ON DESIGNATION AND MANAGEMENT OF FREE ECONOMIC ZONES
INTRODUCTION
Details of Enactment and Amendment
- Enactment: This Act was enacted as Act. No. 6835 on December 30, 2002 and entered into force on July 1, 2003 in order to swiftly
create the foreigner-friendly economic and living conditions in the free economic zones intended to be developed as part of methods
through which the Republic of Korea performs any central function in business of the northeastern Asia Regions.
- Amendment: This Act has taken the present form as a result of being amended seven times after the enactment thereof, and the latest
amendment was on July 4, 2005.
Main Contents
- The Mayor/Do governor shall formulate a development plan for free economic zone for the purpose of designating the free economic
zone, and submit it to the Minister of Finance and Economy, and the said Minister shall ensure that the free economic zone is designated
by going through a deliberation and resolution by the Free Economic Zone Committee; and where the said Minister deems it necessary
to promote the free economic zone on the national dimension, he shall ensure that the free economic zone is directly designated by
himself with the consent of the Mayor/Do governor.
- The Seoul Metropolitan City, any other Metropolitan City, or a Si or Gun may, if necessary for the development project, lay down
the maximum of building-to-land ratio or ratio of volume of building in the free trade zone by the Municipal Ordinance as prescribed
by the Presidential Ordinance.
- For the foreign-invested enterprises located in the free economic zone, an exception shall be admitted with respect to the restriction
on any participation by large-scale enterprises in the peculiar business category under the Act on the Protection of the Business
Sphere of Small and Medium Enterprises and Promotion of Their Cooperation, the paid holiday, monthly paid leave and paid menstrual
leave under the Labor Standards Act, and the business category subject to dispatch and dispatch period under the Protection, etc.
of Dispatched Workers Act.
- The Mayor/Do governor shall provide foreign language services, such as the publication, receipt and handling of official documents
for promoting the convenience of foreign-invested enterprises located in the free economic zone and the foreigners concerned.
- Where any foreign school corporation obtains an approval from the Minister of Education and Human Resources Development after going
through the Free Economic Zone Committee, it is ensured that it may establish a foreign educational institution in the free economic
zone.
- Where any foreigner obtains an approval from the Minister of Health and Welfare or makes a registration to the said Minister after
going through a deliberation and resolution by the Free Economic Zone Committee, he may open a foreigner-only medical institution
or a foreigner-only pharmacy; and any holder of the foreign medical license or the foreign pharmaceutical license may be engaged
in any foreigner-only medical institution or any foreigners-only pharmacy that is opened in the free economic zone under the standards
set by the Minister of Health and Welfare.
- In order to implement the policies on the free economic zone, the Free Economic Zone Committee shall be established in the Ministry
of Finance and Economy, and the Free Economic Zone Planning Team shall be established as a working organization to assist the said
Committee.
- An exclusively-charged administrative organization under the Mayor/Do governor s command shall directly perform the certain affairs
from those performed by the head of a Si/Gun/Gu within the free economic zone.
ACT ON DESIGNATION AND MANAGEMENT OF FREE ECONOMIC ZONES
Act No. 6835, Dec. 30, 2002
Amended by Act No. 6841, Dec. 30, 2002
Act No. 6916, May 29, 2003
Act No. 7291, Dec. 31, 2004
Act No. 7349, Jan. 27, 2005
Act No. 7476, Mar. 31, 2005
Act No. 7604, Jul. 21, 2005
Act No. 7678, Aug. 4, 2005
CHAPTER I GENERAL PROVISIONS
Article 1 (Purpose)
The purpose of this Act is to facilitate foreign investments, bolster the national competitiveness and seek the balanced development
among regions by improving the management environment for foreign-invested enterprises and living conditions for foreigners through
the designation and management of free economic zones.
Article 2 (Definitions)
The definitions of terms used in this Act shall be as follows:
1.The term free economic zone means the zone which is developed with the aim of improving the management environment for foreign-invested
enterprises and the living conditions for foreigners and designated and published in accordance with the provisions of Article 4;
2.The term plan for developing a free economic zone means the basic plan for developing a free economic zone that contains the contents
provided for in Article 6;
3.The term foreigner means the person who falls under Article 2 (1) 1 of the Foreign Investment Promotion Act;
4.The term foreign-invested enterprise means the enterprise provided for in Article 2 (1) 6 of the Foreign Investment Promotion
Act; and
5.The term foreign educational institution means the school (including any branch school) that is established and operated in accordance
with foreign Acts and subordinate statutes.
Article 3 (Relation with Other Plans)
The plan for developing a free economic zone provided for in this Act shall precede any other development plans provided for in other
Acts: Provided, That the same shall not apply to any plan that is drawn up under the Framework Act on the National Land and the Protection
of Military Installations Act. <Amended by Act No. 7349, Jan. 27, 2005>
CHAPTER II DESIGNATIONOFFREE ECONOMIC ZONES
Article 4 (Designation, etc. of Free Economic Zones)
(1) The Special Metropolitan City Mayor, the Metropolitan City Mayor or the Do governor (hereinafter referred to as the Mayor/Do
governor ) may ask the Minister of Finance and Economy to designate any free economic zone: Provided, That in the event that any
proposed zone overlaps in not less than two Special Metropolitan City, Metropolitan Cities or Dos (hereinafter referred to as the
Cities/Dos ), the relevant Mayors/ Do governors shall jointly ask the Minister of Finance and Economy to designate such free economic
zone.
(2) The Mayor/Do governor shall, when he intends to ask for the designation of any free economic zone in accordance with paragraph
(1), draw up and submit a plan for developing such free economic zone.
(3) The Minister of Finance and Economy shall make a final decision on the plan for developing the free economic zone that is submitted
by the Mayor/Do governor and designate such proposed zone as a free economic zone after going through deliberation thereon and a
resolution thereof of the Free Economic Zone Committee established pursuant to Article 25 (hereinafter referred to as the Free Economic
Zone Committee ). In this case, the Minister of Finance and Economy shall hear opinion of the Mayor/Do governor who asks for the
designation of such free economic zone in accordance with paragraph (1).
(4) The Minister of Finance and Economy may, if he deems it necessary to develop a free economic zone, draw up a plan for developing
such free economic zone and designate such zone as a free economic zone after obtaining consent thereto from the competent Mayor/Do
governor and going through deliberation thereon and a resolution thereof of the Free Economic Zone Committee.
(5) The Minister of Finance and Economy may, if it is deemed necessary when he designates any free economic zone, have the development
of such free economic zone implemented on a phased basis.
(6) The Minister of Finance and Economy shall, when he designates any free economic zone in accordance with paragraph (3) or (4),
publish the contents of such designation in the Official Gazette and serve without delay a notice thereof to the competent Mayor/Do
governor under the conditions as prescribed by the Presidential Decree.
(7) The Mayor/Do governor shall, upon receiving the notice referred to in paragraph (6), offer the contents of such notice for public
perusal for not less than 14 days.
Article 5 (Matters to be Taken into Account with regard to Designation of Free Economic Zone)
The Free Economic Zone Committee shall take into account the matters falling under each of the following subparagraphs when it makes
deliberation and passes a resolution under Article 4 (3) or (4):
1.The possibility of attracting foreign investments and having foreigners settled;
2.The effect on the regional economy and the regionally balanced development;
3.The possibility of securing necessary sites, and development costs;
4.The infrastructures such as international airports, international harbors, metropolitan traffic networks, information and communications
networks and the supply of water and electricity, etc.;
5.The possibility of securing the environmentally sound and sustainable development;
6.The system and details of support for local government; and
7.Other matters prescribed by the Presidential Decree.
Article 6 (Plan for Developing Free Economic Zone)
Every plan for developing each of the free economic zones shall contain the matters falling under each of the following subparagraphs:
1.The name, location and area of the free economic zone;
2.The need to be designated as the free economic zone;
3.The undertaker of the development project inside the free economic zone (hereinafter referred to as the development project );
4.Methods of carrying out the development project;
5.Ways of securing financial resources;
6.Program for land utilization and program for a major infrastructure;
7.Program for population accommodation and program for installing residential facilities;
8.Program for traffic control;
9.Program for attracting industries;
10.Program for installing health and medical care, educational and welfare facilities;
11.Program for environmental preservation;
12.Program for attracting foreign investments and building an environment in which foreigners settle; and
13.Other matters prescribed by the Presidential Decree.
Article 7 (Cancellation of Designation of Free Economic Zones)
(1) The Minister of Finance and Economy may cancel the designation of any free economic zone. The same shall also apply to the case
where the Mayor/Do governor makes the demand.
(2) The provisions of Article 4 (1), (3) through (7) shall apply mutatis mutandis to the cancellation of paragraph (1).
[This Article Wholly Amended by Act No. 7349, Jan. 27, 2005]
Article 7-2 (Alteration of Development Plan for Free Economic Zone)
(1) The Minister of Finance and Economy may alter the development plan for free economic zone. The same shall also apply to the case
where the Mayor/Do governor makes the demand.
(2) Where an undertaker of development project (hereinafter referred to as the development project undertaker ) demands an alteration
of development plans for economic free zone through the Mayor/Do governor, the Minister of Finance and Economy may alter the said
development plans for economic free zone. In this case, if the development project district extends over two or more Cities or Dos,
a development project undertaker shall go through the relevant Mayor/Do governor respectively.
(3) Where the minor matters prescribed by the Presidential Decree from among the development plans for economic free zone are altered
under the provisions of paragraphs (1) and (2), the deliberation and resolution of the Economic Free Zone Committee may be skipped.
(4) Provisions of Articles 4 and 6 shall apply mutatis mutandis to the procedures for alterations as referred to in the provisions
of paragraphs (1) and (2): Provided, That Article 4 (4) shall apply mutatis mutandis to the procedures for alterations as referred
to in the provisions of paragraph (1).
[This Article Newly Inserted by Act No. 7349, Jan. 27, 2005]
Article 8 (Effect of Designation of Free Economic Zones)
When any free economic zone is designated, the designation, formulation or approval under each of the following subparagraphs shall
be respectively deemed to be in existence under the contents of the said development plans for the said economic free zone: <Amended
by Act No. 7349, Jan. 27, 2005>
1.The designation of any urban development district that is made under Article 3 of the Urban Development Act or the development of
a program for any urban development project that is made under Article 4 of the same Act;
2.The designation of any planned district that is made under Article 3 of the Housing Site Development Promotion Act and approval
for a program for developing any housing site that is granted under Article 8 of the same Act;
3.The designation of any national industrial complex, any general local industrial complex and any urban high-tech industrial complex
that is made under Articles 6 through 7-2 of the Industrial Sites and Development Act;
4.The designation of any tourist spot and any tourist complex that is made under Article 50 of the Tourism Promotion Act; and
5. Designation of a distribution complex under the provisions of Article 5 of the Promotion of Distribution Complex Development Act.
Article 8-2 (Limits on Acts)
(1) A person who intends to perform the acts prescribed by the Presidential Decree, such as the alteration of form and quality of
lands, the construction of buildings, and the installation of structures, etc. within the districts of development project shall
obtain a permission of the competent Mayor/Do governor. The same shall also apply when intending to alter the permitted matters.
(2) The Mayor/Do governor may order the person who failed to obtain the permission or modified permission in contravention of the
provisions of paragraph (1) to make a recovery of original status.
(3) When a person who has received the order for a recovery of original status under the provisions of paragraph (2) failed to implement
the said order, the Mayor/Do governor may make its vicarious execution under the Administrative Vicarious Execution Act.
[This Article Newly Inserted by Act No. 7349, Jan. 27, 2005]
CHAPTER III UNDERTAKINGOFDEVELOPMENTPROJECTOF FREE ECONOMIC ZONE
Article 9 (Approval for Implementation Plan)
(1) Every undertaker of the development project shall draw up an implementation plan therefor within 2 years from the date of the
publication provided for in Article 4 (6) and obtain approval therefor from the Minister of Finance and Economy under the conditions
as prescribed by the Presidential Decree. The same shall apply to a case where he intends to change the approved matters: Provided,
That in the event that the development of any free economic zone is implemented on a phased basis in accordance with Article 4 (5),
an application for approval of the implementation plan for the final stage shall be filed by the time set separately within the range
of 10 years from the date of the publication.
(2) The Minister of Finance and Economy shall, when he intends to approve an implementation plan or its modification under paragraph
(1), go through a deliberation thereon or a resolution thereof of the Free Economic Zone Committee after a consultation with the
competent Mayor/Do governor: Provided, That the same shall not apply to the time when a modified approval is made for the minor matters
prescribed by the Presidential Decree. <Amended by Act No. 7349, Jan. 27, 2005>
(3) Where an undertaker of development project demands to extends the time limit on approval for implementation plans under the provisions
of paragraph (1) due to an inevitable reasons, such as a delay of foreign investment or natural impediments, etc., the Minister of
Finance and Economy may extend the said time limit within the scope of less than one year. <Amended by Act No. 7349, Jan. 27,
2005>
(4) The implementation plan referred to in paragraph (1) shall contain the zone-unit program that is drawn up in accordance with Article
52 of the National Land Planning and Utilization Act.
Article 9-2 (Special Cases for National Land Planning and Utilization Act)
The Special Metropolitan City, the Metropolitan City having jurisdiction over economic free zone or Sis/Guns located within the economic
free zone may make a separate provisions by the Municipal Ordinances for the maximum limits on building volume ratio or building-to-land
ratio within the economic fee zone under the provisions prescribed by the Presidential Decree within the scope of 150/100, notwithstanding
the provisions of Article 77 or 78 of the National Land Planning and Utilization Act, where deemed to be necessary for the development
project.
[This Article Newly Inserted by Act No. 7349, Jan. 27, 2005]
Article 9-3 (Special Cases for Installation and Utilization of Sports Facilities Act)
The undertaker of development project may, where deemed necessary for the development project, implement a development project in
accordance with the installation of buildings and the site s size as provided in the implementation plans, notwithstanding the provisions
of Article 11 of the Installation and Utilization of Sports Facilities Act.
[This Article Newly Inserted by Act No. 7349, Jan. 27, 2005]
Article 9-4 (Reversion of Public Facilities and Lands, etc.)
Provisions of Articles 65 and 99 of the National Land Planning and Utilization Act shall, where the undertaker of development project
installs public facilities newly due to an implementation of development project or installs the facilities replacing the existing
public facilities, apply mutatis mutandis to the reversion of the said facilities.
[This Article Newly Inserted by Act No. 7349, Jan. 27, 2005]
Article 10 (Publication of Approval for Implementation Plan, etc.)
(1) In the event that the Minister of Finance and Economy approves an implementation plan or its modification in accordance with Article
9, he shall publish his approval without delay in the Official Gazette and deliver copies of relevant documents to the competent
Mayor/Do governor.
(2) The Mayor/Do governor shall, upon receiving the copies of relevant documents delivered under paragraph (1), offer the contents
thereof for public perusal for not less than 14 days.
Article 11 (Legal Fiction of Authorization and Permission, etc.)
(1) In the event that any undertaker of the development project obtains approval for the implementation plan or its modification under
Article 9, the permission, authorization, designation, approval, consultations and report, etc. (hereinafter referred to as the
permission, etc. ) falling under each of the following subparagraphs shall be deemed to be obtained, and the publication of the approval
for implementation plan provided for in Article 10 shall be deemed the publication or the public announcement of the permission,
etc. under the relevant Acts, which fall under each of the following subparagraphs: <Amended by Act No. 6841, Dec. 30, 2002; Act
No. 7349, Jan. 27, 2005; Act No. 7678, Aug. 4, 2005>
1.Permission for changing the form and quality of land under Article 21-2 of the Grassland Act, and permission for diverting grassland
to other purpose under Article 23 of the same Act;
2.Permission for and report on the diversion of the use of mountainous districts under Articles 14 and 15 of the Management of Mountainous
Districts Act, the cancellation of the designation of any reserved forest under Article 57 of the Forestry Act, permission for performing
any act in the area of the reserved forest under Article 62 of the same Act, approval for or consent to logging timbers in the national
forest under Article 73 of the same Act and permission for logging standing timbers under Article 90 (1) of the same Act;
2.Permission for and report on the diversion of the use of mountainous district under Articles 14 and 15 of the Management of Mountainous
Districts Act, permission for or report on felling the standing trees under Article 36 (1) and (4) of the Act on the Formation and
Management of Forest Resources, permission for or report on the acts within the reserved forest under Article 45 (1) and (2) of the
same Act, and cancellation of the designation of reserved forest under Article 46 (1) of the same Act; Enforcement Date: August
5, 2006
3.Permission for or consultations about diverting any farmland under Article 36 of the Farmland Act;
4.Approval for using any agricultural infrastructure for other purpose under Article 20 of the Rearrangement of Agricultural and Fishing
Villages Act and approval for development project plan of agricultural or fishing village resorts under Article 67 (4) of the same
Act;
5.Approval for setting up factory, etc. under Article 13 (1) or 20 (2) of the Industrial Cluster Development and Factory Establishment
Act;
6.Consultations with or approval by the management agency under Article 6 of the Rivers Act, permission for carrying out any river
work under Article 30 of the same Act and permission for occupying and using any river under Article 33 of the same Act;
7.License for reclamation under Article 9 of the Public Waters Reclamation Act, the publication under Article 13 of the same Act,
authorization for and the publication of any implementation plan under Article 15 of the same Act and consultations or approval under
Article 38 of the same Act;
8.Approval for installing excreta-treatment facilities under Article 21 of the Act on the Disposal of Sewage, Excreta and Livestock
Wastewater;
9.Approval for or any report on installing waste-treatment facilities under Article 30 of the Wastes Control Act;
10.Authorization for any general waterworks and industrial waterworks under Articles 12 and 33-2 of the Water Supply and Waterworks
Installation Act, and authorization for installing the tap-water system for private use and industrial-water system for private use
under Articles 36 and 38 of the same Act;
11.Permission for the power-generation business, the power-transmission business, the power-distribution business or the power-sale
business under Article 7 of the Electric Utility Act and authorization for or report on the plan for installing private power-generation
equipment under Article 62 of the same Act;
12.Approval for any project program under Article 12 of the Installation and Utilization of Sports Facilities Act;
13.Approval for project plans under Article 14 of the Tourism Promotion Act and approval for any program for building any tourist
spot and any tourist complex under Article 52 of the same Act;
14.Permission for occupying and using public waters under Article 5 of the Public Waters Management Act and authorization for an implementation
plan under Article 8 of the same Act (excluding any public waters to be reclaimed for which a reclamation license is obtained);
15.Consultations with or approval by any road management agency under Article 8 of the Road Act, permission for carrying out any road
work under Article 34 of the same Act and permission for occupying and using any road under Article 40 of the same Act;
16.Decision on a program for the urban management under Article 30 of the National Land Planning and Utilization Act, permission for
dividing and changing the form and quality of any land under Article 56 of the same Act, the designation of any undertaker of the
urban planning facility project under Article 86 of the same Act and authorization for any implementation plan under Article 88 of
the same Act;
17.Permission for carrying out any public sewerage work under Article 13 of the Sewerage Act and permission for occupying and using
any public sewerage under Article 20 of the same Act;
18.Permission for reburying any grave under Article 23 of the Funeral Services, etc. Act;
19.Permission for carrying out any harbor work under Article 9 (2) of the Harbor Act and approval for any implementation plan under
Article 10 (2) of the same Act;
20.Designation of any undertaker of the urban development project under Article 11 of the Urban Development Act, authorization for
forming any association under Article 13 of the same Act and authorization for and the publication, etc. of any implementation plan
under Articles 17 and 18 of the same Act;
21.Approval for any implementation plan of the housing site development project under Article 9 of the Housing Site Development Promotion
Act;
22.Authorization for carrying out any project under Article 28 of the Act on the Maintenance and Improvement of Urban Areas and Dwelling
Conditions for Residents;
23.Deleted; <by Act No. 6916, May 29, 2003>
24.Permission for opening any private road under Article 4 of the Private Road Act;
25.Permission for logging timbers under Article 14 of the Work against Erosion or Collapse Act, and the cancellation of designation
of region for anti-erosion or collapse work under Article 20 of the same Act;
26.Permission for carrying out any small-river work under Article 10 of the Small River Maintenance Act;
27.Permission for collecting aggregate under Article 22 of the Aggregate Picking Act;
28.Permission for using and profiting from any state property under Article 24 of the State Properties Act;
29.Permission for using and profiting from any administrative or preservation property under the proviso of Article 82 (1) of the
Local Finance Act;
30.Consultations about the validity of supplying any integrated energy under Article 4 of the Integrated Energy Supply Act;
31.Consultations about any program for using energy under Article 8 of the Energy Use Rationalization Act;
32.Consultations about any assessment statement under Article 17 of the Act on Assessment of Impacts of Works on Environment, Traffic,
Disasters, etc.: Provided, That consultations about the assessment statement of impacts on environment shall be excluded;
33.Approval for any implementation plan of developing the distribution complex under Article 11 of the Promotion of Distribution Complex
Development Act;
34.Designation of any undertaker of the industrial complex development project under Article 16 of the Industrial Sites and Development
Act and approval for an implementation plan of the industrial complex development project under Articles 17 and 18 of the same Act;
35.Usage inspection on the land survey results, etc. under Article 25 of the Land Survey Act;
36.Report on the undertaking, alteration or completion of business under Article 27 of the Cadastral Act; and
37.Deliberation of the Construction Committee under Article 4 of the Building Act, permission for construction under Article 8 of
the same Act, the construction permission and report on the construction of temporary-built structures under Article 15 of the same
Act, and the consultation on construction under Article 25 of the same Act.
(2) The Minister of Finance and Economy shall, in the event that he approves any implementation plan or its modification, which include
the matters falling under any subparagraph of paragraph (1), in accordance with Article 9, consult in advance with the heads of administrative
agencies concerned. In this case, the heads of administrative agencies concerned shall not comply with such consultations in violation
of the standards for granting permission, etc. provided for in the relevant Acts.
Article 12 (Commencement of Development Project)
(1) The time limit for launching the development project of any free economic zone shall be within one year from the date on which
approval for the implementation plan is obtained under Article 9 (1): Provided, That in the event that the Minister of Finance and
Economy deems it inevitable to extend the time limit for starting such development project, such time limit may be extended only
once within the scope of one year.
(2) In the event that the development project is not launched within the time limit fixed under paragraph (1), the approval for the
implementation plan shall be made invalid on the date following the date on which the time limit expires.
Article 13 (Land Expropriation)
(1) Every undertaker of the development project may, when it is necessary for carrying out the development project, expropriate (including
use; hereinafter the same shall apply) land, goods or rights (hereinafter referred to as the land, etc. ) provided for in Article
2 of the Act on the Acquisition of Land, etc. for Public Works and the Compensation Therefor.
(2) In the event that the approval for an implementation plan is published in accordance with Article 10, the approval of project
and the publication thereof provided for in Articles 20 and 22 of the Act on the Acquisition of Land, etc. for Public Works and the
Compensation Therefor shall be deemed to be in existence, and any application for an adjudication shall be filed within the period
of the development project that is fixed in the implementation plan provided for in Article 9, notwithstanding Articles 23 and 28
of the same Act.
(3) The land expropriation committee having jurisdiction over the adjudication on the expropriation of the land, etc. referred to
in paragraph (1) shall be the Central Land Expropriation Committee.
(4) The Act on the Acquisition of Land, etc. for Public Works and the Compensation Therefor shall apply mutatis mutandis to the expropriation
of the land, etc. referred to in paragraph (1) except as otherwise provided for in this Act.
Article 14 (Inspection of Work Completion)
(1) In the event that any undertaker of the development project completes his development project in whole or in part, he shall promptly
have the completion of his development project inspected by the Minister of Finance and Economy under the conditions as prescribed
by the Presidential Decree. In this case, the Minister of Finance and Economy shall consult in advance with the heads of administrative
agencies concerned.
(2) In the event that any undertaker of the development project has the completion of his development project inspected in accordance
with paragraph (1), he shall be deemed to have the completion of his development project inspected or have the completion of his
development project authorized in accordance with the permission, etc. provided for in each subparagraph of Article 11 (1).
(3) Any developed land and any installed facilities shall be prohibited from being used before the completion of the relevant development
project is inspected in accordance with paragraph (1): Provided, That the same shall not apply to a case where permission for use
thereof is obtained from the Minister of Finance and Economy under the conditions as prescribed by the Presidential Decree.
(4) The Mayor/Do governor shall manage any free economic zone for which the development project is completed in accordance with the
zone-unit program that is contained in the implementation plan published under Article 10.
Article 15 (Reduction or Exemption of Taxes and Charges)
(1) The State and local governments may, in the event that it is required for smoothly carrying out the development project of any
free economic zone, grant any undertaker of the development project the reduction or the exemption of taxes such as the corporate
tax, the income tax, the customs, the acquisition tax, the registration tax, the property tax and the composite land tax, etc. as
prescribed by the Restriction of Special Taxation Act, the Customs Act and the Local Tax Act.
(2) The State and local governments may, if it is necessary for the smooth implementation of a development project of a free economic
zone, grant the development project undertaker the reduction or exemption of the development charges, farmland preservation charges,
substitute grassland creation charges, substitute forest resources creation charges, charges for causing traffic congestion, the
cooperative fund for the conservation of ecosystem, the occupation or use fees of public waters, and environment improvement charges
as prescribed by the Restitution of Development Gains Act, the Farmland Act, the Grassland Act, the Management of Mountainous Districts
Act, the Urban Traffic Improvement Promotion Act, the Natural Environment Conservation Act, the Public Waters Management Act, and
the Environment Improvement Expenses Liability Act. <Amended by Act No. 6841, Dec. 30, 2002; Act No. 7604, Jul. 21, 2005>
CHAPTER IV ASSISTANCEINMANAGEMENTACTIVITIESOF FOREIGN-INVESTED ENTERPRISES
Article 16 (Tax and Financial Assistance)
(1) The State and local governments may grant every foreign-invested enterprise that is located in any free economy zone (hereinafter
referred to as the foreign-invested enterprise located in free economy zone ) the reduction or the exemption of national and local
taxes as prescribed by the Restriction of Special Taxation Act, the Customs Act and the Local Tax Act.
(2) Local governments may develop sites to be rented to foreign-invested enterprises located in free economy zone, grant them the
reduction or the exemption of the rentals of the land, etc. and provide funds needed to install medical, educational and other convenience
facilities and to build housing for foreigners with the aim of attracting foreign-invested enterprises.
(3) The State shall, if any local government provides the funds referred to in paragraph (2), financially support such local government
under the conditions as prescribed by the Presidential Decree.
(4) The State and local governments may grant every foreign-invested enterprise located in free economy zone the reduction or the
exemption of the rentals of national and public properties under the conditions as prescribed by the Presidential Decree, notwithstanding
the provisions of the State Properties Act, the Local Finance Act and other Acts and subordinate statutes.
(5) The State and local governments may permit any undertaker of the development project or any foreign-invested enterprise located
in free economy zone to use or profit from national and public properties owned by the State or local governments, or rent or sell
such national and public properties to such undertaker of the development project or such foreign-invested enterprise located in
free economy zone through a free contract, notwithstanding the provisions of the State Properties Act, the Local Finance Act and
other Acts and subordinate statutes.
Article 17 (Exclusion of Application of Other Acts, etc.)
(1) The provisions of Article 33-2 of the Act on the Honorable Treatment and Support of Persons, etc. of Distinguished Services to
the State, Article 24 of the Employment Promotion and Vocational Rehabilitation of Disabled Persons Act and Article 12 of the Employment
Promotion for the Aged Act shall not apply to any foreign-invested enterprise located in free economy zone. <Amended by Act No.
7349, Jan. 27, 2005>
(2) The provisions of Articles 4 and 12 of the Act on the Protection of the Business Sphere of Small and Medium Enterprises and Promotion
of Their Cooperation shall not apply to any foreign-invested enterprise located in free economy zone.
(3) The provisions of Articles 7, 8, 12, 18 and 19 of the Seoul Metropolitan Area Readjustment Planning Act shall not apply to any
foreign-invested enterprise located in free economy zone.
(4) Any foreign-invested enterprise located in free economy zone may grant its workers unpaid days-off and its female workers unpaid
physiologic leaves, respectively, notwithstanding the provisions of Articles 54 and 71 of the Labor Standards Act, and the provisions
of Article 57 of the same Act shall not apply to such foreign-invested enterprise located in free economy zone.
(5) The Minister of Labor may expand the work of seconding workers who are engaged in the expert types of business only to any foreign-invested
enterprise located in free economy zone after going through deliberation thereon and a resolution thereof of the Free Economic Zone
Committee and extend their seconding period, notwithstanding the provisions of Articles 5 and 6 of the Protection, etc. of Dispatched
Workers Act.
(6) The rental period of national and public properties for any foreign-invested enterprise located in free economy zone may be determined
within the scope of 50 years, notwithstanding the provisions of Articles 24 (3), 27 (1) and 36 (1) of the State Properties Act and
the provisions of Articles 82 (2) and 83 (2) of the Local Finance Act, and permanent facilities may be installed by such foreign-invested
enterprise. In this case, the term may be laid down taking into account the kinds of the relevant facilities that requires the relevant
foreign-invested enterprise to donate such facilities to the State or the local government concerned or to return such facilities
after restoring them to their original state when the rental period expires.
Article 18 (Preferential Assistance in Infrastructure)
The State and local governments shall provide preferential assistances in the construction of infrastructures such as roads and water
supply to vitalize the free economic zones under the conditions as prescribed by the Presidential Decree.
Article 19 (Maintenance of Industrial Peace)
The employer of every enterprise located in every free economic zone and his workers shall endeavor to maintain the industrial peace
by strictly abiding by the procedures provided for in relevant Acts for labor disputes.
CHAPTER V IMPROVEMENTOF LIVINGCONDITIONS FOR FOREIGNERS
Article 20 (Provision of Foreign-Language Services)
(1) The Mayor/Do governor shall render foreign-language services through the publication, receipt and handling of official documents
in foreign languages with the aim of enhancing conveniences for foreign-invested enterprises located in free economy zone and foreigners.
(2) Necessary matters concerning the scope and methods of rendering the foreign-language services referred to in paragraph (1) shall
be prescribed by the Presidential Decree.
Article 21 (Payment in Ordinary Transaction)
Within any free economic zone the price in the ordinary transaction whose scale is smaller than that prescribed by the Presidential
Decree may be paid directly by means of the foreign exchange between the parties of such transaction in accordance with Article 3
(1) 4 of the Foreign Exchange Transaction Act.
Article 22 (Establishment and Operation of Foreign Educational Institutions)
(1) Notwithstanding the provisions of Article 3 of the Private School Act, any foreign school corporation may establish a foreign
educational institution in any free economic zone after obtaining approval therefor from the Minister of Education and Human Resources
Development.
(2) The Minister of Education and Human Resources Development shall, when he intends to grant approval for the establishment of any
foreign educational institution in accordance with paragraph (1), go through deliberation thereon and a resolution thereof of the
Free Economic Zone Committee.
(3) Necessary matters concerning the establishment and operation of a foreign educational institution under paragraph (1), including
qualifications for any foreign school corporation entitled to establish such foreign educational institution and conditions for granting
approval for establishing such foreign educational institution, shall be prescribed by separate Acts.
(4) The provisions of Articles 7, 8 and 18 of the Seoul Metropolitan Area Readjustment Planning Act shall not apply to any foreign
educational institution established pursuant to paragraph (1).
(5) In the event that people at home intend to get into any foreign educational institution located in any free economic zone or any
foreigners school established in accordance with Article 60-2 of the Elementary and Secondary Education Act, the State shall not
restrict their admissions on the grounds of the requirements of foreign residence.
(6) The State and local governments may provide any foreign educational institution established in any free economic free zone with
funds needed to purchase sites, install facilities and operate itself, or with sites themselves.
(7) Any high school that is located in any free economic zone and established with the aim of graduating internationally and professionally
trained students through the education on international relations and specific foreign region, etc. (hereinafter referred to as the
international high school ) may stipulate contract terms that include appointment qualifications, appointment period, salaries,
work conditions and the records and achievements of teaching, etc. and appoint foreign teachers needed to operate its curriculums,
under the conditions as prescribed by the Presidential Decree, notwithstanding Article 21 of the Elementary and Secondary Education
Act, Articles 6 and 32 (1) of the Public Educational Officials Act and Articles 52 and 54-4 (1) and (3) of the Private School Act.
(8) The provisions of Articles 23, 24, 26, 29 and 46 of the Elementary and Secondary Education Act shall not be required to apply
to the international high school.
(9) The director of the international high school may permit any foreigner with academic attainments equal to or higher than the graduation
of any junior high school to be admitted to his international high school, notwithstanding the provisions of Article 47 of the Elementary
and Secondary Education Act.
Article 23 (Opening of Medical Institutions or Foreigner-Only Pharmacies)
(1) Any foreigner may open a medical institution in a free economic zone after obtaining permission therefor from the Minister of
Health and Welfare, notwithstanding the provisions of Article 30 (2) of the Medical Service Act. In this case, the kinds of medical
institution shall be a general hospital, a hospital, a dental clinic and a medical care hospital provided for in Article 3 of the
same Act. <Amended by Act No. 7349, Jan. 27, 2005>
(2) Any foreigner may open a foreigner-only pharmacy in any free economic zone after having such pharmacy registered with the Minister
of Health and Welfare.
(3) In the event that the Minister of Health and Welfare grants permission for opening any medical institution in accordance with
paragraph (1), he shall go through deliberation thereon and a resolution thereof of the Free Economic Zone Committee. <Amended
by Act No. 7349, Jan. 27, 2005>
(4) Any medical institution or foreigner-only pharmacy that is opened under this Act shall be deemed the medical institution or the
pharmacy that is opened under the Medical Service Act or the Pharmaceutical Affairs Act. <Amended by Act No. 7349, Jan. 27, 2005>
(5) Any medical institution or foreigner-only pharmacy that is opened in accordance with paragraphs (1) and (2) shall not be deemed
any medical care institution that is established pursuant to the National Health Insurance Act, notwithstanding the provisions of
Article 40 (1) of the same Act. <Amended by Act No. 7349, Jan. 27, 2005>
(6) Any holder of the foreign medical license, the foreign dental license or the foreign pharmaceutical license may, if he is in conformity
with the standards set by the Minister of Health and Welfare, work for any medical institution or foreigner-only pharmacy that is
opened in any free economic zone. In this case, the holder of the foreign medical license or the foreign dental license may not render
his medical or dental services beyond the scope of duties permitted under Article 2 of the Medical Service Act. <Amended by Act
No. 7349, Jan. 27, 2005>
(7) Any pharmaceutist who works for a foreigner-only pharmacy shall be prohibited from preparing or selling medical practice and dispensary
for local people. <Amended by Act No. 7349, Jan. 27, 2005>
(8) Any opener of the foreigner-only pharmacy shall put up any signs, inside and outside such foreigner-only pharmacy, that serve
for local people to easily understand its exclusive medical services only for foreigners. <Amended by Act No. 7349, Jan. 27, 2005>
(9) In the event that the Minister of Health and Welfare prescribes separately matters necessary for the application of the relevant
regulations to medical institution or foreigner-only pharmacies, he shall go through deliberation thereon and a resolution thereof
of the Free Economic Zone Committee. <Amended by Act No. 7349, Jan. 27, 2005>
Article 24 (Retransmitting of Foreign Broadcasts)
Any integrated broadcasting business operator who runs his broadcasting business covering free economic zones may constitute and operate
the number of channels used to retransmit foreign broadcasts to such free economic zones within the scope prescribed by the Presidential
Decree, notwithstanding the provisions of Article 70 (1) of the Broadcasting Act.
CHAPTER VI FREEECONOMICZONE COMMITTEE, ETC.
Article 25 (Establishment and Operation)
(1) The Free Economic Zone Committee shall be established under the Ministry of Finance and Economy to deal with affairs involving
free economic zones.
(2) The Free Economic Zone Committee shall deliberate and resolve on the matters falling under each of the following subparagraphs:
1.Matters concerning the basic policy and the system with regard to free economic zones;
2.Matters concerning the designation, the cancellation of designation, and the alteration of designation, of any free economic zone;
3.Matters concerning any plan for developing free economic zone under Article 6;
4.Matters concerning the provision of administrative services needed by foreign-invested enterprises to run their businesses in free
economic zones;
5.Matters concerning the development of free economic zones;
6.Matters concerning the coordination of opinions with the heads of central administrative agencies and the Mayor/Do governor in connection
with free economic zones; and
7.Other necessary matters concerning the designation and operation of any free economic zone, which are prescribed by the Presidential
Decree.
(3) The Free Economic Zone Committee shall consist of one chairman, one vice chairman, ex officio members and not more than 10 commissioned
members.
(4) The Minister of Finance and Economy shall be the chairman and the vice chairman shall be the person who is elected from among
the commissioned members referred to in paragraph (6).
(5) The ex officio members shall be the persons prescribed by the Presidential Decree from among the heads of central administrative
agencies and the heads of institutions corresponding to the former.
(6) The commissioned members shall be commissioned by the chairman from among the persons of profound knowledge and experiences contributable
for the development and operation of the free economic zones, who are not public officials.
(7) Necessary matters concerning the composition and operation of the Free Economic Zone Committee shall be prescribed by the Presidential
Decree.
Article 26 (Free Economic Zone Planning Group)
(1) The free economic zone planning group shall be established under the Ministry of Finance and Economy to perform the work of assisting
the Free Economic Zone Committee at the working-level.
(2) The free economic zone planning group shall perform the tasks falling under each of the following subparagraphs:
1.The formulation and planning of policies and systems with regard to the free economic zones;
2.The operation of the legal system with regard to the free economic zones;
3.Consultations about any plan for developing any free economic zone;
4.The assistance in the operation of the Free Economic Zone Committee such as preparation of the agenda, etc.;
5.The survey of materials, public relations and international cooperation with regard to the free economic zones; and
6.Other matters prescribed by the Presidential Decree.
(3) Necessary matters concerning the composition and operation of the free economic zone planning group shall be prescribed by the
Presidential Decree.
Article 27 (Special Case of Dealing with Administrative Affairs by Local Governments, etc.)
(1) The Mayor/Do governor shall perform administrative affairs falling under each of the following subparagraphs for himself from
among the administrative affairs that the head of Si/Gun/Gu is mandated to perform within the free economic zone: <Amended by
Act No. 6841, Dec. 30, 2002; Act No. 6916, May 29, 2003; Act No. 7291, Dec. 31, 2004; Act No. 7349, Jan. 27, 2005; Act No. 7476,
Mar. 31, 2005; Act No. 7678, Aug. 4, 2005>
1.Affairs of supervision of the housing associations and the supply of housing, etc. under Articles 29, 32, 34, 38, 90, 91, 93 and
101 of the Housing Act;
2.Affairs of permission for construction and affairs of management, etc. of structures under the provisions of Articles 4, 8, 9, 10,
12, 14 through 16, 18, 23, 25, 25-2, 27, 28, 29, 29-2, 35, 36, 51, 67, 69, 70, 72, 74, 76-2, 76-3, 82 and 83 of the Building Act
(excluding the affairs of permission for construction and management of structures within the district of development restrictions);
3.Administrative affairs involving the assessment of impacts on environment under Article 6 of the Act on Assessment of Impacts of
Works on Environment, Traffic, Disasters, etc.;
4.Administrative affairs involving the implementation, etc. of recycling by the person generating wastes under Articles 15, 41 and
42 of the Act on the Promotion of Saving and Recycling of Resources;
5.Administrative affairs involving the control of business place wastes under Articles 24, 43, 45, 46, and 63 of the Wastes Control
Act;
6.Administrative affairs involving the conservation of soil environment under Articles 8, 11, 11-2, 12, 24, 26-2 and 32 of the Soil
Environment Conservation Act;
7.Deleted; <by Act No. 7349, Jan. 27, 2005>
8.Administrative affairs involving the installation, etc. of treatment facilities of wastewater and separate septic tanks under Articles
9, 10, 12, 14, 14-2, 46 and 58 of the Act on the Disposal of Sewage, Excreta and Livestock Wastewater;
9.Deleted; <by Act No. 7349, Jan. 27, 2005>
10.Administrative affairs involving the installation and management, etc. of used water treatment under Articles 11 and 65 of the
Water Supply and Waterworks Installation Act;
11.Deleted; <by Act No. 7349, Jan. 27, 2005>
12.Administrative affairs involving the management of sewerage, etc. under Articles 7, 20, 21-2, 22 through 24, 24-2, 26 through 29,
32, 37, 37-2, 38, 39, 40 and 42 of the Sewerage Act;
13.Deleted; <by Act No. 7349, Jan. 27, 2005>
14.Administrative affairs involving the management and utilization of forest, including permission for logging standing timbers, diverting
the use of mountainous districts and collecting stones, earth and sand under Article 90 of the Forestry Act and Articles 14, 15,
25 and 32 of the Management of Mountainous Districts Act;
14.Administrative affairs involving the utilization and management of forest such as permission for felling standing trees under the
Creation and Management of Forest Resources Act, diverting the use of mountainous district, and collecting stones, earth and sand
under Articles 14, 15, 25 and 32 of the Management of Mountainous Districts Act; Enforcement Date: August 5, 2006
15.Administrative affairs involving the preparation of a plan for creating urban parks, and the creation, management, etc. of urban
parks under Articles 16 through 25, 27, 29 through 33, 36 through 41, 43, 45 through 47, 49 (3), 51, and 56 of the Urban Parks, Green
Areas, etc. Act, (limited to the urban parks to be installed under the implementation plan under Article 9 of this Act);
16.Administrative affairs involving the formulation of farmland utilization plans, permission for and consultations, etc. on the farmland
diversion under Articles 8, 10, 11, 13, 36 through 48, 53, 56, 57 and 65 of the Farmland Act;
17.Administrative affairs involving permission for the business of installing amusement park facilities and the management of such
facilities under Articles 5, 33 through 36, 72, 73 and 81 of the Tourism Promotion Act;
18.Administrative affairs involving permission for and their control, etc. of outdoor advertisements, etc. and under Articles 3, 7
through 10-2, 13, 15, 17, 20 and 20-2 of the Outdoor Advertisements, etc. Control Act;
19.Administrative affairs involving permission for occupying and using public waters and their management, etc. under Articles 5 through
10, 12 through 14, 16 through 19 and 24 of the Public Waters Management Act;
20.Administrative affairs involving application for the designation of any urban development district, etc. under Articles 3, 7, 10,
11, 25, 28 and 45 of the Urban Development Act;
21.Administrative affairs involving the imposition and collection, etc. of any fine for negligence incurred by a delay in the registration
of real estate under Articles 3 through 5 and 12 of the Act on Special Measures for the Registration of Real Estate;
22.Administrative affairs involving permission for the acquisition of land and the report thereon by foreigners, etc. under Articles
4 through 6 and 9 of the Foreigner s Land Acquisition Act;
23.Administrative affairs involving permission for development acts, execution of urban planning facilities business, permission for
land transaction contract, and the imposition and collection of fine for negligence under Articles 56 through 58, 60 through 62,
64, 85, 86, 118 through 124, 132 and 144 of the National Land Planning and Utilization Act (the roads under execution of urban planning
facilities business shall be limited to the roads to be installed under implementation plans of Article 9 of this Act and the roads
installed after obtaining a preferential support from the State or local governments under Article 18 of this Act);
24.Deleted; <by Act No. 7349, Jan. 27, 2005>
25.Administrative affairs involving the new installation, reconstruction, repairs and maintenance of local roads or Si/Gun roads,
the determination of road boundary, and the occupation of roads, etc. under Articles 11, 19, 20, 22, 23-2, 24, 25, 28, 39, 40, 50
and 54-5 of the Road Act (limited to the roads to be installed in accordance with the implementation plans under Article 9 of this
Act and the roads installed after obtaining a preferential support from the State or local governments under Article 18 of this Act);
26.through 30.Deleted; <by Act No. 7349, Jan. 27, 2005>
31.Administrative affairs involving the approval on setting up, etc. of factory and registration for factory, etc. under Articles
9, 13, 13-2, 13-3, 13-5, 14, 14-2 through 14-4, 15, 16, 16-2, 17 through 21, 28-2, 28-4, 28-8 and 55 of the Industrial Cluster Development
and Factory Establishment Act;
32.Administrative affairs involving the approval, etc. on works plan for installing the urban gas facilities under Articles 11, 11-2,
14 through 17, 27, 29, 41, 44-2 and 54 of the Urban Gas Business Act;
33.Administrative affairs involving the permission for manufacturing the high-pressure gas under Articles 4, 10, 20, 36-2 and 43 of
the High-Pressure Gas Safety Control Act;
34.Administrative affairs involving the inspection prior to the use of information and communications facilities under Article 36
of the Information and Communications Work Business Act;
35.Administrative affairs involving the examination of and registration for lands, grant of parcel number and the inspection, etc.
of cadastral survey results under Articles 3, 4, 8, 12 through 31, 35, 36, 38, 39, 45-4, 49, 50 and 53 of the Cadastral Act; and
36.Administrative affairs involving the grant of registration number for the registration of real estates under Article 41-2 of the
Registration of Real Estate Act.
(2) The Mayor/Do governor shall establish an administrative body in charge of dealing with the administrative affairs referred to
in paragraph (1) (hereinafter referred to as the administrative body ). In this case, if any free economic zone overlaps in not
less than two Cities/Dos, the relevant Mayors/Do governors shall establish a joint administrative body through consultations.
(3) The Mayor/Do governor shall appoint the head of the administrative body after consulting with the Minister of Finance and Economy
thereabout in advance. In this case, if any free economic zone overlaps in not less than two Cities/Dos, the relevant Mayors/Do governors
shall jointly appoint the head of the administrative body through consultations.
(4) In order to deal with the affairs under the provisions of paragraph (1), the data necessary for the imposition and collection
of the local tax, fees and use fees and the issuance, etc. of civil petition documents shall be provided between the head of administrative
body and the head of Si/Gun/Gu. <Newly Inserted by Act No. 7349, Jan. 27, 2005>
(5) The State shall financially support part of the expenses needed to operate the administrative body.
Article 27-2 (Regulation for Basic Operation)
(1) The heads of administrative bodies shall prepare the regulations for basic operation concerning the organization and operation
of administrative bodies and obtain an approval of Mayor/Do governor within one month from the date of appointment. The same shall
also apply to the case of alteration of approved matters.
(2) The regulations for basic operation under paragraph (1) shall contain the matters falling under the following subparagraphs:
1.Basic matters concerning the competent business and their execution procedures;
2.Matters concerning the organization and operation of administrative bodies and the operation of regular personnel of public officials;
3.Matters concerning the operation of personnel affairs of subordinate public officials;
4.Matters concerning the budget and accounting; and
5.Other matters concerning the efficient operation of administrative bodies which are prescribed by the Presidential Decree.
(3) The regulations for basic operation prepared by the heads of joint administrative bodies to be installed under the provisions
of latter part of Article 27 (2) shall be governed by the provisions of agreement under the provisions of Article 149 (1) of the
Local Autonomy Act, notwithstanding the provisions of paragraph (1).
[This Article Newly Inserted by Act No. 7349, Jan. 27, 2005]
Article 27-3 (Delegation, etc. of Appointment Authority)
(1)The Mayor/Do governor may delegate a part of appointment authority over the subordinate public officials of administrative bodies
to the heads of administrative bodies under the provisions prescribed by the Presidential Decree, notwithstanding the provisions
of Article 6 (2) of the Local Public Officials Act.
(2)The heads of administrative bodies may, notwithstanding the provisions of Article 2 (4) of the Local Public Officials Act, make
a separate provisions for the criteria for appointment qualifications for local contractual services public officials by going through
a resolution of Personnel Affairs Committee under Article 7 of the Local Public Officials Act.
(3) The Mayor/Do governor shall devise the countermeasures for securing excellent manpower of the relevant fields as the subordinate
public officials of the administrative bodies for the development project of free economic zone, the inducement of foreign investment
and the improvement, etc. of level of administrative services.
[This Article Newly Inserted by Act No. 7349, Jan. 27, 2005]
Article 28 (Ombudsman, etc.)
(1) An ombudsman shall be appointed in the administrative body with the assignment of resolving bottlenecks to the management of any
foreign-invested enterprise located in free economy zone and to living conditions of foreigners.
(2) A branch office of any incorporated association that performs commercial arbitrations designated by the Minister of Commerce,
Industry and Energy under Article 40 of the Arbitration Act shall be set up in the administrative body with the assignment of settling
fairly and speedily any commercial dispute and keeping international transactions in order in any free economic zone.
CHAPTER VII SUPPLEMENTARY PROVISIONS
Article 29 (Publication)
(1) The Minister of Finance and Economy may publish any type of business or any facilities prescribed by the Presidential Decree from
among the types of business or facilities, which are judged inappropriate to be located in any free economic zone in the light of
the operational objective of the free economic zones (hereinafter referred to as the inaccessible type of business, etc. ) after
going through deliberation thereon or a resolution thereof of the Free Economic Zone Committee.
(2) In the event that any inaccessible type of business, etc. is located in any free economic zone, the Minister of Finance and Economy
may order the relevant enterprise to suspend the business or shut down the facilities. The same shall apply to a case where any person
who is located in any free economic zone converts the type of his business to the inaccessible type of business and installs facilities
for such business, which are both published in accordance with paragraph (1).
(3) The Minister of Finance of Economy shall, when he intends to order the type of business suspended and the facilities shut down
under paragraph (2), hold a hearing.
(4) In the event that any person under orders given in accordance with paragraph (2) fails to execute the orders, the Minister of
Finance and Economy may vicariously execute such orders under the Administrative Vicarious Execution Act.
(5) The provisions of paragraphs (2) through (4) shall not apply to any inaccessible type of business, etc. that is already located
in the relevant free economic zone at the time of the publication referred to in paragraph (1).
Article 30 (Delegation of Authority)
The heads of central administrative agencies may delegate part of their authorities under this Act to the Mayor/Do governor under
the conditions as prescribed by the Presidential Decree.
CHAPTER VIII PENAL PROVISIONS
Article 31 (Penal Provisions)
Any doctor or any pharmacist who works for a medical institution or a foreigner-only pharmacy in violation of the provisions of Article
23 (6) or (7) shall be punished by imprisonment of not more than five years or by a fine not exceeding 50 million won. <Amended
by Act No. 7349, Jan. 27, 2005>
Article 32 (Penal Provisions)
Any person falling under any of the following subparagraphs shall be punished by imprisonment of not more than three years or by a
fine not exceeding 30 million won:
1.A person who has obtained approval for establishing his foreign educational institution in a deceptive or other illegal manner in
violation of the provisions of Article 22 (1); and
2.A person who has recruited students without obtaining approval therefor from the Minister of Education and Human Resources Development
or operated the facilities in the form of a school by using the name of school in violation of the provisions of Article 22 (1).
Article 33 (Penal Provisions)
A person falling under anyone of the following subparagraphs shall be punished by imprisonment of not more than one year or by a fine
not exceeding 10 million won:
1.A person who has performed the acts provided in Article 8-2 (1) without obtaining a permission or modified permission in violation
of provisions of Article 8-2 (1); and
2.A person who has failed to put up signs of foreigner-only pharmacy in violation of Article 23 (8).
[This Article Wholly Amended by Act No. 7349, Jan. 27, 2005]
Article 34 (Joint Penal Provisions)
If the representative of a corporation, or the agent, the employed or any other employee of an individual or a corporation commits
the act of violating the provisions of Article 23 (6) or (7), such corporation or such individual shall be punished by a fine provided
for in Article 31 in addition to the punishment of the actor.
Article 35 (Fine for Negligence)
(1) Any person who has constituted and operated the number of channels used to retransmit foreign broadcasts in violation of the provisions
of Article 24 shall be punished by a fine for negligence not exceeding 20 million won.
(2) The fine for negligence referred to in paragraph (1) shall be imposed and collected by the Broadcasting Committee under the conditions
as prescribed by the Presidential Decree.
(3) Any person who is dissatisfied with a disposition taken to impose the fine for negligence referred to in paragraph (2) may raise
an objection to the person authorized to take such disposition within 30 days from the date on which he is served with the notice
of such disposition.
(4) In the event that any person subject to a disposition taken to impose a fine for negligence under paragraph (2) raises an objection
under paragraph (3), the person authorized to take such disposition shall notify the competent court of the fact without delay and
the competent court shall, upon receiving such notification, put the case on trial in accordance with the Non-Contentious Case Litigation
Procedure Act.
(5) In the event that any person fails to raise any objection within the period fixed under paragraph (3) and to pay the fine for
negligence, such fine for negligence in question shall be collected according to the example of a disposition taken to collect national
taxes in arrears.
ADDENDUM
This Act shall enter into force on July 1, 2003.
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. 6916, May 29, 2003>
Article 1 (Enforcement Date)
This Act shall enter into force six months after the date of its promulgation. (Proviso Omitted.)
Articles 2 through 13 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. 7349, Jan. 27, 2005>
Article 1 (Enforcement Date)
This Act shall enter into force three months after the date of its promulgation.
Article 2 (Application Example concerning Alteration of Development Plans for Economic Free Zone)
From among the amended provisions of Article 7-2, the provisions of concerning the alteration of the development plans for the economic
free zone demanded by the Mayor/Do governor shall apply starting from the development plans for the free economic zone for which
an alteration is demanded for the first time after enforcement of this Act.
Article 3 (Application Example concerning Legal Fiction of Designation of Distribution Complex)
The amended provisions of subparagraph 5 of Article 8 shall apply starting from economic free zone to be designated under the provisions
of Article 4 for the first time after enforcement of this Act.
Article 4 (Application Example, etc. concerning Limits on Acts within District of Development Project)
(1) The amended provisions of Article 8-2 shall apply starting from the acts performed for the first time after enforcement of this
Act.
(2) A person who undertakes the acts under the amended provisions of Article 8-2 (1) after obtaining already the permission or authorization,
etc. under the related Acts and subordinate statutes at the time of enforcement of this Act (including the case for which a permission
or authorization, etc. under the related Acts and subordinate statutes shall not be needed to obtain) may proceed the act continually
until the construction or business is completed after reporting to the Mayor/Do governor in accordance with the Presidential Decree.
Article 5 (Application Example concerning Legal Fiction of Authorization or Permission, etc.)
The amended provisions of Article 11 (1) shall apply starting from the implementation plans having obtained the approval or modified
approval under the amended provisions of Article 9 for the first time after enforcement of this Act.
Article 6 (Transitional Measures concerning Transfer of Jurisdiction of Affairs of Local Governments, etc.)
From among the affairs having been performed by the Mayor/Do governor (including the administrative bodies; hereafter in this Article
the same shall apply) at the time of enforcement of this Act under the provisions of previous Article 27 (1) and the affairs having
been performed by the heads of Si/Gun/Gu under the related Acts and subordinate statutes to be transferred to the heads of Si/Gun/Gu
or the Mayor/Do governor without concluding, the heads of Si/Gun/Gu or the Mayor/Do governor having received the transfer of said
disposal authority shall respectively receive immediately and dispose thereof. In this case, the heads of Si/Gun/Gu or the Mayor/Do
governor shall notify immediately the fact of alteration of disposal authority for said affairs to the applicant for affairs to be
taken over and disposed of.
Article 7 (Transitional Measures concerning Preparation of Basic Operation Regulation)
The heads of administrative bodies having been appointed under the provisions of Article 27 (3) at the time of enforcement of this
Act shall prepare the basic operation regulation under the amended provisions of Article 27-2 within one month after enforcement
of this Act, and obtain the approval of Mayor/Do governor who has appointed the head of said administrative bodies.
ADDENDA<Act No. 7476, Mar. 31, 2005>
Article 1 (Enforcement Date)
This Act shall enter into force six months after the date of its promulgation.
Articles 2 through 10 Omitted.
ADDENDA<Act No. 7604, Jul. 21, 2005>
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. 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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