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Laws of the Republic of Korea |
GENERAL PROVISIONSCHAPTER I
Amended by Act No. 9780, June 9, 2009
Article 1 (Purpose)
The purpose of this Act is to promote foreign investment and trade, foster better international logistics and improve regional development by designating and operating free trade zones in which free activities of manufacturing, logistics, distribution and trade are guaranteed in order to contribute to the development of the national economy. Article 2 (Definitions)
For the purpose of this Act, the definition of terms shall be as follows:
1. The term "free trade zone" means a zone in which free activities of manufacture,
logistics, distribution and trade are guaranteed
with the legal assistance of special cases
prescribed by relevant Acts, including the Customs Act and the Foreign Trade Act,
after
being designated under Article 4;
2. The term "located enterprise" means a person who meets the requirements for location
provided for by Article 10 (1) 1 through
3 and paragraph (2) of the same Article
and obtains a location permit under Article 11;
3. The term "support enterprise" means a person who meets the requirements for location
provided for by Article 10 (1) 4 and obtains
a location permit under Article 11;
4. The term "foreign-invested enterprise" means an enterprise provided for by Article 2
(1) 6 of the Foreign Investment Promotion
Act, which operates a type of business
ACT ON DESIGNATION AND
MANAGEMENT OF FREE TRADE
ZONES
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05_LawsConcerningEconomicInvestment
that does not fall under the type of business in which foreign investment is restricted
under Article 4 (3) or (4) of the same Act
Foreign Investment Promotion Act;
5. The term "factory" means a factory as defined under subparagraph 1 of Article 2 of
the Industrial Cluster Development and Factory
Establishment Act Industrial;
6. The term "customs duties" means customs duties, value-added tax, temporary import
additional tax, liquor tax, individual consumption
tax, traffic, energy and environment
taxes, the special tax for agricultural and fishing communities and education tax;
7. The term "customs territory" means a domestic area other than a free trade zone;
8. The term "importation" means the importation provided for by subparagraph 1 of Article
2 of the Customs Act;
9. The term "exportation" means the exportation provided for by subparagraph 2 of Article
2 of the Customs Act;
10. The term "foreign goods" means the foreign goods provided for by subparagraph 3
of Article 2 of the Customs Act; and
11. The term "domestic goods" means the domestic goods provided for by subparagraph
4 of Article 2 of the Customs Act.
Article 3 (Relation with Other Acts)
(1) The Customs Act shall not apply to any free trade zone except only as prescribed
for in this Act: Provided, that the same shall
not apply to any free trade zone where
the control facilities under subparagraph 3 of Article 5 are not installed.
(2) The provisions of the Act falling under each of the following subparagraphs shall
not apply to foreign-invested enterprises
among located enterprises: 1. Article 12 of the Employment Promotion for the Aged Act;
2. Article 31 of the Honorable Treatment and Support of Persons of Distinguished
Services to the State Act, Article 22 of the Honorable
Treatment of Persons of
Distinguished Services to the 5·18 Democratization Movement Act and Article 21
of Assistance to the Persons
Engaged in Special Military Mission and Establishment
of Their Organizations Act;
3. Article 24 of the Employment Promotion and Vocational Rehabilitation of Disabled
Persons Act; and
4. Article 30 of the Promotion of Collaborative Cooperation between Large Enterprises
and Small-Medium Enterprises Act.
432 Ministry of Government Legislation
DESIGNATION OF FREE TRADE ZONESCHAPTER II
Article 4 (Designation of Free Trade Zones)
(1) The head of a central administrative agency, the Special Metropolitan City Mayor,
the Metropolitan City Mayor, the Do governor,
or the governor of Jeju Special
Self-Governing Province (hereinafter referred to as the "Mayor/Do Governor") may
request the Minister
of Knowledge Economy to designate free trade zones, with prior
consultation with the heads of the central administrative agencies
concerned or the
Mayor/Do Governor concerned, as prescribed by Presidential Decree. In this case,
the Mayor/Do Governor may request
any administrative authorities of free trade zones
pursuant to the categories of subparagraphs of Article 8 (1) to consult with
the heads
of the appropriate central administrative agencies or Mayors/Do Governors, on behalf
of the Mayor/Do Governor, and the
administrative authorities of free trade zones who
have received such requests shall comply forthwith unless there are justifiable
reasons
not to do so.
(3) The Minister of Knowledge Economy shall designate the free trade zone after
examining the actual area, the necessity for such
designation, and designation
requirements provided for by Article 5. After going through deliberation thereon by
the Free Trade
Zone Committee (hereafter in this paragraph referred to as the "Free
Trade Zone Committee"): Provided, That if all or part of a
site intended to be
designated as a free trade zone under Article 7 is to be designated as such, such
designation need not go through
deliberation of the Free Trade Zone Committee.
(4) The Minister of Knowledge Economy shall, when intending to designate any free
trade zone under paragraph (3), consult in advance
with the Minister of Finance and
Economy thereon.
(5) The Minister of Knowledge Economy shall, whenever a designation of any free trade
zone is made in accordance with paragraph
(3), notify the location, boundary, and
land area of such free trade zone and other matters prescribed by Presidential Decree.
He shall then notify the head of the appropriate central administrative agency and
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in Korea 433
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the appropriate Mayor/Do Governor of the details of such notification.
(6) The Mayor/Do Governor shall, upon the receipt of the notice referred to in paragraph
(5), make details of the notification available
for public inspection for not less than
14 days.
Article 5 (Requirements for Designating Free Trade Zones)
A free trade zone may be designated when an area fulfills the requirements
falling under
each of the following subparagraphs:
1. An area that falls under any of the following items and meets the standards, including
cargo handling capacity, as prescribed
by Presidential Decree:
(a) An industrial complex provided for by subparagraph 5 of Article 2 of the Industrial
Sites and Development
Act;
(b) An airport and hinterland provided for by subparagraph 7 of Article 2 of the
Aviation Act;
(c) A Logistics terminal and cluster provided for by subparagraphs 2 and 6 of Article
2 of the Development and Management of Logistics
Facilities Act;
(d) Deleted;
(e) A harbor and hinterland provided for by subparagraph 1 of Article 2 of the Harbor
Act;
2. Infrastructure, including roads, is fully established or which can be fully established;
and
3. Facilities that are prescribed by Presidential Decree as being necessary to efficiently
control the shipment of goods into or
out of any free trade zone (hereinafter referred
to as "control facilities") are already installed or a plan for installing control
facilities
has been finalized.
Article 6 (Changes in Free Trade Zones)
(1) The head of the central administrative agency or the Mayor/Do Governor, who has
requested designation of a free trade zone in
accordance with Article 4 (1), may,
when necessary to operate such free trade zone, ask the Minister of Knowledge
Economy to change
the location, boundary or land area of such free trade zone.
434 Ministry of Government Legislation
(2) In the event that the grounds for designating a free trade zone are recognized to no
longer exist or the head of the central
administrative agency or the Mayor/Do Governor
requests revocation of its designation, the Minister of Knowledge Economy may revoke
the designation of such free trade zone.
Article 7 (Designation of Intended Sites for Free Trade Zones)
(1) The Minister of Knowledge Economy may, upon receipt of a request
from the head
of a central administrative agency or the Mayor/Do Governor, designate an area
(including its intended site) falling
under any item of subparagraph 1 of Article 5
as an intended site for a free trade zone (hereinafter referred to as an "intended
site").
(2) The head of the central administrative agency or the Mayor/Do Governor who has
requested the designation of an intended site
under paragraph (1) may, if necessary,
ask the Minister of Knowledge Economy to change the location, boundary, or land
area of
such site.
(3) The designation period of each intended site shall not exceed three years: Provided,
That the Minister of Knowledge Economy
may, if he recognizes it is inevitable to
extend the designation period on the grounds of a change in the development plan
for
the intended site, extend the designation period up to three years.
(4) The Minister of Knowledge Economy shall determine whether or not to designate
the intended site as a free economic zone before
the designation period of the site
expires.
(5) The Minister of Knowledge Economy shall, if he determines not to designate any
intended site as a free trade zone under paragraph
(4), immediately revoke his
designation of such site.
and (4) shall not apply mutatis mutandis to any change in trivial matters such as
any partial change in any land area that is prescribed
by Presidential Decree.
Article 8 (Administrative Authority)
(1) The administrative authority of each type of free trade zone (hereinafter referred to
as the "administrative authority") shall
be as follows:
1. The industrial complex provided for by subparagraph 1 (a) of Article 5: the Minister
of Knowledge Economy;
2. The airport and hinterland provided for by subparagraph 1 (b) of Article 5: the
Minister of Land, Transport and Maritime Affairs;
3. The logistics terminal and cluster provided for by subparagraph 1 (c) of Article
5: the Minister of Land, Transport and Maritime
Affairs;
4. Deleted; 5. The harbor and hinterland provided for by subparagraph 1 (e) of Article 5: the
Minister of Land, Transport and Maritime Affairs.
(2) The administrative authority shall perform the tasks falling under each of the following
subparagraphs in order to administer
a free trade zone:
1. Provide assistance in business activities carried out by located and support
enterprises;
2. Maintain and manage public establishments;
3. Install and operate support facilities; and
4. Other tasks performed to administer or operate the free trade zone.
Article 9 (Categorization of Free Trade Zones)
The administrative authority may categorize free trade zones into a production facility
district, a logistics facility district,
a support facility district and other district that is
prescribed by Presidential Decree according to its function and characteristics.
Article 10 (Requirements for Location)
(1) The party who is qualified to locate in any free trade zone shall be a party as classified
436 Ministry of Government Legislation
under each of the following subparagraphs: 1. Any person who intends to operate a manufacturing business for export as his
primary business, and the relative importance of
its exports comply with the
standards determined by Presidential Decree;
1-2. Any foreign-invested company that intends to operate a manufacturing business,
and the relative importance of its foreign investments
comply with the standards
determined by Presidential Decree;
2. Any person who intends to operate a wholesale export/import business as his primary
business, and the relative importance of export
and import transactions comply with
the standards determined by Presidential Decree;
3. Any person who intends to operate a business of loading and unloading, transporting,
storing, and exhibiting goods and other businesses
prescribed by Presidential Decree;
4. Any person who intends to operate a business that supports the business of located
enterprises, which is prescribed by Presidential
Decree;
5. Any public institution that is prescribed by Presidential Decree; and
6. Any State agency.
(2) The administrative authority may, when deemed necessary to ensure the smooth
operation of international
logistics and the development of communities, permit any
person who intends to operate a manufacturing business to locate in any
free trade
zone after consultation with the Minister of Knowledge Economy even if he fails
to meet the requirements referred to
in paragraph (1) 1.
(1) Any person who intends to locate in a free trade zone in order to operate a business
therein shall obtain a location permit
from the administrative authority. The same shall
apply to a case where he intends to have permitted matters changed.
(2) In granting
the location permit referred to in paragraph (1), the administrative authority
may preferentially grant a location permit to any
person falling under any of the
following subparagraphs: 1. A foreign-invested enterprise;
2. A person who operates a business using high technology that is critically needed
to enhance international competitiveness of the
domestic industry under Article
121-2 (1) 1 of the Restriction of Special Taxation Act; and
3. A person who intends to operate a business primarily for the purpose of exporting
Laws on Green Growth, and Economic Investment
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05_LawsConcerningEconomicInvestment
the latter's goods.
(3) Necessary matters concerning the location permit referred to in paragraph (1) and
any change in the location permit shall be
prescribed by Presidential Decree.
Article 12 (Grounds of Disqualification)
A person falling under any of the following subparagraphs shall be disqualified from
obtaining a location permit provided for by
Article 11 (1):
1. Deleted; 2. An incompetent or quasi-incompetent person;
3. A person who has yet to be reinstated after having been declared bankrupt;
4. A person who has been sentenced to imprisonment with prison labor on charges of
violating this Act or the Customs Act and for
whom 2 years have yet to pass from
the date on which the execution of the sentence has concluded (including any case
where the
execution of the sentence is deemed terminated) or the execution of the
sentence is exempted;
5. A person who is in the period of a stay of execution after having been sentenced
to imprisonment with prison labor on charges
of violating this Act or the Customs
Act;
6. A person who has been sentenced to a fine or a notification disposition in accordance
with Articles 56, 57, and 59 through 61
of this Act and Article 269 through 271 or
274 of the Customs Act and for whom two years have yet to pass from the date on
which
he pays the fine and implements the notification disposition: Provided, That any
corporation, any natural person or any individual
who has been punished in accordance
with Article 68 of this Act and Article 279 or 280 of the Customs Act shall be excluded;
7. A person who has defaulted in customs duties or any domestic tax;
8. A corporation that employs a person falling under subparagraphs 2 through 7 as an
officer on its payroll (limited to a person
in charge of managing or overseeing the
business of the relevant corporation in any free trade zones); and
9. A person for whom two years have yet to pass from the date the location permit has
been revoked in accordance with Article 15
(1) or (2).
Article 13 (Matters to Be Observed by Located Enterprises)
Any person who obtains a location permit in accordance with
Article 11 (1) shall undertake
438 Ministry of Government Legislation
the measures falling under the following subparagraphs, and in the event that any sale
and purchase agreement or any lease agreement
is terminated, new contracts shall be
entered into within three months as prescribed by Ordinance of the Ministry of Knowledge
Economy from the date on which such contract is terminated: 1. Such person shall conclude a sale and purchase agreement or a lease agreement covering
the land, factory, buildings, or other
facilities (hereinafter referred to as "factory, etc.")
in the relevant free trade zone within a period of three months as prescribed
by Ordinance
of the Ministry of Knowledge Economy from the date on which such person is granted
the location permit;
2. If such person leases a factory owned by the State or any local government, that person
shall complete the installation of facilities
necessary for the purpose of operating a
business within a period of six months as prescribed by Ordinance of the Ministry
of Knowledge
Economy from the date on which that person concludes the lease
agreement; and
3. Such person shall obtain a construction permit or make a construction report within
a period of six months as prescribed by Ordinance
of the Ministry of Knowledge
Economy from the date on which that person is granted such location permit.
Article 14 (Legal Fiction
of Approval for Newly Constructing Factory)
(1) In the event that any person who intends to locate in any free trade zone has obtained
a location permit under Article 11 (1), that person shall be deemed to have obtained
approval for newly constructing and expanding
his factory or changing the type of
business under Article 13 of the Industrial Cluster Development and Factory
Establishment Act,
and approval for newly constructing, expanding, and relocating
the factory or changing the type of business under Article 20 of
the same Act.
(2) The administrative authority may, upon approval of a location permit under Article
11 (1), issue a written location confirmation
under the conditions prescribed by
Ordinance of the Ministry of Knowledge Economy in lieu of the factory registration
certificate
provided for in Article 16 (1) of the Industrial Cluster Development and
Factory Establishment Act.
(1) In the event that any located enterprise or any support enterprise (hereinafter referred
to as a "located enterprise, etc.")
unlawfully obtains a location permit or fails to meet
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its requirements for location provided for by Article 10, the administrative authority
shall revoke the location permit.
(2) The administrative authority may revoke the location permit of the located enterprise
under subparagraphs 1 through 5: 1. If he operates a business other than the business for which it has obtained the
location permit under Article 11 (1);
2. If he fails to meet the terms that were agreed upon when the location permit was
granted under Article 11 (1);
3. If he falls under the grounds for disqualification provided for by Article 12
(excluding a case where any officer falling under
any of subparagraphs 2 through
7 of Article 12 from among the officers of the corporation is replaced within three
months);
4. If he violates the provisions of Article 13; and
5. If he discontinues his business or suspends his business without justifiable grounds
during the period set by Ordinance of the
Ministry of Knowledge Economy.
(3) Any person whose location permit is revoked under paragraph (1) or (2) shall
immediately cease
to conduct his business except the tasks that are conducted in order
to execute export and import contracts already in place at
the time of revocation and
other remaining affairs prescribed by Ordinance of the Ministry of Knowledge
Economy.
(4) Any person whose location permit is revoked under paragraphs (1) or (2) shall, taking
into account the kinds and quantities
of foreign goods, goods provided for by Article
29 (1) 2 on which a report is made for their shipment into the relevant free trade
zone, and goods that are supplied from the customs territory to the relevant free trade
zone under subparagraph 3 of Article 4
of the Act on Special Cases concerning the
Refundment of Customs Duties Levied on Raw Materials for Export (hereinafter
referred
to as the "foreign goods, etc."), ship the remaining foreign goods out of the
free trade zone or transfer them to another located
enterprise within a period of six
months that is set by the head of the customs house having jurisdiction over the relevant
free
trade zone (hereinafter referred to as the "head of the customs house").
(5) Any person whose location permit is revoked under paragraph (1) or (2) shall transfer
the land or factory in the free trade
zone to another located enterprise or any other
third party that is qualified to locate in the free trade zone under the conditions
prescribed by Presidential Decree.
440 Ministry of Government Legislation
(6) The provisions of Article 25 (1) and (5) shall apply mutatis mutandis to the land
or factory that are not transferred under
paragraph (5).
Article 16 (Notification of Location Permits, etc.)
The administrative authority shall, if the authority grants
any location permit (including
any permission to change such location permit) in accordance with Article 11 (1) or revokes
any
location permit in accordance with Article 15 (1) or (2), notify the head of the customs
house of the fact under the conditions
prescribed by Presidential Decree.
Article 17 (Rental or Sale of State-Owned Land or Factory)
(1) With respect to any State-owned
land or factory in any free trade zone and in any
intended site, the administrative authority may lease or sell such State-owned
land
or factory to any located enterprise under the conditions prescribed by Presidential
Decree, after having such State-owned
land or factory transferred to that authority
by its management agency or after being designated by the Minister of Strategy and
Finance to manage or dispose of such State-owned land or factory.
(2) In the event that the administrative authority leases or sells the land or factory to
any located enterprise under paragraph
(1), the lease price thereof shall be determined
by the administrative authority after a notification following consultations with
the
Minister of Strategy and Finance, notwithstanding the provisions of Articles 32 (1),
44 and 47 of the State Properties Act.
In this case, if necessary, the price may be
denominated in foreign currency.
(3) In the event that the State-owned land or factory is leased to any located enterprise
under paragraph (1), the administrative
authority may set the rental term for up to
50 years, notwithstanding the provisions of Articles 35 (1) and 46 (1) of the State
Properties Act: Provided, That the administrative authority may, if deemed necessary,
renew the term for up to 50 years.
Article 18 (Rental or Sale of Public-Owned Land or Factory)
(1) The head of any local government may lease or sell the land or factory
that is owned
by the local government and located in the free trade zone to the located enterprise
after going through consultations
with the administrative authority.
(2) Lease or sale prices of the land or factory sold or rented by the head of any local
government
under paragraph (1) shall be governed by the Municipal Ordinance of
the relevant local government, notwithstanding the provisions
of Articles 22 through
24, 30, 32 through 34 of the Public Property and Commodity Management Act. In
this case, if necessary, the
prices may be denominated in foreign currency.
(3) In the event that any local government leases the land or factory to any located
enterprise under paragraph (1), the head of
such local government may set the rental
term for a period of up to 50 years, notwithstanding the provisions of Articles 21
and
31 of the Public Property and Commodity Management Act: Provided, That the
head of the local government may, if deemed necessary,
renew the rental term for
a period of up to 50 years.
(1) In the event that any State-owned land or factory which is located in any free trade
zone is sold, and a difficulty to pay the
price in lump sum by the purchaser is
recognized, the administrative authority may extend the payment settlement date or
allow
the purchaser to pay the price in installments under the conditions prescribed
by Presidential Decree, notwithstanding the provisions
of Article 50 of the State
Properties Act.
notwithstanding the provisions of Article 37 of the Public Property and Commodity
Management Act.
Article 20 (Reduction and Exemption of Leases)
(1) The administrative authority or the head of the concerned local government may deem
any foreign-invested enterprise located
in any free trade zone as a foreign-invested
enterprise located in any foreign-investment zone under Article 18 of the Foreign
Investment Promotion Act and may reduce or exempt the former's lease price in
accordance with Article 13 (6) or (8) of the same
Act.
(2) With respect to any foreign-invested enterprise that operates a business using high
technology that is critical to enhance the
international competitiveness of domestic
industry under Article 121-2 (1) 1 of the Restriction of Special Taxation Act, the
administrative
authority or the head of the relevant local government may reduce or
exempt the rents in addition to the reduction and exemption
of the lease price referred
to in paragraph (1).
(1) In the event that any located enterprise that has leased any land or factory under
Article 17 (1) fails to pay any amount on
its due date, the administrative authority
shall serve a notice demanding the payment of such overdue rent after setting a
deadline,
that does not exceed the period set by Presidential Decree, and in the event
that the located enterprise again fails to pay such
overdue rent within such deadline
set down in the demand notice, the administrative authority may terminate the lease
agreement
or collect such overdue rent in the same manner of action to collect any
national tax in arrears.
(2) The provisions of paragraph (1) shall apply mutatis mutandis to the lease demand
notice of the land or the factory that is leased
under Article 18 (1). In this case,
the "same manner of action taken to collect national tax in arrears" shall be deemed
the "same
manner of action taken to collect any local tax in arrears."
Article 22 (Installation of Permanent Facilities)
(1) Any person who
leases any State-owned land under Article 17 (1) on a condition
falling under any of the following subparagraphs may construct factories
and install
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permanent facilities (hereafter in this Article referred to as "permanent facilities")
thereon, notwithstanding the provisions of
Articles 18 and 47 of the State Properties
Act:
1. The person leases the land on condition that the permanent facilities will be donated
to the State at the time when the lease
term expires; and
2. The person leases the land on condition that such land will be restored to its original
condition at the time when the lease term
expires.
(2) Any person who leases land owned by any local government in accordance with Article
18 (1) on a condition falling
under any subparagraph of paragraph (1) may install
permanent facilities thereon, notwithstanding the provisions of Article 13 of
the Public
Property and Commodity Management Act.
(3) In the application of the Building Act, in the event that a factory is constructed in
any free trade zone, the "Special Metropolitan
City Mayor, Metropolitan City Mayor,
Do Governor or Special Self-Governing Province Governor" or the "head of Si/Gun/Gu
(city,
county, and district)" (excluding the head of Si under Article 17 (1) of the
Special Act on the Establishment of Jeju Special Self-Governing
Province and the
Development of Free International City; hereafter in this Article, the same shall apply)
shall each be deemed
the "administrative authority."
(4) In the event that any foreign-invested enterprise intends to acquire any land in the
free trade zone, it shall make a report
to the administrative authority of such fact,
notwithstanding the provisions of Articles 4 (1) and 6 of the Foreigner's Land
Acquisition
Act.
444 Ministry of Government Legislation
Article 24 (Restrictions on Lease and Transfer of Factory)
In the event that any located enterprise constructs a factory using foreign
goods, such
located enterprise shall be prohibited from renting or transferring such factory to any person
other than the located
enterprise within 3 years from the date on which the factory is
fully constructed: Provided, That it may lease part of the factory
to any support enterprise
after obtaining permission from the head of the customs house under the conditions
prescribed by Presidential
Decree.
Article 25 (Restrictions on Disposal of Land or Factory)
(1) When any located enterprise intends to dispose of land or a factory
acquired under
Article 17 (1) or 18 (1) before the construction of the factory is completed, it shall
transfer such land or factory
to the administrative authority.
(2) When the administrative authority finds it difficult to acquire by transfer the land
or the
factory under paragraph (1), the administrative authority may have the land
or factory transferred to another located enterprise
that is selected by the administrative
authority or to any third party who is qualified to be located in any free trade zone
in
accordance with Presidential Decree.
(3) In the event that any located enterprise transfers or leases (including under lease;
hereinafter the same shall apply) the land
or the factory acquired under Article 17
(1) or 18 (1) or allows any other person to use the land or the factory after its
completion,
the contracting party shall be limited to any located enterprise or any
third party who is qualified to be located in the free trade
zone.
(4) In cases under paragraph (3), when any located enterprise transfers or leases, or allows
any other person to use the
factory that is constructed on the land owned by the
State or any local government, it shall make a report to the administrative
authority
of such fact.
(5) The transfer price of the land referred to in paragraph (1) shall be an amount obtained
by adding up the interest and cost prescribed
by Presidential Decree to the acquisition
price and the transfer price of the factory and this may be determined by taking into
account the market price appraised by any appraisal and evaluation business operator
under the Public Notice of Values and Appraisal
of Real Estate Act: Provided, That
the transfer price of the land should not be more than the amount obtained by adding
the interest
and cost set by Presidential Decree to the acquisition price.
Article 26 (Use of Land or Factory Acquired by Auction)
(1) Any person who has acquired land or a factory in any free trade zone
by auction
or in accordance with the provisions of other Acts shall dispose of them or use them
according to the requirements falling
under each of the following subparagraphs:
1. He is required to obtain a location permit provided for under Article 11, the
conditions prescribed by Presidential Decree: Provided,
That the same shall not
apply to cases where any person who has taken over or merged a located enterprise
is qualified to be located
in any free trade zone and operates the type of business
for which he has obtained a license to operate in such free trade zones;
2. In the event that he fails to obtain a location permit under subparagraph 1, he
is required to transfer his land or factory to
other located enterprises or to any
third party who is qualified to be located in any free trade zone prescribed by
Presidential
Decree; and
3. In the event that he fails to make the transfer referred to in subparagraph 2, he
is required to transfer the land or the factory
to the administrative authority.
(2) In the event that the land or the factory is transferred to the administrative authority
under
paragraph (1) 3, the provisions of Article 25 (5) shall apply mutatis mutandis
to the transfer price.
Article 27 (Installment of Control Facilities)
(1) The administrative authority shall install control facilities in each free trade zone after
going through consultations with
the Commissioner of the Korea Customs Service
and shall publish the time from when they are operational.
(2) The administrative
authority shall maintain and manage the control facilities.
(3) The Commissioner of the Korea Customs Service may, if it is deemed
necessary to
repair or expand the control facilities, request the administrative authority to repair
or expand such control facilities.
In this case, the administrative authority shall comply
with the request from the Commissioner of the Korea Customs Service, unless
special
grounds exist that make it impossible to do so.
Article 28 (Cost of Maintaining Joint Facilities)
(1) The administrative authority may collect from located enterprises money to
cover the
cost of managing and operating facilities prescribed by Ordinance of the Ministry of
Knowledge Economy (hereafter in
this Article referred to as the "costs of maintenance")
from among joint facilities installed in any free trade zone.
GOODS SHIPPED INTO OR OUT OF FREE TRADE ZONES AND CONTROL THEREOFCHAPTER IV
(2) The standards for and means of bearing the costs
of maintenance and other necessary
matters shall be prescribed by Presidential Decree.
(3) The provisions of Article 21 (1) shall
apply mutatis mutandis to the issuance of notice
of demand payment of costs of maintenance and to dispositions taken to collect
the
costs of maintenance in arrears.
Article 29 (Goods Shipped into Free Trade Zones or Their Import)
(1) Any person who intends to ship the goods falling under any
of the following
subparagraphs into any free trade zones shall make a shipment report to the head
of the customs house under the
conditions prescribed by the Commissioner of the
Korea Customs Service: 1. Foreign goods: Provided, that the goods that fall under any of the following items
and for which data prescribed by the Commissioner
of the Korea Customs Service
is submitted shall be excluded:
(a) Foreign goods that are shipped into Korea from abroad and transshipped into
another ship, aircraft or means of transport from
the ship, aircraft and means
of transport that are loaded with such goods; and
(b) Goods on which an export declaration (hereinafter
referred to as an "export
declaration") that is filed in accordance with Article 241 of the Customs Act
is accepted; and
2. Goods that fall under any of the following items and are intended to be subject
to the application of Article 45 (1) and (2) among
the domestic goods that are
intended to be used or consumed by any located enterprise in any free trade zone:
(a) Machinery, instruments,
equipment and their parts;
(b) Raw materials, lubricants, office computers and construction materials; and
(c) Other goods that
are recognized by the Commissioner of the Korea Customs
Service as being necessary to achieve business objectives.
(2) In the event
that any person has shipped domestic goods into any free trade zone
without making a shipment report must file an application for
a written domestic goods
confirmation. The head of the customs house may issue such written domestic goods
confirmation. In this
case, procedures for issuing the written domestic goods
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confirmation and other necessary matters shall be prescribed and published by the
Commissioner of the Korea Customs Service.
(3) Notwithstanding the provisions of paragraph (1), in cases falling under any of the
following subparagraphs, any person who intends
to ship goods into any free trade
zone shall file an import declaration (hereinafter referred to as an "import declaration")
required
by Article 241 of the Customs Act and pay customs duties thereon:
1. In cases where any person other than any located enterprise intends to ship foreign
goods into any free trade zone;
2. In cases where any located enterprise that is qualified to locate in any free trade
zone under Article 10 (1) 1 and (2) intends
to ship foreign goods into any free
trade zone in order to use or consume such foreign goods in such free trade zone:
Provided,
That cases where the foreign goods falling under any of the following
items are shipped into any free trade zone shall be excluded:
(a) Machinery, instruments, installations, equipment and their parts;
(b) Raw materials, lubricants, office computers and construction
materials; and
(c) Other goods that are recognized by the Commissioner of the Korea Customs
Service as being necessary to achieve
business objectives; and
3. In cases where any located enterprise qualified to locate in any free trade zone
under Article 10 (1) 2 and 3 ships foreign goods
(excluding goods necessary to
achieve the relevant business objectives from among the goods falling under any
item of subparagraph
2) into such free trade zone.
(4) In cases falling under any of the following subparagraphs, any person who intends
to ship goods
out of any free trade zone shall file an import declaration and pay
customs duties:
1. In cases where goods are to be shipped into the customs territory. Goods which
are produced after going through the course of
manufacture, process, assembly,
repair, etc., using foreign goods, in whole or in part, in any free trade zone; and
2. In cases where foreign goods are to be shipped out of any free trade zones into
the customs territory in their original form.
Article 30 (Shipment and Export of Foreign Goods out of Korea)
(1) Any person who intends to ship foreign goods out of Korea (including
the supply
of foreign goods to any foreign trade ship or any foreign trade aircraft; hereinafter
448 Ministry of Government Legislation
the same shall apply) shall make a report to the head of the customs house under
the conditions prescribed by Presidential Decree:
Provided, That the same shall not
apply to any goods that fall under any item of Article 29 (1) 1 and on which the
data prescribed
by the Commissioner of the Korea Customs Service is submitted.
(2) The provisions of Articles 226, 242, 245, 246 (1) and (2), the
proviso to 247 (1),
249 and the main sentence of 250 (1), (2) and (3), and 251 of the Customs Act shall
apply mutatis mutandis
to the report on the shipment of foreign goods out of Korea
referred to in paragraph (1). In this case, the "export and import"
provided for by
Article 226 (1) of the Customs Act shall be deemed as the "shipment of goods out
of Korea," the "export and import
goods" provided for by Article 226 (2) of the
same Act shall be deemed as the "goods shipped out of Korea," the "export declaration"
provided for by the proviso of Article 242 and Article 251 (1) and (2) of the same
Act shall be deemed as the "report on the shipment
of goods out of Korea," the "export
goods" provided for by the proviso to Article 242 of the same Act shall be deemed
as the "goods
shipped out of Korea," and the "export" provided for by Articles 245
(1) and (2), 246 (1), the proviso of 247 (1), 249, and 250
(2) and (3) of the same
Act shall be deemed as the "shipment of goods out of Korea," respectively.
(3) Any person who intends to ship any goods that are not foreign goods out of any
free trade zone into any foreign country shall
file an export declaration.
Article 31 (Confirmation of Shipment of Domestic Goods out of Free Trade
Zones)
Any person who intends to ship domestic goods that are not foreign goods out of any
free trade zone into the customs territory shall
submit a written domestic goods
confirmation, a tax invoice, and a document verifying the fact that they have been shipped
into
such free trade zone as domestic goods to the head of the customs house: Provided,
That the same shall not apply to accessible vehicles
and baggage carried by accessible
persons and other goods that are prescribed by Presidential Decree.
Article 32 (Special Cases
for Approving Export and Import)
(1) Any person who intends to ship any goods whose import and export are restricted
under Article
11 of the Foreign Trade Act (excluding any goods that are under a
coordination order given under Article 46 of the same Act) into
any free trade zone
or out of any trade zone to any foreign country shall obtain approval therefor from
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the Minister of Knowledge Economy (from the head of the customs house in cases
where he intends to ship such goods into or out of
any area falling under subparagraph
1 (b) through (e) of Article 5; hereafter in this Article, the same shall apply). In
this case,
the approval granted by the Minister of Knowledge Economy shall be deemed
approval granted in accordance with the Foreign Trade
Act.
(2) The items of goods falling under the export and import guidelines that are integrated
and notified in accordance with Article
12 of the Foreign Trade Act may be shipped
into or out of any free trade zone into any foreign country, notwithstanding the export
and import guidelines that are prescribed and notified by the administrative agencies
concerned: Provided, That the same shall
not apply to any import-restricted items,
including narcotics, firearms, rotten foods, and the like that are prescribed separately
in the relevant integrated notification.
(4) Any person who intends to ship the goods referred to in paragraph (2) into the customs
territory shall ship such goods according
to the export and import guidelines that are
prescribed in the integrated notification provided for by Article 12 of the Foreign
Trade Act.
(1) In the event that any located enterprise intends to ship foreign goods into the customs
territory (including any foreign goods
that such located enterprise intends to ship
directly into the customs territory from any foreign country) for the purpose of
processing
or repairing them, such located enterprise shall decide on the scope of
450 Ministry of Government Legislation
the repair and process of work (hereinafter referred to as "work done outside free
trade zones"), the shipment period, the goods
subject to shipment and the place where
the shipment is to be made and accordingly make a report thereon to the head of
the customs
house.
(2) The head of the customs house shall, if the report referred to in paragraph (1) is
made in conformity with the provisions of
this Act, accept such report without delay.
(3) All necessary matters concerning the work done outside the free trade zone, shall
be prescribed by Presidential Decree.
(4) The provisions of Article 187 (2), (4) and (6) of the Customs Act shall apply mutatis
mutandis to the acceptance of the report
on the work done outside the free trade
zone. In this case, in Article 187 (2), (4) and (6) of the Customs Act, the word
"permission"
shall be deemed "acceptance of the report," "bonded factory" shall be
deemed "free trade zone" and "operator" shall be deemed "located
enterprise,"
respectively.
Article 35 (Report on Shipment of Goods Processed or Repaired outside Free
Trade Zones)
(1) In the event that any located enterprise intends to ship goods that are processed and
repaired outside any free trade zone from
a place to which they have been shipped
for processing and repair into the customs territory, the provisions of Article 29 (4)
shall apply mutatis mutandis to such case.
(2) In the event that any located enterprise intends to ship goods that are processed and
repaired outside any free trade zone from
a place to which they have been shipped
for their processing and repair directly to any foreign country, the provisions of Article
30 (1) and (2) shall apply mutatis mutandis to such cases.
(3) In the event that any located enterprise intends to dispose of waste
Articles arising
from the processing or repair work that is performed outside any free trade zone,
he shall make a report thereon
to the head of the customs house.
Article 36 (Bonded Transportation)
(1) The bonded transportation of foreign goods may only be made between one free trade
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zone and another free trade zone or a place provided for in each subparagraph of
Article 213 (1) of the Customs Act
Article 38 (Inventory Record)
(1) Every located enterprise shall record and manage matters such as the names of items,
standards, quantities, and prices of the
goods falling under each of the following
subparagraphs, which are needed to manage their inventory, under the conditions
prescribed
and published by the Commissioner of the Korea Customs Service:
Provided, That the same shall not apply to any goods whose prices
are below the
amount that are prescribed and published by the Commissioner of the Korea Customs
Service and any other goods that
are prescribed by Presidential Decree:
1. Goods that are shipped into any free trade zone;
2. Goods that are used, consumed or produced in any free trade zone; and
3. Goods that are shipped out of any free trade zone.
(2) In the event that the goods referred to in each subparagraph of paragraph
(1) fall
under the domestic goods provided for by Article 29 (1) 2, every located enterprise
shall record and manage matters necessary
for their inventory, separate from the
inventory of other goods.
452 Ministry of Government Legislation
(3) In the event that foreign goods are destroyed, lost or intended to be disposed, every
located enterprise shall make a report
thereon to the head of the customs house under
the conditions as prescribed by Presidential Decree.
(4) Every located enterprise
shall keep the material that is recorded in accordance with
paragraph (1) or (2) for the period fixed by Presidential Decree.
Article
39 (Check of Current State of Inventory Management by Located
Enterprises)
(1) The head of the customs house may require public officials posted at that customs
house to check whether any located enterprise
properly manages its inventory under
Article 38. In this case, such public official assigned to conduct the check shall carry
a
certificate evidencing his authority and produce it to persons concerned.
(2) The head of the customs house may request any located
enterprise to submit its
accounting book, its management ledger concerning raw materials and its manufactured
goods and other necessary
materials that are needed to conduct the check referred
to in paragraph (1).
(3) Every located enterprise shall be prohibited from refusing, impeding or evading the
inspection referred to in paragraph (1)
without justifiable grounds or refusing to submit
the material referred to in paragraph (2).
(4) In the event that the inventory of foreign goods is found to fall short, as a result
of the inspection conducted under paragraph
(1), the head of the customs house shall
collect without delay the customs duties of such shortfall from the relevant located
enterprise
under the conditions prescribed by Presidential Decree: Provided, that the
same shall not apply to cases where the goods on which
a loss report is made in
accordance with Article 38 (3) are confirmed to exist in any free trade zone and the
goods are destroyed
on the grounds of disaster or other inevitability.
Article 40 (Disposal of Goods)
(1) With respect to the goods falling under any of the following subparagraphs, the head
of the customs house may order their owner,
their shipper and their agent (hereinafter
referred to as the "owner of the goods") to ship the goods located in any free trade
zone out of Korea or to dispose of them, or dispose of them directly after notifying
in advance the owner of the goods of such
fact: Provided, That the head of the customs
house shall, if special circumstances exist that do not permit him enough time to
notify the owner of the goods, notify him of the disposal of the goods after disposing
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thereof without delay:
1. Goods that are expected to harm human life and property;
2. Goods that are rotten or qualitatively changed;
3. Goods that have expired use-by dates; and
4. Goods that correspond to those referred to in subparagraphs 1 through 3 and
prescribed and published by the Commissioner of the
Korea Customs Service.
(2) In the event that the head of the customs house is unable to notify the owner of
the goods under paragraph
(1) on the grounds of inability to identify the owner's
address and residence or on grounds of inevitability, the former may make
the
publication in lieu of the notification under the conditions prescribed by Presidential
Decree.
(3) In the event that the owner of the goods ships goods out of Korea or disposes of
goods under paragraph (1) or the head of the
customs house disposes the same, the
cost incurred thereby shall be defrayed by the owner of the goods.
Article 41 (Prohibition
on Shipment of Goods into or out of Free Trade Zones)
(1) Any person shall be prohibited from shipping goods falling under any subparagraph
of Article 234 of the Customs Act into or out of any free trade zone.
(2) The head of the customs house may restrict the shipment of goods, into or out of
any free trade zone, that would harm public's
health and impede the preservation
of the environment and other goods prescribed by Presidential Decree.
Article 42 (Inspection
of Goods)
(1) The head of the customs house may inspect or confirm any goods that are shipped
into or out of any free trade zone, or any goods
that are exported out of or imported
into any free trade zone.
(2) The inspection or confirmation of the goods referred to in paragraph (1) shall be
performed in a place where the concerned goods
are stored: Provided, That the same
shall not apply to any goods that are stored in any airport, harbor or place designated
by
the Commissioner of the Korea Customs Service or any other goods that need
to be inspected thoroughly.
(3) The head of the customs house may inspect goods that are carried or transported
by persons or transport means that are allowed
access to any free trade zones under
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the conditions that are prescribed and published
by the Commissioner of the Korea
Customs Service.
(4) The provisions of Article 246 (2) or (3) of the Customs Act shall apply mutatis
mutandis to the inspection or the confirmation
referred to in paragraph (1).
Article 43 (Application of Customs Act)
In cases where any foreign goods in any free trade zone are shipped into the customs
territory, such case shall be subject to the
application of the Customs Act unless provided
for by this Act.
In cases of Article 29 (4) 1, any goods that are shipped out of any free trade zone shall
be deemed foreign goods that arrive in
Korea, and customs duties shall be levied thereon.
In this case, when any domestic goods, for which a report has not been made on
their
shipment into any free trade zone under Article 29 (2) 1, are used as raw materials after
obtaining approval from the head
of the customs house under the conditions prescribed
by Presidential Decree, the quantity or price of the concerned domestic goods
shall be
deducted from the customs duty base applied to goods that are manufactured, processed,
assembled and repaired.
Article 45 (Exemption and Refund of Customs Duties)
(1) The report of a located enterprise on the shipment of any domestic goods
into any
free trade zone in accordance with Article 29 (1) of this Act shall be deemed exported
under Article 31 (1) 1 of the Liquor
Tax Act, Article 15 (1) 1 of the Individual
Consumption Tax Act or Article 13 (1) 1 of the Traffic, Energy and Environment
Tax
Act, or exported or supplied under subparagraph 1 or 3 of Article 4 of the Act
on Special Cases concerning the Refundment of Customs
Duties Levied on Raw
Materials for Export and customs duties thereof shall be exempted or refunded.
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(2) The domestic goods referred to in paragraph (1) shall be deemed goods that shall
be exported under Article 11 (1) 1 of the Value-Added
Tax Act, and the zero rate
of the value-added tax shall apply thereto.
(3) The zero rate of the value-added tax shall apply to foreign goods and services that
are supplied or rendered between located
enterprises in any free trade zone.
Article 46 (Exemption of Customs Duties on Site)
(1) Construction materials prescribed by Presidential Decree, which any located enterprise
falling under Article 10 (1) 1 through
3 imports from any foreign country in order
to construct buildings and factories in any site or in any free trade zone that is subject
to the application of the Customs Act under the proviso to Article 3 (1), shall be
exempted from customs duties.
Article 47 (Reduction and Exemption of Taxes, including Corporate Tax)
Every located enterprise that is a foreign-invested company
may be exempted from taxes
such as corporate tax, income tax, acquisition tax, registration tax, property tax, and
composite land
tax under the conditions prescribed by the Restriction of Special Taxation
Act.
Article 48 (Exemption of Charges for Causing Traffic Congestion)
Factories of located enterprises shall be exempted from charges
for causing traffic
congestion provided for by Article 36 of the Urban Traffic Improvement Promotion Act.
Article 49 (Support of Activities Carried out by Located Enterprises to Develop
Technology)
(1) The State or local governments may provide funds necessary to facilitate technology
development activities and the training
of manpower by located enterprises in free
trade zones.
(2) The State or local governments shall work to maintain and repair factories that are
leased to located enterprises and to expand
various kinds of infrastructure such as
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SUPPLEMENTARY PROVISIONSCHAPTER VI
medical facilities, educational facilities and housing in order to support the business
of located enterprises in free trade zones
and to provide them with necessary funds.
Article 50 (Composition and Operation of Free Trade Zone Committee)
(1) The Free Trade
Zone Committee (hereinafter referred to as the "Committee") shall
be set up within the Ministry of Knowledge Economy with the mandate
to deliberate
on the matters falling under each of the following subparagraphs:
1. Matters concerning the basic policy and system for free trade zones;
2. Matters concerning the designation of free trade zones and intended sites, change
of their designation, and revocation of their
designation;
3. Matters concerning support for located enterprises in free trade zones;
4. Matters concerning cooperation and mediation of different views between the heads
of central administrative agencies and the Mayor/Do
Governor in connection with
free trade zones;
5. Matters concerning support for local governments that have free trade zones in
their jurisdiction; and
6. Other necessary matters concerning the designation and operation of free trade zones,
which are prescribed by Presidential Decree.
(2) The Committee shall consist of not more than 20 members, including one chairperson.
(3) The Minister of Knowledge Economy shall
be the chairperson of the Committee.
(4) Necessary matters concerning the composition and operation of the Committee shall
be prescribed by Presidential Decree.
Article 51 (Opening of Branch Offices)
Any agency in charge of the work necessary to support business activities carried out
by located enterprises may open its branch
offices or permanently post its staff to any
free trade zone in order to perform the work promptly.
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Article 52 (Access to Free Trade Zones)
Any person or any vehicle that intends to enter any free trade zone shall carry an access
certificate or a pass that is issued by
the administrative authority under the conditions
as prescribed by Ordinance of the Ministry of Knowledge Economy. In this case,
the
administrative authority shall notify the head of the customs house regarding the details
of access certificates or passes
that the authority has issued.
The administrative authority shall, if the authority intends to revoke any location permit
in accordance with Article 15 (1) or
(2), conduct a hearing.
Article 55 (Delegation and Commission of Authority)
(1) The heads of central administrative agencies may
entrust the administrative authority
with limited powers under the conditions prescribed by Presidential Decree.
(2) The Minister
of Knowledge Economy or the ministers of competent ministries may
entrust the administrative authority with part limited powers
provided for by the
Foreign Investment Promotion Act with respect to foreign capital introduced by located
enterprises under the
conditions prescribed by Presidential Decree.
(3) The administrative authority may delegate to the heads of agencies under his
supervision, the Mayor/Do Governor, or the head
of Si/Gun/Gu (limited to the head
of autonomous Gu), or entrust the Commissioner of the Korea Customs Service, the
heads of agencies
under his supervision, or other corporations prescribed by
Presidential Decree with limited powers provided for by this Act under
the conditions
prescribed by Presidential Decree.
Article 56 (Penal Provisions)
Any person who has shipped goods out of or into any free trade zone in violation of
458 Ministry of Government Legislation
Article 41 (1) shall be punished by imprisonment with prison labor of not more than
10 years or by a fine not exceeding 20 Million
Won.
Article 57 (Penal Provisions)
(1) Any person who has used and consumed foreign goods, shipped them into any free
trade zone without filing an import declaration
thereon and paying customs duties
in violation of Articles 29 (3) and 35 (1) or shipped goods that have been processed
or repaired
outside any free trade zone into the customs territory shall be punished
by imprisonment with prison labor of not more than 5 years
or by a fine not exceeding
an amount equivalent to the highest of either an amount ten times the customs duties
or the cost of
such goods.
(2) Any person who has shipped foreign goods out of any free trade zone into the customs
territory without filing an import declaration
and paying customs duties required under
Article 29 (4) of this Act shall be punished in accordance with Articles 269 and 270
of
the Customs Act and Article 6 of the Aggravated Punishment of Specific Crimes
Act.
Article 58 (Penal Provisions)
Any person falling under any of the following subparagraphs shall be punished by
imprisonment with prison labor of not more than
3 years or by a fine not exceeding
30 Million Won:
1. A person who has operated a business in any free trade zone after obtaining a location
permit or a changed location permit by
illegal means or without legally obtaining a
location permit or a changed location permit provided for by Article 11 (1); or
2. A person who has operated a business other than the business provided for by Article
15(3) after that person's location permit
had been revoked in accordance with paragraph
(1) or (2) of the same Article.
Article 59 (Penal Provisions)
Any person who has shipped goods out of Korea after failing to obtain permission,
recommendation, certification and other conditions,
which are required to ship goods out
of Korea, or having obtained them by illegal means, in accordance with acts and statutes
among
persons who have made reports on the shipment of goods out of Korea in
accordance with Article 30 shall be punished by imprisonment
with prison labor of not
more than 1 year or by a fine not exceeding 20 Million Won.
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Article 60 (Penal Provisions)
Any person falling under any of the following subparagraphs shall be punished by a fine
not exceeding 20 Million Won: 1. A person who has transferred any land or factory in violation of the provisions of
Article 25 (1) through (3);
2. Deleted; 3. Deleted; 4. A person who has shipped goods out of any free trade zone after making a false foreign
shipment report or without making a foreign
shipment report in violation of the
provisions of Article 30 (1) or 35 (2);
5. Deleted; 6. A person who has failed to make and manage an inventory record or has falsely made
and managed an inventory record in violation
of the provisions of Article 38 (1) or
(2);
7. A person who has failed to keep the inventory record required under Article 38 (4); or
8. A person who has resisted, obstructed, or evaded an investigation without justifiable
grounds, in violation of the provisions
of Article 39 (3) or has refused to submit
materials.
Article 61 (Penal Provisions)
Any person falling under any of the following subparagraphs shall be punished by a fine
not exceeding 10 Million Won: 1. A person who, by false and illegal means, has obtained a written domestic goods
confirmation provided for by Article 29 (2);
2. A person who has temporarily shipped foreign goods out of any free trade zone without
obtaining permission in violation of the
provisions of Article 33 or has failed to ship
them back into the free trade zone once the shipment permission period had lapsed;
3. A person who has performed work outside any free trade zone without making a report
in violation of the provisions of Article
34 (1) or 35 (3) or has disposed of Articles
of waste resulting from a process of work done outside the free trade zone;
4. A person who has performed bonded transport without making a report or obtaining
approval in violation of the provisions of Article
213 (2) or 219 (2) of the Customs
Act, which are applied mutatis mutandis by Article 36 (2);
460 Ministry of Government Legislation
5. A person who has disposed of foreign goods without making a report on the destruction
or loss thereof or making a disposal report
in violation of the provisions of Article
38 (3);
6. A person who has shipped goods out of or into any free trade zone in violation of
the provisions of Article 41 (2);
7. A person who has rejected, obstructed, or evaded an inspection or confirmation in
violation of the provisions of Article 42;
8. Deleted
(1) Any person who has aided or abetted the acts provided by Articles 56, 57 and 59
while knowing the offender's intention to commit
such act shall be punished in the
same manner as the principal offender.
(2) Any person who has prepared to commit an offense or has attempted to commit an
offense provided by Articles 56, 57 and 59 shall
be punished in the same manner
as having committed the actual offense.
Article 63 (Confiscation of Transport Apparatus Exclusively Used for Smuggling)
If the owner of any ship, automobile or other means
of transport intends to use such
means of transport exclusively to commit an offense provided for in Article 56 and such
intention
is detected, the ship, automobile or other means of transport shall be confiscated
in any case falling under any of the following
subparagraphs:
1. Where the owner has loaded, intends to or actually load smuggled Articles;
2. Where the owner refuses to follow an order given by any authoritative public official
to stop or disposes of, destroys or damages
smuggled Articles loaded in a ship with
the aim of evading arrest;
3. Where the owner takes custody of smuggled goods at sea or intends to take custody
thereof at sea; or
4. Where the owner transports smuggled goods.
Article 64 (Confiscation of Goods Used for Committing Offense)
(1) Goods that are
specially processed for committing the offense provided for in Article
56, regardless of who owns them, shall be confiscated or
the owner shall be prohibited
from benefiting from them.
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(2) In the event that goods, which are potentially used to commit the offense provided
for under Article 56, are included in other
goods, and such goods are owned by an
offender, all the goods, illegal or not, may be confiscated.
Article 65 (Offense of Acquiring
Smuggled Goods)
(1) Any person who has acquired, conceded, transported, stored, arranged or appraised
the goods falling under Articles 56, 57 and
59 shall be punished by imprisonment
with prison labor for not more than 3 years or by a fine equivalent to not more than
the cost
of such goods.
(2) Any person who has prepared to commit the offense referred to in paragraph (1) or
has attempted to commit such offense shall
be punished in the same manner for the
principal offense.
Article 66 (Concurrent Sentence of Imprisonment and Fine)
Any person who has committed the offenses provided for by Articles 56,
57 and 59 may
be concurrently sentenced to imprisonment with prison labor and a fine taking into account
circumstances under which
such offenses were committed.
Article 67 (Confiscation and Additional Collection)
(1) In cases of Article 56, the goods shall be
confiscated.
(2) In cases of Article 57, the goods that are owned and occupied by the offender shall
be confiscated.
(3) When it is impossible to confiscate the goods, in whole or in part, under paragraph
(1) or (2), an amount equivalent to the
domestic wholesale price of such goods at
the time the offense is committed shall also be collected from the offender.
(4) The
offender or the individual defined under Article 68 (1) shall be deemed the
offender in the application of the provisions of paragraphs
(1) through (3).
Article 68 (Joint Penal Provisions and Exclusion of Provisions of Criminal Act
(1) If any representative of a corporation, or any agent, employee or any other employed
person of a corporation or an individual
commits any offense in violation of any
provisions of Articles 56 through 62 in relation to the business of the corporation
or
the individual, not only such offender shall be punished, but the corporation or
the individual shall be punished by a fine prescribed
in the relevant Article: Provided,
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That the same shall not apply to cases where the corporation or the individual has
not neglected to give considerable attention
to or supervise the relevant tasks so as
to prevent such violations.
Article 69 (Investigations and Dispositions)
Any person who has violated the penal provisions of Articles 56, 57, 59, subparagraphs
4, 6 through 8 of Article 60, and 61 through
68 shall be deemed a customs offender
provided for by Article 283 (1) of the Customs Act, and the provisions of Chapter XII
(Articles
283 through 319) of the same Act shall apply to such person.
[This Article Wholly Amended, Apr. 1, 2009]
Article 70 (Fines for Negligence)
(1) Any person who has failed to transfer the land or the factory in violation of the
provisions of Articles 15 (5) and (6), or
26 shall be punished by a fine for negligence
not exceeding 5 Million Won.
(2) Any person falling under any of the following subparagraphs shall be punished by
a fine for negligence not exceeding 2 Million
Won:
1. A person who has failed to ship any remaining foreign goods, etc. out of any
free trade zone or to transfer them to any other
located enterprise in violation of
the provisions of Article 15 (4);
2. A person who has rented or transferred the factory, etc. to a person other than
a located enterprise in violation of the provisions
of Article 24;
2-2. A person who has shipped foreign goods under Article 29 (1) 1 into any free
trade zone after making a false
shipment report or without making a shipment report
in violation of the provisions of the same paragraph;
2-3. A person who has
shipped domestic goods under Article 29 (1) 2 into any free
trade zone after making a false shipment report in violation of the
provisions of
the same paragraph;
3. A person who has loaded goods in violation of the provisions of Article 251 (1) of
the Customs Act, which are applied mutatis
mutandis by the provisions of Article 30 (2);
Laws on Green Growth, and Economic Investment in Korea 463
05_LawsConcerningEconomicInvestment
3-2. A person who has shipped domestic goods into any customs territory after
submitting false evidence documents or without submitting
any evidence document
in violation of Article 31; or
4. A person who has engaged in bonded transport in violation of the provisions of
Articles 214, 215, and 216 of the Customs Act,
which are applied mutatis mutandis
by the provisions of Article 36 (2).
(3) Any person falling under any of the following subparagraphs shall be punished by a fine
for negligence not exceeding 1 Million
Won: 1. A person who has failed to make a report on the transfer, rental or use of the
factory, required by the provisions of Article
25 (4);
2. A person who has failed to submit the relevant materials or to supplement the reported
matters in violation of the provisions
of Article 245 (3) or 249 of the Customs
Act, which are applied mutatis mutandis by the provisions of Article 30 (2);
3. A person who has failed to ship goods out of any free trade zone in violation
of the provisions of Article 157-2 of the Customs
Act, which are applied mutatis
mutandis by the provisions of Article 37;
4. A person who has failed to execute an order given by the head of the customs
house to ship goods out of Korea or to dispose of
goods, without any justifiable
grounds in violation of the provisions of Article 40 (1); or
5. A person who has entered any free trade zone without acquiring an access certificate or
a pass without any justifiable grounds
in violation of the provisions of Article 52.
(4) The fine for negligence referred to in paragraphs (1) through (3) shall be levied
and
collected by the head of the customs house (referring to the administrative authority
in the cases of paragraphs (1) and (3)
1) under the conditions as prescribed by
Presidential Decree.
(5) through (7) Deleted.
ADDENDA
Article 1 (Enforcement Date)
This Act shall take effect three months after the date of its promulgation. (Proviso Omitted)
Articles 2 through 12 Omitted.
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