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ACT ON ENCOURAGEMENT OF PURCHASE OF GREEN PRODUCTS

ACT ON ENCOURAGEMENT OF

PURCHASE OF GREEN PRODUCTS

Act No. Amended by Act No.

Act No. Act No. Act No.

Act No.

7296, Dec. 31, 2004

7796, Dec. 29, 2005

8013, Sep. 27, 2006

8370, Apr. 11, 2007

8371, Apr. 11, 2007

8852, Feb. 29, 2008

Act No. 8947, Mar. 21, 2008

Act No. 8957, Mar. 21, 2008

Act No. Act No.

9335, Jan.

9584, Apr.

7, 2009

1, 2009

Act No.

9931, Jan. 13, 2010

Act No. 10030, Feb. Act No. 10550, Apr.

4, 2010

5, 2011

Act No. 10615, Apr. 28, 2011

CHAPTER GENERAL PROVISIONS

Article 1 (Purpose)

The purpose of this Act is to prevent waste of resources and environmental pollution, and contribute to sustainable development of the national economy by encouraging purchase of green products. <Amended by Act No. 10550, Apr. 5, 2011>

Article 2 (Definitions)

The terms used in this Act shall be defined as follows: <Amended by Act No. 8852, Feb. 29,
2008; Act No. 8947, Mar. 21, 2008; Act No. 9584, Apr. 1, 2009; Act No. 9931, Jan. 13,
2010; Act No. 10550, Apr. 5, 2011>
1. The term “green product” means products provided for in subparagraph 5 of Article 2 of the Framework Act on Low Carbon, Green Growth;
2. The term “public institutions” means State agencies, local governments, public institutions designated under Articles 4 through 6 of the Act on the Management of Public Institutions and other institutions prescribed by Presidential Decree.

Article 2-2 (Scope of Application)

The scope of green products subject to this Act shall be as provided for in the following:
<Amended by Act No. 10615, Apr. 28, 2011>
1. Any accredited product from among those subject to accreditation of environment marks under Article 17 (1) of the Environmental Technology and Environmental Industry Support Act, or any product that meets accreditation standards by item, determined and announced by the Minister of Environment under paragraph (3) of the same Article;
2. Any accredited product from among those subject to quality certification of recycled goods determined and announced by the Minister of Knowledge Economy under Article 33 of the Act on the Promotion of Saving and Recycling of Resources and Article 15 of the Industrial Technology Innovation Promotion Act, or any product that meets certification standards;
3. Any other green product that meets determination standards by item, which are announced by the Minister of Environment following consultation with the heads of relevant Ministries:

Article 3 (Responsibilities to Encourage Purchase of Green Products)

(1) The heads of public institutions shall actively promote formulation and implementation of plans, data surveys, education, publicity, training of human resources, etc. necessary to encourage purchase of green products. <Amended by Act No. 10550, Apr. 5, 2011>
(2) Business operators shall endeavor to produce green products, improve the quality thereof and use green materials or parts for green products. <Amended by Act No.
10550, Apr. 5, 2011>
(3) Citizens of the Republic of Korea shall endeavor to use green products for environment- friendly consumption. <Amended by Act No. 10550, Apr. 5, 2011>

Article 4 (Basic Plans for Encouraging Purchase of Green Products)

(1) The Minister of Environment shall formulate basic plans (hereinafter referred to as “basic plan”) for encouraging purchase of green products, following consultation with the heads of the relevant central administrative agencies every five years, after undergoing deliberation thereon by the Central Environmental Preservation Advisory Committee under Article 37 (1) of the Framework Act on Environmental Policy.
<Amended by Act No. 10030, Feb. 4, 2010; Act No. 10550, Apr. 5, 2011>
(2) Basic plans shall include the following matters: <Amended by Act No. 10550, Apr. 5,
2011>
1. Policy directions and promotion plans to encourage the purchase of green products;
2. Items subject to green products, determination standards and important matters on determination standards under each item of subparagraph 2 of Article 2;
3. Analysis of records of green products purchased by public institutions and measures to increase such purchases;
4. Matters on international cooperation with regard to green products;
5. Other matters recognized by the Minister of Environment as necessary to encourage the purchase of green products.
(3) If deemed necessary for formulating basic plans, the Minister of Environment may request the heads of the relevant public institutions to submit data. The heads of public institutions who are requested to submit data shall cooperate therewith, unless extenuating circumstances exist.
(4) The provisions of paragraphs (1) and (3) shall apply mutatis mutandis to any modification of the already formulated basic plans.

Article 5 Deleted. <by Act No. 10030, Feb. 4, 2010>

Article 6 (Public Institutions Obligation to Purchase Green Products)

The heads of public institutions shall purchase green products, when they intend to purchase any product: Provided, That this shall not apply in any of the following cases: <Amended by Act No. 10550, Apr. 5, 2011>
1. When no green products are available for the item intended to be purchased;
2. When the stable supply of green products is impossible;
3. When it is difficult to achieve the purposes of purchasing products, due to grounds, such as substantially deteriorated quality of green products;
4. When the heads of public institutions intend to purchase products, other than green products, in order to comply with provisions of the preferential purchase under other Acts, such as the Welfare of Disabled Persons Act;
5. When the heads of public institutions conclude that it is difficult to purchase green products, due to inevitable reasons, such as urgent demand.

Article 7 (Guidelines for Purchase of Green Products)

The Minister of Environment shall establish guidelines for the purchase of green products for the following year, as prescribed by Presidential Decree, annually, and notify the heads of public institutions of such guidelines. <Amended by Act No. 10550, Apr. 5, 2011>

Article 8 (Implementation Plans for Purchasing Green Products)

(1) The heads of public institutions shall formulate and proclaim implementation plans for purchasing green products (hereinafter referred to as “implementation plan”) for the relevant fiscal year in accordance with guidelines for purchase under Article 7 before each fiscal year begins. <Amended by Act No. 10550, Apr. 5, 2011>
(2) When the heads of public institutions formulate and proclaim implementation plans, they shall submit such plans to the Minister of Environment without delay: Provided, That the head of a Si/Gun/Gu (referring to the head of an autonomous Gu; hereinafter the same shall apply) shall submit implementation plans to the Special Metropolitan City Mayor, Metropolitan City Mayor or Do Governor (hereinafter referred to as the “Mayor/Do Governor”), and the Mayor/Do Governor shall integrate implementation plans of each Si/Gun/Gu (referring to an autonomous Gu; hereinafter the same shall apply) and submit such plans.

Article 9 (Purchase Records of Green Products)

(1) The heads of public institutions shall compile purchase records of green products pursuant to implementation plans within three months after each fiscal year ends and submit them to the Minister of Environment: Provided, That the head of each Si/Gun/Gu shall submit purchase records to the competent Mayor/Do Governor, and the Mayor/Do Governor shall collect purchase records of each Si/Gun/Gu and submit such purchase records to the Minister of Environment.
(2) If purchase records submitted by any public institution has increased or decreased in the ratio prescribed by Presidential Decree or more compared to those of the previous year, the Minister of Environment may request the public institution to submit data to verify reasons therefor.
(3) The head of any public institution in receipt of a request under paragraph (2) shall comply therewith unless extenuating circumstances exist, and notify the Minister of Environment of his/her reply within 15 days from the date on which he/she has received such request.
(4) The Minister of Environment shall compile public institutions’ records of purchasing green products and announce the compiled purchase records.

Article 10 (Request for Cooperation to Encourage Purchase of Green Products)

If deemed necessary to encourage the purchase of green products, the Minister of
Environment may request heads of the relevant public institutions to take necessary
measures concerning the following matters. In such cases, the heads of public institutions shall cooperate with such requests, unless extenuating circumstances exist: <Amended by Act No. 10550, Apr. 5, 2011>
1. Reflection of applicable provisions for the use of green products in construction specifications, etc.;
2. Reflection of purchase records of green products in items for performance assessment of central administrative agencies or local governments;
3. Other matters necessary for encouraging the purchase of green products.

Article 11 (Encouragement of Purchase of Green Products by Local Governments)

(1) If deemed necessary for encouraging the purchase of green products, the Special Metropolitan City, Metropolitan Cities and Dos (hereinafter referred to as a “City/Do”) or each Si/Gun/Gu may prescribe the following matters as Municipal Ordinances and implement such Municipal Ordinances: <Amended by Act No. 10550, Apr. 5, 2011>
1. Matters necessary for fulfilling obligations to purchase green products under
Article 6;
2. Establishment and application of standards for determining whether items other than those subject to green products are green products;
3. Other matters necessary for encouraging the purchase of green products.
(2) When each City/Do or Si/Gun/Gu establishes or amends Municipal Ordinances under paragraph (1), it shall submit such Ordinances to the Minister of Environment, without delay.

Article 12 (Roles of Administrator of Public Procurement Service)

(1) When products requested to purchase by the heads of public institutions can be replaced with green products, the Administrator of the Public Procurement Service shall adjust purchase plans to ensure that the public institutions purchase green products, following consultation with the heads of public institutions. <Amended by Act No. 10550, Apr. 5,
2011>
(2) The Minister of Environment and heads of the relevant central administrative agencies may request the Administrator of the Public Procurement Service to take necessary measures to encourage the purchase of green products, such as expanding the foundation for the electronic procurement of green products, designating green products as exemplary procurement goods, etc. <Amended by Act No. 10550, Apr. 5, 2011>

Article 13 Deleted. <by Act No. 9335, Jan. 7, 2009>

Article 14 (Request for Information on Green Products)

(1) The Minister of Environment may request heads of public institutions to submit data on selection of items subject to green products or establishment of determination standards for green products. <Amended by Act No. 10550, Apr. 5, 2011>
(2) The heads of public institutions who are requested to provide data under paragraph (1) shall cooperate therewith, unless extenuating circumstances exist.

Article 14-2 (Establishment and Operation of Data Management System of Green

Products)

(1) The Government shall establish a data management system administering the quality, safety, environment friendliness, production and distribution of green products.
(2) The Minister of Environment shall permit any public institution to send its implementation plan and purchase records of green products under Article 9 via the data management system.
(3) The Minister of Environment shall provide consumers with necessary information, such as the quality, safety and environment-friendliness of green products, where to purchase, via the data information system in order for them to reasonably select and purchase green products.

Article 15 (Support for Encouragement of Purchase of Green Products)

(1) The Government may lend each of the following support to business operators and the relevant organizations which contribute to encouraging the purchase of green products:
<Amended by Act No. 10030, Feb. 4, 2010; Act No. 10550, Apr. 5, 2011>
1. Provision of data to encourage the purchase of green products;
2. Support for fostering specialists to encourage the purchase of green products;
3. Support for sales of green products in Korea and foreign countries;
4. Support for obtaining certification concerning green products in Korea and foreign countries;
5. Subsidization of funds for producing, distributing and selling green products;
6. Support for technology transfer between enterprises to promote the production and distribution of green products;
7. Support for improving the quality of green products;
8. Support for cooperation projects under the Small and Medium Enterprises Promotion Act;
9. Support for publicity of and education on green products;
10. Other support necessary to encourage the purchase of green products.
(2) The Government may grant rewards to public institutions, business operators, relevant organizations, etc. which have excellent purchase records of green products or have contributed to encouraging the purchase of green products, as prescribed by Presidential Decree. <Newly Inserted by Act No. 8013, Sep. 27, 2006; Act No. 10550, Apr. 5, 2011>

Article 15-2 (Fostering Associations Related to Promotion of Green Products) (1) Any association related to the promotion of green products that has been established by obtaining permission from the Minister of Environment pursuant to Article 32 of the Civil Act may perform any of the following projects: <Amended by Act No. 10550, Apr.

5, 2011>
1. Survey projects such as collecting and analyzing information on the technical development, production, sales status, etc. of green products;
2. Projects for publicizing green products and educating consumers about such green products;
3. Mutual-aid projects to develop and sell new green products.
(2) If any association intends to perform a mutual-aid project pursuant to paragraph (1) 3, it shall establish mutual-aid regulations and obtain approval thereof from the Minister of Environment. The same shall also apply to any amendment of the mutual-aid regulations.
(3) Mutual-aid regulations referred to in paragraph (2) shall provide for matters necessary for the operation of a mutual aid project, such as the scope of the mutual-aid project, mutual- aid fund, mutual-aid fees, etc.
(4) The Minister of Environmental may provide any association related to the promotion of green products that performs any project referred to in the subparagraphs of paragraph (1) with financial support, etc. <Amended by Act No. 10550, Apr. 5, 2011>

Article 15-3 (Entering into Voluntary Agreements)

(1) The Minister of Environment may enter into an agreement (hereinafter referred to as “voluntary agreement”) with any producer, distributer, buyer, etc. of green products, or any association comprised thereof in order to encourage the production, distribution and purchase of green products.
(2) The Minister of Environment may provide any person who has entered into a voluntary agreement with necessary support for performing the voluntary agreement.
(3) Matters necessary for the objectives and methods of, and procedures for performing a voluntary agreement and other related matters shall be prescribed by Ordinance of the
Ministry of Environment.

Article 15-4 (Expanding Overseas Trade of Green Products)

The Minister of Environment may lend the following support in order for green product business operators to expand overseas markets for green products:
1. Jointly pioneering overseas markets for green product manufacturing or distribution business operators;
2. Support for obtaining overseas green product accreditation;
3. Provision of regulations information on green products.

Article 16 (Preferential Support, etc. of Subsidies)

The Minister of Environment may grant or support environment-related subsidies under Article 75 of the Water Supply and Waterworks Installation Act, Article 56 of the Wastes Control Act, Article 35 of the Sewerage Act, etc, to local governments which have excellent purchase records of green products, in preference to other local governments. <Amended by Act No. 8371, Apr. 11, 2007; Act No. 10550, Apr. 5, 2011>

Article 17 (Education of Persons, etc. in Charge of Purchase)

The Minister of Environment may provide education to persons in charge of purchase in public institutions, business operators, consumers, etc., as prescribed by Presidential Decree, in order to encourage the purchase of green products. <Amended by Act No. 10030, Feb. 4,
2010; Act No. 10550, Apr. 5, 2011>

Article 17-2 (Education of Specialists)

In order to educate specialists in the production and distribution of green products, the Minister of Education may designate any university, research institute or other specialized institutions as an education institution of specialists and may fully or partially subsidize expenses incurred in providing education and training. <Amended by Act No. 10550, Apr. 5,
2011>

Article 17-3 (Establishment and Operation of Green Purchasing Support

Centers)

(1) The Minister of Environment or the head of a local government may establish and operate a green purchasing support center (hereinafter referred to as “support center”), as prescribed by Presidential Decree, in order to practice green living pursuant to
subparagraph 6 of Article 2 of the Framework Act on Low Carbon, Green Growth by encourage citizens to consume green products through provision of information, education and publicity on green products.
(2) Support centers may perform the following projects, and the Minister of Environment may partially subsidize expenses incurred by any support center, or provide such support center with support necessary for carrying out its business affairs:
1. Projects for providing information on green products;
2. Education projects related to green living, such as purchase, consumption, etc. of green products;
3. Monitoring projects over distribution stores to facilitate the distribution of green products;
4. Cooperation projects with regional green product business operators;
5. Other projects for facilitating the supply of green products, that are acknowledged by the Minister of Environment.
(3) The Minister of Environment may evaluate the project performance, etc. of a support center on a regular basis in order to verify whether the support center efficiently carries out the projects referred to in paragraph (2).
(4) Matters necessary for standards for establishment of support centers, evaluation methods thereof, and other related matters shall be prescribed by Presidential Decree.

Article 18 (Boosting Sales of Green Products)

(1) Business operators who manage discount stores, departments stores or shopping centers prescribed by Presidential Decree which fall under superstores under subparagraph 3 of Article 2 of the Distribution Industry Development Act, and who manage an integrated distribution center of agricultural and fishery products, the size of which is not less than that prescribed by Presidential Decree, under subparagraph 12 of Article 2 of the Act on Distribution and Price Stabilization of Agricultural and Fishery Products shall establish and operate a selling place of green products in order to encourage the purchase of green products.
(2) Sizes of selling places or formulation and assessment of operation plans under paragraph
(1) and other necessary matters shall be prescribed by Presidential Decree.
(3) The Minister of Environment may designate any store in which a selling place under paragraph (2) has been established and operated as a green store, and necessary matters such as standards and procedures for designation, etc. shall be prescribed by Ordinance of the Ministry of Environment.
(4) The designation period of a green store under paragraph (3) shall be three years, and if any designated green store falls under any of the following cases, its designation may be revoked:
1. If the green store is designated by false or other illegal means;
2. If the green store falls short of meeting standards for designation under Article 18 (3).

Article 18-2 (Reporting, Inspections, etc.)

(1) The Minister of Environment, a Mayor/Do Governor or the head of each Si/Gun/Gu may order business operators falling under Article 18 (1) to make reports or submit data, in order to verify whether stores selling green products are established and operated, and have the relevant public officials access places of business to inspect the relevant documents or facilities. <Amended by Act No. 10550, Apr. 5, 2011>
(2) Public officials who access places of business for inspections under paragraph (1) shall carry certificates indicating their legitimate authority and produce them to relevant persons.

Article 18-3 (Hearings)

Where the Minister of Environment intends to revoke the designation of any green store pursuant to Article 18 (4), he/she shall hold a hearing in advance.

Article 19 (Delegation of Authority or Entrustment of Tasks)

(1) The Minister of Environment may partially delegate his/her authority under this Act to a Mayor/Do Governor or the heads of local environmental government agencies, as prescribed by Presidential Decree.
(2) The Minister of Environment may partially entrust his/her tasks under this Act to the relevant specialized institutions, such as the Korea Environmental Industry & Technology Institute under Article 5-2 of the Environmental Technology and Environmental Industry Support Act, as prescribed by Presidential Decree. <Newly Inserted by Act No. 8947, Mar.
21, 2008; Act No. 9335, Jan. 7, 2009; Act No. 10615, Apr. 28, 2011>

Article 20 (Fines for Negligence)

Any person who fails to establish and operate stores selling green products, in violation of
Article 18 (1) shall be punished by a fine for negligence not exceeding three million won.
<Amended by Act No. 10550, Apr. 5, 2011>

Article 21 (Imposition and Collection of Fines for Negligence)

(1) Fines for negligence under Article 20 shall be imposed and collected by the Minister of Environment or the head of each Si/Gun/Gu (referring to the head of an autonomous Gu; hereinafter referred to as “imposing authority”), as prescribed by Presidential Decree.
(2) Any person dissatisfied with a disposition of a fine for negligence under paragraph (1) may raise an objection to the imposing authority within 30 days after he/she is notified of the aforementioned disposition.
(3) If any person subject to a disposition of a fine for negligence under paragraph (1) raises an objection under paragraph (2), the imposing authority shall, without delay, notify the competent courts of the fact, which, in turn, shall proceed to a trial on the fine for negligence pursuant to the Non-Contentious Case Litigation Procedure Act.
(4) If neither an objection is raised nor is a fine for negligence paid within the period under paragraph (2), the aforementioned fine for negligence shall be collected by referring to the practices of the disposition on default of national or local taxes.

ADDENDA

Article 1 (Enforcement Date)

This Act shall enter into force six months after the date of its promulgation.

Article 2 Omitted.

ADDENDA <Act No. 7796, Dec. 29, 2005>

Article 1 (Enforcement Date)

This Act shall enter into force on July 1, 2006.

Articles 2 through 6 Omitted.

ADDENDUM <Act No. 8013, Sep. 27, 2006>

This Act shall enter into force six months after the date of its promulgation.

ADDENDA <Act No. 8370, Apr. 11, 2007>

Article 1 (Enforcement Date)

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

Articles 2 through 20 Omitted. ADDENDA <Act No. 8371, Apr. 11, 2007> Article 1 (Enforcement Date)

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

Articles 2 through 10 Omitted. ADDENDA <Act No. 8852, Feb. 29, 2008> Article 1 (Enforcement Date)

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

Articles 2 through 7 Omitted.

ADDENDUM <Act No. 8947, Mar. 21, 2008>

This Act shall enter into force six months after the date of its promulgation.

ADDENDA <Act No. 8957, Mar. 21, 2008>

Article 1 (Enforcement Date)

This Act shall enter into force on the date of its promulgation.

Articles 2 and 3 Omitted.

ADDENDA <Act No. 9335, Jan. 7, 2009>

Article 1 (Enforcement Date)

This Act shall enter into force three months after the date of its promulgation. (Proviso
Omitted.)

Articles 2 through 6 Omitted.

ADDENDA <Act No. 9584, Apr. 1, 2009>

Article 1 (Enforcement Date)

This Act shall enter into force on May 8, 2009.

Articles 2 through 6 Omitted. ADDENDA <Act No. 9931, Jan. 13, 2010> Article 1 (Enforcement Date)

This Act shall enter into force three months after the date of its promulgation. (Proviso
Omitted.)

Articles 2 through 4 Omitted.

ADDENDUM <Act No. 10030, Feb. 4, 2010>

This Act shall enter into force on the date of its promulgation: Provided, That the amended provisions of Articles 4 and 5 shall enter into force three months after the date of its promulgation.

ADDENDA <Act No. 10550, Apr. 5, 2011>

Article 1 (Enforcement Date)

This Act shall enter into force on the date of its promulgation: Provided, That the amended provisions of Articles 4 (2) and (3), 15-3, 17-3, 18 (3) and (4) and 18-3 shall enter into force six months after the date of its promulgation.

Article 2 Omitted.

ADDENDA <Act No. 10615, Apr. 28, 2011>

Article 1 (Enforcement Date)

This Act shall enter into force six months after the date of its promulgation.

Articles 2 through 9 Omitted.


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