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ENFORCEMENT DECREE OF THE FUSION ENERGY DEVELOPMENT PROMOTION ACT

Ministry of Education, Science and Technology (Nuclear Safety Division) 02-2100- 6713

Article 1 (Purpose) The purpose of this Decree is to prescribe such matters delegated in Fusion Energy Development Promotion Act, and those necessary for its enforcement.

Article 2 (Establishments of a master plan for fusion energy development promotion) The Minister of Education, Science and Technology shall report the prepared guidelines and scheduling of a master plan to the head of the relevant central administrative agency in case of establishing a master plan for fusion energy development promotion (hereinafter referred to as a "master plan") in accordance with Article 4 Fusion Energy Development Promotion Act(hereinafter referred to as "the Act").

In order to devise a mater plan, the Minister of Education, Science and Technology may, if demand necessary, request the forwarding of materials required by enterprises participating in national research and development projects, as well as relevant education/research institutes, local government and the related central administrative agency.

The "minor matters as prescribed by Preside ntial Decree" described in Article 4 (2) refers to the following subparagraphs.

1. Matters pertaining to the details of fusion energy development promotion plans.

2. The matters prescribed in the National Fusion Council (hereinafter referred to as a "council"), in accordance with Article 6 of the Act, in which the matters are not significantly affected by the details of a master plan. Article 3 (Establishment and implementation of enforcement plans) In order for the head of the relevant central administrative agency to establish annual enforcement plans (hereinafter referred to as "Enforcement Plans") in accordance with Article 5 (1) of the Act, the Minister of Education, Science and Technology shall devise guidelines for the establishment of enforcement plans for the following year (hereinafter referred to as "Establishment Guideline for Enforcement Plans"), and report these guidelines to the head of the relevant central administrative agency by Dec.31 each year.

Enforcement plans shall include all of the matters prescribed in the following subparagraphs:

1. Outline of plans

2. Planning and performance of previous and relevant year.

3. Detail enforcement plans by project The head of the relevant central administrative agency shall devise enforcement plans for the pertinent field, according to enforcement plan establishment guidelines, and report on the previous year's project planning and performance to the Minister of Education, Science and Technology Agency by Jan. 31 each year.

Article 4 (Formation of a council) The term "public official of Central Administration Organization as prescribed by Presidential Decree" in Article 6 (3) 1 of the Act refers to all persons falling under any of the following subparagraphs:

1. Minister of Foreign Affairs and Trade

2. Vice Minister for Prime Minister's Office The term of office of an appointed committee member shall be two years in accordance with Article 6 (3) 2 of the Act.

Article 5 (Operation of the council) The chairperson of the coun cil shall convene and supervise the council, and exercise overall control of council affairs. If the chairperson wishes to convene a meeting, he/she shall announce the date, location and agenda of the meeting to each of the members five days before the proposed meeting date. Note, however that this requirement will not apply in cases of extenuating circumstances.

A meeting of the council shall be held with attendance of the majority of incumbent members, and with the consent of the majority of attendees. Within the relevant budget, an allowance and travel expenses may be paid for a committee member attending a meeting, and for a person or interested party whom has submitted or stated opinions, Note, however that this shall not apply in cases where a committee member whom is a public officer has participated in a meeting directly pertaining to his/her duty.

Other matters required for the operation of the council shall be determined by the chairperson following council deliberation.

Article 6 (Formation of working committee) A working committee (hereinafter referred to as "working committee") in accordance with Article 6 (5) of the Act, shall comprise a minimum of fifteen members, but no more than twenty-one, including one chairperson.

Working committee members shall fall under each of the following subparagraphs:

1. Any public official belonging to the Senior Civil Service who is in charge of affairs connected with fusion energy in an affiliated Central Administration Organization, whereby a committee member of Article 6 (3) 1 of the Act belongs to, or a public official equivalent to the aforementioned condition is appointed by the chief of the related agency.

2. A person appointed by the chairperson of the working committee, selected from those possessing extensive knowledge and experience in fusion energy research and development.

Article 7 (Operation of working committee) The term of office of an appointed committee member shall be two years in accordance with Article 6 (2) 2. Article 5 shall apply mutatis mutandis in connection with working committee operation. In this case, "council" shall be deemed as "working committee", and "chairperson" as "chairperson of the working committee". Article 8 (Conclusion of research agreement) An agreement (hereinafter referred to as "research agreement"), in accordance with Article 8 (1) shall include any of the matters prescribed in the following subparagraphs:

1. Research proposal

2. Report of research and development results

3. Attribution and utilization of research and development results

4. Royalty collection and reporting in accordance with application of research and development results.

5. Measures in accordance with evaluation of research and development results.

6. Usage and management of research and development expenses and payment method.

7. Modification and rescission of the research agreement

8. Measures regarding violation of the research agreement

9. Other matters concomitant with research development In case of contribution or revenue attained from non -government persons, among expenses necessary for fusion energy research and development project (hereinafter referred to as "research and development projects"), the head of a governing research institute (hereinafter referred to as a " governing research institute"), in accordance with Article 8 (3) of the Act, shall enter into an investment contract or research contract with the contributing persons within 30 days from the date an agreement was concluded with the Minister of Education, Science and Technology. According to the provisions prescribed by the Minister of Education, Science and Technology, the head of a governing research institute may, in part, implement the research jointly, in cooperation, or entrust implementation to an expert in the relevant field, or an institute falling under any of the subparagraphs of Article 7 (1), theTechnology Development Promotion Act. Article 9 (Payment and management of contributions) The contributions prescribed in Article 8 (2) 1 shall be paid by installments. Note, however that the Minister of Education, Science and Technology Agency may make contributions at one time, in consideration of commencement period and scope of the research and development project.

The head of a governing research institute shall install and manage a separate account upon receiving contributions.

Article 10 (The use of contributions, etc. and actual report) The head of a governing research institute shall use the contributions and revenue (hereinafter referred to as "contributions, etc.") of each of the subparagraphs of Article 8 (2) of the Act, as prescribed by research agreement.

The head of a governing research institute shall submit actual usage to the Minister of Education, Science and Technology Agency, such as contributions, etc., including documents of the following subparagraphs within 3 months from the completion date of the said research and development project.

1. Plans for research and development project and a comparative table of execution

2. Internal opinion on accounting audit and inspection of a governing research institute Article 11 (Royalty collection, usage and actual report) In case the head of a governing research institute collects royalties in accordance with Article 8 (4) of the Act, he/she shall report the result to the Minister of Education, Science and Technology within 15 days from the date of royalty collection. The percentage of compensation for researchers participating in research and development projects in accordance with Article 8 (5) of the Act, shall be as follows:

1. In case a governing research institute is a non-profit corporation: 50/100 or more of government contributions among royalties collected.

2. In case a governing research institute is a profit-making corporation: 50/100 or more of the government contributions, excluding the amount paid to the specialized institution among royalties collected.

In payment of compensation in accordance with paragraph 2, the head of the governing research institute shall payout the calculated amount under any of the following subparagraphs, in case the amount equivalent to the share of the government contributions among royalties collected exceeds government contributions.

1. 50 percent of government contributions

2. (Collected royalty × Ratio of share of government contributions ­ Government contributions) × (Under 50 percent, the ratio separately prescribed by the Minister of Education, Science, Technology Agency)

In accordance with Article 8 (5) 2 of the Act, the ratio of royalties to be paid to the specialized institution managing a research and development project falls under the following subparagraphs:

1. In case a governing research institute is a non-profit corporation: More than 20/100 of the share of government contributions among royalties collected.

2. In case a governing research institute is a profit-making corporation: More than 30/100 of the share of government contributions among royalties collected. The head of a governing research institute shall use the share of government contributions, excluding the amount paid or used in accordance with paragraphs (2) through (4), among royalties collected, for the following purposes in accordance with Article8 (5) 3 of the Act:

1. Reinvestment in research and development project

2. Institute operational costs

3. Costs for application and management of industrial property right.

4. Compensation for employees contributing to technology diffusion.

5. Other applications prescribed by the Minister of Education, Science and Technology Agency.

The head of a governing research institute shall report the actual usage of royalties to the Minister of Education, Science and Technology Agency, in accordance with paragraphs (1) through (5), by Mar. 31 of the following year. Article 12 (The selection of a specialized institution for planning and management of research and development project) The term "specialized institution for research and development project prescribed by Presidential Decree" in Article 8 (5) 2 of the Act refers to an institution (hereinafter referred to as "specialized institution") designated by the Minister of Education, Science and Technology Agency, deemed necessary for facilitating professional planning and management in connection with the research and development project.

Matters required for the procedure and implementation of specialized institution selection shall be devised and prescribed by the Minister of Education, Science and Technology Agency.

Article 13 (Joint owner of industrial property right) The term "a person prescribed by Presidential Decree," in proviso of Article 8 (7) of the Act, refers to a person who falls under any of the following subparagraphs:

1. A non-government person, whom contributes partial expenses necessary for research and development projects, in accordance with Article (8) 2 of the Act.

2. Institutions for fusion energy research and development in accordance with Article 9 (1) of the Act.

Article 14 (Manpower fostering plans) Manpower fostering plans pertaining to fusion energy in accordance with Article (10) 1 of the Act, shall include matters as prescribed in the following subparagraphs:

1. Matters pertaining to mid­ and long-term supply and demand prospects necessary for fusion energy research and development.

2. Matters pertaining to the development of human resources necessary for fusion energy research and development.

3. Matters pertaining to cooperation reinforcement of academic, research and industrial circles to foster manpower.

4. Matters pertaining to the development and operation of education and training to foster manpower necessary for fusion energy research and development. Article 15 (Appointment of manpower fostering institute) In accordance with Article 10 (3) of the Act, institutes to be appointed to foster manpower specialized in fusion energy (hereinafter referred to as "fostering institute") shall implement tasks related to fusion energy research and development; these institutes fall under the following subparagraphs:

1. High Education Act Schools of the each of the subparagraphs of Article 2

2. The government-invested research institutions established in accordance withAct on the Establishment, Operation and Fosterage of Government-Invested Research Institutions of Science and Technology.

3. Specific research institutes subject toSupport of Specific Research Institutes Act.

4. Institutions for fusion energy research and development in accordance with Article 9 (1) of the Act.

5. Other institutes and organizations deemed by the Minster of Education, Science and Technology Agency to be necessary for fostering manpower in fusion energy research and development.

Matters necessar y for the procedures and methods of specialized institution selection shall be determined and publicly notified by the Minister of Education, Science and Technology Agency. Article 16 (Fusion energy research and development facilities and expansion measures for equipment) Expansion measures, such as facilities and equipment (hereinafter referred to as "research facilities") necessary for fusion energy research and development in accordance with Article 11 of the Act, shall include the matters prescribed in the following subparagraphs:

1. Matters pertaining to expansion plans of research facilities, etc.

2. Matters pertaining to joint-utilization plans and the operation of research facilities.

3. Matters pertaining to advancement plans of research facilities, etc. The government may support expenses necessary to promote the expansion measures of paragraph (1).

Article 17 (Formation of a committee for fusion energy research) In order to promote cooperative research, as well as information and manpower interchange between research entities of universities, research institutes and industry, the Minister of Education, Science and Technology Agency shall set up a committee for fusion energy research (hereinafter referred to as "research council"), comprising no more than 30 council members, including one chairperson in accordance with Article 12 of the Act.

Committee members shall be private experts of universities, research institutes and industry, possessing vast knowledge and experience in fusion energy research and development; the chairperson is to be selected by the Minister of Education, Science and Technology Agency among committee members. The term of offi ce for an appointed committed member shall be two years in accordance with paragraph 2.

The Minister of Education, Science and Technology Agency may support expenses necessary for the organization and operation of the research committee.

Matters necessary for the organization and operation of research committee shall be determined and publicly notified by the Minister of Education, Science and Technology Agency.

Article 18 (Establishment and implementation of support policy for research and development) In order to activate cooperative research and support fusion energy research and development of universities, research institutes and industry, in accordance with Article 12 of the Act, the Minister of Education, Science and Technology Agency shall devise and promote the measures of the following subparagraphs:

1. Measures relating to academic activities.

2. Measures relating to promotion of joint research and academic activities.

3. Support measures for relevant industries.

4. Other measures deemed necessary by the Minister of Education, Science and Technology Agency to activate cooperative research and support research and development activities.

Article 19 (Establishment and implementation of measures for research and development investment promotion) The Minister of Education, Science and Technology Agency shall devise and promote the measures listed in the following subparagraphs in order to stimulate investment by enterprises and individuals in fusion energy research and development, in accordance with Article 13 of the Act.

1. Tax support measures in connection with investment and financial contribution.

2. Other measures necessary for other investment promotion. Article 20 (Imposition and Collection of Fine for Negligence) If the Education, Science and Technology Agency intends to impose a fine for negligence as prescribed in Article 17 (2) of the Act, he/she shall give the person subject to the deposition of the fine for negligence a notice to pay such a fine by specifying in writing the fact of the violation, the amount of the fine for negligence, after investigating and confirming the offence in question.

If the Minister of Education, Science and Technology Agency imposes a fine for negligence in accordance with paragraph (1), he/she shall grant an opportunity to present oral or written opinion (including electronic messages) to the person who is subject to a deposition for the fixed period of time of ten or more days. In this case, the said person shall be deemed to have no opinion in the absence of statement of opinion within such period.

In determining the amount of a fine for negligence, the Minister of Education, Science and Technology Agency shall take into account the motive and consequence of the offences in question. Fines for negligence shall be levied and collected according to revenu e collection procedures, as prescribed by Management of the National Funds Decree. In such cases, the payment notice shall indicate a method by which to raise objection and its period. ADDENDUM (Ministry of Public Administration and Security, and Institutions Attached thereto)

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

Article 2 through Article 4 omitted

Article 5 (Amendment Other Laws) through <28> omitted. <29> A part of the Enforcement Decree for Fusion Energy Development Promotion Act shall be amended as mentioned hereunder.

The "Minister of Science and Technology Agency" in Article 17 (1), (2), (4) and (5) shall be renamed the "Minister of Education, Science and Technology Agency". <30> through <175> omitted