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ENFORCEMENT DECREE OF THE INDUSTRIAL CLUSTER DEVELOPMENT AND FACTORY ESTABLISHMENT ACT

ENFORCEMENT DECREE OF THE INDUSTRIAL CLUSTER DEVELOPMENT AND FACTORY ESTABLISHMENT ACT


INTRODUCTION

Details of Enactment and Amendment

- Enactment: This Decree was enacted by the Presidential Decree No. 13249, on January 14, 1991, for the purpose of prescribing the matters delegated by the Industrial Placement and Factory Construction Act and those necessary for the enforcement therof.
- Amendment: The title of this Decree was changed to the Enforcement Decree of the Industrial Cluster Development and Factory Establishment Act on June 30, 2003 because the Industrial Placement and Factory Construction Act was changed to the Industrial Cluster Development and Factory Establishment Act on December 30, 2002. The latest amendment was made on May 26, 2005.


Main Contents

- The scope or definitions of factory (Article 2), restricted population zone(Article 3), growth administration zone(Article 4), environmental protection zone(Article 4-2), industrial cluster(Article 4-3), apartment-type factory(Article 4-5), knowledge industry(Article 6 (2)), information and communication industry(Article 6 (3)), resource conservation facility(Article 6 (4)), information network for administering factory establishment(Article 8-2 (1)), standard building area of a factory(Article 14), building area of a factory(Article 18-2 (1) and Article 25 (1)) are prescribed.
- The Minister of Commerce, Industry and Energy shall, if he/she formulates or modifies the basic program for developing industrial clusters, take into account the matters concerning development strategies according to regions and industries and industrial capability according to regions and zones(Article 7 (3)).
- The industrial site center shall conduct the investigation and research for, and give advice on, the establishment of the policy on industrial sites, the development of industrial clusters and the promotion of regional industries and conduct the investigation and research concerning domestic and foreign systems related to industrial sites and clusters(Article 9), and may collect the fees therefor with the prior approval of the Minister of Commerce, Industry and Energy(Article 10), who may supervise the matters concerning the operation and accounting of the industrial site center(Article 11).
- Procedures for Factory Establishment
- An application for the approval of factory establishment accompanied by documents provided by the Ordinance of the Ministry of Commerce, Industry and Energy shall, prior to an application for or a report on permission for the building of a factory, be submitted to the head of a Si/Gun/Gu concerned, who shall issue a certificate of the approval of factory establishment(Article 19).
- A report on the completion of factory establishment shall be submitted to the head of a Si/Gun/Gu concerned or the administrative agency within 2 months after the use of the completed building is approved and the installation of machinery and equipment is completed(Article 20).
- In case of calculating the building area of a factory in a restricted population zone and a growth administration zone within the Seoul metropolitan area, the area of an office or warehouse having any little population invitation effect shall be excluded from such calculation in order to utilize the site for a factory efficiently(Article 25).
- Urban factories shall be classified into low-pollution factories (factories other than those referred to in any item of subparagraph 1 of Article 34) and high-tech industrial factories (meaning high-tech industrial factories, such as manufacture of electronic integrated circuits, which are subject to environmental impact assessment in scale)(Article 34).
- The ratio of supporting facilities which may be located in apartment-type factories shall be 30% or less: Provided, That the ratio of supporting facilities which may be located in apartment-type factories within an industrial complex shall be 20% or less because a supporting facility zone is separately marked out therein(Article 36-4 (3)).




ENFORCEMENT DECREE OF THE INDUSTRIAL CLUSTER DEVELOPMENT AND FACTORY ESTABLISHMENT ACT

Amended by Presidential Decree No. 18847, May 26, 2005



Article 1 (Purpose)
The purpose of this Decree is to prescribe the matters delegated by the Industrial Cluster Development and Factory Establishment Act and those necessary for the enforcement thereof. <Amended by Presidential Decree No. 16532, Aug. 9, 1999; Presidential Decree No. 18039, Jun. 30, 2003; Presidential Decree No. 18847, May 26, 2005>

Article 2 (Scope of Factory)
(1) The scope of manufacturing industry pursuant to the provisions of subparagraph 1 of Article 2 of the Industrial Cluster Development and Factory Establishment Act (hereinafter referred to as the "Act") shall be the manufacturing industry according to the standard industrial classification announced by the Commissioner of the National Statistical Office pursuant to the provisions of Article 17 of the Statistics Act: Provided, That the coal processing business pursuant to the Coal Industry Act shall be deemed the manufacturing industry. <Amended by Presidential Decree No. 15432, Jul. 10, 1997; Presidential Decree No. 16532, Aug. 9, 1999; Presidential Decree No. 18039, Jun. 30, 2003; Presidential Decree No. 18847, May 26, 2005>
(2) Those included in the scope of manufacturing industry pursuant to the provisions of subparagraph 1 of Article 2 of the Act shall be as contained in the following subparagraphs: <Amended by Presidential Decree No. 14822, Dec. 7, 1995; Presidential Decree No. 15123, Jul. 19, 1996; Presidential Decree No. 15432, Jul. 10, 1997; Presidential Decree No. 16532, Aug. 9, 1999; Presidential Decree No. 18039, Jun. 30, 2003>
1.Manufacturing facilities necessary for operating in the manufacturing industry (including facilities for processing, assembling and repair; the same shall apply hereinafter) and pilot manufacturing facilities;
2.Accessory facilities installed within the factory site for management and support of the manufacturing facilities, and for the welfare of employees in operating in the manufacturing industry, which are prescribed by the Ordinance of the Ministry of Commerce, Industry and Energy;
3.Facilities whose installation is compelled by the related Act and subordinate statute in operating in the manufacturing industry; and
4.Factory site where the facilities under subparagraphs 1 through 3 are installed.
[This Article Wholly Amended by Presidential Decree No. 14315, Jul. 4, 1994]

Article 3 (Restricted Population Zone)
The term "areas prescribed by the Presidential Decree" as referred to in subparagraph 2 of Article 2 of the Act refers to the areas of the following subparagraphs: <Amended by Presidential Decree No. 15123, Jul. 19, 1996; Presidential Decree No. 15650, Feb. 20, 1998; Presidential Decree No. 18039, Jun. 30, 2003>
1. Seoul Special Metropolitan City;
2. Incheon Metropolitan City [excluding Ganghwa-gun, Ongjin-gun, and Unnam-dong, Unbuk-dong, Unseo-dong, Jeungsan-dong, Nambuk-dong, Deokgyo-dong, Eulwang-dong, Mueui-dong, Jung-gu, and Daegok-dong, Bulno-dong, Majeon-dong, Geumgok-dong, Oryu-dong, Wanggil-dong, Dangha-dong, Wondang-dong, Seo-gu, and Songdo reclaimed land (referring to the zone whose license for public waters reclamation in front of Songdo was granted to the Mayor of Incheon Metropolitan City on November 12, 1990 for the creation of Songdo New Town; hereinafter the same shall apply) Nam-dong inducement zone, Yeonsu-gu]; and
3. Euijeongbu-si, Guri-si, Namyangju-si (limited to Hopyeong-dong, Pyeongnae-dong, Geumgok-dong, Ilpae-dong, Ipae-dong, Sampae-dong, Gawun-dong, Suseok-dong, Jigeum-dong, Donong-dong), Hanam-si, Goyang-si, Suwon-si, Seongnam-si, Anyang-si, Bucheon-si, Gwangmyeong-si, Gwacheon-si, Euiwang-si, Gunpo-si, Siheung-si (excluding Banweol special zone), Gyeonggi-do.
[This Article Wholly Amended by Presidential Decree No. 14315, Jul. 4, 1994]

Article 4 (Growth Administration Zone)
The term "areas prescribed by the Presidential Decree" as referred to in subparagraph 3 of Article 2 of the Act refers to the areas of the following subparagraphs: <Amended by Presidential Decree No. 14822, Dec. 7, 1995; Presidential Decree No. 15123, Jul. 19, 1996; Presidential Decree No. 15650, Feb. 20, 1998; Presidential Decree No. 16532, Aug. 9, 1999; Presidential Decree No. 18039, Jun. 30, 2003>
1. Namyangju-si (limited to Wabu-eup, Jinjeob-eup, Byeolnae-myeon, Toigyewon-myeon, Jingeon-myeon, Onam-myeon), Dongducheon-si, Ansan-si, Osan-si, Gimpo-si, Paju-si, Pyeongtaek-si, Yeoncheon-gun, Pocheon-gun, Yangju-gun, Hwaseong-si, Yongin-si (limited to Giheung-eup, Guseong-eup, Suji-eup, Namsa-myeon, Idong-myeon, and Moksin-ri, Jukreung-ri, Hakil-ri, Dokseong-ri, Wonsam-myeon), Anseong-si (limited to Gasa-dong, Gahyeon-dong, Myeongryun-dong, Sungin-dong, Bongnam-dong, Gupo-dong, Dongbon-dong, Yeong-dong, Bongsan-dong, Seongnam-dong, Changjeon-dong, Nakwon-dong, Okcheon-dong, Hyeonsu-dong, Balhwa-dong, Oksan-dong, Seokjeong-dong, Seoin-dong, Inji-dong, Ayang-dong, Sinheung-dong, Dogi-dong, Gye-dong, Jungri-dong, Sagok-dong, Geumseok-dong, Dangwang-dong, Sinmosan-dong, Sinsohyeon-dong, Singeonji-dong, Geumsan-dong, Yeonji-dong, Daecheon-dong, Daedeok-myeon, Miyang-myeon, Gongdo-myeon, Wongok-myeon, Bogae-myeon, Geumgwang-myeon, Seowun-myeon, Yangseong-myeon, Gosam-myeon, and Dugyo-ri, Dangmok-ri, Chiljang-ri, Juksan-myeon, and Majeon-ri, Mijang-ri, Jinchon-ri, Gisol-ri, Samjuk-myeon);
2. Ganghwa-gun, Ongjin-gun, Unnam-dong, Unbuk-dong, Unseo-dong, Jeungsan-dong, Nambuk-dong, Deokgyo-dong, Eulwang-dong, Mueui-dong, Jung-gu, and Daegok-dong, Bulno-dong, Majeon-dong, Geumgok-dong, Oryu-dong, Wanggil-dong, Dangha-dong, Wondang-dong, Seo-gu and Songdo reclaimed land and Nam-dong inducement zone, Yeonsu-gu in Incheon Metropolitan City;
3. Banweol special zone in Siheung-si, Gyeonggi-do; and
4. Deleted. <by Presidential Decree No. 15123, Jul. 19, 1996>
[This Article Wholly Amended by Presidential Decree No. 14315, Jul. 4, 1994]

Article 4-2 (Environmental Protection Zone)
The term "areas prescribed by the Presidential Decree" as referred to in subparagraph 4 of Article 2 of the Act refers to the areas of the following subparagraphs: <Amended by Presidential Decree No. 15123, Jul. 19, 1996; Presidential Decree No. 16532, Aug. 9, 1999; Presidential Decree No. 18039, Jun. 30, 2003>
Gapyeong-gun, Yangpyeong-gun, Yeoju-gun, Icheon-si, Gwangju-si, Namyangju-si (limited to Hwado-eup, Sudong-myeon, Joan-myeon), Yongin-si (Jungang-dong, Yeoksam-dong, Yurim-dong, Dongbu-dong, Pogok-myeon, Mohyeon-myeon, Baekam-myeon, Yangji-myeon, and Gajaeweol-ri, Saam-ri, Mipyeong-ri, Jwahang-ri, Maeng-ri, Duchang-ri, Godang-ri, Munchon-ri, Weonsam-myeon), Anseong-si (limited to Iljuk-myeon and Juksan-ri, Yongseol-ri, Jangye-ri, Maesan-ri, Jangreung-ri, Jangweon-ri, Duhyeon-ri, Juksan-myeon, and Yongweol-ri, Deoksan-ri, Yulgok-ri, Naejeong-ri, Baetae-ri, Naegang-ri, Samjuk-myeon).
[This Article Newly Inserted by Presidential Decree No. 14315, Jul. 4, 1994]

Article 4-3 (System of Forming Industrial Cluster)
The term "industrial cluster forming an aggregate that generates synergistic effects through mutual links among companies, research institutes, universities and corporate-support facilities which are all concentrated in a certain zone" as referred to in subparagraph 5-2 of Article 2 of the Act refers to an aggregate that generates synergistic effects through mutual links by concentrating systems of the following subparagraphs in a certain zone:
1.Industrial production system composed of large enterprises and small- and medium-sized enterprises which are responsible for production functions;
2. Industrial technological system composed of universities and research institutes which are responsible for research and development functions; and
3. Corporate-support system composed of organizations responsible for support function such as marketing, finance, insurance, consulting, etc.
[This Article Newly Inserted by Presidential Decree No. 18039, Jun. 30, 2003]


Article 4-4 (Knowledge-Based Industry)
The term "industry prescribed by the Presidential Decree" as referred to in subparagraph 5-4 of Article 2 of the Act refers to the industries of the following subparagraphs: <Amended by Presidential Decree No. 18847, May 26, 2005>
1.Knowledge industry pursuant to the provisions of Article 6 (2); and
2.Industry utilizing high technology pursuant to the provisions of Article 5 of the Industrial Development Act.
[This Article Newly Inserted by Presidential Decree No. 18039, Jun. 30, 2003]

Article 4-5 (Apartment-Type Factory)
The term "those which are prescribed by the Presidential Decree" as referred to in subparagraph 6 of Article 2 of the Act refers to a collective building which is a three stories or higher that can house six or more factories.
[This Article Newly Inserted by Presidential Decree No. 15432, Jul. 10, 1997]


Article 5 (Management Business of Industrial Complex)
(1) The term "affairs which are prescribed by the Presidential Decree" as referred to in the main sentence of subparagraph 8 of Article 2 of the Act refers to the businesses of the following subparagraphs: <Amended by Presidential Decree No. 18039, Jun. 30, 2003>
1.Business of formulating and executing a basic program for the management of an industrial complex (hereinafter referred to as a "basic management program") pursuant to the provisions of Article 33 (1) of the Act;
2.Business of formulating a plan regarding public facilities, supporting facilities and joint facilities, and the installation and operation thereof;
3.Business of sale and lease of industrial sites, ex post facto management and occupancy of industrial site;
4.Business of installing factories, apartment type factories and other facilities for occupant enterprises and supporting agencies, and the sale and lease thereof;
5.Business of supply of water, electricity, steam, gas, and oil to occupant enterprises and supporting agencies;
6.Business of collecting expenses from users for the installation, maintenance, repair, or improvement of industrial sites and facilities;
7.Business of upgrading the structure of industrial complexes;
8.Business of supporting fund, technology, manpower, market, etc. to occupant enterprises;
9.Business of making environmentally-friendly industrial complexes and preventing environmental pollution;
10.Business of guarding facilities in the industrial complex and preventing industrial disasters; and
11.Other businesses necessary for the operation of industrial complexes and support to production activities by occupant enterprises.
(2) The term "infrastructure facilities which are prescribed by the Presidential Decree" as referred to in subparagraph 8 (b) of Article 2 of the Act refers to the facilities of the following subparagraphs: Provided, That the facilities which are owned by occupant enterprises or supporting agencies, or whose administrator is designated by other Act and subordinate statute, are excluded:
1.Road, environmental pollution prevention facilities, water supply facilities, information communication facilities, energy supply facilities and other public facilities; and
2.Facilities other than the ones prescribed by subparagraph 1 and jointly used by occupant enterprises and supporting agencies.
[This Article Wholly Amended by Presidential Decree No. 16532, Aug. 9, 1999]

Article 6 (Qualifications for Occupancy in Industrial Complex)
(1) The term "qualifications which are prescribed by the Presidential Decree" as referred to in subparagraphs 11 and 12 of Article 2 of the Act refers to the qualifications of the following subparagraphs: <Amended by Presidential Decree No. 14315, Jul. 4, 1994; Presidential Decree No. 15123, Jul. 19, 1996; Presidential Decree No. 16532, Aug. 9, 1999>
1.The business shall be the object industry of occupancy according to the basic management program of the relevant industrial complex, and necessary for providing facilities or assistance to the business of the occupant enterprise;
2.Deleted; and <by Presidential Decree No. 15432, Jul. 9, 1997>
3.It shall have received, or be able to receive, authorization, permission, etc. pursuant to the relevant Act and subordinate statute for the execution of the business concerned.
(2) The term "knowledge industry" as referred to in subparagraph 11 of Article 2 of the Act means the industry that generates high value-added knowledge service by means of creative intellectual activities such as natural science research and development business, engineering service business, advertising business, movie and video production business, audio record media publishing business, specialized design business, etc. <Newly Inserted by Presidential Decree No. 15123, Jul. 19, 1996; Presidential Decree No. 18039, Jun. 30, 2003>
(3) The term "information and communication industry" as referred to in subparagraph 11 of Article 2 of the Act means the industry that collects, processes, stores, searches, transmits, receives, and utilizes information such as the design of computer systems and consultation business thereof, software consultation, development and supply business, data processing business, database and online information supply business, other computer related business, electrical communication business, etc., and the industry for the promotion of equipment, technology, service and informatization related to the above. <Newly Inserted by Presidential Decree No. 15123, Jul. 19, 1996; Presidential Decree No. 16832, Aug. 9, 1999; Presidential Decree No. 18039, Jun. 30, 2003>
(4) The term "resource conservation industry" as referred to in subparagraph 11 of Article 2 of the Act means facilities for conservation of energy resources such as coal, oil, atomic energy, natural gas, etc. <Amended by Presidential Decree No. 15432, Jul. 10, 1997; Presidential Decree No. 16532, Aug. 9, 1999>
(5) The term "other businesses as prescribed by the Presidential Decree" as referred to in subparagraph 11 of Article 2 of the Act means the industries of the following subparagraphs: <Newly Inserted by Presidential Decree No. 15432, Jul. 10, 1997; Presidential Decree No. 16532, Aug. 9, 1999>
1.Wastewater treatment business, waste collection and treatment business;
2. Storage and warehousing business, cargo terminals, and other businesses that install and operate distribution facilities;
3. Transportation business (excluding passenger transportation business);
4. Industrial machinery and equipment leasing business;
5. Real estate rental and supply business;
6. Industries such as agriculture, fisheries, etc. which the Mayor or the head of Gun or Gu (referring to the head of autonomous Gu; hereinafter the same shall apply) let occupy the agro-industrial complex according to the basic management program for agro-industrial complex for the promotion of specialized industry (hereinafter referred to as the regional specialized industry );
7. Electricity business; and
8. Industry that is designated as object business type of inducement to the concerned industrial complex for the purpose of creation of the industrial complex according to the basic management program, promotion of regional economy, etc.
(6) The term "other businesses prescribed by the Presidential Decree" as referred to in subparagraph 12 of Article 2 of the Act means the business of the following subparagraphs: <Amended by Presidential Decree No. 13870, Mar. 6, 1993; Presidential Decree No. 14315, Jul. 4, 1994; Presidential Decree No. 14822, Dec. 7, 1995; Presidential Decree No. 15432, Jul. 10, 1997; Presidential Decree No. 16532, Aug. 9, 1999; Presidential Decree No. 18039, Jun. 30, 2003>
1.Customs clearance business, service business, sales business and repair business;
2.Water supply business, electricity supply business, steam supply business, gas supply business and oil supply business;
3.Business for research, development, and technical assistance;
4.Warehousing business, transportation business and stevedoring business;
4-2. Businesses for assistance to occupant enterprises such as consulting, marketing, etc.; and
5. Other businesses acknowledged and designated by the Minister of Commerce, Industry and Energy.
(7) The administrative agency may grant qualifications to occupy the industrial complex concerned after obtaining approval from the authorized administrator when it acknowledges it necessary in consideration of the purpose of creation of the industrial complex, the promotion of the regional economy or national economy. <Newly Inserted by Presidential Decree No. 14315, Jul. 4, 1994; Presidential Decree No. 15123, Jul. 19, 1996; Presidential Decree No. 16532, Aug. 9, 1999>

Article 7 (Basic Program, etc. for Developing Industrial Cluster)
(1) The basic program for developing industrial clusters (hereinafter referred to as the "basic program for developing industrial clusters") pursuant to the provisions of Article 3 (1) of the Act shall be announced in the Official Gazette.
(2) The term "industries with high growth potential" as referred to in Article 3 (2) 1 of the Act refers to the industries of the following subparagraphs:
1.Knowledge-based industry pursuant to the provisions of subparagraph 5-4 of Article 2 of the Act; and
2.Industries which are suitable for site condition by region can lead regional development, and determined and announced such as automobile industry, shipbuilding industry, etc. by the Minister of Commerce, Industry and Energy.
(3) Where the Minister of Commerce, Industry and Energy intends to formulate or modify the basic program for developing industrial clusters pursuant to the provisions of the main sentence of Article 3 (3) of the Act, he shall take into account the following matters:
1. Matters pursuant to the provisions of Article 3 (2) 1 through 4 of the Act;
2. Matters regarding vision and strategy of industrial development by region;
3. Matters regarding industrial capability by region and by area; and
4. Matters regarding the present situation and points at issue of industrial clusters by region.
(4) The term "insignificant matter prescribed by the Presidential Decree" as referred to in the proviso of Article 3 (3) of the Act means the matters of the following subparagraphs:
1.Matters of change following change in administrative district; and
2.Matters of change regarding industrial clusters by year and by business type.
(5) Where the Minister of Commerce, Industry and Energy deems it necessary for drawing up and change of the basic program for developing industrial clusters, he may ask for assistance from the head of the relevant central administrative agencies, the Mayor of the Special Metropolitan City or any other Metropolitan City, or a Do governor (hereinafter referred to as the "Mayor/Do governor").
[This Article Wholly Amended by Presidential Decree No. 18039, Jun. 30, 2003]

Article 7-2 (Designation, etc. of Industrial Cluster Planning Organization)
(1) In order to allow execution of the duties of the following subparagraphs to formulate programs for developing regional industries pursuant to the provisions of Article 3-2 (1) of the Act (hereinafter referred to as a "program for developing regional industries"), where the Mayor/Do governor thinks it necessary, he may designate a legal person, etc. established to develop regional industries as an industrial cluster planning organization, or may establish one. In this case, he shall consult with the Minister of Commerce, Industry and Energy in advance:
1.Collection of information and presentation of strategies for the formulation of programs for developing regional industries;
2. Development of specific programs for assistance to enterprises for the program for developing regional industries;
3. Development of cooperation projects between regions and enterprises;
4. Arrangement of plans for building cooperation systems between industry, universities and research institutes;
5. Matters regarding inducement of investment by domestic and foreign enterprises; and
6. Other matters related to formulation of programs for developing regional industries.
(2) The head of the relevant central administrative agency or the Mayor/Do governor may give assistance necessary for the establishment or operation of industrial cluster planning organizations pursuant to the provisions of paragraph (1).
[This Article Newly Inserted by Presidential Decree No. 18039, Jun. 30, 2003]


Article 7-3 (Presentation, etc. of Program for Developing Regional Industries)
(1) Where the Mayor/Do governor intends to receive assistance pursuant to the provisions of Article 3-2 (2) of the Act, he shall present the program for developing regional industries to the Minister of Commerce, Industry and Energy.
(2) When the program for developing regional industries is presented under paragraph (1), the Minister of Commerce, Industry and Energy shall evaluate the feasibility on the matters of the following subparagraphs, and may give assistance according to the results thereof. In this case, he shall consult with the head of the relevant central administrative agency:
1. The present situation of the industries of the region;
2. The industrial development capability of the region;
3. The industrial development vision of the region;
4. The detailed execution plans for the development of regional industries;
5. Plans for raising financial resources; and
6. Other matters necessary for the development of regional industries.
(3) The Minister of Commerce, Industry and Energy may grade the assistance to business by reflecting evaluation results gained by executing evaluation of the business assisted for the development of regional industries pursuant to the provisions of Article 3-2 (2) of the Act each year from the next business year since the business started.
(4) Where the Minister of Commerce, Industry and Energy deems it necessary for the development of regional industry, or there is a request by the Mayor/Do governor, he may request the head of the relevant central administrative agency to set up necessary measures.
[This Article Newly Inserted by Presidential Decree No. 18039, Jun. 30, 2003]


Article 7-4 (Function of Industrial Cluster Policy Council)
The Industrial Cluster Policy Council pursuant to the provisions of Article 5 (1) of the Act (hereinafter referred to as the "Council") shall deliberate on the matters of the following subparagraphs:
1.Matters regarding drawing up and change of basic programs for developing industrial clusters;
2. Matters regarding the plan for designation of inducement zones pursuant to the provisions of Article 23 (2) of the Act;
3. Matters regarding drawing up and change of administrative guidelines for industrial complexes pursuant to the provisions of Article 32 (1) of the Act;
4. Matters regarding drawing up and change of programs for enhancing the structure of industrial complexes pursuant to the provisions of Article 45-2 (1) of the Act; and
5. Other matters regarding the development of industrial clusters and management of industrial complexes that the Chairman of the Council submit for discussion.
[This Article Wholly Amended by Presidential Decree No. 18039, Jun. 30, 2003]


Article 7-5 (Composition of Council)
(1) The Council shall consist of 25 members or less including one Chairman and one vice Chairman. <Amended by Presidential Decree No. 16532, Aug. 9, 1999; Presidential Decree No. 18039, Jun. 30, 2003>
(2) The Vice Minister of Commerce, Industry and Energy shall be the Chairman, and the Assistant Minister of Commerce, Industry and Energy shall be the Vice Chairman. <Amended by Presidential Decree No. 16532, Aug. 9, 1999>
(3) Members shall consist of the persons appointed by the heads of the agencies, one by each agency from among Grade or officials of the Ministry of Finance and Economy, the Ministry of Government Administration and Home Affairs, the Ministry of Science and Technology, the Ministry of Culture and Tourism, the Ministry of Agriculture and Forestry, the Ministry of Commerce, Industry and Energy, the Ministry of Information and Communication, the Ministry of Health and Welfare, the Ministry of Environment, the Ministry of Labor, the Ministry of Construction and Transportation, the Ministry of Maritime Affairs and Fisheries, the Ministry of Planning and Budget and the Small and Medium Business Administration, and those commissioned by the Chairman from among the persons who have abundant knowledge and experience in the field related to the industrial cluster policy. <Amended by Presidential Decree No. 15432, Jul. 10, 1997; Presidential Decree No. 16532, Aug. 9, 1999; Presidential Decree No. 18039, Jun. 30, 2003>
(4) The term of office of the members, other than for government officials, shall be 2 years. <Newly Inserted by Presidential Decree No. 18039, Jun. 30, 2003>
(5) There shall be an executive secretary to manage the business of the Council, who shall be appointed by the Chairman from among the officials of the Ministry of Commerce, Industry and Energy. <Amended by Presidential Decree No. 16532, Aug. 9, 1999>
[This Article Newly Inserted by Presidential Decree No. 15123, Jul. 19, 1996]


Article 7-6 (Duties of Chairman and Vice Chairman)
(1) The Chairman shall represent the Council, and preside over the business of the Council.
(2) The Vice Chairman shall help the Chairman and stand proxy for the Chairman where the Chairman fails to carry out his duty due to unavoidable reasons, and when both Chairman and Vice Chairman fail to carry out their duties due to unavoidable causes, the member in the order prescribed in Article 7-5 (3) shall stand proxy for the Chairman. <Amended by Presidential Decree No. 18039, Jun. 30, 2003>
[This Article Newly Inserted by Presidential Decree No. 15123, Jul. 19, 1996]


Article 7-7 (Meetings, etc.)
(1) The Chairman shall call meetings of Council and chair the meetings.
(2) When the Chairman intends to call a meeting of the Council, he shall notify every member of the date and time, venue, and agenda at least 3 days prior to the meeting: Provided, That this shall not apply in case of emergency or unavoidable causes.
(3) The meetings of the Council shall convene with the presence of a majority of the members on the register, and decisions shall be made by a majority of the members present.
(4) When deemed necessary, the Council may permit public officials or other persons related to the agenda to attend the meeting and may hear their opinions.
[This Article Newly Inserted by Presidential Decree No. 15123, Jul. 19, 1996]


Article 7-8 (Detailed Rules for Operation)
Other matters necessary for the operation of the Council besides those prescribed by this Decree shall be laid down by the Chairman through the resolution of the Council.
[This Article Newly Inserted by Presidential Decree No. 15123, Jul. 19, 1996]


Article 8 (Consultation, etc. with Specialized Organization)
(1) For important matters regarding policy on industrial clusters and industrial sites, or when the Minister of Commerce, Industry and Energy acknowledges it necessary for survey of the site, he may request for consultation or investigation and research by a specialized organization. <Amended by Presidential Decree No. 13870, Mar. 6, 1993; Presidential Decree No. 14822, Dec. 7, 1995; Presidential Decree No. 16532, Aug. 9, 1999; Presidential Decree No. 18039, Jun. 30, 2003>
(2) The Minister of Commerce, Industry and Energy may pay part of the expense to the specialized organization within the extent of its budget in case of paragraph (1), and when there is an administrative agency who needs consultation, investigation or research on the policy on industrial cluster and industrial site, he may consult with the head of the agency and have him share the expense. <Amended by Presidential Decree No. 13870, Mar. 6, 1993; Presidential Decree No. 14822, Dec. 7, 1995; Presidential Decree No. 16532, Aug. 9, 1999; Presidential Decree No. 18039, Jun. 30, 2003>


Article 8-2 (Operation, etc. of Information Network for Administering Factory Establishment)
(1) The term "information network for administering factory establishment" as referred to in Article 6-2 (1) of the Act means the system which stores data on construction, expansion of factories or change of business type pursuant to the provisons of Article 13 (1) of the Act (hereinafter referred to as the "factory establishment, etc") in a database for joint utilization.
(2) When the head of Si/Gun/Gu or head of the administrative agency pursuant to the provisions of Article 30 (2) of the Act (hereinafter referred to as the "administrative agency") has approved the matters, etc. which the Minister of Commerce, Industry and Energy has laid down and announced, he shall, without delay, input and manage the data on approval, etc. in the information network for administering the factory establishment pursuant to the provisions of paragraph (1).
[This Article Newly Inserted by Presidential Decree No. 18039, Jun. 30, 2003]

Article 8-3 (Designation of Information Network Businessman)
(1) The term "agency or association prescribed by the Presidential Decree" as referred to in the provisions of Article 6-2 (3) of the Act means the agency or association falling under any of the following subparagraphs: <Amended by Presidential Decree No. 15432, Jul. 10, 1997; Presidential Decree No. 16093, Jan. 29, 1999; Presidential Decree No. 16532, Aug. 9, 1999; Presidential Decree No. 17175, Mar. 27, 2001; Presidential Decree No. 18594, Dec. 3, 2004; Presidential Decree No. 18847, May 26, 2005>
1. Korea Chamber of Commerce and Industry pursuant to the Chamber of Commerce and Industry Act;
2. Korean Industrial Complex Corporation pursuant to the provisions of Article 45-3 of the Act;
3. Korea Institute of Science and Technology Information established pursuant to the provisions of Article 8 of the Act on the Establishment, Operation and Fosterage of Government-Invested Research Institutions of Science and Technology;
4. Korea Land Corporation pursuant to the Korea Land Corporation Act; and
5. Other agencies or associations that the Minister of Commerce, Industry and Energy and the Minister of Construction and Transportation consult and acknowledge.
(2) Where the Minister of Commerce, Industry and Energy intends to entrust the operation of the information network pursuant to the provisions of Article 6-2 (3) of the Act, he shall consult with the Minister of Construction and Transportation in advance. In this case, it can be entrusted jointly to two or more agencies or associations when deemed necessary. <Amended by Presidential Decree No. 16532, Aug. 9, 1999>
(3) A person who has been entrusted with the business of operation of the information network pursuant to the provisions of paragraph (2) (hereinafter referred to as an "Entrusted Person") may have the user of the information network bear the expenses.
[This Article Newly Inserted by Presidential Decree No. 15123, Jul. 19, 1996]


Article 8-4 (Composition and Operation of Information Network)
(1) An Entrusted Person shall carry out the business in the following subparagraphs: <Amended by Presidential Decree No. 16532, Aug. 9, 1999>
1. Basic surveys, design and composition of the information network;
2. The construction, distribution and operation of the database;
3. The installation and security management of computer equipment such as computers, communication facilities, etc.;
4. Research on demand for the information network and research on all kinds of data;
5. The collection and management of information; and
6. Other business that the Minister of Commerce, Industry and Energy acknowledges as necessary and requests.
(2) Each year, the Entrusted Person shall compose the plan and a report on the results of promotion that include the matters of the following subparagraphs of paragraph (1) as laid down by the Minister of Commerce, Industry and Energy, and submit them to the Minister of Commerce, Industry and Energy. <Amended by Presidential Decree No. 16532, Aug. 9, 1999>
(3) When the Entrusted Person has changed the business plan submitted pursuant to the provisions of paragraph (2), he shall submit the changed plan to the Minister of Commerce, Industry and Energy. <Amended by Presidential Decree No. 16532, Aug. 9, 1999>
(4) The Minister of Commerce, Industry and Energy may support funding, equipment or technology within the extent of the budget, or provide administrative assistance so that the Entrusted Person may smoothly execute the business of constructing the information network. <Amended by Presidential Decree No. 16532, Aug. 9, 1999>
(5) The Minister of Commerce, Industry and Energy may write guidelines on the matters necessary for the operation of the information network: Provided, That he organizes and operates the information network jointly with the head of the relevant administrative agency, he shall write them after consulting with the head of the relevant administrative agency in advance. <Amended by Presidential Decree No. 16532, Aug. 9, 1999>
[This Article Newly Inserted by Presidential Decree No. 15123, Jul. 19, 1996]


Article 9 (Business of Industrial Site Center)
The industrial site center pursuant to the provisions of Article 7 (1) of the Act (hereinafter referred to as the "industrial site center") shall conduct the business falling under any of the following subparagraphs:
1. Investigation, research and consultation for formulating the policy on industrial sites;
2. Investigation, research and consultation for development of industrial clusters;
3. Investigation, research and consultation for development of regional industries;
4. Investigation and research on domestic and foreign systems for industrial clusters and industrial sites; and
5. Any other business necessary for industrial clusters and industrial sites.
[This Article Wholly Amended by Presidential Decree No. 18039, Jun. 30, 2003]

Article 9-2 (Standards, etc. for Designation of Industrial Site Center)
(1) The standards for designation of a juristic person and an organization (hereafter referred to as the "industrial site-related organization" in this Article) that are eligible to establish industrial site centers pursuant to the provisions of Article 7 of the Act are as set out in the following subparagraphs: <Amended by Presidential Decree No. 18039, Jun. 30, 2003>
1.It shall be a legal person or organization whose aim of establishment is executing the business related to industrial clusters or industrial sites; and
2. It shall have a system to fulfill the business related to industrial clusters and industrial sites.
(2) Where the industrial site-related organization, which has been designated pursuant to the provisions of paragraph (1), intends to establish an industrial site center, it shall submit a plan of establishment and operation thereof to the Minister of Commerce, Industry and Energy. <Amended by Presidential Decree No. 18039, Jun. 30, 2003>
(3) Deleted. <by Presidential Decree No. 18039, Jun. 30, 2003>
[This Article Newly Inserted by Presidential Decree No. 16532, Aug. 9, 1999]

Article 10 (Fees, etc. of Industrial Site Center)
(1) To raise expenses necessary for the business pursuant to the provisions of Article 9, an industrial site center may collect fees within the extent of actual expenses from persons who have been provided with the information on industrial sites, etc. or who have asked for consultation, mediation, etc. <Amended by Presidential Decree No. 18039, Jun. 30, 2003>
(2) Where an industrial site center intends to collect fees pursuant to the provisions of paragraph (1), it shall obtain prior approval from the Minister of Commerce, Industry and Energy. The same shall apply when change of approved matters is intended. <Amended by Presidential Decree No. 18039, Jun. 30, 2003>
[This Article Wholly Amended by Presidential Decree No. 16532, Aug. 9, 1999]

Article 11 (Supervision of Industrial Site Center)
(1) The Minister of Commerce, Industry and Energy may have the industrial site center report its operation, accounting and other necessary matters. <Amended by Presidential Decree No. 18039, Jun. 30, 2003>
(2) When the Minister of Commerce, Industry and Energy recognizes that the business or accounting of the industrial site center violate the relevant Act and subordinate statutes, he may inspect the business and accounting of the industrial site center. <Amended by Presidential Decree No. 18039, Jun. 30, 2003>
(3) When the Minister of Commerce, Industry and Energy recognizes that the business or accounting of the industrial site center are markedly unreasonable, he may direct it to take necessary measures such as rectification of business, etc. within a period of time that he designates. <Amended by Presidential Decree No. 18039, Jun. 30, 2003>
[This Article Wholly Amended by Presidential Decree No. 16532, Aug. 9, 1999]

Article 11-2 (Composition, Operation, etc. of Center for Supporting Factory Establishment)
(1) The center for supporting factory establishment pursuant to the provisions of Article 7-2 (1) of the Act (hereinafter referred to as the "center for supporting factory establishment") shall consist of persons with substantial knowledge and experience regarding the management and operation of factory information, factory establishment, etc. from among the officers and employees of the Korean Industrial Complex Corporation pursuant to the provisions of Article 45-3 of the Act (hereinafter referred to as the "Corporation").
(2) The head of the center for supporting factory establishment shall analyze the results of support of factory establishment for each half year and report to the Minister of Commerce, Industry and Energy within one month after the end of every half year.
(3) The Minister of Commerce, Industry and Energy may support necessary funds, facilities and technology within the extent of the budget, or provide administrative assistance so that the center for supporting factory establishment may smoothly execute its business.
(4) The provisions of Articles 10 and 11 shall apply mutatis mutandis to the center for supporting factory establishment.
[This Article Newly Inserted by Presidential Decree No. 18039, Jun. 30, 2003]

Article 11-3 (Composition, Operation, etc. of Ombudsman Office for Factory Establishment)
(1) The ombudsman's office for factory establishment pursuant to the provisions of Article 7-3 (1) of the Act (hereafter referred to as the "Office" in this Article) shall consist of civilian specialists with substantial knowledge and experience in the Acts and subordinate statutes, and practical business in the establishment and operation of factories, and officers and employees of the Corporation as the central force.
(2) The head of the Office shall be appointed by the Minister of Commerce, Industry and Energy from among persons with abundant knowledge and experience in business relating to factory establishment.
(3) The head of the Office shall report the present status and business result to the Minister of Commerce, Industry and Energy within one month after the end of each half year.
(4) The provisions of Article 11-2 (3) shall apply mutatis mutandis to the Office.
[This Article Newly Inserted by Presidential Decree No. 18039, Jun. 30, 2003]

Article 12 (Content, etc. of Announcement of Standards for Factory Site)
(1) The term "Acts and subordinate statutes prescribed by the Presidential Decree" as referred to in subparagraph 1 of Article 8 of the Act means the Acts and subordinate statutes of the following subparagraphs: <Newly Inserted by Presidential Decree No. 15432, Jul. 10, 1997; Presidential Decree No. 16532, Aug. 9, 1999; Presidential Decree No. 17816, Dec 26, 2002; Presidential Decree No. 18457, Jun. 29, 2004; Presidential Decree No. 18847, May 26, 2005>
1. The National Land Planning and Utilization Act;
2. Deleted; <by Presidential Decree No. 17816, Dec 26, 2002>
3. The Building Act;
4. The Industrial Sites and Development Act;
5. The Housing Site Development Promotion Act;
6. The Farmland Act;
7. The Forestry Act;
8. The Grassland Act;
9. The Dairy Promotion Act;
10. The Clean Air Conservation Act;
11. The Water Quality Conservation Act;
12. The Water Supply and Waterworks Installation Act;
13. The Natural Parks Act;
14. The Protection of Cultural Properties Act;
15. The Electric Source Development Promotion Act; and
16. Other Acts and subordinate statutes on the utilization of land and environment relating to factory establishment.
(2) The area of factory site pursuant to the provisions of subparagraph 2 of Article 8 of the Act shall be the horizontally projected area of the site on which the factory is built. <Amended by Presidential Decree No. 14315, Jul. 4, 1994; Presidential Decree No. 16532, Aug. 9, 1999>
(3) The term "area of factory structures, etc. as prescribed by the Presidential Decree" as referred to in subparagraph 2 of Article 8 of the Act means the total area of the following subparagraphs: <Amended by Presidential Decree No. 16532, Aug. 9, 1999>
1. The floor area of all floors of structures in the factory site; and
2. The horizontally projected area of the machinery, equipment and other structures that are installed outside the building, but within the factory site (hereinafter referred to as the "outdoor structure").
(4) The standards for factory sites pursuant to the provisions of Article 8 of the Act shall be announced in the Official Gazette. <Newly Inserted by Presidential Decree No. 18039, Jun. 30, 2003>

Article 12-2 Deleted.
<by Presidential Decree No. 18039, Jun. 30, 2003

Article 13 Deleted.
<by Presidential Decree No. 15432, Jul. 10, 1997

Article 14 (Calculation, etc. of Standard Factory Construction Area)
(1) The standard factory construction area pursuant to the provisions of Article 11 (1) of the Act shall be calculated according to the following formula.
standard factory construction area ? standard factory area ?? ratio of standard factory area
(2) The term "period prescribed by the Presidential Decree" as referred to in Article 11 (3) of the Act means four years: Provided, That the head of Si/Gun/Gu or administrative agency may extend the period where he recognizes it inevitable to construct a factory beyond the period in consideration of the economic conditions of the region, scale of factory, etc.
[This Article Wholly Amended by Presidential Decree No. 16532, Aug. 9, 1999]

Article 15 (Exception to Application of Standard Factory Construction Area)
The term "sites prescribed by the Presidential Decree" as referred to in the proviso of Article 11 (1) of the Act means the site falling under any of the following subparagraphs: <Amended by Presidential Decree No. 16891, Jul. 1, 2000; Presidential Decree No. 17816, Dec. 26, 2002; Presidential Decree No. 18847, May 26, 2005>
1. A site falling under the green area pursuant to the provisions of Article 36 (1) 1 (d) of the National Land Planning and Utilization Act;
2. A site where an airstrip, railroad or road 6 meters or wider is in the factory;
3. A site where the roadside zone was established, thus making factory construction difficult;
4. A site which is used for a large scale reservoir or settling pond arising from the characteristics of a manufacturing process;
5. A site which is located in the green belt zone pursuant to the provisions of Article 33 (5) of the Act;
6. Deleted; <by Presidential Decree No. 17052, Dec. 29, 2000>
7. A site that slopes with a gradient of 30 degrees or more, thus the head of Si/Gun/Gu or administrative agency recognizes it as difficult to a construct factory on it;
8. A site, other than a site falling under subparagraphs 1 through 7, and the head of Si/Gun/Gu, or administrative agency acknowledges that construction in conformity with the standard factory construction area brings about substantial trouble to the factory operation; and
9. A site where the lessee of the factory site is constructing a factory.
[This Article Wholly Amended by Presidential Decree No. 16532, Aug. 9, 1999]

Article 16 through 18 Deleted.
<by Presidential Decree No. 16532, Aug. 9, 1999







Article 18-2 (Factory Establishment, etc.)
(1) The term "factory construction area" as referred to in Article 13 (1) of the Act means the total of the floor area of every floor of the structure for installation of machinery or equipment used as a manufacturing facility, and the horizontally projected area of outdoor structures used as a manufacturing facility. <Amended by Presidential Decree No. 16532, Aug. 9, 1999
(2) and (3) Deleted. <by Presidential Decree No. 16532, Aug. 9, 1999

(4) The term "change of business type" as referred to in Article 13 (1) of the Act means the business type of a factory which has been given approval for factory establishment, etc. pursuant to the provisions of Article 13 of the Act, or that of a factory which has been registered pursuant to the provisions of Article 16 of the Act, is being changed to another business type, (meaning the business type according to the standards of factory site pursuant to the provisions of Article 8 of the Act; the same shall apply hereinafter), or another business type is added to the factory concerned. <Amended by Presidential Decree No. 16532, Aug. 9, 1999
[This Article Newly Inserted by Presidential Decree No. 15432, Jul. 10, 1997]

Article 19 (Procedures for Approval of Factory Establishment, etc.)
(1) Persons who intend to obtain approval of factory establishment, etc. or approval of change thereof shall submit an application for factory establishment, etc. with the papers prescribed by the Ordinance of the Ministry of Commerce, Industry and Energy to the head of Si/Gun/Gu. <Amended by Presidential Decree No. 16532, Aug. 9, 1999; Presidential Decree No. 18039, Jun. 30, 2003
(2) Where the head of Si/Gun/Gu has received an application for approval of factory establishment or approval of change thereof pursuant to the provisions of paragraph (1), he shall examine whether the application complies with the Act, this Decree, and other Acts and subordinate statutes, and decide whether to grant approval. <Amended by Presidential Decree No. 15432, Jul. 10, 1997; Presidential Decree No. 18039, Jun. 30, 2003
(3) Where the head of Si/Gun/Gu has approved the factory establishment, etc. or change thereof pursuant to the provisions of paragraph (2), he shall issue the applicant with a certificate of approval of factory establishment, etc. or certificate of approval of change thereof. <Amended by Presidential Decree No. 18039, Jun. 30, 2003
(4) Permission, authorization, license, etc. of factory establishment pursuant to other Acts that are deemed as having obtained approval of factory establishment, etc. pursuant to the provisions of Article 13 (2) 3 of the Act shall be as set out in the following subparagraphs: <Amended by Presidential Decree No. 16532, Aug. 9, 1999; Presidential Decree No. 18039, Jun. 30, 2003; Presidential Decree No. 18847, May 26, 2005
1. Permission of occupancy pursuant to the provisions of Article 9 (1) of the Act on the Designation, etc. of Free Trade Zone;
2. Approval of business plan pursuant to the provisions of Article 21 (1) of the Support for Small and Medium Enterprise Establishment Act; and
3. Approval of execution plan pursuant to the provisions of Articles 17 through 19 of the Industrial Sites and Development Act (limited to the case where the person who shall occupy the industrial complex pursuant to the provisons of Article 16 (3) of the same Act executes the industrial complex development project).
(5) An application for approval of factory establishment shall be filed prior to the application for permission for building or a report of building for the construction of a factory: Provided, That this shall not apply where permission of building or a report of building is intended to be deemed as approval of a factory establishment by legal fiction pursuant to the provisions of Article 13-2 (1) of the Act. <Amended by Presidential Decree No. 15432, Jul. 10, 1997; Presidential Decree No. 16532, Aug. 9, 1999>
(6) In approving the factory establishment, etc. pursuant to the provisions of Article 13 (1) of the Act, the head of Si/Gun/Gu may prescribe necessary detailed standards and announce them. <Newly Inserted by Presidential Decree No. 16532, Aug. 9, 1999>
[This Article Wholly Amended by Presidential Decree No. 15123, Jul 19, 1996]

Article 19-2 (Standards of Permission of Construction of Private Road)
The term "standards prescribed by the Presidential Decree" as referred to in Article 13-3 (1) of the Act means the case falling under any of the following subparagraphs: <Amended by Presidential Decree No. 18847, May 26, 2005>
1. Where the length of connection road that connects a factory site to a road (referring to a road pursuant to the provisions of Article 2 of the Road Act and the corresponding road pursuant to the provisions of Article 10 of the same Act. The same shall apply hereinafter.) is longer than the connecting road that connects to a route other than the road;
2. Where there is a river, ditch, levee, or other obstacle that the Minister of Commerce, Industry and Energy prescribes between the factory site and road; and
3. Where the head of Si/Gun/Gu has confirmed that the owner of the land, situated between the factory site and road, which is necessary for the construction of a connecting road of the factory, declines to sell the land.
[This Article Wholly Amended by Presidential Decree No. 16532, Aug. 9, 1999]


Article 19-3 (Approval of Factory Establishment, etc. on Land where Approval of New Business Plan has been Revoked)
(1) A person who intends to obtain approval of factory establishment, etc. for the purpose of factory establishment, etc. utilizing the site or factory where approval of a business plan or permission of factory construction pursuant to the provisions of article 24 of the Support for Small and Medium Enterprise Establishment Act has been revoked pursuant to the provisions of Article 13-3 (3) of the Act shall submit papers prescribed by the Ordinance of the Ministry of Commerce, Industry and Energy to the head of Si/Gun/Gu. <Amended by Presidential Decree No. 18039, Jun. 30, 2003; Presidential Decree No. 18847, May 26, 2005>
(2) Where the head of Si/Gun/Gu has received an application pursuant to the provisions of paragraph (1), he shall examine the matters of the following subparagraphs and decide whether to grant approval. In this case, where a decision of change of a national land utilization plan for a factory site on which factory establishment is intended is deemed legal by fiction pursuant to the provisions of Article 22 (1) 9 of the Support for Small and Medium Enterprise Establishment Act, he shall grant approval only to those who fall under the business starter status pursuant to the provisions of subparagraph 2 of Article 2 of the same Act: <Amended by Presidential Decree No. 18039, Jun. 30, 2003; Presidential Decree No. 18847, May 26, 2005>
1.Whether the factory to be established is for the same business type and scale as the business plan approved pursuant to the provisions of Article 21 of the Support for Small and Medium Enterprise Establishment Act; and
2. Whether the application complies with the provisions of the Act, this Decree and other Acts and subordinate statutes.
(3) Where the head of Si/Gun/Gu has granted approval pursuant to the provisions of paragraph (2), he shall, without delay, inform other administrative agencies pursuant to the provisions of Article 22 (4) of the Support for Small and Medium Enterprise Establishment Act of the details thereof. <Amended by Presidential Decree No. 18039, Jun. 30, 2003; Presidential Decree No. 18847, May 26, 2005>
[This Article Newly Inserted by Presidential Decree No. 16532, Aug. 9, 1999]


Article 19-4 (Reason for Revocation of Approval of Factory Establishment, etc.)
The term "such reasons as prescribed by the Presidential Decree" as referred to in Article 13-5 of the Act means a case falling under any of the following subparagraphs: <Amended by Presidential Decree No. 15432, Jul. 10, 1997; Presidential Decree No. 16532, Aug. 9, 1999; Presidential Decree No. 18039, Jun. 30, 2003>
1.Where factory construction does not start without justifiable reason until three years (two years where permission of farmland conversion or report of farmland conversion was legalized by fiction) have elapsed from the date approval for factory establishment, etc. was granted;
2. Where factory establishment, etc. has become impossible because approval to change the shape and quality of its land is revoked;
3. Where a completion report pursuant to the provisions of Article 15 of the Act has not been filed until four years have elapsed since the approval of factory establishment, etc. and approval of manufacturing facilities installation were granted, or construction work has been interrupted for more than one year after the factory construction work started: Provided, That this shall not apply to the case where the head of Si/Gun/Gu acknowledges that exceeding the period is inevitable in consideration of the regional economic circumstances, factory scale, etc.;
4. Where the site or structure on which factory establishment is approved is used for a purpose other than the approved details without justifiable reason; and
5. Where it falls short of standards of approval of factory establishment, etc. pursuant to the provisions of Article 13 (1) of the Act.
[This Article Wholly Amended by Presidential Decree No. 15123, Jul. 19, 1996]


Article 19-5 (Consultation of Approval for Factory Establishment, etc.)
The head of the administrative agency who has been requested consultation pursuant to the provisions of Article 13-2 (5) of the Act (including the cases where it is applied mutatis mutandis in Article 20 (4) of the Act), Article 14 (3) of the Act (including the cases where it is applied mutatis mutandis in Article 14-3 (4) of the Act), Article 14-2 (3) of the Act [including the cases where it is applied mutatis mutandis in Article 14-3 (6) of the Act] and Article 16 (9) of the Act by head of Si/Gun/Gu shall provide his opinion on the consultation within 10 days. <Amended by Presidential Decree No. 18039, Jun. 30, 2003>
[This Article Wholly Amended by Presidential Decree No. 16532, Aug. 9, 1999]

Article 19-6 (Approval of Installation of Manufacturing Facilities)
(1) Those who seek approval for installation of manufacturing facilities or approval for change thereof pursuant to the provisions of Article 14-3 (1) of the Act shall present papers prescribed by the Ordinance of the Ministry of Commerce, Industry and Energy to the head of Si/Gun/Gu.
(2) Where the head of Si/Gun/Gu has received an application pursuant to the provisions of paragraph (1), he shall confirm the establishment register of the relevant factory, check whether the application complies with the provisions of the Act, this Decree and other relevant Acts and subordinate statutes, and decide whether to grant approval.
(3) Where the head of Si/Gun/Gu has approved installation of manufacturing facilities or change thereof pursuant to the provisions of paragraph (2), he shall hand over a certificate of approval for installation of manufacturing facilities or a certificate of change of approval for installation of manufacturing facilities to the applicant.
[This Article Newly Inserted by Presidential Decree No. 6532, Aug. 9, 1999]

Article 19-7 (Reason for Revocation of Approval for Installation of Manufacturing Facilities)
The term "reasons prescribed by the Presidential Decree" as referred to in Article 14-4 of the Act means a case falling under any of the following subparagraphs:
1.Where installation of manufacturing facilities does not start without justifiable reasons within 1 year after the date of approval for installation of manufacturing facilities; or
2.Where installation of manufacturing facilities became impossible because the factory building has ceased to exist, the usage thereof has changed, etc.
[This Article Newly Inserted by Presidential Decree No. 16532, Aug. 9, 1999]

Article 20 (Report of Completion of Factory Establishment, etc.)
(1) Those who intend to report the completion of factory establishment, etc. pursuant to the provisions of Article 15 of the Act shall submit a report of completion of factory establishment, etc. with the papers prescribed by the Ordinance of the Ministry of Commerce, Industry and Energy to the head of Si/Gun/Gu or the administrative agency.
(2) The report of completion of factory establishment, etc. pursuant to the provisions of Article 15 of the Act shall be made within 2 months from one of the dates falling under the following subparagraphs:
1. The day when installation of machinery and equipment is completed after the use of the building is approved, in case of factory establishment, etc.; and
2. The day when installation of machinery and equipment is completed, in case of installation of manufacturing facilities.
[This Article Wholly Amended by Presidential Decree No. 16532, Aug. 9, 1999]

Article 21 (Revocation of Registration of Factory)
(1) The term "factory is shut down or its manufacturing facilities cease to exist" as referred to in Article 17 (1) 2 of the Act means the cases where either the manufacturing facilities have been withdrawn with the aim of not operating the manufacturing business, or the manufacturing facilities have been removed for some other reason.
(2) The term "other cases as prescribed by the Presidential Decree" as referred to in Article 17 (1) 3 of the Act means the cases listed in the following subparagraphs:
1.Cases where the occupancy contract has terminated pursuant to the provisions of Article 42 of the Act (limited to the occupant enterprise pursuant to the provisions of subparagraph 11 of Article 2 of the Act);
2.Cases where the factory is used for other purposes: Provided, That part of the factory is used for other purposes and the following items are satisfied, this shall not apply:
(a)To utilize it for use in the industry that the factory belongs to, or for a use necessary for the operation of the factory; and
(b)Not incurring substantial hindrance to the manufacturing activity of the factory;
3.Where the conditions attached at the time of factory registration were not fulfilled;
4.Deleted; and <by Presidential Decree No. 18039, Jun. 30, 2003>
5.Where an order or disposition pursuant to the Act is violated.
(3) Where part of the factory falls under the reason for revocation of registration in revoking the registration of the factory pursuant to the provisions of Act 17 (1) of the Act, the head of Si/Gun/Gu may revoke part of the factory registration as prescribed by the Ordinance of the Ministry of Commerce, Industry and Energy.
[This Article Wholly Amended by Presidential Decree No. 16532, Aug. 9, 1999]

Article 22 Deleted.
<by Presidential Decree No. 15123, Jul. 19, 1996

Article 23 Deleted.
<by Presidential Decree No. 14315, Jul. 4, 1994

Article 24 (Establishment, Operation of Public Service Center for Establishment of Factories)
(1) Where the Mayor/Do governor or the head of Si/Gun/Gu establishes a public service center for establishment of factories pursuant to the provisions of Article 19 (1) of the Act, he shall employ a staff member fully responsible for the industrial site in the public service center. <Amended by Presidential Decree No. 15432, Jul. 10, 1997; Presidential Decree No. 18039, Jun. 30, 2003>
(2) Deleted. <by Presidential Decree No. 15432, Jul. 10, 1997
(3) The Mayor/Do governor or the head of Si/Gun/Gu shall prescribe the necessary matters such as establishment and operation of public service center for establishment of factories, procedures for settlement of civil petitions, etc. in the Municipal Rule. <Amended by Presidential Decree No. 13731, Sep. 26, 1992>

Article 25 (Area, etc. of Factory Construction)
(1) The term "floor space" as referred to in Article 20 (1) of the Act means the total (in the environmental protection zone pursuant to the provisions of subparagraph 4 of Article 2, the total of floor space of each floor of a structure for installation of machinery and equipment used as a manufacturing facility, the horizontally projected area of an outdoor structure used as an manufacturing facility, and the floor space of each floor of the office and warehouse) of the floor space of each floor of the building for installation of machinery and equipment used as a manufacturing facility and the horizontally projected area of outdoor structure used as manufacturing facility. <Amended by Presidential Decree No. 15432, Jul. 10, 1997; Presidential Decree No. 16532, Aug. 9, 1999; Presidential Decree No. 18039, Jun. 30, 2003>
(2) The provisions of Article 18-2 (4) shall apply mutatis mutandis to the extent of activities of changing business type in the Article 20 (1) of the Act. <Amended by Presidential Decree No. 15432, Jul. 10, 1997; Presidential Decree No. 16532, Aug. 9, 1999>
(3) Deleted. <by Presidential Decree No. 15432, Jul. 10, 1997
(4) The term "transfer of factory" as referred to in Article 20 (1) of the Act means the closing up down of a factory registered pursuant to the provisions of Article 16 of the Act, moving it to another location, and constructing or enlarging a factory for the same business type. <Amended by Presidential Decree No. 16532, Aug. 9, 1999; Presidential Decree No. 18039, Jun. 30, 2003>
(5) Deleted. <by Presidential Decree No. 15432, Jul. 10, 1997

Article 26 (Waiver of Restriction on Activities in Restricted Population Zone)
In accordance with the proviso of Article 20 (1) of the Act, activities that may be allowed within the restricted population zone shall be as follows: <Amended by Presidential Decree No. 14822, Dec. 7, 1995; Presidential Decree No. 15123, Jul. 19, 1996; Presidential Decree No. 15432, Jul. 10, 1997; Presidential Decree No. 16532, Aug. 9, 1999; Presidential Decree No. 16891, Jul. 1, 2000; Presidential Decree No. 17816, Dec. 26, 2002; Presidential Decree No. 18039, Jun. 30, 2003; Presidential Decree No. 18292, Feb. 25, 2004; Presidential Decree No. 18847, May 26, 2005>
1.Construction, enlargement or transfer of a factory falling under the attached Table 1:
2.Construction and enlargement of an apartment type factory falling under the following items:
(a) Apartment type factories in the knowledge-based industrial cluster zone designated pursuant to the provisions of Article 22 (2) of the Act;
(b) Apartment type factories to induce municipal type factories pursuant to the provisions of subparagraph 1 of Article 34;
(c) Apartment type factories whose action plan for cooperation projects pursuant to the provisions of Article 19 of the Promotion of Small and Medium Enterprises and Encouragement of Purchase of Their Products Act was approved; and
(d) Apartment type factories in the industrial complex.
3.The enlargement of subsidiary facilities of a factory and the increase in the area of a factory site (limited to an increase within the extent that is suitable for standard factory area ratio);
4. The enlargement of a factory according to the installation standards stipulated by other Acts and subordinate statutes;
5. The construction or enlargement of a factory for the grain-processing, food manufacturing industry or aircraft manufacturing industry in the airport determined as an urban planning facility pursuant to the provisions of subparagraph 7 of Article 2 of the National Land Planning and Utilization Act;
6. The construction, enlargement or transfer of a factory, which is allowed pursuant to the provisions of the Act on Special Measures for Designation and Management of Areas of Restricted Development, and which is located in the development restriction zone pursuant to the provisions of Article 3 of the same Act;
7. The construction or enlargement of a factory falling under the urban planning facility pursuant to the provisions of subparagraph 7 of Article 2 of the National Land Planning and Utilization Act; and
8. The construction or enlargement of a factory of a foreigner invested enterprise pursuant to the provisions of subparagraph 4 of Article 2 of the Act on Designation and Management of Free Economic Zones in the free economic zone designated pursuant to the provisions of Article 4 of the same Act.
[This Article Wholly Amended by Presidential Decree No. 14315, Jul. 4, 1994]

Article 27 (Alleviation of Restriction on Activities in Growth Administration Zone)
Activities that are permitted in the growth administration zone pursuant to the provisions of the proviso to Article 20 (1) of the Act shall be as follows: <Amended by Presidential Decree No. 16532, Aug. 9, 1999; Presidential Decree No. 18039, Jun. 30, 2003>
1.The construction, enlargement or transfer of a factory falling under the attached Table 2; and
2.Activities prescribed in subparagraphs 2 through 8 of Article 26.
[This Article Wholly Amended by Presidential Decree No. 14315, Jul. 4, 1994]

Article 27-2 (Alleviation of Restriction on Activities in Environmental Protection Zone)
Activities that are permitted in the environmental protection zone pursuant to the provisions of the proviso to Article 20 (1) of the Act shall be as follows: <Amended by Presidential Decree No. 14822, Dec. 7, 1995; Presidential Decree No. 15123, Jul. 19, 1996; Presidential Decree No. 15432, Jul. 10, 1997; Presidential Decree No. 16532, Aug. 9, 1999; Presidential Decree No. 18292, Feb. 25, 2004; Presidential Decree No. 18847, May 26, 2005>
1.The construction, enlargement or transfer of a factory falling under the attached Table 3;
2.The construction or enlargement of a factory falling under any of the following items:
(a) Apartment type factories for inducement of factories prescribed by the Ordinance of the Ministry of Commerce, Industry and Energy, which are deemed as factories suitable for the purpose of the designation of environmental protection zones in the impact to the water quality from among municipal type factories. In this case, the Minister of Commerce, Industry and Energy shall consult with the Minister of Environment before formulating and amending the Ordinance of the Ministry of Commerce, Industry and Energy; and
(b) Apartment type factories in the industrial complex and industrial zone.
3. Enlargement of subsidiary facilities of a factory (limited to a construction area of 500 square meters or less for offices and 1000 square meters or less for warehouses in the special measures area for environmental preservation pursuant to the provisions of Article 22 (1) of the Framework Act on Environmental Policy and a water source protection area pursuant to the provisions of Article 5 of the Water Supply and Waterworks Installation Act, and in other zones, a construction area of 1000 square meters or less for offices and 3000 square meters or less for warehouses) and increase in the area of a factory site (limited to the increase to the extent suitable for standard factory area ratio); and
4. Activities prescribed by subparagraphs 4 through 6 of Article 26.
[This Article Newly Inserted by Presidential Decree No. 14315, Jul. 4, 1994]

Article 27-3 (Change of Business Type)
The cases where a change of business type is possible within the restricted population zones, growth administration zones, and environmental protection zones pursuant to the provisions of the proviso to Article 20 (1) of the Act shall be as follows: <Amended by Presidential Decree No. 14822, Dec. 7, 1995; Presidential Decree No. 16532, Aug. 9, 1999; Presidential Decree No. 16891, Jul. 1, 2000; Presidential Decree No. 18847, May 26, 2005>
1. Cases where it is a factory registered pursuant to the provisions of Article 16 (1) of the Act and falls under any of the following items:
(a) Where its business type changes to a business type with a lower pollution level, or to a high-tech business type pursuant to the provisions of subparagraph 3 (d) of the attached Table 1; and
(b) Where it changes to a factory whose establishment in the zone concerned is permitted (limited to the scale that is allowed for establishment).
2. Where the business type of a manufacturing process necessary for the production of the final product is added, the area that the manufacturing process takes up is 50 percent or less of the factory construction area;
3. Deleted; and <by Presidential Decree No. 15432, Jul. 10, 1997>
4. Where a factory situated in the development restriction zone pursuant to the provisions of Article 3 of the Act on Special Measures for Designation and Management of Areas of Restricted Development changes its business type to a business type allowed pursuant to the provisions of the same Act.
[This Article Newly Inserted by Presidential Decree No. 14315, Jul. 4, 1994]

Article 28 (Presentation of Knowledge-Based Industrial Cluster Zone Development Plan)
Where the knowledge-based industrial cluster zone development program (hereinafter referred to as the "development program") pursuant to the provisions of Article 22(1) of the Act, which has been set up and submitted by the head of Si/Gun/Gu to ask for designation of knowledge-based industrial cluster zone (hereinafter referred to as a "cluster zone") pursuant to the provisions of Article 22 of the Act falls under any of the following subparagraphs, the Minister of Commerce, Industry and Energy may permit the development program to be jointly presented after going through consultation among the heads of Si/Gun/Gu:
1. Where cluster zones of two or more Si/Do can be closely related;
2. Where the industrial cluster infrastructure facility expansion plan, etc. included in the development program of two or more Si/Do are closely related.
[This Article Newly Inserted by Presidential Decree No. 18039, Jun. 30, 2003]

Article 29 (Public Announcement of Designation of Cluster Zone)
Where the Minister of Commerce, Industry and Energy has designated cluster zone pursuant to the provisions of Article 22 (4) of the Act, he shall announce publicly the matters of the following subparagraphs in the Official Gazette:
1. The name and extent of the cluster zone;
2. The purpose of designation of the cluster zone;
3. The course of development of cluster zone;
4. The main business type to induce and cluster program for each business type;
5. Plan for mutual connections between enterprises, research institutes, universities, enterprises for supporting facilities, etc.; and
6. Installation plans for main industrial cluster infrastructure facilities.
[This Article Newly Inserted by Presidential Decree No. 18039, Jun. 30, 2003]

Article 30 (Application for Designation of Promotional Zone)
(1) In designating a promotional zone pursuant to the provisons of Article 23 (1) of the Act, the Minister of Commerce, Industry and Energy may designate a promotional zone according to an application by a person who requires the creation of an industrial complex conforming to a specific business type and purpose (hereafter referred to as a "custom-built industrial complex" in this Article) through the systematization, collectivization, etc. of factories. <Amended by Presidential Decree No. 13870, Mar 6, 1993; Presidential Decree No. 14822, Dec. 7, 1995; Presidential Decree No. 16532, Aug. 9, 1999; Presidential Decree No. 18039, Jun. 30, 2003>
(2) A person who intends to apply for the designation of a promotional zone pursuant to the provisions of paragraph (1) shall submit an application for designation of promotional zone with the papers prescribed by the Ordinance of the Ministry of Commerce, Industry and Energy to the Minister of Commerce, Industry and Energy. The same shall apply to the change of the matters that have been designated. <Amended by Presidential Decree No. 13870, Mar 6, 1993; Presidential Decree No. 14822, Dec. 7, 1995; Presidential Decree No. 16532, Aug. 9, 1999>
(3) The Minister of Commerce, Industry and Energy may provide support by drawing up an assistance plan for the promotion of a custom-built industrial complex designated pursuant to the provisions of paragraph (1). <Amended by Presidential Decree No. 18039, Jun. 30, 2003>

Article 31 (Procedure of Designation of Promotional Zone)
(1) The Minister of Commerce, Industry and Energy may hear the opinions of the Mayor/Do governor where necessary for drawing up a promotional zone designation plan pursuant to the provisions of Article 23 (2) of the Act, and may execute investigation of the industrial site pursuant to the provisions of Article 6 of the Act. <Amended by Presidential Decree No. 13870, Mar 6, 1993; Presidential Decree No. 14822, Dec. 7, 1995; Presidential Decree No. 16532, Aug. 9, 1999; Presidential Decree No. 18039, Jun. 30, 2003>
(2) Where the promotional zone designation plan pursuant to the provisions of Article 23 (2) of the Act has been raised at the Council, deliberated upon and resolved within 20 days from the date of resolution, the Minister of Commerce, Industry and Energy shall designate the zone concerned as a promotional zone. <Amended by Presidential Decree No. 13870, Mar 6, 1993; Presidential Decree No. 14822, Dec. 7, 1995; Presidential Decree No. 16532, Aug. 9, 1999; Presidential Decree No. 18039, Jun. 30, 2003>
(3) Where the Minister of Commerce, Industry and Energy has designated a promotional zone pursuant to the provisions of paragraph (2), he shall, without delay, announce it in the Official Gazette. <Amended by Presidential Decree No. 13870, Mar 6, 1993; Presidential Decree No. 14822, Dec. 7, 1995; Presidential Decree No. 16532, Aug. 9, 1999; Presidential Decree No. 18039, Jun. 30, 2003>

Article 32 (Promotional Zone Designation Plan)
The term "other matters determined by the Presidential Decree" as referred to in Article 23 (3) 4 of the Act shall mean the matters of the following subparagraphs: <Amended by Presidential Decree No. 18039, Jun. 30, 2003>
1. Matters regarding disposition of business type to be induced to the promotional zone;
2. Plan of industrial site supply and plan for supply and demand of manpower;
3. Research and educational institutes to be induced to the promotional zone;
4. Matters regarding installation, etc. of infrastructure facilities necessary for assistance to the promotional zone;
5. Matters regarding prevention of environmental pollution; and
6. Necessity of designation and the promotional zone development plan.

Article 33 (Policy of Local Industry Development)
The policy of local industry development pursuant to the provisions of Article 26 (1) of the Act shall include the matters of the following subparagraphs:
1. Matters regarding support of consulting, marketing, information, etc. to enterprise;
2. Matters regarding support of technological development, education and training to enterprise;
3. Matters regarding support to an informatization project; and
4. Other matters regarding necessary support for the facilitation of transfer to local area of enterprise.
[This Article Newly Inserted by Presidential Decree No. 18039, Jun. 30, 2003]

Article 34 (Classification and Scope of Municipal Factory)
The municipal factory pursuant to the provisions of Article 28 of the Act shall be a factory falling under any of the following subparagraphs (hereinafter referred to as a "municipal factory"): <Amended by Presidential Decree No. 18847, May 26, 2005>
1. A factory other than the one falling under any of the following items: or
(a) A factory which installs air pollutant discharge equipment that discharges a specific harmful substance into the air pursuant to the provisions of subparagraph 8 of Article 2 of the Clean Air Conservation Act;
(b) A factory which installs air pollutant discharge facility pursuant to the provisions of subparagraph 9 of Article 2 of the Clean Air Conservation Act, and falls under business grades through of the attached Table 8 of the Enforcement Decree of the same Act: Provided, That the factory that does not directly use fuel is excluded.
(c) A factory which installs wastewater discharge equipment that discharges a specific harmful substance into water pursuant to the provisions of subparagraph 3 of Article 2 of the Water Quality Conservation Act: Provided, That a factory that entrusts treatment of all wastewater pursuant to the provisions of subparagraph 2 of Article 4 of the Enforcement Decree of the Water Quality Conservation Act is excluded; and
(d) A factory which installs wastewater discharge equipment pursuant to the provisions of subparagraph 5 of Article 2 of the Water Quality Conservation Act, and falls under business grade through of the attached Table 1 of the Enforcement Decree of the same Act.
2. A factory which operates a business type falling under the Sub-Table of the attached Table 1, but does not amount to a factory pursuant to the provisions of subparagraph 1 (limited to a factory which falls under the extent of business which is liable for environmental impact assessment pursuant to the provisions of Article 4 of Act on Assessment of Impacts of Works on Environment, Traffic, Disasters, etc.
[This Article Wholly Amended by Presidential Decree No. 18292, Feb. 25, 2004]

Article 35 Deleted.
<by Presidential Decree No. 15123, Jul. 19, 1996

Article 36 (Approval, etc. of Establishment of Apartment Type Factory)
(1) The provisions of Articles 19, 19-2 and 19-4 through 19-7 shall apply mutatis mutandis to the procedures of approval of apartment type factory establishment, permission standards of private road construction for access roads, reasons for revocation of approval for apartment-type factory establishment, consultation on an apartment-type factory establishment, etc., approval of a manufacturing facility installation by apartment type factory occupants and reasons for revocation thereof.
(2) The term "period as prescribed by the Presidential Decree" as referred to in Article 28-2 (2) of the Act shall mean two months from the date of approval of use.
[This Article Wholly Amended by Presidential Decree No. 16532, Aug. 9, 1999]

Article 36-2 (Rent Rate for Apartment-Type Factory Built by State, etc.)
The term "rent rates as prescribed by the Presidential Decree" as referred to in Article 28-3 (2) of the Act shall mean the rent rate corresponding to 1/2 or more of the rent rate prescribed by the State Properties Act and the Local Finance Act. <Amended by Presidential Decree No. 16532, Aug. 9, 1999>
[This Article Newly Inserted by Presidential Decree No. 15432, Jul. 10, 1997]

Article 36-3 (Object of Exemption from Approval of Public Notice Plan of Sale in Lots)
(1) Cases where apartment-type factory occupants can be induced in secret pursuant to the provisions of Article 28-4 (2) 1 of the Act are where the head of Si/Gun/Gu acknowledges it necessary to select occupants in advance for inducement, etc. of the apartment-type factory concerned when the apartment type factory is established for the reasons in the following subparagraphs:
1. Inducement of factory which shall be removed for public project; and
2. Collectivization of factories or inducement of certain business types.
(2) The term "less than any scale as prescribed by the Presidential Decree" as referred to in Article 28-4 (2) 2 of the Act shall mean less than 2000 square meters of total ground area.
[This Article Newly Inserted by Presidential Decree No. 16532, Aug. 9, 1999]

Article 36-4 (Occupancy in Apartment Type Factory)
(1) The term "other businesses as prescribed by the Presidential Decree" as referred to in Article 28-5 (1) 1 of the Act shall mean the businesses of the following subparagraphs: <Amended by Presidential Decree No. 18039, Jun. 30, 2003>
1. Deleted; <by Presidential Decree No. 18039, Jun. 30, 2003>
2. Knowledge industry and information and communication industry pursuant to the provisions of Article 6 (2) and (3);
3. and 4. Deleted; and <by Presidential Decree No. 18039, Jun. 30, 2003>

5. Any other business that the head of Si/Gun/Gu or administrative agency acknowledges as necessary for occupancy of an apartment-type factory for collectivization of a certain industry and development of the local economy.
(2) The supporting facilities for manufacturing activities of the occupant enterprises pursuant to the provisions of Article 28-5 (1) 3 of the Act shall mean the facilities of the following subparagraphs: Provided, That the facilities, which the head of Si/Gun/Gu or administrative agency acknowledges as creating obstacles to the manufacturing activities of the occupant enterprises, are excluded: <Amended by Presidential Decree No. 18039, Jun. 30, 2003; Presidential Decree No. 18847, May 26, 2005>
1. Facilities for the operation of finance, insurance, education, medicine, trading, sales business (limited to the case where products are made by the occupant enterprise of the apartment type factory concerned);
2. Distribution facilities and facilities necessary for the assistance of the business of occupant enterprises or facilities for improvement of employee welfare such as day-care centers, dormitories, etc.; and
3. Neighborhood living facilities pursuant to the provisions of subparagraphs 3 and 4 of the attached Table 1 of the Enforcement Decree of the Building Act (if there is a limitation on area, it is limited to the extent of the limited area).
(3) The scale of facilities for assistance of manufacturing activities of occupant enterprises pursuant to the provisions of the subparagraphs of paragraph (2) shall be within 30/100 (within 20/100, in case of apartment-type factories in the industrial complex pursuant to the provisions of subparagraph 7 of Article 2 of the Act) of the total ground area of the apartment type factory concerned. <Amended by Presidential Decree No. 18039, Jun. 30, 2003>
(4) In installing facilities for the operation of manufacturing business pursuant to the provisions of Article 28-5 (1) 1 of the Act, only the facilities for municipal factories (excluding the municipal factory pursuant to the provisions of subparagraph 2 of Article 34) may be installed in cases where the apartment-type factory is situated in an area other than industrial complex or industrial zone. <Amended by Presidential Decree No. 18292, Feb. 25, 2004>
(5) The head of Si/Gun/Gu or administrative agency may allow the office or warehouse among the subsidiary facilities of the occupant enterprise that operates a manufacturing business in an apartment-type factory be installed in a separate district within the apartment type factory building. <Newly Inserted by Presidential Decree No. 18039, Jun. 30, 2003>
[This Article Wholly Amended by Presidential Decree No. 16532, Aug. 9, 1999]

Article 36-5 (Main Structure of Apartment-Type Factory)
The term "major structures as prescribed by the Presidential Decree" as referred to in Article 28-7 (1) 1 of the Act shall mean the one that falls under any of the following subparagraphs:
1. Pillar, impact-resistant wall (excluding brickwork wall, etc. that do not bear weight); or
2. Crossbeam, floor, roof.
[This Article Newly Inserted by Presidential Decree No. 16532, Aug. 9, 1999]

Article 36-6 (Measures against Breach of Duties)
(1) Where an occupant or administrator fails to execute the order of correction within the period of correction pursuant to the provisions of Article 28-8 of the Act, the head of Si/Gun/Gu may take any measure of the following subparagraphs to secure the safety of the apartment-type factory.
1. Elimination of cause, such as removal of heavy goods, etc. that exceeds the allowed standards and emergency restoration of the building; or
2. Limitation on the use of the building concerned;
(2) The head of Si/Gun/Gu may collect charges incurred in the course of taking measures pursuant to the provisions of paragraph (1) 1.
[This Article Newly Inserted by Presidential Decree No. 16532, Aug. 9, 1999]

Article 36-7 (Entrustment Agency of Administration Business)
The term "institution prescribed by the Presidential Decree" as referred to in Article 30 (2) 5 of the Act shall mean the institution of the following subparagraphs: <Amended by Presidential Decree No. 18847, May 26, 2005>
1. A local public corporation pursuant to the provisions of 49 of the Local Public Enterprises Act;
2. A local agricultural cooperative pursuant to the provisions of Article 15 of the Agricultural Cooperatives Act.
[This Article Newly Inserted by Presidential Decree No. 18039, Jun. 30, 2003]

Article 37 (Administration of Complex Pursuant to Other Acts, such as National Land Planning and Utilization Act, etc)
The authorized administrator pursuant to the provisions of 30 (3) of the Act shall publically announce the matters of the following subparagraphs: <Amended by Presidential Decree No. 15123, Jul. 19, 1996>
1. The name and kind of complex;
2. The location, total area and area to be used for administration;
3. The business operator and period of creation;
4. The main business type to invite; and
5. The administrative agency

Article 37-2 (Entrustment of Administrative Affair)
(1) When the authorized administrator entrusts the administrative affairs of an industrial complex to an administrative agency, he shall decide the extent of entrustment in consideration of the business execution capability of the administrative agency regarding occupancy contract, factory registration, etc. <Amended by Presidential Decree No. 16532, Aug. 9, 1999>
(2) When the authorized administrator has entrusted the administrative affairs of the industrial complex, he shall announce the entrusted administrative agency, contents of entrusted affair, etc.
[This Article Newly Inserted by Presidential Decree No. 15432, Jul. 10, 1997]

Article 38 (Requirements for Establishment of Administrative Corporation)
The requirements for the establishment of industrial complex administrative corporation (hereinafter referred to as an administrative corporation ) and consultative council for occupant enterprises shall be as listed in the following subparagraphs:
1. The area of industrial complex to manage or the number of occupant enterprises shall exceed that prescribed by the Ordinance of the Ministry of Commerce, Industry and Energy;
2. There shall be administration capability and self-supporting financial plans necessary for administration; and
3. As for an autonomous consultative council composed of occupant enterprises, it shall be composed of members of 90 percent or more of the occupant enterprises: Provided, That in case of an agro-industrial complex, it shall be composed of members of 70 percent or more of the occupant enterprises, or 90 percent or more of the operating occupant enterprises.

Article 39 (Procedures for Establishment of Administrative Corporation.)
(1) Those who intend to establish an administrative corporation or a consultative council for occupant enterprises shall submit an application for permission to establish an administrative corporation or an application for permission to establish a consultative council for occupant enterprises prescribed by the Ordinance of the Ministry of Commerce, Industry and Energy accompanied by the papers of the following subparagraphs to the authorized administrator. <Amended by Presidential Decree No. 13870, Mar 6, 1993; Presidential Decree No. 14822, Dec. 7, 1995; Presidential Decree No. 15123, Jul. 19, 1996; Presidential Decree No. 16532, Aug. 9, 1999>
1. Minutes of the inaugural meeting;
2. Articles of incorporation;
3. Business plan and budget of receipts and disbursements;
4. Administration plan of the industrial complex; and
5. List and resume of the officers.
(2) When the authorized administrator has approved establishment of administrative corporation or consultative council for occupant enterprises pursuant to the provisions of Article 31 (2) of the Act, he shall announce it in public.

Article 40 (Composition and Operation of Consultative Council for Occupant Enterprises)
(1) The consultative council for occupant enterprises pursuant to the provisions of Article 31 (6) of the Act shall consist of general members and special members.
(2) Representatives of the occupant enterprises and supporting agencies shall be the general members under paragraph (1). Persons who are appointed by the chairman of the consultative council for occupant enterprises from among persons other than general members after obtaining approval from the authorized administrator shall be the special members.
(3) The consultative council for occupant enterprises shall hold a general meeting within 2 months from the commencement of each year, and may hold interim meetings when necessary.
(4) Meetings of the consultative council for occupant enterprises shall pass resolutions with a majority present and grant approval by a 2/3 majority of those in attendance.

Article 40-2 Deleted.
<by Presidential Decree No. 15432, Jul. 10, 1997>

Article 41 (Contents of Administrative Guidelines)
(1) Administrative guidelines pursuant to the provisions of Article 32 (1) of the Act shall contain the matters of the following subparagraphs: <Amended by Presidential Decree No. 15123, Jul. 19, 1996; Presidential Decree No. 16532, Aug. 9, 1999>
1. Standards or formulation and execution of basic administrative plan;
2. Matters regarding connection between basic administrative plan and plans according to other Acts and subordinate statutes regarding development, dispositions, etc. of an industrial complex; and
3. Matters necessary for the management business of an industrial complex pursuant to the provisions of Article 5.
(2) The term "modification of trivial matters such as those prescribed by the Presidential Decree" as referred to in the proviso of Article 32 (1) of the Act shall mean the modifications of the following subparagraphs: <Amended by Presidential Decree No. 15123, Jul. 19, 1996>
1. Partial modification of administrative guidelines for local industrial complexes and agro-industrial complexes: and
2. Partial modification of the matters prescribed in paragraph (1) 3.
(3) The administrative guidelines pursuant to the provisions of Article 32 (1) of the Act shall be announced in the Official Gazette. <Newly Inserted by Presidential Decree No. 18039, Jun. 30, 2003>
(4) The administrative guidelines of agro-industrial complexes pursuant to the provisions of Article 32 (3) of the Act shall include the matters in the following subparagraphs, besides the matters prescribed in paragraph (1): <Amended by Presidential Decree No. 15123, Jul. 19, 1996>
1. Matters regarding utilization of endowed resources of the region concerned for development of the regional economy;
2. Matters regarding development in connection with neighboring national industrial complexes and local industrial complexes; and
3. Other matters necessary for the management of agro-industrial complexes.

Article 42 (Drawing-up of Basic Management Program)
(1) When the administrative agency intends to obtain approval of a basic management program pursuant to the provisions of Article 33 (1) of the Act, it shall submit an application for approval of a basic management program, accompanied by the papers prescribed by the Ordinance of the Ministry of Commerce, Industry and Energy to the authorized administrator: Provided, That it shall be submitted to the Mayor/Do governor in case of an agro-industrial complex. <Amended by Presidential Decree No. 14315, Jul. 4, 1994; Presidential Decree No. 14822, Dec. 7, 1995; Presidential Decree No. 15123, Jul. 19, 1996; Presidential Decree No. 16532, Aug. 9, 1999>
(2) The basic management program of an agro-industrial complex pursuant to the provisions of the proviso to Article 33 (1) of the Act shall include the matters of the following subparagraphs besides the matters prescribed in paragraph (1):
1. Matters regarding supply and demand of manpower such as development of local human resources, etc.;
2. Matters regarding assistance of facilities, working funds and technology to occupant enterprises; and
3. Other matters necessary for the management of agro-industrial complexes.
(3)When the authorized administrator intends to consult with the holder of a right to designate industrial complex regarding approval of basic management programs pursuant to the provisions of Article 33 (2) of the Act, he shall send the papers prescribed by the Ordinance of the Ministry of Commerce, Industry and Energy to the holder of the right to designate industrial complexes. <Newly Inserted by Presidential Decree No. 14315, Jul. 4, 1994; Presidential Decree No. 14822, Dec. 7, 1995; Presidential Decree No. 15123, Jul. 19, 1996; Presidential Decree No. 16532, Aug. 9, 1999>
(4)Alteration of minor matters for which consultation with the holder of the right to designate industrial complexes can be omitted shall be cases which fall under any of the following subparagraphs: <Newly Inserted by Presidential Decree No. 16532, Aug. 9, 1999; Presidential Decree No. 18847, May 26, 2005>
1. Where the basic management program is altered following the alteration of an industrial complex development plan after going through the procedures of consultation, etc. with the relevant administrative agencies pursuant to the provisions of Articles 6 through 8 of the Industrial Sites and Development Act when the basic management program is connected with the industrial complex development program pursuant to the same Act; and
2. Where the basic management program is altered in order to alter the matters regarding installation and operation of supporting facilities.
(5) The administrative agency (authorized administrator where the administrative agency falls under subparagraph 3 or 4 of Article 30 (2) of the Act) may announce the occupancy management points of industrial complex containing the business type, qualifications, priority order, ex post facto management, etc. of occupancy in the industrial complex, if necessary for the execution of the basic management program. <Newly Inserted by Presidential Decree No. 14315, Jul. 4, 1994; Presidential Decree No. 15123, Jul. 19, 1996>
(6) Where a program for enhancing the structure of industrial complexes is announced pursuant to the provisions of Article 45-2 (5) of the Act, the administrative agency shall reflect it in the basic management program. <Newly Inserted by Presidential Decree No. 18039, Jun. 30, 2003>

Article 43 (Classification, etc. of Site by Use)
(1) Pursuant to the provisions of the latter part of Article 33 (5) of the Act, the administrative agency may manage the industrial facilities zone by subdividing it into the uses of the following subparagraphs: <Amended by Presidential Decree No. 15432, Jul. 10, 1997; Presidential Decree No. 16532, Aug. 9, 1999>
1. Factory facility use;
2. Knowledge industry facility use;
3. Information and communication industry facility use;
4. Resource storage facility use;
5. Waste treatment facility use;
6. Distribution facility use;
7. Specialized local industry use (limited to the case of agro-industrial complex);
8. Electric power facility use;
9. Venture enterprise cluster facility use; and
10. Other facility use prescribed by the basic management program.
(2) When the administrative agency has subdivided an industrial facilities zone by use, he shall manage it in a manner suitable for its use: Provided, That where it is acknowledged as necessary for development of surroundings of the industrial complex and for strengthening the competitiveness of the occupant enterprises, part of the industrial facilities zone may be permitted to be used for two or more of the uses referred to in the subparagraphs of paragraph (1). <Amended by Presidential Decree No. 16532, Aug. 9, 1999>
(3) In disposing of factories in the industrial facilities zone pursuant to the provisions of paragraph (1), the administrative agency shall dispose of them according to the business type in conformity with the arrangement plan by business type: Provided, That this shall not apply where it falls under any of the following subparagraphs: <Amended by Presidential Decree No. 15432, Jul. 10, 1997; Presidential Decree No. 16532, Aug. 9, 1999; Presidential Decree No. 18039, Jun. 30, 2003>
1. Cases where the area applied for occupancy by a specific business type exceeds the planned area in accordance with the arrangement plan by business type, and the area applied for occupancy of another business type falls short of the planned area in accordance with the arrangement plan by business type;
2. Cases where an existing enterprise changes business type after factory establishment, a person who has legitimately acquired the industrial site, factory, etc. of the existing occupant enterprise intends to occupy it after changing the business type of the factory, and it is acknowledged that the use of electricity and water, waste treatment, generation of environmental pollution, etc. do not cause inconvenience to other occupant enterprises;
3. Cases where an occupant enterprise intends to engage in an additional business type that can occupy a district arranged by use pursuant to the provisions of the subparagraphs of paragraph (1) while engaging in a business type in conformity with the arrangement plan by business type, and where the administrative agency acknowledges it necessary.
[This Article Wholly Amended by Presidential Decree No. 15123, Jul. 19, 1996]

Article 43-2 (Sale and Rent of State and Public Land in Industrial Complex)
(1) Where the Minister of Commerce, Industry and Energy or the head of a local government sells or leases land, a factory structure, or other facilities (hereinafter referred to as a "factory, etc.") in the industrial complex possessed by the State or local governments to occupant enterprises or supporting agencies pursuant to the provisions of Article 34 of the Act, he may attach conditions to assure execution of a contract.
(2) When the Minister of Commerce, Industry and Energy intends to consult with the Minister of Finance and Economy regarding the sale price or rent rate pursuant to the provisions of Article 34 (2) of the Act, he shall present data regarding the matters of the following subparagraphs:
1. Specification of funds invested in the land, factory, etc. concerned;
2. Price calculation sheet; and
3. Area and drawing of land, factory, etc.
(3) When the Minister of Commerce, Industry and Energy or the head of a local government has fixed the sale price or rent rate of land, factory, etc. pursuant to the provisions of Article 34 (2) of the Act, he shall announce it without delay.
(4) The period of lease of land, factory, etc. in the industrial complex pursuant to the provisions of Article 34 of the Act shall be 10 years in principle. This period may be extended when an application for extension of lease period is filed by 3 months prior to the expiration of lease period.
(5) Necessary matters regarding the time and method of paying rent of State land, factory, etc., and collection of arrears and unpaid bills, etc. shall be laid down by the Minister of Commerce, Industry and Energy after consultation with the Minister of Finance and Economy, and necessary matters regarding the time and method of paying rent of public land or factory, etc., collection of arrears and unpaid bills, etc. shall be specified by the head of the local government.
(6) The Minister of Commerce, Industry and Energy may entrust management of State land, factory, etc. in the industrial complex to an administrative agency pursuant to the provisions of Article 21-2 of the State Properties Act. In this case, the period of management entrustment may, notwithstanding the provisions of Article 21-2 (1) of the Enforcement Decree of the State Properties Act, be until the land, factory, etc. is used for the proposed business. <Amended by Presidential Decree No. 18847, May 26, 2005>
[This Article Wholly Amended by Presidential Decree No. 16532, Aug 9, 1999]

Article 44 (Designation, etc. of Special Promotional Industries)
(1) When the Minister of Commerce, Industry and Energy intends to designate a zone in the industrial complex to admit special promotional industries pursuant to the provisions of Article 35 of the Act, he shall, in advance, consult with the authorized administrator and the holder of the right to designate industrial complexes pursuant to the provisions of Articles 6 through 8 of the Industrial Sites and Development Act: <Amended by Presidential Decree No. 13870, Mar. 6, 1993; Presidential Decree No. 14822, Dec. 7, 1995; Presidential Decree No. 15123, Jul. 19, 1996; Presidential Decree No. 16532, Aug. 9, 1999; Presidential Decree No. 18847, May 26, 2005>
1. The business type to induce;
2. The area of designation;
3. The plan for occupancy; and
4. Other matters necessary for designation of a zone to admit special promotional industries.
(2) When the Minister of Commerce, Industry and Energy has designated a zone to admit special promotional industries pursuant to the provisions of Article 35 of the Act, he shall announce it. <Amended by Presidential Decree No. 13870, Mar. 6, 1993; Presidential Decree No. 14822, Dec. 7, 1995; Presidential Decree No. 16532, Aug. 9, 1999>
(3) When the Minister of Commerce, Industry and Energy has designated a zone to admit special promotional industries pursuant to the provisions of Article 35 of the Act, the administrative agency shall reflect it in the basic management program. <Amended by Presidential Decree No. 13870, Mar. 6, 1993; Presidential Decree No. 14315, Jul. 4, 1994; Presidential Decree No. 14822, Dec. 7, 1995; Presidential Decree No. 16532, Aug. 9, 1999>

Article 44-2 (Report of Overseas Industrial Complex)
(1) A person who intends to operate a business of developing, disposing of and managing overseas industrial complexes pursuant to the provisions of Article 35-2 (1) of the Act shall submit an application with a business plan containing the matters of the following subparagraphs to the Minister of Commerce, Industry and Energy.
1. An outline of business;
2. The scale of the overseas industrial complex, the method of development and the period thereof;
3. Plan for raising investment funds;
4. Plan of occupant enterprise inducement and management program of overseas industrial complex; and
5. Matters of agreement of the country where the development of an overseas industrial complex is intended.
(2) The term "important matters as prescribed by the Presidential Decree" as referred to in the latter part of Article 35-2 (1) of the Act shall mean the matters prescribed by subparagraphs 2, 4 and 5 of paragraph (1).
[This Article Wholly Amended by Presidential Decree No. 16532, Aug. 9, 1999]

Article 44-3 (Designation of Exclusive Complex for Foreign Enterprises)
(1) When the Minister of Commerce, Industry and Energy has designated an exclusive complex for foreign enterprises pursuant to the provisions of Article 35-3 (1) of the Act, he shall announce the matters of the following subparagraphs. The same shall apply when he changes the matters designated. <Amended by Presidential Decree No. 14822, Dec. 7, 1995; Presidential Decree No. 16532, Aug. 9, 1999>
1. The name of the exclusive complex for foreign enterprises;
2. The purpose of designation of the exclusive complex for foreign enterprises;
3. The period and method of development;
4. The qualifications of the occupant enterprise and main business type to be induced; and
5. The method of reading the relevant drawings and papers.
(2) The term "other matters prescribed by the Presidential Decree" as referred to in Article 35-3 (5) 4 of the Act shall mean the matters of the following subparagraphs:
1. The name and purpose of designation of the exclusive complex for foreign enterprises;
2. The business operator and administrative agency;
3. The method of business operation; and
4. The plan for land utilization and major infrastructure facilities.
(3) When the creation of an exclusive complex for foreign enterprises is necessary, local governments or persons prescribed by the Ordinance of the Ministry of Commerce, Industry and Energy may apply for the designation of an exclusive complex for foreign enterprises pursuant to the provisions of Article 35-3 of the Act to the Minister of Commerce, Industry and Energy. <Amended by Presidential Decree No. 14822, Dec. 7, 1995; Presidential Decree No. 16532, Aug. 9, 1999>
(4) A person who intends to apply for the designation of an exclusive complex for foreign enterprises pursuant to the provisions of paragraph (3) shall submit to the Minister of Commerce, Industry and Energy an application for designation accompanied by the papers prescribed by the Ordinance of the Ministry of Commerce, Industry and Energy. <Amended by Presidential Decree No. 14822, Dec. 7, 1995; Presidential Decree No. 16532, Aug. 9, 1999>
[This Article Newly Inserted by Presidential Decree No. 14315, Jul. 4, 1994]

Article 44-4 (Management and Operation of Exclusive Complex for Foreign Enterprises)
(1) The provisions of the Act and this Decree regarding the management and operation of a national industrial complex shall apply to the management and operation of an exclusive complex for foreign enterprises except for those specifically prescribed by other Acts and subordinate statutes regarding management and operation of exclusive complexes for foreign enterprises. <Amended by Presidential Decree No. 15123, Jul. 19, 1996>
(2) The Minister of Commerce, Industry and Energy may announce points of occupancy management of exclusive complexes for foreign enterprises containing a business type to be induced, qualifications for occupancy, priority order of occupancy, ex post facto management, etc., where it is necessary for reasonable sale in lots and management of exclusive complexes for foreign enterprises. <Amended by Presidential Decree No. 14822, Dec. 7, 1995; Presidential Decree No. 16532, Aug. 9, 1999>
(3) Deleted. <by Presidential Decree No. 16532, Aug. 9, 1999>
[This Article Newly Inserted by Presidential Decree No. 14315, Jul. 4, 1994]

Article 44-5 Deleted.
<by Presidential Decree No. 15432, Jul. 10, 1997>

Article 45 (Transfer, etc. of Industrial Complex)
(1) Where the administrative agency intends to have the business of sale in lots and lease entrusted by the business operator pursuant to the provisions of Article 36 (1) of the Act, it shall submit a plan for sale in lots and lease accompanied by papers containing the matters of the following subparagraphs to the authorized administrator: Provided, That in case of an agro-industrial complex, a plan for sale in lots and lease with papers containing the matters of the following subparagraphs shall be submitted to the Mayor/Do governor for approval:
1. A basic management program for the industrial complex;
2. The area, facilities, etc. that are desired for entrustment;
3. The contents of the trust business regarding sale and lease; and
4. Other agreed matters regarding trust.
(2) The provisions of paragraph (1) shall apply mutatis mutandis to the case where alteration to what was already submitted pursuant to the provisions of the same paragraph or alteration to approved matters is intended
(3) Where the administrative agency is entrusted with the business of sale in lots and lease by the business operator of the industrial complex development project pursuant to the provisions of Article 36 (1) of the Act, it may receive an entrustment fee after consultation with the business operator. <Newly Inserted by Presidential Decree No. 15432, Jul. 10, 1997>
[This Article Wholly Amended by Presidential Decree No. 15123, Jul. 19, 1996]

Article 46 Deleted.
<by Presidential Decree No. 16532, Aug. 9, 1999>

Article 47 Deleted.
<by Presidential Decree No. 15432, Jul. 10, 1997>

Article 48 (Approval of Collection of Common Expenses of Joint Facilities)
(1) When the administrative agency seeks approval for collection of common expenses pursuant to the provisions of Article 37 (2) of the Act, it shall submit an application for approval complete with the matters of the following subparagraphs to the authorized administrator (Mayor/Do governor, in case of an agro-industrial complex). The same shall apply to the alteration of matters of approval as intended: <Amended by Presidential Decree No. 13870, Mar. 6, 1993; Presidential Decree No. 14315, Jul. 4, 1994; Presidential Decree No. 15123, Jul. 19, 1996>
1. The present status of installation and use of joint facilities;
2. A detailed cost calculation of installation, maintenance and repair of joint facilities; and
3. A present status of maintenance and repair.
(2) The administrative agency shall, pursuant to the provisions of Article 37 (2) of the Act, collect common expenses for installation, maintenance and repair of joint facilities according to a rate fixed separately for occupant enterprise and supporting agencies after consultation with occupant enterprises and supporting agencies. <Amended by Presidential Decree No. 15123, Jul. 19, 1996; Presidential Decree No. 15432, Jul. 10, 1997>
(3) The administrative agency may collect common expenses monthly or quarterly in accordance with the operational status. <Amended by Presidential Decree No. 15123, Jul. 19, 1996>

Article 48-2 (Standards, etc. of Occupancy)
(1) When the administrative agency intends to sign an occupancy contract pursuant to the provisions of Article 38 (1) and (3) of the Act, it shall fix the industry to be induced, the qualifications for occupancy, the priority order of occupancy, etc. and announce for 15 days or more: Provided, That the business prescribed by the Ordinance of the Ministry of Commerce, Industry and Energy from among the businesses whose priority occupancy in the industrial complex is necessary for the reasonable arrangement of environment polluting business, promotion of the high-tech industry, promotion of foreign investment, etc., this shall not apply. <Amended by Presidential Decree No. 13870, Mar. 6, 1993; Presidential Decree No. 14822, Dec. 7, 1995; Presidential Decree No. 15123, Jul. 19, 1996; Presidential Decree No. 16532, Aug. 9, 1999>
(2) The provisions of paragraph (1) shall apply mutatis mutandis to the case of transfer of industrial site, factory, etc. to another occupant enterprise or supporting agency pursuant to the provisions of the proviso to Article 39 (1) of the Act and the proviso to Article 43 (1) of the Act. <Amended by Presidential Decree No. 14315, Jul. 4, 1994; Presidential Decree No. 15123, Jul. 19, 1996>
(3) Cases where an occupancy contract may not be signed pursuant to the provisions of the proviso to Article 38 (1) of the Act (including the case where this is applied mutatis mutandis pursuant to subparagraph (3) of the same Article) shall be as follows: <Newly Inserted by Presidential Decree No. 14315, Jul. 4, 1994; Presidential Decree No. 15123, Jul. 19, 1996; Presidential Decree No. 15432, Jul. 10, 1997; Presidential Decree No. 16532, Aug. 9, 1999; Presidential Decree No. 18039, Jun 30, 2003; Presidential Decree No. 18847, May 26, 2005>
1. Where a person who shall occupy the industrial complex concerned pursuant to the provisions of Article 16 (3) of the Industrial Sites and Development Act occupies it after an executing industrial complex development project;
2. Where a public agency occupies it so as to provide public services to occupant enterprises;
3. Where occupying it as a facility pursuant to the provisions of Article 36-4 (2) in the apartment-type factory built in the industrial facilities zone pursuant to the provisions of Article 33 (5) of the Act;
4. Where an employee convenience facility is run in the subsidiary facility of a factory built in the industrial facilities zone pursuant to the provisions of Article 33 (5) of the Act;
5. Where occupancy takes place according to an occupancy contract following lease or purchase in lots of a site or building (limited to the one in the supporting facilities zone pursuant to the provisions of Article 33 (5) of the Act) belonging to a person who has contracted with the administrative agency; and
6. Where occupying it according to a lease contract with administrative agency.
(4) When the administrative agency intends to conclude an occupancy contract pursuant to the provisions of Article 38 (1) through (3) of the Act, it shall be compatible with the Act, this Decree, other Acts and subordinate statutes and the basic management program of the industrial complex concerned. <Newly Inserted by Presidential Decree No. 16532, Aug. 9, 1999>
[This Article Newly Inserted by Presidential Decree No. 13731, Sep. 26, 1992]

Article 48-3 (Occupancy Contract, etc. of Leasing Business Operator)
(1) Deleted. <by Presidential Decree No. 16532, Aug. 9, 1999>
(2) A person who intends to conclude an occupancy contract with the administrative agency in order to operate a leasing business of industrial site, factory, etc. pursuant to the provisions of Article 38-2 of the Act (hereinafter referred to as a "leasing business operator") shall submit a leasing business plan with the matters of the following subparagraphs stated on it: <Amended by Presidential Decree No. 16532, Aug. 9, 1999>
1. The name of the leasing business operator;
2. Details of land and facilities to be leased;
3. The duration period of lease and matters regarding extension thereof;
4. Matters regarding the disposition of industrial sites (including buildings where there are any buildings) where all or part of the leasing business is closed;
5. Deleted; <by Presidential Decree No. 16532, Aug. 9, 1999>
6. The business type and scale to be induced (limited to the case where two or more sites, factories, etc in the industrial complex are leased); and
7. A plan for constructing a building (limited to the case where construction of a building and lease thereof together are intended).
(3) Deleted. <by Presidential Decree No. 16532, Aug. 9, 1999>
(4) Where the leasing business operator leases an industrial site, factory, etc., it shall correspond with the basic management program of the industrial complex concerned, and the occupancy contract pursuant to the provisions of paragraph (2). <Amended by Presidential Decree No. 16532, Aug. 9, 1999; Presidential Decree No. 18039, Jun 30, 2003>
(5) The lessee who occupies the industrial site and building leased by the leasing business operator shall conclude an occupancy contract pursuant to the provisions of Article 38 of the Act with the administrative agency.
(6) Where the occupant enterprise or supporting agency intends to lease part of the industrial site, factory, etc. while operating the business pursuant to the occupancy contract, it shall submit papers prescribed by the Ordinance of the Ministry of Commerce, Industry and Energy to the administrative agency. <Newly Inserted by Presidential Decree No. 16532, Aug. 9, 1999; Presidential Decree No. 18039, Jun 30, 2003>
[This Article Newly Inserted by Presidential Decree No. 15123, Jul. 19, 1996]

Article 48-4 (Standards, etc. of Lease)
(1) Deleted. <by Presidential Decree No. 16532, Aug. 9, 1999>
(2) The period of lease contract of an industrial site, factory, etc. shall be five years or more (where lessee has requested three years or more). <Amended by Presidential Decree No. 16532, Aug. 9, 1999; Presidential Decree No. 18039, Jun 30, 2003>
(3) Where the leasing business operator intends to transfer the industrial site, factory, etc. due to bankruptcy or other financial reasons, the lessee concerned, administrative agency, or person named by the administrative agency shall be given priority in the transfer. <Amended by Presidential Decree No. 16532, Aug. 9, 1999>
(4) The Minister of Commerce, Industry and Energy shall prescribe a form which shall be the standard of lease contract, and may recommend leasing business operators to use it, <Newly Inserted by Presidential Decree No. 15432, Jul. 19, 1997; Presidential Decree No. 16532, Aug. 9, 1999>
(5) Other matters necessary for the management of leasing business shall be as stipulated by the management guidelines or basic management program of the industrial complex.
[This Article Newly Inserted by Presidential Decree No. 15123, Jul. 19, 1996]

Article 49 (Restriction on Disposition of Industrial Site)
(1) The term "that is prescribed by the Presidential Decree" as referred to in Article 39 (1) and paragraph (2) of the same Article shall mean that the occupant enterprise transfers ownership of industrial site, factory, etc., bought in lots (referring to possessing 50/100 or more of the total investment or issued stocks in case of a legal person; the same shall apply hereinafter): Provided, That the case falling under any of the following subparagraphs is excluded: <Newly Inserted by Presidential Decree No. 16532, Aug. 9, 1999; Presidential Decree No. 18039, Jun 30, 2003>
1. Where the ownership is transferred because of inheritance, division and merger of legal person; or
2. Cases of transfer of ownership by investment in kind where an occupant enterprise invests in kind in a legal person, thereby owning 50/100 or more of the total investment or issued stocks.
(2) When the occupant enterprise intends to dispose of an industrial site, factory, etc. pursuant to the provisions of Articles 39 (1) and 43 (1) of the Act, he shall submit an application for disposition with the papers prescribed by the Ordinance of the Ministry of Commerce, Industry and Energy to the administrative agency. <Amended by Presidential Decree No. 14315, Jul. 4, 1994; Presidential Decree No. 14822, Dec. 7, 1995; Presidential Decree No. 15123, Jul. 19, 1996; Presidential Decree No. 16532, Aug. 9, 1999>
(3) When the administrative agency that has received the application for disposition pursuant to the provisions of paragraph (1) cannot purchase it, it shall select a person to transfer it pursuant to the provisions of Article 39 (1) of the Act within the period prescribed by the Ordinance of the Ministry of Commerce, Industry and Energy, and inform the applicant for disposition of it: Provided, That where it falls under any of the following subparagraphs, the person whom the applicant for disposition has recommended may be selected as the object person of transfer: <Amended by Presidential Decree No. 13870, Mar. 6, 1993; Presidential Decree No. 14315, Jul. 4, 1994; Presidential Decree No. 14822, Dec. 7, 1995; Presidential Decree No. 15123, Jul. 19, 1996; Presidential Decree No. 15432, Jul. 10, 1997; Presidential Decree No. 16532, Aug. 9, 1999>
1. Where disposition was applied because of restructuring of the applicant of disposition;
2. Where establishment of a factory that constitutes a series of manufacturing processes adjacent to the factory of the applicant of disposition is necessary;
3. Where the object person to whom it is sought to be sold in lots by the administrative agency is determined to be inappropriate as industrial sites are not sold in lots, etc.; or
4. Where the administrative agency fails to select the object person to whom to sell in lots within the period prescribed by the Ordinance of the Ministry of Commerce, Industry and Energy without justifiable reason.
(4) The applicant for disposition who has been informed pursuant to the provisions of the main sentence of paragraph (3) shall transfer the industrial site, factory, etc. pursuant to the provisions of paragraph (2) within the period prescribed by the Ordinance of the Ministry of Commerce, Industry and Energy from the date he has been informed. <Amended by Presidential Decree No. 13870, Mar. 6, 1993; Presidential Decree No. 14315, Jul. 4, 1994; Presidential Decree No. 14822, Dec. 7, 1995; Presidential Decree No. 15123, Jul. 19, 1996; Presidential Decree No. 16532, Aug. 9, 1999>
(5) When the administrative agency intends to select an object person to transfer to pursuant to the provisions of the main sentence of paragraph (3), he shall announce the matters of the following subparagraphs in advance and receive an application for purchase from the applicants for occupancy: <Amended by Presidential Decree No. Presidential Decree No. 14822, Dec. 7, 1995; Presidential Decree No. 16532, Aug. 9, 1999>
1. An indication of the article to be sold;
2. The sale price and method of payment;
3. The settlement date;
4. Qualifications of the buyer for occupancy;
5. That the sales contract shall be concluded by the seller and buyer, and the buyer shall conclude an occupancy contract with the administrative agency; and
6. Other matters that the administrative agency requires.

Article 49-2 (Related Agencies)
The term "agencies as prescribed by the Presidential Decree" as referred to in Article 39 (1) 4 of the Act shall mean the agencies of the following subparagraphs: <Amended by Presidential Decree No. 15432, Jul. 10, 1997; Presidential Decree No. 15511, Nov. 19, 1997; Presidential Decree No. 16709, Feb. 14, 2000; Presidential Decree No. 17791, Dec. 5, 2002; Presidential Decree No. 18847, May 26, 2005>
1. The Korea Credit Guarantee Fund pursuant to the Credit Guarantee Fund Act;
2. The Korea Technology Credit Guarantee Fund pursuant to the Korea Technology Credit Guarantee Fund Act;
3. The Korea Asset Management Corporation pursuant to the Act on the Efficient Disposal of Non-Performing Assets, etc. of Financial Institutions and the Establishment of Korea Asset Management Corporation;
4. The national Agricultural Cooperative Federation pursuant to the Agricultural Cooperatives Act;
5. Local public corporations established pursuant to the Local Public Enterprises Act for the purpose of land development projects; and
6. Agencies that the administrative agency deems specifically necessary for the management of the industrial complex concerned.
[This Article Newly Inserted by Presidential Decree No. 14315, Jul. 4, 1994]

Article 50 (Report on Disposition of Factory, etc.)
(1) When an occupant enterprise intends to dispose of an industrial site, factory, etc. pursuant to the provisions of Article 39 (2) of the Act, it shall submit a disposition report with the papers prescribed by the Ordinance of the Ministry of Commerce, Industry and Energy to the administrative agency. <Amended by Presidential Decree No. 13870, Mar. 6, 1993; Presidential Decree No. 14315, Jul. 4, 1994; Presidential Decree No. 14822, Dec. 7, 1995; Presidential Decree No. 15123, Jul. 19, 1996; Presidential Decree No. 15432, Jul. 10, 1997; Presidential Decree No. 16532, Aug. 9, 1999>
(2) Deleted. <by Presidential Decree No. 16532, Aug. 9, 1999>

Article 51 (Collection of Costs)
(1) When the administrative agency transfers an industrial site, factory, etc. to a buyer enterprise pursuant to the provisions of Article 39 (3) of the Act, it may recover the costs listed in the following subparagraphs to the extent of actual costs from the transferee enterprise: Provided, That the commission fee pursuant to the provisions of subparagraph 3 shall be limited to the case where the industrial site, factory, etc. that have been applied for purchase transfer to the buyer enterprise:
1. Surveying fees;
2. Expenses for public announcement of sale; and
3. Commission fees determined and announced by the Minister of Commerce, Industry and Energy;
(2) The expenses necessary for the selection of transferee pursuant to the provisions of paragraph (1) shall be collected when the industrial site, factory, etc. are transferred: Provided, That where the administrative agency acknowledges, the time of collection may be fixed separately.
[This Article Newly Inserted by Presidential Decree No. 18039, Jun. 30, 2003]

Article 52 (Interest and Cost)
The interest and cost pursuant to the provisions of Article 39 (4) of the Act shall be as listed in the following subparagraphs: <Amended by Presidential Decree No. 14315, Jul. 4, 1994; Presidential Decree No. 15123, Jul. 19, 1996>
1. The amount calculated by multiplying the acquisition price of the industrial site to be transferred by the manufacturers' price index during the period from the acquisition date until the date of transfer;
2. Deleted; and <by Presidential Decree No. 16532, Aug. 9, 1999>
3. Costs incurred for maintenance, conservation, or improvement of the industrial site to be transferred.

Article 52-2 (Sale Price, etc. of Industrial Site of Relevant Agency)
(1) When the relevant agency has purchased an industrial site, factory, etc. pursuant to the provisions of Articles 39 (1), 43 (1) and (2) of the Act, it shall report to the administrative agency within one month from the date of purchase. <Amended by Presidential Decree No. 15123, Jul. 19, 1996>
(2) Where the relevant agency has purchased an industrial site, factory, etc. pursuant to the provisions of Articles 39 (1), 43 (1) and (2) of the Act, it shall, within one year from the date of purchase, transfer to the occupant enterprise, supporting agency or person qualified to occupy the industrial complex concerned pursuant to the provisions of Article 6 of the Act. <Amended by Presidential Decree No. 15123, Jul. 19, 1996>
(3) The sale price of the industrial site that has been purchased by the relevant agency shall be the amount gained by adding the purchase price, interest and costs pursuant to the provisions of Article 52 (hereinafter referred to as the "price of purchase, etc."), and the transfer price of the factory, etc. shall be the amount determined in consideration of the appraised market value by appraisal business operator pursuant to the Public Notice of Values and Appraisal of Lands, etc. Act: Provided, That the market price at the time of sale (referring to the price of appraisal and assessment performed by an appraisal business operator pursuant to the provisions of Article 2 of the Public Notice of Values and Appraisal of Lands, etc. Act; the same shall apply hereinafter) is lower than the price of purchase, etc., the market value may be the sale price. <Amended by Presidential Decree No. 16532, Aug. 9, 1999; Presidential Decree No. 18847, May 26, 2005>
(4) When the relevant agency intends to transfer the industrial site, factory, etc. pursuant to the provisions of paragraph (2), it shall consult with the administrative agency in advance. <Amended by Presidential Decree No. 15123, Jul. 19, 1996>
(5) The relevant agency may lease or use the industrial site, or factory, etc. which has been purchased pursuant to the provisions of paragraph (1) within the extent of use compatible with the basic management program with the consent of the administrative agency until its transfer pursuant to the provisions of paragraph (2). <Newly Inserted by Presidential Decree No. 16532, Aug. 9, 1999>
[This Article Newly Inserted by Presidential Decree No. 14315, Jul. 4, 1994]

Article 52-3 (Report of Disposition of Industrial Site, etc. Acquired through Auction, etc.)
The provisions of Article 50 shall apply mutatis mutandis to the transfer of industrial site, factory, etc. pursuant to the provisions of Article 40 (2) or 43 (2) of the Act.
[This Article Newly Inserted by Presidential Decree No. 18039, Jun. 30, 2003]

Article 53 (Measures against Use of Industrial Site outside Designated Usage)
(1) In redeeming part of industrial site which is not used according to the usage prescribed by the occupancy contract pursuant to the provisions of Article 41 of the Act, the administrative agency shall issue a order for rectification, specifying suitable period to the occupant enterprise or supporting agency. Where the occupant enterprise or supporting agency fails to fulfill such order for rectification, it shall execute the redemption. <Amended by Presidential Decree No. 16532, Aug. 9, 1999>
(2) The administrative agency shall clearly describe the process in the occupancy contract in order to redeem the industrial site pursuant to the provisions of Article 41 of the Act. <Amended by Presidential Decree No. 15123, Jul. 19, 1996>
(3) Deleted. <by Presidential Decree No. 16532, Aug. 9, 1999>

Article 54 (Corrective Period)
The term "period prescribed by the Presidential Decree" referred to in Article 42 (1) of the Act shall be six months.

Article 55 (Termination Notice of Occupancy Contract)
The administrative agency shall inform the agencies which were permitted, authorized, licensed or registered pursuant to the Act and subordinate statutes regarding the business when it has terminated the occupancy contract pursuant to the provisions of Article 42 (1) of the Act.

Article 56 (Treatment of Unfinished Business After Termination of Occupancy Contract)
(1) The term "business as prescribed by the Presidential Decree" as referred to in Article 42 (2) of the Act shall mean manufacture, processing, stevedoring, transportation, storage, and import and export business of the merchandise whose contract had been already concluded when the occupancy contract was terminated.
(2) The unfinished business pursuant to the provisions of Article 42 (2) of the Act shall be treated within 3 months: Provided, That where the administrative agency acknowledges it as unavoidable, the period may be extended.
[This Article Wholly Amended by Presidential Decree No. 16532, Aug. 9, 1999]

Article 57 (Support Services to Resident Enterprises)
The term "support services prescribed by the Presidential Decree" as referred to in Article 44 (1) of the Act shall mean the businesses of the following subparagraphs:
1. Services regarding improvement of employee welfare, such as supply of apartment housing to employees;
2. Services of water supply, the prevention of industrial disasters and prevention of environmental pollution;
3. Services of education and training;
4. Services incidental to exhibition centers;
5. Services of joint sale of goods manufactured by the occupant enterprises and purchasing businesses; and
6. Other services for the promotion of export and improvement in productivity.

Article 58 (Safety Supervision, etc. of Industrial Complexes)
(1) When the administrative agency intends to guide the occupant enterprises regarding safety supervision, pollution control, environmental management, etc. pursuant to the provisions of Article 45 of the Act, it shall set up and execute safety supervision plan involving the matters of the following subparagraphs: <Amended by Presidential Decree No. 15123, Jul. 19, 1996; Presidential Decree No. 18039, Jun. 30, 2003>
1. Deleted; <by Presidential Decree No. 18039, Jun. 30, 2003>
2. Matters regarding supervision of safety for dangerous facilities;
3. Matters regarding the prevention of pollution
4. Deleted; and <by Presidential Decree No. 18039, Jun. 30, 2003>
5. Matters regarding cooperation with relevant public administration agencies regarding subparagraphs 2 and 3.
(2) The administrative agency may guide the occupant enterprises in the matters of the following subparagraphs pursuant to the provisions of Article 45 of the Act: Provided, That in guiding in supervision of safety, pollution control, environmental management, etc. or if necessary, it shall request the head of the relevant public agencies to cooperate in the correction thereof: <Amended by Presidential Decree No. 15123, Jul. 19, 1996; Presidential Decree No. 18039, Jun. 30, 2003>
1. Matters regarding safety supervision and guarding of factory facilities and factory workshops;
2. Matters regarding management, such as installation and checkup of facilities for the prevention of pollution;
3. Matters regarding facilities for the improvement of employee welfare;
4. Matters regarding the improvement of factory environment, such as the creation of green tracts, etc.; and
5. Matters necessary for supervision of safety for the industrial complexes other than those in subparagraphs 1 through 4.
(3) Standards of the subparagraphs of paragraph (2) shall be prescribed by the Ordinance of the Ministry of Commerce, Industry and Energy. <Amended by Presidential Decree No. 13870, Mar. 6, 1993; Presidential Decree No. 14822, Dec. 7, 1995; Presidential Decree No. 16532, Aug. 9, 1999>

Article 58-2 (Drawing-up Programs for Enhancing Structures of Industrial Complexes)
(1) The program for enhancing structures of industrial complexes pursuant to the provisions of Article 45-2 (1) of the Act (hereinafter referred to as a " program for structural enhancement") shall harmonize with the plans of the following subparagraphs:
1. A basic program for developing industrial clusters; and
2. Plans for development of the regional economy.
(2) The Ministry of Commerce, Industry and Energy, the Mayor/Do governor and the head of Si/Gun/Gu may support the administrative agency that formulates and executes the program for structural enhancement with necessary funding, etc.
(3) The term "other matters prescribed by the Presidential Decree" as referred to in Article 45-2 (2) 5 of the Act means the matters of the following subparagraphs:
1. Matters regarding industrial cluster infrastructure facilities and industrial infrastructure facilities;
2. Matters regarding inducement and connection of education institutions and research institutions;
3. Matters regarding plans for fund raising;
4. Matters regarding plans for business execution; and
5. Other matters regarding industrial cluster development.
[This Article Wholly Amended by Presidential Decree No. 18039, Jun. 30, 2003]

Article 58-3 (Business of Korea Industrial Complex Corporation)
The term "other business prescribed by the Presidential Decree" referred to in Article 45-7 (1) 10 of the Act means the matters of the following subparagraphs: <Amended by Presidential Decree No. 15967, Dec. 31, 1998; Presidential Decree No. 16532, Aug. 9, 1999; Presidential Decree No. 18039, Jun. 30, 2003>
1. The business of industrial cluster development and local industry development;
2. The business of joint distribution foundation building of industrial complexes;
3. The business of exchange and cooperation with overseas industrial clusters;
4. The business of promotion of intermediation and utilization of industrial complexes, factories, etc. in the industrial complex;
5. The business of job placement and other smooth supply and demand of manpower for occupant enterprises in the industrial complex;
6. The business regarding the operation of day-care centers;
7. The business regarding the raising and management of funding, and investment for assistance to industrial complexes and occupant enterprises;
8. The business regarding the acquisition and supply of land and the lease of facilities;
9. The business regarding the operation of all kinds of supporting facilities, such as exhibition centers, conference centers, etc. for the improvement of interchange between occupant enterprises and employees, and the convenience of foreign buyers;
10. The business of the restructuring and normalization of the operation of occupant enterprises;
11. The business entrusted by the Minister of Commerce, Industry and Energy; and
12. The business corresponding to the businesses of subparagraphs 1 through 11, and approved by the Minister of Commerce, Industry and Energy.
[This Article Wholly Amended by Presidential Decree No. 15432, Jul. 10, 1997]




Article 58-4 (Cooperation, etc. with Local Governments)
(1) Matters of cooperation between the Korean Industrial Complex Corporation (hereinafter referred to as the Corporation ) pursuant to the provisions of Article 45-3 of the Act and the local governments and relevant agencies pursuant to the provisions of Article 45-7 (5) of the Act are the matters of the following subparagraphs: <Amended by Presidential Decree No. 16532, Aug. 9, 1999>
1. Support to the procedures of all kinds of authorization and permission related to factory establishment among the support to factory establishment business pursuant to the provisions of Article 45-7 (1) 7 of the Act and the entrustment of support business;
2. The entrustment of sites and compensation for loss following promotion of businesses pursuant to the provisions of Article 45-7 (1) 2, 3 and 5 of the Act, support to installation of infrastructure facilities, support for procedures of all kinds of authorization and permission; and
3. Other matters acknowledged as necessary for the smooth promotion of businesses pursuant to the subparagraphs of Article 45-7 (1) of the Act and the subparagraphs of Article 58-3 of the Act.
(2) The administrative agency may request the local governments or relevant agencies to inspect documents or copies in the provision of support, etc. under the subparagraphs of paragraph (1). <Newly Inserted by Presidential Decree No. 18039, Jun. 30, 2003>
[This Article Newly Inserted by Presidential Decree No. 15432, Jul. 10, 1997]

Article 58-5 (Guidance and Supervision of Business)
(1) The Minister of Commerce, Industry and Energy may, pursuant to the provisions of Article 45-11 of the Act, cause the Corporation to report on business, accounting and property, or cause public officials under his control to inspect books, papers and other items of the Corporation. <Amended by Presidential Decree No. 16532, Aug. 9, 1999>
(2) The public officials who conduct the inspection pursuant to the provisions of paragraph (1) shall display a certificate to the relevant person.
[This Article Newly Inserted by Presidential Decree No. 15432, Jul. 10, 1997]

Article 59 (Commissioning and Entrusting of Authority)
(1) The Minister of Commerce, Industry and Energy (where the authority of management has been entrusted pursuant to the provisions of paragraph (4), this includes the entrusted head of the central administration agency) shall, pursuant to the provisions of Article 51 of the Act, commission the authority for the imposition and collection of fines for negligence on occupant enterprises or supporting agencies in the national industrial complex among the disposition of fines for negligence pursuant to the provisions of Article 55 (1) 1 through 5 of the Act, acceptance of objections and reports to court shall be commissioned to the Mayor/Do governor: <Amended by Presidential Decree No. 15432, Jul. 10, 1997; Presidential Decree No. 15598, Dec. 31, 1997; Presidential Decree No. 16532, Aug. 9, 1999; Presidential Decree No. 18039, Jun. 30, 2003>






(2) Deleted. <by Presidential Decree No. 18039, Jun. 30, 2003>
(3) The Minister of Commerce, Industry and Energy shall commission the management business pursuant to the provisions of subparagraph 8 of Article 2 of the Act regarding national industrial complexes and exclusive complexes for foreign enterprises, besides the cases specially prescribed by the provisions of paragraph (4) or other Acts and subordinate statutes pursuant to the provisions of Article 31 of the Act. <Amended by Presidential Decree No. 16532, Aug. 9, 1999>
(4) The Minister of Commerce, Industry and Energy may entrust the right and authority to the head of the central administration agency where it is acknowledged as necessary that he manage it directly when the head of the central administration has made a request concerning the national industrial complex designated according to the request of the central administration agency pursuant to the provisions of Article 6 (2) of the Industrial Sites and Development Act. <Amended by Presidential Decree No. 16532, Aug. 9, 1999; Presidential Decree No. 18847, May 26, 2005>
(5) The Minister of Commerce, Industry and Energy shall, pursuant to the provisions of Article 51 of the Act, entrust the business of sale and lease of State land in the national industrial complex pursuant to the provisions of Article 34 of the Act to the Corporation which has been commissioned or entrusted with the management business of the national industrial complex, and the business of sale and lease of State land in the local industrial complex shall be commissioned to the Mayor/Do governor. <Amended by Presidential Decree No. 15432, Jul. 10, 1997; Presidential Decree No. 16532, Aug. 9, 1999>
[This Article Wholly Amended by Presidential Decree No. 15123, Jul. 19, 1996]

Article 59-2 Deleted.
<by Presidential Decree No. 15598, Dec. 31, 1997>

Article 60 (Imposition and Collection of Fine for Negligence)
(1) The Minister of Commerce, Industry and Energy (referring to the Mayor/Do governor who has been commissioned with the authority where the authority was commissioned pursuant to the provisions of Article 59 (1); hereafter the same shall apply in this Article), the Mayor/Do governor or the head of Si/Gun/Gu shall, when he imposes a fine for negligence pursuant to the provisions of Article 55 (3) of the Act, inspect and confirm the violation concerned, clearly state the violation and amount of fine for negligence, and inform the person liable for disposition of fine for negligence in writing. <Amended by Presidential Decree No. 16532, Aug. 9, 1999; Presidential Decree No. 18039, Jun. 30, 2003>
(2) When the Minister of Commerce, Industry and Energy, the Mayor/Do governor or the head of Si/Gun/Gu intends to impose a fine for negligence pursuant to the provisions of paragraph (1), he shall fix a period of 15 days or more and give the person liable for the fine for negligence an opportunity to state his opinion verbally or in writing (including by an electronic document). In this case, if there is no statement of opinion within the fixed period, it is deemed that there is no opinion. <Amended by Presidential Decree No. 14315, Jul. 4, 1994; Presidential Decree No. 14822, Dec. 7, 1995; Presidential Decree No. 16532, Aug. 9, 1999; Presidential Decree No. 18039, Jun. 30, 2003; Presidential Decree No. 18312, Mar .17, 2004>
(3) The amount of fine for negligence by type shall be according to the attached Table 6: Provided, That the Minister of Commerce, Industry and Energy, the Mayor/Do governor or the head of Si/Gun/Gu may raise or reduce it within the scope of 1/2 of the amount in consideration of the degree and frequency of the violation concerned. In this case, the total fine for negligence when it is raised, shall not exceed the amount prescribed in the provisions of Article 55 (1) and (2) of the Act. <Amended by Presidential Decree No. 14315, Jul. 4, 1994; Presidential Decree No. 14822, Dec. 7, 1995; Presidential Decree No. 16532, Aug. 9, 1999; Presidential Decree No. 18039, Jun. 30, 2003>
(4) Procedures for collection of fines for negligence shall be prescribed by the Ordinance of the Ministry of Commerce, Industry and Energy. <Amended by Presidential Decree No. 13870, Mar .6, 1993; Presidential Decree No. 14822, Dec. 7, 1995; Presidential Decree No. 16532, Aug. 9, 1999>
[This Article Newly Inserted by Presidential Decree No. 13731, Sep. 26, 1992]



ADDENDA


Article 1 (Enforcement Date)
This Decree shall enter into force on January 14, 1991.

Article 2 (Abrogation of Other Acts and Subordinate Statutes)
The Enforcement Decree of the Industrial Placement Act and the Enforcement Decree of the Industrial Complex Management Act shall be abrogated respectively.

Article 3 (Transitional Measures following Enlargement of Limited Readjustment Zone)
Those who have reported factory establishment pursuant to the provisions of Article 7 of the former Industrial Placement Act before the enforcement of this Decree in a zone added to the limited readjustment zone pursuant to this Decree, and have received certificate of report of factory establishment pursuant to the provisions of Article 8 (2) of the former Enforcement Decree of the Industrial Placement Act, or those who have received permission of construction or permission of change of land shape and quality pursuant to the Building Act or other Acts and subordinate statutes shall be deemed to have received permission regarding establishment of the factory concerned. pursuant to the provisions of Article 20 (2) of the Act.

Article 4 (Special Cases regarding Construction and Enlargement of Factory for Publication of Daily Newspaper in Relocation Promotion Zone and Limited Readjustment Zone)
Where a factory for the publication of daily newspaper registered pursuant to the provisions of Article 7 of the Registration, etc. of Periodicals Act at the time of enforcement of this Decree is situated in the Relocation Promotion Zone or Limited Readjustment Zone, construction or enlargement shall be possible notwithstanding the provisions of Article 26 or 27.

Article 5 (Transitional Measures regarding Industrial Complex, etc.)
Administrative agencies by industrial complex prescribed in the attached Table of the former Enforcement Decree of the Industrial Complex Management Act shall be deemed to have been commissioned or entrusted with the management business of industrial complex pursuant to the provisions of Article 5 of this Decree.

Article 6 Omitted.






Article 7 (Relations with Other Acts and Subordinate Statutes)
Where the former Enforcement Decree of the Industrial Placement Act, the Enforcement Decree of the Industrial Complex Management Act or provisions thereof is cited in other Acts and subordinate statutes at the time this Enforcement Decree enters into force, those Acts and subordinate statutes shall be deemed as citing this Enforcement Decree or the relevant provisions of this Enforcement Decree in case where the relevant provisions are included in this Enforcement Decree.



ADDENDA <Presidential Decree No. 13303, Feb. 2, 1991>


Article 1 (Enforcement Date)
This Decree shall enter into force on February. 2, 1991.

Articles 2 through 6 Omitted.










ADDENDA <Presidential Decree No. 13353, Apr. 18, 1991>


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

Article 2 Omitted.








ADDENDA <Presidential Decree No. 13563, Dec. 31, 1991>


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

Article 2 Omitted.








ADDENDA <Presidential Decree No. 13731, Sep. 26, 1992>


(1) (Enforcement Date) This Decree shall enter into force on the date of its promulgation.
(2) (Special Cases regarding Construction and Enlargement of Factory in Limited Readjustment Zone) Any factory which has been authorized or permitted pursuant to the relevant Act and subordinate statute for the establishment of a factory before the enforcement date of the amended Enforcement Decree of the Industrial Placement Act, the Presidential Decree No. 11722 (Jul. 6, 1985), in a zone admitted to the limited readjustment zone pursuant to the provisions of Article 3 of the same Decree, or which has received certificate of report of factory establishment pursuant to Article 7 of the former Industrial Placement Act may construct or enlarge within the period prescribed in Article 12 (3) after the enforcement of this Decree notwithstanding the provisions of Article 27.





ADDENDA <Presidential Decree No. 13870, Mar. 6, 1993>


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

Articles 2 through 4 Omitted.












ADDENDA <Presidential Decree No. 13922, Jul. 1, 1993>


Article 1 (Enforcement Date)
This Decree shall enter into force on July 1, 1993.

Articles 2 through 4 Omitted.








ADDENDA <Presidential Decree No. 14315, Jul. 4, 1994>


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

Article 2 (Transitional Measures regarding Permission, etc. of Construction, Enlargement, etc. of Factory)
Any person who has received permission of construction, enlargement or transfer of factory before the enforcement of this Decree in a zone admitted into the growth administration zone pursuant to this Decree from the former limited readjustment zone shall be deemed to have received permission of construction, enlargement or transfer of factory in the growth administration zone pursuant to this Decree.

Article 3 (Transitional Measures regarding Factories in Restricted Population Zone)
(1) The site in excess of standard of an existing factory in the restricted population zone where new enlargement is limited following the enforcement of the amended Act of the Industrial Placement and Factory Construction Act, Act No. 4720, and the amended Enforcement Decree of the Industrial Placement and Factory Construction Act, Presidential Decree No. 14315, at the time of the enforcement of this Decree shall be deemed the case as prescribed by the proviso of Article 11 (3) of the Act and the Presidential Decree pursuant to Article 15 of this Decree for 3 years from the enforcement of this Decree.
(2) In case of an existing factory (referring to a factory registered pursuant to Article 16 of the Act at the time of enforcement of this Decree. the same shall apply hereinafter.) in a zone newly admitted into the restricted population zone pursuant to this Decree in the former limited readjustment zone, enlargement of factory falling under any of the following subparagraphs shall be possible: <Amended by Act No. 14822, Dec. 7, 1995>
1.Enlargement according to the content of permission, authorization, approval, report in the case where the business that received permission, authorization, approval, or reported, which accompanied enlargement of factory pursuant to the provisions of the relevant Act and subordinate statutes;
2.Enlargement in the zone concerned, in case of factory in the oil storage and oil transport facility zone that received urban planning facility decision pursuant to the provisions of Article 16 of the Urban Planning Act before the enforcement of this Decree;
3.Enlargement within the extent of permission, license, etc. or report in case where it has received permission, license, etc. or reported regarding forest damage, conversion of farmland, change of form and quality of land before the enforcement of this Decree for factory enlargement;
4.Enlargement according to the condition where factory enlargement was permitted before the enforcement of this Decree on condition that the factory enlargement shall be executed; and
5.Enlargement necessary for the manufacture of express train for the person who has contracted an express train supply contract with the government or government-contributed agency before the enforcement of this Decree.
(3) The factory being the object of inducement of occupancy in the apartment type factory that received permission of factory establishment before the enforcement of this Decree in a zone admitted into the restricted population zone pursuant to this Decree among the formerly relocation promotion zones and limited readjustment zones shall be deemed as a factory where construction and enlargement in the apartment-type factory are permitted pursuant to the provisions of subparagraph 2 of Article 26.

Article 4 (Transitional Measures regarding Small- and Medium-Sized Enterprise Cooperation Business)
In case of a small- and medium-sized enterprise cooperation project site which has received approval of small- and medium-sized enterprise cooperation practice plan, and executing with the decision of change of national land utilization plan pursuant to the provisions of Article 8 of the Act on the Utilization and Management of National Territory, it shall be deemed a factory that can be constructed within the factory area of 3000 square meters notwithstanding the provisions of Article 27-2.

Article 5 (Special Cases regarding Construction and Enlargement of Factory in the Growth Administration Zone and Environmental Protection Zone)
(1) In case where construction and enlargement of factory have been deliberated on and resolved by the Seoul Metropolitan Area Readjustment Deliberation Committee for the construction and enlargement of factory before the enforcement of this Decree in the growth administration zone and environmental protection zone pursuant to this Decree among the development reservation regions, development inducement regions and environmental protection regions pursuant to the provisions of Article 8 of the Seoul Metropolitan Area Readjustment Planning Act before the enforcement of amended Act of the Seoul Metropolitan Area Readjustment Planning Act, Act No. 4721, construction and enlargement of factory pursuant to above may be possible and the existing factory may be enlarged pursuant to the provisions of Article 16 (1) of the Act on Special Measures for the Deregulation of Corporate Activities and Article 10 of the Enforcement Decree of the same Act notwithstanding the provisions of Articles 27 and 27-2. <Amended by Act No. 14822, Dec. 7, 1995>
(2) Where permission regarding forest damage, conversion of farmland and change of form and nature of land have been received before Jul. 11, 1984 (date of announcement of the basic Seoul Metropolitan Readjustment Plan pursuant to the Seoul Metropolitan Area Readjustment Planning Act) for construction or enlargement of factory in a zone falling under a growth administration zone or an environmental protection zone pursuant to this Decree, or a factory establishment report has been already filed for an existing site, construction or enlargement of factory in the zone concerned according to the permission or report may be possible.

Article 6 (Special Cases regarding Construction, Enlargement or Transfer of Factory according to Basic Programs for Management of Industrial Complexes)
The object factories for occupancy in the industrial complex pursuant to the basic program for management of industrial complex determined and announced by the Minister of Commerce, Industry and Energy pursuant to the provisions of Article 33 of the Act, and the industrial complex management guideline (including the national industrial complex occupancy management guideline announced by the Minister of Commerce, Industry and Energy) pursuant to the provisions of Article 32 of the Act in the national industrial complex designated before the enforcement of this Decree may be able to construct, enlarge or transfer a factory pursuant to the basic program for management of industrial complex, industrial complex management guideline and industrial complex occupancy management guideline notwithstanding the provisions of Articles 26 and 27.

Article 7 Omitted.






ADDENDA <Presidential Decree No. 14438, Dec. 23, 1994>


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

Articles 2 through 5 Omitted.









ADDENDA <Presidential Decree No. 14447, Dec. 23, 1994>


Article 1 (Enforcement Date)
This Decree shall enter into force on the date of its promulgation. <proviso omitted>

Articles 2 through 5 Omitted.









ADDENDA <Presidential Decree No. 14822. Dec. 7, 1995>


(1) (Enforcement Date) This Decree shall enter into force on the date of its promulgation.
(2) (Transitional Measures) That permission which was received regarding construction or enlargement of factory pursuant to the provisions of Article 20 of the Act before the enforcement of this Decree in a zone excluded from the growth administration zone pursuant to the amended provisions of subparagraph 4 of Article 4 is deemed a report which is filed regarding construction or enlargement of factory pursuant to the provisions of Article 13 (1) of the Act.



ADDENDA <Presidential Decree No. 14915, Feb. 15, 1996>


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

Article 2 Omitted.








ADDENDA <Presidential Decree No. 15123, Jul. 19, 1996>


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

Articles 2 (Abrogation of Other Acts and Subordinate Statutes)
Regulation of industrial site policy deliberation committee is abrogated.

Article 3 (Transitional Measures regarding Detailed Use of Existing Factory Facilities Zone)
Factory facilities zone of the industrial complex designated pursuant to the former provisions at the time of enforcement of this Decree shall be deemed as having been designated as factory facilities use pursuant to the amended provisions of Article 43 (1) 1 until the use of the zone concerned is subdivided pursuant to the amended provisions of Article 43 (1) 1.

Articles 4 (Transitional Measures regarding Supporting Agency in Existing Industrial Complex)
To the supporting agency occupying or decided to occupy the supporting facilities zone of industrial complex designated pursuant to the former provisions at the time of enforcement of this Decree, former provisions shall apply notwithstanding the amended provisions of Article 6 (2).



ADDENDA <Presidential Decree No. 15137, Aug. 8, 1996>


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

Article 2 Omitted.







ADDENDA <Presidential Decree No. 15432, Jul. 10, 1997>


(1) (Enforcement Date) This Decree shall enter into force on the date of its promulgation: Provided, That the amended provisions of subparagraph 2 (a) of Article 27-2 and subparagraph 3 (b) of the attached Table 3 shall enter into force on January 1, 1998.
(2) (Applicable Examples regarding Commission Fees) The amended provisions of Article 45 (3) shall apply beginning with the industrial complex whose industrial complex development execution plan pursuant to the Industrial Sites and Development Act is announced for the first time after the enforcement of this Decree.
(3) (Applicable Examples regarding Urban Business Type) Urban business type factory pursuant to the former provisions at the time of enforcement of this Decree shall be deemed as urban type factory pursuant to this Decree.



ADDENDA <Presidential Decree No. 15511, Nov. 19, 1997>


Article 1 (Enforcement Date)
This Decree shall enter into force on November 23, 1997. <Proviso Omitted>

Article 2 through 7 Omitted.












ADDENDUM <Presidential Decree No. 15598, Dec. 31, 1997>


This Decree shall enter into force on January 1, 1998.



ADDENDA <Presidential Decree No. 15650, Feb. 20, 1998>


Article 1 (Enforcement Date)
This Decree shall enter into force on the date of its promulgation. <Proviso Omitted>

Articles 2 and 3 Omitted.






ADDENDA <Presidential Decree No. 15967, Dec. 31, 1998>


Article 1 (Enforcement Date)
This Decree shall enter into force on January 1, 1999.

Articles 2 through 6 Omitted.











ADDENDA <Presidential Decree No. 16043, Dec. 31, 1998>


(1) (Enforcement Date) This Decree shall enter into force on the date of its promulgation.
(2) (Term of Validity) The amended provisions of subparagraph 3 (j) of the attached Table 2 shall be valid until December 31, 2003. <Amended by Presidential Decree No. 17515, Feb. 9, 2002>
(3) (Transitional Measures concerning Construction or Enlargement of Factory with respect to Which Application, etc. for Approval Was Received at Expiration of Term of Validity) The construction or enlargement of a factory falling under any of the following subparagraphs shall be governed by the amended provisions of subparagraph 3 (j) of the attached Table 2. <Amended by Presidential Decree No. 18039, Jun. 30, 2003>
1.Construction or enlargement of factory whose application for approval was received or application for occupancy contract was received at the time of expiration of term of validity of the amended provisions of subparagraph 3 (j) of the attached Table 2; and
2.Construction or enlargement of factory in the industrial complex, which was announced pursuant to the provisions of Article 7-3 of the Industrial Sites and Development Act, and designated pursuant to the provisions of Articles 6, 7 or 7-2 of the same Act for the purpose of inducement of foreigner invested enterprises at the time of expiration of term of validity of the amended provisions of subparagraph 3 (j) of the attached Table 2.



ADDENDA <Presidential Decree No. 16093, Jan. 29, 1999>



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

Articles 2 through 4 Omitted.









ADDENDUM <Presidential Decree No. 16532, Aug. 9, 1999>


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



ADDENDA <Presidential Decree No. 16709, Feb. 14, 2000>


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

Article 2 Omitted.








ADDENDA <Presidential Decree No. 16891, Jul. 1, 2000>


Article 1 (Enforcement Date)
This Decree shall enter into force on July 1, 2000. <Proviso Omitted>

Articles 2 through 13 Omitted.














ADDENDA <Presidential Decree No. 17052, Dec. 29, 2000>


Article 1 (Enforcement Date)
This Decree shall enter into force on January 1, 2001. <Proviso Omitted>

Articles 2 through 6 Omitted.








ADDENDA<Presidential Decree No. 17175, Mar. 27, 2001>


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

Articles 2 and 3 Omitted.









ADDENDUM<Presidential Decree No. 17515, Feb. 9, 2002>


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



ADDENDA <Presidential Decree No. 17791, Dec. 5, 2002>


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

Articles 2 and 3 Omitted.









ADDENDA <Presidential Decree No. 17816, Dec. 26, 2002>


Article 1 (Enforcement Date)
This Decree shall enter into force on January 1, 2003.

Articles 2 through 17 Omitted.
















ADDENDA <Presidential Decree No. 18039, Jun. 30, 2003>


Article 1 (Enforcement Date)
This Decree shall enter into force on July 1, 2003.

Article 2 (Applicable Examples regarding Revocation, etc. of Approval of Establishment, etc. of Factory)
The provisions of subparagraph 3 of Article 19-4 shall apply to a factory which has received approval for establishment, etc. of a factory before the enforcement of this Decree. In this case, the date of enforcement of this Decree shall be deemed the date of approval of establishment, etc. of factory, date of approval of installation of manufacturing facilities or date of start of factory construction.

Article 3 (Applicable Examples regarding Area of Factory Construction of Seoul Metropolitan Area Factory)
This amended provisions of Article 25 shall apply to the factory which has received approval of establishment, etc. of factory before the enforcement of this Decree: Provided, That former provisions shall apply to the case of enlargement pursuant to the provisions of subparagraph 3 (c) and (d) of the attached Table 2.

Article 4 (Applicable Examples regarding Supporting Facilities of Apartment Type Factory)
This amended provisions of Article 36-4 (3) shall apply beginning with the apartment type factory which has received the first approval of establishment of apartment type factory after the enforcement of this Decree.

Article 5 Omitted.
Article 6 (Relations with Other Acts and Subordinate Statutes)
Where the former Industrial Placement and Factory Construction Act or provisions thereof is cited in other Acts and subordinate statutes, and there are corresponding provisions in this Decree, it is deemed as having cited this Decree or the provisions of this Decree.



ADDENDA <Presidential Decree No. 18292, Feb. 25, 2004>


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

Article 2 (Term of Validity)
The amended provisions of subparagraph 1 (f) of the attached Table 2 shall be valid until December 31, 2004.

Article 3 (Transitional Measures concerning Construction or Enlargement of Factory with respect to Which Application for Occupancy Contract was Received at Expiration of Term of Validity)
The construction or enlargement of a factory with respect to which the administrative agency of an industrial complex received an application for occupancy contract at the expiration of the term of validity of the amended provisions of subparagraph 1 (f) of the attached Table 2 shall be governed by such amended provisions.

Article 4 (Transitional Measures regarding Apartment Type Factory)
An apartment-type factory pursuant to the former provisions at the time of the enforcement of this Decree shall be deemed as an apartment-type factory pursuant to the amended provisions of subparagraph 1 of Article 34.

Article 5 Omitted.









ADDENDUM <Presidential Decree No. 18312, Mar. 17, 2004>


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



ADDENDA <Presidential Decree No. 18457, Jun. 29, 2004>


Article 1 (Enforcement Date)
This Decree shall enter into force on July 1, 2004. <Proviso omitted>

Articles 2 through 4 Omitted.











ADDENDA <Presidential Decree No. 18594, Dec. 3, 2004>


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

Articles 2 through 5 Omitted.











ADDENDA <Presidential Decree No. 18847, May 26, 2005>


(1) (Enforcement Date) This Decree shall enter into force on the date of its promulgation: Provided, That the amended provisions of subparagraphs 1 (e) and 3 (i) of the attached Table 2 shall enter into force on July 28, 2005.
(2) (Term of Validity) The amended provisions of subparagraph 1 (f) of the attached Table 2 and the Sub-Table shall be valid until December 31, 2007.
(3) (Transitional Measures concerning Construction or Extension of Factory with respect to Which Application for Occupancy Contract Was Received at Expiration of Term of Validity) The construction or extension of a factory with respect to which the administrative agency of an industrial complex received an application for occupancy contract at the expiration of the term of validity of the amended provisions of subparagraph 1 (f) of the attached Table 2 shall be governed by such amended provisions.


[Table 1] <Amended by Presidential Decree No. 18292, Feb. 25, 2004>
Cases Where Construction, Enlargement or Transfer in the Restricted Population Zone is Permitted (Related to Article 26)

1. Industrial complex (a) Construction or enlargement of factory of small- and medium-sized enterprise;
(b) Construction or enlargement of polluter business type factory such as casting, plating, etc. occupying industrial complex designated for transfer and collectivization of polluter business-type;
(c) Construction of a factory that occupies with the same scale as the closed factory which has been transferred;
(d) Transfer of a factory (in case of large enterprise, factory construction area is limited to the extent of total of construction area of existing factory and enlargeable area of the factory concerned for transfer in the same industrial complex);
(e) Construction and enlargement of factory for publication of daily newspapers registered pursuant to the provisions of Article 7 of the Registration, etc. of Periodicals Act; and
(f) Activities permitted in the industrial zone and other zones.

2. Industrial zone (a) Construction or enlargement of urban type factory of small- and medium-sized enterprise (excluding urban type factory pursuant to the provisons of subparagraph 2 of Article 34);
(b) Enlargement of existing factory (Provided, That as for a factory other than that of small- and medium-sized enterprise, construction area of enlargement shall be limited to 3000 square meters or less);
(c) Transfer into an industrial zone by a small- and medium-sized enterprise situated in other zone, or transfer between industrial zones (limited to the case where area of factory construction is within the extent of total of construction area of existing factory and enlargeable area of the factory concerned in the zone before transfer);
(d) Enlargement of an existing factory in the existing site that operates a business type in the Sub-Table, or of an existing factory that changes business type to the one in the Sub-Table from another business type (limited to the case that went through deliberation of the Seoul Metropolitan Area Readjustment Committee pursuant to the provisions of Article 21 of the Seoul Metropolitan Area Readjustment Planning Act when an existing factory is transferred to an area other than the Seoul Metropolitan Area or invests in the construction of a factory in an area other than the Seoul Metropolitan Area); and
(e) Activities permitted within other zone.

3. Other zones (a) Construction or enlargement (as for a factory of enterprise other than a small- and medium-sized enterprise, limited to the case of less than 1000 square meters of a factory construction area after construction or enlargement) of factory (hereinafter referred to as a "local neighborhood factory") falling under the following, or enlargement of existing factory (as for a factory of enterprise other than a small- and medium-sized enterprise, limited to the case of less than 1000 square meters of factory construction area after enlargement):
(i) A factory belonging to a business type prescribed by the Ordinance of the Ministry of Commerce, Industry and Energy, which is for processing of agricultural, marine, livestock or forest products, and manufacture of organic fertilizer or feed utilizing by-products thereof;
(ii) A factory of a business type prescribed by the Ordinance of the Ministry of Commerce, Industry and Energy, which belongs to a recycling business pursuant to the provisions of subparagraph 7 of Article 2 of the Act on the Promotion of Saving and Recycling of Resources, and a factory that manufactures recycled products pursuant to subparagraph 5 of Article 2 of the same Act;
(iii) A factory for the promotion of commercialization of the project of development of technological foundation of industry pursuant to the provisions of Article 24 of the Industrial Development Act and projects pursuant to the provisions of subparagraph 1 through 4 of Article 25 of the same Act, or accomplishment of specific research and development projects pursuant to the provisions of Article 7 of the Technology Development Promotion Act and new technology that gained national certification;
(iv) A factory recommended by the Mayor/Do governor as it was acknowledged to be in need of specialized rearing in the region, which uses raw material produced in the region for main material; and
(v) A factory belonging to an industry closely linked to the life of city dwellers such as consumer industry, etc., and of the business type prescribed by the Ordinance of the Ministry of Commerce, Industry and Energy;
(b) Construction and enlargement of a factory (as for a factory of enterprise other than a small- and medium-sized enterprise, limited to the case of within 1000 square meters of factory construction area after construction and enlargement) of construction material business type (hereinafter referred to as a "factory of construction material business type") prescribed by the Ordinance of the Ministry of Commerce, Industry and Energy, or enlargement of existing factory (as for factory of enterprise other than small- and medium-sized enterprise, limited to the case of within 1000 square meters of factory construction area after construction or enlargement);
(c) Enlargement of an existing factory of small- and medium-sized enterprise, which is an urban type factory (excluding the urban type factory pursuant to the provisions of subparagraph 2 Article 34);
(d) Construction and enlargement (as for factory of enterprise other than small- and medium-sized enterprise, limited to the case of within 1000 square meters of factory construction area after construction and enlargement) of a factory belonging to a business type (hereinafter referred to as the "high-tech business type") prescribed by the Ordinance of the Ministry of Commerce, Industry and Energy for the development of high technology and sophistication of industrial structure among the urban type factory (excluding urban type factory pursuant to the provisions of subparagraph 2 of Article 34), or enlargement of an existing factory (as for a factory of enterprise other than a small- and medium-sized enterprise, limited to the case of within 3000 square meters of factory construction area after enlargement);
(e) Transfer between other zones of existing factories of small- and medium-sized enterprises which are urban type factory;
(f) Enlargement (area of enlargement is within the extent of factory area allowed for construction) of an existing factory for the operation of business type for which establishment is allowed in the zone;
(g) Construction and enlargement of butchery and processing facilities installed in the livestock product joint wholesale market pursuant to the Act on Distribution and Price Stabilization of Agricultural and Fishery Products (limited to the case where factory construction area is within 10,000 square meters after construction and enlargement); and
(h) Construction and enlargement of a factory for publication of a daily newspaper registered pursuant to the provisions of Article 7 of the Registration, etc. of Periodicals Act (limited to the case where a factory construction area is within 10,000 square meters after construction and enlargement).



Remarks
1. An industrial complex shall consist of an industrial complex (including cooperative complex approved by small- and medium-sized enterprise cooperative project action plan; the same shall apply hereinafter) pursuant to the provisions of subparagraph 7 of Article 2 of the Act, and a complex created by an industrial site creation project pursuant to the provisions of subparagraph 10 of Article 2 of the Urban Planning Act (referring to the former Urban Planning Act abrogated pursuant to the provisions of Article 2 of the Addenda of the National Land Planning and Utilization Act, Act No. 6655).
2. An industrial zone shall consist of the industrial area pursuant to the provisions of Article 36 (1) 1 (c) of the National Land Planning and Utilization Act, the Class II district unit planning zone (limited to industrial type and complex type) pursuant to the provisions of Article 51 (3) of the same Act, and the one partitioned off into industrial function in the industry development promotion district and complex development promotion district pursuant to the provisions of Article 31 (2) 7 (b) and (e) of the Enforcement Decree of the same Act.
3. Other zone shall be a zone other than industrial complex and industrial zone.
4. Small- and medium-sized enterprise shall be a small- and medium-sized enterprise pursuant to the provisions of Article 2 of the Framework Act on Small and Medium Enterprises.
5. Large enterprise shall be an enterprise other than a small- and medium-sized enterprise.
6. An existing factory refers to a factory that received approval for factory establishment pursuant to the provisions of Articles 13 and 20 of the Act as of the enforcement date (Jul. 4, 1994) of the amended Enforcement Decree of the Industrial Placement and Factory Construction Act, Presidential Decree No. 14315, and registered pursuant to the provisions of Article 16 of the Act as of the enforcement date (Jul. 19, 1996) of the amended Enforcement Decree of the Industrial Placement and Factory Construction Act, Presidential Decree No. 15123.
7. Construction area of an existing factory shall be deemed as the construction area of existing factory that received approval of factory construction pursuant to the provisions of Article 13 of the Act (including the case which is deemed as having reported pursuant to the provisions of paragraph (2) of the same Article) before the enforcement date (Jul. 4, 1994) of the amended Enforcement Decree of the Industrial Placement and Factory Construction Act, Presidential Decree No. 14315.
8. Area of existing factory site shall be deemed as the area of existing factory site that received approval of factory construction pursuant to the provisions of Article 20 of the Act before the enforcement date (Jul. 10, 1997) of the amended Enforcement Decree of the Industrial Placement and Factory Construction Act, Presidential Decree No. 15432.
9. As for calculation of area where enlargement is allowed, area of each enlargement shall be added in case of enlargement of two or more times.


[Sub-Table] <Amended by Presidential Decree No. 18039, Jun. 30, 2003>
Enlargement Allowed Business Type

Category No.
Business type

30013 Business of manufacturing a computer input/output device and peripheral device
32111 Business of manufacturing a diode, transistor and quasi-semiconductor
32112 Business of manufacturing an electronic integrated circuit
32195 Business of manufacturing an electronic card
32196 Business of manufacturing a liquid crystal display
32201 Business of manufacturing cable communications apparatus
32202 Business of manufacturing broadcasting and radio communications apparatus
32300 Business of manufacturing a radio receiver, video and sound appliance
33329 Business of manufacturing other optical instruments
35310 Business of manufacturing an aircraft, spaceship and auxiliary equipment



[Table 2] <Amended by Presidential Decree No. 15432, Jul. 10, 1997; Presidential Decree No. 16043, Dec. 31, 1998; Presidential Decree No. 16532, Aug. 9, 1999; Presidential Decree No. 17515, Feb. 9, 2002; Presidential Decree No. 18039, Jun. 30, 2003; Presidential Decree No. 18292, Feb. 25, 2004; Presidential Decree No. 18847, May 26, 2005>
Where Construction, Enlargement or Transfer is Allowed in the Growth Adminstration Zone (Related to Article 27)

1. Industrial complex (a) Construction or enlargement of a factory of pollution-causing business type such as casting, plating, etc that occupies the designated industrial complex for transfer and collectivization of pollution-causing business type;
(b) Construction or transfer of a factory of large enterprise (limited to the Asan national industrial complex);
(c) Transfer of a factory (limited to the case where an area of factory construction is within the extent of total of construction area of an existing factory and an area of allowed enlargement thereof in case of large enterprise, where the transfer occurs either within the same industrial complex, or when the existing factory situated in the restricted population zone, growth administration zone or environmental protection zone is removed because of execution of public project);
(d) Construction of a factory with the same capacity, which has been handed over after a closedown, for occupancy;
(e) Construction and enlargement of a factory for publication of a daily newspaper registered pursuant to the provisions of Article 12 of the Act on the Freedom of Newspapers, etc. and Guarantee of Their Functions;
(f) Construction or enlargement of a factory of a foreigner invested enterprise that engages in the operation of any business provided in the Sub-Table; and
(g) Activities allowed in the industrial zone and other zone.

2. Industrial zone (a) A factory that passed through the deliberation of the Seoul Metropolitan Area Readjustment Committee pursuant to the provisions of Article 21 of the Seoul Metropolitan Area Readjustment Planning Act in case where large enterprise engaged in the business of the following business type transfers into an industrial zone in the growthadministration zone from a restricted population zone or an environmental protection zone (this shall be omitted in case where it passed through the Seoul Metropolitan Rearrangement Committee in the course of site creation process):
(i) Business of manufacturing computer input/output devices and other peripheral devices (30013);
(ii) Business of manufacturing an electronic coil, transformer and conductor (31103);
(iii) Business of manufacturing a diode, transistor and quasi-semiconductor (32111);
(iv) Business of manufacturing an electronic condenser (32193);
(v) Business of manufacturing a cable communications apparatus (32201);
(vi) Business of manufacturing a broadcasting and radio communications apparatus (32202);
(vii) Business of manufacturing a radio receiver, video and sound devices (32300); and
(viii) Business of manufacturing an aircraft, spaceship and auxiliary equipment (35310);
(b) Other activities allowed in other zones.

3. Other zones (a) Construction or enlargement of a factory of small- and medium-sized industry;
(b) Construction or enlargement of a local neighborhood business type factory or construction material business type factory (limited to the case of a construction area of 5,000 square meters or less after construction or enlargement);
(c) Enlargement within the extent of 100 percent of an existing factory construction area of large enterprise that operates the following business type (It shall go through the deliberation of the Seoul Metropolitan Area Readjustment Committee pursuant to the provisions of Article 21 of the Seoul Metropolitan Area Readjustment Planning Act: Provided, That where it went through the deliberation of the Seoul Metropolitan Area Readjustment Committee during the site creation process, this shall be omitted):
(i) Business of manufacturing an electronic coil, transformer and conductor (31103);
(ii) Business of manufacturing an electronic condenser (32193);
(iii) Business of manufacturing a passenger car and other passenger transport cars (34121); and
(iv) Business of manufacturing a motor truck and other special purpose cars (34122);
(d) Enlargement of an existing factory of large enterprise, which operates business type of the Sub-Table of Table 1, within the extent of 100 percent of construction area of existing factory (It shall go through the deliberation of the Seoul Metropolitan Area Readjustment Committee pursuant to the provisions of Article 21 of the Seoul Metropolitan Area Readjustment Planning Act: Provided, That where it went through the deliberation of the Seoul Metropolitan Area Readjustment Committee during the site creation process, this shall be omitted.):
(e) Enlargement within the existing site of existing factory operating business type of the Sub-Table of the attached Table 1, or of existing factory changing business type to the one in the Sub-Table of the attached Table 1 (limited to the case where it went through the deliberation of the Seoul Metropolitan Area Readjustment Committee, when the existing factory is transferred to an area outside the Seoul Metropolitan Area or investment is made for establishment of factory outside the Seoul Metropolitan Area);
(f) Enlargement of existing factory (limited to the case where an enlarged area is within 3,000 square meters);
(g) Construction and enlargement of butchery facilities pursuant to the Processing of Livestock Products Act and of butchery and processing facilities installed in the livestock product joint wholesale market pursuant to the Act on Distribution and Price Stabilization of Agricultural and Fishery Products (limited to the case where an factory construction area is within 10,000 square meters after construction and enlargement);
(h) Transfer of a factory of small- and medium-sized industry into the restricted population zone and environmental protection zone to growth administration zone;
(i) Construction and enlargement of a factory for publication of daily newspaper registered pursuant to the provisions of Article 12 of the Act on the Freedom of Newspapers, etc. and Guarantee of Their Functions (limited to the case where a factory construction area is within 10,000 square meters after construction and enlargement); and
(j) Construction or enlargement of a factory of a foreigner invested enterprise that engages in the operation of business type of the Sub-Table.



Remarks
1. An industrial complex, industrial zone, other zone, small- and medium-sized enterprise, large enterprise, existing factory, construction area of existing factory, site area of existing factory, enlargement allowed area shall be pursuant to the Remark of the attached Table 1.
2. In allowing the transfer of a factory pursuant to the provisions of subparagraph 2 (a) of the above Table, transfer to industrial complex of the growth administration zone shall be allowed preferentially.
3. The public project of subparagraph 1 (c) refers to any project (including a land compartmentalization rearrangement project, redevelopment project and farmland improvement project) for which the land may be acquired or utilized pursuant to the provisions of Article 4 of the Act on the Acquisition of Land, etc. for Public Works and the Compensation Therefor.
4. The proviso in the parenthesis of subparagraph 3 (c) shall apply only when the site is created after the promulgation date (Jul. 10, 1997) of the amended Enforcement Decree of the Industrial Placement and Factory Construction Act, Presidential Decree No. 15432.
5. Foreigner invested enterprise shall be the a foreigner invested enterprise pursuant to the provisions of subparagraph 6 of Article 2 of the Foreign Investment Promotion Act, whose rate of foreign investment pursuant to the provisions of subparagraph 4 of the same Article is 50 percent or more: Provided, That the rate of foreign investment of foreigner invested enterprise whose factory is established in the industrial complex designated pursuant to the provisions of Article 6, 7 or 7-2 of the Industrial Sites and Development Act and announced pursuant to the provisions of Article 7-3 of the same Act before Dec. 31, 2003 for the purpose of inducement of foreign investment shall be 30% or more.


[Sub-Table] <Amended by Presidential Decree No. 18847, May 26, 2005>
Construction or Enlargement Allowed Business Type

Category No.
Business type

24121 Business of manufacturing industrial gas (limited to the manufacture of industrial gas of high degree of purity of 99.99% or more)
24212 Business of manufacturing biological medication
26129 Business of manufacturing any other industrial glassware
29172 Business of manufacturing an air conditioning appliance
30011 Business of manufacturing a computer
30013 Business of manufacturing a computer input/output device and a peripheral device
30021 Business of manufacturing a copier
32111 Business of manufacturing a diode, transistor and quasi-semiconductor
32112 Business of manufacturing an electronic integrated circuit
32192 Business of manufacturing a printed circuit board
32196 Business of manufacturing a liquid crystal display
32201 Business of manufacturing cable communications apparatus
32202 Business of manufacturing broadcasting and radio communications apparatus
32300 Business of manufacturing a radio receiver, video and sound appliance
33199 Business of manufacturing other medical equipment
33213 Business of manufacturing electromagnetic measuring, experimental and analysis apparatus
33215 Business of manufacturing a speedometer and adding-up meter
33216 Business of manufacturing an automatic measuring and control appliance for instrument
33220 Business of manufacturing a control unit for industrial treatment process
33321 Business of manufacturing an optical fiber and optical urea
33322 Business of manufacturing a camera, film projector and related device
34301 Business of manufacturing parts for car motor
34302 Business of manufacturing parts for car body
34309 Business of manufacturing other parts for car
35310 Business of manufacturing an aircraft, spaceship and auxiliary equipment



[Table 3]<Amended by Presidential Decree No. 18292, Feb. 25, 2004>
Cases Where Construction, Enlargement or Transfer in the Environmental Protection Zone is Allowed (Related to Article 27-2)

1. Industrial complex (a) Activities that are allowed in the industrial zone and other zone (limitation on area shall not apply to a factory of small- and medium-sized enterprise)

2. Industrial zone (a) Construction and enlargement (limited to the case where factory construction area is within 3,000 square meters after construction and enlargement) of urban type factory of small- and medium-sized enterprise (excluding the urban type factory pursuant to the provisions of subparagraph 2 of Article 34);
(b) Transfer of a factory of small- and medium-sized enterprise from other zone to an industrial zone, or transfer between industrial zones (limited to the case where factory construction area is within the total of construction area of existing factory and the area allowed to enlarge in the previous zone before transfer); and
(c) Activities allowed in other zone.

3. Other zones (a) Construction and enlargement of local neighborhood factory and high-tech business type factory (limited to the case where factory construction area is within 1,000 square meters after construction and enlargement), or enlargement of existing factory (limited to the case where factory construction area to be enlarged is within 1,000 square meters): Provided, That a factory falling under subparagraph 3 (a) (iv) of the attached Table 1 shall be limited to the business type concluded by consultation between the Minister of Commerce, Industry and Energy and the Minister of Environment;
(b) Urban type factory (excluding the urban type factory pursuant to the provisions of subparagraph 2 of Article 34) whose impact on water quality is acknowledged as fit for the purpose of designation of environmental protection zone, and which is prescribed by the Ordinance of the Ministry of Commerce, Industry and Energy after consultation between the Minister of Commerce, Industry and Energy and the Minister of Environment;
(c) Construction and enlargement (limited to the case of factory construction area of within 1,000 square meters after construction and enlargement) of construction material business type factory, or enlargement (limited to the case of factory construction area of within 1,000 square meters after enlargement) of existing factory;
(d) Enlargement (limited to the case of factory construction area for enlargement within 3,000 square meters) of existing factory which is an urban type factory (excluding the urban type factory pursuant to the provisions of subparagraph 2 of Article 34) of small- and medium-sized enterprise;
(e) Transfer of urban type factory (excluding the urban type factory pursuant to the provisions of subparagraph 2 of Article 34) of small- and medium-sized enterprise between other zones (limited to the case where factory construction area is within the total of the area of existing factory and the area allowed to enlarge in the previous zone before transfer);
(f) Construction of factory of small- and medium-sized enterprise that acquired a closed down existing factory by transfer and establish to the same scale;
(g) Construction and enlargement (limited to the case where construction area is within 5,000 square meters after construction and enlargement) of butchery facilities pursuant to the Processing of Livestock Products Act, or enlargement (limited to the case where construction area is within 5,000 square meters after enlargement) of existing facility;
(h) Construction and enlargement (limited to the case where an factory construction area is within 3,000 square meters after construction and enlargement) of general rice treatment mill for the development of rice distribution industry pursuant to the provisions of Article 22 of the Grain Management Act, or enlargement of existing treatment mill (limited to the case where an factory construction area is within 3,000 square meters after enlargement);
(i) Construction and enlargement (limited to the case where factory construction area is within 5,000 square meters after construction and enlargement) of facility of forest product processing industry which is the subject of processing facility fund assistance pursuant to the provisions of Article 10 of the Forestry and Mountain Villages Development Promotion Act; and
(j) Enlargement (limited to the case where an area to enlarge is within the extent of allowed factory construction area) of existing factory for the operation of business type whose establishment is allowed in the zone concerned.



Remarks
An industrial complex, industrial zone, other zone, small- and medium-sized enterprise, large enterprise, existing factory, construction area of existing factory, and the allowed area of enlargement shall be pursuant to the Remark of the attached Table 1.


[Table 4] Deleted. <by Presidential Decree No. 14822, Dec. 7, 1995>
[Table 5] Deleted. <by Presidential Decree No. 15432, Jul. 10, 1997>

[Table 6] <Amended by Presidential Decree No. 18039, Jun. 30, 2003>
Kind of Violations and Amount of Fine for Negligence (Related to Article 60 (3))

Violations
Relevant provisions
Amount of fine for negligence

1. A person who operates leasing service of industrial site, factory, etc. in violation of the provisions of Article 38-2 of the Act Article 55 (1) 1 of the Act 3,000,000 won
2. A person who transfers an industrial site or factory, etc. without report in violation of the provisions of Articles 39 (2), 40 (2) or 43 (2) of the Act Article 55 (1) 2 of the Act 3,000,000 won
3. A person who has not transferred an industrial site or factory, etc. in violation of the provisions of Article 40 (1) of the Act Article 55 (1) 3 of the Act 3,000,000 won
4. A person who has not transferred an industrial site or factory, etc. within the period of time pursuant to the provisions of Article 43 (1) and (2) of the Act Article 55 (1) 4 of the Act 3,000,000 won
5. A person who has transferred an industrial site or factory, etc. in violation of the provisions of Article 43 (1) and (2) of the Act Article 55 (1) 5 of the Act 3,000,000 won
6. A person who has refused, disturbed, or evaded inspection pursuant to the provisions of Article 43 (1) or (2) of the Act Article 55 (1) 6 of the Act 2,000,000 won
6-2. A person who has changed approved matters without filing a report of change pursuant to the proviso to Article 13 (1), proviso of Article 14-3 (1) and proviso of Article 20 (2) of the Act Article 55 (2) 1 of the Act 1,000,000 won
7. A person who operates a factory without filing a completion report pursuant to the provisions of Article 15 of the Act, or who operates a factory after filing a false report Article 55 (2) 2 of the Act 1,000,000 won
8. A person who did not register for partial operation pursuant to the provisions of Article 16 (3) of the Act and operates the factory partially Article 55 (2) 3 of the Act 1,000,000 won
9. A person who did not register change pursuant to the provisions of Article 16 (4) of the Act and changed registered matters Article 55 (2) 4 of the Act 1,000,000 won


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