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ENFORCEMENT DECREE OF THE PROMOTION OF INDUSTRIAL EDUCATION AND INDUSTRY-ACADEMIC COOPERATION ACT

[Enforcement: Feb. 4, 2009] [Presidential Decree No. 21291, Feb. 3, 2009, Amendment of Other Act]

Ministry of Education, Science and Technology (Vocational Education Promotion Team) 02-2100-6475

CHAPTER I GENERAL PROVISIONS

Article 1 (Purpose)

The purpose of this Decree is to provide for the matters delegated by the Promotion of Industrial Education and Industry-Academic Cooperation Act and the matters necessary for the enforcement of the Act.

Article 1-2 (Scope of Technologies to be Commercialized) The term "technologies as provided by the Presidential Decree" in subparagraph 6 of Article 2 of the Promotion of Industrial Education and Industry-Academic Cooperation Act (hereinafter referred to as the "Act") shall mean technologies falling under any one of the following subparagraphs:

1. Patents, utility models, designs and intellectual properties equivalent to those that have been registered or applied for registration according to provisions of relevant Acts, including the Patent Act, the Utility Model Act and the Design Protection Act;

2. Capital goods made by the integration of technologies under subparagraph 1;

3. Information of technologies under subparagraph 1 or 2; and

4. Technological, scientific or industrial knowhow that may be transferred or commercialized.

[This Article Newly Inserted on Jan. 31, 2008]

Article 2 (Student Career Guidance Program)

The State and local governments shall formulate and implement a student career guidance program that contains the following matters to give students such opportunities to receive an industrial education suitable for their individual aptitude and ability according to Article 3 of the Act.

1. Matters concerning the establishment and operation of the career counseling office at each school and the matters concerning the placement and training of career counseling teachers;

2. Matters concerning cooperation among the career counseling teachers, specialists, institutions, and organizations concerned with career counseling for students;

3. Matters concerning development and distribution of materials and programs necessary for student career counseling;

4. Fostering of institutions or organizations that gather, develop or provide materials and information pertaining to careers; and

5. Other matters necessary for student career guidance. Article 3 (Comprehensive Plan for Promotion of Industrial Education, and Others) (1) The comprehensive plan for the promotion of industrial education referred to in Article 4 (1) 1 of the Act shall be established and carried out by being categorized into a five-year basic plan and an annual plan, and shall include the following matters:

1. A plan to enlarge and maintain the facilities and equipment necessary for industrial education;

2. A plan to promote the industry-academic cooperation such as field practices;

3. A plan for training of industrial education instructors;

4. A placement plan for the graduates of the industrial education institutions and an education plan to improve their skills; and

5. Other matters necessary for the promotion of the industrial education. (2) The field practice program referred to in Article 4 (1) 4 of the Act shall include the following matters:

1. The contents and evaluation of the field practice;

2. A plan to improve the ability of the industrial enterprises to perform the field practice;

3. Development and distribution of the educational materials necessary for the field practice;

4. Prevention of and compensation for industrial accidents;

5. The welfare of students; and

6. Other matters necessary for the field practice. (3) The training program for industrial education instructors referred to in Article 4 (1) 5 of the Act shall include the following matters:

1. The matters concerning the training institutions and on-the-job service training;

2. The matters concerning training in foreign countries;

3. Training for the minor field of study to be indicated in the teacher's license;

4. A plan to acknowledge training and research, etc. carried out at institutes, organizations, industrial enterprises, etc. other than the training institutions to a career; and

5. Other matters necessary for training of the industrial education instructors. (4) The plan for job placement service and the plan for the execution of the skill improvement education referred to in Article 4 (1) 6 of the Act shall include the following matters:

1. A plan for cooperation between job placement agencies and the industrial education institutions;

2. A plan to improve skills in each professional field; and

3. Other matters necessary for the placement plan. (5) The Minister of Education, Science and Technology shall fully take into account the matters falling under the following subparagraphs when he intends to work out and implement programs to promote the industry-academic cooperation provided for in Article 4 (1) 6-2 of the Act:

1. The actual state of the industry-academic cooperation;

2. The extent of satisfaction felt by students studying in industrial education institutions, industrial enterprises, businessmen's organizations and functional organizations (hereinafter referred to as "industrial enterprises, etc.") at the industry- academic cooperation; and

3. The current state of school personnel in charge of the industry-academic cooperation, related facilities and equipment.

CHAPTER II PROMOTION OF INDUSTRIAL EDUCATION

Article 4 Deleted.

Article 5 (Short-Term Industrial Educational Facilities) (1) The short-term industrial educational facilities shall, when the State or a local government intends to establish in accordance with the provisions of Article 6 of the Act, be annexed to the industrial education institutions under the provisions of subparagraph 2 of Article 2 of the Act.

(2) The term for study at the short-term industrial educational facilities shall be not more than two years.

(3) The number of students per class at the short-term industrial educational facilities shall be not more than fifty, and the short-term industrial educational facilities shall have the teaching staff, facilities and equipment necessary for the operation of their curriculums.

(4) The positions of the teaching staff and the administrative staff of the short- term industrial educational facilities may concurrently be filled by the teaching staff and the administrative staff of the industrial education institutions to which such facilities are attached. In such case, the Minister of Education, Science and Technology may set separate terms and conditions for the placement of teaching staff and administrative staff at the industrial education institutions taking into consideration curriculums, etc. thereof notwithstanding the provisions on the placement of teaching and administrative staff under the Enforcement Decree of the Elementary and Secondary Education Act and the Regulations on the Foundation and Operation of Universities and Colleges. (5) Any graduate from a high school or equivalent who has completed a curriculum equivalent to that of a junior college at a short-term industrial educational facility recognized as having the teaching staff, facilities and equipment equivalent to those of a junior college by the Minister of Education, Science and Technology shall be recognized as the equivalent to a graduate from a junior college pursuant to the Ordinance of the Ministry of Education, Science and Technology.

[This Article Wholly Amended on Feb. 6, 1997]

Article 6 (Opening and Operation of Vocational Education and Training Courses by Agreement)

(1) Any industrial education institution shall not, if it opens and operates vocational education and training courses by agreement (hereinafter referred to as the "vocational education and training courses") pursuant to Article 8 (1) of the Act, cause any impediments to the education for students studying in the industrial education institution. (2) Any agreement that any industrial education institution enters into with the State, local governments or industrial enterprises, etc, in order to open and operate vocational education and training courses shall contain the following matters:

1. The name of the vocational education and training course;

2. Matters concerning the composition and operation of the vocational education and training course;

3. Matters concerning the quota and the selection of students of the vocational education and training course;

4. Matters concerning costs needed to operate the vocational education and training course and the defrayment of such costs (including standards for calculating costs and ways of defraying such costs);

5. Matters concerning education and training costs to be paid by students of the vocational education and training courses; and

6. Matters concerning the period for the opening and operation of the vocational education and training course.

(3) Students of the vocational education and training courses shall be selected by means of practical examination, aptitude test, experiment, practice and interview as well as taking into account recommendations given by the State, local governments or industrial enterprises, etc. and their working history. And the industrial education institution shall work out and implement a variety of ways and standards for selecting students of the vocational education and training courses in order to reflect their talents, aptitudes and abilities, etc. in their selection. (4) The student quota for the vocational education and training courses shall be set by an agreement between the industrial education institution and the State, local government or industrial enterprise, etc for each vocational education and training course within the scope of not impeding the education of the relevant industrial education institution taking into account the educational circumstances of the relevant industrial education institution, and prospects for the supply and demand of manpower, etc., including the number of students per teacher and the standard area of school building per student, etc.

(5) The total amount of education and training costs to be paid by students shall courses referred to in paragraph (2) 4.

[This Article Newly Inserted on Sep. 19, 2003]

Article 7 (Opening and Operation of Curriculums and Faculties by Agreement, etc.)

(1) In the event of opening and operating curriculums or faculties by agreement (hereinafter referred to as the "agreed curriculums, etc.") in accordance with Article 8 (1) of the Act, the agreed curriculums, etc. to be opened and operated by any industrial education institution shall be a high school course, a technical bachelor's degree course, a bachelor's degree course, a master's degree course or a doctorate course accredited to the industrial education institution in accordance with the provisions of the Elementary and Secondary Education Act or the Higher Education Act: Provided, that advanced technical schools among industrial education institutions and schools under subparagraph 7 of Article 2 of the Higher Education Act that are not allowed to open and operate degree courses, may open and operate the agreed curriculums, etc. that do not fall under the high school courses and degree courses. (2) Any industrial education institution shall, when it intends to open and operate the agreed curriculums, etc., enter the following matters in its school regulations (hereinafter referred to as the "school regulations"):

1. The name of the agreed curriculums, etc.;

2. Matters concerning the composition and operation of the courses of study;

3. Matters concerning standards for and ways of selecting students;

4. Matters concerning the student quota;

5. Matters concerning costs needed to operate the agreed curriculums, etc. and the defrayment of such costs;

6. Matters concerning payments, including tuition fees, etc., which are born by students (limited to the agreed curriculums, etc. under Article 8 (1) 2 of the Act);

7. Matters concerning semesters and the number of school days;

8. Matters concerning the opening and operating period of the agreed curriculums, etc.; and

9. Matters concerning the protection of students attending the agreed curriculums, etc. in the event that the agreed curriculums, etc. are abolished prior to the expiration of the agreed opening and operation period. (3) Lessons of the agreed curriculums, etc. shall be given by means of class attending, field class, distance class and other means as prescribed by the Ordinance of the Ministry of Education, Science and Technology. (4) The selection of students for the agreed curriculums, etc. under Article 8 (1) 1 of the Act shall be made according to the admission screening methods provided for in Article 82 of the Enforcement Decree of the Elementary and Secondary Education Act, or the general admission screening methods or special admission screening methods provided for in Article 34 of the Enforcement Decree of the Higher Education Act, but specific matters shall be prescribed by the school regulations.

(5) The number of students or the student quota for the agreed curriculums, etc. shall be deemed to be separately set, notwithstanding the provisions of Article 51 of the Enforcement Decree of the Elementary and Secondary Education Act and the provisions of Articles 28 (1) and 30 of the Enforcement Decree of the Higher Education Act: Provided, that the number of students or the student quota by school years for the agreed curriculums, etc. under Article 8 (1) 1 of the Act shall not exceed 10/100 of the total number of students admitted or of the total student quota admitted during the relevant school year.

(6) The agreed curriculums, etc. under Article 8 (1) 1 of the Act shall not levy tuition fees on students and the agreed curriculums, etc. under Article 8 (1) 2 of the Act shall not levy tuition fees in excess of 50/100 of the costs needed to operate the agreed curriculums, etc. referred to in paragraph (2) 5 on students. (7) The period of opening and operating the agreed curriculums, etc. shall not be shorter than the minimum period required for students studying the agreed curriculums, etc. to earn their degrees or to have their academic attainments recognized. (8) The head of an industrial education institution may, for a student of the agreed curriculums, etc. under Article 8 (1) 2 of the Act holding a work record related to a course, recognize his/her completion of the course of study within the scope of 20/100 of the course of study required for the relevant agreed curriculums, etc. [This Article Newly Inserted on Sep. 19, 2003]

Article 8 (Joint Operation of Agreed Curriculums, etc.) Any industrial education institution shall, when it intends to jointly open and operate the agreed curriculums, etc. with other industrial education institutions by agreement in accordance with Article 8 (1) of the Act, enter ways of awarding degrees in the agreement.

[This Article Newly Inserted on Sep. 19, 2003]

Article 9: Deleted.

Article 10: Deleted.

Article 11: Deleted.

Article 12 (Industrial Consulting and Others)

Any industrial education instructor or the head of an industrial education institution shall, in the event that he/she cannot comply with the request of the head of an industrial enterprise, etc. for industrial consulting or for consultation on the use of research machinery and tools under the provisions of Article 9 of the Act, notify the reason therefor in writing to the head of the industrial enterprise, etc. The same shall apply to the head of an industrial enterprise, etc. who receives a request for consultation on the use of research machinery and tools from an industrial education instructor.

Article 12-2 (Assessment and Reflection of Records, etc. of Industry-Academic Cooperation)

The head of every industrial education institution shall set assessment standards in order to have the records and performances of industrial education instructors participating in the industry-academic cooperation under Article 12-2 of the Act properly assessed and reflected in their evaluations, promotions and remunerations, etc. [This Article Newly Inserted on Sep. 19, 2003]

Article 13 (Supply of New Machinery and Tools and New Technologies)

(1) The State and local governments shall prepare and execute a plan to provide to the industrial education institutions new machinery and tools, and new technologies provided for in Article 13 (1) of the Act. (2) The new machinery and tools, and new technologies referred to in paragraph (1) shall be those recommended to the Minister of Education, Science and Technology by the Minister of Knowledge and Economy and the head of the industrial enterprise, etc. that has developed and produced the new machinery and tools and new technologies. CHAPTER III INDUSTRIAL EDUCATION COUNCIL

Article 14 (Organization of Central Industrial Education Council) (1) The Central Industrial Education Council referred to in Article 14 of the Act (hereinafter referred to as the "Council") shall consist of not more than twenty five members including one chairperson and one vice chairperson. (2) The members of the Council shall be commissioned by the Minister of Education, Science and Technology among persons of profound learning and experience on the industrial education. Article 15 (Chairperson and Vice Chairperson)

(1) The chairperson and the vice chairperson of the Council shall be elected by mutual vote from among its members.

(2) The chairperson of the Council shall represent the Council and be in charge of all affairs of the Council.

(3) The vice chairperson shall assist the chairperson and act on behalf of the chairperson when the chairperson is unable to perform his/her duties on the grounds of inevitability.

Article 16 (Terms of Office of Members of Council) The terms of office for the members of the Council shall be two years. Article 17 (Meeting)

(1) The chairperson of the Council shall convene and preside over its meeting. (2) The chairperson shall convene the meeting without delay, if the Minister of Education, Science and Technology or not less than one third of all the Council members make a request for the meeting. (3) The meeting of the Council shall be opened with the attendance of a majority of the total members of the Council, and be resolved with the consenting vote of a majority of the members present.

Article 18 (Research Members)

(1) The Council may have research members to carry out professional research and study on affairs of the Council.

(2) The research members shall be commissioned by the Minister of Education, Science and Technology at the recommendation of the chairperson of the from among those having professional knowledge of and experience in industrial education.

Article 19 (Executive Secretary, and Others)

(1) The Council shall have one executive secretary and several secretaries to oversee the affairs of the Council.

(2) The executive secretary and secretaries shall be appointed by the Minister of Education, Science and Technology from the public officials belonging to the Ministry of Education, Science and Technology. > Article 20 (Allowances and Others)

The Council members and research members may be paid allowances and traveling expenses within the limit of the budget.

Article 21 Deleted.

CHAPTER IV DEFRAYMENT OF EXPENSES NEEDED FOR EXPERIMENTS AND PRACTICE FACILITIES BY STATE

Article 22 (Standards for State Subsidies)

The state subsidies under the provisions of Articles 18 through 20 of the Act shall, within the limit of the budget, be determined by the standards specified in the following subparagraphs:

1. The amount of the state subsidies for the facilities referred to in Articles 18 (2) and 20 (2) of the Act shall not be less than one third of the expenses needed to install the facilities and equipment necessary for the experiments and practices on the industrial education;

2. The amount of the state subsidies for the expenses needed for the operation of the experiment and practice facilities and for the experiments and practice referred to in Article 19 (2) of the Act shall not be less than half of the expenses needed therefor; and

3. The amount of the state subsides for the expenses needed for the field education of the industrial education instructors referred to in Article 19 (3) of the Act shall be the full amount of the traveling expenses and education fees granted to the teaching staff who received the field education.

Article 23 (Subsidies for Publication of Textbooks) (1) The textbooks on the industrial education for those whose publication the State may give subsidies referred to in Article 22 (2) of the Act shall be any of the following subparagraphs: >

1. Textbooks on the industrial education of which the copyrights belong to the Ministry of Education, Science and Technology;

2. Textbooks on the industrial education approved by the Minister of Education, Science and Technology; and

3. Authorized textbooks on the industrial education. (2) The subsidies referred to in paragraph (1) shall be provided in the range of 2/10 to 5/10 of the total expenses needed for the publication of the textbooks falling under any subparagraph of paragraph (1). Article 24 (Standard of Payment of Scholarships)

With respect to the payment of scholarships referred to in Article 23 of the Act, the scholarship regulations shall apply mutatis mutandis. CHAPTER V FACILITATION OF INDUSTRY-ACADEMIC COOPERATION

Article 25 (Registration of Incorporation of Board of Industry-Academic Cooperation)

(1) Matters to be registered in connection with the establishment of the board of industry-academic cooperation provided for in Article 25 (3) of the Act shall be as follows:

1. Objectives;

2. Name;

3. Location of the principal office;

4. The name and address of the director of the board; and

5. Methods of publication. (2) The application for registration of incorporation of the board of industry- academic cooperation shall be accompanied with the following documents:

1. A copy of the school regulations governing the establishment of the board of industry-academic cooperation;

2. A copy of the articles of incorporation of the board of industry-academic cooperation (hereinafter referred to as the "articles of incorporation"); and

3. A copy of the director of the board's letter accepting the proposal for his/her taking office.

[This Article Newly Inserted on Sep. 19, 2003]

Article 26 (Functions of Board of Industry-Academic Cooperation) "Other affairs related to the industry-academic cooperation as determined by the Presidential Decree" in Article 27 (1) 7 of the Act shall be as follows: Provided, that the board of industry-academic cooperation may exempt the affairs referred to in subparagraphs 3 through 8, in whole or in part, from its functions, as prescribed by the articles of incorporation, taking into account the number of its researchers and staff as well as the location of its office, etc.:

1. The gathering, provision and publicity of information on the demand for and activities of the industry-academic cooperation;

2. The education and training of the staff in charge of industry-academic cooperation projects;

3. The management on consignment of intellectual property rights held by faculty members of the relevant university (referring to the university provided for in each subparagraph of Article 2 of the Higher Education Act; hereinafter the same shall apply) or held jointly by faculty members of the relevant university and any other persons in connection with the industry-academic cooperation;

4. The support for mutual cooperative activities between the relevant university and the cooperative research institute provided for in Article 37 (1) of the Act;

5. The support for any enterprise located in the start-up business support center under subparagraph 7 of Article 2 of the Support for Small and Medium Enterprise Establishment Act that has been established and operated on the campus of the relevant university;

6. The support for the laboratory factory provided for in Article 2 (5) of the Act on Special Measures for the Promotion of Venture Businesses that has been established and operated on the campus of the relevant university;

7. The support for enterprises and research institutes, etc. that are located on the campus of the relevant university, which, in whole or in part, occupies any industrial technology complex provided for in Article 2 of the Act on Special Cases for Support of Industrial Technology Complexes; and

8. The support for other enterprises and research institutes that are established and operated on the campus of the relevant university. [This Article Newly Inserted on Sep. 19, 2003]

Article 27 (Revenues of Board of Industry-Academic Cooperation) The term "other revenues determined by the Presidential Decree, such as interests" in Article 31 (1) 6 of the Act means the revenues falling under each of the following subparagraphs:

1. Interest receipts; and

2. Rents paid by other universities or industrial enterprises, etc. for using facilities and equipment for research or experiments and practice owned by the board of industry-academic cooperation.

[This Article Newly Inserted on Sep. 19, 2003]

Article 28 (Payment of Remuneration)

(1) Remunerations paid to faculty members and students who have served to increase the revenues of the board of industry-academic cooperation under Article 32 (1) 4 of the Act shall be differentiated according to the nature of revenues, the amount of revenues and the extent of contributions made by persons subject to the payment of remuneration, etc., and specific standards for paying the remuneration shall be prescribed by the articles of incorporation: Provided, that the same shall not apply to the case where the payment of remuneration is prescribed otherwise by other Acts and subordinate statutes.

(2) The director of the board of industry-academic cooperation shall pay the remuneration referred to in paragraph (1) after obtaining approval therefor from the head of the relevant university.

[This Article Newly Inserted on Sep. 19, 2003]

Article 29 (Expenditures of Board of Industry-Academic Cooperation) The term "expenditures as determined by the Presidential Decree" in Article 32 (1) 8 of the Act mean the following expenditures:

1. Expenditures needed to perform the work of acquiring and managing intellectual property rights provided for in Article 27 (1) 3 of the Act;

2. Expenditures needed to perform the work of transferring technologies and promoting the commercialization of technologies under Article 27 (1) 5 of the Act; and

3. Expenditures needed to perform the work provided for in each subparagraph of Article 26.

[This Article Newly Inserted on Sep. 19, 2003]

Article 30 (Accounting of Board of Industry-Academic Cooperation) (1) All revenues and expenditures belonging to the jurisdiction of the board of industry-academic cooperation shall be appropriated to the accounting of the board of industry-academic cooperation.

(2) The accounting of the board of industry-academic cooperation may be managed by setting up a separate account according to financial resources or project units as prescribed by Acts and subordinate statutes governing the industry-academic cooperation or agreements involving the industry-academic cooperation. [This Article Newly Inserted on Sep. 19, 2003]

Article 31 (Accounting Agency of Board of Industry-Academic Cooperation) (1) The director of the board of industry-academic cooperation shall administer the revenues and expenditures of the board of industry-academic cooperation. (2) The director of the board of industry-academic cooperation may delegate his/her administrative work of collecting revenues and ordering expenditures to the staff belonging to the board of industry-academic cooperation. (3) The board of industry-academic cooperation shall have an accountant in charge of revenues and an accountant in charge of expenditures as executors of revenues and expenditures.

(4) The accountant in charge of revenues and the accountant in charge of expenditures referred to in paragraph (3) shall be appointed by the director of the board of industry-academic cooperation: Provided that the one accountant may be in charge of both revenues and expenditures depending on the size of the board of industry-academic cooperation.

[This Article Newly Inserted on Sep. 19, 2003]

Article 32 (Ways for Board of Industry-Academic Cooperation to Make Expenditures)

(1) Any expenditure of the board of industry-academic cooperation shall be made by the expenditure accountant under Article 31 (3) only when an order is made for it. (2) Any expenditure of the board of industry-academic cooperation shall be made by means of checks issued by a financial institution or account transfer: Provided that expenditures of small amounts as prescribed by the articles of incorporation may be made in cash.

[This Article Newly Inserted on Sep. 19, 2003]

Article 33 (Performance of Accounting of Board of Industry-Academic Cooperation, etc.)

(1) The accounting of the board of industry-academic cooperation shall be fairly and trustfully performed based on objective proof and materials. (2) The board of industry-academic cooperation shall draft financial statements. (3) The financial statements referred to in paragraph (2) shall consist of the balance sheet, the operational statement and the fund statement. (4) Necessary detailed matters concerning the performance of accounting and the compilation of the financial statements referred to in paragraphs (1) through (3) shall be prescribed and published by the Minister of Education, Science and Technology. [This Article Newly Inserted on Sep. 19, 2003]

Article 34 (Settlement of Accounts of Board of Industry-Academic Cooperation) (1) The director of the board of industry-academic cooperation shall submit the report on the settlement of accounts to the head of the relevant university within 50 days after the end of the business year of the board of industry-academic cooperation. (2) The report on the settlement of accounts referred to in paragraph (1) shall be appended by the following documents:

1. The balance sheet and the supplementary details thereof;

2. The operational statement and the supplementary details thereof;

3. The fund statement; and

4. Supplementary documents. (3) The head of the relevant university shall deliberate and confirm the settlement of accounts of the board of industry-academic cooperation within 70 days after the end of the business year of the board of industry-academic cooperation. [This Article Newly Inserted on Sep. 19, 2003]

Article 35 (Keeping and Publication of Report on Settlement of Accounts) (1) The director of the board of industry-academic cooperation shall keep the report on the settlement of accounts at the principal office for five years when the settlement of accounts is confirmed under Article 34 (3). (2) The director of the board of industry-academic cooperation shall, if any interested person requests to publish the report on the settlement of accounts, publish it. [This Article Newly Inserted on Sep. 19, 2003]

Article 36 (Audit)

The head of a university shall have his/her staff or external experts to audit the state of assets and accounting of the board of industry-academic cooperation not less than once every year as prescribed by the school regulations. [This Article Newly Inserted on Sep. 19, 2003]

Article 36-2 (Investment in Cash or Kind Other than Technologies) (1) The term "cases as determined by the Presidential Decree" in the proviso of Article 36-2 (2) 3 of the Act mean the case where it is difficult to establish or manage the technology holding company when the board of industry-academic cooperation makes investment only in kind of technology in excess of 50/100 of the capital. (2) In the case of investment in cash or in kinds other than technologies under Article 36-2 (2) 3 of the Act by a board of industry-academic cooperation, the equity of cash and kinds other than technologies shall not exceed the equity held by the board of industry-academic cooperation concerned in the kind of technologies. (3) Private investors or institutions may invest in a technology holding company within the scope not exceeding 50/100 of the capital (excluding stocks without voting rights) of the technology holding company.

[This Article Newly Inserted on Jan. 31, 2008]

Article 36-3 (Requirements for Establishing Technology Holding Company) The term "other standards as prescribed by the Presidential Decree" in Article 36-2 (2) 4 of the Act mean the following requirements:

1. It shall have one or more full-time experts; and

2. It shall have an area for its exclusive use. [This Article Newly Inserted on Jan. 31, 2008]

Article 36-4 (Functions of Technology Holding Company) The term "business as determined by the Presidential Decree" in Article 36-2 (4) of the Act means businesses of the following subparagraphs:

1. Consultation on technology and management of the affiliated companies;

2. Support for the initial public offering of the affiliated companies;

3. Merger of an affiliated company with another company, sale of the whole or part of affiliated company stocks, transfer of the whole or part of businesses of an affiliated company, division of an affiliated company, etc.;

4. Support for financing of affiliated companies;

5. Transfer of technologies held by the a technology holding company to its affiliated company and commercialization of such technology, and promotion of such transfer and commercialization;

6. Publicity, training and marketing of the affiliated companies; and

7. Mutual cooperation among the cooperative research center, start-up business promotion center, laboratory factory, and enterprises and research institutes established and operated at the industrial technology complex or school site as provided in subparagraphs 4 through 8 of Article 26.

[This Article Newly Inserted on Jan. 31, 2008]

Article 36-5 (Cases of Exemption from Obligation to Hold Stocks of Affiliated Company)

The term "cases as determined by the Presidential Decree" in the proviso of Article 36-3 (4) of the Act mean the following cases:

1. Where one year has not passed yet since the technology holding company failed to meet the minimum limit for holding stocks of its affiliated company for the reason of transfer of its equity, etc.;

2. Where one year has not passed yet since the technology holding company failed to meet the minimum limit for holding stocks of its affiliated company for the reason of merger of the affiliated company with another company;

3. Where one year has not passed yet since the technology holding company failed to meet the minimum limit for holding stocks of its affiliated company, as the affiliated company allocated shares preferentially to the members of an employee stock ownership association pursuant to Article 165-7 of the Act on Capital Market and Financial Investment Business in the course of recruiting or selling its shares; or

4. Where one year has not passed yet since the technology holding company failed to meet the minimum limit for holding stocks of its affiliated company as the conversion was demanded or the preemptive rights were exercised for convertible bonds or bonds with preemptive rights that the affiliated company issued pursuant to Article 513 or 516- 2 of the Commercial Act.

[This Article Newly Inserted on Jan. 31, 2008]

Article 36-6 (Operations for Use of Dividends)

The term "operations directly related with research activities as determined by the Presidential Decree" in the proviso of Article 36-5 of the Act mean the following functions:

1. Purchase, operation, maintenance and repair of research facilities and equipment;

2. Planning of research and development; and

3. Assessment of and remuneration for results of research and development. [This Article Newly Inserted on Jan. 31, 2008]

Article 36-7 (Concurrent Office and Suspension from Service of School Officials of Industrial Education Institution)

Holding concurrent jobs and suspension from service of school officials of the industrial education institution under Article 36-6 (1) of the Act shall be in accordance with the procedure as determined by the head of the institution to which they belong. [This Article Newly Inserted on Jan. 31, 2008]

Article 37 (Cooperative Research Institutes)

(1) The founder and manager of a university may have the State, local government, government-contributed research institution, industrial enterprise, etc. to build permanent facilities such as research rooms, laboratory rooms, accommodations for researchers, etc. on the campus of his/her university in accordance with Article 37 (1) of the Act.

(2) The founder and manager of a national university or a private university shall, when he/she intends to set up any cooperative research institute on the campus of a university in accordance with Article 37 (1) of the Act, hear the opinion of the head of the university thereabout in advance, and the founder and manager of a public university shall, if he/she intends to set up any cooperative research institute on the campus of his/her university, undergo deliberation by the Public Property Council under Article 16 (1) of the Public Properties and Articles Management Act after hearing the opinions of the head of the university in advance. [This Article Newly Inserted on Sep. 19, 2003]

CHAPTER VI SUPPLEMENTARY PROVISIONS

Article 38 (Promotion of Private Technical Academies, and Others) (1) The State and local governments may provide the students of the private technical academies pursuant to Article 42 of the Act with subsidies for the educational expenses such as lecture fees and expenses of teaching materials, within the limit of the budget.

(2) The subsidies for the lecture fees or the expenses of teaching materials referred to in paragraph (1) shall be provided only when the State and local governments have entrusted the education of the students to the founders and managers of the academies.

ADDENDA (Enforcement Decree of the Act on Capital Market and Financial Investment Business) Article 1 (Enforcement Date)

This Decree shall enter into force on Feb. 4, 2009. Article 2: Omitted

Article 3 (Amendment of Other Acts)

(1) through (3): Omitted

(4) Part of the Enforcement Decree of the Promotion of Industrial Education and Industry-Academy Cooperation Act shall be amended as follows: "Article 191-7 of the Securities and Exchange Act" in subparagraph 3 of Article 36- 5 shall be amended to "Article 165-7 of the Act on Capital Market and Financial Investment Business".

Article 4: Omitted