Professional Documents
Culture Documents
CHAPTER I
GENERAL PROVISIONS
Article 1 (Purpose)
The purpose of this Act is to contribute to the growth of the national economy by promoting
foreign trade, establishing a fair trade system, maintaining international balance of payments
and expanding commerce.
Article 2 (Definitions)
The terms as used in this Act shall have the meanings indicated below:
1. The term trade means the exportation and importation of those falling under any
of the following items (hereinafter referred to as goods, etc.):
(a) Goods;
(b) Services prescribed by Presidential Decree;
(c) Intangible goods in an electronic form prescribed by Presidential Decree;
2. The term goods means movables, which exclude those of the following items:
(a) Means of payment as defined in the Foreign Exchange Transactions Act;
(b) Securities as defined in the Foreign Exchange Transactions Act;
(c) Documents that embody any of the claims defined in the Foreign Exchange
Transactions Act;
3. The term trader means any person who delegates or conducts acts for the exportation
and importation of goods, in whole or in part, such as a person who engages in
exportation or importation, a person to whom a foreign importer or exporter delegates
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Presidential Decree, if considered necessary for the promotion of trade under paragraph
(1): <Amended by Act No. 8852, Feb. 29, 2008>
1. A person who engages in a business of advisory services, guidance services, overseas
advertising, exhibitions, training, arranging business talks, etc. for promotion of trade;
2. A person who has established and managed a facility related to trade, including a
trade exhibition center and a trade training center;
3. A person who has established and managed a platform for the scientific processing
of the business affairs relating to trade.
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1. In case of war, commotion, or natural disaster in the Republic of Korea or any trading
partner country (hereinafter referred to as trading partner country);
2. When any trading partner country fails to respect any right or interest of the Republic
of Korea as provided for in a treaty or any of the generally accepted principles of
international law;
3. When any trading partner country imposes an unfair or discriminatory burden or
restriction upon Korean trade;
4. When it is necessary to perform duties to maintain international peace and security
under treaties on trade entered into and promulgated pursuant to the Constitution of
the Republic of Korea and generally accepted principles of international law;
5. When it is necessary for protecting and conserving life, health, and safety of people,
and life and health of animals and plants as well as the environment and domestic
resources.
CHAPTER II
PROMOTION OF COMMERCE
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paragraph (1), the Minister of Knowledge Economy shall hear the opinions of the
Special Metropolitan City Mayor, a Metropolitan City Mayor, a Do Governor, or the
Governor of a Special Self-Governing Province (hereinafter referred to as the
Mayor/Do Governor), and shall notify the Mayor/Do Governor of the plan, once
such implementation plan for the promotion of commerce is established. The same
shall also apply to any revision to the plan. <Amended by Act No. 8852, Feb. 29,
2008>
(6) The Mayor/Do Governor shall, upon receiving the notice of the implementation plan
for promotion of commerce pursuant to paragraph (5), establish and implement the
regional implementation plan for promotion of commerce appropriate for the region
within his/her jurisdiction.
(7) The Mayor/Do Governor shall notify the Minister of Knowledge Economy of his/her
regional implementation plan for promotion of commerce, once such plan is established
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pursuant to paragraph (6). The same shall also apply to any revisions to such plan.
<Amended by Act No. 8852, Feb. 29, 2008>
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trade under paragraph (1) in performing his/her duty, shall provide or divulge the
corporate information, which is deemed to need confidentiality, such as the business
secret of a corporation, from among the data he/she has acquired, to other persons,
or use them for any other purpose, without consent of the provider of such information.
[This Article Wholly Amended by Act No. 9630, Apr. 22, 2009]
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imported without approval (refers to goods, falling under the main sentence of Article
11 (2)) constitute any of the goods, set forth in the proviso to Article 11 (2). <Amended
by Act No. 8852, Feb. 29, 2008>
SECTION 2
Article 16 (Import Approval for Raw Materials and Equipment for Earning
Foreign Currencies.)
(1) The Minister of Knowledge Economy may not apply the provisions of Article 11
(4) to goods, imported for earning foreign currencies including raw materials,
machinery, and equipment (hereinafter referred to as materials and equipment).
Provided, that the same shall not apply where it is necessary to promote the use of
domestic raw materials and equipment. <Amended by Act No. 8852, Feb. 29, 2008>
(2) The Minister of Knowledge Economy may specify the scope, items, and quantity of
the materials and equipment under paragraph (1) to issue a public notice thereof.
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material or equipment for earning foreign currencies in order to benefit from the
application of zero-rate tax under Article 11 (1) 4 of the Value-Added Tax Act, the
Minister of Knowledge Economy may issue a document certifying the intended purpose
of such purchase (hereinafter referred to as purchase certificate). <Amended by Act
No. 8852, Feb. 29, 2008>
(2) As regards the person to whom a purchase certificate is issued, the Minister of
Knowledge Economy shall perform follow-up management to track whether the
material or equipment has been purchased for the purpose of earning foreign currencies.
<Amended by Act No. 8852, Feb. 29, 2008>
(3) Necessary matters concerning the procedures for application and issuance of the
purchase certificates under paragraphs (1) and (2), and the follow-up management
thereof shall be prescribed by Presidential Decree.
SECTION 3
by Presidential Decree. <Amended by Act No. 8852, Feb. 29, 2008; Act No. 9630,
Apr. 22, 2009>
(2) Any person, who intends to export any of the goods designated and publicly notified
pursuant to paragraph (1) (hereinafter referred to as strategic items), shall obtain
a permit (hereinafter referred to as export permit) from the Minister of Knowledge
Economy or the head of the relevant administrative agency under conditions prescribed
by Presidential Decree. <Amended by Act No. 8852, Feb. 29, 2008>
(3) Any person, who intends to export any goods that do not fall within the category
of any strategic items but have high potential of being appropriated for manufacturing,
developing, using, or storing weapons of mass destruction or missiles as carriers of
such weapons (hereinafter referred to as weapons of mass destruction), shall obtain
a permit (hereinafter referred to as situational permit) from the Minister of Knowledge
Economy or the head of the relevant administrative agency under conditions prescribed
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by Presidential Decree, if the person becomes aware that the importer or the end user
of the goods has intent to appropriate the goods for manufacturing, developing, using,
or storing weapons of mass destruction, or suspects that there is probably such intent
on grounds that the case of exportation falls under any of the following subparagraphs:
<Amended by Act No. 8852, Feb. 29, 2008>
1. The importer evades furnishing necessary information concerning the end use of
the goods;
2. The goods to be exported have nothing to do with the field of business of the
end user;
3. There is a substantial disparity in technical level between the goods to be exported
and those of the importing country;
4. The end user has no career background of engaging in the field of business to
which the goods are expected to be applied;
5. The end user has no expertise regarding the goods, nevertheless, insists on the
exportation of the goods;
6. The end user declines any service for installing, maintaining, or training for the
goods;
7. The final consignee of the goods is a transporter;
8. The terms and conditions on pricing or payment for the goods deviate from ordinary
practices;
9. The delivery term for the goods is deviant from ordinary terms;
10. The transportation route for the goods deviates from ordinary routes;
11. It is not clear whether the goods will be used within the importing country or
will be re-exported abroad;
12. A demand for keeping confidential the information about the goods the final destination
exceeds ordinary standards;
13. Any other case which the Minister of Knowledge Economy or the head of the
relevant administrative agency determines and publicly notifies that require an
export permit for a prescribed period of time due to any change in international
situation, the momentary occurrence of a cause or an event that causes harm to
national security.
(4) The Minister of Knowledge Economy or the head of the relevant administrative agency
may, upon receiving an application for an export permit or situational permit, grant
such export permit or situational permit in accordance with the guidelines prescribed
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Decree. In such cases, the Minister of Knowledge Economy or the head of the relevant
administrative agency may delegate or entrust such determination to the president of
the Korea Strategic Trade Institute under Article 29 or the relevant specialized
institution determined by Presidential Decree. <Amended by Act No. 8852, Feb. 29,
2008; Act No. 9630, Apr. 22, 2009>
(3) Each trader shall keep the following documents for five years: <Amended by Act
No. 9630, Apr. 22, 2009>
1. Documents concerning the determination on the cases for which an application
for determination under paragraph (2) has been filed;
2. Documents concerning the export permit, situational permit or brokerage permit
granted to exporters who have exported any strategic item or any goods subject
to situational permit or brokers who mediated a transaction of any strategic items;
3. Other documents specified by Presidential Decree.
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sentence of paragraph (1), grant the brokerage permission in compliance with the
guidelines prescribed by Presidential Decree for maintaining international peace and
security as well as national security. <Amended by Act No. 8852, Feb. 29, 2008>
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2008>
(3) Self-compliance traders shall submit a report on the performance of exportation of
strategic items, under their self-controlling management pursuant to paragraph (2) to
the Minister of Knowledge Economy, under conditions prescribed by Presidential
Decree. <Amended by Act No. 8852, Feb. 29, 2008>
(4) The Minister of Knowledge Economy may revoke the designation of a self-compliance
trader, if a trader falls under any of the following subparagraphs: <Amended by Act
No. 8852, Feb. 29, 2008; Act No. 9630, Apr. 22, 2009>
1. If it has failed to maintain the abilities prescribed by Presidential Decree pursuant
to paragraph (1);
2. If it has exported a strategic item intentionally or by gross negligence without an
export permit under Article 19 (2);
3. If it has exported any goods intentionally or by gross negligence without a
situational permit under Article 19 (3);
4. If it intentionally or by gross negligence failed to perform its duty to keep documents
under Article 20 (3);
5. If it intentionally or by gross negligence acted as a broker for the transactions
of any strategic item without a brokerage permit under Article 24; and
6. If it has failed to perform its duty to report under paragraph (3).
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(3) The Korea Strategic Trade Institute shall have executives and employees under
conditions prescribed by its Articles of incorporation.
(4) The Korea Strategic Trade Institute shall be duly formed upon the completion of the
registration of its incorporation at the registry office having jurisdiction over its
principal place of business.
(5) The Korea Strategic Trade Institute shall perform the following affairs in compliance
with the Governments policy on management of strategic items: <Amended by Act
No. 9630, Apr. 22, 2009>
1. Transactions pertaining to determination under the latter part of Article 20 (2);
2. Transctions pertaining to operation of the information system for management of
exportation and importation of strategic items under Article 28 (1);
3. Transactions pertaining to education and training of exporters and importers of
strategic items;
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2. A person who has exported any goods subject to a situational permit under Article
19 (3) without such situational permit;
3. A person who has violated any of the principles of the multilateral international
export control system under Article 19 (1) governing the exportation or importation
of strategic items, and who is prescribed by Presidential Decree.
(2) The head of the relevant administrative agency shall immediately notify the Minister
of Knowledge Economy, if he/she discovers a person who falls under any of the
circumstances mentioned in subparagraph of paragraph (1). <Amended by Act No.
8852, Feb. 29, 2008>
(3) The Minister of Knowledge Economy or the head of the relevant administrative agency
may publicly notify the list of people against whom a restriction of exportation and
importation of strategic items has been placed pursuant to paragraph (1) and the people
against whom any foreign government has placed a restriction on exportation and
importation of strategic items pursuant to its laws and regulations, and the details of
such restriction. <Amended by Act No. 8852, Feb. 29, 2008; Act No. 9630, Apr.
22, 2009>
SECTION 4
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trade system and protect producers and consumers, shall indicate the origin of such
goods. <Amended, Feb. 29, 2008, Apr. 5, 2010>
(2) Any person who has imported goods requiring indication of origin processed by simple
works as prescribed by Presidential Decree and thereby mutilates or alters the
indication of origin of the goods (excluding cases where paragraph (4) applies to traders
or distributors of goods) shall indicate the original origin to the goods processed by
simple works. In such cases, the same shall not apply where any other Act and
subordinate statute provides for any other standard for imported goods processed by
simple works. <Newly inserted, Apr. 5, 2010>
(3) The methods of indication and verification of origin under paragraphs (1) and (2),
and other matters necessary for such indication shall be prescribed by Presidential
Decree. <Amended, Apr. 5, 2010>
(4) No trader or distributor of goods shall commit any act falling under any of the
following subparagraphs: Provided, That subparagraph 3 shall apply only to traders:
<Amended, Apr. 5, 2010>
1. Falsely indicating an origin or attaching any misleading indication of origin;
2. Mutilating or altering an indication of origin; and
3. Failing to indicate the origin of goods requiring indication of origin.
(5) The Minister of Knowledge Economy may inspect the imported goods and related
documents as specified by Presidential Decree if he/she finds it necessary to ascertain
whether there is a violation of any provisions of paragraphs (1) through (4). <Amended,
Feb. 29, 2008, Apr. 5, 2010>
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(6) The Minister of Knowledge Economy may, if he/she discovers a violation in the means
of indicating the origin under paragraph (3) or a violation of paragraph (2) or (4),
issue an order to take corrective measures as prescribed by Presidential Decree, including
measures to restore the original state, or impose a penalty not exceeding 300 million
won on such offender. <Amended, Feb. 29, 2008, Apr. 22, 2009, Apr. 5, 2010>
(7) The amount of penalties to be imposed depending upon the types and severity of
offences subject to the imposition of penalties under paragraph (6), and other necessary
matters shall be prescribed by Presidential Decree. <Amended, Apr. 5, 2010>
(8) If a person who shall pay a penalty under paragraph (6) fails to pay such penalty
by the deadline for payment, the Minister of Knowledge Economy shall collect it
in accordance with the precedents for the disposition on default on national taxes.
<Amended, Feb. 29, 2008, Apr. 5, 2010>
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assessment of origin of domestically produced goods under paragraph (1), once such
standards are established. <Amended, Feb. 29, 2008>
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(7) The Minister of Knowledge Economy may, if considered necessary for making a
decision as to whether to take the measures to impose limitations on the quantity
of imports, request the heads of the relevant administrative agencies, and interested
parties to furnish him/her with related data and render cooperation as required.
<Amended by Act No. 8852, Feb. 29, 2008>
(8) As regards to goods previously subjected to limitations on the quantity of imports,
or the goods subject to the emergency tariffs under Article 65 of the Customs Act
(hereinafter referred to as emergency tariff) or the provisional emergency tariffs
under Article 66 of the Customs Act (hereinafter referred to as provisional emergency
tariff), the Minister of Knowledge Economy shall not enforce any further limitation
on the quantity of imports before the expiration of the time period equivalent to the
time period set for such previous limitations or such imposition of the emergency
tariff or the provisional emergency tariff (or two years if the time period set for the
application of such limitations or imposition is less than two years) beginning on the
expiry date of the time period set for the application of such limitations or the
imposition: Provided, That the limitations on the quantity of imports may be
implemented for a time period not exceeding 180 days, only if all the requirements
set forth in the following subparagraphs are satisfied: <Amended by Act No. 8852,
Feb. 29, 2008>
1. One year has lapsed since the limitations on the quantity of imports were implemented
or the emergency tariff or provisional emergency tariff was first imposed on the specific
goods;
05 _ Laws Concerning Economic Investment
2. Such limitations on the quantity of imports have been implemented twice or less
or such emergency tariff has been imposed twice or less during the preceding five
years, counting retroactively from the date when the intended limitations on the
quantity of imports are about to be implemented again.
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(2) In extending the time period for the application of limitations on the quantity of imports
pursuant to paragraph (1), the aggregate of the time period for the application of the
limitations on the quantity of imports, the imposition of emergency tariffs or
provisional emergency tariffs shall not exceed eight years.
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the period for investigation. In such cases, the time period for the application of the
provisional special limitations on the quantity of imports shall not exceed 200 days.
<Amended by Act No. 8852, Feb. 29, 2008>
(4) The Minister of Knowledge Economy shall lift the provisional special limitations on
the quantity of imports upon receiving a notice from the Korea Trade Commission
that its judgment as a result of its investigations under paragraph (1) 1 is that, the
domestic market has not been disrupted, or is not likely to be disrupted. <Amended
by Act No. 8852, Feb. 29, 2008>
(5) The Minister of Knowledge Economy shall lift the special limitations on the quantity
of imports within 30 days from the cessation of the measures pertaining to such
limitations upon the termination of measures taken by any other member state of the
World Trade Organization, which has triggered the special limitations on the quantity
of imports enforced pursuant to paragraph (1) 2. <Amended by Act No. 8852, Feb.
29, 2008>
(6) In implementing the special limitations or the provisional special limitations on the
quantity of imports, the Minister of Knowledge Economy shall issue a public notice
of the goods subject to the limitations, the quantity thereof, and the applicable time
period. <Amended by Act No. 8852, Feb. 29, 2008>
(7) As to the implementation of special limitations on the quantity of imports, the
provisions of Articles 39 (2), (4), and (7), and 40 (1) shall apply mutatis mutandis.
(8) As to the implementation of provisional special limitations on the quantity of imports,
the provisions of Article 39 (2), (4), and (7) shall apply mutatis mutandis.
05 _ Laws Concerning Economic Investment
CHAPTER V
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exported goods, if any of the following causes or events occurs: <Amended by Act
No. 8852, Feb. 29, 2008>
1. When it is necessary for the fulfillment of the obligations under treaties signed
and promulgated pursuant to the Constitution of the Republic of Korea and generally
accepted principles of international laws;
2. When the transaction at issue violates any relevant law of the Republic of Korea
or the trading partner country;
3. When it is likely to undermine fair competition in exportation of goods, or when
it is necessary for preventing an act of undermining the credibility in the
international market, as set forth in any of the following items:
(a) When a trader excludes other traders unfairly in connection with exportation
of goods;
(b) When a trader unfairly induces or coerces a trading partner of another trader
to discontinue transactions with the other trader in connection with the
exportation of goods;
(c) When a trader unfairly interferes with overseas business activities of another
trader in connection with exportation of goods.
(2) The Minister of Knowledge Economy shall consider the following matters in issuing
an order of coordination pursuant to paragraph (1): <Amended by Act No. 8852, Feb.
29, 2008>
1. To contribute to the stabilization of the basis for exportation, or the development
of new products or new overseas markets;
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shall not apply as long as such activities in the course of execution of business affairs
are considered fair and just.
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authority has been delegated or entrusted in relation to the business affairs delegated
or entrusted pursuant to paragraph (1). <Amended by Act No. 8852, Feb. 29, 2008>
(3) The Minister of Knowledge Economy may request any person to whom his/her
authority has been delegated or entrusted to furnish him/her with necessary data in
relation to the business affairs delegated or entrusted pursuant to paragraph (1).
<Amended by Act No. 8852, Feb. 29, 2008>
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Anyone who falls under any of the following subparagraphs shall be punished by
imprisonment for not more than three years or by a fine not exceeding 30 million won:
<Amended, Dec. 19, 2008, Apr. 22, 2009>
1. Any person who has provided or divulged the confidential corporate information which
he/she has acquired in the performance of his/her duties to other persons, or used such
information for any other purpose in violation of Article 9 (2);
2. Any person who has exported or imported goods without obtaining approval or revised
approval under Article 11 (2) or (3);
3. Any person who has exported or imported any goods by obtaining approval or revised
approval under Article 11 (2) or (3) or being exempted from such approval or revised
approval by false or other fraudulent means;
4. Any person who has failed to fulfill his/her duty to earn the foreign currencies equivalent
to the value of his/her imports as provided for in the main clause of Article 16 (3)
(including cases applied mutatis mutandis in Article 17 (3));
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5. Any person who has used any material or equipment, or any goods manufactured with
such material or equipment for any purpose other than its originally intended purpose
without approval obtained under the main clauses of Article 17 (1);
6. Any person who has transferred any material or equipment, or any goods manufactured
with such material or equipment to another person without approval under Article 17
(2);
7. Any person who has breached his/her duty to not disclose confidential information
under Article 27;
8. Any person who has obtained approval or revised approval under Article 32 by false
or other fraudulent means;
9. Deleted; <Apr. 5, 2010>
10. Deleted; <Apr. 5, 2010>
11. Deleted. <Apr. 5, 2010>
Article 56 (Negligence)
Any person who commits any offence that falls under subparagraph 1 or 2 of Article
53-2 by gross negligence shall be punished by a fine not exceeding 20 million won.
<Amended, Dec. 19, 2008, Apr. 22, 2009, Apr. 5, 2010>
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(2) Any person who falls under any of the following subparagraphs shall be punished
by a fine for negligence not exceeding 10 million won: <Amended, Apr. 22, 2009,
Apr. 5, 2010>
1. Any person who has breached his/her duty to keep documents in accordance with
Article 20 (3);
2. Any trader or distributer who has distributed any goods for sale without an
indication of origin under Article 33 (1) when he/she imports such goods, which
shall bear an indication of origin, and trades them after dividing, re-packaging,
or having them processed by simple works or trades them at piece-rates or in bulk;
3. Any person who has rejected, obstructed, or evaded an inspection under Article
33 (4); or
4. Any person who has failed to carry out an order to take a training course under
Article 49.
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(3) Fine for negligence under paragraphs (1) and (2) shall be imposed and collected by
the Minister of Knowledge Economy or the head of the appropriate administrative
agency under conditions prescribed by Presidential Decree. <Amended, Feb. 29, 2008,
Apr. 22, 2009>
(4) Through (6) Deleted. <Apr. 22, 2009>
ADDENDA
(1) (Effective Date) This Act shall take effect six months after the date of its promulgation.
(2) (Transitional Measure) Acts committed before this Act takes effect shall be treated
according to the former provisions in applying penal provisions.
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