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Article 1 (Purpose) |
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The purpose of this Decree is to provide for matters delegated by the Subsidy Management Act and matters necessary for the enforcement thereof.
[This Article Wholly Amended by Presidential Decree No. 23264, Oct. 26, 2011]
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Article 2 (Designation of Benefits) |
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Benefits, other than subsidies and financial aid referred to in subparagraph 1 of Article 2 of the Subsidy Management Act (hereinafter referred to as the "Act"), are income subsidies referred to in Article 3 of the Regulations on the Implementation of Direct Payment Systems for Agricultural Producers.
[This Article Wholly Amended by Presidential Decree No. 23264, Oct. 26, 2011]
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Article 3 (Allocation of Budget Subsidies for Programs without Budget Proposal) |
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In any of the following cases, the State may allocate a budget subsidy for any program without a budget proposal pursuant to Article 5 of the Act:
1. |
If the State grants a subsidy for all expenses incurred in relation to the program; |
2. |
If it is inevitable to grant a subsidy due to unexpected reasons, such as occurrence of a natural disaster; |
3. |
If it is deemed inevitable by the Minister of Strategy and Finance to grant a subsidy for the implementation of major national policies. |
[This Article Wholly Amended by Presidential Decree No. 23264, Oct. 26, 2011]
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Article 4 (Scope of Programs Eligible for Subsidies and Basic Subsidy Rate) |
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(1) |
The scope of a local government's program eligible for subsidies under subparagraph 1 of Article 9 of the Act and the basic subsidy rate under subparagraph 2 of the same Article (hereinafter referred to as "basic subsidy rate") shall be as set forth in attached Table 1: Provided, That a local government's programs set forth in attached Table 2 shall be excluded from the eligibility. |
(2) |
The basic subsidy rate shall be the ratio of national subsidies to the aggregate of the national subsidies, the charges to be borne by a local government, borrowings from government funds and the amount to be borne by a beneficiary, along with other amounts of money determined by the Minister of Strategy and Finance for the relevant fiscal year. |
[This Article Wholly Amended by Presidential Decree No. 23264, Oct. 26, 2011]
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Article 5 (Criteria for Application of Differential Subsidy Rates) |
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(1) |
A differential subsidy rate which includes a certain rate in a basic subsidy rate under Article 10 of the Act (hereinafter referred to as "increased subsidy rate") shall be determined by adding either 20, 15 or ten percent to the basic subsidy rate, and a differential subsidy rate which subtracts a certain rate from a basic subsidy rate (hereinafter referred to as "reduced subsidy rate") shall be determined by subtracting either 20, 15, or ten percent from the basic subsidy rate; the criteria for the application and the detailed formula for each base shall be as set forth in attached Table 3. |
(2) |
An increased subsidy rate shall only apply to a local government in extremely difficult financial circumstances. |
(3) |
Where subsidies are granted to a local government that has requested the application of an increased subsidy rate, the Minister of Strategy and Finance may provide the relevant local government with guidelines necessary for its financial management. |
[This Article Wholly Amended by Presidential Decree No. 23264, Oct. 26, 2011]
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Article 6 (Scope of Programs subject to Assessment of Subsidy Program Operation) |
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[This Article Newly Inserted by Presidential Decree No. 23264, Oct. 26, 2011]
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Article 6-2 (Organization and Operation of Subsidy Program Assessment Board) |
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(1) |
The Subsidy Program Assessment Board referred to in Article 15 (2) and (4) of the Act (hereinafter referred to as the "Board") shall consist of members nominated by the Minister of Strategy and Finance from among the following persons: |
1. |
A faculty member at least at the rank of an assistant professor who has expertise in subsidy management and a subsidy-related area; |
2. |
A doctorate degree holder who belongs to a government-funded research institution and has expertise in subsidies; |
3. |
An attorney-at-law, certified public accountant, certified tax accountant or financial expert who has at least five years of work experience; |
4. |
A person who has abundant expertise and experience relating to research and assessment of the operation of subsidy programs. |
(2) |
The Board may request the head of a central government agency who implements a subsidy program subject to assessment to submit documents and information related to the assessment of the subsidy program. In such cases, the head of the relevant central government agency shall comply with such request except in extenuating circumstances. |
(3) |
Except as otherwise provided for expressly in paragraphs (1) and (2), matters necessary for the organization and operation of the Board shall be determined by the Minister of Strategy and Finance. |
[This Article Newly Inserted by Presidential Decree No. 23264, Oct. 26, 2011]
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Article 7 (Applications for Granting of Subsidies) |
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(1) |
A written application for granting of subsidies under Article 16 of the Act shall state all of the following matters: |
1. |
Name and address of an applicant; |
2. |
Objectives and details of a subsidy program; |
3. |
Estimated expenses of a subsidy program and the proposed amount of subsidies; |
4. |
Amount to be borne by an applicant; |
5. |
Scheduled commencement and completion dates of a subsidy program; |
6. |
Other matters determined by the head of a central government agency. |
(2) |
A written application for grant of subsidies under paragraph (1) shall be accompanied by a program plan stating the following matters: Provided, That all, or some, of the following matters may be omitted from a program plan if such omission is approved by the head of the relevant central government agency: |
1. |
Summary of an applicant's main business; |
2. |
Information concerning assets and liabilities of an applicant; |
3. |
Information concerning action plans for a subsidy program; |
4. |
Basis for the calculation of subsidies applied; |
5. |
Methods of using expenses incurred in relation to a subsidy program; |
6. |
Names of the parties or entities bearing the expenses incurred in relation to a subsidy program, other than a portion covered by subsidies, the amount to be borne, and the methods of bearing such expenses; |
7. |
Effects of a subsidy program; |
8. |
Matters concerning the amount of revenues to be generated from the implementation of a subsidy program; |
9. |
Other matters determined by the head of the relevant central government agency. |
[This Article Wholly Amended by Presidential Decree No. 23264, Oct. 26, 2011]
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Article 8 (Standards, etc. for Integration of Subsidies) |
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(1) |
Standards for the amount to be granted upon integrating various items of expenses incurred in relation to each unit program pursuant to Article 20 (2) of the Act shall be less than five million won per year for each subsidy program operator. |
(2) |
If the Minister of Strategy and Finance intends to integrate and manage budgets for subsidy programs with similar purposes pursuant to Article 20 (3) of the Act, he/she shall take into consideration any possibility to transfer the amount allocated for spending between subsidy programs, efficiency of integrated management of subsidy budgets, etc. |
(3) |
The extent of the possibility to transfer the mount allocated for spending between subsidy programs, detailed methods and procedures for integrated management, etc. in accordance with paragraph (2) shall be determined by the Minister of Strategy and Finance. |
[This Article Wholly Amended by Presidential Decree No. 23264, Oct. 26, 2011]
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Article 9 (Revocation of Decisions to Grant Subsidies due to Change in Circumstances) |
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1. |
Where land, important facilities, etc. necessary for the implementation of a subsidy program becomes unavailable due to any cause not attributable to the relevant subsidy program operator or indirect subsidy program operator; |
2. |
Where expenses incurred in implementing a subsidy program or indirect subsidy program, other than a portion covered by the subsidies or indirect subsidies (excluding those expenses borne by the subsidy program operator or indirect subsidy program operator), are not duly financed due to any cause not attributable to the subsidy program operator or indirect subsidy program operator. |
[This Article Wholly Amended by Presidential Decree No. 23264, Oct. 26, 2011]
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Article 10 (Subsidization of Affairs or Projects that become Specifically Necessary due to Revocation of Decision to Grant Subsidies) |
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1. |
Expenses to be incurred in removing machines, equipment or temporary structures related to a subsidy program and other remaining work; |
2. |
Compensation to be paid when a contract for the implementation of a subsidy program is cancelled. |
[This Article Wholly Amended by Presidential Decree No. 23264, Oct. 26, 2011]
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Article 10-2 (Keeping of Data concerning Subsidy Programs) |
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(1) |
The period for keeping data concerning the implementation of a subsidy program or indirect subsidy program under Article 25 (3) of the Act shall be five years. |
[This Article Newly Inserted by Presidential Decree No. 23264, Oct. 26, 2011]
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Article 11 (Temporary Suspension of Implementation of Subsidy Programs) |
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Where the head of a central government agency temporarily suspends the implementation of a subsidy program pursuant to Article 26 (2) of the Act, he/she shall require the subsidy program operator to take measures tailored to details and conditions of the decision to grant the relevant subsidies within a specified period. In such cases, he/she shall clearly notify the subsidy program operator that the decision to grant the relevant subsidies shall be entirely or partially revoked pursuant to Article 30 (1) of the Act unless he/she takes such measures.
[This Article Wholly Amended by Presidential Decree No. 23264, Oct. 26, 2011]
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Article 12 (Reporting on Performance of Subsidy Programs) |
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(1) |
Any subsidy program operator or indirect subsidy program operator shall submit a performance report on the subsidy program or indirect subsidy program pursuant to Article 27 (1) of the Act within two months (three months in cases of a subsidy program operator who is the head of a local government, or an indirect subsidy program operator) after the reasons for reporting the performance occur. |
(2) |
When submitting a performance report at the end of a fiscal year pursuant to Article 27 (1) of the Act, a subsidy program operator or indirect subsidy program operator shall also submit an action plan for the subsidy program for the following fiscal year and thereafter, if details of the decision to grant the subsidies do not comply with such action plan. |
[This Article Wholly Amended by Presidential Decree No. 23264, Oct. 26, 2011]
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Article 13 (Return, etc. of Subsidies) |
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(1) |
"Interest accrued due to extenuating circumstances prescribed by Presidential Decree" in the proviso to Article 31 (2) of the Act means any of the following interest: |
1. |
Interest accrued from subsidies spent within one month from the date of receipt; |
2. |
Interest accrued during the period in which a subsidy program is suspended due to a natural disaster or other grounds equivalent thereto; |
3. |
Interest accrued during the period in which the method of implementing a subsidy program needs to be improved in accordance with Acts or subordinate statutes amended after the granting of such subsidies: |
4. |
Interest accrued from subsidies granted by the head of a central government agency on a regular basis, regardless of whether a local government's proposal is submitted; |
5. |
Interest accrued under extenuating circumstances deemed by the Minister of Strategy and Finance in consideration of the characteristics of subsidy programs. |
(2) |
A subsidy program operator who intends to obtain approval to extend a deadline for the return of subsidies pursuant to Article 31 (3) of the Act shall apply for such approval of extension to the head of the relevant central government agency. |
(3) |
Where a subsidy program operator applies for approval of extension under paragraph (2), he/she shall submit a written application to the head of the relevant central government agency, along with documents stating the measures taken to attain the purposes of the granting of indirect subsidies related to his/her subsidy program, the reasons making it impractical to return the relevant subsidies, and other necessary references. |
[This Article Wholly Amended by Presidential Decree No. 23264, Oct. 26, 2011]
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Article 13-2 (Requirements, etc. to Use Surplus Subsidies) |
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(1) |
"Where the budget funds have been saved by the relevant local government's efforts" in the first sentence of Article 31 (4) of the Act means any of the following cases: |
1. |
Where a subsidy program cost is saved by using a new technology or method; |
2. |
Where a subsidy program cost is saved by improving the scheduled process or implementation methods; |
3. |
Where an ordinary expense is reduced by improving a routine work process; |
4. |
Where a small amount of subsidy remains after the implementation of a subsidy program or where it is determined by the Minister of Strategy and Finance. |
(2) |
Any of the following cases shall not be construed as a case where budget funds have been saved by the relevant local government's efforts pursuant to the first sentence of Article 31 (4) of the Act: |
1. |
Where expenditure naturally decreases due to outside factors, such as change of foreign exchange rates, interest rate and public charges; |
2. |
Where expenditure decreases due to the revocation or modification of an original plan; |
3. |
Where expenditure decreases due to the difference between expected demand and real demand; |
4. |
Where an unexpected change of circumstances occurs or where it is determined by the Minister of Strategy and Finance. |
(3) |
"Other subsidy programs with similar purposes" in the first sentence of Article 31 (4) of the Act means any subsidy program under the same category of a national financial management plan, among programs subsidized by the head of the same central government agency. |
(4) |
"Programs prescribed by Presidential Decree, such as new programs" in the first sentence of Article 31 (4) of the Act means any of the following programs: |
2. |
Non-subsidized programs listed in attached Table 2. |
(5) |
The head of a local government shall develop a use plan, including subject matter, amount (excluding ordinary expenses not directly related to the implementation of a subsidy program), timing, etc. of the use of the unreturned surplus under Article 31 (4) of the Act (hereafter referred to as "surplus" in this Article), and notify the head of the relevant central government agency of the use plan. |
(6) |
In principle, surplus shall be used in the year in which such surplus occurs: Provided, That if it is impracticable to use the surplus in the relevant year, the specific timing for use shall be included in the use plan developed under paragraph (5). |
(7) |
Documents stating the use of the surplus under the second sentence of Article 31 (4) of the Act shall include the following matters: |
1. |
The reason why surplus occurs and the calculation basis of an excess amount; |
2. |
Purposes and specifications of a subsidy program for which surplus is used, and the amount allocated for spending; |
3. |
Other matters determined by the head of the relevant central government agency. |
[This Article Wholly Amended by Presidential Decree No. 23264, Oct. 26, 2011]
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Article 14 (Recovery Procedures following Order to Return Subsidies) |
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Where the head of a central government agency recovers the subsidies which have been ordered to be returned under Article 33 (1) of the Act in the same manner as national taxes are recovered, he/she shall designate public officials to be in charge of collection affairs, from among the public officials under his/her jurisdiction.
[This Article Wholly Amended by Presidential Decree No. 23264, Oct. 26, 2011]
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Article 15 (Restrictions on Disposal of Property, etc. ) |
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(1) |
"Important property prescribed by Presidential decree" in Article 35 (1) of the Act means any of the following property (hereafter referred to as "important property" in this Article): |
1. |
Real estate and appurtenances attached thereto; |
2. |
Ships, buoys, floating piers, floating docks and appurtenances attached thereto; |
4. |
Other property deemed specifically necessary by the head of a central government agency to attain the purposes of the granting of subsidies. |
(2) |
Each subsidy program operator or indirect program operator shall record the current value and valuation of any important property specified by the Minister of Strategy and Finance in an accounting book pursuant to Article 35 (1) of the Act, and report it to the head of the relevant central government agency or the head of the relevant local government on a semiannual basis, along with the documents concerning the relevant subsidy program determined by the head of the said agency or government. |
(3) |
The head of a central government agency and the head of a local government shall publicly announce the current status of important property pursuant to Article 35 (2) of the Act by posting it on the website, etc. of the relevant agency or government. |
[This Article Wholly Amended by Presidential Decree No. 23264, Oct. 26, 2011]
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Article 16 (Unrestricted Disposal of Property) |
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In any of the following cases, activities under the proviso to the main body of Article 35 (3) of the Act may be allowed without approval from the head of a central government agency:
1. |
Where a subsidy program operator returns to the State, the full amount of subsidies, in compliance with Article 18 (2) of the Act; |
2. |
Where a period determined by the head of a central government agency in consideration of the purposes of the granting of subsidies and useful life of the relevant property has passed; |
3. |
Where a local government acquires the relevant property with subsidies or indirect subsidies: Provided, that if it is intended to dispose of the property, the period under subparagraph 2 for which has not passed, a subsidy program operator or indirect subsidy program consults with the head of the relevant central government agency. |
[This Article Wholly Amended by Presidential Decree No. 23264, Oct. 26, 2011]
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Article 17 (Delegation of Duties) |
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The head of a central government agency shall delegate to the head of a government agency under his/her jurisdiction or to the head of a local government the following duties prescribed and announced by the head of the relevant central government agency:
4. |
Receipt of a performance report on a subsidy program or indirect subsidy program referred to in Article 27 (1) of the Act; |
5. |
Review of performance of a subsidy program and determinations of final amounts of subsidies referred to in Article 28 of the Act; |
[This Article Wholly Amended by Presidential Decree No. 23264, Oct. 26, 2011]
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Article 18 (Payment of Monetary Rewards) |
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(1) |
If a report or accusation is filed pursuant to Article 39-2 (1) of the Act, the head of a central government agency shall decide whether he/she pays a monetary reward after verifying the details of the report or accusation, and shall give notice thereof to the informant or complainant. In such cases, notice to the informant or complainant shall be given after the completion of returning subsidies pursuant to Article 31 (1) of the Act. |
(2) |
The head of a central government agency shall pay a monetary reward to an informant or complainant within 60 days after giving notice under paragraph (1) in accordance with the standards for payment provided for in attached Table 4. |
(3) |
After a report or accusation has been filed pursuant to Article 39-2 (1) of the Act, no monetary reward shall be paid to the relevant informant or complainant. If at least two persons file a joint report or accusation, a monetary reward shall be paid to a designated representative. |
(4) |
Except as otherwise provided for in paragraphs (1) through (3), matters necessary for standards, methods, procedures, etc. for the payment of monetary rewards shall be determined by the Minister of Strategy and Finance. |
[This Article Newly Inserted by Presidential Decree No. 23264, Oct. 26, 2011]
ADDENDUM
This Decree shall enter into force on the date of its promulgation.
ADDENDUM<Presidential Decree No. 12400, Feb. 24, 1988>
This Decree shall enter into force on the date of its promulgation, but it shall take effect from January 1, 1988 and on.
ADDENDA<Presidential Decree No. 13063, Aug. 8, 1990>
Article 1 (Enforcement Date)
This Decree shall enter into force on the date of its promulgation. (Proviso Omitted. )
Article 2 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.
ADDENDUM<Presidential Decree No. 15188, Dec. 31, 1996>
This Decree shall enter into force on the date of its promulgation, but it shall begin to take effect from the 1997 budget.
ADDENDA<Presidential Decree No. 15265, Feb. 1, 1997>
(1) |
(Enforcement Date) This Decree shall enter into force on February 1, 1997. |
ADDENDA<Presidential Decree No. 15703, Feb. 28, 1998>
Article 1 (Enforcement Date)
This Decree shall enter into force on the date of its promulgation.
Articles 2 through 7 Omitted.
ADDENDA<Presidential Decree No. 16326, May 24, 1999>
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. 16523, Aug. 7, 1999>
Article 1 (Enforcement Date)
This Decree shall enter into force on the date of its promulgation. (Proviso Omitted. )
Articles 2 through 4 Omitted.
ADDENDA<Presidential Decree No. 16682, Dec. 31, 1999>
Article 1 (Enforcement Date)
This Decree shall enter into force on January 1, 2000.
Articles 2 through 4 Omitted.
ADDENDA<Presidential Decree No. 16923, Jul. 27, 2000>
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. 17057, Dec. 29, 2000>
(1) |
(Enforcement Date) This Decree shall enter into force on the date of its promulgation. |
(2) |
(Example of Application) This Decree shall take effect, beginning with the budget of the 2000 fiscal year. |
ADDENDUM<Presidential Decree No. 19030, Aug. 31, 2005>
This Decree shall enter into force on the date of its promulgation.
ADDENDUM<Presidential Decree No. 19481, May 22, 2006>
This Decree shall enter into force on the date of its promulgation.
ADDENDA<Presidential Decree No. 19513, Jun. 12, 2006>
Article 1 (Enforcement Date)
This Decree shall enter into force on July 1, 2006.
Articles 2 through 4 Omitted.
ADDENDA<Presidential Decree No. 20003, Apr. 12, 2007>
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. 20491, Dec. 28, 2007>
This Decree shall enter into force on January 1, 2008.
ADDENDA<Presidential Decree No. 20548, Jan. 15, 2008>
Article 1 (Enforcement Date)
This Decree shall enter into force on January 18, 2008.
Articles 2 and 3 Omitted.
ADDENDA<Presidential Decree No. 20720, Feb. 29, 2008>
Article 1 (Enforcement Date)
This Decree shall enter into force on the date of its promulgation. (Proviso Omitted. )
Articles 2 through 8 Omitted.
ADDENDUM<Presidential Decree No. 20989, Sep. 8, 2008>
This Decree shall enter into force on the date of its promulgation.
ADDENDA<Presidential Decree No. 21214, Dec. 31, 2008>
Article 1 (Enforcement Date)
This Decree shall enter into force on the date of its promulgation. (Proviso Omitted. )
Articles 2 through 5 Omitted.
ADDENDUM<Presidential Decree No. 21277, Jan. 28, 2009>
This Decree shall enter into force on the date of its promulgation.
ADDENDUM<Presidential Decree No. 21450, Apr. 30, 2009>
This Decree shall enter into force on the date of its promulgation.
ADDENDUM<Presidential Decree No. 22831, Apr. 4, 2011>
This Decree shall enter into force on the date of its promulgation.
ADDENDA<Presidential Decree No. 23264, Oct. 26, 2011>
Article 1 (Enforcement Date)
This Decree shall enter into force on October 26, 2011.
Article 2 Omitted.
Article 3 (Relationship to other Acts and Subordinate Statutes)
ADDENDUM<Presidential Decree No. 23356, Dec. 8, 2011>
Article 1 (Enforcement Date)
This Decree shall enter into force on December 8, 2011. (Proviso Omitted. )
Article 2 Omitted.