Busan Metropolitan City Ordinance on the Promotion of Strategic Industries : City Government

BUSAN METROPOLITAN CITY ORDINANCE ON THE PROMOTION OF STRATEGIC INDUSTRIES

Chapter 1 General Provisions

The purpose of this ordinance is to contribute to the revitalization of the local economy by systematically promoting strategic industries and reinforcing their competitiveness and thereby enabling them to lead the economy of Busan.

The terms used in this ordinance are defined as follows :
- 1. "Strategic industries" refer to the promising industries that are suitable for the locational environments of Busan and show high growth potentials and the restructuring industries that belong to the existing industries but need to be transformed into high value-added industries. The strategic industries are listed in Article 4.
- 2. "Strategic industries promoting businesses" refer to the businesses promoted in relation to the promotion of strategic industries by the relevant research institutes, economic organizations and businesses under the support of or cooperaton with Busan Metropolitan City (hereinafter called the "City").

(1) The mayor of Busan Metropolitan City (hereinafter called the "Mayor")should promote strategic industries so Busan can develop into an economic hub in the southeastern area of the nation and a center of the Asia and Pacific region in terms of trade, logistics, finance, information and tourism.

(2) In implementing policies aimed to promoting the regional industries, the mayor should preferentially support the strategic industries in terms of fund, technology development, industrial complex creation and personnel training.

Chapter 2 Promotion of Strategic Industries

(1) The promising industries of Busan include the following :

- 1. Harbors and logistics industries
- 2. Tourism industry
- 3. Software industry
- 4. Financial industry
- 5. Visual media industry
(2) The restructuring industries of Busan include the following :
- 1. Automobile and parts industry
- 2. Shipbuilding and related instrument and material industry
- 3. Footwear industry
- 4. Fiber and fashion industry
- 5. Fisheries and processing industry
(3) When the mayor plans to change the strategic industries listed in the preceding paragraphs 1 and 2, he should analyze the regional characteristics, location, environmental conditions, growth potentials, job creation effect and industrial ripple effects, reflect the opinions of citizens and experts and then refer the plan to the deliberation of the Busan Metropolitan City Strategic Industry Promotion Committee stated in Article 15 before obtaining the approval of the Busan Metropolitan Council (hereinafter called the "Council").
(4) The specialized regional industries stated in the Small and Medium Provincial Business Promotion Plan pursuant to Article 40 of the Balanced Regional Development and Support for Local Small and Medium Enterprises Act shall be regarded as strategic industries.

The mayor may set the priorities among the strategic alliances stated in Article 4 in order to foster them effectively.

(1) The mayor should establish a master plan for the promotion of strategic industries (hereinafter called the "Master Plan") after going through the deliberation of the Busan Metropolitan City Strategic Industry Promotion Committee and report it to the Council.

(2) The master plan stated in the preceding paragraph 1 should include the following :
- 1. Changes in the industrial environments at home and abroad
- 2. Locational circumstances and actual state of Busan industries
- 3. Actual state and growth prospect by strategic industry
- 4. Promotional directions and policies by strategic industry
- 5. Matters concerning the support of strategic industries in terms of fund, technology, location, personnel, business conversion, information and corporate activity.
- 6. Other matters included in the policies to support the enforcement of the Regional Industry Promotion Plan to be established pursuant to Article 8 Paragraph 3 of the Industrial Development Act.
(3) The master place can be replaced by the Regional Industry Promotion Plan established pursuant to Article 8 Paragraph 1 of the Industrial Development Act.
(4) The mayor may designate a department or form a task force for the establishment and implementation of the master plan. If necessary, the mayor can employee a provincial public servant(s) on a contractual basis.

(1) To efficiently implement the master plan stated in Article 6 Paragraph 1, the mayor can entrust the implementation of the strategic industry promotion projects to one of the following entities.

- 1. National or public research institutes
- 2. Research institutes or corporations in which the government or the city invested or contributed.
- 3. Universities or colleges established in accordance with the Law on Higher Education.
- 4. Other businesses or organizations recognized by the mayor as necessary for the promotion of strategic industries.
(2) The mayor can provide necessary support to the organizations listed in the preceding paragraph 1 that implement the strategic industry promotion projects.

The mayor can provide the following support to the persons that carry out the businesses related to the strategic industries stated in Article 4.
- 1. Financing of fund for fostering small and medium provincial businesses
- 2. Guarantee of Busan Credit Guarantee Association
- 3. Acts shouldering liabilities on guaranties pursuant to Article 115 Paragraph 3 of the Local Autonomy Act.
- 4. Technology development
- 5. Creation, sale and lease of industrial complexes
- 6. Personnel education and training
- 7. Disposal of idle facilities of the businesses that converted into strategic industries
- 8. Parts standardization, technology development, trade mark development and personnel alliance projects that are conducted through cooperation among the related businesses of strategic industries
- 9. Other matters recognized by the mayor as necessary.

For the creation of the foundation for strategic industries, the mayor should exert efforts in the re-development of the factories in the old and poor industrial areas, the creation of industrial complexes, and the promotion of cooperative projects between the businesses related to strategic industries.

(1) The mayor should make efforts to attract the head offices of the enterprises, research institutes and organizations related to strategic industries(hereinafter called the "Head Office of Enterprise") into the city.

(2) Pursuant to the preceding paragraph 1, the mayor can provide necessary support to those who transfer their head offices into the city from outside of the city.

The support to facilitate foreign investment into strategic industries shall be provided in accordance with the Busan Metropolitan City Ordinance on Foreign Investment Promotion.

When a company related to a strategic industry acquires and register real estates to do a business corresponding to one of the following items, the whole or part of the city tax on the real estates may be reduced or exempted in accordance with the Busan Metropolitan City Ordinance on Tax Reduction and Exemption.
- 1. Businesses that develop advanced technologies or manufacture high-tech parts designated by Minister of Commerce, Industry and Energy pursuant to Article 5 of the Industrial Development Act.
- 2. Businesses that belong to Exhibit 2 of Article 5 Paragraph 3 of the Enforcement Ordinance of the Restriction Law on Tax Exemption Enforcement Decree of the Tax Exceptions Restriction Act.

The mayor can establish and operate a Busan Metropolitan City Strategic Industry Promotion Fund (hereinafter called the "Fund") to secure fund needed for the fostering of strategic industries in a stable manner.

The mayor should provide necessary administrative assistance and information on the policies and supporting systems implemented by the government or the city in connection with strategic industries.

Chapter 3 Strategic Industry Promotion Committee

A Busan Metropolitan City Strategic Industry Promotion Committee(hereinafter called the "Committee") shall be established under the office of mayor to deliberate the matters concerning the fostering of strategic industries and to provide advice and suggestions to the mayor.

The committee shall deliberate the following :
- 1. Matters concerning changes in the selection of strategic industries
- 2. Matters concerning decision on the priorities among strategic industries
- 3. Matters concerning establishment of the master plan
- 4. Matters concerning fund operation
- 5. Other matters related to the fostering of strategic industries and matters recognized by the mayor as necessary.

(1) The committee shall be composed of 20 or less members including the chairman and the vice mayor for administration shall become the chairman.

(2) The mayor shall select candidates from among the public servants who are involved in the establishment of the master plan in accordance with Article 6 Paragraph 4 and the following persons who have expertise and knowledge on the regional economy and appoint or commission them to the committee.
- 1. Members of the Council
- 2. Professors at universities or colleges established in accordance with the Higher Education Act.
- 3. Researchers at research institutes
- 4. Persons who are working at economic institutions or organizations
- 5. Other people considered necessary by the mayor.
(3) The term of office of the members who are appointed shall be the same as the term of their current positions. The term of office of the members who a r e commissioned shall be two years and it can be renewed. But the term of office of the members who fill vacancies shall be the remainder of the term of t h e predecessors.

(1) The chairman represents the committee and controls the duties of the committee.

(2) When the chairman becomes incapacitated, the member designated in advance by the chairman shall act for the chairman.

(1) To administer the affairs of the committee, the committee shall have an executive secretary and the director for economic policy shall become the executive secretary.

(2) Under the directions of the chairman, the executive secretary shall administer the affairs of the committee and keep and manage the minutes of t h e committee.

(1) The chairman shall call a meeting upon request from the mayor or when the chairman considers necessary.

(2) The committee will open the meeting with the attendance of the majority of the members and pass a resolution with the approval of the majority of the members present.

Stipends and travel expenses may be paid to the members who attend a meeting within the limits of the budget in accordance with the Busan Metropolitan City Ordinance on Committee Actual Expenses Compensation.

Addenda

This Ordinance shall come into force on and after the day of promulgation.

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City Government

Ordinances

Busan Metropolitan City Ordinance on the Promotion of Strategic Industries