the financial support pursuant to Article 10 (2) of the Act and for subsidies of research fundspursuant to Article 11 (2) of the Act. <Amended by Presidential Decree No. 14571, Apr. 6,1995>     (2) The Minister of Knowledge Economy shall determine detailed matters necessary for themethod and procedure of financial support and performance of research tasks.Article 3 (Research Institute, etc. Subject to Guidance and Fostering and Method of Guidanceand Fostering)     (1) The research institutes, etc. which the Minister of Knowledge Economy guides and fosterspursuant to Article 10 (4) of the Act shall be as follows:     1. The Electronics and Telecommunications Research Institute established pursuant to Article8 of the Act on the Establishment, Operation and Fosterage of Government-Invested ResearchInstitutions of Science and Technology;     2. Research institutes established for the purpose of conducting researches ontelecommunications and designated by the Minister of Knowledge Economy;     3. An institute or an organization which carries out researches, developments, education, ortraining in telecommunications; and     4. A corporation or an organization which is engaged in collecting, analyzing, andpublicizing information on telecommunications.     (2) Methods of the guidance and fostering concerning research institutes, etc. pursuant toparagraph (1) shall be as follows:     1. Financial support for the ground research and performance of special tasks in the field oftelecommunications;     2. Support of the education and training in order to foster skilled technicians in the fieldof telecommunications;     3. Supply of technological information on telecommunications; and     4. Support for cooperations with other institutes, organizations, or international bodies.     (3) The following funds shall be given to the research institutes pursuant to paragraph (1) 1and
 

 
2:     1. Research and development funds for telecommunications technology and policy ontelecommunications;     2. Construction expenses for facilities, etc. necessary for research and development; and     3. Expenses for the management of other research institutes, etc.Article 4 (Selection of Research Tasks)     The Minister of Knowledge Economy may select the following research tasks under pursuant toArticle 11 (2) of the Act:     1. Matters of the basic research relating to telecommunications;     2. Matters concerning the research and development of a new telecommunications method or oftechnology;     3. Matters concerning the technical improvement on telecommunications equipment; and     4. Other matters necessary for the security of the core telecommunications technology.Article 5 (Designation of Researcher)     The Minister of Knowledge Economy designates, pursuant to Article 11 (2) of the Act, a personwho will work on the research task in accordance with the following order:     1. A proposer of research tasks concerned; and     2. A person who has successfully carried out a research dealing with similar subject mattersto the research tasks concerned.Article 6 (Joint Research, etc.)     The Minister of Knowledge Economy may allow the designated person pursuant to Article 5 towork jointly on the research tasks pursuant to Article 4, if it is deemed specially necessary to doso.Article 7 (Basis for Calculation of Contribution for Research and Development)
 

 
     (1) The sales amount under Article 12 Paragraph (1) of the Act shall be the amount of profitgenerated from business minus the amount paid for using the telecommunication network of othertelecommunication carriers.     (2) The contribution for research and development under Article 12 Paragraph (1) of the Act(“Contribution”) shall be an amount equal to 5/1000 of the previous year’s sales amount, providedthat for telecommunication carrier within the meaning of Article 34 Paragraph (3) Item 2 of theTelecommunication Business Act, the contribution amount shall be 75/10,000 of the previous year’ssales amount.     (3) In the event of imposing contributions pursuant to Article 12 Paragraph (1) of the Act,the Minister of Knowledge Economy shall notify in writing of, among others, the amount ofcontribution annually calculated pursuant to Paragraph (2) and the due date for remittance andnotify that said contribution shall be remitted to the account for Information and CommunicationPromotion Fund opened with the Bank of Korea pursuant to Article 33 of the InformatizationPromotion Framework Act.     (4) Necessary details of the calculation of the contribution amount and imposition ofcontribution shall be decided and announced by the Minister of Knowledge Economy.Article 8 (Reduction of Contribution)     The Minister of Knowledge Economy shall, pursuant to Article 12 Paragraph (3), exempt fromcontribution those telecommunications carriers subject to the contribution who have recorded salesless than KRW30 billion the previous year or who have suffered net loss for the term, and shallreduce the amount of contribution for telecommunications carrier who are subject to contributionexceeding 70/100 of the net profit for the term by the excess amount.Article 9 (Default Charges)     (1) The default charge under Article 12 Paragraph (4) of the Act shall be equal to 3/100 ofthe defaulted contribution.     (2) In the event of default in payment of the default charge, an additional charge in theamount equal to 12/1,000 of the defaulted amount (“DoubleDefault Charge”) shall be added to thedefault charge under Paragraph (1) for each month passed after the due date for the contribution.In such event, the Double Default Charge may not be additionally charged for more than 60 days.Article 10 (Contents of Technical Guidance, etc.)     (1) The subject matters and contents for technical guidance pursuant to Article 13 (2) of theAct shall be as follows:     1. Matters concerning the application of technical standards of telecommunications equipment;     2. Matters concerning the adoption, practical application and development of a newtelecommunications method and technology;
 

 
     3. Matters concerning the improvement of production technology of telecommunicationsequipment;     4. Matters concerning the improvement of functions and special features of telecommunicationsequipment; and     5. Matters concerning the standard construction method applied to the installation andmaintenance of telecommunications facilities.     (2) Methods of the technical guidance for the person subject to the technical guidance shallbe as follows:     1. Guidance concerning the quality assurance of telecommunications equipment;     2. Supply of technical information;     3. Support for technical training and overseas technical cooperation; and     4. Transfer of technology.CHAPTER III TELECOMMUNICATIONS FACILITIESArticle 11 (Report of Installation/Alteration of Telecommunications Facilities)Any key communications business operator who intends to install or alter major telecommunicationsfacilities pursuant to the body text of Article 17 (1) of the Act shall submit to the KoreaCommunications Commission a report of installation (alteration) of major telecommunicationsfacilities (including a report in electronic form) with the following documents (includingelectronic documents) attached to it:     1. a statement of installation or alteration of telecommunications facilities (including acommunication network configuration diagram); and     2. security measures for the telecommunications facilities.Article 12 (Installation Approval of Telecommunications Facilities)
 

 
     (1) Any key communications business operator who intends to obtain installation approval ofany telecommunications facilities to be installed according to the new telecommunication technologypursuant to the proviso of Article 17 (1) of the Act for the first time shall submit to the KoreaCommunications Commission an application for installation approval of telecommunications facilities(including an application in electronic form) with the following documents (including electronicdocuments) attached to it:     1. business proposal;     2. security measures for the telecommunication facilities;     3. technology trends for the telecommunication facilities concerned, e.g. domestic and foreignspecifications;     4. domestic and foreign R&D status for the telecommunication facilities concerned; and     5. MOU (only to the extent of joint installation or use with another domestic or foreignbusiness operator,     (2) Upon the receipt of application pursuant to paragraph (1), the Korea CommunicationsCommission shall review the technical characteristics of the telecommunications facilities to beinstalled and notify the applicant of approval or rejection of such application within 15 days.Article 13 (Selection of Specialized Agency for Data Survey)     (1) When the Korea Communications Communication intends to have a specialized agency in thefield of telecommunications conduct data survey necessary for consultation among the keycommunications business operators regarding joint installation of telecommunications facilitiespursuant to Article 18 (3) of the Act, he shall select an agency recognized as having specialtywith regard to the relevant survey and being capable of ensuring impartiality and objectiveness andhave such agency conduct it.     (2) When the Korea Communications Commission selects a specialized agency to conduct datasurvey pursuant to paragraph (1), he shall inform the key communications business operatorsconcerned thereof.Article 14 (Investigation of Materials of Joint Implementation of TelecommunicationsFacilities)
 

 
The Korea Communications Commission may investigate the following necessary for the consultationwith the key communications business operator regarding the joint implementation oftelecommunications facilities pursuant to Article 18 (2) of the Act:.     1. Telecommunications facilities implementation plans of the key communications businessoperator with regard to:          A. type and specifications of the telecommunications facilities to be installed;          B. implementation area and section;          C. implementation timing; and          D. technical conditions, etc.     2. The telecommunications facilities, and the area and section thereof available for jointimplementation;     3. plans for efficient joint implementation of telecommunications facilities; and     4. economic benefits that can be gained from the joint implementation of telecommunicationsfacilitiesArticle 15 (Recommendations for Joint Implementation of Telecommunications Facilities)     (1) When the Korea Communications Commission recommends joint implementation oftelecommunications facilities to the key communications business operator pursuant to Article 18(4) of the Act, the Korea Communications Commission shall specify the telecommunications facilitiessubject to joint implementation, the area and section of implementation, and the technicalconditions.     (2) Any key communications business operator who wishes to jointly implementtelecommunications facilities pursuant to subparagraph 1 of Article 18 (4) of the Act shall submitto the Korea Communications Commission documentation including:     1. plans for the joint implementation of telecommunications facilities;     2. economic benefits from the joint implementation of telecommunications facilities;     3. the reason it failed to reach agreement with the key communications business operatorsubject to joint implementation of telecommunications facilities, and measures to resolve thefailure;     (3) Any key communications business operator who received the recommendation for jointimplementation of telecommunications facilities from the Korea Communications Commission shallnotify the Korea Communications Commission of acceptance or, it unacceptable, the reasons for non-
 

 
acceptance within 21 days from the receipt of such recommendation.Article 16 (Report of Private Telecommunications Facilities)     (1) A person who intends to install private telecommunications facilities pursuant to Article20 of the Act shall submit a private telecommunications facilities installation report (including areport which is an electronic document) specifying the following contents to the KoreaCommunications Committee with the design drawings of installation work of such facilities attachedto it not later than twenty-one days prior to the beginning date of installation work for suchfacilities:     1. Reporter;     2. Type of business;     3. Purpose of business;     4. Telecommunications method;     5. Installation place of facilities;     6. Outline of the installation; and     7. (Expected) Date of the facilities’use.     (2) “Matters specified by the Presidential Decree” in the latter part of Article 20 (1) of theAct means matters in paragraph (1) 2 through 6 inclusive.     (3) If a person, who has made a report on installation of private telecommunicationsfacilities, intends to alter the matters stipulated in paragraph (2), he shall file with the KoreaCommunications Commission a report (including a report which is an electronic document) onalteration stating the matters he intends to alter with the design drawings of privatetelecommunications facilities work on the alterations (including the before. vs. after comparisontable) attached to it not later than twenty-one days (beginning date of the relevant alterationwork in case where intending to alter the facilities falling under paragraph (1) 4 through 6) priorto the relevant beginning date of alteration.     (4) Upon the receipt of report of installation or alteration of installation pursuant toparagraph (1) or paragraph (3), the Korea Communications Commission shall review:          1. Conformity to the technical standards pursuant to Article 25 (1) of the Act; and
 

 
          2. Whether or not the purpose and reason for installing telecommunicationsfacilities is to use for telecommunications.     (5) If the review conducted pursuant to paragraph (4) confirms that satisfaction of therequirements under each of the subparagraphs, the Korea Communications Commission shall issue thecertificate of completed report of installation (alteration) of private telecommunicationsfacilities to the reporter.Article 17 (Confirmation on Construction Work, etc. for Installation)     (1) A person who has made installation or modification report on private telecommunicationsfacilities pursuant to Article 20 (3) of the Act shall be confirmed by the Korea CommunicationsCommission within seven days after the construction work for the installation of facilities andmodification is completed.     (2) A person who intends to obtain confirmation of the private telecommunications facilitiespursuant to paragraph (1) shall submit to the Korea Communications Commission an application forconfirmation of private telecommunications facilities (which includes an application in electronicform) with the following documents (including electronic documents) attached to it:     1. Documentation proving that the work has been conducted in conformity with the technicalstandards pursuant to Article 25 (1) of the Act;     2. Documentation proving that the work has been conducted in conformity with the designdrawing pursuant to Article 25 (3) of the Act.; and     3. A copy of the certificate of the constructor.     (3) After reviewing the application documentation pursuant to paragraph (2), the KoreaCommunications Commission may request for remedy within a certain period if:     1. the attachment is incomplete; or     2. the application and the attachment contain unclear entries.Article 18 (Exemption of Report of Installation of Private Telecommunications Commission)Certain private telecommunications facilities may be installed without filing a report pursuant toArticle
 

 
20 (4) of the Act if:          1. their primary equipment and terminals are installed within a single building and its site;          2. their primary equipment and terminals are installed within two or more buildings and theirsites (unless they are separated by a road or river) with the shortest distance between them beingnot longer than 100 meters; or          3. are installed for the emergent needs of police operations and to be used for not longerthan one month.Article 19 (Supply of Private Telecommunications Facilities)     (1) A person who has installed the private telecommunications facilities may supply them forthe facilities-based telecommunications service provider where there are the unusedtelecommunications facilities in excess of the capacity necessary for his employment oftelecommunication from among the private telecommunications facilities installed where thefacilities-based telecommunications service provider asked to install pursuant to Article 21 (2) ofthe Act.     (2) The consideration for supply where the private telecommunications facilities are suppliedfor the facilities-based telecommunications service provider pursuant to paragraph (1) shall be inaccordance with the criteria announced publicly by the Korea Communications Commission within thelimit of the amount which adds the amount of investment and repair to the expenses required for thenetwork and operation of the private telecommunications facilities concerned.Article 20 (Standards for Suspension of Use)The standards for suspension of use pursuant to Article 23 (2) of the Act shall be as stated inExhibit 1.Article 21 (Types of Violation Subject to Surcharge and Amounts of Surcharge)     (1) The types of violation subject to surcharge pursuant to Article 24 of the Act and theamounts of the relevant surcharge shall be as stated in Exhibit 2.     (2) In determining the amount of surcharge pursuant to paragraph (1), the Korea CommunicationsCommission shall consider:          1. The contents and degree of the violation;          2. The duration and frequency of the violation; and
 

 
          3. The size of gains obtained from the violation.Article 22 (Imposition and Payment of Surcharge)     (1) When it intends to impose surcharge pursuant to Article 24 (3), the Korea CommunicationsCommission shall give written notification specifying the type of violation and the amount ofsurcharge.     (2) The person who received the notification pursuant to paragraph (1) shall pay the surchargeto the receiving institution specified by the Korea Communications Commission within 20 days fromthe notification. Provided that in the event of failure to pay the surcharge within the period dueto natural disasters or other inevitable causes, the surcharge shall be paid within seven days fromthe date on which the cause ceased to exist.     (3) The receiving institution which received surcharge pursuant to paragraph (2) shall issue areceipt to the payer.     (4) Upon receiving surcharge pursuant to paragraph (2), the receiving institution shall notifythe Korea Communications Commission without delay.     (5) No installment payment of surcharge shall be accepted.Article 23 (Preparation of Design Drawings)     (1) The design drawings pursuant to Article 25 (3) of the Act shall be prepared by a personwho is:          1. a person conducting engineering activities pursuant to the Engineering Technology PromotionAct or an engineer who registered the establishment of a professional engineers office pursuant tothe Professional Engineers Act who conducts engineering activities or is a Professional EngineersAct in the field of communications and information processing; or          2. a information and communication engineer pursuant to subparagraph 1 of Exhibit 2 of theEnforcement Decree of the Information and Communication Work Business Act.     (2) The Korea Communications Commission may separately specify and announce the scope ofinstallation work of telecommunications facilities for which only the person falling undersubparagraph 1 of paragraph (1) is eligible to provide design service;Article 24 (Certificate) The certificate pursuant to Article 25 (7) of the Act shall be as providedin accordance with the rules of the Korea Communications Commission.
 

 
Article 25 (Management Regulations)