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  • [금융/투자/외환] Amendment to the Enforcement Decree of the Framework Act on the Promotion of Cultural Industries
    • Competent Ministry : Ministry of Culture, Sports and Tourism
    • Advance Publication of Legislation : 2018-03-14
    • Opinion Submission Deadline : 2018-04-23

Prescribe separate collection requirements for each type of project subject to the collection of technology royalties (Article 25-3, paragraph 2 of the Enforcement Decree newly inserted)

Prescribe provisions concerning technology royalty exemption for works subject to support for small-scale content production (Article 25-3, paragraph 4 of the Enforcement Decree newly inserted)

Prescribe provisions in the Enforcement Decree concerning public equity companies engaged in cultural industries as delegated under Article 56-2 of the Framework Act on the Promotion of Cultural Industries (Article 46-4 of the Enforcement Decree newly inserted)

In terms of collecting technology royalties, there is a need to set two different requirements that apply seperately for projects for developing technology in cultural industries and projects for developing and supporting production of cultural content. The Amendment aims to improve the legal system by prescribing provisions in the Enforcement Decree concerning technology royalty exemptions, which have been governed by the internal regulations of institutions in charge of projects for developing technology in order to protect small and medium enterprises.

The Amendment newly inserts requirements for business managers of public equity companies engaged in cultural industries as delegated to the Enforcement Decree under Article 56-2 of the Framework Act on the Promotion of Cultural Industries, thereby aiming to enable the establishment of public equity companies engaged in cultural industries.

Details

A. Prescribe separate collection requirements for each type of project subject to the collection of technology royalties (Article 25-3, paragraph 2) 
1) In accordance with Article 17-2, paragraph 1 of the Framework Act on the Promotion of Cultural Industries, Article 24 and Article 25-3, paragraph 1 of the Enforcement Decree of the same Act applies the same requirements to projects for developing technology in cultural industries and projects for developing and supporting production of cultural content, as subjects of technology royalty collection. This makes it difficult to apply separate technology royalty requirements to match the nature of each project type.

2) With respect to the collection of technology royalties, the provisions of the Framework Act on Science and Technology and the Enforcement Decree thereof shall apply mutatis mutandis to projects for developing technology in cultural industries, as national research and development projects, while prescribing separate requirements for projects for developing and supporting production of cultural content to account for the circumstances of small content enterprises, thereby ensuring the consistency of pan-governmental research and development projects and differentiating projects for supporting production of cultural content.

B. Prescribe grounds for technology royalty exemptions (Article 25-3, paragraph 4)

1) Based on a finding by National Assembly (examination of account settlement for the 2015 fiscal year) that it is necessary to prescribe provisions in a higher statute concerning technology royalty exemptions for works subject to support for small-scale content production, a system that is currently governed by the internal regulations of institutions in charge of projects for developing technology, the Amendment prescribes the relevant provisions in the Enforcement Decree.

2) A technology royalty may be reduced where deemed necessary by the Minister of Culture, Sports and Tourism for job creation or other policy goals.

C. Prescribe requirements for business managers for the establishment of a public equity company engaged in cultural industries, etc. (Article 46-4)

1) Crowdfunding, which involves multiple investors, requires the establishment of a public equity company involved in cultural industries. However, the current Enforcement Decree of the Framework Act on the Promotion of Cultural Industries does not contain the relevant provisions, making it impossible to establish a public equity company engaged in cultural industries. Currently, in order to raise funds through crowd funding, it is necessary to establish a company specializing in cultural industries and then establish a separate special purpose company (SPC).

2) The Amendment enables the establishment of public equity companies engaged in cultural industries by prescribing in the Enforcement Decree the requirements for business managers of public equity companies engaged in cultural industries, etc., as delegated under Article 56-2 of the Framework Act on the Promotion of Cultural Industries.

3) The Amendment is expected to stimulate crowdfunding in cultural industries by allowing public equity companies engaged in cultural industries to be established and thereby enabling funds to be raised through crowdfunding without the establishment of a separate SPC.

Regulatory effect assessment
  • 180309 규제영향분석서(문산법 시행령 개정).hwp [download]
Legislative proposal (draft)
  • 입법예고공고문(문산법 시행령 일부개정령안)(날짜변경).hwp [download]