Jewelry is no longer a luxury consumable that can be enjoyed only by select groups of wealthy individuals; it is widely used in various settings including common wedding customs and fashion. In areas such as Europe and China, the jewelry industry has already become a major industry that creates added value and contributes to the creation of national wealth through exports.
Korea, however, has only focused on regulatory policies, such as the imposition of high individual consumption taxes on jewelry products, and thus the jewelry industry has become stagnant. Critics say that weaknesses in the distribution management system are also critical. Tax evasion and money laundering have become rampant due to the unlawful trading of jewelry by unregistered business operators, and consumers are falling victim to counterfeit jewelry masquerading as genuine goods.
Accordingly, this Act prescribes provisions concerning a system for formulating and implementing policies to lay the industrial groundwork, support for jewelry enterprises and technology development, and promotion and growth such as professional training, thereby facilitating the development of the jewelry industry into a major national industry. It also introduces a permit system for retail jewelry businesses, thereby alleviating consumer suffering at the national level and enabling the systematic management of jewelry distribution.

Details

A. Require the Minister of Trade, Industry and Energy to formulate and implement a Jewelry Industry Infrastructure Development Master Plan every 5 years, and to formulate and implement action plans each year in accordance with the Master Plan (Article 5).

B. Establish and operate a Jewelry Industry Infrastructure Development Committee, composed of members with expertise in precious stones and metals and the jewelry industry, to deliberate on matters concerning the groundwork for the jewelry industry (Article 6).

C. Prescribe that the operation of retail jewelry businesses shall be preceded by a permit; delegate the requirements, scope, procedure, etc., of a permit to the Enforcement Decree; and prescribe matters concerning grounds for disqualification or revocation, etc. of a permit, thereby establishing a jewerly distribution management system and alleviating consumer suffering (Article 7 through Article 12).

D. Require the Minister of Trade, Industry and Energy to conduct a jewelry industry survey on a regular basis and investigate, prepare, etc., statistical data to formulate and implement policies to lay the groundwork for the jewelry industry (Article 13 and Article 14).

E. Allow the State or a local government to carry out such projects as the launch of vocational training to nurture jewelry professionals or the establishment and operation of a jewelry technology database; and allow them to designate professional training institutions for the professional and efficient execution of professional training projects (Article 15).

F. Allow the Minister of Trade, Industry and Energy, etc., to provide support for jewelry industry-related startups and for growth and development of startup founders, and to provide support necessary for the production of outstanding jewelry, etc. (Article 16).

G. Allow the Minister of Trade, Industry and Energy to assist with technology development necessary for jewelry quality verification and jewelry production/creation, and to provide support necessary for the stable supply of raw materials and research and development on alternative materials (Article 17).

H. Prescribe that the State and local governments shall expand support facilities and develop complexes and districts, etc., to lay the foundation of the jewelry industry (Article 18).

I. Prescribe that the State and local governments shall endeavor to modernize the jewelry distribution structure and promote distribution; and they may provide support for group purchasing/selling and other projects conducted by jewelry industry-related cooperative associations (Article 19).

J. Promote international cooperation and overseas ventures in the jewerly industry by offering tariff and tax incentives for jewelry sold at international exhibitions; and offer other support such as special permits for duty free shops specializing in jewelry and brand development, etc., to promote jewelry exports (Article 20).

K. Designate outstanding jewelry and offer special support such as branding assistance to boost the competitiveness in the jewelry industry, and also prescribe grounds on which to revoke a designation as outstanding jewelry (Article 21 and Article 22).

L. To ensure the succession and development of jewelry technologies, offer rewards and other support to enterprises that have been selected as master jewelry enterprises after meeting certain requirements on such matters as family business succession, technological sophistication, and financial condition (Article 23).

M. Prescribe that the State shall prepare policies to combine and integrate the traditional and modern aspects of the jewelry industry and may identify and present awards to exemplary cases that have contributed to the promotion of the jewelry industry (Article 26 and Article 27).