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  • Engineering Industry Promotion Act
    • Competent Ministry : Ministry of Trade, Industry and Energy
    • Advance Publication of Legislation : 2021-01-29
    • Opinion Submission Deadline : 2021-02-12
Reasons for Proposal

Engineering, an important national strategic industry that is directly connected to the competitiveness of related industries such as construction, plants, and manufacturing, needs a turning point to rebound in technological superiority in the global market with bold efforts in digitization and capability aggregation in high value-added fields.

Therefore, it is necessary to improve the received order performance management system to strengthen the competitiveness of complex and large-scale domestic and overseas projects which include engineering; clearly define business affairs of operation and maintenance in the definition of engineering activities; reinforce the soundness of the industrial ecosystem by ordering engineering projects at fair and appropriate prices; clarify the business scope of the mutual-aid cooperative to smoothly support the guarantee and mutual-aid business for plants, manufacturing and installation, and construction, which are large-scale convergence projects led by engineering; and establish an institutional mechanism to secure the financial soundness and stability of the mutual-aid cooperative.

In addition, this amendment aims to improve and supplement some shortcomings that have emerged in the operation of the current system, such as reducing the burden on the industry by improving the reporting system for engineering business entities and engineers, constructing an engineering data platform, and providing the basis to support convergence technologies and O&M advancement.

Details

A. Integrate the terms of test run, commercial operation, operations and management into “operation” so that appropriate prices for engineering business related to plant facilities can be guaranteed and add “maintenance” to the definition of engineering activities (Article 2, Subparagraph 1). 

B. For integrated management of the engineering industry, stipulate that this Act shall govern matters concerning the scope of engineering business and reporting by engineering business entities, despite the provisions of other Acts (Article 4). 

C. Stipulate procedures for reporting the results of received orders and issuing confirmation documents to improve the efficiency of evaluation when using basic engineering policy data and selecting a business entity (Article 7-2 and Article 8 (3) newly inserted). 

D. Establish a basis to support the construction and introduction of engineering data platforms such as data acquisition and data linkage, convergence, analysis, and provision for advanced engineering technology and the development and utilization of engineering technologies for the 4th Industrial Revolution (Article 8-2 and Article 9 (4) newly inserted). 

E. Stipulate accurate personnel management and the elimination of controversies such as unnecessary complaints by stipulating that when reporting a business entity, the acceptance and reason for the delay must be notified within 15 days, establishing provisions that are deemed to have been accepted in case of failure to be notified, and revising the provisions regarding the reporting of engineers who are technical personnel, so they can be reported directly when reporting an engineering business entity (Article 21, Article 23, and Article 26 (2)). 

F. Stipulate that clients shall place orders clearly applying price standards and require them to disclose price details calculated by applying these price standards (Article 31). 

G. Clarify the business subjects of the mutual-aid cooperative and allow the cooperative to account for liability reserves and emergency reserves during every accounting settlement to secure sufficient payment capacity and business soundness when dealing with an accident subject to mutual-aid (Article 34 (2) and Article 35 (3)). 

H. Provide the basis to allow the mutual-aid cooperative to access the business site and investigate the progress in the event of a covered accident and the members who perform the business to express their opinions and allow them to request a specialized agency to perform the accident investigation (Article 35-2 newly inserted). 


Major Provisions

Article 7-2 and Article 35-2

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