جمهورية كوريا

ENFORCEMENT DECREE OF THE

UNFAIRCOMPETITION PREVENTION AND TRADE

SECRET PROTECTION ACT

Wholly Amended by Presidential Decree No. 16065, Dec. 31, 1998 Amended by Presidential Decree

No. 17255, Jun. 27, 2001

Presidential Decree No. 21691, Aug. 18, 2009

Presidential Decree No. 22151, May 4, 2010 Presidential Decree No. 23153, Sep. 22, 2011

Article 1 (Purpose)

The purpose of this Decree is to prescribe matters delegated by the Unfair Competition Prevention

and Trade Secret Protection Act and matters necessary for the enforcement thereof.

[This Article Wholly Amended by Presidential Decree No. 21691, Aug. 18, 2009]

Article 1-2 (Justifiable Grounds)

"Justifiable grounds prescribed by Presidential Decree, such as non-commercial uses" in

subparagraph 1 (c) of Article 2 of the Unfair Competition Prevention and Trade Secret Protection Act

(hereinafter referred to as the "Act") means cases falling under any of the following subparagraphs:

1. Where a mark is used for non-commercial purposes;

2. Where a mark is used in a news report or commentary;

3. Where a person (including his/her successor), who has used any one identical or similar to a

name, trade name, trademark, or container or package of goods of any other person, or a mark

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indicating any other person's goods or business (hereinafter referred to as "mark") before such

mark becomes widely known to the public in Korea, continues to use it without any unjust

purpose;

4. Where the use of a mark is deemed not inconsistent with standard practices of fair commercial

transactions.

[This Article Wholly Amended by Presidential Decree No. 21691, Aug. 18, 2009]

Article 1-3 (Disposal, etc. of Collected Goods)

(1) Where the Commissioner of the Korean Intellectual Property Office, the Special Metropolitan City

Mayor, a Metropolitan City Mayor, Do Governor, Special Self-Governing Province Governor

(hereinafter referred to as the "Mayor/Do Governor") or the head of a Si/Gun/Gu (referring to the

head of an autonomous Gu; hereinafter the same shall apply) collects the least amount of products

necessary for inspecting them under Article 7 (1) of the Act, he/she shall issue a certificate of

collection described in attached Table 1 to the owner or possessor of such products. <Amended by

Presidential Decree No. 23153, Sep. 22, 2011>

(2) Where an inspection of the products collected pursuant to Article 7 (1) of the Act reveals that such

products are not involved in any act of unfair competition falling under subparagraph 1 (a) through (g)

of Article 2 of the Act or any violation as referred to in Article 3 or Article 3-2 (1) or (2) of the Act, the

Commissioner of the Korean Intellectual Property Office, a Mayor/Do Governor or the head of a

Si/Gun/Gushall return such products to the owner or possessor at the time such products are

collected. <Amended by Presidential Decree No. 23153, Sep. 22, 2011>

(3) The certificate prescribed in Article 7 (3) of the Act shall be in accordance with attached Table 2.

<Amended by Presidential Decree No. 23153, Sep. 22, 2011>

[This Article Wholly Amended by Presidential Decree No. 21691, Aug. 18, 2009]

Article 2 (Methods, etc. of Corrective Recommendation)

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(1) A corrective recommendation as prescribed in Article 8 of the Act shall be made in the form of a

document in which any grounds forrecommendation and deadline for correction are specified.

(2) The Commissioner of the Korean Intellectual Property Office, a Mayor/Do Governoror thehead of a

Si/Gun/Gumay require a related public official to confirm the actual site, where deemed necessary to

issue a corrective recommendation as prescribed in paragraph (1) or to verify whether such

corrective recommendation is implemented. <Amended by Presidential Decree No. 23153, Sep. 22, 2011>

(3) A public official who confirms the actual site under paragraph (2) shall carry a certificate indicating

his/her authority and produce it to interested parties.

[This Article Wholly Amended by Presidential Decree No. 21691, Aug. 18, 2009]

Article 3 (Procedure for Hearing of Opinions)

(1) If the Commissioner of the Korean Intellectual Property Office, a Mayor/Do Governor or the head of

a Si/Gun/Guintendsto hear opinionspursuant to Article 9 of the Act, he/she shall provide written

notice tothe relevant party, interested person or witness of the corrective recommendation or his/her

agent at least ten days before a scheduled hearing date, and shall offer him/her with an opportunity

to stateopinions. <Amended by Presidential Decree No. 23153, Sep. 22, 2011>

(2) The relevant party, interested person or witness of the corrective recommendation or his/her agent,

who has received thenotice under paragraph (1), may go to the designated place at the designated

date and time, and state opinions or submit written statements.

(3) If the relevant party, interested person or witness of the corrective recommendation or his/her agent

has appeared and stated opinions pursuant to paragraph (2), the relevant public official shall

prepare written gists and require those who have stated such opinions toverify, sign or seal the

details thereof.

(4) The written notice as prescribed in paragraph (1) shall clarify that, if a persondoes not comply with

the details of the notification without justifiable grounds, he/she shall be deemed to have renounced

the opportunity to state his/heropinions.

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[This Article Wholly Amended by Presidential Decree No. 21691, Aug. 18, 2009]

Article 4 (Entrustment of Duties, Etc.)

(1) and (2)Deleted.<by Presidential Decree No. 23153, Sep 22, 2011>

(3) "A corporationor organization related to the duties of protection of industrial property rights or

prevention of unfair competition prescribed by Presidential Decree" under Article 17 (2) of the Act

means a corporation or organization falling under each of the following subparagraphs: <Amended by

Presidential Decree No. 23153, Sep. 22, 2011>

1. The Korea Invention Promotion Association established under the Invention Promotion Act;

2. A corporation or organization designated and publicly announced by the Commissioner of the

Korean Intellectual Property Office from among those who are acknowledged as having

expertise in the affairs falling under Article 2-2 of the Act.

(4) The provisions of Article 2 (2) and (3) shall apply mutantis mutandis to a person who engages in the

support duties in accordance with Article 17 (3) and (4) of the Act. <Amended by Presidential Decree No.

23153, Sep. 22, 2011>

(5) A corporation or organization that intends to receive subsidies to cover expenses under Article 17 (5)

of the Act shall file an application for a subsidy to cover the expense incurred for the duties of unfair

competition prevention and trade secret protection in attached Table 3, attached with the following

documents, with the Commissioner of the Korean Intellectual Property Office. In such cases, the

Commissioner of the Korean Intellectual Property Office shall verify the corporation registration

certificate (applicable only to a corporation) through the shared use of administrative information

prescribed in Article 36 (1) of the Electronic Government Act:<Amended by Presidential Decree No.

22151, May 4, 2010; Presidential Decree No. 23153, Sep. 22, 2011>

1. Work plan forunfair competition preventionand trade secret protection;

2. Articles of association (limited to a corporation).

(6) The Commissioner of the Korean Intellectual Property Office shall determine and publicly announce

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standards and procedures for designation of a corporation or organization provided for in paragraph

(3) 2. <Amended by Presidential Decree No. 23153, Sep. 22, 2011>

[This Article Wholly Amended by Presidential Decree No. 21691, Aug. 18, 2009]

Article 4-2 (Operating Procedure of Common Affairs)

The Commissioner of the Korean Intellectual Property Office shall determine and publicly announce

the details which are necessary for the operating procedure, guidance, etc. of the duties provided for

in Article 7 through 9 and 20 of the Act.

[This Article Newly Inserted by Presidential Decree No. 23153, Sep. 22, 2011]

Article 5 (Education)

The Commissioner of the Korean Intellectual Property Office may, where deemed necessary,

provide education on duties for public officials engaged in the duties concerning unfair competition

prevention.

[This Article Wholly Amended by Presidential Decree No. 21691, Aug. 18, 2009]

Article 6 (Criteria for Imposition of Fines for Negligence)

The criteria of imposing a fine for negligence as provided for in Article 20 (1) of the Act shall be

prescribed in attached Table.

[This Article Wholly Amended by Presidential Decree No. 21691, Aug. 18, 2009]

ADDENDUM

This Decree shall enter into force on January 1, 1999.

ADDENDUM <Presidential Decree No. 17255, Jun. 27, 2001>

This Decree shall enter into force on July 1, 2001.

ADDENDA <Presidential Decree No. 21691, Aug. 18, 2009>

Article 1 (Enforcement Date)

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This Decree shall enter into force on the date of its promulgation.

Article 2 (Transitional Measures)

(1) Standards for imposing fines for negligence with respect to any offense committed before this

Decree enters into force shall be governed by the previous provisions.

(2) Where standards for imposing fines for negligence per frequency of offense are applied pursuant

to the amended provisions in attached Table, the first offense committed after this Decree enters

into force shall be deemed one offense.

ADDENDA<Presidential Decree No. 22151, May 4, 2010>

Article 1 (Enforcement Date)

This Decree shall enter into force on May 5, 2010.

Articles 2 through 4 Omitted.

ADDENDUM<Presidential Decree No. 23153, Sep. 22, 2011>

This Decree shall enter into force on October 1, 2011.

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