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[R&D] Enactment Of The National Research And Development Innovation Act

2020.06.17

1. Purpose of Enactment 
 
The total budget for the government’s investment in research and development in 2020 is KRW 24.1 trillion, an increase of 17.3% from the previous year. This increase fuels expectations for the government’s aggressive investment in research and development for innovative growth and economic vitality. Against this backdrop, on June 9, 2020, the National Research and Development Innovation Act (the “Act”) was enacted. 
 
The Act will provide the general guidelines for operating the national R&D business to all of the government departments so as to operate the national R&D business, which has been separately operated by each department, in a comprehensive and systematic manner. The Act will be effective on January 1, 2021. 
 
 
2. Main points 
 
1) Relationship with other laws 
 
The Act shall prevail over other laws (Article 4), and the head of central administrative agencies shall negotiate with the Minister of Science and ICT, if it intends to enact, amend, or terminate relevant regulations such as rules and guidelines (Article 8 (2)) 
 
2) Ownership of R&D Achievements 
 
All the rights of the researchers related to the achievements of the project shall be succeeded to the institution which conducted the project (Article 16 (1)) and the R&D institution shall endeavor to compensate to the persons who contribute to generation and utilization of the achievements (Article 6). 
 
3) Designation of Specialized Institutions and Cancellation of Designation 
 
The Act provides the businesses assigned or entrusted to the specialized institutions designated by each central administrative agency (Article 2 (4)). The Minister of Science and ICT may request to a head of a central administrative agency to designate specialized institutions or cancel the designation, or to increase the operational efficiency after investigation of the conditions of designation and operation of specialized institutions, and deliberation of the Presidential Advisory Council on Science and Technology (Article 23 (2)). 
 
4) Establishment of Research Support System 
 
The R&D institutions designated by a presidential decree such as universities shall have a research support system which satisfies the requirements such as maintenance of personnel for research support and establishment of an organization dedicating to research support (Article 24 (2)), and the Minister of Science and ICT may prescribe the standards for research support and suggest them to the institutions (Article 24 (3)). 
 
5) Expansion of Scope of Misconduct 
 
The Act expands the scope of misconduct to an unjustifiable use of R&D funds, arbitrary possession of the R&D achievements, and disclosure of confidential information, from forging, falsifying, and plagiarizing of the results and unjust indication of the authors, and acknowledges that the research institutions’ obligations of verification and actions (Article 31). 
 
6) Strengthening and Change of Sanction Standards 
 
The Act expand the target of penalty from those who use the research funds for purposes other than research to those who engage in any acts subject to restriction on research participation, and extend the participation restriction period from ‘within 5 years’ to ‘within 10 years (Article 32). 
 
At the same time, the Act provides that the exclusion period for the sanction shall be 10 years from the end date of the national research and development project (Article 32). 
 
 
3. Outlook 
 
Currently, under the Framework Act on Science and Technology, each central administrative agency has made their own standards. If the National Research and Development Innovation Act becomes effective, the standards such as the standards for assessment and management by each central administrative will be amended. 
 
As the scope of misconduct is expanded and the standards and targets of levies becomes tighter, the research institutions and other specialized institutions will have to make a research management system and standards in accordance with the amended and tightened standards.

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