ENFORCEMENT DECREE OF THE BASIC LOGISTICS POLICY ACT. [Effective May 7, 2009] [Presidential Decree No , Apr 30, 2009, Partial Amendment]

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1 The English version is translated and uploaded only for the purpose of no other than PR, and thereby, Enforcement Decree of the Basic Logistics Policy Act in the Korean language will prevail regarding authorization and permission ENFORCEMENT DECREE OF THE BASIC LOGISTICS POLICY ACT [Effective May 7, 2009] [Presidential Decree No , Apr 30, 2009, Partial Amendment] Ministry of Land, Transport, and Maritime Affairs (Logistics Policy Division) Article 1 (Purpose) The purpose of this Decree is to provide for the matters delegated by the Basic Logistics Policy Act and the matters necessary for the enforcement thereof. Article 2 (Special Relationship Excluded from Third Party Logistics) Special relationship defined in the Presidential Decree mentioned in subparagraph 10, paragraph 1 of Article 2 of the Basic Logistics Policy Act, (hereinafter referred to as the Act ), shall be a relationship falling under each of the subparagraphs of paragraph 1 of Article 87 in the Enforcement Decree of the Corporate Tax Act. Article 3 (Scope of Logistics Industry) The scope of the Logistics Industry pursuant to paragraph 2 of Article 2 of the Act shall be as shown in the attached Table 1. Article 4 (Logistics Status Survey Guidelines) 1 Guidelines for the Logistics Status Survey in paragraph 1 of Article 8 of the Act, (hereinafter referred to as the logistics status survey guidelines ), shall include each of the following: 1. Types and items of the survey; 2. Objects, methods, and procedures of the survey; 3. System of the survey; 4. Time and area of the survey; 5. Computation, analysis, and management of the survey results;

2 6. Other matters necessary for an efficient Logistics Status Survey. 2 Any person who conducts a Logistics Status Survey under paragraph 3 of Article 7 of the Act shall conduct a survey in accordance with the logistics status survey guidelines. Article 5 (Change of Important Matters of National Logistics Master Plan) Important matters described by Presidential Decree of paragraph 4 of Article 11 of the Act shall mean each of the following subparagraphs, provided, however, that, in the event that subparagraphs 2 through 4 contain matters reflecting changes in other plans related to the national logistics master plan of Article 11 of the Act, (hereinafter referred to as the national logistics master plan ), such as a Comprehensive Logistics Facility Development Plan under Article 4 of the Logistics Facility Development and Operation Act, a National Backbone Traffic Network Plan under Article 3 of the Traffic System Efficiency Act, and a comprehensive national land plan under Article 9 of the Framework Act on National Land, the same shall be excluded: 1. Goals and important strategies of national logistics policies; 2. Investment priorities of logistics facilities and equipment; 3. Basis of the promotion and support of international logistics; 4. Other matters deemed as requiring the deliberation of the national logistics policy committee under Article 17 of the Act. Article 6 (Establishment of Annual Execution Plan, etc.) 1 Where intending to establish annual execution plans of the national logistics master plan, (hereinafter referred to as the annual execution plan ), pursuant to paragraph 1 of Article 13 of the Act, the Minister of Land, Transport, and Maritime Affairs, (hereinafter referred to as the Minister ), shall consult with heads of relevant government agencies, Mayors of special metropolitan cities and metropolitan cities, Do governors and special self-governing Do, (hereinafter referred to as the Mayor/Do governor ), beforehand, and have the subcommittee on logistics policy under paragraph 1 of Article 19 of the Act deliberate on such matters. <Amended on Feb 29, 2008> 2 The Minister shall notify the heads of relevant government agencies of the established annual execution plan. Such heads shall actively cooperate for the smooth implementation of the annual execution plan. <Amended on Feb 29, 2008> 3 The heads of relevant government agencies shall submit the accomplishments of the previous year s annual execution plan and the annual execution plan for the current year to the Minister by the end of February each year. <Amended on Feb 29, 2008>

3 Article 7 (Change of Important Matters in Local Logistics Master Plan) Important Matters as prescribed by Presidential Decree of paragraph 2 of Article 15 of the Act shall mean each of the following subparagraphs, provided, however, that, in the event that subparagraphs 2 through 4 contain matters reflecting changes in other plans related to the national logistics master plan, such as a Comprehensive Logistics Facility Development Plan under Article 4 of the Logistics Facility Development and Operation Act, a National Backbone Traffic Network Plan under Article 3 of the Traffic System Efficiency Act, and a comprehensive national land plan under Article 9 of the Framework Act on National Land: 1. Goals and important strategies of local logistics policies; 2. Investment priorities of local logistics facilities and equipment; 3. Basis of the promotion and support of international logistics from the local level; 4. Other matters deemed as requiring the deliberations of the local logistics policy committee under Article 20 of the Act, (hereinafter referred to as the local logistics policy committee ). Article 8 (Establishment of the Local Logistics Execution Plan, etc.) 1 Where intending to establish annual execution plans of a local logistics master plan under Article 14 of the Act, (hereinafter referred to as the local logistics execution plan ), pursuant to paragraph 1 of Article 16 of the Act, the Mayors of special metropolitan cities or metropolitan cities, (including Do governors and special selfgoverning Do who establish a local logistics master plan under paragraph 2 of Article 14 of the Act), shall consult with the Minister, heads of relevant government agencies, and Mayors/Do governors of neighboring special metropolitan cities, metropolitan cities, Do and special self-governing Do, (hereinafter referred to as the City/Do ), beforehand, and have the local logistics policy committee deliberate on such matters. <Amended on Feb 29, 2008> 2 After establishing the local logistics execution plan, the Mayors of special metropolitan cities or metropolitan cities shall notify the Minister, heads of relevant government agencies, Mayors/Do governors of neighboring City/Do, and heads, (hereinafter referred to as the Head of City/Gun/Gu ), of the City, Gun, and Gu, (referring to the City, Gun, and autonomous Gu which are local governments; hereinafter referred to as the City/Gun/Gu ), belonging to the City/Do. <Amended on Feb 29, 2008> 3 Mayors/Do governors of neighboring City/Do, heads of City/Gun/Gu belonging to

4 the City/Do, and enterprises and organizations receiving support from a City/Do or City/Gun/Gu under relevant laws and regulations shall actively cooperate for the smooth implementation of the local logistics execution plan. Article 9 (Technical Staff of the National Logistics Policy Committee) 1 The national logistics policy committee under Article 17 of the Act, (hereinafter referred to as the Committee ), may have technical staff of five or less persons under paragraph 5 of Article 18 of the Act. 2 The Minister shall appoint technical staff among the persons falling under any of the following subparagraphs: <Amended on Feb 29, 2008> 1. A person recommended by the heads of government agencies of subparagraph 1, paragraph 2 of Article 18 of the Act; 2. A person with expertise and experience in the logistics-related fields. 3 The term of office of the technical staff shall not exceed three years. Technical staff may be re-appointed. 4 Technical staff may attend and make statements at the meetings of the Committee and the subcommittees under paragraph 1 of Article 19 of the Act, (hereinafter referred to as the subcommittees ). Article 10 (Duty of the Chairperson) 1 The chairperson of the Committee, (hereinafter referred to as the chairperson ), shall represent the Committee and be in charge of the business of the Committee. 2 Where the chairperson is not able to attend Committee meetings due to accident or any other cause, a Committee member previously designated by the chairperson shall act for the chairperson. <Amended on Feb 29, 2008, Apr. 30, 2009> 3 Where a member corresponding to subparagraph 2, paragraph 2 of Article 18 of the Act is sentenced to imprisonment without labor or higher or unable to conduct his/her duties due to long term physical and/or mental illness, or where there are other such special circumstances, the chairperson may relieve such member of their post. In this case, the term of office of the successor shall be the remaining period of the predecessor. Article 11 (Committee Meeting) 1 The chairperson shall call and preside over the Committee meetings. 2 In order to call a Committee meeting, the chairperson shall notify Committee members of the date, time, place, and agenda of the meeting at least five days before the date of the meeting, provided, however, that, in cases of emergency or unavoidable

5 circumstances, the same not apply. 3 Resolutions of the Committee shall be adopted by the presence of a majority of all members in office and by the affirmative votes of a majority of the members present. 4 Where deemed necessary for its deliberation and conduct of business, the Committee may request relevant institutions to submit materials or request interested parties or experts to attend Committee meetings and state opinions. Article 12 (Secretary) 1 The Committee Secretary of paragraph 3 of Article 18 of the Act shall be a government official in the general service of the Ministry of Land, Transport, and Maritime Affairs, belonging to the Senior Civil Service and designated by the chairperson. <Amended on Feb 29, 2008> 2 The Secretary shall conduct Committee business activities under orders of the chairperson. Article 13 (Subcommittee) 1 Subcommittees shall deliberate and coordinate the following: 1. Subcommittee on logistics policy: Matters relating to the establishment and coordination of mid to long term logistics policies; the promotion and support of logistics industries and enterprises, the fosterage of logistics manpower, and matters not within the jurisdiction of the subcommittee on logistics facilities or the subcommittee on international logistics; 2. Subcommittee on logistics facilities: Matters relating to the collectivization, standardization, informatization, and automation of logistics, and the development of logistics facilities, equipment, and programs; 3. Subcommittee on international logistics: Matters relating to the promotion and support of international logistics, such as the building of international logistics cooperation systems, exploration of foreign markets by domestic enterprises, attraction of foreign logistics enterprises and transshipped cargo, and investment in foreign logistics facilities. 2 The Minister shall appoint a chairperson of each subcommittee among the subcommittee members as per subparagraph 1 of paragraph 3. <Amended on Apr. 30, 2009> 3 Subcommittee members shall be any of the following: 1. A government official in general service belonging to the Senior Civil Service of a government agency as mentioned in subparagraph 1, paragraph 2 of Article 18 of the

6 Act and is related to the matters to be deliberated and coordinated by the relevant subcommittee; 2. Three to five persons with expertise and experience in the fields related to the business of the relevant subcommittee, appointed by the subcommittee chairperson. 4 The term of office for subcommittee members who are not government officials shall be two years. Such members may be re-appointed. 5 Articles 10 and 11 shall apply mutatis mutandis to subcommittees. Article 14 (Allowance, etc.) Committee or subcommittee members attending Committee or subcommittee meetings may be remunerated, within the limit of the budget, allowances and travel expenses, provided, however, that, in the event that the members are government officials and their duties are related to the meeting, the same shall not apply. Article 15 (Detailed Regulations of Operation) Except as provided by this Decree, the chairperson of the Committee shall determine matters necessary for the operation of the Committee and subcommittees after a resolution of the Committee. Article 16 (Local Logistics Policy Committee) 1 The local logistics policy committee shall consist of 20 or less members, including the chairperson. 2 The Mayor/Do governor shall be the chairperson of the local logistics policy committee, and the following persons appointed or designated by the chairperson shall be members: 1. Head of the concerned and neighboring City/Gun/Gu; 2. Government official of a grade 3 level or higher who is in charge of logistics-related business in the concerned City/Do; 3. Persons with expertise and experience in logistics related fields. 3 The term of office for members who are not government officials shall be two years. Such members may be re-appointed. 4 Articles 10 through 12, 14 shall apply mutatis mutandis to the local logistics policy committee. 5 Other matters necessary for the organization and operation of the local logistics policy committee shall be prescribed by ordinance of the relevant City/Do.

7 Article 17 (Logistics-Related Institution, etc.) 1 Logistics institutions designated by Presidential Decree, (hereinafter referred to as logistics-related institutions ), other than those of each subparagraph of Article 22 of the Act, shall refer to the following subparagraphs: 1. Public service institutions under the Public Service Institution Operation Act, which are related to logistics; 2. Local public enterprises under the Local Public Enterprises Act, which are related to logistics; 3. Non-profit legal persons established under Article 32 of the Civil Act who are related to logistics. 2 Airports, ports, and industrial complexes designated by Presidential Decree of paragraph 3 of Article 22 of the Act shall refer to the following subparagraphs: 1. Airports with facilities for cargo transportation among those under subparagraph 5 of Article 2 of the Aviation Act; 2. Ports with facilities for cargo transportation among those under subparagraph 1 of Article 2 of the Harbor Act; 3. National industrial complexes under Item A, subparagraph 5 of Article 2 of the Industrial Sites and Development Act. Article 18 (Guidelines for Calculating Enterprises Logistics Costs) Guidelines for calculating enterprises logistics costs under paragraph 1 of Article 26 of the Act shall include the following subparagraphs: 1. Definition of logistics cost-related terms and concepts; 2. Classification of logistics costs by the criteria of fields and functions, and classifications between self and delegated; 3. Criteria and methods of calculating logistics costs; 4. Standard forms of logistics cost statements. Article 19 (Logistics Information Measures) 1 When taking measures for an efficient logistics system through logistics informatization, pursuant to paragraph 1 of Article 27 of the Act, the Minister, the Minister of the Knowledge Economy, or the head of the Korea Customs Service shall include each of the following subparagraphs: <Amended on Feb 29, 2008> 1. Standards of logistics information; 2. Introduction and dissemination of telecommunications technology in the logistics fields;

8 3. Connection and joint use of logistics information; 4. Security of logistics; 5. Other matters necessary for the improvement of logistics efficiency. 2 Where necessary for the implementation of paragraph 1, the Minister, the Minister of the Knowledge Economy, or the head of the Korea Customs Service may make a public notice of, or recommend logistics-related institutions or enterprises to execute, such items. <Amended on Feb 29, 2008> Article 20 (Designation of Institutions in Charge of Unit Logistics Information Networks) 1 Relevant government agencies or logistics-related institutions may designate one of the following as the institution to construct and operate all or part of the Unit Logistics Information Network under paragraph 1 of Article 28 of the Act, (hereinafter referred to as the institution in charge ): 1. Public service institutions under the Public Service Institution Operation Act; 2. Government-funded research institutions under the Act on the Establishment, Operation, and Fostering of Government-funded Research Institutions and the Act on the Establishment, Operation, and Fostering of Government-funded Research Institutions in the Science and Technology Fields; 3. Corporations under the Commercial Act with a paid-in capital of KRW1 billion or more, provided, however, that a single shareholder, except the Government, public service institution, or non-profit legal person, may not own more than 15% of the total voting shares. 2 When designating the institution in charge, relevant government agencies or logistics-related institutions shall determine the designation criteria, and methods and periods of application for designation, and announce said matters in the Official Gazette, official bulletin, or the Internet homepage for 30 days or more. 3 When designating the institution in charge, relevant government agencies or logistics-related institutions shall comprehensively review the applicant s capabilities for conducting business and the reasonableness of their business plan. 4 When designating the institution in charge, relevant government agencies or logistics-related institutions shall deliver a certificate of designation. In such a case, they shall notify other relevant government agencies or Logistics Related-Institutions and announce such said fact in the Official Gazette, official bulletin, or the Internet homepage.

9 Article 21 (Designation of a Comprehensive Logistics Information Network Operator) 1 Public Service Institution designated by Presidential Decree of subparagraph 1, paragraph 2 of Article 29 and subparagraph 2, paragraph 2 of Article 30 of the Act shall refer to an institution falling under any of the following subparagraphs: <Amended on Feb 29, 2008> 1. Korea Railroad Corporation under the Korea Railroad Corporation Act; 2. Korea Expressway Corporation under the Korea Expressway Corporation Act; 3. Incheon International Airport Corporation under the Incheon International Airport Corporation Act; 4. Korea Airports Corporation under the Korea Airports Corporation Act; 5. Korea Land Corporation under the Korea Land Corporation Act; 6. Korea Container Terminal Authority under the Korea Container Terminal Authority Act; 7. Port Authority under the Port Authority Act; 8. Other institutions designated and announced by the Minister. 2 A person intending to be designated as a comprehensive network operator of paragraph logistics information 3 of Article 29 of the Act pursuant to paragraph 2 of Article 29, (hereinafter referred to as the comprehensive logistics information network operator ), shall prepare an application for designation and accompanying documents set forth in the Ordinance of the Ministry of Land, Transport, and Maritime Affairs, and submit them to the Minister, where there is a public notice under paragraph 3. <Amended on Feb 29, 2008> 3 Where intending to receive applications for designation as a comprehensive logistics information network operator, the Minister shall determine, after deliberation by the subcommittee on logistics facilities under subparagraph 2, paragraph 1 of Article 19 of the Act, review criteria by categories, application methods, periods of receiving application, etc, and make a public notice thereof for 30 days or more in the Gazette. <Amended on Feb 29, 2008> 4 Where intending to designate a comprehensive logistics information network operator, the Minister shall comprehensively review the applicant s capabilities of conducting business and the reasonableness of their business plan. <Amended on Feb 29, 2008> 5 After designating a comprehensive logistics information network operator, the Minister shall deliver a certificate of designation set forth in the Ordinance of the Ministry of Land, Transport, and Maritime Affairs, and announce such said fact in the Gazette. <Amended on Feb 29, 2008>

10 6 After canceling a designation of a comprehensive logistics information network operator pursuant to Article 31 of the Act, the Minister shall announce such said fact in the Official Gazette. <Amended on Feb 29, 2008> Article 22 (Designation of a National Logistics Integrated Database Operator) Article 21 of the Act shall apply mutatis mutandis to any Designation of a national logistics integrated database operator pursuant to paragraph 4 of Article 30 of the Act. Article 23 (Scope of Duties of Comprehensive Logistics Information Network Operator) 1 A comprehensive logistics information network operator shall conduct the following duties: <Amended on Feb 29, 2008> 1. Basic survey, design, and construction of a comprehensive logistics information network; 2. Promoting the distribution and use of electronic documents and logistics information; 3. Transmission of logistics information; 4. Developing and operating the information network for cargo and means of cargo transport; 5. Construction and security management of computing equipment, such as computers and telecommunication equipment; 6. Providing technical information on the comprehensive logistics information network; 7. Other matters deemed necessary by the Minister. 2 A national logistics integrated database operator shall conduct the following duties, which shall not interfere or overlap with those of a person delegated with the duties of building and operating the national traffic database under Article 9-4 of the Traffic System Efficiency Act and Article 24 of the Enforcement Decree as prescribed under such said Act: <Amended on Feb 29, 2008> 1. Basic survey, design, and construction of the national logistics integrated database; 2. Survey, collection, processing, and storage of logistics information; 3. Providing logistics information to users; 4. Promoting the distribution and use of logistics information; 5. Other matters deemed necessary by the Minister. 3 A comprehensive logistics information network operator and national logistics integrated database operator shall submit accomplishments of the previous year and the

11 business plan for the current year, including activities related to paragraphs 1 and 2, to the Minister by the end of February each year. <Amended on Feb 29, 2008> Article 24 (Scope of Logistics-Related Duties) Logistics-related duties described by Presidential Decree of paragraph 1 of Article 32 of the Act and relevant duties such as the use of logistics facilities described by Presidential Decree of paragraph 1 of Article 35 of the Act shall refer to the development and use of logistics facilities, support of logistics businesses, various applications and reports concerning logistics businesses, and other activities related to the administration of logistics, among the duties based on the Act and the following statutes and decrees prescribed hereunder: <Amended on Feb 29, 2008> 1. Public Order in Open Ports Act; 2. Quarantine Act; 3. Pilotage Act; 4. Logistics Facility Development and Operation Act; 5. Commercial Act; 6. Railroad Business Act; 7. Aviation Act; 8. Harbor Act; 9. Harbor Transport Business Act; 10. Marine Transport Act; 11. Trucking Transport Business Act; 12. Other statutes announced by the Minister after consultation with heads of relevant government agencies. Article 25 (Storage Period for Electronic Documents and Logistics Information) The storage period for electronic documents and logistics information pursuant to paragraph 3 of Article 33 of the Act shall be three years. Article 26 (Disclosure of Electronic Documents and Logistics Information) 1 Provided for by Presidential Decree in paragraph 1 of Article 34 of the Act shall refer to one of the following subparagraphs, in which neither a threat against national security nor an invasion of enterprises business secrets are present: <Amended on Feb 29, 2008> 1. Requests of relevant government agencies or local governments due to administrative purposes;

12 2. Requests of criminal investigation authorities due to investigative purposes; 3. Court orders for the presentation of information; 4. When required by other laws and regulations to disclose information; 5. Where the Minister decides that disclosure is necessary, based on requests by a comprehensive logistics information network operator or a national logistics integrated database operator. 2 When disclosing electronic documents or logistics information pursuant to paragraph 1 of Article 34 of the Act, a comprehensive logistics information network operator or a national logistics integrated database operator shall obtain the written, (including electronic documentation), consent of all interested parties 60 days from the application of paragraph 1. 3 Interested parties described by Presidential Decree in paragraph 2 of Article 34 of the Act shall refer to persons having a direct interest in the electronic documents or logistics information in question. Article 27 (Logistics-Related Laws and Regulations) Other logistics-related laws and regulations designated by Presidential Decree in subparagraph 1, paragraph 2 of Article 36 of the Act shall refer to the following: <Amended on Feb 29, 2008> 1. Laws and regulations in subparagraphs 1 through 11 of Article 24; 2. Distribution Industry Development Act; 3. Distribution and Price Stabilization of Agricultural and Fishery Products Act; 4. Other laws and regulations announced by the Minister after consultation with the Minister of Food, Agriculture, Forestry, and Fisheries or the Minister of the Knowledge Economy. Article 28 (Inspection of Certified Integrated Logistics Company) 1 Pursuant to paragraph 3 of Article 38 of the Act, the Minister in charge under paragraph 1 of Article 38, (hereinafter referred to as the Minister in Charge ), shall inspect items pursuant to the joint ministerial decree of subparagraph 2, paragraph 2 of Article 38, (hereinafter referred to as the Joint Ministerial Decree ), as to whether or not a person certified as a integrated logistics company under paragraph 1 of Article 38, (hereinafter referred to as the certified integrated logistics company ), continues to meet the requirements of paragraph 2 of Article 38, once every two years. 2 The Minister in Charge may conduct a separate inspection pursuant to the Joint Ministerial Decree if he/she decides that the certified integrated logistics company fails

13 to meet the requirements of paragraph 2 of Article The Minister in Charge may, pursuant to the Joint Ministerial Decree, have the certification center for a integrated logistics company under Article 40 of the Act, (hereinafter referred to as the certification center ), conduct inspections under paragraphs 1 or 2. Article 29 (Support Activities for Certification Center, etc.) 1 Other support activities necessary for the smooth certification work as prescribed by Presidential Decree in subparagraph 4, paragraph 1 of Article 40 of the Act shall refer to activities falling under any of the following subparagraphs: <Amended on Feb 29, 2008> 1. Preparation of detailed rules of certification, such as methods and procedures of reviews of certification under paragraph 1 of Article 38 of the Act, (hereinafter referred to as certification ); 2. Establishment and report of results concerning certification review plans, and inspection plans of Article 28 of the Act; 3. Administration of members of the certification review committee; 4. Public relations activities on the certification system and the certified integrated logistics company; 5. Research of certification systems; 6. Other business activities determined and announced by the Minister. 2 After the designating of a certification center pursuant to paragraph 2 of Article 40, the Minister shall announce such said fact in the Gazette. <Amended on Feb 29, 2008> Article 30 (Logistics-Related Facilities) Other logistics-related facilities designated by Presidential Decree in subparagraph 4, paragraph 2 of Article 40 of the Act shall refer to facilities falling under each of the following subparagraphs: <Amended on Feb 29, 2008> 1. Logistics facilities and subsidiary facilities, among railroad facilities under the Framework Act on the Development of the Railroad Industry; 2. Facilities intended for the transport of cargo in airport zones, subsidiary facilities, and support facilities, among airport facilities under the Aviation Act; 3. Collection/delivery facilities and joint collection/delivery centers under the Distribution Industry Develop Act; 4. Other logistics-related facilities announced by the Minister after consultation with heads of relevant government agencies.

14 Article 31 (Establishment of International Forwarding Business-Related Association) 1 International forwarder under paragraph 2 of Article 43 of the Act, (hereinafter referred to as international forwarders ), may establish an international forwarding business-related association under paragraph 1 of Article 48 of the Act, (hereinafter referred to as the international forwarding business-related association ), on a national basis or on a City/Do basis. 2 A person intending to establish an international forwarding business-related association shall submit to the Minister an application for approval of establishment accompanied by the following documents, after obtaining a resolution of the incorporating meeting under paragraph 2 of Article 48 of the Act: <Amended on Feb 29, 2008> 1. Articles of incorporation; 2. List and resumes of incorporators; 3. List of members; 4. Business plan and revenue and expenditure plan of the budget; 5. Minutes of the incorporating meeting. Article 32 (Business of the International Forwarding Business-Related Association) The international forwarding business-related association shall conduct the following: <Amended on Feb 29, 2008> 1. Promotion of the sound development of the international forwarding business and the common interests of international forwarders; 2. Preparation and administration of statistics necessary for fostering and developing international forwarding businesses, and collecting, investigating, and researching foreign materials; 3. Education and training of officers and employees; 4. Guidance for improving the management of the international forwarding business; 5. Business delegated from the Minister; 6. Additional business activities to those of subparagraphs 1 through 5. Article 33 (Articles of Incorporation of the International Forwarding Business-Related Association) 1 Articles of incorporation of the international forwarding business-related association shall include the following: 1. Purpose;

15 2. Name; 3. Location of office; 4. Members and general meeting; 5. Officer; 6. Business; 7. Accounting and member fees; 8. Amendment of Articles of incorporation; 9. Dissolution; 10. Method of public notice. Article 34 (Training of Logistics Manpower) Fields of logistics designated by Presidential Decree of paragraph 1 of Article 50 of the Act shall refer to the following: 1. Fields related to logistics business activities; 2. Research and development of logistics facilities and equipment; 3. Research and development of informatization, standardization, and collectivization of logistics. Article 35 (Examination for the Qualifications of a Logistics Manager) Examination for the qualifications of logistics managers under Article 51 of the Act, (hereinafter referred to as the examination ), shall be given once per year, provided, however, that if the Minister recognizes a special need on account of the demand and supply of certified professional logistics, the examination may be given once every two years. <Amended on Feb 29, 2008, Oct 20, 2008> Article 36 (Examination Method) 1 Examinations shall be in writing. 2 Examinations shall be in a multiple-choice format, in principle. However, essay formats may be added. Article 37 (Examination Subject) 1 Examinations shall have a focus on certifying basics and the knowledge necessary for logistics management, and on certifying theoretical and practical capabilities. 2 Examination subjects shall be as shown in attached Table 2. 3 A person who has completed (restricted to earning credits) all the courses of logistics management, (excluding cargo transport, storage loading/unloading, and international

16 logistics), cargo transport, storage loading/unloading, and international logistics at a graduate school where such courses are given, and received a degree higher than a master s degree, shall be exempted from the subjects of paragraph subject of logistics-related law. 2, except for the Article 38 Deleted <Amended on Oct 20, 2008> Article 39 (Forming Examination Questions) 1 The Minister may designate or appoint persons who will be in charge of making and selecting questions, (hereinafter referred to as the examiner ), among persons with expertise and experience in the logistics-related fields. <Amended on Feb 29, 2008> 2 Examiners of paragraph 1 and examination supervisors may be remunerated, within the limits of the budget, for allowances and travel expenses. Article 40 (Public Notice of Examination) 1 In order to implement the examination, the Minister shall announce the content, date, and place of the examination, and the method for determining successful candidates in important daily newspapers at least 30 days before the examination date. <Amended on Feb 29, 2008> 2 A person intending to take the examination shall submit an application as prescribed by Ordinance of the Ministry of Land, Transport, and Maritime Affairs. <Amended on Feb 29, 2008> 3 A person submitting an application under paragraph 2 shall pay fees as prescribed by Ordinance of the Ministry of Land, Transport, and Maritime Affairs. <Amended on Feb 29, 2008> 4 If a person having paid fees under paragraph 3 withdraws the application pursuant to the Ordinance of the Ministry of Land, Transport, and Maritime Affairs, all or part of the fees paid shall be refunded. <Amended on Feb 29, 2008> Article 41 (Determination of Successful Applicants) 1 A person earning a score of 40 or more (out of 100) in all the subjects and an average score of 60 or more shall pass the examination, provided, however, that if the Minister has already announced the expected number of successful candidates in recognition of special needs on account of the demand and supply of certified professional logistics, successful applicants shall be determined by the order of the highest score, within the expected number of successful candidates announced, and among the candidates

17 earning a score of 40 or more. <Amended on Feb 29, 2008, Oct 20, 2008> 2 With respect to the provision in paragraph 1, candidates earning the same score shall all be successful candidates even if the number of successful candidates exceeds the expected number announced. In such a case, the points of any same-score applicants shall be determined by comparing the scores down to two decimal places. 3 When successful candidates have been determined pursuant to paragraphs 1 and 2, the Minister shall announce the successful candidates in the official Gazette and deliver the licenses as prescribed by Ordinance of the Ministry of Land, Transport, and Maritime Affairs. <Amended on Feb 29, 2008> Article 42 (Establishment of the Logistics-Related Association) Where intending to establish a logistics-related association under Article 55 of the Act, (hereinafter referred to as the logistics-related association ), logistics enterprises, consignor enterprises, and others related to logistics activities shall submit to the Minister an application prescribed by Ordinance of the Ministry of Land, Transport, and Maritime Affairs accompanied by the following documents, pursuant to paragraph 2 of Article 55 of the Act: <Amended on Feb 29, 2008> 1. Articles of incorporation; 2. List and resumes of incorporators; 3. List of members; 4. Business plan and revenue and expenditure plan of the budget; 5. Minutes of the incorporating meeting. Article 43 (Duties of the Logistics-Related Association) The logistics-related association shall conduct the following activities: <Amended on Feb 29, 2008> 1. Promotion of the sound development of relevant businesses and the common interests of relevant business operators; 2. Preparation and administration of statistics necessary for fostering and developing relevant businesses, and collecting, investigating, and researching foreign materials; 3. Education and training of officers and employees; 4. Guidance for improving the management of relevant businesses; 5. Business delegated from the Minister; 6. Additional business activities to those of subparagraphs 1 through 5. Article 44 (Articles of Incorporation of the Logistics-Related Association)

18 With respect to matters to be included in the Articles of incorporation of a logisticsrelated association, Article 33 shall apply mutatis mutandis. Article 45 (Establishment of a Logistics Support Center) logistics-related association and logistics-related organizations designated by Presidential Decree in paragraph 1 of Article 56 of the Act shall refer to an association or group falling under any of the following subparagraphs: <Amended on Feb 29, 2008> 1. International forwarding business association; 2. Logistics-related association; 3. Associations and federations established by trucking transport business operators under paragraph Transport Business Act; 1 of Article 33 and paragraph 1 of Article 35 of the Trucking 4. Non-profit legal persons established under Article 32 of Civil Act related to logistics; 5. Other institutions designated and announced by the Minister after consultation with the heads of relevant government agencies. Article 46 (Operation of a Logistics Support Center) 1 Logistics support centers established under Article 56 of the Act shall be organized so as to effectively conduct the relevant business activities, such as a head of the center. 2 The Head of the center shall establish a business plan each year, make rules for the organization, personnel, duties, remuneration, accounting, assets, and documents, and conduct business activities pursuant thereto. 3 The Heads of government agencies providing administrative and financial support under paragraph 4 of Article 56 of the Act may request the head of the center to submit the accomplishments of the previous year and the business plan for the current year, including businesses of paragraph 2 of the above Article, to the Minister by the end of February each year. Article 47 (Environmentally Friendly Logistics Activities) Other environmentally friendly logistics activities designated by Presidential Decree in subparagraph 3, paragraph 2 of Article 59 of the Act shall refer to the following: <Amended on Feb 29, 2008> 1. Introduction and development of an environmentally friendly logistics system; 2. Reduction of waste due to logistics activities;

19 3. Other matters related to saving and recycling logistics resources, as designated by the Minister. Article 48 (Support for Conversion into Environmentally Friendly Means of Transport) 1 Objects of support of paragraph 1 of Article 60 of the Act shall be any of the following subparagraphs: 1. Conversion into means of transport reducing or capable of reducing the exhaust of trucks, rolling stocks, ships, and aircraft, and investment in the facilities and equipment for such purposes; 2. Conversion into means of transport using environmentally friendly fuel, and investment in the facilities and equipment for such purposes; 2 Content of support of paragraph 1 following: <Amended on Feb 29, 2008> of Article 60 of the Act shall be any of the 1. Subsidy, loan, and brokering of a loan required for conversion into environmentally friendly means of transport; 2. Education, consulting, and provision of information required for conversion into environmentally friendly means of transport; 3. Other matters announced by the Minister in order to support conversion into environmentally friendly means of transport after consultation with the heads of relevant government agencies. Article 49 (Support for International Logistics Businesses) Logistics enterprises or related organizations designated by Presidential Decree of paragraph 2 of Article 61 of the Act shall refer to enterprises or organizations corresponding to one of the following subparagraphs: <Amended on Feb 29, 2008> 1. Enterprises conducting logistics business activities; 2. Government-funded research institutions, as mentioned below, under the Act on the Establishment, Operation, and Fostering of Government-funded Research Institutions; A. Korea Research Institute for Human Settlement; B. Korea Transport Institute; C. Korea Maritime Institute. 3. Korea Railroad Research Institute under the Act on the Establishment, Operation, and Fostering of Government-funded Research Institutions in the Science and Technology Fields; 4. International forwarding business associations; 5. Logistics-related associations;

20 6. Logistics support centers under Article 56 of the Act; 7. Associations and federations established by trucking transport business operators under paragraph Transport Business Act; 1 of Article 33 and paragraph 1 of Article 35 of the Trucking 8. Korean international Trade Association established under Article 32 of the Civil Act related to logistics; 9. Other institutions designated and announced by the Minister after consultation with the Minister of the Knowledge Economy. Article 50 (Target Organization of the Evaluation of Investment Attraction Activities, etc.) 1 The Minister may evaluate investment attraction activities under paragraph Article 63 of the Act as regards persons who were granted ownership of or a right to manage and operate the following logistics facilities: <Amended on Feb 29, 2008> 1. Logistics facilities located at international airports, among the airports under paragraph 5 of Article 2 of the Aviation Act, and associated sites; 2. Logistics facilities located in trade ports, among the designated ports under paragraph 5 of Article 2 of the Port Act, and associated sites; 2 The Minister may request any evaluated institution to submit materials if necessary for evaluation under paragraph 1. <Amended on Feb 29, 2008> 3 Criteria and methods necessary for evaluation under paragraph 1 1 of shall be determined by the Minister after consultation, so that the business, characteristics, degree of reaching the target, and efficiency of the evaluated institutions may be objectively measured. <Amended on Feb 29, 2008> 4 The Minister may provide differentiated administrative and financial support to the evaluated institutions depending on the results of any evaluations. <Amended on Feb 29, 2008> Article 51 (Delegation of Authority) 1 The Minister shall delegate the following authorities to the Mayor/Do governor pursuant to Article 65 of the Act: <Amended on Feb 29, 2008> 1. Registration and registration for a change of international forwarding business pursuant to paragraphs 1 and 2 of Article 43 of the Act; 2. Acceptance of an application for the succession of an international forwarding business pursuant to paragraph 2 of Article 45 of the Act; 3. Acceptance of a report of suspension, discontinuation, and/or dissolution of an

21 international forwarding business pursuant to paragraphs 1 and 2 of Article 46 of the Act; 4. Cancellation of registration and order of a suspension of an international forwarding business pursuant to paragraph 1 of Article 47 of the Act; 5. Imposition and collection of a surcharge from an international forwarder pursuant to Article 67 of the Act; 6. Hearing for an international forwarder pursuant to paragraph 3 of Article 68 of the Act; 7. Collection of fees pursuant to subparagraph 2, paragraph 1 of Article 69 of the Act; 8. Imposition and collection of civil penalties from an international forwarder pursuant to subparagraph 2, paragraph 1 of Article 73 of the Act. 2 When conducting any delegated business activities under paragraph 1 (excluding subparagraphs 6 and 7), the Mayor/Do governor shall integrate the results each quarter and report said results to the Minister within 15 days of the end of each quarter. <Amended on Feb 29, 2008> Article 52 (Violation Activities Attracting the Imposition of a Surcharge and the Amount of the Surcharge) 1 The types of violations for which a surcharge shall be imposed under paragraph 1 of Article 67 of the Act and the amount of the surcharge shall be as shown in the attached Table 3. 2 The Minister, (referring to the Mayor/ Do governor when authorities are delegated to the Mayor/Do governor), may increase or decrease the amount of the surcharge under paragraph 1 within 50% of the amount considering the business size, characteristics of the business area, and the severity and number of violations of the international forwarder. The amount of the surcharge shall not exceed KRW10 million, even where increased. <Amended on Feb 29, 2008> Article 53 (Imposition and Collection of a Surcharge) 1 Where intending to impose a surcharge on a person committing a violation under paragraph 1 of Article 52 of the Act, the Minister shall investigate and verify such said violation, and notify the person obligated to pay the surcharge to make payments, by clarifying in writing the violation, and the method and period of appeal. <Amended on Feb 29, 2008> 2 A person receiving a notification under paragraph 1 shall pay to the money receiving institutions designated by the Minister within 20 days of receipt of the

22 notification, provided, however, that if he/she is not able to pay due to force majeure such as an Act of God, he/she is allowed to pay within 7 days of the end of such said force majeure. <Amended on Feb 29, 2008> 3 Institutions receiving the surcharge payment pursuant to paragraph 2 shall issue a receipt. 4 When issuing a receipt pursuant to paragraph 3, the money receiving institution of the surcharge shall send the Minister a notification of the receipt. <Amended on Feb 29, 2008> 5 The surcharge shall not be paid in installments. Article 54 (Demands for Payment and Collection of a Surcharge) 1 When a person receiving a notification to pay a surcharge under paragraph 1 of Article 53 of the Act fails to pay by the due date, the Minister shall send a demand notice within 7 days of the expiration of the due date. In such cases, the due date shall be within 10 days of sending the demand notice. <Amended on Feb 29, 2008> 2 When a person receiving a demand notice under paragraph 1 fails to pay by the due date, the Minister may have government officials belonging to the Ministry conduct mandatory levies by referring to the practices on the default of national taxes. Such officials shall present a certificate indicating their authority to the interested parties. <Amended on Feb 29, 2008> Article 55 (Imposition of a Civil Penalty) 1 Criteria for the imposition of a civil penalty under paragraph 1 of Article 73 of the Act shall be as shown in the attached Table 4. 2 The Minister may increase or decrease the amount of a civil penal under the attached Table 4 within 50% of the amount considering motive for, and the number of, relevant violations. The amount of the civil penalty shall not exceed KRW2mil, even where increased. [Entire article amended Apr 30, 2009] ADDENDUM [No , Apr 30, 2009] This Decree shall enter into effect on May 7 th of 2009.

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