(1) Reasons for Proposal

As the Software Industry Promotion Act (Act No. 17348; promulgated on June 9, 2020; enforced on December 10, 2020) was amended to build the industrial foundation, including nurturing talented individuals in software and promoting technology development, as well as to improve the software business system, this Whole Amendment aims to define matters delegated from the Act and other matters required to enforce the Act.

(2) Major Provisions

A. Designate software industry promotion agencies by regions (Articles 7 and 8 newly inserted) 

1) Define designation requirements and commissioned tasks for a software industry promotion agency in a specific region with newly inserted Article 9 (Promotion of the Software Industry by Region) of the Act to support the promotion of the software industry based on regional characteristics and facilitate its convergence with other regional industries.

2) Allow the regional industry promotion agency to establish the software industry development council to promote development in the regional software industry by gathering feedback.

B. Specify details to be included in a contract about software business (Article 30 newly inserted) 

Make it mandatory to specify in the software business contract the method to determine the details of a task, the timing of such determination, the contract amount and period, any change in the contract, compensation for damages, and intellectual property ownership under newly inserted Article 38 (Principle of Fair Contract) of the Act.

C. Define requirements for private investment-type software project (Articles 32 and 33 newly inserted) 

Define the requirements and procedures for a private investment-type software project with newly inserted Article 40 (private investment-type software project).

D. Specify a reason for rejecting the transfer of software output (Article 54 newly inserted) 

Specify a reason for rejecting the transfer of software output under newly inserted Article 59 (Guaranteed Use of Software Output).