Any Electricity Generating Enterprise and the Electricity Transmission and Distribution Enterprise, when building or expanding their facilities, shall prepare and submit an application and supporting documentation which transferred by the government agency to which the enterprise belongs or the level of the Municipal Government or County (City) to the electricity industry regulatory agency to apply for a permit for the building or expansion project.
If the application described in the preceding paragraph requires an environmental impact assessment pursuant to the Environmental Impact Assessment Act, the applicant shall provide documentation from the environmental protection competent authority showing the completion of the review or approval.
The building or expansion permit described in the first paragraph of this Article shall be valid for 3 years, but an extension with justifiable reasons may be applied before the expiration of the current permit. The extension period shall not exceed two years.

The electricity industry regulatory agency, in reviewing the permit application prescribed in the first paragraph of the preceding article, shall consider energy policy, Electricity Carbon Emission Factor, national land development, balanced regional development, environmental protection, fair competition among electricity enterprises, supply and demand of electric power, backup capacity, and the safety of the power systems in addition to the merits of the applicant’s plan.

Any Electricity Generating Enterprise or the Electricity Transmission and Distribution Enterprise, once it has obtained a building or expansion permit, shall obtain work permits issued by the electricity industry regulatory agency and begin construction within the period of validity for the building or expansion permit. The construction shall be completed within the period of validity for the work permit.
The period of validity for the work permit described in the previous paragraph is 5 years, unless an extension is granted with justifiable reason by the electricity industry regulatory agency.
Within 30 days of the completion of a building or expansion project, the Electricity Generating Enterprise or Electricity Transmission and Distribution Enterprise shall prepare relevant documents and information which will transferred by the government agency to which the enterprise belongs or the competent authority at the level of the Municipal Government or County (City) Government to the electricity industry regulatory agency to apply for issuance or replacement of the appropriate electricity license.
After the submission of the application described in the previous paragraph, the enterprise may begin operations only after the electricity industry regulatory agency performs the necessary inspection and approves the work, and the new or replaced electricity license is obtained.
Electricity Retailing Enterprises shall apply to the electricity industry regulatory agency for an appropriate electricity license before beginning business operation.

Unless otherwise approved by the electricity industry regulatory agency, an Electricity Generating Enterprise that has been granted a building permit, expansion permit or work permit shall not change the source of energy, installed capacity, or site of its major power generation equipment.
Article 14 of this Act applies mutatis mutandis to the review of any change described in the preceding paragraph.

The period of validity for an electricity license issued to an Electricity Enterprise is twenty years starting from the date of issuance by the electricity industry regulatory agency. The enterprise may apply for an extension with electricity industry regulatory agency one year prior to the expiration of the license. Each extension period shall be no longer than 10 years.
Article 14 of this Act applies mutatis mutandis to the review of any application by an Electricity Generating Enterprise or Electricity Transmission and Distribution Enterprise for the extension of its electricity license described in the preceding paragraph.

The Electricity Transmission and Distribution Enterprise shall not refuse any request put forward by any Electricity Generating Enterprise or operator of Self-Use Power Generation Equipment for connection to its power grid. Renewable Energy-Based Electricity Generating Enterprise shall be given priority in grid connections. However, this Article does not apply to Electricity Facilities or Self-Use Power Generation Equipment that request connection but do not meet the requirements provided in paragraph 1 and paragraph 3 of Article 25, Article 26, Article 29 to Article 31, Article 71 mutatis mutandis applying the above provisions, or Article 32.

An Electricity Enterprise shall not unilaterally terminate or suspend its operations. However, the restriction does not apply to Electricity Generating Enterprises and Renewable Energy-Based Electricity Retailing Enterprises that have received permission from the electricity industry regulatory agency.
An Electricity Generating Enterprise or Renewable Energy-Based Electricity Retailing Enterprise that wishes to suspend its operations shall apply to the electricity industry regulatory agency for permission and submit a business suspension plan. The period of suspension shall not exceed one year.
An Electricity Enterprise that wishes to terminate its operations shall apply to the electricity industry regulatory agency for permission and submit a business termination plan. Its Electricity Enterprise license shall be returned to the same agency for cancellation within 15 days of the termination. The electricity industry regulatory agency may proceed to cancel the license if the Electricity Enterprise fails to submit the license within the prescribed time limit.

In the case of the suspension or termination of operation, an Electricity Enterprise failing to extend the Electricity Enterprise license pursuant to Article 17 before it expires or being ordered to suspend operation or having its license revoked would be taken over its operations in order to ensure continuous supply of electricity by the electricity industry regulatory agency with coordination with other Electricity Enterprises. If such coordination fails, the agency may use the Electricity Facilities to continue service. Reasonable compensation shall be given for the use of the Electricity Facilities of the Electricity Generating Enterprise.
If the coordination described in the preceding paragraph fails and the Electricity Facilities of the Electricity Generating Enterprise cease to supply electricity, the Electricity Transmission and Distribution Enterprise shall dispatch other sources of electricity to ensure continuous supply. The Electricity Generating Enterprise shall pay the electricity dispatching service fees. The Electricity Transmission and Distribution Enterprise may also charge users the original rate for the electricity.

Electricity Enterprises that intend to undertake mergers and acquisitions, in accordance with the Business Mergers and Acquisitions Act, shall apply to the electricity industry regulatory agency for written approval by submitting a merger plan jointly written by the parties to the merger, which states the scope of business, assets, liabilities, and the capitalization of the company after the merger.
For merger above a certain size, the electricity industry regulatory agency shall work in conjunction with the Fair Trade Commission to review the merger of the Electricity Enterprises, hold public hearings in compliance with the hearing procedure prescribed in the Administrative Procedure Act, and perform administrative investigations and professional assessments within its powers.
The size of merger upon the preceding paragraph applies shall be announced by the electricity industry regulatory agency.

Article 13 and Article 15 apply mutatis mutandis to any change of the source of energy, installed capacity, or site of the major power generation equipment as specified on the Electricity Generating Enterprise license. An Electricity Generating Enterprise shall carry out the procedures specified in those Articles prior to any such change.
For an Electricity Generating Enterprise that is ordered to stop operation due to violation of laws and regulations, the electricity industry regulatory agency may revoke its original license in whole or in part.
Unless specified otherwise in this Act, an Electricity Enterprise shall apply to the electricity industry regulatory agency for a replacement license within 30 days after any change to the information specified on the license has been registered.

Upon the punishment of an Electricity Enterprise by the competent authority for abusing its market power to interfere with the order of the market, the electricity industry regulatory agency may audit its operation details and order it to propose a correction plan within a given time limit.
The electricity industry regulatory agency may revoke the license of an Electricity Enterprise if one of the following events occurs:
1. The Electricity Enterprise abuses its market power to interfere with the order of the market and is convicted.
2. The Electricity Enterprise, having committed the wrongdoings described in the preceding paragraph and been ordered by the electricity industry regulatory agency to propose a correction plan within a given time limit, does not propose one within the time limit or fails to correct the wrongdoings by the assigned date.
3. The Electricity Enterprise is ordered by a government agency to terminate its operation due to legal violations, and the electricity industry regulatory authority is notified of such disciplinary action.

The electricity industry regulatory agency shall establish the application procedures, document requirements, and review criteria governing applications for permits to build or expand the facilities for an Electricity Enterprise, work permits, license issuance, license replacement, information to be specified on the license, extension, changes to power generation equipment, suspension of business, termination of business, and mergers and acquisitions.