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ENFORCEMENT DECREE OF THE AGED EMPLOYMENT PROMOTION ACT

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ENFORCEMENT DECREE OF THE AGED EMPLOYMENT PROMOTION ACT

Amended by Presidential Decree No. 20143, Jun. 29, 2007 Presidential Decree No. 20330, Oct. 17, 2007

Presidential Decree No. 20484, Dec. 28, 2007

Article 1 (Purpose)

The purpose of this Decree is to prescribe matters delegated by the Aged Employment Promotion Act and those necessary for the enforcement thereof.

Article 2 (Definition of the Aged and the semi-Aged) (1) "The aged" specified in Article 2 (1) of the Aged Employment Promotion Act (hereinafter referred to as the "Act") mean persons aged 55 or older.

(2) "The semi-aged" specified in Article 2 (1) 2 of the Act mean persons aged 50 or older and aged less than 55. Article 3 (Standard Employment Rate of the Aged)

The "rate as determined by the Presidential Decree" in subparagraph 4 of Article 2 of the Act refers to the rate of the following subparagraphs:

1. Manufacturing business: 2/100 of the number of workers in the workplace;

2. Transportation, real-estate or rental businesses: 6/100 of the number of workers in the workplace; and

3. Businesses other than those specified in subparagraph 1 and 2: 3/100 of the number of workers in the workplace.

Article 3-2 (Vocational Skills Development Training, etc. for the Aged)

(1) The Minister of Labor shall provide vocational skills development training under the following subparagraphs for employment promotion and vocational skills development and betterment for the aged according to Article 6(1) of the Act: - 2 -

1. Vocational skills development training which is provided according to Article 12 of the Workers Vocational Skills Development Act, targeting the aged who want to be employed at priority occupations that are selected and announced pursuant to Article 15(1) of the Act (hereinafter referred to as the "priority occupations");

2. On-the-job training that is provided at production facilities or in the workplace of a preferentially supported enterprise, after an application is made by an employer of a preferentially supported enterprise according to Article 12 of the Enforcement Decree of the Employment Insurance Act;

(2) In case providing on-the-job training pursuant to subparagraph 2 of paragraph (1), the Minister of Labor may support whole or part of necessary expenses within the limits of budget to an employer of a preferentially supported enterprise, and training allowances to the aged person.

(3) The Minister of Labor shall develop and distribute vocational skills development training courses suitable for the aged with the aim of enhancing the outcome of vocational skills development training for the aged.

(4) In case developing vocational skills development training courses at priority occupations targeting the aged at vocational skills development training facilities stipulated in Article 2 (3) of the Workers Vocational Skills Development Act or providing training under the Act, the Minister of Labor may support whole or part of necessary expenses.

(5) Concerning vocational skills development training for the semi-aged, paragraphs (1) through (4) shall apply mutatis mutandis. In this case, "the aged" shall be regarded as "the semi-aged." Article 3-3 (Preferred Assessment of Vocational Skills Development Training Facilities, etc.)

In case assessing vocational skills development training facilities, etc. - 3 -

pursuant to Article 31 of the Enforcement Decree of the Workers' Vocational Skills Development Act, the Minister of Labor may give preferred treatment, if the training outcome targeting the aged is beyond the criteria determined by the Minister of Labor. Article 3-4 (Designation Criteria, etc. of the Aged Talent Bank) (1) The designation criteria of the Aged Talent Bank pursuant to Article 11 of the Act is specified in the attached Table 1.

(2) A person who intends to be designated as the Aged Talent Bank pursuant to paragraph (1) shall apply for the designation of the Aged Talent Bank to the Minister of Labor. (3) The Minister of Labor shall decide, if he receives an application for designation as the Aged Talent Bank pursuant to paragraph (2), whether to grant a designation after taking into consideration each of the following subparagraphs, and then shall notify the applicant of the results within 30 days of the date of application receipt:

1. Regional distribution of the Aged Talent Bank;

2. Results of job placements for the aged;

3. Size of the relevant budget; and

4. Other necessary matters for the designation of the Aged Talent Bank recognized by the Minister of Labor.

(4) The period for the designation of Aged Talent Banks and other necessary matters for the designation and operation of the Aged Talent Bank shall be determined by the Minister of Labor.

Article 3-5 (Business Scope of a Job Center for the Aged Special Manpower)

The "business determined by the Presidential Decree" in Article 11-2 (3) 3 of the Act mean any of the following businesses:

1. Adaptation training programs for the aged pursuant to Article 6 (2) of the Act;

2. Development and distribution businesses of vocational skills development training programs that give

consideration to the physical and mental conditions, etc. of the aged pursuant to Article 6 (3) of the Act; and

3. Businesses that provide employers with counseling, advisory services, assistance, information, etc. regarding - 4 -

the employment management of the aged pursuant to Article 7 of the Act.

Article 3-6 (Designation Criteria, etc. of a Job Center for the Aged Special Manpower)

(1) The provisions of the attached Table 1 shall apply mutatis mutandis to the designation criteria of a Job Center for the Aged Special Manpower under Article 11-2 (4) of the Act. In this case, the "Aged Talent Bank" shall be regarded as a "Job Center for the Aged Special Manpower", "Article 3-2 (2)" as "Article 3-4 (1)" and "the aged" as the "Aged Special Manpower." (2) The provisions of Article 3-2 (2) through (4) of the Act shall apply mutatis mutandis to the designation procedure of the a Job Center for the Aged Special Manpower pursuant to paragraph (1). In this case, "the aged" shall be regarded as the "Aged Special Manpower" and the "Aged Talent Bank" as the "a Job Center for the Aged Special Manpower."

Article 4 (Employers Subject to the Standard Employment Rate) An employer who shall strive to employ the aged above the standard employment rate pursuant to the provisions of Article 12 of the Act shall an employer of a workplace with 300 full-time workers or more.

Article 4-2 (Payment Standards, etc. of Employment Subsidy) (1) Payment standards, etc. of an employment subsidy pursuant to Article 14 (2) 1 of the Act shall be as prescribed in Articles 25 and 26 of the Enforcement Decree of the Employment Insurance Act.

(2) Payment standards, etc. of employment subsidies pursuant to Article 14 (2) 2 of the Act shall be as prescribed in Article 28 of the Enforcement Decree of the Employment Insurance Act. (3) Payment standards, etc. of employment subsidies pursuant to Article 14 (2) 3 of the Act shall be as prescribed in Article 33 of the Enforcement Decree of the Employment Insurance Act.

Article 5 (Employment in Priority Occupations)

(1) Among State, local governments, and agencies designated - 5 -

as public agencies pursuant to Article 4 of the Operation of Public Agencies Act, the head of an agency meeting the requirements as a government-invested institution pursuant to Article 2 of the Framework Act on the Management of Government-Invested Institutions, which was rescinded under Law No. 8258 Article 2 of the Addenda of the Operation of Public Agencies Act, a government-contributed institution and a government-funded and government-entrusted institution (limited to those designated by the Minister of Labor) (hereinafter referred to as "public agencies, etc.") shall employ the aged and the semi-aged preferentially pursuant to the provisions of Article 16 (1) of the Act when any reason falling under the following subparagraphs arises in a priority occupation of the agency concerned:

1. When new workforce needs to be employed according to the creation or expansion of priority occupations; and

2. When a vacancy resulting from retirement, job separation, etc. in a priority occupation needs to be filled. (2) In case a public agency, etc. employs a worker in a priority occupation of the agency concerned, the provisions of paragraph (1) may not apply, if the public agency concerned is recognized as having separate qualifications prescribed by a relevant statute or a special circumstance and thereby given an approval from the Minister of Labor.

Article 6 (Submission of Employment Status on Priority Occupations) A public agency, etc. shall submit its employment status of priority occupations every year to the Minister of Labor as prescribed by the Ordinance of the Ministry of Labor. Article 7 (Employers Subject to Submission of the Operation Status of Mandatory Retirement Age System)

"An employer who employs more than a certain number of workers as determined by the Presidential Decree" in Article 20 (1) of the Act mean an employer who employs 300 or more workers.

Article 8 (Delegation of Authority)

The Minister of Labor shall delegate the authorities specified in each of the following subparagraphs to the head of a - 6 -

regional labor office:

1. Designation of the Aged Talent Bank and a Job Center for the Aged Special Manpower pursuant to Article 11 and Article 11-2 of the Act;

2. Cancellation of designation of the Aged Talent Bank and a Job Center for the Aged Special Manpower pursuant to Article 11-3 of the Act;

3. Receipt of submission of employment status of the aged, request for submission of compliance plan on standard employment rate of the aged, and recommendations for change and implementation thereof pursuant to Article 13 of the Act;

4. Receipt of submission of the operation status of mandatory retirement age system, request for submission of compliance plan on prolongation of mandatory retirement age, and recommendations for change thereof pursuant to Article 20 of the Act;

5. Report and inspection pursuant to the provisions of Article 23 of the Act; and

6. Imposition and collection of fines for negligence pursuant to the provisions of Article 24 of the Act.

Article 9 (Imposition of Fine for Negligence)

(1) When imposing a fine for negligence pursuant to the provisions of Article 24 (2) of the Act, the Minister of Labor shall investigate and confirm the violation concerned, and specify in writing the violation, amount of the fine for negligence, etc. and then notify the person subject to the fine for negligence of the payment due.

(2) When intending to impose a fine for negligence pursuant to the provisions of paragraph (1), the Minister of Labor shall set a period of ten days or longer and provide the person subject to the fine for negligence with an opportunity to make his statement, either orally or in writing (including an electronic document). In this case, if no statement is made within the set period, it shall be considered that he has no statement to make. (3) The imposition criteria of a fine for negligence pursuant to the provisions of paragraph (1) is as specified in the attached Table 2. (4) The procedure for collecting a fine for negligence shall - 7 -

be prescribed by the Ordinance of the Ministry of Labor. Addenda This Decree shall enter into force on June 29, 2007. Addenda Article 1 (Enforcement Date)

This Decree shall enter into force on the date of its promulgation : Provided that the amended provisions of Article 2 (2) and Article 85 (2) shall enter into force on October 28, 2007, the amended provisions of Article 19 (1), Article 20 (3), Article 21 (1) and (2), Article 23 (1), Article 25 and Article 32 (2) on January 1, 2008 and the amended provisions of Article 82 (2) 2 on February 4, 2008.

Articles 2 through 9 Omitted.

Articles 10 (Revision of Other Laws)

(1) Parts of the Enforcement Decree of the Aged Employment Promotion Act shall be revised as follows :

"Article 22 and 22-2 in the Enforcement Decree of the Aged Employment Promotion Act" in Article 4-2(1) shall be changed to "Article 25 and 26 in the Enforcement Decree of the Aged Employment Promotion Act", and "Article 22-4 in the Enforcement Decree of the Aged Employment Promotion Act" in paragraph (2) of the same Article shall be changed to "Article 28 in the Enforcement Decree of the Aged Employment Promotion Act", and "Article 23-4 in the Enforcement Decree of the Aged Employment Promotion Act" in paragraph (3) of the same Article shall be changed to "Article 33 in the Enforcement Decree of the Aged Employment Promotion Act."

(2) through (5) Omitted.

Article 11 Omitted

Addenda This Decree shall enter into force on January 1, 2008.


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