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Laws of the Republic of Korea |
ENFORCEMENT DECREE OF THE ACT ON THE COLLECTION, ETC., OF PREMIUMS FOR EMPLOYMENT INSURANCE AND INDUSTRIAL ACCIDENT COMPENSATION INSURANCE
Presidential Decree No. 18574, Oct. 29, 2004
Presidential Decree No. 18574, Oct. 29, 2004
Presidential Decree No. 19247, Dec. 30, 2005
Presidential Decree No. 19422, Mar. 29, 2006
Presidential Decree No. 19973, Mar. 27, 2007
Presidential Decree No. 20222, Aug. 17, 2007
Presidential Decree No. 20330, Oct. 17, 2007
Presidential Decree No. 20331, Oct. 23, 2007
Presidential Decree No. 20874, Jun. 25, 2008
CHAPTER I
General Provisions
Article 1 (Purpose)
The purpose of this Decree is to stipulate matters delegated
by the Act on the Collection, etc., of Premiums for Employment
Insurance
and Industrial Accident Compensation Insurance and
particulars necessary for the enforcement thereof.
Article 2 (Definition)
(1) Terms used in this Decree are defined as follows
:
1. "Total construction work" refers to civil engineering
work, building work, and other construction work for
structures, which
are carried out to complete a final
object, and the work of remodeling, repairing, altering
and dismantling a building structure
or a whole range
of work carried out in relation to preparation, finish
work, etc., needed to carry out each work;
2. "Total construction amount" refers to the amount of
contract costs (including the market prices of materials
in case a person
who issues an order supplies materials)
for carrying out total construction work : Provided that
in the case of construction work
carried out by a person
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who is not a constructor prescribed in Article 2 (5) of
the Framework Act on the Construction Industry and
not subject to restrictions
on persons who carry out
construction work pursuant to Article 41 of the same
Act, an amount calculated according to the methods
determined and announced by the Minister of Labor
shall be the total construction amount; and
3. "The number of workers" is as follows : Provided that
the cases prescribed in Articles 3 (3), 15 and 29 shall be
subject to the
provisions thereof:
A. In case a business begins before the insurance year
concerned, the number produced by dividing the sum
of the numbers of workers
used as of the last day of
each month of the previous year by the number of
months of business operation : Provided that if it is
difficult to confirm the number of workers in a
construction business, it refers to the number
produced according to the following formula. In this
case, "construction amount actually recorded" refers to
the amount produced
by subtracting the amount of
construction costs legally contracted out pursuant to the
Framework Act on the Construction Industry and
other relevant laws from the total construction amount
actually recorded (referring to the total amount for
construction work completed
in the insurance year
concerned), and "average monthly wages in the
construction industry" refer to the average wages
calculated and announced by the Minister of Labor on
the basis of wages in the
construction industry in the
wage and working hours survey report prepared by
the Minister of Labor among the designated statistics
under Article 3 of the Statistics Act.
construction amount actually recorded for the previous
year × labor cost ratio for the previous year
average monthly wages in the construction industry for the previous year ×
number of months of business operation
B. In case a business begins during the insurance year
concerned : the number of workers used as of the
date of the establishment of the insurance relationship.
(2) If the same construction work carried out to complete a
final object
is divided into two parts or more and they are
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contracted out under the name of entrustment or otherwise
(including cases where the person issuing the order directly
carries
out part of the construction work), the total construction
amount under paragraph (1) 2 shall be calculated by adding all
contract
amounts : Provided that this shall not apply, if each
contract work is carried out separately and independently in
terms of time
and place.
Article 3 (Application of Standard Wage)
(1) "Cases where there are reasons prescribed by the
Presidential Decree" in Article 3 (1) of the Act on the
Collection, etc.,
of Premiums for Employment Insurance and
Industrial Accident Compensation Insurance (hereinafter referred
to as "the Act") refer
to those falling under any of the
following subparagraphs:
1. In case wage-related data are nonexistent or unclear; and
2. In case it is difficult to locate the business due to the
relocation, etc., of the business or workplace (hereinafter
referred
to as "business")
(2) The standard wage under Article 3 (2) of the Act shall
be applied according to the following classification:
1. Monthly standard wages shall be applied to regular
workers paid the fixed amount of wages on a monthly
basis;
2. Hourly standard wages shall be applied to part-time
workers, workers (hereinafter referred to as "hourly wage
workers" in this
Article) who are paid wages according to
the number of their working hours, and workers
(hereinafter referred to as "daily wage workers" in this
Article) who are paid daily wages according to the
number of their working
days, regarding the prescribed
number of working hours per week as the actual number
of working hours : Provided that if it is
not clear
whether a worker is a hourly wage worker or daily wage
worker or if the prescribed number of working hours
per week
cannot be confirmed, monthly standard wages
shall be applied.
(3) The number of workers under Article 3 (1) of the Act
shall be the number produced by dividing the sum of the
numbers of workers
who have acquired qualifications for the
insured pursuant to Article 15 of the Employment Insurance Act
as of the last day of each
month of the previous year by the
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number of months of business operation in the previous year
(the number of workers who have acquired qualifications for
the insured
pursuant to Article 13 of the Employment Insurance
Act as of the date of the establishment of an insurance
relationship, in case
a business begins and its insurance
relationship is established during the insurance year concerned).
(1) An employer may appoint an agent and have the agent
perform what the employer shall perform under the Act and
this Decree.
(2) When an employer appoints or dismisses an agent,
he/she shall report this to the Korea Workers Compensation
and Welfare Service
(hereinafter referred to as "the
Corporation") prescribed in Article 10 of the Industrial Accident
Compensation Insurance Act.
CHAPTER II
Establishm ent and Term ination of Insurance Relationship
Article 6 (Conditions for Blanket Application for Businesses)
(1) "The
conditions prescribed by the President Decree" in
Article 8 (1) 3 of the Act refer to business done by a person
falling under any
of the following subparagraphs:
1. A constructor prescribed in subparagraph 5 of Article 2
of the Framework Act on the Construction Industry;
2. A housing constructor prescribed in Article 9 of the
Housing Act;
3. A constructor prescribed in subparagraph 3 of Article 2
of the Electricity Construction Business Act;
4. An information and communications-related constructor
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prescribed in subparagraph 4 of Article 2 of the
Information and Communications Work Business Act;
5. A fire-fighting system constructor prescribed in Article 2
(1) 2 of the Fire-fighting Service Act; and
6. A businessman engaging in repairing cultural properties
prescribed in Article 27 of the Protection of Cultural
Properties Act.
(2) An employer who intends to get approval for blanket
application pursuant to Article 8 (2) of the Act shall apply for
this to
the Corporation.
(3) An employer who intends to get approval for the
cancelation of blanket application pursuant to Article 8 (3) of
the Act shall
apply for this to the Corporation no later than
seven days before the beginning of the following insurance
year.
Article 7 (Blanket Application for Contract Business)
(1) "The business prescribed by the Presidential Decree, such
as construction
business" in Article 9 of the Act refers to
construction business.
(2) The approval given to an employer by the Corporation
pursuant to the proviso of Article 9 of the Act shall be limited
to cases
where a subcontractor is the employer of a business
prescribed in Article 6 (1).
(3) If a subcontractor intends to get approval from the
Corporation pursuant to the proviso of Article 9 of the Act, the
original
contractor shall sign a written contract with the subcontractor
over the takeover of the responsibility for paying premiums and
apply for this to the Corporation within 14 days from the
starting date of the subcontracted work.
Article 8 (Notification of Establishment and Termination of Insurance
Relationship)
The Corporation shall, if an insurance relationship is
established or terminated, notify the employer concerned of this
without
delay.
Article 9 (Report of Changes in Insurance Relationship)
Pursuant to Article 12 of the Act, an employer shall, if any
change is
made to the following matters concerning his/her
business, report this to the Corporation within 14 days of the
date on which the
change is made: Provided that in the case of
subparagraph 6, the report shall be made within 14 days from
the first day of the
following insurance year:
1. The name and resident registration number of the
employer(the representative, in the case of a corporation);
2. The name and location of the business;
3. The type of the business;
4. Business registration number (including corporation registration
number in the case of a corporation);
5. Business period (limited to businesses with a fixed term,
such as construction work or logging); and
6. The number of workers (limited to cases where any
change is made to entitlement to preferentially supported
enterprises under
Article 12 of the Enforcement Decree of
the Employment Insurance Act).
CHAPTER III
Insurance Premiums
Article 10 (Vicarious Payment of Premiums by Persons Ordering
Construction Work)
(1) In case the State, local governments, or public agencies
under the Act on the Operation of Public Agencies, or other
institutions
to which the State or a local government contributes
order construction work, they may pay premiums on behalf of
the original contractor
after obtaining approval from the
Corporation, if premiums are clearly stated in the construction
amount and the original contractor
agrees.
(2) A person who vicariously pays premiums pursuant to
paragraph (1) shall, if any change is made to the following
matters, report
this to the Corporation without delay :
1. The name and location of the person who vicariously
pays premiums and the name of the representative; and
2. The amount, period and contents of the construction
work.
(3) If it becomes unnecessary to vicariously pay premiums,
or if it is deemed that there are other proper reasons, the
Corporation
may revoke its approval for the vicarious payment
of premiums under the conditions as prescribed by the
Ordinance of the Ministry
of Labor.
(4) The Corporation shall, if revoking its approval for the
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vicarious payment of premiums pursuant to paragraph (3),
notify the person who vicariously pays premiums and the
original contractor
of this without delay.
Article 11 (Determination of Labor Cost Ratio, etc.)
(1) The methods of determining a labor cost ratio (hereinafter
referred to
as "labor cost ratio") under Article 13 (6) of the Act
are described in the following subparagraphs :
1. The labor cost ratio for construction work shall be
determined and announced by the Minister of Labor,
separately for general
construction work and for
subcontracted construction work, in consideration of the
proportion of the sum of all wages paid to workers by
employers who were
engaged in construction business in
the three years to June 30 of the year concerned
(hereinafter referred to as "base insurance year") in the
sum of all construction amounts of the same employers ;
and
2. The labor cost ratio for logging shall be determined and
announced by the Minister of Labor in consideration of
the proportion
of the sum of all wages paid to workers
by employers who were engaged in logging business in
the three years to June 30 of the
base insurance year
concerned in the sum of all logging costs of the same
employers and shall be expressed as the amount of
wages
per unit volume of lumber.
(2) The methods of determining the amount of estimated
total wages or total wages based on the labor cost ratio for
construction
work are described in the following subparagraphs
: 1. The amount of estimated total wages shall be produced
by multiplying the total construction amount by the labor
cost ratio: Provided
that in case the amount of estimated
total wages produced based on the labor cost ratio
exceeds 90/100 of the contract amount,
90/100 of the
contract amount shall be the amount of estimated total
wages; and
2. The amount of total wages shall be produced by
multiplying the sum (excluding the amount for
subcontracted construction work by subcontractors who
get approval from the Corporation pursuant to the
proviso of Article 9 of
the Act) of the total amount of
wages paid to workers directly employed to carry out the
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construction work concerned and the total amount for
subcontracted construction work by the labor cost ratio for
subcontracted
construction work.
(3) In the case of logging businesses, the amount of
estimated total wages or total wages shall be produced by
multiplying the
volume of lumber by the labor cost ratio.
Article 12 (Employment Insurance Premium Rate)
(1) The employment insurance premium rates under Article
14 (1) of the Act are as follows:
1. The premium rate for employment security and vocational
skills development projects shall be determined as follow:
A. A business
which employs less than 150 workers :
25/10,000;
B. A business which employs 150 workers or more and
falling within the scope of preferentially supported
enterprises prescribed
in Article 12 of the Enforcement
Decree of the Employment Insurance Act : 45/10,000;
C. A business which employs 150 or more but
less than
1,000 workers and not falling under item B :
65/10,000; and
D. A business which employs 1,000 workers or more and
not falling under item B and a business directly
conducted by the State and a local government :
85/10,000
2. Deleted. 3. The premium rate for unemployment benefits : 9/1,000
(2) In applying the provisions of paragraph (1) 1, the
number of workers
shall be the sum of the numbers of workers
in all businesses at home conducted by the employer concerned
: Provided that in the
case of a business which supervises public
housing under subparagraph 2 of Article 2 of the Housing Act,
the number of workers
shall be calculated by type of business.
vocational skills projects applicable to the employer who is the
subcontractor concerned shall be applied.
(4) Notwithstanding the provisions of paragraphs (1) 1 and
(2), if a business is transferred or merged during the insurance
year,
the premium rate for employment security and vocational
skills development projects applicable before the transfer and
merge shall
be applied to the transferred or merged business
during the insurance year concerned.
Article 13 (Public Announcement of Industrial Accident Compensation
Insurance Premium Rate)
When the Minister of Labor has determined premium rates
for industrial accident compensation insurance (hereinafter
referred as
"industrial accident insurance") pursuant to Article 14
(3) of the Act, he/she shall announce it, along with the kinds
and contents
of the businesses to which the premium rates are
applied, through an official gazette and general daily
newspapers, etc., with
a nationwide circulation under Article 12
(1) of the Act on the Freedom of Newspapers and Guarantee of
Their Functions.
Article 14 (Application of Industrial Accident Insurance Premium
Rate)
(1) If two or more businesses whose types are different
under Article 14 (3) of the Act are carried out in the same
workplace (limited
to those having the same employer), the
industrial accident insurance premium rate applicable to the
principal business (hereinafter
in this Act referred to as "principal
business") which accounts for a larger share than others in
terms of the number of workers,
total wages, etc., shall be
applied to all the businesses in the workplace concerned.
(2) The principal business under paragraph
(1) shall be
determined in the following order:
1. Business with more workers than others ;
2. Business with more total wages than others, in case the
number of workers is equal or it is impossible to know
the number of
workers; and
3. Business manufacturing goods or providing services with
larger sales volume than others, in case the principal
business cannot
be determined pursuant to subparagraphs
1 and 2.
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Article 15 (Business Subject to Special Case of Industrial Accident
Insurance Premium Rate)
(1) "The businesses prescribed by the Presidential Decree" in
Article 15 (2) of the Act refer to businesses described in the
following
subparagraphs : 1. Businesses in the construction industry which are subject
to blanket application under Article 8 (1) and (2) of the
Act and whose
total construction amount actually
recorded for the insurance year two years prior to the
current insurance year is six billion won or more per
year; and
2. Businesses, other than construction and logging businesses,
which have thirty workers or more
(2) In applying the special case (hereinafter referred to as
"merits rate") of the determination of industrial accident
insurance
premium rates under Article 15 (2) of the Act, the
number of workers under paragraph (1) 2 shall be calculated
according to the
provisions of Article 2 (1) 3 A, and the
calculation period shall be from July 1 of the year before the
base insurance year until
June 30 of the base insurance
year.
(3) If the type of a business subject to the industrial
accident insurance premium rate under paragraph (1) has
changed during
the three years to June 30 of the base insurance
year, the merits rate shall not be applied to the business
concerned : Provided
that this shall not apply in case the type
of business has changed, but major working conditions for the
business concerned, such
as machine facilities, work process, etc.
are deemed not to have been changed.
"The ratio prescribed by the Presidential Decree" in Article
15 (2) of the Act refers to more than 85/100 or 75/100 or less.
Article
17 (Calculation of Ratio of Insurance Expenditure to Revenue
for Application of Merits Rate)
(1) In calculating the ratio of industrial accident insurance
benefits to industrial accident insurance premiums (hereinafter
referred
to as "industrial accident insurance premiums")
pursuant to Article 15 (2), the amount of industrial accident
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insurance premiums shall be the sum of the following amounts
as of June 30 of the base insurance year:
1. An amount equivalent to 6/12 of the estimated premium
amount for the base insurance year;
2. The sum of the final premium amounts for each of the
two insurance years preceding the base insurance year;
and
3. An amount calculated according to the following formula
(Final premium amount for the insurance year three years
before the base
insurance year) × 6 ÷ (total number of
months during which insurance relations continue in the
insurance year three years before
the base insurance year)
(2) In calculating the ratio of industrial accident insurance
benefits to industrial accident insurance
premiums pursuant to
Article 15 (2) of the Act, the amount of the industrial accident
insurance benefits shall be the sum of all
amounts of industrial
accident insurance benefits determined to be paid (referring to
the causal act for disbursement; hereinafter
the same shall
apply) from July 1 of the insurance year three years prior to
the base insurance year to June 30 of the base insurance
year.
In this case, if the industrial accident insurance benefits
determined to be paid are disability or survivors' compensation
annuities, it shall be deemed that the lump-sum disability or
survivors' compensation are determined to be paid when the
payment
of such annuities is first determined.
(3) The amount of insurance benefits determined to be paid
due to an accident caused by a third party's act pursuant to
Article
87 (1) of the Industrial Accident Compensation Insurance
Act or inevitable reasons such as natural disasters, blackouts, etc.,
shall be excluded from the sum of insurance benefits under
paragraph (2): Provided that the amount of insurance benefits
corresponding
to the proportion that is not recognized as the
third party's faults by the final ruling of the court, etc. shall be
added.
(4) With regard to the amount of insurance benefits under
the proviso of paragraph (3), the date on which the court
delivers its
final ruling shall be considered the date on which
the insurance benefits concerned are determined to be paid.
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Article 18 (Increase or Decrease Rates of Merits Rates)
(1) An increase or decrease in industrial accident insurance
premium rates
under Article 15 (2) of the Act shall be subject
to the rates shown in Table 1.
(2) When the Corporation has decided to raise or lower
industrial accident insurance premium rates pursuant to Article
15 (2) of
the Act, it shall notify the employer concerned of the
increased or decreased premium rates without delay.
Article 19 (Withholding
of Employment Insurance Premiums)
If an employer intends to withhold at source employment
insurance premiums (hereinafter referred
to as "employment
insurance premiums") pursuant to Article 16 (1) of the Act,
he/she shall, whenever paying wages to an insured
worker,
deduct the amount of employment insurance premiums to be
borne by the insured worker, which are calculated on the basis
of the amount of wages added by wages that have been paid
irregularly since the immediately preceding regular payday,
from the
amount to be paid.
Article 20 (Report and Payment of Estimated Premiums)
If an employer intends to pay estimated premiums under
Article 17 (1) of
the Act, he/she shall submit a report on
estimated premiums to the Corporation and pay estimated
premiums in accordance with the
statement of payment.
Article 21 (Application of Total Wages of Previous Year)
"The cases prescribed by the Presidential Decree"
in Article
17 (1) of the Act refer to those where the estimated total wages
for the insurance year concerned is 70/100 or more
but 130/100
or less of the total wages of the previous year.
Article 22 (Payment in Installments of Estimated Premiums)
(1) The payment of estimated premiums under Article 17 (3)
of the Act
shall be made in four installments per year and the
installment payment period is divided as follows :
1. First period : from January 1 to March 31
2. Second period : from April 1 to June 30
3. Third period : from July 1 to September 30
4. Fourth period : from October 1 to December 31
(2) Notwithstanding the provisions of paragraph (1),
businesses described in the
following subparagraphs shall not
pay estimated premiums in installments:
1. Businesses whose insurance relationship is established
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after July 1 of the insurance year concerned; and
2. Businesses with a fixed period, such as construction work,
etc. and the period is less than six months
(3) If the insurance relationship is established during the
insurance year, the first installment payment period of the
estimated
premiums shall be the period described in the following
subparagraphs:
1. The period from the date of the establishment of an
insurance relationship to June 30, in case the insurance
relationship is
established between January 2 and March
31; and
2. The period from the date of the establishment of an
insurance relationship to September 30, in case the
insurance relationship
is established between April 1 and
June 30.
(4) The amount of estimated premiums to be paid for each
installment payment period is as follows :
1. The amount of estimated premiums to be paid for each
installment payment period pursuant to paragraph (1)
shall be the amount
produced by dividing the total
estimated premiums for the year concerned by four; and
2. The amount of estimated premiums to be paid for each
installment payment period pursuant to paragraph (3)
shall be the amount
produced by multiplying the total
estimated premiums for the year concerned by the ratio
of the sum of the number of days of each
installment
payment period to the total number of days between the
date of the establishment of the insurance relationship
and
the last day of the year.
(5) An employer who pays estimated premiums in installments
shall pay the amount of estimated premiums required to be
paid for
the first installment payment period until the payment
deadline under Article 17 (1) of the Act and then the amount
of estimated
premiums for each succeeding installment payment
period no later than the fifteenth day of the middle month of
each quarter.
(6) An employer who intends to make installment payments
pursuant to paragraphs (1) through (5) shall apply for paying
estimated
premiums in installments to the Corporation.
Article 23 (Request for Revision of Estimated Premiums)
(1) An employer who intends
to make a request for the
revision of estimated premiums pursuant to Article 17 (5) of the
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Act shall submit a revision request form containing the
following matters:
1. The requester's name, address or place of residence;
2. The amount of estimated premiums before revision;
3. The amount of estimated premium after revision;
4. The reasons to make a request for revision; and
5. Other necessary matters.
(2) The Corporation shall notify the requester of the results
of the request for revision within two
months from the date on
which it receives the request for revision under paragraph (1).
Article 24 (Adjustment of Premiums Following
Changes in Premium
Rates)
(1) If the Corporation intends to additionally collect or
adjust downwards premiums pursuant to Article 18 (1) of the
Act, it shall
notify the employer of this within 20 days from
the date on which the decision to increase or decrease premium
rates is made.
(2) The employer notified of the additional payment of
estimated premiums pursuant to paragraph (1) shall make that
payment within
30 days from the date on which he/she
receives the notification : Provided that the Corporation may
extend a payment deadline by
up to 30 days once in case it is
deemed that there are justifiable reasons.
Article 25 (Standard for Downward Adjustment of Estimated Premiums)
"The standard amount prescribed by the Presidential Decree"
in Article 18 (2) of the Act refers to 30/100.
Article 26 (Report, Payment, etc. of Final Premiums)
The provisions of Articles 20 and 23 shall apply mutatis
mutandis to the report
and payment of final premiums under
Article 19 (1) of the Act and the request for the revision of
final premiums under Article
19 (7) of the Act.
Article 27 (Special Cases of Premium Collection)
"The reasons prescribed by the Presidential Decree" in
Article 20 of the Act refer to cases where the Corporation asks
an employer
twice or more to submit basic materials needed for
premium calculation, such as a statement of accounts, but
he/she fails to do
so or where the Corporation asks an
employer to complement submitted materials because of their
considerable unreliability but
he/she fails to complement.
Article 28 (Exclusion, etc. from Businesses Subject to Special Cases
of Collection)
(1) "The businesses prescribed by the Presidential Decree" in
Article 21 (1) of the Act refer to businesses described in the
following
subparagraphs: 1. Construction business, including construction work, and
logging business;
2. Businesses which report the establishment of their
insurance relationship during the insurance year
concerned but make that report after the reporting
deadline under Article 11 (1) of the Act;
3. Agricultural, forestry, fishery and real estate management
businesses;
4. Business conducted by the State and a local government;
5. Businesses which have no worker who has acquired
qualifications for the insured pursuant to Article 15 of the
Employment Insurance
Act during the insurance year
immediately prior to the year concerned; and
6. Other businesses whose starting and ending dates are
fixed in advance.
(2) In case whether to apply special cases of collection to a
business has been decided pursuant to Article 21 (1) and (2) of
the
Act, such decision shall not be changed until the end of the
insurance year concerned.
qualifications for the insured pursuant to Article 15 of the
Employment Insurance Act as of the last day of the previous
year (the
number of workers as of the date of the establishment
of the insurance relationship, in case the business begins and
the insurance
relationship is established during the insurance
year concerned).
(2) The amount of special-case premiums under Article 21
(3) of the Act shall be calculated based on the number of
workers who
have acquired qualifications for the insured
pursuant to Article 15 of the Employment Insurance Act.
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(3) The quarter prescribed in Article 21 (3) of the Act is as
follows :
1. First quarter : from January 1 to March 31
2. Second quarter : from April 1 to June 30
3. Third quarter : from July 1 to September 30
4. Fourth quarter : from October 1 to December 31
(4) The Corporation shall impose and notify special-case
premiums to the employer
concerned no later than 10 days
before the payment deadline under Article 21 (5) of the Act
pursuant to Article 21 (4) of the Act.
1. In case the number of workers for the quarter
immediately preceding the quarter subject to the
calculation of special-case premiums has changed; and
2. In case matters related to premium collection, such as
premium rates or the date of the establishment of an
insurance relationship,
are wrongly applied.
(6) If shortfalls are collected pursuant to Article 21 (7) of
the Act, the payment shall be made until the deadline for the
payment
of special-case premiums for the quarter in which the
special-case premiums are recalculated.
(1) "Special reasons prescribed by the Presidential Decree" in
the former part of Article 22-2 (1) of the Act refer to fires,
explosions,
wars and other equivalent disasters.
(2) The reduction rate prescribed in the latter part of Article
22-2 (1) of the Act shall be 30/100 of insurance premiums and
other
charges.
Article 30-3 (Reduced Amount of Insurance Premiums In Case of
Report Via Information and Communication Network)
The Corporation
may, if an employer reports estimated
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premiums through an information and communication network
for employment and industrial accident pursuant to Article 22-2
(2) of
the Act (excluding cases where an employer makes such a
report through an insurance work service agency referred to in
Article
45 (1)), reduce estimated employment insurance premiums
and estimated industrial accident compensation insurance
premiums, each
by five thousand won.
Article 30-4 (Reduced Amount of Insurance Premiums In Case of
Payment By Means of Electronic Fund Transfer)
The Corporation may, if an employer pays estimated
premiums or special-case premiums by means of an electronic
fund transfer pursuant
to Article 22-2 (3) of the Act, reduce
estimated employment insurance premiums and estimated
industrial accident compensation insurance
premiums each by
250 won or special-case employment insurance premiums and
special-case industrial accident compensation insurance
premiums
each by 250 won.
Article 31 (Appropriation and Return of Premiums, etc. Paid in
Excess and Their Interests)
(1) Deleted.
(3) If the Corporation intends to appropriate premiums, etc.,
paid in mistake or insurance benefits for premiums and other
charges
preferentially or to return the balance pursuant to
Article 23 (1) through (3) of the Act, it shall notify the
employer of this.
(4) "The interest rate prescribed by the Presidential Decree"
in Article 23 (4) of the Act refers to the rate of interest on a
refund of national tax under Article 30 (2) of the Enforcement
Decree of the Framework Act on National Taxes.
- 18 -
Article 32 (Exception to Collection of Additional Charges)
"The cases prescribed by the Presidential Decree" in the
proviso of
Article 24 of the Act refer to cases described in the
following subparagraphs :
1. In case where the amount of additional charges is less
than three thousand won; and
2. In case where final premiums are not reported because of
natural disasters, armed conflicts and other inevitable
reasons recognized
by the Minister of Labor.
Article 33 (Collection, etc of Arrears)
(1) If an employer fails to pay premiums and other charges
until the payment deadline pursuant to Article 25 (1) of the
Act, the
Corporation shall collect the amount of arrears
equivalent to 12/1000 of the premiums and other charges in
arrears and for every
one month passing after the payment
deadline, additionally collect the amount of arrears equivalent to
12/1000 of the premiums
and other charges in arrears.
(2) If the period during which arrears are imposed under
paragraph (1) exceeds 36 months, 36 months
shall be the period
of the imposition of arrears.
(3) "The cases prescribed by the Presidential Decree" in the
proviso of Article 25 (1) of the Act refer to cases described in
the
following subparagraphs :
1. In case where the amount of arrears is less than three
thousand won;
2. In case where arrears, additional charges and insurance
benefits to be collected pursuant to Article 26 of the Act
are in arrears;
3. In case where collection is postponed under Article 140 of
the Debtor Rehabilitation and Bankruptcy Act; and
4. In case where premiums and other charges are in arrears
because of natural disasters, armed conflicts or other
inevitable reasons
recognized by the Minister of Labor.
Article 34 (Standards for Collection of Industrial Accident Compensation
Insurance Benefits)
(1) The collection of insurance benefits under Article 26 (1)
1 of the Act shall be made to provide medical care benefits,
wage
replacement benefits, disability benefits, nursing benefits,
survivors' benefits, and injury-disease compensation annuities for
accidents taking place during the period from the day following
the end of the deadline until which joining insurance must be
- 19 -
reported to the day on which joining insurance is actually
reported, and the amount to be collected shall be 50/100 of the
insurance
benefits determined to be paid for accidents taking
place during a period in which the employer neglects to make
the report on
joining insurance : Provided that this applies only
to insurance benefits whose reasons for a request for payment
occur between
the starting date of medical care (the day of the
accident, in case the victim dies when the accident happens)
and the last day
of the month containing the date marking one
year since the start of the medical care.
(2) The collection of insurance benefits under Article 26 (1)
2 of the Act shall be made to provide medical care benefits, wage
replacement benefits, disability benefits, nursing benefits,
survivors' benefits, and injury-disease compensation annuities for
accidents taking place during the period from the day following
the end of the deadline (payment deadline for each quarter in
the case of payment in installments under Article 17 (3) of the
Act) for payment of estimated premiums under Article 17 (1) of
the Act to the day preceding the date on which the premiums
concerned are paid, and the amount to be collected shall be
10/100
of the insurance benefits whose reasons for a request for
payment occur between the date of accident to the day
preceding the date
on which the premiums are paid : Provided
that this shall not apply in case the ratio (the ratio of
premiums unpaid to premiums
which must be paid within the
quarter in which the accident happens in the case of payment
in installments) of premiums unpaid
to premiums which must
be paid is less than 50/100.
(3) In collecting insurance benefits pursuant to paragraph (1)
or (2), if the insurance benefits determined to be paid are
disability
or survivors' compensation annuities, it shall be
considered that lump-sum disability or survivors' compensation
are determined
to be paid on the day when reasons for a
request for the payment occurs for the first time.
(4) If reasons falling under Article
26 (1) 1 and 2 of the Act
concur with each other, only the insurance benefits whose
collection ratio is the highest shall be collected
during the
period in which they concur.
Article 35 (Collection of Insurance Benefits from Those Who Join
Industrial Accident Compensation Insurance)
When the Corporation gives a notification of payment of all
or part of insurance benefits pursuant to Article 26 (2) of the
- 20
-
Act, the payment deadline shall be 30 days or more from the
date on which the notification is received.
Article 36 Deleted.
(1) If the Corporation has the Korea Asset Management
Corporation (hereinafter referred to as "Korea Asset Management
Corporation")
established under the Act on the Efficient Disposal
of Non-performing Assets, etc. of Financial Institutions and the
Establishment
of Korea Asset Management Corporation
vicariously conduct a public sale of seized properties pursuant
to Article 28 (2) of the
Act, it shall send a request for public
sales by proxy containing the following matters to the Korea
Asset Management Corporation:
1. The delinquent's name, address or place of residence ;
2. The type, quantity, quality and location of the properties
to be sold publicly;
3. The particulars and payment deadline of premiums and
other charges related to the seizure; and
4. Other matters needed to publicly sell seized properties.
(2) If the Corporation entrusts public sales pursuant to
paragraph (1),
it shall give a notification of this to the delinquent,
the security owner, the person who has a right of lease, pledge,
or mortgage
or other rights to the properties and the person
who takes custody of the seized properties.
Article 38 (Transfer of Seized Properties)
(1) In entrusting public sales pursuant to Article 37 (1), the
Corporation may transfer the properties which it possesses or
has
a third party keep to the Korea Asset Management
Corporation: Provided that in substitution for transferring
properties kept by
a third party, a certificate of custody of the
properties concerned may be transferred.
(2) If the Korea Asset Management Corporation takes over
seized properties pursuant to paragraph (1), it shall prepare a
statement
of transfer or receipt.
Article 39 (Request for Revocation of Public Sale by Proxy)
(1) If there is any property remaining unsold within two
years from
the date of the entrustment of public sales, the
Korea Asset Management Corporation may request the Corporation
to revoke the entrustment
of the public sales of the property
concerned.
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(2) When the Corporation is requested to revoke the entrustment
under paragraph (1), it shall accept that request except in
special
circumstances.
Article 40 (Details of Public Sale by Proxy)
Necessary matters on public sales vicariously conducted by
the Korea Asset Management Corporation pursuant to Article 28
(2) of
the Act, which are not prescribed in this Decree, shall be
determined by the Corporation in consultation with the Korea
Asset Management
Corporation.
Article 40-2 (Value of Inherited Properties)
(1) "Properties gained as a result of inheritance" in Article
28-3 (1) of the Act and the former part of paragraph (2) of the
same
Article of the Act refer to the amount of value calculated
by deducting total liabilities and inheritance taxes which are
imposed
or should be paid due to inheritance, from the total
assets obtained as a result of inheritance.
(2) The value of total liabilities and total assets under
paragraph (1) shall be appraised in accordance with the
appraisal methods
prescribed in Articles 60 through 66 of the
Inheritance Tax and Gift Tax Act.
Article 40-3 (Report of Successors' Representative)
(1) The report of successors' representative under the latter
part of Article
28-3 (2) of the Act shall be made within thirty
days from the date of the commencement of the inheritance and
using documents containing
the representative's name, address,
place of residence and other necessary matters.
(2) The Corporation may, if there is no report as prescribed
in the latter part of Article 28-3 (2) of the Act, designate one of
the successors as a representative. In this case, the Corporation
shall notify each successor of this by sending documents
containing
its intention without delay.
Article 40-4 (Reasons for Exception to Disclosure of Personal
Information on High-Amount or Habitual Delinquents)
(1) When the
Corporation makes public personal information
on a delinquent pursuant to Article 28-6 (1) of the Act, it shall
disclose the delinquent's
name, company name (including the
name of the corporation), age, address, type of arrears, payment
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deadline, amount of arrears, points of arrearage, etc., and if the
delinquent is a corporation, shall disclose the representative
of
the corporation as well.
(2) "Reasons prescribed by the Presidential Decree" in the
proviso of Article 28-6 (1) of the Act refer to cases falling
under
any of the following subparagraphs :
1. In case where 30/100 or more of overdue premiums,
other charges and disposition fees for arrears (hereinafter
referred to as
"amount of arrears") have been paid during
the insurance year concerned;
2. In case where the collection of arrears has been
postponed as a decision to approve rehabilitation plans
was made pursuant to
Article 243 of the Debtor
Rehabilitation and Bankruptcy Act and during the grace
period, arrears are being paid according to the payment
schedule in the
rehabilitation plans; and
3. In case where the business falls into a serious crisis
because of severe property damages caused by disasters,
etc., and the
Deliberation Committee on Disclosure of
Insurance Premium-related Information prescribed in
Article 28-6 (2) of the Act considers
that the disclosure of
personal information on the delinquent would not bring
actual benefits.
(3) When pursuant to Article 28-6 (3) of the Act, the
Corporation notifies those subject to the disclosure of personal
information,
etc., on delinquents that they are subject to the
disclosure, it shall urge them to pay arrears and if they fall
under reasons
to be an exception to the disclosure of personal
information, etc. pursuant to the proviso of Article 28-6 (1) of
the Act, the
Corporation shall inform them that they have to
submit materials for explanation.
Article 40-5 (Composition and Operation of Deliberation Committee
on Disclosure of Insurance Premium-related Information)
(1) The
Deliberation Committee on Disclosure of Insurance
Premium-related Information (hereinafter referred to as the
"Committee") prescribed
in Article 28-6 (2) of the Act shall be
composed of eleven members including one chairman.
(2) The chairmanship of the Committee
shall be assumed by
a standing director in charge of relevant work from among the
officers of the Corporation as prescribed in
Article 16 of the
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Industrial Accident Compensation Insurance Act and its
members shall be appointed or assigned by the president of the
Corporation
from among those described in the following
subparagraphs :
1. Four employees of the Corporation;
2. One public official of Grade IV or higher at the Ministry
of Labor, who is in charge of collecting premiums for
employment insurance
and industrial accident compensation
insurance;
3. One public official of Grade IV or higher at the National
Tax Service; and
4. Four people with plenty of academic knowledge and
experiences in laws, accounting or social insurance.
(3) The term of the members
prescribed in subparagraph 4
of paragraph (2) shall be two years.
(4) A meeting of the Committee shall be held with the
attendance of a majority of the registered members and a
resolution shall
be passed with the approval of a majority of
the members present.
(5) Necessary matters concerning the composition and
operation of the Committee other than those prescribed in
paragraphs (1) through
(4) shall be determined by the
Corporation.
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Article 40-6 (Mutatis Mutandis Application of the Framework Act
on National Taxes)
Articles 13 through 17 of the Framework Act on National
Taxes shall apply mutatis mutandis to the provision of security
for payment
in order to postpone the disposition of overdue
insurance premiums and other charges. In this case, "security
for tax payment"
shall be read as "security for payment",
"national taxes" as "insurance premiums", "guaranty insurance
policy for tax payment"
as "guaranty insurance policy for
payment", "head of a district tax office" or "head of the
competent district tax office" as "Corporation",
"taxpayer" as
"employer", "certificate of tax payment guarantee" as "certificate
of payment guarantee", "collateral for tax payment"
as "collateral
for payment", "national taxes, additional charges and disposition
fees for arrears" as "insurance premiums, other
charges and
disposition fees for arrears", "tax payment guaranty insurance
provider" as "payment guaranty insurance provider" and
"tax
payment guarantor" as "payment guarantor".
Article 41 (Deficits Disposal of Charges)
(1) "Cases as prescribed by the Presidential Decree" in
Article 29 (1) 3 of the Act refer to cases described in any of
the following
subparagraphs : 1. In case where the delinquent's whereabouts are unknown;
2. In case where it is confirmed that the delinquent has no
property or that the estimated price of the total property
subject to
the disposition of charges in arrears is too low
to have anything left after it is appropriated for the
disposition fees;
3. In case where it is confirmed that the total property
subject to the disposition of charges in arrears is too
small to have anything
left after it is appropriated for the
repayment of claims, such as national and local taxes,
which take precedence over premiums
and other charges;
and
4. In case where the delinquent company is exempted from
the responsibility for paying premiums, etc. pursuant to
Article 251 of
the Debtor Rehabilitation and Bankruptcy
Act.
(2) If the Corporation intends to make a deficits disposal
- 25 -
pursuant to paragraph (1) 1, it shall investigate and confirm the
whereabouts of the delinquent or whether he/she has any
property
or not through Shis, Guns, tax offices and other
agencies : Provided that this shall not apply in case the amount
of arrears is
less than one hundred thousand won.
Article 41-2 (Request for Materials on Arrearage or Deficits
Disposal)
(1) A person (hereinafter referred to as "requester") who
requests personal information on a delinquent or a person
subject to
deficits disposal and materials on the amount of
arrears or deficits disposal pursuant to Article 29-2 (1) of the
Act shall submit
documents containing matters described in any
of the following subparagraphs to the Corporation :
1. The requester's name and address; and
2. Contents of the requested materials, such as on arrearage,
etc., and the purpose of their use
(2) The Corporation, receiving a request for materials on
arrearage, etc., pursuant to paragraph (1), may provide them in
the form
of an electronic file prepared pursuant to Article 41-4
(1) or documents.
(3) If the Corporation has provided materials on arrearage,
etc., pursuant to paragraph (2) and there occurs reasons, such
as paying
up arrears, canceling deficits disposal, etc., it shall
notify the requester of this within fifteen days after the date of
the
occurrence of the reasons.
(4) Matters necessary for the request and provision of
materials on arrearage, etc. pursuant to paragraph (1) through
(3) shall
be determined by the Corporation.
Article 41-3 (Reasons for Exception to Provision of Materials on
Arrearage or Deficits Disposal)
"Reasons prescribed by the Presidential Decree" in the
proviso of Article 29-2 (1) of the Act refer to cases falling
under any
of the following subparagraphs :
1. In case where the Corporation has postponed a disposition
on arrears for delinquents (hereinafter referred to as
"delinquents")
falling under Article 29-2 (1) 1 or 2 of the
Act; and
2. In case where the Corporation deems a delinquent to be
unable to pay the amount of arrears because of reasons
- 26 -
falling under any of the following items :
A. In case the delinquent suffers severe property damages
due to disasters or robbery; and
B. In case the business suffers remarkable losses or falls
into a serious crisis
Article 41-4 (Preparation of Electronic Files for Arrearage or
Deficits Disposal)
(1) The Corporation may prepare materials on arrearage,
etc., in the form of electronic files.
(2) Necessary matters concerning the arrangement and
management of materials on arrearage, etc., prepared in the
form of electronic
files pursuant to paragraph (1) shall be
determined by the Corporation.
Article 42 (Calculation and Payment of Premiums and Charges for
Industrial Accident Compensation Insurance)
The Corporation shall calculate every month premiums and
charges (including arrears and additional charges) for industrial
accident
compensation insurance collected or paid pursuant to
Article 31 (5) of the Act and pay them into the Industrial
Accident Compensation
Insurance and Prevention Fund (hereinafter
referred to as "Industrial Accident Compensation Insurance and
Prevention Fund") under
Article 95 of the Industrial Accident
Compensation Insurance Act and the Wage Claim Guarantee
Fund under Article 17 of the Wage
Claim Guarantee Act.
Article 43 (Accounting Organization for Premiums, etc.)
The president of the Corporation may appoint a revenue
collector for the
Industrial Accident Compensation Insurance and
Prevention Fund and the Employment Insurance Fund (hereinafter
referred to as "Employment
Insurance Fund") under Article 78 of
the Employment Insurance Act from among the standing directors
of the Corporation, and a cashier
for the Industrial Accident
Compensation Insurance and Prevention Fund and the Employment
Insurance Fund from among its employees
ito have them take
charge of collecting premiums and other charges.
CHAPTER IV
Insurance Work Service Agency
Article 44 (Insurance Work Service Agency)
"Corporations or individuals that meet the criteria prescribed
by the Presidential Decree" in Article 33 (1) of the Act refer to
those described in any of the following subparagraphs:
1. A juristic person who has obtain authorization or
permission from the competent authorities according to
laws; and
2. A person who has been registered pursuant to Article 5
of the Certified Labor Affairs Consultant Act and performed
duties under
Article 2 of the same Act for three years or
more.
Article 45 (Scope of Employers Eligible to Entrust Insurance Work)
(1) The scope of employers eligible to entrust insurance work
to groups, corporations or individuals (hereinafter referred to as
"insurance work service agencies") which have obtained
authorization
from the Corporation to do insurance work
pursuant to Article 33 of the Act shall be limited to those
which employ less than three
hundred workers.
(2) Even if an employer who has entrusted insurance work
employs workers in excess of the number prescribed in
paragraph (1) due
to business expansion or merger, he/she may
continue to be eligible to entrust insurance work during the
insurance year concerned.
(3) An insurance work service agency shall, if it is entrusted
with insurance work by an employer prescribed in paragraph (1)
or
if the entrustment of insurance work is terminated, report this
to the Corporation within fourteen days thereof.
Article 46 (Scope of Insurance Work Able to Be Entrusted)
The scope of work able to be entrusted to an insurance
work service agency
pursuant to Article 33 (1) of the Act is as
follows:
1. Reporting estimated and final premiums;
2. Administering qualifications for the insured of employment
insurance;
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3. Reporting the establishment, change and termination of
insurance relationships; and
4. Other insurance work that an employer needs to carry
out in connection with a regional labor office or the
Corporation.
Article 47 (Authorization of Insurance Work Service Agency)
(1) If an agency intends to be entrusted with insurance
work pursuant
to Article 33 (2) of the Act, it shall submit an
application for authorization containing such matters as the
contents of entrusted
work, and entrusted areas, along with the
following documents, to the Corporation:
1. A copy of a document proving that the agency has
obtained authorization or permission from or has been
registered with the competent
authorities (applying only
to agencies falling under subparagraph 1 of Article 44);
2. A copy of a document proving that the agency is a
person described in subparagraph 2 of Article 44 (applying
only to individuals
falling under subparagraph 2 of
Article 44);
3. A copy of bylaws or articles (applying only to corporations
or groups); and
4. A copy of rules (hereinafter referred to as "rules on entrustment
of insurance work") that the agency will use when
making a
contract on entrustment of insurance work with
a business owner.
(2) The rules on the entrustment of insurance work shall
include matters described in the following subparagraphs:
1. Procedures for the entrustment of insurance work and
termination of the entrustment;
2. Methods of and procedures for handling insurance work;
3. Accounting methods and procedures of the insurance
work service agency;
4. Matters concerning the administration of qualifications for
the insured; and
5. Other matters concerning responsibilities for reporting and
paying premiums.
(3) If a person (limited to corporations or groups) intends to
obtain authorization to be entrusted with insurance work
pursuant
to Article 33 (2) of the Act, it is clearly stated in its
bylaws, articles, etc. that he/she can be entrusted to perform
insurance
work.
(4) "The matters prescribed by the Presidential Decree" in
Article 33 (3) of the Act refer to the following matters:
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1. Entrusted areas; and
2. Rules on the entrustment of insurance work.
(5) An insurance work service agency shall apply for
authorization or report to the
Corporation no later than seven
days before the date of change, if it intends to change
authorized matters pursuant to Article
33 (3) of the Act, and no
later than thirty days before the date of discontinuation, if it
intends to discontinue entrusted work
pursuant to Article 33 (4)
of the Act.
Article 48 (Cancelation of Authorization of Insurance Work Service
Agency)
(1) If an insurance work service agency falls under any of
the following subparagraphs, the Corporation may cancel the
authorization
pursuant to Article 33 (5) of the Act : Provided
that in case it falls under subparagraph 1, the authorization
shall be cancelled:
1. In case where the authorization is obtained in false or
other fraudulent ways;
2. In case where insurance work service is suspended
consecutively for two months or longer without justifiable
reasons;
3. In case where insurance work is carried out in false or
other fraudulent ways; and
4. In case where the insurance work service agency violates
laws or does not comply with the order under laws.
(2) If the Corporation
cancels the authorization of an insurance
work service agency pursuant to paragraph (1), it shall notify
the insurance work service
agency and the employer entrusting
the insurance work of this without delay.
Article 49 (Hearing)
The Corporation shall, if it intends to cancel the authorization
of an insurance work service agency pursuant to Article 48 (1),
hold a hearing.
Article 50 (Notification by Insurance Work Service Agency)
When an insurance work service agency receives the notification,
etc.
of the payment of premiums and other charges under
Article 34 of the Act, it shall notify the employer of this
without delay.
Article 51 (Keeping, etc. of Books by Insurance Work Service
Agency)
An insurance work service agency shall prepare the
- 30 -
following documents and keep them for three years or more
pursuant to Article 36 of the Act:
1. A list of employers who have entrusted insurance work;
2. Books on collection affairs by employer;
3. Books on insurance work other than collection affairs
such as the report of the insured, and relevant documents,
by employer;
4. Documents relating to the entrustment of insurance work
between the employer and the insurance work service
agency;
5. Documents relating to applications for and receipts of the
subsidies for vicariously carrying out insurance work
under Article
52; and
6. Documents relating to the notification of the payment of
premiums and other charges imposed on the employer.
Article 52 (Support
for Insurance Work Service Agency)
(1) The Corporation may provide the subsidies (hereinafter
referred to as "subsidies for carrying
out insurance work")
described in the following subparagraphs to an insurance work
service agency pursuant to Article 37 of the
Act:
1. Subsidy (hereinafter referred to as "subsidy for handling
collection affairs") for being entrusted with insurance
work by an
employer who employs less than 30 workers
and collecting premiums and other charges;
2. Subsidy (hereinafter referred to as "subsidy for managing
the insured")for being entrusted with employment insurance
work by
an employer who employs less than 30 workers
and handling insurance affairs such as managing the
insured; and
3. Subsidy (hereinafter referred to as "grant for promoting
coverage") for being entrusted with insurance work by an
employer who
employs less than 30 workers and
reporting the establishment of an insurance relationship
for employment insurance and industrial accident
compensation insurance.
(2) The subsidies for carrying out insurance work under
paragraph (1) shall be paid according to the criteria prescribed
by the
Minister of Labor in consideration of premiums and
other charges actually paid by an employer, the size of
business, the results
of the management of the insured, such as
- 31 -
aquisition or loss of qualifications for the insured, or the period
of entrustment, with the subsidy for handling collection affairs
paid half-yearly and the subsidy for managing the insured paid
quarterly.
(3) If an insurance work service agency reports the
discontinuation of its work during the insurance year pursuant
to Article 33
(4) of the Act, the amount of actually paid
premiums and other charges under paragraph (2) shall be
calculated based on the amount
of premiums and other charges
paid during the payment period from the first day of the half
year concerned until the fifteenth
day of the middle month of
the quarter to which the date of discontinuation belongs but
excluding the amount the employer entrusting
the insurance
work has paid in accordance with the disposition on charges in
arrears under Article 28 of the Act.
(4) The period of entrustment under paragraph (2) shall be
counted from the date on which the insurance work service
agency reports
the entrustment of insurance work to the
Corporation pursuant to Article 45 (3).
(5) If an insurance work service agency intends to receive
the subsidies for carrying out insurance work, it shall make an
application
to the Corporation every half year in the case of
the subsidy for handling collection affairs and grants for
promoting coverage,
and one month after the end of each
quarter (the date of discontinuation in case the agency reports
the discontinuation of its
work pursuant to Article 33 (4) of the
Act) in the case of the subsidy for managing the insured.
Article 53 (Restrictions on Support
for Insurance Work Service
Agency)
(1) If an insurance work service agency causes a loss in
collecting premiums and other charges, the Corporation may
subtract the
amount equivalent to the loss from the subsidy for
handling collection affairs and the subsidy for managing the
insured.
(2) If an insurance work service agency neglects to make a
report on the aquisition or loss of qualifications for the insured
of
employment insurance and fails to comply with a correction
order after being issued with the order twice or more by the
head of
the responsible employment security center, the
Corporation shall cut the subsidy for managing the insured
allocated to the insurance
work service agency concerned by
- 32 -
50/100, and if it fails to comply after being issued with the
correction order three times or more, the Corporation shall not
at
all pay the subsidy for managing the insured.
- 33 -
Article 54 (Financing Subsidies for Carrying Out Insurance Work)
(1) The subsidy for handling collection affairs shall be
financed
from the Employment Insurance Fund and the
Industrial Accident Compensation Insurance and Prevention Fund
in proportion to the
percentage of each amount for employment
insurance and for industrial accident compensation insurance in
the amount paid by the
employer.
(2) The subsidy for promoting coverage shall be financed
equally from the Employment Insurance Fund and the Industrial
Accident
Compensation Insurance and Prevention Fund.
(3) The subsidy for managing the insured shall be financed
from the Employment Insurance
Fund.
CHAPTER V
Supplementary Provisions
Article 55 (Report, Submission, Investigation)
(1) "Cases prescribed by the Presidential Decree" in Articles
44 and 45 (1) of the Act refer to those described in any of the
following
subparagraphs:
1. In case where it is needed to confirm matters concerning
an insurance relationship, such as the establishment,
change or termination
of an insurance relationship;
2. In case where it is needed to confirm matters concerning
premium collection, such as the number of workers, the
total amount
of wages, type of business, etc.;
3. In case where it is needed to confirm whether an insurance
work service agency handles insurance work in a illegal
or unfair
way or neglects to handle it; and
4. In case where it is needed to confirm the facts in relation
to the payment of the subsidies for carrying out insurance
work
(2) The demand to make a report and submission under
Article 44 of the Act shall be made in a written form.
Article 56 (Entrustment
of Work)
(1) The scope of work able to be entrusted by the
Corporation pursuant to Article 46 of the Act is as follows :
1. Matters concerning receiving premiums and other charges;
2. Matters concerning returning premiums, etc. paid in
excess; and
3. Work entailed by the matters under subparagraphs 1 and 2.
- 34 -
(2) If the Corporation entrusts work pursuant to paragraph
(1), it may pay fees for the entrusted work to the entrusted
person.
CHAPTER VI
Fine for Negligence
Article 57 (Imposition of Fine for Negligence)
(1) If the Minister of Labor intends to impose a fine for
negligence pursuant to Article 50 (3) of the Act, he/she shall
notify
the person subject to the fine for negligence of the type
of offense, the amount of the fine for negligence, payment
deadline,
etc. in writing after investigating and confirming the
offense.
(2) If the Minister of Labor intends to impose a fine for
negligence, he/she shall give the person subject to the fine for
negligence
10 days or more to make statements verbally or in
writing. In this case, if no statement is made until the set
deadline, it shall
be considered that there is no statement to make.
(3) The amounts of fines for negligence by type of offense
are shown in Table
2 : Provided that the Minister of Labor
may raise or reduce the amount of the fine concerned by up to
half in consideration of
the degree of the offense, the motive
and results of the offense, etc., but even in the case of raising
the amount, it shall not
exceed the maximum amount
prescribed in Article 50 (1) and (2) of the Act.
(4) The procedures for collecting a fine for negligence shall
be prescribed by the Ordinance of the Ministry of Labor.
Addenda
This Decree shall enter into force on July 1, 2008.
Article 2 (Application Cases Concerning Change of Reference Date
for Determination
of Labor Cost Ratio)
The amended provisions of Article 11 shall apply to the
report and payment of estimated insurance premiums in 2009
and thereafter
under Article 17 (1) of the Act.
Article 3 (Transitional Measures Concerning Change of Entitlement
- 35 -
to Subsidy for Vicariously Carrying Out Insurance Work)
Notwithstanding the revised provisions of Article 52, the
previous provisions
shall apply with regard to subsidy for the
insurance work which is entrusted to an insurance work service
agency by an employer
who employs 30 workers or more but
less than 100 workers, and then carried out until June 30, 2009.
- 36 -
[Table 1]
Increase or Decrease in Industrial Accident
Compensation Insurance Premium Rate
(Relating to Articles 18 (1))
Ratio of industrial accident
compensation insurance benefits to
industrial accident compensation
insurance premiums
Rate of increase or decrease in
industrial accident compensation
insurance premium rate
up to 5%
over 5% up to 10%
over 10% up to 20%
over 20% up to 30%
over 30% up to 40%
over 40% up to 50%
over 50% up to 60%
over 60% up to 70%
over 70% up to 75%
over 75% up to 85%
over 85% up to 90%
over 90% up to 100%
over 100% up to 110%
over 110% up to 120%
over 120% up to 130%
over 130% up to 140%
over 140% up to 150%
over 150% up to 160%
over 160%
decrease the rate by 50%
decrease by 48%
decrease by 42%
decrease by 36%
decrease by 30%
decrease by 24%
decrease by 18%
decrease by 12%
decrease by 6%
0
increase the rate by 6%
increase by 12%
increase by 18%
increase by 24%
increase by 30%
increase by 36%
increase by 42%
increase by 48%
increase by 50%
- 37 -
[Table 2]
Criteria for Imposition of Fines for Negligence by Type of Offence
(Relating to Article 57 (3))
1. General Criteria
The criteria for the imposition of fines for negligence by
frequency of offense shall be applied in case a fine
for
negligence is imposed for the same types of offenses committed
during the recent one-year period (recent three-year period
in
the case of the violation prescribed in Articles 11, 17 and 19 of
the Act). In this case, the date on which a fine for negligence
is
imposed for the same type of offense and the date on which
the offense is discovered again shall be used as a basis for the
date of the application of the criteria.
2. Individual Criteria
Type of Offense Relevant Provisions
Amount of Fine for Negligence
Once Twice Three Times
or More
1. A person who fails to make a report or
makes a false report on insurance
relationship under Article 11 of the Act,
change of insurance relationship under
Article 12, estimated premiums under
Article 17 and final premiums under
Article 19
Article 50 (1) 1 of
the Act
one
million
won
two
million
won
three million
won
2. A person who fails to make a report or
makes a false report or fails to submit
related documents or submits false
documents against the demand made
under Article 44 of the Act
Article 50 (1) 2 of
the Act
one
million
won
two
million
won
three million
won
3. A person who gives a false answer to
the question asked under Article 45 (1)
of the Act or refuses, obstructs or evades
the investigation conducted under the
same paragraph.
Article 50 (1) 3 of
the Act
one
million
won
two
million
won
three million
won
4. A person who fails to keep the books or
other documents under Article 36 of the
Act or makes a false entry in them
Article 50 (2) of the
Act
100,000
won
200,000
won
300,0000 won
Note : Among the offenses described in subparagraph 1 of the individual
criteria above, those committed in violation of Articles
11, 12, 17
and 19 of the Act shall be considered separate offenses in calculating
their frequency.
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