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ENFORCEMENT DECREE OF THE WAGE CLAIM GUARANTEE ACT

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ENFORCEMENT DECREE OF THE WAGE CLAIM GUARANTEE ACT

Presidential Decree No. 15804, May 26, 1998

Amended by Presidential Decree No. 16092, Jan. 29, 1999 Presidential Decree No. 16755, Mar. 13, 2000

Presidential Decree No. 17244, Jun. 22, 2001

Presidential Decree No. 18018, Jun. 25, 2003

Presidential Decree No. 18312, Mar. 17, 2004

Presidential Decree No. 18574, Oct. 29, 2004

Presidential Decree No. 18913, Jun. 30, 2005

Presidential Decree No. 19422, Mar. 29, 2006

Presidential Decree No. 19513, Jun. 12, 2006

Presidential Decree No. 19957, Mar. 26, 2007

Presidential Decree No. 20681, Feb. 29, 2008

Presidential Decree No. 20875, Jun. 25, 2008

Article 1 (Purpose)

The purpose of this Decree is to prescribe the matters delegated by the Wage Claim Guarantee Act and the matters necessary for the enforcement thereof.

Article 2 (Function of Deliberation Commission on Wage Claim Guarantee Fund)

The Deliberation Commission on Wage Claim Guarantee Fund (hereinafter referred to as ßÖthe Commissionß×) under Article 5 of the Wage Claim Guarantee Act (hereinafter referred to as ßÖthe Actß×) shall deliberate on matters described in the following subparagraphs :

1. Matters regarding the determination of charge rates under Article 8 (2) of the Act;

2. Matters regarding the determination of criteria for the reduction of charges under Article 9 of the Act

3. Matters regarding the establishment of plans on the operation of the Wage Claim Guarantee Fund (hereinafter referred to as ßÖthe Fundß×) under Article 15 of the Act; and

4. Other matters deemed important for the management and operation of the Fund and referred to by the

Minister of Labor

Article 3 (Composition, etc. of Commission)

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(1) The members of the Commission shall be appointed or commissioned by the Minister of Labor in accordance with the classification described in the following subparagraphs :

1. Members representing workers shall be five persons who are recommended by a trade union which is the

confederation of trade unions

2. Members representing employers shall be five persons who are recommended by the nationwide employers'

organization; and

3. Members representing the public interests: A. A public official of Grade III in charge of wage claim guarantee work in the Ministry of Labor or a general public official in the Senior Civil Service;

B. A public official of Grade III or IV in charge of wage claim guarantee work in the Ministry of Labor or a general public official in the Senior Civil Service ; and C. Three persons from among those recommended by

civic groups (referring to non-profit civic groups under Article 2 of the Assistance for Non-profit, Nongovernmental Organizations Act) and those considered by the

Minister of Labor to have plenty of knowledge and experience in social insurance.

(2) The provisions of Articles 5 through 7 and Articles 9 through 11 of the Enforcement Decree of the Industrial Accident Compensation Insurance Act shall apply mutatis mutandis with regard to the organization and operation of the Commission. In this case, "the Vice Minister of Labor" and "a public official of Grade III in charge of industrial accident compensation insurance affairs or a general public official in the Senior Civil Service" in the proviso of Article 5 (1) of the Enforcement Decree of the same Act shall be read as ßÖa public official of Grade III in charge of wage claim guarantee work or a general public official in the Senior Civil Serviceß×and "a public official of Grade III or IV in charge of wage claim guarantee work or a general public official in the Senior Civil Service", respectively, and ßÖthe Vice Minister of Laborß×in Article 6 (2) of the Enforcement Decree of the same Act shall be read as ßÖa public official of Grade III in charge of wage claim guarantee work,ß×and members and members of the expert committeeß×in Article 10 of the Enforcement Decree of the same Act as ßÖmembersß×, respectively.

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Article 4 (Reasons for Payment of Overdue Wages, etc.) ßÖThe reasons prescribed by the Presidential Decree, such as bankruptcy, etc.ß×in Article 6 (1) of the Act refer to those falling under any of the following subparagraphs :

1. Declaration of bankruptcy under the Debtor Rehabilitation and Bankruptcy Act;

2. Deleted

3. Decision on the commencement of rehabilitation procedures under the Debtor Rehabilitation and Bankruptcy Act; and

4. Recognition of facts, such as bankruptcy, etc., by the Minister of Labor pursuant to Article 5

Article 5 (Conditions and Procedures for Recognition of Facts such as Bankruptcy, etc.) (1) The Minister of Labor may, if an employer meets the conditions described in the following subparagraphs and his/her retired worker with unpaid wages, etc., makes an application, recognize the employer as being incapable of paying the unpaid wages, etc. (hereinafter referred to as the ßÖrecognition of facts such as bankruptcy, etc.ß×) : <Amended by Presidential Decree No. 18913, Jun. 30, 2005> 1. The number of workers ordinarily employed (hereinafter referred to as ßÖthe number of workersß×) calculated according to the method in Table 1 is 300 or less; 2. The business has been closed or is in the process of being closed for reasons described in any of the following items: A. The businessßÓproduction or operation activities have stopped, and major business facilities have been seized or provisionally seized, or transferred in order to repay debts(including cases where auctioning-off under the Civil Execution Act is under way); B. Approval, permission, registration, etc., granted to the business have been cancelled or terminated; or C. The businessßÓmain production and operation activities have been suspended for one month or more; 3. The employer is incapable of paying wages, etc., or remarkably difficult to pay wages, etc., for reasons described in any of the following items: A. As of the date of the recognition of facts such as - 4 - bankruptcy, etc., the whereabouts of the employer had been unknown for one month or more; or B. It is considered to take three months or more from the date of application for the recognition of facts such as bankruptcy, etc., to cash in or retrieve the employerßÓs assets; and 4. Deleted. <Presidential Decree No. 18018, Jun. 25, 2003> (2) The application for the recognition of facts such as bankruptcy, etc., prescribed in paragraph (1) shall be made within one year from the date following the date of retirement from the business concerned. <Amended by Presidential Decree No. 18018, Jun. 25, 2003> (3) Necessary matters concerning the application for the recognition of facts such as bankruptcy, etc., prescribed in paragraph (2) shall be prescribed by the Ordinance of the Ministry of Labor. <Amended by Presidential Decree No. 17244, Jun. 22, 2001> Article 6 (Decision and Announcement of Ceiling Amount for Subrogated Payment) The ceiling amount for wages, etc. (hereinafter referred to as the ßÖsubrogated paymentß×) that the Minister of Labor pays on behalf of an employer pursuant to Article 6 (1) of the Act shall be decided by the Minister of Labor according to the age of a worker at the time of retirement after consultation with the Minister of Strategic Planning and Finance in consideration of wages, price increase rates, financial conditions of the fund, etc., and the contents of the decision shall be announced in an official gazette and one or more daily newspapers registered as having a nationwide circulation pursuant to Article 7 (1) of the Act on Registration, etc., of Periodicals. <Amended by Presidential Decree No. 20681, Feb. 29, 2008> <This Article Wholly Amended by Presidential Decree No. 18018, Jun. 25, 2003> Article 7 (Workers Entitled to Subrogated Payment) A worker entitled to subrogated payment under Article 6 (3) of the Act shall be a worker who retires from the business or workplace concerned (hereinafter referred to as ßÖbusinessß×) during the one year before and three years after the date described in the following subparagraphs: <Amended by Presidential Decree No. 19422, Mar. 26, 2007> 1. In case there is a declaration of bankruptcy, or a decision on the commencement of rehabilitation procedures - 5 - (hereinafter referred to as ßÖdeclaration of bankruptcy, etc.ß×) under subparagraph 1 or 3 of Article 4, the date of the application 1-2. In case a court declares, by virtue of its authority, bankruptcy for the business after an application is made for the commencement of rehabilitation procedures pursuant to the Debtor Rehabilitation and Bankruptcy Act, the date of the application or declaration; and 2. In case there is the recognition of facts such as bankruptcy, etc., under subparagraph 4 of Article 4, the date of the application for the recognition of facts such as bankruptcy, etc. (referring to the final day of the application period in case the final day of the application period prescribed in Article 5 (2) falls on a public holiday so the application is made the day after, and the date of the first application, in case there are two applications or more dealing with the same facts on which the recognition of facts, such as bankruptcy, etc., is based. Hereinafter the same shall apply.) Article 8 (Criteria for Employers) An employer whose workers are entitled to subrogated payment under Article 6 (3) of the Act shall be an employer who has causes falling under any of the subparagraphs of Article 4 after carrying out business for six months or more since the Act began to apply pursuant to Article 3 of the Act. <Amended by Presidential Decree No. 18018, Jun. 25, 2003> <This Article Wholly Amended by Presidential Decree No. 17244, Jun. 22, 2001> Article 9 (Request for and Provision of Subrogated Payment) (1) A person who intends to receive subrogated payment pursuant to Article 6 (4) of the Act shall make a request to the Minister of Labor within 2 years from the date of the declaration of bankruptcy, etc. or from the date of the recognition of facts, such as bankruptcy, etc., in relation to the employer concerned. <Amended by Presidential Decree No. 16755, Mar. 13, 2000> (2) Necessary matters concerning the request for and provision of subrogated payment under paragraph (1) shall be prescribed by the Ordinance of the Ministry of Labor. Article 10 (Confirmation etc., of Causes for Subrogated Payment Such as Declaration of Bankruptcy, etc.) (1) A person who makes a request for subrogated payment - 6 - pursuant to Article 9 (1) shall get confirmation from the Minister of Labor with regard to matters described in the following subparagraphs and an application for the confirmation shall be made simultaneously with the request for subrogated payment under Article 9 (1). <Amended by Presidential Decree No. 17244, Jun. 22, 2001> 1. Date of the declaration of bankruptcy, etc., or date of the recognition of facts, such as bankruptcy, etc., and the date of the application therefor; 2. Date of retirement and age at the time of retirement; 3. Unpaid wages or allowances for suspension of business for final three months and unpaid retirement pay for final three years; 4. Amount of subrogated payment to be received; and 5. Fact that the employer is the one prescribed in Article 8 (2) The Minister of Labor shall, if deemed necessary for the confirmation under paragraph (1), take necessary measures such as having the employer, bankruptcy administrator, administrator, manager, etc., report on matters related to the declaration of bankruptcy, etc. or submit related documents, pursuant to Article 19 of the Act. (3) Necessary matters concerning the confirmation under paragraph (1) shall be prescribed by the Ordinance of the Ministry of Labor. Article 11 (Subrogation of Right to Claim Unpaid Wages, etc.) If the Minister of Labor is subrogated to the right to claim unpaid wages, etc., pursuant to Article 7 (1) of the Act, he/she shall take necessary measures concerning the exercise, securing, etc., of the right to claim. <Amended by Presidential Decree No. 17244, Jun. 22, 2001> Article 12 (Collection of Charges) (1) When collecting charges pursuant to Article 8 (1) of the Act, the Minister of Labor shall collect them together with the industrial accident compensation insurance premiums prescribed in Article 13 (1) 2 of the Act on the Collection, etc. of Premiums for Employment Insurance and Industrial Accident Compensation Insurance (hereinafter referred to as "the Insurance Premium Collection Act"). <Amended by Act No. 18574, Oct. 24, 2004 and No.18913, Jun. 30, 2005> (2) The Minister of Labor shall calculate every month the charges collected in an integrated manner pursuant to paragraph (1) and pay them into the Fund. - 7 - Article 13 (Announcement of Rate of Charges) The Minister of Labor shall, when he/she has decided the rate of charges pursuant to Article 8 (2) of the Act, announce the contents of the decision in an official gazette and one or more daily newspapers registered as having a nationwide circulation pursuant to Article 7 (1) of the Act on Registration, etc. of Periodicals. <Amended by Presidential Decree No. 18913, Jun. 30, 2005> Article 14 (Criteria for Employers Eligible for Reduction in Charges) (1) The number of workers ordinarily employed by an employer under subparagraph 1 of Article 9 of the Act shall be calculated in accordance with the methods in Table 1 : Provided that in the case of the employers of businesses subject to special cases of collection pursuant to Article 21 of the Insurance Premium Collection Act, the number of ordinarily employed workers shall be calculated in accordance with the methods prescribed in Article 29 (1) of the Enforcement Decree of the Act on the Collection of Premiums for Employment Insurance and Industrial Accident Compensation Insurance (hereinafter referred to as the "Enforcement Decree of the Insurance Premium Collection Act"). <Amended by Presidential Decree No. 19957, Mar. 26, 2007> (2) A judgment of whether or not an employer is eligible for the reduction of charges under subparagraphs 1-2, 2 and 2-2 of Article 9 of the Act shall be made based on the end of a previous year. <This Article Wholly Amended by Presidential Decree No. 18913, Jun. 30, 2005> Article 15 (Procedure for Reduction in Charges) (1) If an employer who intends to have charges reduced pursuant to subparagraph 1 of Article 9 of the Act reports and pays charges under Article 14 of the Act, he/she shall report and pay the amount announced pursuant to Article 16 as the charges. <Amended by Presidential Decree No. 18913, Jun. 30, 2005> (2) An employer who intends to have charges reduced pursuant to subparagraphs 1-2, 2 and 2-2 of Article 9 of the Act shall submit an application for the reduction of charges containing matters described in the following subparagraphs to the Minister of Labor, after meeting the conditions for the reduction of charges prescribed in the same subparagraph : <Amended by Presidential Decree No. 18913, Jun. 30, 2005> - 8 - 1. Name and address of the employer (in the case of a juristic person, the name of the representative) 2. Name of the business and location of the workplace 3. Current status of subscription to retirement insurance, etc; and 4. Main contents of a contract about retirement insurance, etc. (3) The Minister of Labor shall, after reviewing the submitted documents referred to in paragraph (2), notify the employer concerned who meets the conditions for the reduction of charges of specific details of the reduction. <Amended by Presidential Decree No. 17244, Jun. 22, 2001> Article 16 (Announcement of Criteria for Reduction in Charges) The Minister of Labor shall, when he/she has decided criteria for reduction in charges pursuant to the latter part of Article 9 of the Act, announce the contents of the decision in an official gazette and one or more daily newspapers registered as having a nationwide circulation pursuant to Article 7 (1) of the Act on the Registration, etc., of Periodicals. <Amended by Presidential Decree No. 18913, Jun. 30, 2005> Article 17 (Preparation etc. of Cards about Charges and Other Levies) (1) For businesses subject to the Act, the Minister of Labor shall prepare and keep a card about charges and other levies for each workplace. (2) The Minister of Labor shall, if an employer intends to inspect the card about charges and other levies, let him/her inspect it and if an employer intends to have a certificate issued for necessary matters, may issue it. Article 18 (Delegation of Receipt of Subrogated Payment) (1) A person with the right to receive subrogated payment may delegate such right to his/her family members pursuant to Article 10 (2) of the Act, if he/she cannot receive the subrogated payment due to an injury or disease. (2) If a family member to whom the right to receive subrogated payment is delegated pursuant to paragraph (1) intends to receive it, he/she shall submit documents proving the fact of delegation and family relations. Article 19 (Entries in Property List) An employer who is ordered to submit a list of properties pursuant to Article 12 of the Act shall submit the list containing matters described in the following subparagraphs to the Minister - 9 - of Labor : <Amended by Presidential Decree No. 17244, Jun. 22, 2001> 1. Ownership, surface right, right to lease on a deposit basis and right of lease with regard to real estate, and right to claim delivery of real estate, and right to claim the transfer thereof; 2. Ownership and right to claim delivery of, automobiles, construction machinery, vessels and aircraft required to be registered, and right to claim the transfer thereof; 3. Mining right, fishing right, and other rights to which real estate-related provisions apply mutatis mutandis, and right to claim the transfer thereof; and 4. In the case of claims which are secured by liens, such as pledges and mortgages, their purpose and content of the liens Article 20 (Collection, etc. of Fraudulent Gains) (1) If a person intends to receive or already received subrogated payment in a false or other fraudulent ways under Article 13 (1) of the Act, the Minister of Labor shall not pay the requested amount or shall request a return of the amount already paid in accordance with the classification described in the following subparagraphs: <Amended by Presidential Decree No. 18913, Jun. 30, 2005> 1. In case the person does not satisfy the requirements to receive subrogated payment: all of the requested or paid amount; and 2. In case the person satisfies the requirements to receive subrogated payment: part of the requested or paid amount (referring to an amount equivalent to fraudulent gains). (2) The Minister of Labor shall, if he/she has decided to request a return of paid subrogated payment (including additional amount referred to in Article 13 (2) of the Act; hereinafter the same shall apply.) pursuant to paragraph (1), notify the person liable for the payment that he/she should make that payment. <Amended by Presidential Decree No. 18913, Jun. 30, 2005> (3) A person who receives notification pursuant to paragraph (2) shall pay the notified amount within 30 days from the date of notification. (4) The procedures for the non-payment or return of subrogated payment prescribed in paragraphs (1) through (3) - 10 - and other matters necessary to handle the fraudulent receipt of subrogated payment shall be determined by the Minister of Labor. <This Article Wholly Amended by Presidential Decree No. 17244, Jun. 22, 2001> Article 20-2 (Report, etc., of Fraudulent Receipt of Subrogated Payment) (1) A person who intends to report the fact (hereinafter referred to as "fraudulent receipt") that subrogated payment has been received in a false or other fraudulent ways as prescribed in Article 13-2 of the Act shall report it to a local labor office under the conditions prescribed by the Ordinance of the Ministry of Labor. (2) An investigation agency which is informed of the fraudulent receipt of subrogated payment under Article 13-2 of the Act shall notify a local labor office of the fact without delay. (3) If a person who has reported or informed on the fraudulent receipt of subrogated payment under Article 13-2 of the Act intends to get reward money (hereinafter referred to as "reward money") under the same Article, he/she shall apply to the Minister of Labor to get the reward money under the conditions prescribed by the Ordinance of the Ministry of Labor. <This Article Newly Inserted by Presidential Decree No. 18913, Jun. 30, 2005> Article 20-3 (Standards for Payment of Reward Money) The amount of reward money shall be limited to 50 million won and paid in accordance with the following standards. In this case, if the calculated amount of reward money is less than one thousand Won, it shall not be paid : 1. In case the amount (hereinafter referred to as the "fraudulently received amount") of subrogated payment received in a false or other fraudulent ways is 50 million won or higher : 5.5 million won + (fraudulently received amount in excess of 50 million won x 5/100); 2. In case the fraudulently received amount is 10 million won or more but less than 50 million won : 1.5 million won + (fraudulently received amount in excess of 10 million won x 10/100); or 3. In case the fraudulently received amount is less than 10 million won : the fraudulently received amount x 15/100 <This Article Newly Inserted by Presidential Decree No. 18913, - 11 - Jun. 30, 2005> Article 20-4 (Deadline for Reporting or Informing) Reward money shall be given only in case the report or information is provided within three years from the date on which the person (hereinafter referred to as the "fraudulent recipient") receiving subrogated payment in a false or other fraudulent ways fraudulently received that subrogated payment. <This Article Newly Inserted by Presidential Decree No. 18913, Jun. 30, 2005> Article 20-5 (Method of Paying Reward Money in case of Multiple Reporting or Informing) (1) If two or more persons, each, report or inform on the fraudulent receipt of the same subrogated payment, they shall be regarded as one case of reporting or informing in calculating reward money. (2) In the case of paragraph (1), the reward money shall be properly divided and distributed among the persons involved in consideration of the extent to which each person contributes to the discovery of the fraudulent receipt but if those who are to receive the reward money have already made an agreement on how to distribute the money and applied for the payment of reward money, the payment shall be made in accordance with the method agreed upon. <This Article Newly Inserted by Presidential Decree No. 18913, Jun. 30, 2005> Article 20-6 (Timing of Payment of Reward Money) Reward money shall be paid after the decision on such payment is confirmed as the deadline for raising an objection has passed or the procedures for raising an objection have been concluded after notification of a return of subrogated payment under Article 13 of the Act. <This Article Newly Inserted by Presidential Decree No. 18913, Jun. 30, 2005> Article 21 (Payment and Collection of Charges and other Levies) The provisions of Articles 10, 20 through 29, 30-2, 30-3, 30-4, 31 through 33, 37 through 40, 40-2, 40-3, 40-4, 40-5, 40-6, 41, 41-2, 41-3, 41-4 and 43 through 53 of the Enforcement Decree of the Insurance Premium Collection Act shall apply mutatis mutandis with regard to the payment and collection (including a return of subrogated payment) of charges and other levies under the Act. In this case, "premiums" in the Enforcement Decree of the same Act shall be read as "charges", "insurance - 12 - work" as "wage claim guarantee work", "the Corporation" as "the Minister of Labor" (referring to the Korea Workers' Compensation & Welfare Service in case the authority is delegated to it pursuant to Article 24), "estimated premiums" as "estimated charges", "insurance year" as "fiscal year", "insurance relationship" as "wage claim guarantee relationship", "premium rate" as "charge rate", "final premiums" as "final charges" and "special-case premiums" as "special-case charges". <Amended by Presidential Decree No. 19957, Mar. 26, 2007> <This Article Wholly Amended by Presidential Decree No.18574, Oct. 29, 2004> Article 22 (Management and Operation of the Fund) The provisions of Article 86 (1) 2, the former part of Article 86 (2), Articles 87 through 89, and Articles 91 through 95 of the Enforcement Decree of the Industrial Accident Compensation Insurance Act shall apply mutatis mutandis with regard to the management and operation of the Fund. In this case, "industrial accident compensation insurance and prevention fund account" in the Enforcement Decree of the same Act shall be read as "wage claim guarantee fund account", "the Corporation"(except for Article 88 (2) and Article 91 (2) of the Enforcement Decree of the same Act) as "the Minister of Labor"(referring to the Korea Workers' Compensation & Welfare Service in case the authority is delegated to it pursuant to Article 24), "premiums" as "charges", "industrial accident compensation insurance and prevention fund(hereinafter referred to as "the fund") under Article 95 of the Act" as "wage claim guarantee fund". <Amended by Presidential Decree No. 20875, Jun. 25, 2008> <Enforcement Date Jul. 1, 2008> Article 22-2 (Criteria for Accumulation of Legal Liability Reserve) The amount of legal liability reserve under Article 99 of the Industrial Accident Compensation Insurance Act to which the provisions of Article 17 of the Act shall apply mutatis mutandis shall be an amount spent to make subrogated payment in the previous year. <Amended by Presidential Decree No. 20875, Jun. 25, 2008> <Enforcement Date Jul. 1, 2008> <This Article Newly Inserted by Presidential Decree No. 18913, Jun. 30, 2005> Article 23 (Request for Report or Submission) A request for a report or submission of related documents under Article 19 of the Act shall be made in writing. - 13 - Article 24 (Delegation and Entrustment of Authority) (1) The Minister of Labor shall delegate, pursuant to Article 23 of the Act, the authorities described in the following subparagraphs to the head of a local labor office : <Amended by Presidential Decree No. 18913, Jun. 30, 2005> 1. Order for the submission of a list of properties under Article 12 of the Act; 1-2. Request for a report or submission of related documents (limited to cases where such a request is necessary for doing delegated work) under Article 19 of the Act; 1-3. Request for cooperation (limited to cases where such a request is necessary for doing delegated work) under Article 19-2 of the Act; 2. Inspection and questioning (limited to cases where it is necessary for doing delegated work) under Article 20 of the Act; 3. Imposition and collection of a fine for negligence under Article 26 of the Act; 4. Recognition of facts such as bankruptcy, etc., under Article 5; 5. Processing of a request for subrogated payment under Article 9; 6. Confirmation under Article 10; 7. Receipt of a application for the payment of reward money under Article 20-2 (3); and 8. Payment of reward money under Article 20-3 (2) The Minister of Labor shall entrust, pursuant to Article 23 of the Act, the authorities described in the following subparagraphs to the Korea Workers' Compensation & Welfare Service under the Industrial Accident Compensation Insurance Act : <Amended by Presidential Decree No. 20875, Jun. 25, 2008> <Enforcement Date Jul. 1, 2008> 1. Subrogated payment under Article 6 of the Act 2. Exercise of rights concerning the subrogation of the right to claim under Article 7 of the Act 3. Collection of charges under Article 8 of the Act 4. Reduction of charges under Article 9 of the Act 5. Deleted <Presidential Decree No. 18913, Jun. 30, 2005> 6. Request for a return under Article 13 of the Act 7. The authorities described in the following items under the provisions of the Insurance Premium Collection Act which - 14 - apply mutatis mutandis pursuant to Article 14 of the Act: A. Receipt and collection of estimated charges under Article 17 of the same Act; B. Measures taken following an increase or decrease in charge rates under Article 18 of the same Act; C. Receipt, collection, and calculation of final charges under Article 19 of the same Act; D. Imposition, announcement and receipt of special-case charges under Article 21 of the same Act; E. Reduction of charges, etc., under Article 22 of the same Act; F. Appropriation and return of charges, etc., paid in excess under Article 23 of the same Act; G. Collection of additional charges under Article 24 of the same Act; H. Collection of arrears under Article 25 of the same Act; I. Notification of charges and urging of their payment under Article 27 of the same Act; J. Collection before a payment deadline under Article 27-2 of the same Act; K. Approval of the payment in installments of insurance premiums, etc., and the cancellation thereof under Article 27-3 of the same Act; L. Treatment for delinquent payments under Article 28 of the same Act; M. Request for the appointment of an administrator of inherited properties under Article 28-3 (4) of the same Act; N. Disclosure of personal information about high-amount or habitual delinquents under Article 28-6 of the same Act; O. Provision of collateral to postpone treatment for delinquent payments under Article 28-7 of the same Act; P. Deficit disposal under Article 29 of the same Act; Q. Provision of materials on delinquent payments and deficit disposal under Article 29-2 of the Act; R. Permission for wage claim guarantee work and changes therein, processing of a report of the discontinuation or change of such work, and cancelation of such permission under paragraphs (2) through (5) of Article 33 of the same Act; - 15 - S. Notification of the payment of charges and other levies under Article 34 of the same Act; T. Collection of additional charges and arrears under Article 35 of the same Act; U. Provision of collection expenses and other subsidies under Article 37 of the same Act; and V. Extension of payment deadlines under Article 39 of the same Act. 8. Request for a report or submission of related documents (limited to cases where such a request is necessary for doing entrusted work) under Article 19 of the Act; 8-2. Request for cooperation (limited to cases where such a request is necessary for doing entrusted work) under Article 19-2 of the Act; 9. Inspection and questioning (limited to cases where it is necessary for doing entrusted work) under Article 20 of the Act; 10. Preparation, keeping, and inspection of cards about charges and other levies, and issuance of a certificate under Article 17; 11. The authorities described in the following items under the provisions of the Enforcement Decree of the Insurance Premium Collection Act which apply mutatis mutandis pursuant to Article 21: A. Approval of the payment of charges by proxy, receipt of a report of changes, and cancellation of such approval under Article 10 of the Enforcement Decree of the same Act; B. Receipt of a report on the entrustment of wage claim guarantee work and on the cancellation thereof under Article 45 (3) of the Enforcement Decree of the same Act; and C. Hearing under Article 49 of the Enforcement Decree of the same Act 12. Payment of charges, etc., into the Fund under Article 88 (1) of the Enforcement Decree of the Industrial Accident Compensation Insurance Act which applies mutatis mutandis pursuant to Article 22 Article 25 (Report of the Corporation) The Korea Workers' Compensation & Welfare Service entrusted with authority in accordance with Article 24 (2) shall report the monthly payment status of subrogated payment - 16 - under Article 6 of the Act and the monthly collection status of returned amounts under Article 13 of the Act to the Minister of Labor by the last day of the following month. Article 26 (Imposition and Collection of Fines for Negligence) (1) The head of a local labor office shall, when imposing a fine for negligence pursuant to Article 26 (2) of the Act, investigate and confirm the act of violation concerned, specify the type of violation, the amount of the fine for negligence and the payment deadline in writing, and then notify the person subject to the imposition of the fine of negligence that he/she should pay it. (2) The head of a local labor office shall, if he/she intends to impose a fine for negligence pursuant to paragraph (1), set a period of ten days or more and provide an opportunity for the person subject to the imposition of the fine for negligence to state their opinions orally or in writing (including electronic documents) during that period. In this case, if there are no opinion stated until the set deadline, it shall be considered that there is no opinion. <Amended by Presidential Decree No. 18312, Mar. 17, 2004> (3) The head of a local labor office shall take into account the motives and consequences of an act of violation in determining the amount of a fine for negligence, and the criteria for the imposition are shown in Table 3. (4) The procedures for the collection of a fine for negligence shall be prescribed by the Ordinance of the Ministry of Labor. Addenda <Presidential Decree No. 20875, Jun. 25, 2008> Article 1 (Date of Enforcement) This Decree shall enter into force on July 1, 2008. Articles 2 through 13 Omitted. Article 14 (Revision of Other Laws) (1) through (9) Omitted. (10) Parts of the Enforcement Decree of the Wage Claim Guarantee Act shall be amended as follows : "Articles 6 through 8 and Articles 10 through 12 of the Enforcement Decree of the Industrial Accident Compensation Insurance Act" in the former part of Article 3 (2) shall be changed to "Articles 5 through 7 and Articles 9 through 11 of - 17 - the Enforcement Decree of the Industrial Accident Compensation Insurance Act", and "in the proviso of Article 6 (1) of the Enforcement Decree of the same Act", "Article 7 (2) of the Enforcement Decree of the same Act" and "'the Vice Minister of Labor' and 'members and expert members' in Article 11 as 'a public official of Grade III in charge of wage claim guarantee work or a general public official in the Senior Civil Service' and 'members'" in the latter part of the same paragraph shall be changed to "in the proviso of Article 5 (1) of the Enforcement Decree of the same Act", "Article 6 (2) of the Enforcement Decree of the same Act", and "'members and members of the expert committee' in Article 10 of the Enforcement Decree of the same Act as 'members'", respectively. "Subparagraph 2 of paragraph (1) and the former part of subparagraph (2) of Article 83, Article 84, Article 85, Article 86, and Articles 88 through 92 of the Enforcement Decree of the Industrial Accident Compensation Insurance Act" in the former part of Article 22 shall be changed to "subparagraph 2 of paragraph (1) of Article 86, the former part of subparagraph (2) of the same Article, Articles 87 through 89 and Articles 91 through 95 of the Enforcement Decree of the Industrial Accident Compensation Insurance Act", and "'industrial accident compensation insurance fund account' in the Enforcement Decree of the same Act", "Article 85 (2) and Article 88 (2) of the Enforcement Decree of the same Act", and "industrial accident compensation insurance fund under Article 83 of the Act" shall be changed to "industrial accident compensation insurance and prevention fund account' in the Enforcement Decree of the same Act", "Article 88 (2) and Article 91 (2) of the Enforcement Decree of the same Act", and "industrial accident compensation insurance and prevention fund under Article 95 of the Act", respectively. "Article 84 of the Industrial Accident Compensation Insurance Act" in Article 22-2 shall be changed to "Article 99 of the Industrial Accident Compensation Insurance Act". "Article 85 (1) of the Enforcement Decree of the Industrial Accident Compensation Insurance Act" in Article 24 (2) 12 shall be changed to "Article 88 (1) of the Enforcement Decree of the Industrial Accident Compensation Insurance Act". (11) Omitted. Article 15 Omitted. - 18 - [Table 1] Method of Calculation of the Number of Ordinarily Employed Workers (Relating to Article 5 (1)) 1. The number of the ordinarily employed workers shall be calculated by dividing the sum of the number of workers employed at the last day of every month of the previous year by the number of working months of the previous year. However, the number of the ordinarily employed workers for an employer whose business started during the year concerned and wage claim guarantee relations was established shall be the number of the workers used as of the establishment date of the wage claim guarantee relations. 2. Notwithstanding the above calculation methods, in case of difficulty in calculating the number of the ordinarily employed workers in construction industry, the following method shall be used. - Construction amount of the previous year×ratio of labor of the previous year/monthly average wage in construction industry of the previous year×the number of working months of the previous year A. The term ßÖconstruction amountß×refers to the amount calculated by excluding the construction amount of the work legally contracted out according to the Act on the Construction Industry and other related laws from the total construction amount of the employer concerned. B. The term ßÖratio of laborß×refers to the one announced by the Minister of Labor in accordance with the Article 62(2) of the Industrial Accident Compensation Insurance Act. C. The term ßÖmonthly average wage in construction industryß× refers to the one announced by the Minister of Labor in accordance with subparagraph 5 of Article 69(5) of the Enforcement Decree of the Employment Insurance Act. [Table 2] : Deleted - 19 - [Table 3] Criteria for Imposition of Fine for Negligence (relating to Article 26 (3)) (Unit : 10,000 Won) Violations Related provisions in the Act Amount 1. When refusing to provide documents as prescribed in Article 11(2) of the Act without justifiable reasons subparagraph 1 of Article 26(1) of the Act 50 2. When failing to respond to the request for report or submission of the related documents pursuant to Article 19 of the Act or when making a false report or submitting false documents subparagraph 2 of Article 26(1) of the Act 80 3. When refusing to answer the questions pursuant to Article 20(1) of the Act without justifiable reasons subparagraph 3 of Article 26(1) of the Act 50 4. When refusing, interfering with or evading the inspection pursuant to Article 20(1) of the Act subparagraph 3 of Article 26(1) of the Act 80 Note : The Minister of Labor may, by taking into account the motives and the results of the violations, increase or reduce the fines for negligence within 1/2 of the fines for negligence levied. However, the increase may not exceed one million Won in total fines for negligence.   <hr class="make-database"> AsianLII: <a href="/asianlii/copyright.html" class="make-database">Copyright Policy</a> | <a href="/asianlii/disclaimers.html" class="make-database">Disclaimers</a> | <a href="/asianlii/privacy.html" class="make-database">Privacy Policy</a> | <a href="/asianlii/feedback.html" class="make-database">Feedback</a> URL: http://www.asianlii.org/kr/legis/laws/edotwcga359 </body> </html>