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EMPLOYMENT SECURITY ACT

EMPLOYMENT SECURITY ACT

Wholly Amended by Act No. 4733, Jan. 7, 1994

Amended by Act No. 5103, Dec. 29, 1995

Act No. 5478, Dec. 24, 1997

Act No. 5512, Feb. 20, 1998

Act No. 5884, Feb. 8, 1999

Act No. 7196, Mar. 22, 2004

Act No. 7825, Dec. 30, 2005

Act No. 8249, Jan. 19, 2007

Act No. 8372, Apr. 11, 2007

Act No. 9040, Mar. 28, 2008

CHAPTER

General Provisions

Article 1 (Purpose)

The purpose of this Act is to strive for the employment security of every worker, and to contribute to development of the national economy, by giving him an opportunity to find employment in which he may develop and display his own ability, and supporting an expansion of the work force required for the industry.

Article 2 (Equal Treatment)

No person shall be treated discriminately in a job placement, vocational guidance, or decision on employment relation, for reasons of sex, age, religion, physical conditions, social status, marriage, etc. Article 3 (Tasks of Government)

(1) In order to attain the purpose as prescribed in Article 1, the Government shall carry out any of the following tasks:

1. Matters concerning a proper adjustment of demand and supply of work force;

2. Matters concerning domestic and overseas placement services for job offerers and seekers;

3. Matters concerning vocational guidance for job seekers;

4. Matters concerning collection, arrangement, or furnishing of information on employment;

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5. Matters concerning assistance in vocational training or reemployment for job seekers; and

6. Matters concerning guidance and inspection of the service of job placement, the service of furnishing of employment information, recruitment or supply of labor.

(2) The government may conduct services related to duties prescribed in subparagraph 2 through 5 in paragraph (1) by being in association with those who fall under any of the following subparagraphs or entrusting those who fall under any of the following subparagraphs;

1. A person who conducts free placement service pursuant to Article 18;

2. A person who conducts fee-charging placement service pursuant to Article 19;

3. A person who conducts service furnishing employment information pursuant to Article 23; and

4. Other professional institutions related to duties prescribed in subparagraph 2 through 5 in paragraph (1) determined by the Presidential Decree.

(3) The expenses needed for conducting the services prescribed in paragraph (2) may be supported from the general accounting or Employment Insurance Fund under the Employment Insurance Act according to the supporting subject and method determined by the Presidential Decree. Article 4 (Definition)

For the purpose of this Act,

1. the term ßÖemployment security officeß×means a local labor administrative agency carrying out the employment security services, such as job placement, vocational guidance, etc.;

2. the term ßÖjob placementß×means to help, upon request, both job offerer and seeker to a conclusion of an employment contract;

3. the term ßÖvocational guidanceß×means a vocational aptitude test, furnishing of employment information, vocational counselling, practical exercise, invitation, advice, or other guidance as to employment, which are rendered to facilitate a choice of job suitable to the ability and aptitude of a person who desires to find an employment;

4. the term ßÖfree placement serviceß×means a job placement - 3 -

service rendered without receiving any fee, membership fee, or any money or valuables;

5. the term ßÖfee-charging placement serviceß×means a job placement service other than the free job placement service;

6. the term ßÖrecruitmentß×means that a person who desires to employ workers, invites a person who desires to find an employment, to be in his employment, or has another person invite so; and

7. The term ßÖlabor supply businessß×means to have another person use labor pursuant to a supply contract. However, this excludes worker dispatch business as prescribed by subparagraph 2 of Article 2 of the Act relating to Protection, etc., for Dispatched Workers.

Article 4-2 (Domestic Placement Service, etc., by Local Governments) (1) The heads of local governments may, if necessary, provide domestic placement services, placement direction, and services furnishing employment information for both a job offerer and a job seeker.

(2) The heads of local governments may place expert human resources needed for the performance of tasks under paragraph (1).

(3) If it is necessary in consideration of smooth performance of tasks as prescribed by Article 3, the Minister of Labor may, in consultation with the heads of local governments, provide domestic placement services, placement direction, and services furnishing employment information for both a job offerer and a job seeker.

(4) The provisions of Chapter II(excluding Article 5 and 7) shall be applicable to the cases where the heads of local governments provide domestic placement service, etc., for a job offerer and a job seeker as provided by paragraph (1). Article 4-3 Deleted. Article 4-4 (Private Job Counsellor)

(1) The Minister of Labor may place private job counsellors (hereinafter referred to as ßÖprivate job counsellorsß×) other than public officials who undertake duties such as job placement, vocational guidance, furnishing of employment information, etc. - 4 -

at the Employment Security Office.

(2) Placement standards and other necessary matters concerning private job counsellors shall be determined by the Ordinance of the Ministry of Labor.

Article 4-5 (Authorization for Institutions Excellent in Employment Support Service)

(1) The Minister of Labor may authorize an institution which falls under any subparagraphs of paragraph 2 of Article 3 and contributes to the improvement of employment support service for a job offerer or seeker through job placement, furnishing of employment information, etc., with equipment and facilities conveniently used by a job offerer or seeker as an institution excellent in employment support service. (2) The Minister of Labor may entrust the authorization tasks for institutions excellent in employment support service prescribed in paragraph (1) to a professional institution determined by the Presidential Decree.

(3) The Minister of Labor may provide necessary support for an institution authorized as an institution excellent in employment support service pursuant to paragraph (1) by allowing the institution before other institutions to participate in an association service or a service that can be entrusted and conducted, etc. pursuant to paragraph 2 of Article 3. (4) The Minister of Labor may cancel the authorization, if a person authorized as an institution excellent in employment support service pursuant to paragraph (1) falls under any of the following subparagraphs:

1. In case an authorization is obtained in false or other fraudulent ways;

2. In case there is no continuous business performance for a year or more without a justifiable reason;

3. In case the institution does not meet the authorization standards under paragraph (5); and

4. In case a person authorized as an institution excellent in employment support service closes his business.

(5) Necessary matters needed for authorization standard, methods, etc. of an institution excellent in employment support service shall be determined by the Ordinance of the Ministry of Labor.

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CHAPTER

Job Placement, Vocational Guidance, etc., of

Employment Security Office

SECTION 1

General Provisions

Article 5 (Organ in charge of Services)

Part of services set forth in Article 3 shall be carried out by the head of the employment security office.

Article 6 (Securing of Specialty of Responsible Personnel) (1) The Government shall make efforts to secure a specialty of the responsible personnel, such as training, assignment, etc. of public officials having exclusive responsibility, so as to carry out technically the services to be performed by the head of the employment security office, such as job placement, vocational guidance, etc.

(2) The Minister of Labor may nominate vocational guidance officers to take charge of the job placement, vocational guidance, etc., from among public officials under his jurisdiction. (3) Matters concerning the qualification, etc. for the vocational guidance officer as referred to in paragraph (2), shall be determined by the Minister of Labor.

Article 7 (Cooperation of Head of Shi/ Kun/ Ku)

The head of Shi (limited to the Shi where the Ku are not established) /Kun/Ku shall, upon request of the head of the employment security office, cooperate with respect to any of the following services:

1. Identity certification of a job offerer or seeker, and reply to other inquiries about him; and

2. To relay and publicize information on the job offering and seeking.

SECTION 2

Job Placement

Article 8 (Application for Help by Job Offerer)

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The head of the employment security office shall not refuse to accept an application for help filed by a job offerer, except in any of the following cases:

1. Where the contents of such application are contrary to the provisions of Acts and subordinate statutes;

2. Where the wages, working hours and other working conditions specified in the contents of such application, are deemed remarkably improper compared with the normal working conditions; and

3. Where the job offerer refuses to specify the conditions under which he is to offer the job.

Article 9 (Application for Jobs)

(1) The head of the employment security office shall not refuse to accept an application for jobs, except in cases where the contents of such application are contrary to the provisions of Acts and subordinate statutes.

(2) In cases where a job seeker requests it, or it is deemed necessary and the job seeker has agreed thereto, the head of the employment security office may take a vocational counselling, or conduct a vocational aptitude test.

Article 10 (Specification, etc., of Working Conditions) Upon filing an application for workers with the head of the employment security office, the job offerer shall specify the contents of the work for which job seekers are to be employed, and the working conditions, and the head of the employment security office shall specify them to the job seekers. Article 11 (Principles of Job Placement)

(1) The head of the employment security office shall make efforts to enable any job seeker to find employment suitable to his ability, and to enable any job offerer to find job seekers suitable for his job offering conditions.

(2) The head of the employment security office shall make efforts to enable any job seekers to find employment in a commutable area as far as possible.

Article 12 (Job Placement through Wide Area)

If it is impossible to have a job seeker find employment suitable to his desire and ability in a commutable area, or to fill up a job seeker or the number of job seekers whom the job offerer hopes to employ, the head of the employment security office may furnish the job placement services through a wide - 7 -

area.

Article 13 (Intermediation for Training)

If it is deemed necessary to have any job seeker receive any vocational training in order to promote his employment, the head of the employment security office may help the job seeker in receiving vocational Skills development training in vocational Skills development training institutions, etc., as prescribed by the Employee Skills Development Act.

SECTION 3

Vocational Guidance

Article 14 (Implementation of Vocational Guidance) (1) The head of the employment security office shall implement vocational guidance for those who desire to find new employment, who are handicapped mentally or physically, and who require any special guidance as to employments.

(2) Matters necessary for the method, procedure, etc., of the vocational guidance as referred to in paragraph (1), shall be determined by the Minister of Labor.

Article 15 (Cooperation of Head of Employment Security Office with Heads of Schools)

The head of the employment security office shall, if necessary, cooperate in any free placement services furnished by the heads of schools as prescribed by the Education Act, and by the heads of public vocational training facilities as prescribed by the Elementary and Secondary Education Act, and Higher Education Act, and by the heads of public vocational Skills development training facilities as prescribed by the Employee Skills Development Act and he may, upon their requests, give vocational guidance to students or vocational trainees. SECTION 4

Furnishing of Employment Information

Article 16 (Collection, Furnishing, etc. of Employment Information) - 8 -

(1) The head of the employment security office shall collect on occasion or periodically various employment information in the area, and rearrange such collected information, and furnish it positively to job offerers and seekers, and other persons who require such employment information.

(2) If the head of the employment security office judges as a result of analyzing employment information collected, that there is a sudden change in the demand and supply of labor in the area, or any remarkable unbalance has taken place, he shall set up and drive forward an adequate measure.

Article 17 (Development of Job Offering and Seeking) The head of the employment security office shall make efforts to develop the job offering and seeking, for the purpose of expanding the opportunity for job seekers to find employment, and supporting an expansion of an insufficient work force for the industry.

CHAPTER

Services of Job Placement, Furnishing of Employment Information, Recruitment or Supply of Labor Conducted by those Other Than Head of Employment Security Office SECTION 1

Services of Job Placement and Furnishing of

Employment Information

Article 18 (Free Placement Service)

(1) Free placement service is classified into domestic and overseas free placement service, on the basis of the place where a worker, the object of job placement service, desires to find employment. Any person who desires to conduct a domestic free placement service, shall report to the City Mayors, County Chiefs, or heads of Ku Administrative offices(limited to the heads of Ku Administrative offices of Self-Governing Ku), and any person who wants to conduct an overseas free placement service shall report to the Minister of Labor. This provisions shall also apply in cases where he changes any of permitted matters.

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(2) Any person who desires to conduct a free placement service as prescribed by the provision of paragraph (1) shall be either a nonprofit juristic person or a public interests organization under the Presidential Decree.

(3) Matters the items and procedure of reporting, and other necessary matters on reporting as prescribed by the provision of paragraph (1) shall be determined by the Presidential Decree

(4) Notwithstanding the provision of paragraph (1), the free placement service may be conducted without reporting in those cases which fall under any of the following subparagraphs;

1. Placement services conducted by the Korea Manpower Agency pursuant to the Korea Manpower Agency Act;

2. Placement services for the disabled conducted by Employment Promotion Agency for the Disabled pursuant to the Employment Promotion and Vocational Rehabilitation of Disabled Persons Act;

3. Placement services, for students in school, graduates, trainees or persons who have completed the prescribed course, conducted by heads of each school as prescribed in Education- related Act, or by heads of any public vocational Skills development training facilities as prescribed in the Employee Skills Development Act; and

4. Placement services, for disability benefit recipients, conducted by the Korea Labor Welfare Corporation as prescribed in the Industrial Accident Compensation Insurance Act.

(5) Deleted.

(6) Deleted.

(7) Deleted.

(8) Deleted.

Article 19 (Fee-Charging Placement Service)

(1) The permission for a fee-charging placement service shall be granted by classifying it into domestic and overseas fee-charging placement services, on the basis of the place where a worker who is the object of placement, desires to find employment. In this case, a person who desires conduct a domestic fee-charging placement service shall register to the City Mayors County Chiefs or heads of Ku Administrative offices, and a person who desires to - 10 -

conduct an overseas fee-charging placement service shall register to the Minister of Labor. This provision shall also apply in cases where he changes any of the permitted matters.

(2) Deleted.

(3) Deleted.

(4) Deleted.

(5) Deleted.

(6) A person who conducts the fee-charging placement service after being registered as referred to in paragraph (1) shall not receive any money or similar valuables other than the fee as determined and notified by the Minister of Labor

(7) In cases where the Minister of Labor desires to determine the fee as referred to in paragraph (6), he shall go through a deliberation of the Employment Policy Council(hereinafter referred to as the ßÖEmployment Policy Councilß×) as provided by the Basic Employment Policy Act.

(8) The personal and material requirements as a

registration standard of the fee-charging placement services and other matters necessary for the fee-charging placement services as referred to in paragraph (1) shall be determined by the Presidential Decree.

(9) Any person who conducts, and those who are engaged in, the fee-charging placement services with the registration as referred to in paragraph (1), shall observe such matters as determined by the Presidential Decree.

Article 20 (Restriction on Registration for the Fee-charging Placement Service)

In case a year has not elapsed since the registration for the fee-charging placement service was cancelled as prescribed in Article 36, the registration for the fee-charging placement service shall not be allowed at the same business location.

Article 21 (Prohibition of Lending Title)

A Person who has registered for the fee-charging placement service under Article 19 (1) shall not have another person conduct the placement service using his name or trade name, or lend - 11 -

the registration certificate. Article 21-2 (Prohibition of Prepayment)

Any person who conducts, and those who are engaged in, the fee-charging services after being registered as referred to in paragraph (1) of Article 19 shall not receive the prepayment from a job offerer in order to give it to a job seeker.

Article 21-3 (Restriction on Placement Service for Minors) (1) Any person who conducts, and those who are engaged in, the free placement services or the fee-charging placement services as referred to in Article 18 and 19 (hereinafter referred to as ßÖjob placement service providers, etc. in this Article) shall confirm the age of a job seeker, and shall get the employment agreement from a person in parental authority or a guardian in case of placing those aged less than 18.

(2) Job placement service providers, etc. shall not place job-seekers aged less than 18 in business place of the occupations prohibited the use of those aged less than 18 pursuant to Article 63 of the Labor Standards Act. (3) Job placement service providers, etc. shall not place job-seekers who are juveniles pursuant to subparagraph 1 of Article 2 of the Juvenile Protection Act in entertainment establishments harmful to juveniles as prescribed in subparagraph 5 of Article 2 of the Act.

Article 22 (Those engaged in Fee-Charging Placement Service, etc.) (1) Any person who offers the fee-charging placement service with a registration as prescribed in paragraph (1) of Article 19 shall not employ those who fall under subparagraphs 1, 3 or 4 of Article 38.

(2) Any person who offers the fee-charging placement service with a registration as prescribed in paragraph (1) of Article 19 shall have one or more vocational counsellors by place of service, who are qualified as prescribed by the Ordinance of the Ministry of Labor.

(3) No person of those engaged in the fee-charging placement - 12 -

service, who is not the vocational counsellor as referred to in paragraph (2), shall not take charge of affairs concerning the job placement. Article 23 (Report on Service furnishing Employment Information) (1) Any person who desires to carry on it as principal business to furnish employment information, such as information on job offering and seeking, by means of newspapers, magazines, other publications, wire or wireless broadcasts or com puter telecommunications, etc., (Excluding a person who offers the free placement service pursuant to Article 18 and a person who offers the fee-charging placement service pursuant to Article 19) shall report it to the Minister of Labor. This provision shall also apply in cases where he changes any of the reported matters.

(2) Matters to be reported, procedure of report, and other matters necessary for the report under paragraph (1), shall be determined by the Presidential Decree.

Article 24 Deleted. Article 25 (Matters to be observed by Those furnishing Employment Information)

Any person who conducts the service furnishing employment information after making the report as prescribed in paragraph (1) of Article 23, shall observe such matters as determined by the Presidential Decree.

Article 26 (Prohibition of Side Business)

No person who carries on the food and entertainment business as prescribed in Article 21 of the Food Sanitation Act and the accommodation business as prescribed in Article 2 of the Public Health Control Act may render the free job placement service or the fee-charging job placement service.

Article 27 (Applicable Provisions)

The provisions of Articles 8 through 12 shall be applicable to the free or fee-charging placement services as prescribed in Article 18 or 19.

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SECTION 2

Recruitment of Workers

Article 28 (Recruitment of Workers)

(1) Any person who desires to employ workers, may recruit them freely by way of an advertisement in newspapers, magazines, or other publications, or distribution of papers, etc. (2) Deleted.

Article 29 (Entrusted Recruitment)

Deleted.

Article 30 (Recruitment of Overseas Workers)

(1) Any person who recruited workers to be employed overseas shall report it to the Minister of Labor.

(2) Matters necessary for the report as referred to in paragraph (1) shall be determined by the Presidential Decree. Article 31 (Recommendation on Improvement of Recruitment Method, etc.)

(1) If it is deemed necessary for establishing a sound order of recruitment, the Minister of Labor may recommend to improve the recruitment method, etc., with respect to the recruitment of workers as prescribed in Article 28 or 30. (2) If the Minister of Labor desires to make a recommendation as referred to in paragraph (1), he shall go through a deliberation of the Employment Policy Council.

(3) Matters necessary for the recommendation as referred to in paragraph (1) shall be determined by the Presidential Decree. Article 32 (Prohibition of Receipt of Money, etc.) Any person who desires to employ workers, and who is engaged in such recruitment, shall not receive any money, goods or interest from applicants in connection with such recruitment, regardless of the pretext thereof. SECTION 3

Labor Supply Business

Article 33 (Labor Supply Business)

(1) No person shall carry on a labor supply business without - 14 -

obtaining the permission of the Minister of Labor. (2) The valid period of the permission of a labor supply business shall be three years, and those who intend to continuously carry on a labor supply business after the expiration of the valid period shall receive a renewal permission determined by the Ordinance of the Ministry of Labor. In this case, the valid period of a renewal permission shall be three years from the day when the valid period of the prior-renewal permission expires.

(3) The object of and requirements for the permission as referred to in paragraph (1) shall be determined by the Presidential Decree. CHAPTER

Supplementary Provisions

Article 34 (Prohibition of False Job Offering Advertisement, etc.) (1) No person who renders or carries on a job placement service, or worker recruitment or supply business as prescribed in Articles 18, 19, 28, 30, or 33, or who is engaged in such service or business, shall make a false job offering advertisement, or suggest a false job offering condition.

(2) Matters necessary for the scope, etc. of any false job offering advertisement as referred to in paragraph (1), shall be determined by the Presidential Decree.

Article 34-2 (Security on Liability for Damages)

(1) Any person who carries on the fee-charging placement service with the registration as prescribed in Article 19 (1), or the labor supply business (limited to a business supplying labor to foreign countries) with the permission as prescribed in Article 33 (1), shall join the guaranteed insurance or the mutual aid referred to in paragraph (2), or deposit money with a financial institution as prescribed by the Presidential Decree, for the purpose of securing the liability for compensation for any damages which he infects on any worker or person who has a worker introduced or supplied, on purpose or negligently in carrying out the job placement or labor supply.

(2) The association of businessmen referred to in Article 45-2 - 15 -

may carry on a mutual-aid business under the conditions determined by the Minister of Labor with a view to securing the liability of compensation for damages under paragraph (1).

(3) When the association of businessmen referred to in Article 45-2 intends to carry on a mutual-aid business under paragraph (2), it shall establish mutual-aid regulations and obtain the approval of the Minister of Labor therefor. The same shall apply when it intends to modify the mutual-aid regulations.

(4) The mutual-aid regulations referred to in paragraph (3) shall prescribe the matters necessary for the operation of the mutual-aid business, such as the scope of mutual-aid business, the contents of mutual-aid contract, the mutual-aid amount and premium, the liability reserve fund to appropriate to mutual-aid amount, etc.

Article 35 (Report on Discontinuance of permitted or Reported Service)

If a person who has made a report, or is permitted or registered under Article 18, 19, 23(1), or 33 discontinues his service, he shall report it to the Minister of Labor, City Mayors, County Chiefs or heads of Ku Administrative office, within 7 days from the date of discontinuance.

Article 36 (Cancellation, etc., of Registration, Permission, etc.) (1) It is deemed that a person who has made a report, or is permitted, or registered under Article 18, 19, 23(1) or 33 might inflict any damage on the public interest, and the case falls under any of the following subparagraphs, the Minister of Labor, city mayors, county chiefs, or heads of Ku Administrative offices may have him suspend his service or recruitment, or cancel the registration or the permission, with a fixed period not exceeding six months. However, if the case falls under subparagraph 2, registration or permission shall be cancelled.

1. When making a report, registration and permission in - 16 -

false or other fraudulent ways;

2. When falling under any of the subparagraphs of Article 38; and

3. When violating this Act or an order under this Act. (2) If the cause to cancel the registration or the permission falls under paragraph (5) of Article 38, the Minister of Labor, City mayors, county chiefs, or heads of Ku Administrative offices shall allow in advance a period of one or more months required for replacement of officers concerned. (3) The criteria for the suspension or cancellation as referred to in paragraph (1) shall be determined by the Ordinance of the Ministry of Labor.

Article 36-2 (Status Succession, etc. of a Businessman) (1) In case a person who has reported the discontinue of his service pursuant to Article 35 makes a report, or is registered or permitted under Article 18, 19, 23 or 33 within six months, (hereinafter referred to as "to make a report again, etc." in this Article), a businessman who makes a report again, etc. shall be regarded as the same person before reporting the discontinue of his service.

(2) For a businessman who makes a report again, etc. pursuant to paragraph (1), the effects of an administrative measure for the businessman before reporting the discontinue of his service shall succeed.

(3) The Minister of Labor or the head of Si/Gun/Gu may take a measure pursuant to Article 36 for a businessman who makes a report again, etc. pursuant to paragraph (1) on the ground of the act of violation before reporting the discontinue of his service.

Article 36-3 (Hearing)

In case the Minister of Labor, City Mayors, County Chiefs, or heads of Ku Administrative offices desires to order a cancellation of registration or permission under Article 36, he shall conduct a hearing. Article 37 (Measure of Closure)

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(1) If a person operates any service without making the report or getting the registration, or obtaining the permission, as prescribed in Article 18, 19. 23(1) or 33, or continues to carry on any service even after he received the order of suspension or cancellation as prescribed in paragraph (1) of Article 36, the Minister of Labor, City Mayors, County Chiefs, or heads of Ku Administrative offices may have any public official concerned take any of the following measures:

1. Removal and deletion of a signboard or other business marks of the service place or office concerned;

2. Posting up a bulletin to inform that the service is illegal; and

3. Sealing to make any person unable to use any equipment or facilities indispensable for the operation of the service. (2) Any public official concerned who takes the measures as referred to in paragraph (1), shall carry with himself a certificate indicating his authority, and show it to the interested person. Article 38 (Disqualification)

A person who falls under any of the following subparagraphs, may not report, register or obtain permission for a placement service or labor supply service:

1. A person who is a minor, incompetent, quasi-incompetent, or is declared bankrupt and not yet reinstated;

2. A person who is sentenced to a penalty heavier than imprisonment without prison labor, and for whom the execution of such sentence is not terminated, or two years have not elapsed since non-execution became definite;

3. A person who is sentenced to a penalty heavier than a fine, for violation of the Act, the Act on the Punishment of Procuring Prostitution and Associated Acts, the Minor Protection Act, the Act on the Regulation over Amusement Business Affecting Public Morals or the Juvenile Protection Act, or for violation of the Seaman Act by any act related to placement service, and for whom three years have not elapsed, after the execution of such sentence is terminated, or non-execution thereof became definite;

3-2. A person who is sentenced to a stay of execution after - 18 -

being sentenced to a penalty heavier than imprisonment without prison labor, and is in the period of suspension;

4. A person for whom three years have not elapsed since the permission for the concerned service was cancelled under Article 36; and

5. Juristic person any of whose officers falls under any of subparagraphs 1 through 4.

Article 39 (Keeping of Books, etc.)

Any person who has registered as prescribed by Article 19 or who is permitted under Article 33, shall keep books, ledgers and other necessary documents, under the conditions as prescribed by the Ordinance of the Ministry of Labor.

Article 40 (Education and Training for Those engaged in Placement Service)

Deleted.

Article 40-2 (Education and Training for Persons Performing Job Placement Service, etc.)

(1) The Minister of Labor or city mayors, county chiefs, or heads of Ku Administrative offices shall conduct education and training for a person who performs job placement service and the employees thereof with a view to improving professional knowledge and professional ethical awareness required to conduct job placement, job counseling, etc.

(2) The contents and method of, and other necessary matters for the education and training referred to in paragraph (1) shall be determined by the Ordinance of the Ministry of Labor.

Article 41 (Report and Inspection)

(1) The Minister of Labor, City Mayors, County Chiefs, or heads of Ku Administrative offices may, if necessary, order any person who offers a placement service with a permission, a registration, or after reporting as prescribed in Articles 18, 19, 23(1) or 33 to submit data or make a report required for enforcement of this Act. (2) The Minister of Labor, City Mayors, County Chiefs, or heads of Ku Administrative offices may, if necessary for the confirmation, etc. of violating fact, have any public official - 19 -

concerned have access to a business place, related business place, and other facilities to which this Act applies in order to inspect the situation of business, books or other things, and have him ask any questions to interested persons.

(3) In case the Minister of Labor, City Mayors, County Chiefs, or heads of Ku Administrative offices conducts inspection under paragraph (2), he shall notify in advance the inspected person of the inspection plan on the date, reason, contents, etc. of the inspection, except in a case where it is urgent, or in the case of the advance notification, it is recognized that destruction of evidence, etc. could obstruct the attainment of inspection goal.

(4) Any public official who has access to any business place and conducts any inspection under paragraph (2), shall carry with himself a certificate indicating his authority, and show it to the interested person.

Article 41-2 (Request for Cooperation in Data)

The Minister of Labor, City Mayors, County Chiefs, or heads of Ku Administrative offices may, if deemed as necessary, request the head of related government organization for data required for enforcement of this Act. Article 42 (Duty to keep Secret)

No person who has participated or participates in a placement service or recruitment of labor, shall divulge any secret concerning workers or employers, which he has learned in the course of his duties, except in a case where it is disclosed by the direction of the Minister of Labor.

Article 43 (Fee)

Any person who desires to register for the fee-charging placement service as prescribed in Article 19, shall pay the fee under the conditions as prescribed by the Ordinance of the Ministry of Labor. This provisions shall also apply in cases where he modifies any of the registered matters.

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Article 44 (Delegation of Authority)

The authority of the Minister of Labor as prescribed by this Act, may be delegated partially to the head of the employment security office or the Special Metropolitan City Mayor, Metropolitan City Mayor, or Provincial Governor, under the conditions as prescribed by the Presidential Decree.

Article 45 (Subsidy of National Treasury)

The Minister of Labor may subsidize the whole or part of expenses for the free placement service as prescribed in Article

18. Article 45-2 (Establishment, etc. of the Association of Businessmen) (1) Any person who carries on business after reporting, registering, or obtaining permission under Article 18, 19, 23 or 33 may establish an association of businessmen for the sound development, etc. of job placement, job information offering, or labor supply business in accordance with the Presidential Decree.

(2) The association of businessmen referred to in paragraph (1) shall be a corporation.

(3) Except for the special provisions prescribed in the Act, the provisions regarding incorporated association in the Civil Act shall apply mutatis mutandis to the association of businessmen referred to in paragraph (1).

Article 45-3 (Prize Money)

(1) The Minister of Labor, City Mayors, County Chiefs, or heads of Ku Administrative offices may provide prize money within the range of budget for a person who makes a report on or bring an accusation a person, to an investigation agency, who violates Article 34 or falls under subparagraph 1 and 2 of paragraph (1) of Article 46.

(2) Other necessary matters concerning the provision of prize money shall be determined by the Ordinance of the Ministry of Labor.

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CHAPTER

Penal Provisions

Article 46 (Penal Provisions)

(1) Any person who falls under any of the following subparagraphs, shall be punished by imprisonment for not more than seven years, or a fine not exceeding thirty million won:

1. A person who carries on a placement, recruitment or supply of labor, by means of violence, threat, detention, or unlawful restraint against mental or physical freedom; and

2. A person who carries on a job placement, labor recruitment or supply, with the intention to place another person in a job engaged in the sexual traffic and other obscene act referred to in subparagraph 1 of paragraph (1) of Article 2 of the Act on the Punishment of Acts of Arranging Sexual Traffic.

(2) Any attempt to commit the offense as referred to in paragraph (2) shall be punished.

Article 47 (Penal Provisions)

Any person who falls under any of the following subparagraphs, shall be punished by imprisonment for not more than five years, or a fine not exceeding twenty million won:

1. A person who carries on the fee-charging placement service or labor supply business without obtaining the permission or the registration as prescribed in Article 19 (1) or 33 (1);

2. A person who has registered as prescribed in paragraph (1) of Article 19, or who has obtained the permission as prescribed in paragraph (1) of Article 33, by a false or other unlawful way;

3. A person who violates the provisions of Article 21 and the other party;

3-2. A person who violates the provisions of paragraph (2) and (3) of Article 21-3;

4. A person who receives any money, goods or other interest, in contravention of the provisions of Article 32; and

5. A person who makes false job offering advertisements, or - 22 -

presents false job offering conditions, in contravention of the provisions of Article 34.

Article 48 (Penal Provisions)

Any person who falls under any of the following subparagraphs, shall be punished by imprisonment for not more than one year, or a fine not exceeding five million won:

1. A person who carries on the free placement service or business furnishing employment information, without making a report as prescribed in paragraph (1) of Article 18 or paragraph (1) of Article 23;

2. A person who makes a report as prescribed in paragraph (1) of Article 18 or paragraph (1) of Article 23, by a false or other unlawful way;

3. A person who receives any money other than the fee as notified publicly by the Minister of Labor, in contravention of the provisions of Article 19 (6);

3-2. A person who violates the provisions of Article 21-2;

4. A person who takes charges of affairs as to the job placement, in violation of the provisions of paragraph (3) of Article 22;

5. Deleted.

6. A person who carries on a business during a suspension period as prescribed in Article 36; and

7. Deleted.

8. A person who has divulged any secret in contravention of the provisions of Article 42.

Article 48-2 (Penal Provisions)

Any person who violates the provisions of paragraph (1) of Article 21-3 shall be punished by a fine not exceeding five million won.

Article 49 (Fine for Negligence)

(1) Any person who falls under any of the following subparagraphs, shall be punished by a fine for negligence not exceeding one million won:

1. Deleted.

2. A person who fails to make a report in contravention of the provisions of Article 30 (1) or 35;

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3. A person who fails to keep the books and other documents in contravention of the provisions of Article 39;

4. A person who fails to make a report as prescribed in Article 41 (1), or makes a false report; and

5. A person who refuses, interferes with, or evades the entry and inspection of the public official concerned as prescribed on Article 41 (2).

(2) The fine for negligence as referred to in paragraph (1) shall be imposed and collected by the Minister of Labor, City Mayors, County Chiefs, or heads of Ku Administrative offices in accordance with his jurisdiction, under the conditions as prescribed by the Presidential Decree.

(3) Any person who is dissatisfied with a disposition of fine for negligence as referred to in paragraph (2), may make an objection against the Minister of Labor, City Mayors, County Chiefs, or heads of Ku Administrative offices, within thirty days after he is informed of such disposition.

(4) If a person who is subject to a disposition of fine for negligence as referred to in paragraph (2), has made an objection under paragraph (3), the Minister of Labor, City Mayors, County Chiefs, or heads of Ku Administrative offices shall notify it without delay to the competent court, which shall, upon receiving the notification, bring the case of fine for negligence to a trial under the Non-Contentious Case Procedure Act.

(5) If no objection is made, and no fine for negligence is paid, in the period as referred to in paragraph (3), it shall be collected according to the examples of the disposition of national or local taxes in arrears.

Article 50 (Joint Penal Provisions)

If a representative of a juristic person, or an agent, servant or other worker of a juristic person or individual commits an offense as prescribed in Article 46 through 48-2 in connection with affairs of the juristic person or individual, the fine as prescribed in respective Article shall be imposed on such juristic person or individual, in addition to punishment of the offender.

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Addenda (Labor Standards Act) Article 1 (Enforcement Date)

This Act shall enter into force on the day of its promulgation. However, the amended provision of Article 16 (24) of Addenda shall enter into force on Apr. 12, 2007. The amended provisions of Article 12, 13, 17, 21, 23(1), 24(3), 25(1), 27 through 33, 37(1), 38, 43, 45, 64(3), 77, 107, subparagraph (1) of Article 110, and Article 111, 112, 114, 116 and Article 16(9) of Addenda shall enter into force on Jul. 1, 2007, and the amended provision of Article 16(21) of Addenda shall enter into force on Jul. 20, 2007.

Articles 2 through 15 Omitted.

Article 16 (Revision of Other Laws)

(1) through (20) Omitted.

(21) Parts of the amended provision of the Employment Security Act shall be revised as follows :

"Article 63 of the Labor Standards Act" in paragraph (2) of Article 21-3 shall be changed to "Article 65 of the Labor Standards Act."

(22) through (24) Omitted.

Article 17 Omitted.

Addenda

This Act shall enter into force on the day of its promulgation.