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Laws of the Republic of Korea |
[Enforcement: Nov. 28, 2009] [Act No. 9733, Partially Amended on May 27, 2009] Ministry of Land, Transportation & Maritime Affairs (Public Transportation Div.) 02- 2110-8675
CHAPTER I GENERAL PROVISION
Article 1 (Purpose)
The purpose of this Act is to promote public welfare by establishing order in passenger transport services and striving for the smooth transport of passengers and the overall development of passenger transport services. Article 2 (Definitions)
The definitions of terms used in this Act shall be as follows:
1. The term "automobiles" means motorcars and buses referred to in
Article 3 of the Automobile Management Act;
2. The term "passenger transport service" means a passenger transport
business, rent-a-car business, bus terminal business and passenger
transport franchise
business;
3. The term "passenger transport business" means a business which transports
passengers for profits using automobiles in response
to the demand from others;
4. The term "rental car business" means a business which rents automobiles for
profits in response to the demand from others;
5. The term "bus terminals" means facilities and places that are used by buses to
stop or to let passengers get on or off other than
the following places or facilities, of
which types shall be provided by the Ordinance of the Ministry of Land, Transportation
and
Maritime Affairs:
A. Road surface of streets, or
B. Other places used for general transport;
6. The term "bus terminal business" means a business which uses a bus terminal
for the passenger transport business;
7. The term "passenger transport franchise business" means a business that
permits a franchisee to transport passengers or to provide
services incidental to transport
upon the request of others;
8. The term "passenger transport franchisor" means a person who has obtained
the license for the passenger transport franchise business
under Article 42-2; and
9. The term "passenger transport franchisee" means an operator of the
passenger transport business under Article 3 (limited to the
passenger transport business
as prescribed by the Presidential Decree) who has joined a passenger transport franchise
business
operator (hereafter referred to as the "transport franchisor") as a transport
franchisee, vested with the right to use the business
signs (including the trade name and
trademark; the same shall apply hereafter) of the transport franchisor, and transports
passengers
assigned by the passenger transport franchisor or provides services
incidental to such transport.
CHAPTER II PASSENGER TRANSPORT BUSINESS
Article 3 (Classification of Passenger Transport Business)
(1) Classification of passenger transport businesses shall be as follows:
1. Route passenger transport business: A business which transports
passengers by specifying a section intended for regular service
(hereinafter referred to
as "route"); and
2. Area passenger transport business: A business which transports
passengers by specifying a business area within the business area.
(2) Passenger transport businesses listed in paragraph (1) 1 and 2 may be
subdivided under the conditions as prescribed by the
Presidential Decree.
Article 4 (License, etc.)
(1) Any person who intends to run the passenger transport business shall
prepare the plans for business and obtain a license from
the Minister of Land,
Transportation and Maritime Affairs under the conditions as prescribed by the
Ordinance of the Ministry of
Land, Transportation and Maritime Affairs: Provided, that
in the event that a person intends to run the passenger transport business
prescribed by
the Presidential Decree, he/she shall prepare the plans for business and obtain a license
from the Special Metropolitan
City Mayor, Metropolitan City Mayor, Do governor, or
Special Self-Governing Do governor (hereinafter referred to as the "Mayor/Do
governor") or register with the Mayor/Do governor under the conditions as prescribed
by the Ordinance of the Ministry of Land,
Transportation and Maritime Affairs.
(2) In granting a license or accepting registration referred to in paragraph (1),
the routes
or business areas shall be set according to the type of passenger transport
business referred to in Article 3.
(3) In granting a license pursuant to paragraph (1) or accepting registration of
passenger transport business prescribed by the
Presidential Decree, the Minister of Land,
Transportation and Maritime Affairs or the Mayor/Do governor may, if it is deemed
necessary,
grant a license with restrictions on the scope or the period of business
operations for the passengers to be transported (hereinafter
referred to as the "restricted
license") or attach necessary conditions in order to establish order in the passenger
transport
business under the conditions as prescribed by the Ordinance of the Ministry
of Land, Transportation and Maritime Affairs.
Article 5 (Standard for License, etc.)
(1) The licensing standards for passenger transport business shall be as follows:
1. The business plan shall meet the demand for transport and the supply
of transport capacity of the route or business area concerned;
2. It shall meet the standards as determined by the Ordinance of the
Ministry of the Land, Transportation and Maritime Affairs, such
as the minimum
number of automobiles for the license, under possessionunder possession, and
incidental facilities; and
3. In the case of such passenger transport business as determined by the
Presidential Decree, it shall meet the standards as determined
by the Ordinance of the
Ministry of Land, Transportation and Maritime Affairs in terms of the driving
experience, record of traffic
accidents and his/her place of residence.
(2) The Minister of Land, Transportation and Maritime Affairs may prescribe
the standard
for calculation of the transport capacity under paragraph (1) 1 (limited to
the passenger transport business as prescribed by the
Presidential Decree) and notify it
to the Mayor/Do governor.
(3) The Mayor/Do governor who has been notified of the calculation standard
under paragraph (2) shall formulate a plan for the supply
of transportation capacity to
notify to the public and make a report of such to the Minister of Land, Transportation
and Maritime
Affairs every five years.
(5) The minimum number of automobiles for registration, garage area under
possession, incidental facilities, formulation and public
announcement of a plan for the
supply of transport capacity, or other necessary matters which form the registration
standards for
automobile transport business shall be determined by the Ordinance of the
Ministry of Land, Transportation and Maritime Affairs.
No person who falls under any of the following subparagraphs shall obtain a
license or make a registration for the passenger transport
business. The same shall apply
to juridical persons, in the event that any of whose officers falls under any of the
following subparagraphs:
1. An incompetent person or a quasi-incompetent person;
2. A person who has been adjudicated bankrupt and has not been
reinstated;
3. A person who has been sentenced to imprisonment or a heavier
punishment in violation of this Act, and for whom two years have
not passed since
he/she completed the execution (including where he/she is deemed to have completed
the execution) or was exempted
from the execution;
4. A person who is under the probation of the execution of imprisonment
or a heavier punishment as declared by a court in violation
of this Act; and
5. A person for whom two years have not passed from the date when
his/her license or registration for passenger transport business
was cancelled.
Article 7 (Commencement of Transportation)
A person who has obtained a license for passenger transport business pursuant
to Article 4 (1) shall have his/her transport facilities
under the business plan confirmed
and commence the transportation by the date or within the period designated by the
Minister of
Land, Transportation and Maritime Affairs or the Mayor/Do governor:
Provided, that where a person who has obtained a license for
passenger transport
business cannot commence the transportation within the date or period set by the
Minister of Land, Transportation
and Maritime Affairs or the Mayor/Do governor due to
a natural disaster or other inevitable causes, the Minister of Land, Transportation
and
Maritime Affairs or the Mayor/Do governor may, upon request from the person who has
obtained the license, delay the date or
extend the period.
Article 8 (Report on Charges and Fares)
(1) Any person who has obtained a license for the passenger transport business
pursuant to Article 5 (1) shall determine the charges
or fares within the scope of the
standards and rates prescribed by the Minister of Land, Transportation and Maritime
Affairs or
the Mayor/Do governor and file a report thereof with the Minister of Land,
Transportation and Maritime Affairs or the Mayor/Do governor.
(2) Where a person who has obtained a license or registration for passenger
transport business pursuant to Article 4 (1) and who
is designated by the Presidential
Decree intends to set charges or fares, he/she shall report to the Mayor/Do governor
notwithstanding
the provisions of paragraph (1). The same shall apply to change of
charges or fares.
(3) Matters necessary for the determination of standards for charges, fares and
rates referred to in paragraph (1) shall be determined
by the Ordinance of the Ministry
of Land, Transportation and Maritime Affairs.
(4) A route passenger transport service provider shall transport free of charge
infants under six years of age accompanied by a
passenger: Provided, that this shall not
apply where a passenger accompanied by an infant intends to assign a separate seat for
the infant.
Article 9 (Terms and Conditions of Transport)
(1) A person who has obtained a license or made a registration for passenger
transport business (hereinafter referred to as "transport
business operator") pursuant to
Article 4 (1) shall set the terms and conditions of transport and report them to the
Minister of
Land, Transportation and Maritime Affairs or the Mayor/Do governor. The
same shall apply to the amendment of the terms and conditions
of transport.
(2) Matters required for entries, etc. in terms and conditions of transport
referred to in paragraph (1) and other
necessary matters shall be determined by the
Ordinance of the Ministry of Land, Transportation and Maritime Affairs.
Article 10
(Change of Business Plan)
(1) Where a person who has obtained a license for passenger transport business
pursuant to Article 4 (1) intends to change the business
plan, he/she shall obtain
authorization from the Minister of Land, Transportation and Maritime Affairs or the
Mayor/Do governor:
Provided, that where he/she intends to change minor matters as
determined by the Ordinance of the Ministry of Land, Transportation
and Maritime
Affairs, he/she shall report them to the Minister of Land, Transportation and Maritime
Affairs or the Mayor/Do governor.
(2) Where a person who has made a registration for the passenger transport
business pursuant to the proviso of Article 4 (1) intends
to change the business plan,
he/she shall register with the Mayor/Do governor: Provided, that where he/she intends
to change minor
matters as determined by the Ordinance of the Ministry of Land,
Transportation and Maritime Affairs, he/she shall report them to
the Mayor/Do governor.
(3) Where a transport business operator falls under any of the following
subparagraphs, the Minister of
Land, Transportation and Maritime Affairs or the
Mayor/Do governor may restrict changes in the business plan referred to in paragraphs
(1) and (2):
1. Where he/she fails to commence the transportation within the date or
period referred to in Article 7;
2. Where he/she has received an order for improvement under Article 23,
but failed to carry out the order;
3. Where one year has not passed since he/she received an order for
change of business plan due to closure of routes or reduction
in numbers of automobiles
pursuant to Article 85 (1); and
4. Where the severity or frequency of traffic accidents exceed the
standards as determined by the Presidential Decree.
(4) The procedures
and standards for changes of business plans under
paragraphs (1) through (3) and other necessary matters shall be determined by
the
Ordinance of the Ministry of Land, Transportation and Maritime Affairs.
Article 11 (Joint Transport Service Agreement)
(1) Where a transport business operator intends to enter a contract on joint
management or any other agreement on transport service
with any other transport
business operator (hereinafter referred to as "joint transport service agreement"), he/she
shall enter
it in compliance with the prescriptions of the Presidential Decree. The same
shall apply to the amendment of the joint transport
service agreement.
Article 12 (Ban on Use of Other's Name)
(1) A transport business operator shall not allow another transport business
operator or a person who is not a transport business
operator to use all or part of his/her
commercial automobiles with or without compensation to operate a passenger transport
business.
The same shall apply where a transport business operator gives instructions in
connection with the business of another transport
business operator or a person who is
not a transport business operator.
(2) A transport business operator shall not operate a passenger transport
business under his/her own or another's name by using
all or part of another transport
operator's commercial automobiles. The same shall apply where a transport business
operator receives
instructions in connection with his/her business from another transport
business operator.
(3) A person who is not a transport business operator shall not operate a
passenger transport business under his/her own name or
another's name using all or part
of a transport business operator's commercial automobiles for business. The same shall
apply where
a person who is not a transport business operator receives instructions in
connection with the business from a transport business
operator.
Article 13 (Entrustment of Business Management)
(1) Where a transport business operator intends to entrust the management of
passenger transport business to another, he/she shall
report it to the Minister of Land,
Transportation and Maritime Affairs or Mayor/Do governor.
(2) The entrustment of management
referred to in paragraph (1) shall not be
made to a person who is not a transport business operator.
Article 14 (Transfer, Takeover,
Etc. of Business)
(1) A person who intends to transfer or take over the passenger transport
business shall report to the Minister
of Land, Transportation and Maritime Affairs or
Mayor/Do governor under the conditions as prescribed by the Ordinance of the Ministry
of Land, Transportation and Maritime Affairs.
(2) Where any person intends to transfer or take over the passenger transport
business as determined by the Presidential Decree,
he/she shall obtain authorization
from the Minister of Land, Transportation and Maritime Affairs or Mayor/Do governor
under the
conditions as prescribed by the Ordinance of the Ministry of Land,
Transportation and Maritime Affairs notwithstanding the provision
of paragraph (1). In
this case, the Minister of Land, Transportation and Maritime Affairs or Mayor/Do
governor may restrict the
transfer or takeover of the passenger transport business for a
fixed period as determined by the Ordinance of the Ministry of Land,
Transportation
and Maritime Affairs.
(3) Any transport business operators that are determined by the Presidential
Decree among transport business operators required
to obtain authorization under
paragraph (2) shall not transfer the business.
(3) A successor who has made a report pursuant to paragraph (1) shall succeed
to the status as a transport business operator of
his/her predecessor.
(4) The provision of Article 6 shall apply mutatis mutandis with respect to
disqualifications of any persons
who make a report under paragraph (1): Provided, that
where a successor transfers such passenger transport business to another within
90 days
from the date of the predecessor's death, a license for or registration of the passenger
transport business granted from
the date of the predecessor's death to the date of report
to the predecessor shall be deemed as a license or registration granted
to the successor.
Article 16 (Suspension or Closure of Passenger Transport Business)
(1) Where a person who has obtained a license
for passenger transport business
pursuant to Article 4 (1), intends to suspend all or part of the business, or close down the
business,
he/she shall obtain permission from the Minister of Land, Transportation and
Maritime Affairs or the Mayor/Do governor under the
conditions as prescribed by the
Ordinance of the Ministry of Land, Transportation and Maritime Affairs: Provided, that
this shall
not apply where he/she does so due to the destruction of a road or a bridge or
for other justifiable reasons.
(2) Where a person who has registered for passenger transport business
pursuant to the proviso of Article 4 (1) intends to suspend
all or part of the business, or
close down the business, he/she shall make a report to the Mayor/Do governor under the
conditions
as prescribed by the Ordinance of the Ministry of Land, Transportation and
Maritime Affairs.
(3) The suspension period referred to in paragraphs (1) and (2) shall not exceed
one year.
(4) Where a transport business operator intends to suspend all or part of the
business, or close down the business, he/she shall
post a notice in advance at the
business place and other places easily visible for the general public.
Article 17 (Automobile Indications)
A transport business operator shall indicate the name, sign, and other matters as
determined by the Ordinance of the Ministry of
Land, Transportation and Maritime
Affairs on the exterior of an automobile used for passenger transport business.
Article 18 (Transport
of Mail, etc.)
A route passenger transport service provider may transport mail, newspapers
and passengers' carry-on luggage in addition to the
transportation of passengers.
Article 19 (Measures for Accidents)
(1) Where a natural disaster or a traffic accident causes passengers deaths or
injuries, a transport business operator shall promptly
take necessary measures such as
managing the articles left behind or securing alternative transportation means, etc. as
prescribed
by the Ordinance of the Ministry of Land, Transportation and Maritime
Affairs.
(2) Any transport business operator shall, when any of his/her business
automobiles are involved with any of the following accidents
(hereafter referred to as
the "grave traffic accident"), make a report promptly to the Minister of Land,
Transportation and Maritime
Affairs or the Mayor/Do governor under the conditions as
prescribed by the Ordinance of the Ministry of Land, Transportation and
Maritime
Affairs.
1. Overturn of an automobile;
2. Fire to an automobile; or
3. Casualties exceeding the number as determined by the Presidential
Decree.
Article 20 (Evaluation of Management and Services of Passenger Transport
Service Provider)
(1) The Minister of Land, Transportation and Maritime Affairs or the Mayor/Do
governor may conduct an evaluation on the management
status of a passenger transport
service provider and on the services provided by a person who operates the passenger
transport
service (hereafter referred to as the "passenger transport service provider") in
order to systematically support and develop the
passenger transport business and
improve the services.
(2) The Minister of Land, Transportation and Maritime Affairs or the Mayor/Do
governor may publicly announce the management and
result of the service evaluation
(excluding the results of management evaluation) conducted pursuant to paragraph (1)
under the
conditions as provided by the Ordinance of the Ministry of Land,
Transportation and Maritime Affairs.
(3) The Minister of Land, Transportation and Maritime Affairs or the Mayor/Do
governor may award a person who has achieved excellent
results in the evaluation on
management and services under paragraph (1) a prize or a certificate of excellence, and
preferentially
provide financial supports, etc. under the provisions of Article 50 pursuant
to the conditions as provided by the Ordinance of the
Ministry of Land, Transportation
and Maritime Affairs.
(4) The Minister of Land, Transportation and Maritime Affairs or the Mayor/Do
governor may request a passenger transport service
provider to submit the data
necessary for the management and service evaluation under the provision of paragraph
(1).
(5) Matters necessary for the subject, criteria, methods and procedures, etc. for
the management and service evaluation conducted
by the Minister of Land,
Transportation and Maritime Affairs or the Mayor/Do governor under the provision of
paragraph (1) shall
be provided by the Ordinance of the Ministry of Land,
Transportation and Maritime Affairs.
Article 21 (Matters to be Observed by Transport Business Operators)
(1) A transport business operator as determined by the Presidential
Decree shall
receive all of the charges or fares, which a person who is qualified for driving
automobiles under Article 24 and
is engaged in driving service for the passenger
transport business (hereafter referred to as the "transport employees) receives
from the
users (hereinafter referred to as "transport receipts"), from the transport employee.
(2) A transport business operator
shall have only the persons qualified as
transport employees under Article 24 engage in driving services.
(3) A transport business
operator shall not join in two or more passenger
transport franchisees (hereafter referred to as the "transport franchisee").
(4) A transport business operator who has joined as a transport franchisee
(limited to transport business operators who own only
one automobile and drives the
automobile first hand) shall change his/her trade name to the name of the transport
franchise to
which he/she belongs and file a report with the Mayor/Do governor under
the conditions as provided by the Ordinance of the Ministry
of Land, Transportation and
Maritime Affairs.
of each month:
1. List of transport employees who were newly employed or retired in the
previous month (including the type of driver's license and
date of acquisition for newly
employed transport employees); and
2. Present status of transport employees as of the end of the previous
month.
(2) The Mayor/Do governor who has been notified of the matters under
paragraph (1) shall promptly report the matters to the Minister
of Land, Transportation
and Maritime Affairs.
Article 23 (Order for Improvement of Passenger Transport Business)
(1) The Minister of Land, Transportation and Maritime Affairs
or the Mayor/Do
governor may, if he/she deems it necessary for the smooth transport of and improved
service for passengers, order
the following matters to transport business operators:
1. Change of a business plan (excluding changes of business plans
accompanied with closing routes and reducing the number of automobiles
under Article
85 (1);
2. Extension, curtailment or change of routes;
3. Adjustment of charges or fares;
4. Change of terms and conditions on passenger transport;
5. Improvement of automobiles and transport facilities;
6. Improvement in the method of collecting charges or fares;
7. Entering joint transport service agreements;
8. Effectuation of an insurance or mutual aid for automobile accident
compensation;
9. Measures necessary for the security of safe transport and better service;
and
10. Operation of remote or unprofitable routes.
(2) The Minister of Land, Transportation and Maritime Affairs or the Mayor/Do
governor
may, if he/she deems it necessary to urgently increase transportation to regions
or routes where it is difficult to operate route
passenger automobiles or urban railway
due to natural disaster or for other reasons, issue an order to operate passenger
automobiles
as substitute means for transportation, including an order to extend or
change routes, or to operate an provisional route.
(3)
The Minister of Land, Transportation and Maritime Affairs or the Mayor/Do
governor shall, in the event that a transport business
operator incurs a loss due to the
execution of an order made for improvements under paragraph (1) 10 and to operate
automobiles
under paragraph (2), compensate such loss as prescribed by the Presidential
Decree.
Article 24 (Qualifications for Engaging in Driving Service for Passenger Transport
Business)
(1) A person who intends to be engaged in driving services for the passenger
transport business shall meet requirements such as
age and driving experience as
prescribed by the Ordinance of the Ministry of Land, Transportation and Maritime
Affairs, and shall
meet the close inspection standards for driving aptitude. In this case,
the close inspection for driving aptitude shall be conducted
by the Minister of Land,
Transportation and Maritime Affairs.
(2) A person who intends to be engaged in driving services for the area
passenger transport business as prescribed by the Presidential
Decree, shall pass an
examination conducted by the Mayor/Do governor regarding passenger transport
service-related Acts and subordinate
statutes, and geographical familiarity, in addition to
the requirements referred to in paragraph (1) and then acquire qualifications
from the
Mayor/Do governor.
(3) Matters necessary for the conduct of examinations and acquisition of
qualifications referred to in paragraph (2) shall be determined
by the Ordinance of the
Ministry of Land, Transportation and Maritime Affairs.
(4) Any person who falls under any one of the following
subparagraphs may not
acquire the qualifications under the provisions of paragraphs (2) and (3):
1. A person who has been sentenced to imprisonment due to reasons of
committing a crime falling under any one of the following items
and for whom two
years have yet to elapse after the execution of such sentence was terminated (including
where it is deemed to
have been terminated) or the exemption of the execution of such
sentence was made definite:
(a) Crimes under subparagraphs of Article 2 (1) of the Act on
Special Cases concerning the Punishment of Specific Violent Crimes;
(b) Crimes under Articles 5-2 through 5-5, 5-8, 5-9 and 11 of the
Act on the Aggravated Punishment, etc. of Specific Crimes; and
(c) Crimes under the Act on the Control of Narcotics, etc.; and
2. A person who is in the period of a stay of the execution after he/she has
been sentenced to probation due to reasons of committing
the crimes falling under items
of subparagraph 1.
Article 25 (Education, Etc. of Transport Employees)
(1) Transport employees shall receive education required to provide enhanced
service to passengers as prescribed by the Ordinance of the Ministry of Land,
Transportation and Maritime Affairs.
(2) A transport business operator shall take measures necessary for transport
employees to receive the education pursuant to paragraph
(1), and shall not have any
transport employee who has not received the education engage in driving services.
(3) The Mayor/Do
governor may directly establish and operate or designate a
training institution for transport employees, and may support expenses
necessary for the
operation of a training institution for transport employees as prescribed by the
Municipal Ordinance of the Special
Metropolitan City, Metropolitan City or Do
(hereinafter referred to as "City/Do"), if it is deemed necessary for efficient education
referred to in paragraph (1).
Article 26 (Matters to be Observed by Transport Employees)
(1) A transport employee shall not perform the following:
1. An act of refusing passengers or removing them from the vehicle in the
middle of the road without any justifiable grounds;
2. An act of charging excessive charges or fares;
3. An act of stopping at a place for a long time to board passengers;
4. An act of sharing rides for passengers (limited to passenger transport
businesses as determined by the Presidential Decree);
5. An act of starting or operating an automobile without closing the door;
6. An act of starting an automobile before passengers get on or off the
vehicle or passing a designated stop without stopping when
there are passengers waiting
to get on or off;
7. An act of failure to broadcast an announcement (limited to cases where
automotive public address system as prescribed by the Ordinance
of the Ministry of
Land, Transportation and Maritime Affairs is installed; and)
8. An act of violating other matters as determined by the Ordinance of the
Ministry of Land, Transportation and Maritime Affairs
to be observed by transport
employees for the safe operation and passengers' convenience.
(2) The transport employees for a transport
business operator under Article 21
(1) shall hand over all transport receipts to the transport business operator.
Article 27 (Maintaining,
Etc. of Accident Records)
(1) The Minister of Land, Transportation and Maritime Affairs shall confirm
facts on accidents with casualties
and violations of traffic regulations by transport
employees from the chief of the National Police Agency and maintain the records.
(2) The Minister of Land, Transportation and Maritime Affairs shall, if the
driver's license of a transport employee has been cancelled
or suspended or a transport
employee falls under the restrictions prescribed by the Ordinance of the Ministry of
Land, Transportation
and Maritime Affairs for the safe operation of passenger transport
automobiles, notify the fact to the Mayor/Do governor and the
transport business
operator (excluding a transport business operator who owns only one automobile and
drives the automobile first
hand) concerned.
CHAPTER III RENTAL CAR BUSINESS
Article 28 (Registration)
(1) A person who intends to operate the rental car business shall prepare a
business plan and register with the Mayor/Do governor
in accordance with the
provisions of the Ordinance of the Ministry of Land, Transportation and Maritime
Affairs.
(2) The provision of Article 6 shall apply mutatis mutandis to disqualifications
for a rental car business under paragraph (1).
Article 29 (Registration Standards)
The number of automobiles, garage area under possession, business places and
other necessary matters which form the registration
standards for a rental car business
shall be determined by the Ordinance of the Ministry of Land, Transportation and
Maritime Affairs.
Article 30 (Types of Automobiles for Rental Car Business)
The types of automobiles which can be used for a rental car business shall
be
determined by the Ordinance of the Ministry of Land, Transportation and Maritime
Affairs.
Article 31 (Rental Car Terms and Conditions)
(1) A person who has registered for a rental car business pursuant to Article 29
(1) (hereinafter referred to as the "rental car
business operator") shall set forth rental
terms and conditions and report them to the Mayor/Do governor before the start of the
rental car business. The same shall apply to the amendments of rental terms and
conditions.
(2) The matters necessary for the entries in the rental terms and conditions
under paragraph (1) shall be determined by the Ordinance
of the Ministry of Land,
Transportation and Maritime Affairs.
Article 32 (Managerial Entrustment of Rental Car Business)
(1)Where a rental car business operator intends to entrust the management
of
the rental car business, he/she shall obtain permission from the Mayor/Do governor.
(2) The managerial entrustment referred
to in paragraph (1) shall not be made to
persons who are not rental car business operators.
Article 33 (Order for Improvement of
Rental Car Business)
The Mayor/Do governor may order the following matters to rental car business
operators as deemed necessary
for the protection of the person renting the automobile,
ensuring safe operation, improved service, and proper management of the
rental car
business:
1. Change of business plan;
2. Change of rental terms and conditions; and
3. Improvement and change of facilities.
Article 34 (Prohibition of Onerous Transport)
(1) Anyone who rents an automobile from a rental car business operator shall
not use such automobile for transportation with compensation,
or sublet the automobile
to another person.
(2) No rental car business operator shall make arrangements for a driver for a
person renting the automobile: Provided that the
same shall not apply to foreigners,
disabled persons or cases as prescribed by the Presidential Decree.
(3) No rental car business
operator shall transport passengers for profit using
the automobile or broker such service in response to the demand of others.
Article 35 (Applicable Provisions)
The provisions of Articles 10 (2) through (4), 11, 12, 15 (excluding paragraph
(2) of the same Article), 16 and 16 (excluding paragraph
(1) of the same Article) shall
apply mutatis mutandis to the changes in business plans, restrictions on changes in
business plans,
joint transport service agreements, prohibition of use of other's names,
transfer and takeover of business and merger of corporations,
succession, suspension
and closure, etc. of a rental car business.
CHAPTER IV PASSENGER TERMINAL BUSINESS
Article 36 (License for Bus Terminal Business)
(1) A person who intends to operate a bus terminal business (hereinafter
referred to as the "terminal business") shall obtain a
license from the Mayor/Do
governor under the conditions as prescribed by the Ordinance of the Ministry of Land,
Transportation
and Maritime Affairs.
(2) Disqualifications for terminal business referred to in paragraph (1), the
provision of Article 6 shall apply mutatis mutandis.
Article 37 (Licensing Standards)
The licensing standards for the terminal business shall be as follows:
1. Location of the bus terminal (hereinafter referred to as the "terminal")
shall be easily accessible by passengers and be connected
with other means of
transportation;
2. Size of the terminal shall meet the long-term demand for transport of
the area; and
3. Initiation of the business shall enhance the convenience of terminal
users and development of passenger transport business in
the area.
Article 38 (Authorization, Etc. for Execution of Construction Work)
(1) A person who has obtained a license for terminal
business pursuant to
Article 36 (1) (hereinafter referred to as the "terminal operator") shall establish a
construction plan for
the projected terminal and obtain authorization from the Mayor/Do
governor within the period prescribed by the Mayor/Do governor.
The same shall apply
to changes of matters as determined by the Presidential Decree among the authorized
matters.
(2) Where the construction plan referred to in paragraph (1) is deemed to meet
the structure and equipment standards as determined
by the Ordinance of the Ministry
of Land, Transportation and Maritime Affairs, the Mayor/Do governor shall authorize
execution
of the construction.
(3) Where the terminal operator is unable to apply for authorization by the
period under paragraph (1) due to natural disaster or
other inevitable causes, the
Mayor/Do governor may extend the period on the terminal operator's application.
(4) A terminal operator
shall, upon the completion of the authorized
construction pursuant to paragraph (1), have the facilities confirmed by the Mayor/Do
governor.
Article 39 (Commencement of Use)
A terminal operator shall begin use of the terminal within the period designated
by the Mayor/Do governor, after having the facilities
confirmed pursuant to Article 38
(4): Provided, that if he/she has justifiable reasons, he/she may request the Mayor/Do
governor
to delay the date of commencing his/her business.
Article 40 (Terms and Conditions of Use)
(1) A terminal operator shall set the terms and conditions of use and report them
to the Mayor/Do governor. The same shall apply
to changes of the terms and conditions
of use.
(2) The necessary matters such as entries in the terms and conditions of use
referred to in paragraph (1) shall be determined by
the Ordinance of the Ministry of
Land, Transportation and Maritime Affairs.
Article 41 (Rental Fee for Facilities)
(1) Where a terminal operator intends to collect a rental fee for facilities from
transport business operators using the terminal
(hereinafter referred to as the "terminal
user"), he/she shall obtain authorization from the Mayor/Do governor. The same shall
apply to change of the rental fee for facilities.
(2) The matters necessary for the rental fee for facilities, such as authorization
standards for rental fee for facilities referred to in paragraph (1), shall be determined by
the Ordinance of the Ministry of Land,
Transportation and Maritime Affairs.
Article 42 (Matters to be Observed by Terminal Operators)
(1) A terminal operator shall comply
with the following matters:
1. He/she shall not unfairly restrict use of terminal facilities;
2. He/she shall not charge the rental fee discriminately; and
3. He/she shall maintain subsidiary facilities, such as waiting room and
toilet, in a way that it can be easily used by terminal
users.
(2) A terminal operator shall maintain and manage the terminal structure and
facilities in a way that meets the standards
listed in Article 38 (2).
(3) The Mayor/Do governor shall, if the terminal operator has failed to observe
the matters under paragraph
(1), give an order to comply with the provisions to the
terminal operator, and if the terminal operator has failed to manage and
maintain the
terminal structures as provided in paragraph (2), the Mayor/Do shall make a corrective
order in regards to it.
Article 43 (Changes of Location, Size, Structure, Equipment, Etc.)
(1) Where a terminal operator intends to change the location,
size, structure and
equipment of the terminal, he/she shall obtain authorization from the Mayor/Do
governor: Provided that this
shall not apply to changes of minor matters as determined
by the Ordinance of the Ministry of Land, Transportation and Maritime
Affairs.
(2) The provisions of Articles 37 through 39 shall apply mutatis mutandis to the
authorization referred to in paragraph
(1).
Article 44 (Order for Improvement of Terminal Business)
Where it is deemed that it impedes upon the benefits of terminal users or
it is
necessary to improve the terminal business, the Mayor/Do governor may order the
following matters to the terminal operator
concerned:
1. Changes of the terminal size and structure, and improvement or
modification of equipment;
2. Changes of the terms and conditions of use, rental fee for facilities or
commissions for ticket sales;
3. Measures for better service, maintenance of order, and ensuring
terminal users' safety;
4. Measures for the improvement of quality, such as training of
employees;
5. Measures necessary for smooth transportation in cases that the
transport demand is, on such occasions as successive holidays,
expected to significantly
exceed the transport capacity; and
6. Measures necessary for the sale of tickets in the event that the terminal
operator is unable to sell tickets due to poor management.
Article 45 (Order to Use)
(1) The Mayor/Do governor may, in the event that a person who operates the
passenger transport business with fixed routes in an
area near a terminal but does not
use the terminal to make stops or to board or let off passengers at such terminal, order
the
passenger transport business operator to use the terminal if it is deemed necessary
for the public convenience and maintenance of
transport networks of passenger
transport business.
(2) The standards for an order to use a terminal by the Mayor/Do governor
pursuant to paragraph (1) shall be determined by the Ordinance
of the Ministry of Land,
Transportation and Maritime Affairs.
Article 46 (Consignment for Sale of Tickets)
(1) A terminal user shall consign the selling of tickets to the terminal operator:
Provided, that, where deemed necessary to serve
the convenience of passengers, a
transport business operator may directly sell tickets or consign the selling of tickets to a
person
other than the terminal operator.
(2) The commissions for consigned ticket sales shall, where the selling of
tickets is consigned pursuant to paragraph (1), be determined
by the mutual agreement
between the transport business operator and the consignee of the ticket sale.
Article 47 (Relations with
Other Acts)
(1) In the case that a terminal operator has obtained the authorization for
execution of a construction work under the provision
of Article 38, the following
permissions or authorizations shall be deemed to have been obtained, if the Mayor/Do
governor has
consulted with the heads of related administrative agencies about matters
concerned on the said permissions or authorizations pursuant
to paragraph (3),:
1. Permission for the act of development under Article 56 of the National
Land Planning and Utilization Act;
2. Permission for the act within the urbanization adjustment area under
Article 81 of the National Land Planning and Utilization
Act;
3. Designation of an implementer of the urban planning facilities project
under Article 86 of the National Land Planning and Utilization
Act;
4. Authorization for the implementation plan under Article 88 of the
National Land Planning and Utilization Act;
5. Permission for the implementation of road work under Article 34 of the
Road Act and for the occupancy of roads under Article 40
of the same Act;
6. Permission for opening private roads under Article 4 of the Private
Road Act;
7. Permission for reburials under Article 23 (1) of the Funeral Service, etc.
Act; and
8. Permission for public sewerage system work under Article 13 of the
Sewerage Act.
(2) The following permissions, reports or registrations shall, if a terminal
operator has his/her facilities confirmed under Article
39 (4) to directly conduct the
following businesses, be deemed to have been obtained or carried out for the said
business:
1. Registration for opening a large-scale shop under Article 8 of the
Distribution Industry Development Act;
2. Permission for restaurant entertainment business (excluding karaoke
bars and amusement bars business) under Article 22 of the
Food Sanitation Act;
3. Registration of oil station among petroleum sales businesses under
Article 10 of the Petroleum and Petroleum Substitute Fuel Business
Act;
4. Report on sports facilities business under Article 22 of the Installation
and Utilization of Sports Facilities Act; and
5. Registration of the performance stage business under Article 9 of the
Public Performance Act.
(3) The Mayor/Do governor shall, when he/she intends to authorize the
execution of construction work under Article 38 (1) or confirm
the facilities referred to
in paragraph (4) of the same Article, consult in advance with the head of the related
administrative
agency as to whether the said work or facilities conform to the related
Acts and subordinate statutes referred to in each subparagraph
of paragraph (2).
(4) The Mayor/Do governor shall, in the event that he/she has authorized the
execution of construction work under
Article 38 (1) or confirmed facilities under
paragraph (4) of the same Article, notify the head of the related administrative agency
under related Acts and subordinate statutes under the subparagraphs of paragraph (2) of
the details within 15 days from the date
of authorization or confirmation.
Article 48 (Applicable Provisions)
The provisions of Article 14 (excluding paragraph (2) of the same Article), 15
and 16 (excluding paragraph (2) of the same Article)
shall apply mutatis mutandis to the
transfer and takeover of terminal business and merger of corporations, succession to,
and suspension
and closure of business.
Article 49 (Construction and Operation of Public Terminal)
(1) The Special Metropolitan City Mayor, Metropolitan City Mayor, Special
Self-governing Do governor or the head of the City/Gun may, notwithstanding the
provision of Article 36, directly construct and
operate a terminal in the event that no
person intends to operate the terminal business.
(2) Necessary matters concerning the management and operation of a terminal
directly constructed by the Special Metropolitan City
Mayor, Metropolitan City Mayor,
Special Self-governing Do governor or the head of the City/Gun pursuant to paragraph
(1) shall
be determined by the municipal ordinances of such local governments.
CHAPTER IV-II PASSENGER TRANSPORT FRANCHISE BUSINESS
Article 49-2 (License, Etc. for Passenger Transport Franchise Business)
(1) Any person who seeks to operate the passenger transport
franchise business
shall formulate a business plan and obtain a license from the Mayor/Do governor under
the conditions as provided
by the Ordinance of the Ministry of Land, Transportation and
Maritime Affairs.
(2) A passenger transport franchisor who has obtained the license under
paragraph (1) shall, in the event of intending to amend
the business plan, obtain an
authorization from the Mayor/Do governor under the conditions as provided by the
Ordinance of the
Ministry of Land, Transportation and Maritime Affairs: Provided, that
in the case of amending minor matters as determined by the
Ordinance of the Ministry
of Land, Transportation and Maritime Affairs, he/she shall file a report with the
Mayor/Do governor under
the conditions as provided by the Ordinance of the Ministry
of Land, Transportation and Maritime Affairs.
(3) The license for the passenger transport franchise business or amendment of
the business plan under paragraphs (1) and (2) shall
be applicable only when they
conform to the standards as provided by the Ordinance of the Ministry of Land,
Transportation and
Maritime Affairs.
[This Article Newly Inserted on May 27, 2009]
Article 49-3 (Responsibilities, Etc. of Passenger Transport Franchisor and
Passenger Transport Franchisee)
(1) A passenger transport franchisor shall faithfully perform the following
matters for smooth operation of the passenger transport
franchise business:
1. Fair allocation of passengers to passenger transport franchisees;
2. Development and dissemination of efficient passenger allocation
techniques;
3. Construction and operation of a public computer network for smooth
transport of passengers; and
4. Development of new services incidental to passenger transport.
(2) A passenger transport franchisee shall faithfully perform the
following
matters for smooth operation of the passenger transport franchise business:
1. Provision of transport and incidental services in conformity with the
standards as determined by the passenger transport franchisor;
and
2. Notice of location of the automobile for smooth transport of passengers.
[This Article Newly Inserted on May 27, 2009]
Article 49-4 (Passenger Transport Franchise Terms)
(1) Any person who has obtained a license for the passenger transport franchise
business shall stipulate passenger transport franchise terms and report them to the
Mayor/Do governor. The same shall apply to
amendments of the transport terms.
(2) Entries and other matters necessary for the passenger transport franchise
terms under paragraph
(1) shall be determined by the Ordinance of the Ministry of Land,
Transportation and Maritime Affairs.
[This Article Newly Inserted on May 27, 2009]
Article 49-5 (Order for Improvement)
The Minister of Land, Transportation and Maritime Affairs and the Mayor/Do governor
may, in the event that it is deemed necessary
for ensuring safe transportation,
establishment of transportation order and conveniences of passengers, give the
passenger transport
franchisor an order for the following matters:
1. Change of the passenger transport franchise terms;
2. Measures for safe transportation of passengers;
3. Obligation for disclosing information, etc., return of admission fee,
entries, etc. of the franchise agreement and notice of franchise
agreement renewal, etc.
under Articles 7, 10, 11 and 13 of the Act on Fair Franchise Business Transactions
applied in Article 49-7;
and
4. Other matters prescribed by the Presidential Decree for service
improvement of the passenger transport franchise business.
[This
Article Newly Inserted on May 27, 2009]
Article 49-6 (Cancellation, Etc. of License for Passenger Transport Franchise
Business)
(1) The Minister of Land, Transportation and Maritime Affairs may, if a
passenger transport franchisor falls under any of the following
subparagraphs, cancel
the license or issue an order to suspend part or all of the business for a fixed period not
exceeding six
months: Provided, that in the case of subparagraphs 2 and 6, the license
shall be cancelled.
1. Where a passenger transport franchisor has permitted a person without
qualification for driving services for the passenger transport
franchise business under
Article 24 to transport passengers;
2. Where a passenger transport franchisor has obtained the license under
Article 49-2 (1) by fraudulent or any other unlawful means;
3. Where a passenger transport franchisor has received authorization for
amendment of the business plan under Article 49-2 (2) by
fraudulent or any other
unlawful means;
4. Where a passenger transport franchisor has failed to fulfill the
standards for the license under Article 49-2 (3); Provided, that
the same shall not apply
in the case of fulfilling the standards within three months;
5. Where a passenger transport franchisor has failed to execute an order
under Article 49-5 without justifiable reason;
6. Where a passenger transport franchisor falls under any one of
subparagraphs of Article 6 that is applied in Article 49-7; Provided,
that if a corporation
that has a person falling under any one of the subparagraphs of Article 6 as one of their
executives replaces
that person within three months, the license shall not be cancelled;
7. Where a passenger transport franchisor has violated any of Articles 7, 9
through 11, 13 and 14 of the Act on Fair Franchise Business
Transactions that is applied
in Article 49-8 (excluding the case where the passenger transport franchisor has
received an order
for improvement under Article 49-5);
8. Where a passenger transport franchisor has violated an order for
business suspension under this Article; or
9. Where a passenger transport franchisor has violated this Act or orders
and dispositions under this Act.
(2) Standards, procedure and other matters necessary for an order for business
closure or suspension under paragraph (1) shall be
provided by the Presidential Decree.
[This Article Newly Inserted on May 27, 2009]
Article 49-7 (Applicable Provisions)
The provisions of Articles 6, 12, 14 (excluding paragraph (2)), 15 and 16
(excluding paragraph (1)) shall apply to the disqualifications
for the passenger transport
franchise business, prohibition of using others' names, transfer, takeover, merger and
succession of
business, suspension and closure of business, imposition of fines, etc.
[This Article Newly Inserted on May 27, 2009]
Article 49-8 (Application of Act on Fair Franchise Business Transactions)
The provisions of Articles 7, 9 through 11, 13 and 14
of the Act on Fair
Franchise Business Transactions shall apply mutatis mutandis to the provision of
information between the passenger
transport franchisor and the passenger transport
franchisee, return of admission fee, franchise agreement, etc. In this case, "an
applicant
for admission" shall be deemed as "a person seeking to join as a passenger transport
franchisee", "franchisee" for "passenger
transport franchisee", and "franchise
headquarters", "franchise headquarters under Article 7 (1) of the same Act (including
cases
of franchise district headquarters or recruiting of franchisees by a franchise
broker; the same shall apply hereinafter)" and "franchise
headquarters or business
organization consisting of franchise headquarters" under paragraph (3) of the same
Article for "passenger
transport franchisees" respectively, and "admission fees under
subparagraphs (6) a and b of Article 2" under Article 10 (1) of the
same Act for "money
paid to the passenger transport franchisor in return for granting use of business marks at
the time of joining
as a franchisee regardless of the names or means of payment".
[This Article Newly Inserted on May 27, 2009]
CHAPTER V PROMOTION OF PASSENGER TRANSPORT BUSINESS
Article 50 (Financial Support)
(1) The State may, in the event that it is deemed necessary for a passenger
transport service provider to execute any one of the
following projects, subsidize or
finance parts of the required funds to the passenger transport service provider under the
conditions
as prescribed by the Presidential Decree:
1. Improvement of automobiles in quality, and modernization of a
terminal;
2. Operation of unprofitable routes;
3. Expansion or improvement of public facilities and safety control
facilities;
4. Replacement of obsolete vehicles;
5. Transfer of a terminal, and expansion and improvement of its size,
structure or equipment;
6. Expansion and improvement of facilities and equipment in order to
enhance the passenger transport service;
7. Installation and improvement of facilities and equipment required for
the passenger transport franchise business;
8. Expansion and improvement of facilities and equipment that promote
the economy, environmental friendliness and safety of driving;
and
9. Other matters for the promotion of passenger transportation as
determined by the Ordinance of the Ministry of Land, Transportation
and Maritime
Affairs.
(2) The Special City/Do may subsidize or finance parts of the required funds to
a passenger transport service provider in the event
of falling under any of the following
subparagraphs. In this case, matters necessary for the subjects and methods to be
subsidized
or financed or the redemption of subsidies or loans shall be determined by
the Municipal Ordinance of the City/Do: 1. Where a passenger transport service provider conducts a project falling
under any subparagraphs of paragraph (1); and
2. Where it is necessary to expand traffic safety facilities for passenger
safety;
3. Where it is intended to improve the bus transport system in an effort to
promote public transportation;
4. Where it is necessary to continue operation of a terminal that is in
financial difficulties for the sake of the convenience of
terminal users; or
5. Where it is necessary for restructuring a passenger transport business
(only for the passenger transport business as prescribed
by the Presidential Decree)
through the closing of business or reduction of automobiles.
(3) The state may, if a local government
compensates for reduction of
automobiles exceeding the plan for the supply of transportation capacity by districts
under Article
5 (3), subsidize part of the costs expended therefor under the conditions as
provided by the Presidential Decree.
(1) A person who has been subsidized or financed with funds pursuant to Article
51 shall not use the funds for purposes other than
initially intended for the subsidies or
finances.
(2) The Minister of Land, Transportation and Maritime Affairs or the Mayor/Do
governor shall supervise the person who has been subsidized
or financed pursuant to
Article 50 for proper use of the funds.
(3) The Minister of Land, Transportation and Maritime Affairs or the Mayor/Do
governor shall, if the passenger transport service
provider has been subsidized or
financed under Article 50 by fraudulent or other illegal means, give the passenger
transport service
provider an order to return the subsidies or loans and may collect them
following the examples of dispositions on default of national
or local taxes if the
passenger transport service provider fails to obey the order.
Article 52 (Tax Reduction and Exemption)
The State shall reduce and exempt taxes for smooth transport of passengers and
promotion of the passenger transport service under
the conditions as provided by the
Restriction of Special Taxation Act.
CHAPTER VI PASSENGER TRANSPORT SERVICE PROVIDERS
ASSOCIATION
Article 53 (Establishment of Association)
(1) Passenger transport service providers may establish an association
(hereinafter referred to as the "Association") through the
authorization of the Mayor/Do
governor for the sound development of passenger transport service and elevation of the
status of
passenger transport service providers.
(2) The Association shall be a juridical person.
(3) The Association shall be formed with the completion of registration of
incorporation at the site of its main office.
(4) To establish the Association, it shall prepare the articles of association at the
inaugural meeting promoted by not less than
a fifth of persons eligible to be members of
the Association with the consent of a majority of those persons and apply to the
Mayor/Do
governor for authorization.
(5) Passenger transport service providers may join the Association under the
conditions as determined by the articles of the Association.
(6) Except as provided for in this Act, the provisions related to incorporated
bodies in the Civil Act shall apply mutatis mutandis
with respect to the Association.
Article 54 (Articles of Association)
(1) The articles of association shall include the following:
1. Purpose;
2. Name;
3. Seat of its office;
4. Matters on qualifications for members of the Association;
5. Matters on general meetings;
6. Matters on officers;
7. Matters on business;
8. Matters on accounting;
9. Matters on dissolution; and
10. Other important matters on the operation of the Association.
(2) Amendment of the articles of the Association shall be made with
the
authorization of the Mayor/Do governor.
Article 55 (Activities)
The Association shall perform the following activities:
1. Promotion of sound development of passenger transport service and
common interests of passenger transport service providers;
2. Compiling and managing the statistics, and collection and research
study of foreign data necessary for the promotion and development
of passenger
transport service;
3. Training of managers and employees;
4. Guidance of passenger transport service providers for improvement of
management;
5. Processing of affairs delegated by the State or local governments; and
6. Processing of affairs incidental to those listed in subparagraphs 1
through 4.
Article 56 (Order for Amendment, Etc. of Articles of Association)
The Mayor/Do governor may, if he/she deems that the Association
fails to
perform the activities under subparagraphs of Article 55 properly, give the Association
an order to take necessary measures,
including the following matters:
1. Amendment of articles of the Association;
2. Reelection of officers; and
3. Dissolution of the Association.
Article 57 (Supervision)
The business of the Association shall be supervised by the Mayor/Do governor.
Article 58 (Board of Representatives)
(1) An Association having 1,000 or more members may have a board of
representatives in substitution of the general meeting under
the conditions as provided
in the articles of the Association.
(2) The representatives shall be members of the Association.
(3) The matters necessary for the composition and operation of the
board of
representatives shall be prescribed by the Presidential Decree.
Article 59 (Federation)
(1) The Associations may establish a federation (hereinafter referred to as the
"Federation") with the authorization of the Minister
of Land, Transportation and
Maritime Affairs to attain common purposes under the conditions as determined by the
Ordinance of the
Ministry of Land, Transportation and Maritime Affairs.
(2) The provisions of Articles 53 (2) through (6) and 54 through 57 shall
apply
mutatis mutandis to the establishment of the Association, articles of Association,
business, order to amend articles of association
and supervision. In this case, the
"Mayor/Do governor" shall be deemed as the "Minister of Land, Transportation and
Maritime Affairs".
Article 60 (Mutual Aid Project Conducted by Associations and Federation)
(1) The Associations and the Federation may conduct mutual-aid
projects with
the permission from the Minister of Land, Transportation and Maritime Affairs under
the conditions as determined
by the Presidential Decree.
(2) The provisions of Articles 61 (5), 63, 64 (excluding paragraph (1) 7 of the
same Article) and 65
through 68 shall apply mutatis mutandis to contributions to mutual
aid projects under paragraph (1) for the operation committee,
scope of mutual-aid
project, mutual aid regulations, report and inspection, order for improvement, restraints
on officers and employees
of the Association and the Federation who manages the
mutual-aid project and maintenance of financial soundness.
CHAPTER VII MUTUALAID
ASSOCIATIONS
Article 61 (Establishment of Mutual Aid Associations)
(1) Passenger transport service providers (excluding terminal operators; the
same shall apply hereafter) may establish mutual aid associations by the types of
business (hereinafter referred to as the "mutual
aid association") with the authorization
of the Minister of Land, Transportation and Maritime Affairs under the conditions as
provided
by the Presidential Decree with the purpose of supporting association
members to conduct economic activities for themselves through
a mutual cooperative
organization and of compensating for losses incurred due to a member's automobile
accident.
(2) The mutual aid association shall be a juridical person.
(3) The mutual aid association shall be formed with the completion of
registration of incorporation at the site of its main office.
(4) Passenger transport service providers may join the mutual aid
association
under the conditions as determined by the articles of association.
(5) Members of the mutual aid association shall
pay contribution necessary for
the mutual-aid project.
(6) Matters on qualifications for members and officers, and other matters
necessary with respect to operation of the mutual aid
association shall be provided by
the articles of association.
(7) Entries in articles of association or other matters necessary for the
supervision of the mutual aid association shall be determined
by the Presidential Decree.
Article 62 (Establishment Authorizing Procedures for Mutual Aid Association)
(1) To establish the Association,
the articles of association shall be drafted at the
inaugural meeting promoted by not less than one tenth of persons eligible to
be
members of the association, and with the consent of 200 of those persons and apply to
the Minister of Land, Transportation and
Maritime Affairs for authorization.
(2) The Minster of Land, Transportation and Maritime Affairs shall, in granting
authorization
referred to in paragraph (1), make a public notice thereof.
Article 63 (Operation Committee of Mutual Aid Association)
(1) The
mutual aid association shall have the operation committee to deliberate
and decide matters on mutual-aid projects under Article
64 and supervise execution
thereof.
(2) Members of the operation committee shall consist of members of the
association, experts in the field of transport business,
finance, insurance, accounting and
legal circles, and relevant public officials, and the total number of members shall not
exceed
25.
(3) Other matters necessary for the composition and operation of the operation
committee shall be determined by the Presidential
Decree.
Article 64 (Mutual Aid Projects)
(1) The mutual aid association shall conduct the following projects:
1. Mutual aid to liability for reparation incurred to a member due to
accident of his/her automobile for business;
2. Mutual aid to losses incurred to an automobile due to accidents while a
member owns, uses and manages the automobile for business;
3. Mutual aid to physical injury that a transport employee suffered from
an accident occurred while he/she owns, uses and manages
a member's automobile for
business;
4. Mutual aid to compensation for losses sustained due to an occupational
accident of an employee of the mutual aid association;
5. Establishment, operation and management of public facilities or other
projects to promote members' convenience and welfare;
6. Research and study projects to improve management of passenger
transport business; and
7. Projects incidental to those listed in subparagraphs 1 through 6 as
determined by the articles of the association.
(2) Where the mutual aid association intends to carry out mutual aid projects
referred to in paragraph (1) 1 through 4, it shall
establish mutual aid regulations and
obtain authorization thereon from the Minister of Land, Transportation and Maritime
Affairs.
The same shall apply to amendments of authorized matters.
(3) Mutual aid regulations under paragraph (2) shall provide for matters
necessary for the operation of mutual aid projects, including the scope of mutual aid
projects, contents of mutual aid contracts,
contributions, mutual aid funds, and
appropriation and accumulation of liability reserves to appropriate mutual aid funds and
payment
reserves.
(4) The mutual aid association shall appropriate and accumulate liability
reserves and payment reserves under paragraph (3) by the
types of projects for each
closing term.
(5) With respect to mutual aid projects referred to in paragraph (1) 1 through 4,
the Insurance Business Act (excluding Article
208 of the same Act) shall not apply.
Article 65 (Submission, Etc. of Report)
(1) The Minister of Land, Transportation and Maritime Affairs may, if he/she
deems it necessary, take the following measures for
the mutual aid association:
1. An order to compensate for losses to victims of automobile accidents;
2. An order to submit a written report on the operation of mutual aid
funds and other matters related to the mutual aid business;
3. A measure to have public officials under his/her command investigate
the state of business operations or accounting of the mutual
aid association; or
4. A measure to have public officials under his/her command inspect
account books or other documents.
(2) The Minister of Land, Transportation and Maritime Affairs shall, in the
event of intending to make an investigation or inspection
under the provisions of
paragraph (1), notify the mutual aid association of the details to be investigated or
inspected, date,
reasons for the investigation or inspection, etc. at least seven days prior
to the investigation or inspection; Provided, that the
same shall not apply to a case
requiring urgency or an case where it is deemed that the advance notice of the purpose
of investigation
or inspection may lead to failure in achieving the purpose of
investigation or inspection due to destruction of proof, etc.
(3)
Any public official who makes an investigation or inspection pursuant to
paragraph (1) shall produce a certificate indicating his/her
authority to the persons
concerned, and deliver, at the time of entry, the document indicating the name, time to
enter and purpose
for entry, etc. to the persons concerned.
Article 66 (Order for Improvement of Business of Mutual Aid Association)
The Minister
of Land, Transportation and Maritime Affairs may, when it is
deemed that rights and interests of victims of automobile accidents
and mutual aid
subscribers may be trespassed due to improper management of mutual-aid business or
poor financial standings of the
mutual aid association, order to take any of the following
measures:
1. Change of the method of execution of business;
2. Change of asset depositing institution;
3. Change of book value of assets;
4. Holding of reserves for poor assets; or
5. Curtailment of assets that are considered as worthless to be loss.
Article 67 (Restraints, Etc. on Officers and Officials of Mutual
Aid Association)
The Minister of Land, Transportation and Maritime Affairs may, when it is
deemed that the sound operation of a
mutual aid project is threatened due to officers or
officials of a mutual aid association falling under any of the subparagraphs,
request the
mutual aid association to discipline or dismiss the officer or official, or issue a
corrective order in regards to
the offense:
1. Where he/she has handled a business in violation of the mutual aid
regulations under Article 64 (2);
2. Where he/she has not complied with an order for improvement under
Article 66; or
3. Where he/she has failed to maintain the standard for financial
soundness under Article 68.
Article 68 (Maintenance of Financial Soundness)
(1) The mutual aid association shall maintain the standard for financial
soundness as provided by the Presidential Decree with respect
to the following matters
in order to secure payment capability of mutual aid funds and managerial soundness.
1. Matters on the appropriateness of capital;
2. Matters on the soundness of assets; and
3. Matters on securing liquidity.
(2) The Minister of Land, Transportation and Maritime Affairs may, when it is
deemed that managerial
soundness may be threatened due to the mutual aid association
failing to maintain the standards under paragraph (1), issue an order
to increase capital
or place restrictions on the owning of risky assets, such as securities, under the
conditions as prescribed
by the Presidential Decree.
Article 69 (Relation to Other Acts)
Except as provided for in this Act, the provisions related to the incorporated
body in the Civil Act and the provisions of Part
III, Chapter IV, Section 7 of the
Commercial Act shall apply mutatis mutandis with respect to mutual aid associations.
CHAPTER
VIII MEDIATION OF DISPUTE OVER MUTUALAID
Article 70 (Mutual Aid Dispute Mediation Committee)
(1) The Mutual Aid Dispute Mediation Committee (hereinafter referred to as
the "Committee") shall be established under the Ministry of Land, Transportation and
Maritime Affairs in order to mediate disputes
between the victims of automobile
accidents or any other interested parties and the following associations:
1. Associations running the mutual aid business under Article 60 and their
federation;
2. The mutual aid association under Article 61; or
3. Any person who runs the mutual aid business under Article 51 of the
Trucking Transport Business Act.
(2) The Committee shall, upon request from parties involved in a dispute,
mediate the disputes falling under any of the following
subparagraphs:
1. Dispute related to a mutual aid contract;
2. Dispute related to the payment of mutual aid funds;
3. Dispute related to the assessment of any damage suffered by a victim of
an automobile accident;
4. Dispute for which an application may be filed with the Committee for
mediation in accordance with the provisions of other Acts
and subordinate statutes; and
5. Other disputes over matters prescribed by the Presidential Decree in
connection with mutual aid.
Article 71 (Composition, etc. of Committee)
(1) The Committee shall consist of not more than 15 members including one
chairman.
(2) The members of the Committee shall be commissioned by the Minister of
Land, Transportation and Maritime Affairs among persons
falling under any of the
following subparagraphs:
1. Any person who is or has served in the post of associate professor or
higher teaching jurisprudence at a college under the Higher
Education Act;
2. Any person who is qualified as a judge, prosecutor or lawyer;
3. Any doctor who is qualified as a medical specialist;
4. Any person who is or has been an officer of the Korea Consumer Board
under the Framework Act on Consumers or the consumers' organization
registered
under Article 29 of the same Act;
5. Any person who has worked for a traffic-related institution or
organization for not less than 15 years; and
6. Any person of profound learning and experience in the traffic field,
traffic-related laws or damage assessment.
(3) The chairman shall be elected from among the members.
(4) The terms of office for the members shall be two years and they may
be
reappointed.
(5) Necessary matters concerning the organization and management for the
operation and conduct of administrative affairs of the
Committee shall be determined by
the Presidential Decree.
Article 72 (Procedures for Mediation, etc.)
(1) In the event that the Committee receives an application for dispute
mediation, it shall immediately notify the other party of
the details of the application.
(2) The Committee shall prepare a draft mediation within 30 days from the date
of receipt of the
application for dispute mediation: Provided, that the Committee may
extend such period within the limit of 30 days in the event
of unavoidable
circumstances.
(3) When the Committee extends the period under the proviso of paragraph (2),
it shall notify the relevant parties of the details
and reasons thereof.
Article 73 (Refusal and Notice of Mediation)
(1) When it is deemed inappropriate for the Committee to mediate a dispute in
the light of its nature or an application filed for
mediation is deemed to seek illegal
objectives, the Committee may refuse such mediation. In this case, the Committee shall
notify
the applicant of the reasons thereof.
(2) When the parties concerned files a suit, the Committee shall suspend the
mediation and notify the parties concerned thereof.
Article 74 (Effect, etc. of Mediation)
(1) The Committee shall, when it has prepared a draft mediation, promptly
deliver the draft mediation to each party concerned.
(2) The parties concerned shall, when they have received the draft mediation
under paragraph (1), notify the Committee as to whether
or not they accept it within 15
days from the date of receipt.
(3) The Committee shall, when each party concerned accepts the said draft
mediation, promptly draw up a protocol of mediation and
the chairman of the
Committee and each party concerned shall affix their signature or seal thereon.
(4) Where each party concerned
accepts the draft mediation, it shall be deemed
that the same agreement as the protocol of mediation has been made between the parties
concerned.
CHAPTER VIIII SUPPLEMENTARY PROVISIONS
Article 75 (Delegation of Authority)
(1) The Minister of Land, Transportation and Maritime Affairs may delegate
part of his/her authorities granted under this Act to
the Mayor/Do governor under the
conditions as prescribed by the Presidential Decree.
(2) The Mayor/Do governor may delegate part
of his/her authorities delegated
by the Minister of Land, Transportation and Maritime Affairs to the head of the
City/Gun/Gu with
the approval of the Minister of Land, Transportation and Maritime
Affairs.
Article 76 (Entrustment of Powers)
(1) The Minister of Land, Transportation and Maritime Affairs or the Mayor/Do
governor may entrust part of his/her authorities granted
under this Act to associations,
federations, mutual aid associations, Korea Transportation Safety Authority under the
Korea Transportation
Safety Authority Act, or specialized inspection institutions as
determined by the Presidential Decree under the conditions as prescribed
by the
Presidential Decree.
(2) The officers and employees of any association, federation, mutual aid
association, Korea Transportation Safety Authority under
the Korea Transportation
Safety Authority Act, or specialized inspection institution engaged in the businesses
entrusted pursuant
to paragraph (1) shall, in the application of Articles 129 through 132
of the Criminal Act, be considered as public officials.
Article 77 (Consultations on Standards for Charges or Fares and Rates)
In the event that the Mayor/Do governor who has been delegated
with the
authority to decide the standards for charges, fares and rates referred to in Article 8 from
the Minister of Land, Transportation
and Maritime Affairs pursuant to Article 75 (1) sets
the standards for charges, fares and rates, the consultation with the Minister
of Strategy
and Finance under Article 4 (2) of the Price Stabilization Act shall be considered as
having been fulfilled.
Article 78 (Consultations, Conciliation, etc.)
(1) The Mayor/Do governor who has been delegated with the authority in
respect to change of business plan, order for improvement
and conciliation of business
areas of passenger transport business, etc. pursuant to Article 75 (1) from the Minister
of Land,
Transportation and Maritime Affairs shall, in the event that change of business
plan, order for improvement and conciliation of
business areas of passenger transport
business, etc. extend over two or more Cities/Dos, hold consultation with the respective
Mayors/Do governors under the conditions as determined by the Ordinance of the
Ministry of Land, Transportation and Maritime Affairs.
In this case, if they fail to reach
an agreement, they shall apply for conciliation to the Minister of Land, Transportation
and
Maritime Affairs.
(2) The Minister of Land, Transportation and Maritime Affairs shall, in the
event that he/she has received an application under
paragraph (1), conciliate the dispute
under the conditions as determined by the Ordinance of the Ministry of Land,
Transportation
and Maritime Affairs and notify the result to the Mayors/Do governors
concerned. In this case, if the Mayors/Do governors concerned
do not accept the
conciliated details, the Minister of Land, Transportation and Maritime Affairs may
directly dispose of the details
as conciliated.
(3) The matters necessary for the application procedures for conciliation under
paragraph (1) shall be determined by the Ordinance
of the Ministry of Land,
Transportation and Maritime Affairs.
Article 79 (Report, Inspection, etc.)
(1) The Minister of Land, Transportation and Maritime Affairs or the Mayor/Do
governor may order the passenger transport service
providers to submit a report or
documents on the business or matters relating to the ownership or use of automobiles
when he/she
deems it necessary.
(2) The Minister of Land, Transportation and Maritime Affairs or the Mayor/Do
governor may have public official under his/her control
inspect the books, documents or
other articles of a passenger transport service provider or a transport employee, or have
him/her
question a person concerned.
(3) Public officials under paragraph (2) shall carry certificates indicating their
authorities and produce them to the persons concerned.
Article 80 (Fees)
(1) Any person who seeks to apply for a license, registration, permission or
authorization, or make a report under this Act shall
pay fees as determined by the
Ordinance of the Ministry of Land, Transportation and Maritime Affairs: Provided, that
where the
Minister of Land, Transportation and Maritime Affairs entrusts his/her powers
pursuant to Article 68 (1), fees as determined by
the entrusted agency shall be paid to
the entrusted agency.
Article 81 (Ban on Commercial Transport by Private Cars)
(1) Automobiles other than automobiles for business (hereinafter referred
to as
"private cars") shall not be provided or rented for compensation (including expenses
necessary for the operation of an automobile)
for transport: Provided, that this shall not
apply to the case falling under any of the following subparagraphs:
1. Where people carpool for their commute to and from work; and
2. Where it falls under a natural disaster, emergency transport, operation
for educational purposes, or any other cause as determined
by the Ordinance of the
Ministry of Land, Transportation and Maritime Affairs and where permission from the
head of the City/Gun/Gu
(referring to the head of autonomous Gu; hereinafter the same
shall apply) is granted.
(2) The subjects and period of permission on commercial transport referred to
in paragraph (1) 2 shall be determined by the Ordinance
of the Ministry of Land,
Transportation and Maritime Affairs.
Article 82 (Ban on Operation of Routes by Private Automobile)
(1) A private automobile shall not operate on any set route for the
purpose of
soliciting passengers: Provided that this shall not apply to the case falling under any of
the following subparagraphs:
1. Where a private automobile is operated for the users of schools,
educational institutions, kindergartens, childcare facilities
under the Infant Care Act,
hotels, educational, cultural, artistic and athletic facilities (excluding the facilities
attached to
supermarkets under subparagraph 3 of Article 2 of the Distribution Industry
Development Act), religious facilities, financial institutions,
or hospitals; and
2. Where it falls under the causes as prescribed by the Presidential Decree,
such as the area in which there is no public transportation
means, and where the
permission from the head of City/Gun/Gu is granted.
(2) Matters necessary for the objects and requirements,
etc. for permission
under paragraph (1) 2 shall be determined by the Ordinance of the Ministry of Land,
Transportation and Maritime
Affairs.
Article 83 (Restriction or Ban on Use of Private Automobile)
(1) Where a person using a private automobile falls under any of the
following
subparagraphs, the Mayor/Do governor may restrict or ban the use of the private
automobile for a specified period not
exceeding six months:
1. Where he/she operates the passenger transport business using a private
autmobile; and
2. Where he/she uses or rents a private automobile for commercial
transport without permission referred to in Article 81 (1) 2.
(2) The provision of Article 89 shall apply mutatis mutandis to the case where
the Mayor/Do governor bans the use of a private automobile
pursuant to paragraph (1).
Article 84 (Age Limit, etc. of Automobiles)
(1) An automobile used for the passenger transport business shall not be
operated in excess of the age limit determined by the Presidential
Decree depending on
the classification of automobiles and passenger transport services (hereinafter referred
to as "vehicle age"):
Provided, that the Mayor/Do governor may, when requirements for
safety are met as provided in the Presidential Decree, extend the
vehicle age for a fixed
period not exceeding two years taking into consideration the operating conditions for
automobiles of the
passenger transport services in the City/Do.
(2) An automobile appropriated for the license, registration, increase of
automobiles
or their substitution (referring to substituting automobiles of which the
vehicle age expired with other automobiles) or scrapping
in the passenger transport
service shall not exceed the age limit prescribed by the Presidential Decree (hereinafter
referred to
as the "vehicle appropriation term") within the limit not exceeding three
years according to the type of automobiles and the type
of the passenger transport
services: Provided, that the same shall not be applicable to any of the following cases:
1. Where a person, who has obtained a license or made a registration for
route passenger transport business, obtains a license or
makes a registration for the
change of business type with the relevant retaining vehicles within the scope of the
route passenger
transport business; or
2. Where a route passenger transport service provider prescribed by the
Presidential Decree substitutes or scraps automobiles and
appropriates automobiles of
vehicle age not exceeding six years and lower than that of the existing automobiles for
the passenger
transport business.
(3) Where it is deemed significantly difficult to supply automobiles due to
inevitable causes such as the stoppage of automobile
manufacture and assembly, or
delayed delivery, the Minister of Land, Transportation and Maritime Affairs may extend
the vehicle
age referred to in paragraph (1) within the limit of six months.
(4) Matters necessary with respect to the vehicle age and requirements
for
extension under paragraph (1), and the initial date in reckoning and method to calculate
the vehicle appropriation terms under
paragraph (2) shall be prescribed by the
Presidential Decree.
Article 85 (Cancellation, Etc. of License)
(1) Where a passenger transport service operator falls under any of the
following subparagraphs, the Minister of Land, Transportation
and Maritime Affairs or
the Mayor/Do governor (limited to the terminal business and rental car business, and
passenger transport
business prescribed by the Presidential Decree) may cancel the
license, permission, authorization or registration, order him/her
to suspend the whole or
part of his/her business for a fixed period of not more than six months, or order him/her
to change his/her
business plan which accompanies closing routes or reducing the
number of automobiles in operation: Provided, that in the cases of
subparagraphs 4 and
6, the license or registration shall be cancelled: 1. Where he/she fails to implement licensed, permitted, authorized or
registered matters without any justifiable cause;
2. Where uncertainty of operating the business, considerable aggravation
in financial status or inappropriateness in continuing the
business for any other reasons,
which impedes upon traffic conveniences of the general public;
3. Where he/she has caused high causalities due to a serious traffic
accident or frequent traffic accidents;
4. Where he/she has rented automobiles licensed or registered for the
passenger transport business to others;
5. Where he/she has obtained a license (including alteration of license) or
registered for passenger the transport business, rental
car business or terminal business
under Articles 4, 28 or 36 by fraudulent or other illegal means;
6. Where he/she has conducted business in violation of the type of
business, routes, operating system, business area, scope of business,
period of license
(only for limited license), etc. licensed or registered under Articles 4, 28 or 36;
7. Where he/she fails to meet the licensing or registration standards for
the passenger transport business, rental car business or
terminal business referred to in
Articles 5, 29 or 37: Provided, that this shall not apply to the case where he/she meets
the standards
within three months;
8. Where a transport business operator, rental car business operator or
terminal operator falls under any of subparagraphs of Article
6: Provided, that this shall
not apply to the case where any officer of a legal person who falls under such cause is
replaced within
three months, or where a successor transfers the passenger transport
service to another within sixty days from the date of death
of the predecessor;
9. Where he/she fails to commence transportation within the date or
period set by the Minister of Land, Transportation and Maritime
Affairs or the
Mayor/Do governor in violation of Article 7;
10. Where he/she has failed to report on charges or fares, or their changes,
and has received excessive fares or refused free transportation
of a child under the age
of six in violation of Article 8;
11. Where he/she has failed to report on transportation terms or rent terms,
or their changes, or has failed to implement the reported
terms in violation of Article 9
or 31;
12. Where he/she has changed his/her business plan without obtaining a
license or making registration or report in violation of Article
10 (including the case
applied in Article 35):
13. Where he/she has violated the ban on use of other's name referred to in
Article 12 (including the case where it is applicable
mutatis mutandis under Article 35);
14. Where he/she has entrusted management of the passenger transport
business without making a report, or to a person who is not
a passenger transport
business operator in violation of Article 13;
15. Where he/she has transferred or taken over the passenger transport
business or merged with a legal entity without obtaining authorization
or making a
report in violation of Article 14 (including the cases applied in Articles 35 and 48);
16. Where he/she has suspended or closed the passenger transport business
without obtaining authorization or making a report, or
has failed to restart the business
after expiry of the period of suspension or closure of business in violation of Article 16
(including
the cases applied in Articles 35 and 48);
17. Where he/she has failed to indicate automobiles for business in
violation of Article 17;
18. Where he/she has failed to take measures under Article 19 or has failed
to make a report or has made a false report on an accident;
19. Where he/she has made a violation not less than three times within one
year after he/she was fined for violating the relevant
matters under Article 21 (1);
20. Where he/she has had a person without qualification as a transport
employee engage in driving service in violation of Article
21 (2);
21. Where he/she has failed to take measures under Article 21 (5);
22. Where he/she has failed to execute an order for improvement or for
operation under Articles 23, 33 or 44;
23. Where he/she has failed to take measures necessary for training of
transport employees under Article 25 (2);
24. Where he/she has failed to meet the standards for registration under
Article 29 imposed at the time of registration pursuant
to Article 28 within the grace
period;
25. Where he/she has entrusted the management of a rental car business
without obtaining permission on managerial entrustment or
has entrusted the
management to a person who is not a rental car business operator in violation of Article
32;
26. Where a rental car business operator has transported passengers for
compensation or mediated such transportation in violation
of Article 34 (3);
27. Where he/she executes construction work on terminal facilities without
authorization on the execution of construction (including
alteration authorization)
referred to in Article 38 (1) or has failed to complete the construction work within the
prescribed period;
28. Where he/she begins to use a terminal without obtaining facility
confirmation referred to in Article 38 (4) in violation of Article
39;
29. Where he/she has failed to begin using a terminal within the period as
determined by the Mayor/Do governor in violation of Article
39 without any justifiable
reason;
30. Where he/she has executed the terms for terminal utilization without
making a report or a report on amendment in violation of
Article 40;
31. Where he/she has violated matters for the terminal business operator to
be observed under Article 42 (1) or has failed to execute
an order for suspension or
correction under Article 42 (3);
32. Where he/she has modified the location, size, structure or equipment of
a terminal without obtaining authority for modification
under Article 43;
33. Where he/she has failed to submit a report or documents under Article
79 (1) or has submitted false report or documents;
34. Where he/she has refused, interrupted or evaded inspection under
Article 79 (2) or has refused answering to questions or made
a false statement;
35. Where he/she has violated restriction or ban on the use of private
automobiles under Article 83;
36. Where he/she has operated automobiles in excess of the vehicle age
under Article 84: Provided, that the same shall not apply
to the case where an
automobile is operated in excess of the vehicle age pursuant to paragraph (3) of the
same Article;
37. For passenger transport businesses as determined by the Presidential
Decree, where a transport employee's driver's license has
been cancelled or the
qualification for transport employee has been cancelled as he/she falls under
subparagraph 2 or 3 of Article
87 (1);
38. Where he/she has violated conditions accompanying a license,
permission or authorization under this Act;
39. Where he/she has operated business during the period for business
suspension in violation of an order to suspend business under
this Article; or
40. Where he/she has failed to execute an order to change a business plan
ensuing from closure of a route or reduction of automobiles
under this Article.
(2) "Serious traffic accident" under paragraph (1) 3 means a single accident that
has caused casualties exceeding
the number determined by the Presidential Decree and
"frequent traffic accidents" under the same paragraph means a case falling
under the
number of traffic accidents or traffic accident index (referring to the ratio of the number
of traffic accidents to the
number of possessed automobiles of a passenger transport
service operator) as determined by the Presidential Decree.
(3) The standards
and procedures for dispositions referred to in paragraph (1) or
other necessary matters shall be determined by the Presidential
Decree.
(4) The Minister of Land, Transportation and Maritime Affairs or the Mayor/Do
governor may, when any transport business
operator as prescribed by the Presidential
Decree falls under any of the following subparagraphs, give demerits varying according
to the details and degree of offense as provided by the Presidential Decree, and if the
accumulated demerits exceed a certain amount
of points during the period as set by the
Presidential Decree, cancel the license or issue an order that is accompanied with
reduction
of automobiles, etc. under the conditions as provided by the Presidential
Decree.
1. Where he/she has been given a disposition pursuant to this Act in
violation of Article 21;
2. Where a transport business operator that owns an automobile and
drives it first-hand has been punished pursuant to this Act in
violation of Article 26; or
3. Where a transport employee employed by a transport business operator
has been punished pursuant to this Act in violation of Article
26.
Article 86 (Hearings)
In the event that the Minister of Land, Transportation and Maritime Affairs or
the Mayor/Do governor intends to cancel a license
or registration for a passenger
transport business, rental car business or terminal business referred to in Article 4, 28 or
36
pursuant to Article 85 (1), he/she shall hold a hearing.
Article 87 (Cancellation, Etc. of Qualifications for Transport Employees)
(1) Where a person who has obtained qualifications referred to in Article 24 (2)
and (3) falls under any of the following subparagraphs,
the Mayor/Do governor may
cancel his/her qualification or suspend validity of his/her qualifications for a specified
period not
exceeding six months:
1. Where he/she falls under any of subparagraphs 1 through 4 of Article 6;
2. Where he/she has obtained qualifications referred to in Article 24 (2)
by illegal means;
3. Where he/she falls under Article 24 (4);
4. Where he/she fails to fulfill matters to be observed under Article 26 (1);
5. Where he/she has violated not less than three times within one year
from the date on which he/she was subjected to a disposition
taken to impose a fine for
negligence against him/her for violating the matters to be observed under Article 26 (2);
6. Where he/she has caused casualties exceeding the number as
determined by the Presidential Decree due to a traffic accident;
7. Where he/she has committed wrongdoing or unjust acts in relation to
driving service; and
8. Where he/she has violated this Act or an order or disposition under this
Act.
(2) Matters necessary for the standards and procedures for dispositions referred
to in paragraph (1) shall be determined by the
Ordinance of the Ministry of Land,
Transportation and Maritime Affairs.
Article 88 (Disposition of Fines)
(1) The Minister of Land, Transportation and Maritime Affairs or the Mayor/Do
governor may, in the event that he/she makes the disposition
of business suspension
against a passenger transport service provider as the passenger transport service
provider falls under any
of subparagraphs of Article 85 (1) and the disposition of
business suspension threatens to cause much inconvenience to users of
such passenger
transport service or impair public interests, impose and collect fines not exceeding fifty
million won in lieu of
the disposition of business suspension.
(2) The amount of fines, types and severity of an offense on which the amount
of fines
under paragraph (1) depends on and other necessary matters shall be determined
by the Presidential Decree.
(3) Where a person who has been subjected to a disposition of fines pursuant to
paragraph (1) fails to pay fines within the time
limit, the Minister of Land,
Transportation and Maritime Affairs or the Mayor/Do governor shall collect them
pursuant to the example
of dispositions on default of national or local taxes.
(4) Fines collected pursuant to paragraph (1) shall not be used for purposes
other than those listed in the following subparagraphs:
1. Compensation for losses incurred during the operation of out-of-the-
way routes or routes yielding no returns, which are determined
by the Presidential
Decree;
2. Construction and operation of facilities for cultivation and training of
or improving the quality of transport employees and facilities
for carrying out guidance
service for transport employees;
3. Financing funds necessary for the construction of terminals established
by local governments;
4. Maintenance and expansion of terminal facilities;
5. Projects necessary for the managerial improvement of passenger
transport services or the development of passenger transport services;
6. Subsidies or loans for purposes listed in any of subparagraphs 1
through 5; or
7. Financing projects implemented by local governments for prevention
or eradication of offenses under this Act.
(5) The Mayor/Do shall establish a plan on how to administer the money
collected as fines under the conditions as provided by the
Ordinance of the Ministry of
Land, Transportation and Maritime Affairs and execute the plan.
(6) The procedures and targets for
using fines and the establishment and
execution of the operational plan referred to in paragraphs (4) and (5), and other
necessary
matters shall be determined by the Presidential Decree.
Article 89 (Suspension of Use of Automobile)
(1) A transport business operator shall return his/her registration certificate and
registration number plate of the automobile
to the Mayor/Do governor in the following
cases:
1. Where the term set for a restricted license pursuant to Article 4 (3) has
expired;
2. Where suspension or closure of business referred to in Article 16 (1)
and (2) (including the case applied under Article 36) has
been permitted or reported; and
3. Where he/she has been subjected to a cancellation of license,
registration, permission or authorization, a disposition of business
suspension or an
order for changes in business plan that accompanies reduction of automobiles pursuant
to Article 85 (1).
(2) Where a transport business operator fails to fulfill the provision of
paragraph (1), the Mayor/Do governor shall keep in custody
the registration certificate
and registration number plate of the automobile.
(3) The Mayor/Do governor shall return the registration certificate and
registration number plate that a transport business operator
returned pursuant to
paragraph (1) in the following cases:
1. Where the period for business closure referred to in Article 16
(including the case applied under Article 35) expires; and
2. Where the period for disposition of business suspension referred to in
Article 76 (1) expires.
(4) A transport business operator who been returned the automobile registration
number plate pursuant to paragraph (3) shall attach
the plate to the automobile and have
it sealed by the Mayor/Do governor.
CHAPTER X PENAL PROVISIONS
Article 90 (Penal Provisions)
A person who falls under any of the following subparagraphs shall be punished
by imprisonment for not more than two years or a fine
not exceeding twenty million
won:
1. A person who operates a passenger transport business without a license
or registration referred to in Article 4 (1) or acts as
a passenger transport business using
automobiles other than automobiles as prescribed in Article 2 (referring to trucks,
special
automobiles and two-wheeled vehicles referred to in Article 3 of the Automobile
Management Act);
2. A person who has obtained a license for or registered a passenger
transport business referred to in Article 4 (1) by illegal means;
3. A person who has violated the ban on use of other's name referred to in
Article 12 (including cases applied under Article 36);
4. A person who operates a rental car business without registration
referred to in Article 28 (1);
5. A person who has registered as a rental car business referred to in
Article 28 (1) by illegal means;
6. A person who has entrusted the management of a rental car business
without permission on managerial entrustment referred to in
Article 32 (1) or with
permission on managerial entrustment obtained by illegal means, and a person who has
been entrusted with
management from such person;
7. A rental car business operator who transports passengers for
compensation using automobiles for business or mediates such transportation
in
violation of Article 34 (3);
8. A person who provides or rents private cars for compensation in
violation of Article 81;
9. A person who operates private cars on the set routes for the purpose of
soliciting passengers in violation of Article 82 (1);
and
10. A person who has operated passenger transport services during the
period disposed for business suspension in violation of Article
85 (1).
Article 91 (Penal Provisions)
A person who operates a terminal business without a license (including
alteration license) referred to in Article 36 or obtains
a license (including alteration
license) by illegal means shall be punished by imprisonment for not more than one year
or a fine
not exceeding ten million won.
Article 92 (Penal Provisions)
A person who falls under any of the following subparagraphs shall be punished
by a fine not exceeding ten million won:
1. Deleted; 2. A person who has failed to report the terms of transportation referred to
in Article 9 (1) or has failed to fulfill the reported
terms of transportation;
3. A person who has failed to obtain permission or has changed a business
plan without authorization, registration or report referred
to in Article 10 (including the
case applied under Article 35);
4. A person who has entered or changed a joint transport agreement in
violation of Article 11 (including a case applied under Article
35);
5. A person who has entrusted management of a passenger transport
business without report on managerial entrustment referred to in
Article 13 (1) or by
making a false report thereon;
6. A person who has transferred or taken over the passenger transport
business or merged with a legal person without obtaining authorization
or making the
report referred to in Article 14 (including where a case applied under Articles 35 and
48);
7. Deleted; 8. A person who has suspended or closed the passenger transport service
without obtaining permission or making the report referred
to in Article 16 (including
the case applied under Articles 35 and 48);
9. A person who has failed to report the rental terms referred to in Article
31 (1) or failed to fulfill the reported rental terms;
10. A person who has used rented automobiles for transportation for
compensation or subleased them in violation of Article 34 (1);
11. A person who has made arrangements for a driver in violation of
Article 34 (2);
12. A person who has commenced using a terminal without having the
facilities confirmed in violation of Article 38 (4);
13. A person who has failed to report the terms for utilization referred to in
Article 40 (1) or violated the reported terms for
utilization;
14. A person who has failed to obtain authorization on user fees for
facilities pursuant to Article 41; and
15. A person who has changed the location, size, structure and equipment
of a terminal without obtaining the authorization referred
to in Article 45.
Article 93 (Joint Penal Provisions)
Where the representative of a legal person or the agent or any employee of a
legal person or an individual commits an offense listed
in Articles 81 through 83 in
connection with the business of the legal person or individual, a fine listed in the
respective Article
shall be imposed on the legal person or individual in addition to the
punishment of the offender: Provided, that the same shall
not apply in the event that the
legal person or the individual has made proper efforts and supervision to prevent such
offense.
Article 94 (Fines for Negligence)
(1) A person who falls under any of the following subparagraphs shall be
punished by a fine for negligence not exceeding ten million
won:
1. A person who has failed to report charges or fares in violation of
Article 8;
2. A person who has failed to report the succession under Article 15 (1)
(including the case applied under Articles 35 and 48);
3. A person who has failed to receive the total amount of transportation
receipts from a transport employee in violation of Article
21 (1);
4. A person who has failed to comply with improvement corrective order
under Article 66 (including the case applied under Article
60 (2); or
5. A person who has failed to comply with an order to discipline or
dismiss officers or employees, or a corrective order under Article
67 (including the case
applied under Article 60 (2)).
(2) A person who falls under any of the following subparagraphs shall be
punished by a fine for negligence not exceeding five million
won:
1. A person who has collected fares from infants in violation of Article 8
(4);
2. A person who has failed to indicate automobiles for business in
violation of Article 17;
3. A person who has failed to make a report referred to in Article 21 (1) or
has made a false report;
4. A person who has failed to notify the present status of employing
transport employees in violation of Article 22;
5. A person who has failed to execute an order for improvement or
operation under Article 23, 33 or 44;
6. A person who has been engaged in driving service for the passenger
transport business without fulfilling the requirements for
transport employees referred
to in Article 24 (1) and (2);
7. A person who has failed to begin using a terminal within the period as
determined by the Mayor/Do governor without any justifiable
reasons in violation of
Article 39;
8. A person who has violated an order under Article 42 (3);
9. A person violates an order to use a terminal referred to in Article 45;
10. A person who has not executed an order for change of articles of
association, etc. under Article 56;
11. A person who has failed to make a report or made a false report, or who
has refused, interrupted or evaded investigation or inspection
referred to in Article 65
(1) (including the cases applied under Article 60 (2));
12. A person who has failed to make a report referred to in Article 79 (1) or
has made a false report;
13. A person who has failed to submit documents under Article 79 (2) or
submitted false documents;
14. A person who has refused, interrupted or evaded responding to
questions or inspection under Article 79 (2) without justifiable
reasons;
15. A person who has violated an order restricting or banning the use of
private automobiles referred to in Article 83; and
16. A person who has failed to return his/her automobile registration
certificate and registration number plate in violation of Article
89 (1).
(3) A person who has violated the provisions of Article 26 shall be punished by
a fine for negligence not exceeding 500
thousand won.
(4) A fine for negligence referred to in paragraphs (1) through (3) shall be
imposed and collected by the Minister
of Land, Transportation and Maritime Affairs or
the Mayor/Do governor under the conditions as determined by the Presidential Decree.
(5) Deleted.
(6) Deleted.
(7) Deleted.
Article 95 (Special Cases for Application of Provisions of Fines for Negligence)
In applying the provisions of fines for negligence
listed in Article 94, no fine
for negligence shall be imposed for the offense on a person to whom a penalty has been
imposed pursuant
to Article 88.
ADDENDA
(1) (Enforcement Date)
This Act shall enter into force six months after the date of its promulgation.
(2) (Special Example of Compensation for Reduction
of Automobiles by the
State)
In the compensation for reduction of automobiles pursuant to the amended
provisions of Article 50 (3), the state may support only
the expenses required for
compensating the reduction of automobiles exceeding a plan for supply of transport
capacity made according
to the amended provision of Article 5 (3).
(3) (Transitional Measures on Restriction on Transfer, Takeover and
Succession of Passenger
Transport Business)
With respect to restriction on transfer, takeover and succession of the passenger
transport business for which a license was acquired
prior to the date of enforcement of
this Act, the previous provisions shall govern notwithstanding the amended provisions
of Article
14 (3) and the proviso of Article 15 (1).
(4) (Transitional Measures on Penal Provisions)
The penal provisions applied to acts committed prior to the entry into force of
this Act shall be governed by the former provisions.
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