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ACT ON AGE DISCRIMINATION PROHIBITION IN EMPLOYMENT AND AGED EMPLOYMENT PROMOTION

ACT ON AGE DISCRIMINATION PROHIBITION IN EMPLOYMENT AND AGED EMPLOYMENT

PROMOTION

Act No. 4487, Dec. 31, 1991

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

Act No. 5454, Dec. 13, 1997

Act No. 5474, Dec. 24, 1997

Act No. 5882, Feb. 8, 1999

Act No. 6849, Dec. 30, 2002

Act No. 8116, Dec. 28, 2006

Act No. 8372, Apr. 11, 2007

Act No. 8472, May 17, 2007

Act No. 8962, Mar. 21, 2008

CHAPTER

General Provisions

Article 1 (Purpose)

The purpose of this Act is to prohibit employment discrimination based on age without a reasonable reason, and contribute to employment security of the aged and development of national economy by supporting and promoting their employment suited to their abilities. Article 2 (Definition)

The terms in this Act shall be defined as follows :

1. ßÖThe agedß×mean persons whose age are equal to or above the age determined by the Presidential Decree taking into accounts the composition of population and workers; 1-2. "The semi-aged" mean persons of whose age are above the age determined by the Presidential Decree and who are not the aged;

2. ßÖEmployerß×means the person who carries on a business hiring the workers;

3. ßÖWorkerß×means the worker as prescribed in Article 2(1)1 of the Labor Standards Act; and

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4. ßÖStandard employment rateß×means the rate of the aged required to hire in proportion to his regular workers as determined by the Presidential Decree classified by the type of a business in consideration of the current state, employment status, etc. of the aged in order to promote the employment of the aged.

Article 3 (Government Responsibility)

The Government shall devise and implement an anti-age discrimination policy with the aim of eliminating practice of age discrimination in employment, and pursue needed policies in an effective and comprehensive way, such as establishing and implementing aged employment promotion measures, vocational skills development training, etc. with the aim of improving the understanding of employers and the general public about the employment of the aged and enhancing aged employment promotion and job security.

Article 4 (Employer's Obligation)

The employer shall make efforts to eliminate employment discrimination based on age and provide employment opportunity for the aged suited to their abilities by developing their vocational skills, improving working conditions and job, and also to increase the employment of the aged by extending mandatory retirement age.

Article 4-2 Deleted

Article 4-3 (Establishment of the Aged Employment Promotion Basic Plan)

(1) The Minister of Labor shall establish the Basic Plan for the Aged Employment Promotion (hereinafter referred to as "the basic plan") in consultation with the heads of central agencies concerned every five years.

(2) The basic plan shall include the provisions of the following subparagraphs:

1. The current state and prediction for the aged;

2. The vocational Skills development of the aged;

3. The improvement method of employability including job placement, reemployment, transfer support, etc. of the aged; and

4. Other major measures concerning the employment promotion of the aged.

(3) When establishing the basic plan, the Minister of Labor shall go through a deliberation of an Employment Policy - 3 -

Deliberative Council (hereinafter referred to as "an Employment Policy Deliberative Council") pursuant to Article 6 of the Framework Act on Employment Policy.

(4) The Minister of Labor, when deemed necessary, may ask the heads of the administrative agency concerned or public agency to submit the necessary data for establishing a basic plan.

Article 4-4 (Age Discrimination Prohibition in Recruitment, Employment, etc.)

(1) Employers shall not discriminate against a worker and a person who intends to be a worker based on age

without a reasonable reason in each of the following subparagraphs:

1. Recruitment and employment;

2. Provision of money and valuables aside from wages, and benefits package;

3. Education and training;

4. Disposition, change of position and promotion; and

5. Retirement and dismissal (2) When applying paragraph (1), if an application of a standard aside from age without a reasonable reason leads to a result particularly unfavorable to a certain age group, it shall be considered age discrimination. Article 4-5 (Exception to Discrimination Prohibition) In case falling under any of the following subparagraphs, it shall not be considered age discrimination under Article 4-4:

1. A case a certain age group is inevitably required in consideration of the characteristic of a duty;

2. A case there is a reasonable difference in wages, or money and valuables, and benefits package aside from wages, considering the difference in a continuous service period;

3. A case a retirement age is set in labor contracts, work rules, collective agreements, etc. according to this Act or other laws; and

4. A case support measures are implemented to maintain and promote the employment of a certain age group under this Act or other laws

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Article 4-6 (Notification of Petition and Recommendation) (1) A person who suffered from age discrimination as a result of violation of age discrimination prohibition in Article 4-4 (hereinafter referred to as a "victim") may file a petition to the National Human Rights Commission according to Article 30 of the National Human Rights Commission Act.

(2) After investigating a petition in paragraph (1), in case determining there is age discrimination and recommending a remedy, etc. to the chief of the assigned institute, organization or inspection agency, the National Human Rights Commission shall notify the Minister of Labor as well of the contents of the remedy. Article 4-7 (Redress Order)

(1) The Minister of Labor may issue a redress order independently or upon the victim's request if an employer in receipt of a recommendation, including a remedial order, etc., pursuant to Article 4-6 (2) from the National Human Rights Commission fails to comply with such recommendation without any legitimate grounds, or falls under any of the following subparagraphs, and the degree of injury is believed to be serious.

1. Failing to carry out recommendations in relation to age-discriminatory acts against a multiple number of victims;

2. Failing to carry out recommendations in relation to repeated age-discriminatory acts;

3. Intentionally failing to carry out recommendations so that the victim would be subject to disadvantages; and

4. Other cases determined by the Ordinance of the Ministry of Labor that a redress order is needed, considering the content, scale, etc. of damage

(2) A redress order under paragraph (1) shall include the matters of the following subparagraphs:

1. To discontinue the age-discriminatory act;

2. To restore the injured party to his or her original state;

3. To take measures to prevent further recurrence of age- discriminatory acts; and

4. To take other measures necessary to redress age-discriminatory acts

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(3) When issuing a redress order under paragraph (1) upon a victim's request, the redress order shall be issued within three months within the receipt date of the request.

(4) When issuing a redress order pursuant to paragraph (1), the Minister of Labor shall a letter stating the matters of the following subparagraphs to the employer and victim concerned respectively:

1. Reason of a redress order;

2. Content of a redress order;

3. Period of a redress; and

4. Procedure of dissatisfaction with a redress order (5) Other necessary matters pursuant to paragraph (1), including the procedure of redress orders, shall be determined by the Presidential Decree

Article 4-8 (Request, Etc. for Progress Report on Implementation of Redress Order)

(1) The Minister of Labor may request an employer who has committed an age discrimination act to submit a progress report on a redress order pursuant to Article 4-7.

(2) If an employer who has committed an age discrimination act fails to perform what is prescribed in a redress order, a victim may report it to the Minister of Labor.

Article 4-9 (Prohibition of Dismissal and Other Disadvantageous Treatment)

An employer shall not give disadvantageous treatment to a worker, such as dismissal, transfer, disciplinary action, etc., on the ground that the worker has filed a petition, submitted materials, given answer and testimony, filed a lawsuit, made a report, etc. CHAPTER

Governmental Support for Employment for the Aged

Article 5 (Collection of Job Information)

The Minister of Labor shall collect job offer and job search information for the aged to promote the employment for the - 6 -

aged, enlarge opportunity of job offering and seeking and provide the related data to job applicants, employers and organizations concerned.

Article 6 (Vocational Skills Development Training for the Aged) (1) The Minister of Labor shall provide vocational skills development training for the aged as determined by the Presidential Decree to promote the employment and develop and improve the vocational skills of the aged.

(2) The Minister of Labor, when deemed necessary, shall take actions to provide an adaptation training as prescribed by the Ordinance of the Ministry of Labor including the safety and health contents prior to the employment of the aged to be readily fitted to working environments.

(3) For the matters concerning the protection of trainees taking vocational training and vocational skills development training for the aged, the Act on the Development of Occupational Abilities of Workers shall apply mutatis mutandis, Provided that physical and mental conditions of the aged shall be specially considered.

Article 7 (Employment Guidance for Employer)

(1) The Minister of Labor shall provide, if necessary, consultation, counsel and other assistances necessary for the employer who employs or intends to hire the aged about such technical matters of employment management of the aged in hiring, placement, working facilities and environments. (2) The Minister of Labor shall provide related information about the agedßÓs physical and mental conditions, vocational skills and other matters for the employers who employ or intend to employ the aged.

Article 8 (Support for Employer in Improvement of Working Environment, Education and Training for the Aged) (1) In case an employer provides necessary education and vocational training to promote the employment of the aged, the Minister of Labor may support, in whole or in part, those expenses. (2) When an employer improves facilities to fit to the employment of the aged, the Minister of Labor may support in whole or in part, the expenses.

(3) The payment for the support under paragraphs (1) and - 7 -

(2) shall be made from the budget(including the Employment Insurance Fund under the Employment Insurance Act), and the requisites concerning the payment shall be determined by the Minister of labor. Article 9 (Strengthening of Placement Service for the Aged) (1) The Government shall conduct appropriate placement service and vocational guidance such as counselling, vocational aptitude test for the aged in order to place the aged in employment suited to their abilities.

(2) The Government shall endeavour to arrange the related administrative organizations and facilities for vocational guidance and placement service for the aged.

(3) The Minister of Labor, mayors of special city and metropolitan city or provincial governor shall nominate the vocational guidance officer among their public officials to have him/her provide services of vocational guidance, job placement, etc. for the aged. (4) Matters necessary for the qualification of the vocational guidance officer, etc., shall be determined by the Minister of Labor.

Article 10 (Operation of Employment Information Centre for the Aged) (1) The Minister of Labor may run the Employment Information Centre for the Aged in the necessary regions to conduct effective placement service and vocational guidance for the aged, etc. (2) The Employment Information Centre for the Aged shall conduct the following activities :

1. Registration of job seeking and offering, vocational guidance and placement service for the aged;

2. Vocational adaptation training and education for the aged;

3. Technical counselling, education and guidance concerning the prolongation of mandatory retirement age, improvement of personnel and labor management and working

environments;

4. Publicity for employment promotion of the aged; and

5. Other activities necessary for the employment promotion of the aged.

Article 11 (Designation of the Aged Talent Bank)

(1) The Minister of Labor may designate the competent organization with professionals and facilities necessary for the vocational guidance and placement service for the aged as the - 8 -

Aged Talent Bank among non-profit or public organizations providing free placement service under Article 18 of the Employment Security Act.

(2) The Aged Talent Bank shall conduct the following activities :

1. Registration of job offering and seeking, vocational guidance and placement service for the aged;

2. Vocational counselling for the aged job seekers and reemployment counselling for the retired; and

3. Other business determined by the Minister of Labor as necessary for the employment promotion of the aged. (3) The Minister of Labor may provide the Aged Talent Bank with the imformation concerning job seeking and offering, local labor demand and supply situation, and other materials collected by the public employment security agency. (4) The Minister of Labor may support whole or part of necessary expenses within the limit of budget to the Aged Talent Bank.

(5) Necessary matters concerning designation criteria and procedures for the Aged Talent Bank prescribed in paragraph (1) shall be determined by the Presidential Decree.

Article 11-2 (Designation of a Job Center for the Aged Special Manpower)

(1) The Minister of Labor may designate a Job Center for the Aged Special Manpower (hereinafter referred to as "a Job Center for the Aged Special Manpower") which provides vocational guidance, job placement, etc. for those who are retired aged persons and determined by the Ordinance of the Ministry of Labor (hereinafter referred to as "the Aged Special Manpower") in consideration of their career, etc. (2) A Job Center for the Aged Special Manpower is designated among competent organizations with necessary professionals and facilities as a non-profit corporation or a public organization providing free placement service under Article 18 of the Employment Security Act.

(3) A Job Center for the Aged Special Manpower shall conduct activities of the following subparagraphs:

1. Registration of job offering and seeking, vocational counselling and job placement for the Aged Special - 9 -

Manpower;

2. the Aged Special Manpower's support for small and medium enterprise such as management counselling, voluntary service activities, etc.; and

3. Other necessary business for the employment of the Aged Special Manpower determined by the Presidential Decree. (4) The provisions of paragraph (3) through (5) of Article 11 shall be applicable to a Job Center for the Aged Special Manpower. In this case, the "Aged Talent Bank" shall be considered as a "Job Center for the Aged Special Manpower."

Article 11-3 (Cancellation of Designation, etc. of the Aged Talent Bank and a Job Center for the Aged Special Manpower) (1) The Minister of Labor may, if an organization designated as the Aged Talent Bank or a Job Center for the Aged Special Manpower falls under any of the following subparagraphs, cancel the designation under the conditions determined by the Ordinance of the Ministry of Labor:

1. In case the organization closes its free-of-charge job placement business;

2. In case the organization is ordered to suspend its business pursuant to Article 36 of the Employment Security Act; and

3. In case the organization has such reasons as poor business performance, etc. determined by the Minister of Labor.

(2) If an organization designated as the Aged Talent Bank or a Job Center for the Aged Special Manpower intends to close or shut down its business, the organization shall report this to the Minister of Labor under the conditions determined by the Ordinance of the Ministry of Labor.

Article 11-4 (Businesses to Promote the Employment for the Aged) (1) The Minister of Labor may carry on the businesses of the following subparagraphs for the employment promotion of - 10 -

the aged:

1. Creating social jobs which are appropriate for the aged;

2. Supporting the aged in establishing an independent business;

3. Supporting a job fair targeting the aged;

4. Necessary investigation and research for the policy establishment and institutional improvement concerning the employment promotion and job security of the aged;

5. Educating the employees of the related institutions such as the Aged Talent Bank, a Job Center for the Aged Special Manpower, etc. or nurturing needed human

resources;

6. Designating and implementing a period for the employment of the aged;

7. Designating and supporting a company excellent in the employment of the aged; and

8. Other necessary businesses for the employment promotion for the aged.

(2) Necessary matters concerning the implementation of businesses prescribed in subparagraphs of paragraph (1) shall be determined by the Presidential Decree.

CHAPTER

Employment Promotion and Security for the Aged

Article 12 (Employer's Responsibility for Employment for the Aged) The employer who employs above given numbers of employees determined by the Presidential Decree shall strive to employ the aged above the standard employment rate.

Article 13 (Establishment of EmployerßÓs Execution Plan for the Standard Employment Rate of the Aged)

(1) The employer prescribed in Article 12 shall submit the employment status of the aged every year to the Minister of Labor as prescribed by the Ordinance of the Ministry of Labor.

(2) The Minister of Labor may request to formulate and - 11 -

submit the plan for implementation of the standard employment rate determined by the Ordinance of the Ministry of Labor to the employer prescribed in Article 12 who employs less numbers of the aged than the standard employment rate.

(3) The Minister of Labor may recommend to modify the plan in case he deems the presented plan under paragraph (2) is inappropriate.

(4) The Minister of Labor, if necessary, may recommend appropriate execution of the plan to the employer who formulated the plan under paragraph (1).

Article 14 (Tax Credit, etc. for Employment Promotion for the Aged) (1) The exemption and reduction of tax shall be made in conformity with the Restriction of Tax Exemption and Reduction Act in case the employer employs the aged in addition more than the standard employment rate under Article 12.

(2) The Minister of Labor may provide an employment subsidy with the limit of the budget pursuant to the following subparagraphs:

1. An employment subsidy which is given for a certain period to an employer who newly employs an aged

person or employs many aged persons, or an employer who takes necessary measures for the employment

security of the aged;

2. In case an employer obtains the consent of the representative of workers and implements a system to reduce the amount of wages on the basis of a certain age, a point of continuous service or the wage amount with a condition to guarantee the employment beyond a certain age, an employment subsidy to workers under this system. In this case, the "representative of workers" means, if there is a trade union consisting of more than a half of workers, the representative of the trade union, and if not, it means a person representing a half of workers; and

3. An employment subsidy which is provided for an - 12 -

employer who is diagnosed by a specialized institution concerning the reorganization of the wage system, the redesign of duties (which means developing and

designing duties suitable for the aged or the semi-aged), etc. for the purpose of the employment security and promotion, etc. for the aged and the semi-aged.

(3) Matters concerning the conditions of the subsidy under paragraph (2) shall be determined by the Presidential Decree.

Article 15 (Selection, etc. of Priority Occupations) (1) The Minister of Labor shall select occupations (hereinafter referred to as the ßÖpriority occupationsß×) suitable for employment of the aged and the semi-aged through deliberation of the Employment Policy Council, and announce the selected priority occupations. (2) The Minister of Labor shall investigate and research matters necessary to develop priority occupations for promoting the employment of the aged and the semi-aged, and also shall arrange and distribute the related information.

Article 16 (Employment in Priority Occupations)

(1) The State and head of the local government, organizations falling under the conditions of government-invested institutions under Article 2 of the Framework Act on the Management of Government-Invested Institutions, which was abolished according to Article 2 of the supplementary rules of the Framework Act on the Management of Government-Invested Institutions, among organizations designated as a public institution in accordance with Article 4 of the Framework Act on the Management of Government-Invested Institutions, government- invested institution, government-contributed institution and government-funded and -entrusted institution(limited to institutions determined by the Minister of Labor) under the Framework Act on the Management of Government-invested Institutions shall employ preferentially the aged and the semi-aged in priority occupations of the above institutions under the conditions as prescribed by the Presidential Decree.

(2) An employer except the above institutions prescribed in - 13 -

paragraph (1) shall strive to employ preferentially the aged and the semi-aged in priority occupations.

Article 17 (Request for Employment, etc.)

(1) The Minister of Labor may request the employer who shows poor outcome of preferential employment for the aged and the semi-aged under Article 16 to present the reason, and request the employer whose reason is not justifiable (including those who do not present the reason) to enlarge the employment of the aged and the semi-aged. (2) The Minister of Labor may request the employer whose employment rate of the aged is less than the standard employment rate in spite of the request under paragraph (4) of the Article 13 to present the reason, and request the employer whose reason is not justifiable (including those who do not present the reason) to enlarge the employment of the aged and the semi-aged.

Article 18 (Proclamation and Suspension of Placement Service) For the person who did not follow the request of employment enlargement under Article 17 without any justifiable reason, the Minister of Labor may proclaim the above fact or suspend the service relating to employment such as vocational guidance and placement service, etc., which are provided by the public employment security agency.

CHAPTER

Mandatory Retirement Age

Article 19 (Mandatory Retirement Age)

The employer shall endeavor to make a mandatory retirement age above 60 years of age when the employer determines that of workers.

Article 20 (Preparation and Presentation, etc. of the Plan for Prolongation of Mandatory Retirement Age)

(1) An employer who employs more than a certain number of workers as determined by the Presidential Decree shall present the current state of the retirement system operation every year to the Minister of Labor as prescribed by the - 14 -

Ordinance of the Ministry of Labor.

(2) The Minister of Labor may request the employer who had determined the retirement age remarkably lower among the employers as prescribed in paragraph (1) to prepare and present the plan concerning the prolongation of retirement age. (3) The Minister of Labor may, if the plan presented by employer pursuant to paragraph (2) is considered as inappropriate, recommend the employer to modify it.

(4) In case the employer does not follow the modification recommendation prescribed in paragraph (2), the contents may be announced.

Article 21 (Reemployment of the Retired Person)

(1) In case the person whose age reaches at the retirement age wishes to be reemployed, employer shall strive to reemploy him in certain occupation suited to his working abilities. (2) In reemployment of the retired person, the previous working period necessary for the calculation for the severance pay under Article 34 of the Labor Standards Act and the consecutive working period to calculate the days of annual paid vacation under Article 60 of the Act may be excluded and the determination of wage may differ from the former if based on mutual agreement between the parties concerned.

Article 21-2 (Support for Reemployment of Those Retiring at Retirement Age)

The Minister of Labor may provide necessary supports such as the provision of subsidies to an employer who reemploys retired persons pursuant to Article 21 or takes other necessary measures to ensure the employment security of those who retired at retirement age.

Article 22 (Support on Prolongation of the Mandatory Retirement Age) The Minister of Labor shall cooperate with and support the enterprises for necessary counsel and recommendation in management of personnel and wage, etc., concerning the prolongation of the retirement age.

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CHAPTER

Supplementary Provisions

Article 23 (Report and Inspection)

(1) The Minister of Labor may, if necessary for the employment promotion of the aged, request employers, the Aged Talent Bank or a Job Center for the Aged Special Manpower to report on matters necessary for the implementation of this Act.

(2) The Minister of Labor, if necessary, may have a public official concerned to enter a workplace, the aged talent bank, a Job Center for the Aged Special Manpower or other facilities, and inspect the business situation or the relevant documents or articles.

(3) The Minister of Labor, if he intends to carry out an inspection under paragraph (2), shall notify in advance the employer, etc. of necessary matters for the inspection including the date, contents, etc. of the inspection, except in a case where it is urgent, or in the case of the advance notification, it is recognized that the goal could not be attained. (4) The public official concerned who enters and inspects under paragraph (2), shall carry with him an identification card showing his authority, and present it to the persons concerned.

(5) The Minister of Labor, if an inspection is done under paragraph (2), shall notify the employer, etc. of the result in writing.

Article 23-2 (Delegation of Authority)

The authority of the Minister of Labor as prescribed by this Act may be delegated partially to the head of the local labor offices or the local government under the conditions as prescribed by the Presidential Decree. Article 23-3 (Penal Provision)

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(1) An employer who gives a worker disadvantageous treatment, such as dismissal, transfer, disciplinary action, etc., in violation of Article 4-9, shall be punished by imprisonment for not more than two years or by a fine not exceeding ten million won. (2) An employer who discriminates in recruitment and employment based on age without a justifiable reason in violation of Article 4-4(1)1 shall be punished by a fine not exceeding five million won. Article 23-4 (Joint Penal Provisions)

(1) If a representative, agent, employer, or other employee of a juristic person has committed a violation on business of the juristic person as prescribed in Article 23-3, not only shall the violator be punished, but also the juristic person shall be fined in accordance with the relevant provisions: Provided that, this shall not apply when the juristic person has not been lazy in considerable attention and supervision on the business concerned to prevent the violation. (2) If an agent, employer, or other employee of a person has committed a violation on business of the person as prescribed in Article 23-3, not only shall the violator be punished, but also the person shall be fined in accordance with the relevant provisions: Provided that, this shall not apply when the person has not been lazy in considerable attention and supervision on the business concerned to prevent the violation.

Article 24 (Fine for Negligence)

(1) Any person who fails to carry out a redress order under Article 4-7 without a justifiable reason, shall be imposed upon negligence fine not exceeding 30 million won.

(2) Any person who falls under any of the following subparagraphs, shall be imposed upon negligence fine not exceeding 5 million won :

1. Any person who fails to follow the Minister of Labor's request to submit a progress report without a justifiable reason pursuant to Article 4-8(1);

2.A person who fails to submit the employment status of the aged under Article 13 (1) or the plan for implementation of the standard employment rate under paragraph (2) of the Article;

3. A person who fails to submit the operation state of the - 17 -

retirement age system under paragraph (1) of Article 20 or the plan concerning the prolongation of retirement age under paragraph (2) of the Article;

4. A person who fails to make a report, or who has made a false report under paragraph (1) of Article 23; and

5. A person who refuses, obstructs or evades the entrance or inspection under paragraph (2) of Article 23.

(3) The fine for negligence as referred to in paragraph (1) shall be imposed and collected by the Minister of Labor under the conditions as prescribed by the Presidential Decree. (4) Any person who is dissatisfied with a disposition of the fine for negligence under paragraph (3) may raise an objection against the Minister of Labor within 30 days after he is informed of the disposition.

(5) If a person who is subject to a disposition for arrears under paragraph (3), has made an objection under paragraph (3), the Minister of Labor shall immediately inform the fact to the competent court, which tries the case of fine for negligence under the Procedure in Non-Contentious Cases Act.

(6) If no objection is made and the fine for negligence is not paid within a period as prescribed in paragraph (4), the fine shall be collected according to a case of disposition for national taxes in arrears.

Addenda

This Act shall take effect from Jan. 1, 2008.

Article 1 (Enforcement Date)

This Act shall enter into force one year after its promulgation: Provided that, revised provisions in Article 4-4(1)2 through 5 shall enter into force on January 1, 2010.

Article 2 (Special Case of Application)

The revised provisions of Article 4-7 shall apply the first case after the promulgation of this Act that fails to carry out a recommendation followed by a discriminative act.

Article 3 (Relation with Other Acts and Subordinate Statutes) - 18 -

In case where other Acts and subordinate statutes cite the provisions of the previous Aged Employment Promotion Act and its subordinate statutes at the time this Act enters into force, if this Act includes the provisions corresponding to them, the corresponding provisions of this Act shall be considered to have been cited.