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ENFORCEMENT DECREE OF THE ACT ON THE COLLECTION, ETC., OF PREMIUMS FOR EMPLOYMENT INSURANCE AND INDUSTRIAL ACCIDENT COMPENSATION INSURANCE

This translation of Korea's labor laws is intended mainly as

a convenience to the non-Korean-reading public. If any questions arise related to the accuracy of the information contained in the translation, please refer to the official Korean version of the laws. Any discrepancies or differences created in the translation are not binding and have no legal effect for compliance or enforcement purposes.

* This Decree reflects only the amendments made until May

31, 2011

ENFORCEMENT DECREE OF THE ACT ON THE COLLECTION, ETC., OF PREMIUMS FOR EMPLOYMENT INSURANCE AND

INDUSTRIAL ACCIDENT COMPENSATION

INSURANCE

Presidential Decree No. 18574, Oct. 29, 2004

Presidential Decree No. 19247, Dec.

30, 2005

Presidential Decree No. 19422, Mar. 29, 2006

Presidential Decree No. 19973, Mar. 27, 2007

Presidential Decree No. 20222, Aug. 17, 2007

Presidential Decree No. 22807, Mar. 30, 2011

Presidential Decree No. 22826, Apr.

4, 2011

CHAPTER I

G eneral Provi si ons

<Presidential Decree No. 22408, Sep. 29, 2010>
Articl e 1 (Purpose)
The purpose of this Decree is to stipulate matters delegated by the Act on the Collection, etc., of Premiums for Employment
Insurance and Industrial Accident Compensation Insurance and particulars necessary for the enforcement thereof. <This Article Wholly Amended by Presidential Decree No. 22408, Sep. 29, 2010>
Articl e 2 (D ef ini ti on)
(1) The meaning of the terms used in this Decree are as follows :
1. "Total construction work" refers to a whole range of work carried out in relation to construction work for the
following items:
A. Construction work such as civil engineering work, building work, and other construction work for
structures, which are carried out to complete a final object, and the work of remodeling, repairing, altering
and dismantling a building structure etc.
B. Preparation and finishing work, etc., needed to carry out each construction work under item A.
2. "Total construction am ount" refers to the am ount of contract costs (including the market prices of materials in case a person who issues an order supplies materials) for
carrying out total construction work : Provided that in the
case of construction work carried out by a person who is not a constructor prescribed in Article 2 (5) of the
Framework Act on the Construction Industry and not subject to restrictions on persons who carry out construction work pursuant to Article 41 of the same Act, an amount
calculated according to the methods determined and
announced by the Minister of Employment and Labor shall be the total construction amount; and
3. "The number of ordinarily employed workers" is as follows : Provided that the businesses prescribed in each of the subparagraphs of Articles 15 (1) shall refer to the
number of workers calculated pursuant to paragraph (2) of
the same article:
A. In case a business begins before the insurance year concerned: the number produced by dividing the sum of
the number of workers used as of the last day of each month of the previous year by the number of months of
business operation : Provided that if it is difficult to confirm the number of workers in a construction business, it refers to the number produced according to
the following formula. In this case, "construction amount
actually recorded" refers to the amount produced by subtracting the amount of construction costs legally
contracted out pursuant to the Framework Act on the Construction Industry and other relevant laws from the total construction amount actually recorded (referring to
the total amount for construction work completed in the
insurance year concerned), and "average monthly remuneration in the construction industry" refer to the
average remuneration calculated and announced by the Minister of Employment and Labor on the basis of wages in the construction industry in the wage and working
hours survey report prepared by the Minister of
Employment and Labor among the designated statistics
under Article 3 of the Statistics Act.

construction amount actually recorded for the previous year × labor cost ratio for the previous year average monthly remuneration in the construction industry

for the previous year × number of months of business

operation

B. In case a business begins during the insurance year concerned : the number of workers used as of the date of the establishment of the insurance relationship.
(2) If the same construction work carried out to complete a final object is divided into two parts or more and they are contracted out under the name of entrustment or otherwise
(including cases where the person issuing the order directly
carries out part of the construction work), the total construction amount under paragraph (1) 2 shall be calculated by adding
each of the contract amounts : Provided that this shall not apply, if each contract work is carried out separately and independently in terms of time and place.
<This Article Wholly Amended by Presidential Decree No. 22408, Sep.
29, 2010>
Articl e 2-2 (M oney and V aluab l es Excluded f rom R emunerati on)
"The money and valuables prescribed by the Presidential Decree" in subparagraph 3 of Article 2 of the Act on the Collection, etc. of Premiums for Employment Insurance and
Industrial Accident Compensation Insurance (hereinafter referred
to as "the Act") shall refer to the non-taxable earned income under subparagraph 3 of Article 12 of the Income Tax Act.
<This Article Newly Inserted by Presidential Decree No. 22408, Sep.
29, 2010>
Articl e 3 (Appl i cati on of S tandard R emunerati on)
(1) "Cases where there are reasons prescribed by the Presidential Decree" in Article 3 (1) of the Act refer to those falling under any of the following subparagraphs:
1. In case remuneration-related data are nonexistent or
unclear; and
2. In case it is difficult to locate the business due to the relocation, etc., of the business or workplace (hereinafter
referred to as "business")
(2) The standard remuneration under Article 3 (2) of the Act shall be applied according to the following classification:
1. Monthly standard remuneration shall be applied to regular workers paid the fixed amount of remuneration on a
monthly basis;
2. Hourly standard remuneration shall be applied to part-time workers, workers (hereinafter referred to as "hourly
remuneration workers" in this Article) who are paid remuneration according to the number of their working hours, and workers (hereinafter referred to as "daily
remuneration workers" in this Article) who are paid daily
remuneration according to the number of their working days, regarding the prescribed number of working hours per
week as the actual number of working hours : Provided that if it is not clear whether a worker is a hourly wage worker or daily wage worker or if the prescribed number of
working hours per week cannot be confirmed, monthly
standard remuneration shall be applied.
<This Article Wholly Amended by Presidential Decree No. 22408, Sep.
29, 2010>
Articl e 4 (S cope of Constructi on B usi nesses, etc.)
The scope of businesses prescribed by this Decree, if there is none specifically prescribed by this Decree, shall be subject to
the Korean Standard Industrial Classification announced by the head of the National Statistical Office under the Statistics Act.
<This Article Wholly Amended by Presidential Decree No. 22408, Sep.
29, 2010>
Articl e 5 (Agent)
(1) An employer may appoint an agent and have the agent do what the employer shall do under the Act and this Decree.
(2) When an employer appoints or dismisses an agent, he/she shall report this to the Korea Workers Compensation and Welfare
Service (hereinafter referred to as "the Corporation") prescribed in
Article 10 of the Industrial Accident Compensation Insurance Act. <This Article Wholly Amended by Presidential Decree No. 22408, Sep. 29, 2010>

CHAPTER Ⅱ

Estab l i shment and T ermi nati on of I nsurance

R el ati onshi p

Articl e 6 (Condi tions f or B l ank et Appl ication f or B usi nesses)
(1) "The conditions prescribed by the President Decree" in Article 8 (1) 3 of the Act refer to business done by a person falling under any of the following subparagraphs:
1. A constructor prescribed in subparagraph 5 of Article 2
of the Framework Act on the Construction Industry;
2. A housing constructor prescribed in Article 9 of the
Housing Act;
3. A constructor prescribed in subparagraph 3 of Article 2 of the Electricity Construction Business Act;
4. An information and communications-related constructor prescribed in subparagraph 4 of Article 2 of the Information and Communications Work Business Act;
5. A fire-fighting system constructor prescribed in Article 2
(1) 2 of the Fire-fighting Service Act; and
6. A businessman engaging in repairing cultural properties prescribed in Article 27 of the Protection of Cultural
Properties Act.
(2) An employer who intends to get approval for blanket application pursuant to the former part of Article 8 (2) of the
Act shall apply to the Corporation.
(3) An employer who intends to get approval for the cancelation of blanket application pursuant to the former part of
Article 8 (3) of the Act shall apply to the Corporation for this no later than seven days before the beginning of the following
insurance year. <This Article Wholly Amended by Presidential Decree
No. 22408, Sep. 29, 2010>
Articl e 7 (B l ank et Appli cati on f or Contract B usi ness)
(1) "The business prescribed by the Presidential Decree, such as construction business" in Article 9 (1) of the Act refers to construction business.
(2) A subcontractor gaining recognition as an employer
pursuant to the proviso of Article 9 (1) of the Act shall be limited to cases where a subcontractor is the employer of a
business prescribed in Article 6 (1).
(3) If a subcontractor intends to gain recognition as an employer pursuant to the proviso of Article 9 (1) of the Act, the
original contractor shall sign a written contract with the subcontractor over the takeover of the responsibility for paying premiums and apply for the approval of the subcontractor as an employer
to the Corporation within 30 days from the starting date of the subcontracted work.
(4) In the case a work-related accident as prescribed in subparagraph 1 of Article 5 of the Industrial Accident
Compensation Insurance Act occurs between 15 days from the start of construction of the subcontracted work to the date the application for approval is submitted by a original contractor who
applied for the approval of the subcontractor gaining recognition
as an employer under paragraph (3), the Corporation shall not approve recognition of the subcontractor as an employer.
<This Article Wholly Amended by Presidential Decree No. 22408, Sep. 29, 2010>
Articl e 8 (Noti f i cati on of Estab l ishment and T erminati on of
I nsurance R el ati onship)
The Corporation shall, if an insurance relationship is established or terminated, inform the employer concerned of this
without delay.
<This Article Wholly Amended by Presidential Decree No. 22408, Sep. 29, 2010>
Articl e 9 (R eport of Changes i n I nsurance R el ati onshi p)
Pursuant to Article 12 of the Act, an employer shall, if any change is made to the following matters concerning his/her
business, report this to the Corporation within 14 days of the date on which the change is made: Provided that subparagraph
6 shall be reported within 14 days from the first day of the following insurance year:
1. The name and resident registration number of the employer(the representative, in the case of a corporation);
2. The name and location of the business;
3. The type of the business;
4. Business registration number (including corporation registration number in the case of a corporation);
5. Business period, in the case of businesses with a fixed term, such as construction work or logging; and
6. The number of ordinarily employed workers, in the case where any change is made to entitlement to preferentially supported enterprises under Article 12 of
the Enforcement Decree of the Employment Insurance Act.
<This Article Wholly Amended by Presidential Decree No. 22408, Sep. 29, 2010>

CHAPTER Ⅲ

I nsurance Premi ums

Articl e 10 (V i carious Payment of Premi ums b y Persons O rdering
Constructi on Work )
(1) In case the State, local governments, or public agencies under the Act on the Operation of Public Agencies, or other
institutions to which the State or a local government contributes order construction work, they may pay premiums on behalf of the original contractor after obtaining approval from the
Corporation, if premiums are clearly stated in the construction
amount and the original contractor agrees.
(2) A person who vicariously pays premiums pursuant to paragraph (1) shall, if any change is made to the following
matters, report this to the Corporation without delay :
1. The name and location of the person who vicariously pays premiums and the name of the representative; and
2. The amount, period and contents of the construction work. (3) If it becomes unnecessary to vicariously pay premiums,
or if it is deemed that there are other justifiable reasons, the Corporation may revoke its approval for the vicarious payment of premiums under the conditions as prescribed by the Ordinance
of the Ministry of Employment and Labor.
(4) If revoking its approval for the vicarious payment of premiums pursuant to paragraph (3), the Corporation shall inform
the person who vicariously pays premiums and the original contractor of the fact without delay.
<This Article Wholly Amended by Presidential Decree No.
22408, Sep. 29, 2010>
Articl e 11 (D eterminati on of Lab or Cost R ati o, etc.)
(1) The methods of determining a labor cost ratio (hereinafter referred to as "labor cost ratio") under Article 13 (6) of the Act
are described in the following subparagraphs :
1. The labor cost ratio for construction work shall be determined and announced by the Minister of Employment
and Labor, separately for general construction work and for subcontracted construction work, in consideration of the
proportion, etc., of the sum of total remuneration paid to workers by employers who were engaged in the construction business during the three years to June 30 of
the year at the time of calculation (hereinafter referred to
as "the base insurance year") in the sum of all construction amounts of the same employers; and
2. The labor cost ratio for logging shall be determined and announced by the Minister of Employment and Labor in
consideration of the proportion, etc., of the sum of all remuneration paid to workers by employers who were engaged in logging business during the three years to
June 30 of the base insurance year concerned in the sum
of all logging expenses of the same employers and shall be expressed as the amount of remuneration per unit
volume of lumber. <Amendedby Presidential Decree No. 22269, Jul. 12, 2010>
(2) The methods of determining the amount of estimated total wages or total wages based on the labor cost ratio for
construction work are described in the following subparagraphs.
1. The amount of estimated total remuneration shall be produced by multiplying the total construction amount by
the labor cost ratio: Provided that in case the amount of estimated total remuneration produced based on the labor
cost ratio exceeds 90/100 of the contract amount, 90/100 of the contract amount shall be the amount of estimated total remuneration; and
2. The amount of total remuneration shall be produced by
adding the sum of the total amount of remuneration paid to workers directly employed for the construction work
concerned to the amount calculated by multiplying the total amount for subcontracted construction work (excluding the amount for subcontracted construction work by
subcontractors who get approval from the Corporation
pursuant to the proviso of Article 9 (1) of the Act) by the labor cost ratio for subcontracted construction work. The
equation for this calculation is as follows:
Total remuneration = total amount of remuneration paid to workers directly employed for the construction work
concerned + {total amount for subcontracted construction work (excluding the amount for subcontracted construction work by subcontractors who get approval from the Corporation
pursuant to the proviso of Article 9 (1) of the Act) x the
labor cost ratio for subcontracted construction work}
(3) In the case of logging businesses, the amount of estimated total remuneration or total remuneration shall be produced by
multiplying the volume of lumber by the labor cost ratio.
<This Article Wholly Amended by Presidential Decree No. 22408, Sep. 29, 2010>
Articl e 12 (Empl oyment I nsurance Premium R ate)
(1) The employment insurance premium rates under Article
14 (1) of the Act are as follows: <Amended by Presidential Decree
No. 22807, Mar. 30, 2011>
1. The premium rate for employment security and vocational skills development projects shall be determined as follow:
A. A business which employs less than 150 workers :
25/10,000;
B. A business which employs 150 workers or more and falling within the scope of preferentially supported
enterprises prescribed in Article 12 of the Enforcement
Decree of the Employment Insurance Act : 45/10,000;
C. A business which employs 150 or more but less than
1,000 workers and not falling under item B :
65/10,000; and
D. A business which employs 1,000 workers or more and not falling under item B and a business directly conducted by the State and a local government : 85/10,000
2. The premium rate for unemployment benefits : 11/1,000
(2) In applying the provisions of paragraph (1) 1, the number of workers shall be the sum of the numbers of workers
in all businesses at home conducted by the employer concerned
: Provided that in the case of a business which supervises public housing under subparagraph 2 of Article 2 of the Housing Act,
the number of workers shall be calculated by type of business.
(3) In applying the provisions of paragraph (1) 1, a subcontractor who becomes an employer subject to the Act
pursuant to the proviso of Article 9 (1) of the Act shall be subject to the premium rate for employment security and vocational skills development projects applicable to the original contractor :
Provided that in regards to each of the businesses run by an
employer who becomes subject to blanket application pursuant to Article 8 of the Act, if the subcontractor is deemed an
employer subject to the Act pursuant to the proviso of Article 9 (1) of the Act, the premium rate for employment security and vocational skills projects applicable to the employer who is the
subcontractor concerned shall be applied.
(4) Notwithstanding the provisions of paragraphs (1) 1 and
(2), if a business is transferred or merged during the insurance year, the premium rate for employment security and vocational
skills development projects applicable before the transfer and merge shall be applied to the transferred or merged business
during the insurance year concerned.
<This Article Wholly Amended by Presidential Decree No.
22408, Sep. 29, 2010>
Articl e 13 (Public Announcement of Industrial Accident Compensation
I nsurance Premium R ate)
When the Minister of Employment and Labor has determined premium rates (hereinafter referred to as "industrial accident
insurance premium rate") for industrial accident compensation insurance (hereinafter referred as "industrial accident insurance") pursuant to Article 14 (3) of the Act, he/she shall announce it,
along with the kinds and contents of the businesses to which the
premium rates are applied, through an official gazette and general daily newspapers, etc., with a nationwide circulation
under Article 9 (1) of the Act on the Promotion of Newspapers, etc.<This Article Wholly Amended by Presidential Decree No. 22408, Sep. 29, 2010>
Articl e 14 (Appl i cati on of I ndustrial Acci dent I nsurance Premi um
R ate)
(1) If a same employer carries out two or more businesses whose types are different under Article 14 (3) of the Act in the
same workplace, the industrial accident insurance premium rate applicable to the principal business (hereinafter in this Act
referred to as "principal business") which accounts for a larger share than others in terms of the number of workers, total remuneration, etc., shall be applied to all the businesses in the
workplace.
(2) The principal business under paragraph (1) shall be determined in the following order:
1. Business with more workers than others ;
2. Business with more total remuneration than others, in case the number of workers is equal or it is impossible
to know the number of workers; and
3. Business manufacturing goods or providing services with larger sales volume than others, in case the principal business
cannot be determined pursuant to subparagraphs 1 and 2.
<This Article Wholly Amended by Presidential Decree No. 22408, Sep.
29, 2010>
Articl e 15 (B usiness S ub j ect to S pecial Case of I ndustri al Acci dent
I nsurance Premium R ate)
(1) "The businesses prescribed by the Presidential Decree" in
Article 15 (2) of the Act refer to businesses described in the following subparagraphs :
1. Businesses in the construction industry which are subject
to blanket application under Article 8 (1) and (2) of the
Act and whose total construction amount actually recorded for the insurance year two years prior to the
current insurance year is four billion won or more; and
2. Businesses, other than construction and logging businesses, which have 20 ordinarily employed workers or more
(2) In the case of applying the special case (hereinafter referred to as "merits rate") of the determination of industrial
accident insurance premium rates under Article 15 (2) of the Act, the number of workers under paragraph (1) 2 shall be calculated according to the provisions of Article 2 (1) 3 A, and
the calculation period shall be from July 1 of the year before the
base insurance year until June 30 of the base insurance year.
(3) If the type of a business subject to the industrial accident insurance premium rate under paragraph (1) has changed during
the three years to June 30 of the base insurance year, the merits rate shall not be applied to the business : Provided that even in
the case the type of business has changed, if major working conditions for the business concerned, such as machine facilities, work process, etc. are deemed not to have been changed, the
merits rate shall apply.
<This Article Wholly Amended by Presidential Decree No. 22408, Sep. 29, 2010>
Article 16 (Ratio of I nsurance Expenditure to Revenue for Application of M erits R ate)
"The ratio prescribed by the Presidential Decree" in Article 15 (2) of the Act refers to more than 85/100 or 75/100 or less.
<This Article Wholly Amended by Presidential Decree No. 22408, Sep. 29, 2010>
Articl e 17 (Calculation of Ratio of Insurance Expenditure to R evenue f or Appl ication of M erits R ate)
(1) In the case of calculating the ratio of industrial accident insurance benefits to industrial accident insurance premiums
(hereinafter referred to as "industrial accident insurance premiums") pursuant to Article 15 (2), the amount of industrial
accident insurance premiums shall be the sum of the following amounts as of June 30 of the base insurance year:
1. In the case of the base insurance year: The sum of monthly insurance premiums (hereinafter referred to as
"monthly insurance premiums") pursuant to Article 16-3 (1) of the Act from January to June [in the case of a business falling under Article 19-2, the amount equivalent
to 1/2 of the estimated insurance premium (hereinafter referred to as "estimated premiums") pursuant to Article
17 (1) of the Act]
2. In the case of the two insurance years preceding the base insurance year: The sum of calculated premiums
(hereinafter referred to as "calculated premiums“) pursuant to Article 16-9 (1) and (2) of the Act [in the case of a business falling under Article 19-2, the sum of final
premiums (hereinafter referred to as "final premiums")
pursuant to Article 19 (1) of the Act]
3. In the case of the three insurance years preceding the base insurance year: An amount calculated according to
the following formula.
(Final premium amount for or calculated premiums amount for the insurance year three years before the base
insurance year) × 6 ÷ (total number of months during which insurance relations continue in the insurance year
three years before the base insurance year)
(2) In calculating the ratio of industrial accident insurance benefits to industrial accident insurance premiums pursuant to
Article 15 (2) of the Act, the amount of the industrial accident insurance benefits shall be the sum of all amounts of industrial accident insurance benefits determined to be paid (referring to
the causal act for disbursement; hereinafter the same shall apply)
from July 1 of the insurance year three years prior to the base insurance year to June 30 of the base insurance year. In this
case, if the industrial accident insurance benefits determined to be paid are disability or survivors' compensation annuities, it shall be deemed that the lump-sum disability or survivors'
compensation are determined to be paid when the payment of
such annuities is first determined.
(3) The vocational rehabilitation benefits pursuant to Article
72 of the Industrial Accident Compensation Insurance Act and the amount of insurance benefits determined to be paid due to an accident caused by a third party action pursuant to Article 87
(1) of the same Act or inevitable reasons such as natural disasters,
blackouts, etc., shall be excluded from the sum of industrial accident compensation insurance benefits under paragraph (2):
Provided that the amount of insurance benefits corresponding to the proportion that is not recognized as the third party's faults by the final ruling of the court, etc. shall be added.
(4) With regard to the amount of insurance benefits under the proviso of paragraph (3), the date on which the court
delivers its final ruling shall be considered the date on which the insurance benefits concerned are determined to be paid.
<This Article Wholly Amended by Presidential Decree No. 22408, Sep. 29, 2010>
Articl e 18 (I ncrease or D ecrease R ates of M eri ts R ates)
(1) An increase or decrease in industrial accident insurance premium rates under Article 15 (2) of the Act shall be subject to
the rates shown in Table 1.
(2) When the Corporation has decided to raise or lower industrial accident insurance premium rates pursuant to Article
15 (2) of the Act, it shall inform the employer concerned of the increased or decreased premium rates without delay.
<This Article Wholly Amended by Presidential Decree No. 22408, Sep. 29, 2010>
Articl e 19 (Wi thhol ding of Employment I nsurance Premi ums)
If an employer intends to withhold at source employment insurance premiums (hereinafter referred to as "employment
insurance premiums") pursuant to Article 16 (1) of the Act, he/she shall, whenever paying remuneration to an insured
worker, deduct the amount of employment insurance premiums to be borne by the insured worker, which are calculated on the basis of the amount of remuneration added by remuneration that
have been paid irregularly since the immediately preceding
regular payday, from the amount to be paid.
<This Article Wholly Amended by Presidential Decree No. 22408, Sep. 29, 2010>
Articl e 19-2 (B usinesses Excl uded f rom I mposi ng and Col lecting on a M onthl y B asi s)
"Business such as construction business etc. prescribed by the Presidential Decree" pursuant to Article 16-2 (2) of the Act shall refer to businesses falling under the following
subparagraphs:
1. Construction business (excluding construction equipment operation businesses)
2. Logging from among forestry
<This Article Newly Inserted by Presidential Decree No. 22408, Sep. 29, 2010>
Articl e 19-3 (R easons f or Cal culating M onthly I nsurance Premium on a D ail y Pro R ata B asi s)
"Reasons prescribed by the Presidential Decree such as a
worker's leave etc." pursuant to Article 16-4 (3) of the Act shall refer to reasons falling under any of the following
subparagraphs:
1. Workers temporarily off work or taking leave
2. Protective leave pursuant to Article 74 (1) and (2) of the
Labor Standards Act
3. Other reasons deemed by the Minister of Employment and Labor as a condition of a worker not providing work
<This Article Newly Inserted by Presidential Decree No. 22408, Sep. 29, 2010>
Articl e 19-4 (R emuneration Excl uded f rom M onthl y Average
R emunerati on etc. when Cal culating Premiums)
(1) "Reasons prescribed by the Presidential Decree such as allowances during business suspension etc. pursuant to Article 46
(1) of the Labor Standards Act" under Article 16-5 of the Act shall refer to reasons prescribed in each subparagraph of Article
19-3.
(2) Remuneration during the period falling under the reasons pursuant to paragraph (1) shall be excluded from the monthly average remuneration or total remuneration when calculating
industrial accident insurance premiums.
<This Article Newly Inserted by Presidential Decree No. 22408, Sep. 29, 2010>
Articl e 19-5 (R eport of T otal R emuneration etc.)
(1) Matters to be reported by an employer by the end of
February every year pursuant to Article 16-10 (1) of the Act are as the following subparagraphs:
1. Worker's name and resident registration number
2. If an employer newly hired a worker during the previous year, the date of employment (referring to the date of
acquisition of the qualification of the insured pursuant to
Article 13 of the Employment Insurance Act)
3. If an employer terminated the employment relationship with a worker during the previous year, the date of employment relationship termination (referring to the date of
loss of qualification of the insured pursuant to Article 14 of
the Employment Insurance Act).
4. If an employer transferred a worker to another workplace, the transfer date (referring to the transfer date
pursuant to Article 9 of the Enforcement Decree of the
Employment Insurance Act).
5. The worker's individual total remuneration in the
previous year
6. Other matters necessary to calculating premiums prescribed by the Ordinance of the Ministry of Employment
and Labor.
(2) In the case an insurance relationship was terminated pursuant to Article 16-10 (2) of the Act, the matters an employer
shall report are as the following subparagraphs:
1. Name and resident registration number of the worker
2. If an employer newly hired a worker during the previous year, the date of employment (referring to the date of acquisition of the qualification of the insured pursuant to
Article 13 of the Employment Insurance Act)
3. If an employer terminated the employment relationship with a worker during the previous year, the date of
employment relationship termination (referring to the date of loss of qualification of the insured pursuant to Article 14 of the Employment Insurance Act).
4. The worker's individual total remuneration in the year
concerned
(3) Notwithstanding paragraph (1) and (2), workers under paragraph (5) may report only the total remuneration of all
workers concerned.
(4) In the case of newly hiring a worker pursuant to Article
16-10 (3) of the Act, the matters an employer shall report are as the following subparagraphs:
1. Name, resident registration number and address of the worker
2. The employment date of the worker (referring to the date of acquisition of the qualification of the insured pursuant to
Article 13 of the Employment Insurance Act)
3. Monthly average remuneration pursuant to Article 16-3 (2)
2 of the Act
(5) "Workers prescribed by the Presidential Decree including those with less than 60 contractual working hours in a month etc." in the proviso of Article 16-10 (3) of the Act shall refer to
an individual falling under paragraphs (1) or (2) 1 of Article 3
of the Enforcement Decree of the Employment Insurance Act
(excluding workers subject to the Employment Insurance Act).
(6) In the case the employment relationship with a worker has been terminated pursuant to Article 16-10 (4) of the Act, the matters an employer shall report are as the following
subparagraphs:
1. Name and resident registration number of the worker
2. The date of employment relationship termination
(referring to the date of loss of qualification of the insured pursuant to Article 14 of the Employment Insurance Act)3
3. The total remuneration paid to the worker
(7) "A reason prescribed by the Presidential Decree such as if a worker takes leave or transfers to another workplace etc.,"
pursuant to Article 16-10 (5) of the Act shall refer to the reasons in the following subparagraphs:
1. Workers temporarily off work or taking leave
2. Transfer from one workplace to another of the same employer
3. Change of worker's name or resident registration number
(8) If a reason prescribed in each of the subparagraphs of paragraph (6) occurs to the worker, the matters an employer
shall report pursuant to Article 16-10 (5) of the Act are as the following subparagraphs:
1. If a worker does not work due to a business suspension, a leave or a transfer, the start date or end date of the
period, the name and resident registration number of the worker, reason for not providing work due to business
suspension or leave, the name of the workplace he/she was
transferred to and business management number
2. If the name or resident registration number of the worker has been changed, the particulars of the change of the
worker's name or resident registration number
(9) If an employer intends to make a report pursuant to provisions under paragraph (1) through (4) and paragraph (6)
and (8), he/she shall fill out and submit a reporting form prescribed by the Ordinance of the Ministry of Employment and
Labor.
<This Article Newly Inserted by Presidential Decree No. 22408, Sep. 29, 2010>
Articl e 19-6 (R eport of T otal R emuneration b y D ocument)
"The size prescribed by the Presidential Decree" in the proviso of Article 16-10 (8) of the Act shall refer to businesses
with less than 10 workers as of the end date of the previous year.
<This Article Newly Inserted by Presidential Decree No. 22408, Sep. 29, 2010>
Articl e 20 (R eport and Payment of Esti mated Premi ums)
If an employer intends to pay estimated premiums, he/she shall submit a report on estimated premiums to the Corporation
and pay estimated premiums in accordance with the statement of payment.
<This Article Wholly Amended by Presidential Decree No. 22408, Sep. 29, 2010>
Articl e 21 (Appl ication of T otal R emuneration of Previ ous Year)
"The cases prescribed by the Presidential Decree" in the main part of Article 17 (1) of the Act refer to those where the estimated total remuneration for the insurance year concerned is
70/100 or more but 130/100 or less of the total remuneration of
the previous year.
<This Article Wholly Amended by Presidential Decree No. 22408, Sep. 29, 2010>
Articl e 22 (Payment i n I nstall ments of Esti mated Premi ums)
(1) The payment of estimated premiums under Article 17 (3)
of the Act shall be made in four quarters per year and the installment payment period is divided as follows :
1. First period : from January 1 to March 31
2. Second period : from April 1 to June 30
3. Third period : from July 1 to September 30
4. Fourth period : from October 1 to December 31
(2) Notwithstanding the provisions of paragraph (1), in the case of businesses described in the following subparagraphs shall not pay estimated premiums in installments:
1. Businesses whose insurance relationship is established
after July 1 of the insurance year concerned; and
2. Businesses with a fixed period, such as construction work, etc. and the period is less than six months
(3) If the insurance relationship is established during the insurance year, the first installment payment period of the estimated
premiums shall be the period classified in the following subparagraphs:
1. In case the insurance relationship is established between
January 2 and March 31: the period from the date of the establishment of an insurance relationship to June 30; and
2. In case the insurance relationship is established between
April 1 and June 30: the period from the date of the establishment of an insurance relationship to September 30
(4) The amount of estimated premiums to be paid for each installment payment period is as follows :
1. The amount of estimated premiums to be paid for each installment payment period pursuant to paragraph (1): the amount produced by dividing the total estimated premiums for the year concerned by four; and
2. The amount of estimated premiums to be paid for each installment payment period pursuant to paragraph (3): the
amount produced by multiplying the total estimated premiums for the year concerned by the ratio of the number of days of each installment payment period to
the total number of days between the date of the
establishment of the insurance relationship and the last day of the year.
(5) An employer who pays estimated premiums in installments shall pay the amount of estimated premiums required to be paid for the first installment payment period until the payment
deadline under Article 17 (1) of the Act and then the amount of
estimated premiums for each succeeding installment payment period no later than the fifteenth day of the middle month of
each quarter.
(6) An employer who intends to make installment payments pursuant to paragraphs (1) through (5) shall apply for paying
estimated premiums in installments to the Corporation.
<This Article Wholly Amended by Presidential Decree No. 22408, Sep. 29, 2010>
Articl e 23 (R eq uest f or R evi si on of Esti mated Premiums)
(1) An employer who intends to make a request for the revision of estimated premiums pursuant to Article 17 (5) of the
Act shall submit a revision request form containing the following matters:
1. The requester's name, address or place of residence;
2. The amount of estimated premiums before revision;
3. The amount of estimated premium after revision;
4. The reasons to make a request for revision; and
5. Other reasons for making a request for revision and matters necessary to explain the grounds for the calculations (2) The Corporation shall inform the requester of the results
of the request for revision within two months from the date on
which it receives the request for revision under paragraph (1).
<This Article Wholly Amended by Presidential Decree No. 22408, Sep. 29, 2010>
Article 24 (Adj ustment of Premiums Following Changes in Premium
R ates)
(1) If the Corporation made downwards adjustments of premiums pursuant to Article 18 (1) of the Act, it shall inform the employer of the fact of a downwards adjustment within 20 days from the date on which the decision to decrease premium
rates is made.
(2) If the employer has already paid an amount more than he/she should pay as a result of the downward adjustment of
premiums pursuant to paragraph (1), the Corporation shall determine the appropriation and return of the amount
mistakenly paid pursuant to Article 23 of the Act and inform the employer of this as prescribed in Article 31 (3).
(3) In the case of an upward adjustment to the premiums pursuant to Article 18 (1) of the Act, the Corporation or the
National Health Insurance Corporation (hereinafter referred to as
"Health Insurance Corporation") under Article 12 of the National
Health Insurance Act shall decide on a payment deadline and inform an employer of the additional payments of premiums.
(4) An employer notified of additional payments of premiums pursuant to paragraph (3) shall pay the increased premiums by
the payment deadline : Provided that, in the case there is a reason deemed justifiable by the Corporation or the Health Insurance
Corporation, the payment deadline may be extended once within
30 days.
<This Article Wholly Amended by Presidential Decree No. 22408, Sep. 29, 2010>
Article 25 (S tandard for Downward Adj ustment of Estimated Premiums)
"The standard amount prescribed by the Presidential Decree" in Article 18 (2) of the Act refers to 30/100.
<This Article Wholly Amended by Presidential Decree No. 22408, Sep. 29, 2010>
Articl e 26 (R eport, Payment, etc. of Final Premiums)
The provisions of Articles 20 and 23 shall apply mutatis mutandis to the report and payment of final premiums under
Article 19 (1) of the Act and the request for the revision of final premiums under Article 19 (7) of the Act.
<This Article Wholly Amended by Presidential Decree No. 22408, Sep. 29, 2010>
Articl e 27 (S peci al Cases of Premi um Coll ecti on)
"The reasons prescribed by the Presidential Decree, such as when it is difficult to secure basic materials used for premium
calculation including a statement of accounts" in Article 20 of the
Act refer to cases where the Corporation asks an employer twice or more to submit basic materials needed for premium
calculation, such as a statement of accounts, but he/she fails to do so or where the Corporation asks an employer to complement
submitted materials because of their considerable unreliability but he/she fails to complement. <This Article Wholly Amended by Presidential Decree No. 22408, Sep. 29, 2010>
Articl e 28 Deleted <Presidential Decree No. 22408, Sep. 29, 2010>
Articl e 29 Deleted <Presidential Decree No. 22408, Sep. 29, 2010>
Articl e 30 D el eted. <Presidential Decree No. 19973, Mar. 27, 2007>
Articl e 30-2 (R easons, etc., f or R educti on of Premiums, etc., D ue to
Natural D isasters, Armed Conf li cts, etc.)
(1) "Special reasons prescribed by the Presidential Decree" in the former part of Article 22-2 (1) of the Act refer to fires, explosions, wars and other equivalent disasters.
(2) The reduction rate prescribed in the latter part of Article
22-2 (1) of the Act shall be 30/100 of insurance premiums and other charges. <This Article Wholly Amended by Presidential Decree No. 22408, Sep. 29, 2010>
Articl e 30-3 (R educed Amount of I nsurance Premi ums I n Case of
R eport V i a I nf ormati on and Communi cati on Network )
The Corporation may, if an employer reports total remuneration or estimated premiums through an information and communication network for employment and industrial accident
pursuant to Article 22-2 (2) of the Act (excluding cases where an
employer makes such a report through an insurance work service agency referred to in Article 45 (1)), reduce employment insurance
premiums and industrial accident compensation insurance premiums, each by five thousand won.
<This Article Wholly Amended by Presidential Decree No. 22408, Sep. 29, 2010>
Articl e 30-4 (R educed Amount of I nsurance Premi ums I n Case of
Payment B y M eans of Electroni c Fund T ransf er)
The Corporation may, if an employer pays monthly premiums or estimated premiums by means of an electronic fund transfer pursuant to Article 22-2 (3) of the Act, reduce
monthly employment insurance premiums and monthly industrial
accident compensation insurance premiums each by 250 won or reduce estimated employment insurance premiums and estimated
industrial accident compensation insurance premiums each by 250 won every quarter.
<This Article Wholly Amended by Presidential Decree No. 22408, Sep. 29, 2010>
Articl e 31 (Appropri ati on and R eturn of Premi ums, etc. Paid in
Excess and T heir I nterests)
(1) Deleted. <Presidential Decree No. 19973, Mar. 27, 2007>
(2) If an employer has paid in mistake premiums and other charges or received insurance benefits pursuant to Article 89 of
the Industrial Accident Compensation Insurance Act, he/she may request the Corporation to appropriate them for premiums and other charges for the following year. <Amended by Presidential
Decree No. 22408, Sep. 29, 2010>
(3) If the Corporation intends to appropriate premiums, etc., paid in mistake or insurance benefits for premiums and other
charges preferentially or decides to return the balance pursuant to Article 23 (1) through (3) of the Act, it shall inform the employer of this. <Amended by Presidential Decree No. 22408, Sep.
29, 2010>
(4) "The interest rate prescribed by the Presidential Decree" in parts other than each subparagraph of Article 23 (4) of the
Act refers to the interest rate on additional payments on refunds of national taxes under Article 30 (2) of the Enforcement Decree of the Framework Act on National Taxes.<This Article Wholly Amended by Presidential Decree No. 22408, Sep. 29, 2010>
Articl e 32 (Excepti on to Col lection of Addi tional Charges)
"The cases prescribed by the Presidential Decree" in the proviso of Article 24 (1) of the Act refer to cases described in
the following subparagraphs :
1. In case where the amount of additional charges is less than three thousand won; and
2. In case where total remuneration pursuant to Article
16-10 (1) and (2) of the Act and final premiums are not reported because of natural disasters and other inevitable
reasons recognized by the Minister of Employment and
Labor.
<This Article Wholly Amended by Presidential Decree No. 22408, Sep. 29, 2010>
Articl e 33 (Coll ecti on, etc of Arrears)
(1) If an employer fails to pay premiums and other charges until the payment deadline pursuant to Article 25 (1) of the Act, the Health Insurance Corporation shall collect the amount of
arrears equivalent to 12/1000 of the premiums and other charges
in arrears and for every one month passing after the payment deadline, additionally collect the amount of arrears equivalent to
12/1000 of the premiums and other charges in arrears.
(2) If the period during which arrears are imposed under paragraph (1) exceeds 36 months, 36 months shall be the period
of the imposition of arrears.
(3) "The cases prescribed by the Presidential Decree" in the proviso of Article 25 (1) of the Act refer to cases described in
the following subparagraphs :
1. In case where the amount of arrears is a small amount of less than 250 won;
2. In case where arrears, additional charges and insurance benefits to be collected pursuant to Article 26 of the Act
are in arrears;
3. In case where collection is postponed under Article 140 of the Debtor Rehabilitation and Bankruptcy Act; and
4. In case where premiums and other charges are in arrears because of natural disasters or other inevitable reasons recognized by the Minister of Employment and Labor.
<This Article Wholly Amended by Presidential Decree No. 22408, Sep. 29, 2010>
Article 34 (S tandards for Collection of Industrial Accident Compensation
I nsurance B enef i ts)
(1) The collection of insurance benefits under Article 26 (1) 1 of the Act shall be made to provide medical care benefits, wage
replacement benefits, disability benefits, nursing benefits, survivors' benefits, and injury-disease compensation annuities for accidents taking place during the period from the day following
the end of the deadline until which joining insurance must be
reported to the day on which joining insurance is actually reported, and the amount to be collected shall be 50/100 of the
insurance benefits determined to be paid for accidents taking place during a period in which the employer neglects to make the report on joining insurance : Provided that this applies only
to insurance benefits whose reasons for a request for payment
occur between the starting date of medical care (the day of the accident, in case the victim dies when the accident happens) and
the last day of the month containing the date marking one year since the start of the medical care.
(2) The collection of insurance benefits under Article 26 (1) 2 of the Act shall be made to provide medical care benefits, wage
replacement benefits, disability benefits, nursing benefits, survivors's benefits, and injury-disease compensation annuities for
accidents taking place during the period from the day following the end of the deadline (payment deadline for each quarter in
the case of payment in installments under Article 17 (3) of the
Act) for payment of estimated premiums or for payment of monthly insurance premiums to the day preceding the date on
which the premiums concerned are paid, and the amount to be collected shall be 10/100 of the insurance benefits whose reasons
for a request for payment occur between the date of accident to the day preceding the date on which the premiums are paid. However, insurance benefits shall not be collected in the cases of
the following subparagraphs.
1. In case the ratio of the amount of premiums paid for monthly premiums of the year concerned that must be
paid by the day in which the accident happens is 50/100 or more.
2. In case the ratio of the amount of premiums paid for estimated premiums that must be paid in the year
concerned (the ratio of the amount of premiums paid to estimated premiums which must be paid within the
quarter in which the accident happens in the case of
payment in installments) is 50/100 or more.
(3) In case of collecting insurance benefits pursuant to paragraph (1) or (2), if the insurance benefits determined to be
paid are disability or survivors' compensation annuities, it shall be considered that lump-sum disability or survivors' compensation are
determined to be paid on the day when reasons for a request for the payment occurs for the first time.
(4) If reasons falling under Article 26 (1) 1 and 2 of the Act concur with each other, only the insurance benefits whose
collection ratio is the highest shall be collected during the period in which they concur.
<This Article Wholly Amended by Presidential Decree No. 22408, Sep. 29, 2010>
Articl e 35 (Col lection of I nsurance B enef i ts f rom T hose Who J oin
I ndustri al Acci dent Compensati on I nsurance)
When the Corporation gives a notification of payment of all or part of insurance benefits pursuant to Article 26 (2) of the
Act, the payment deadline shall be 30 days or more from the date on which the notification is received.
<This Article Wholly Amended by Presidential Decree No. 22408, Sep. 29, 2010>
Articl e 36 D el eted. <Presidential Decree No. 19973, Mar. 27, 2007>
Articl e 37 (Entrustment, etc. of Pub l ic S al es)
(1) If the Health Insurance Corporation has the Korea Asset
Management Corporation (hereinafter referred to as "Korea Asset
Management Corporation") under Article 6 of the Act on the Efficient Disposal of Non-performing Assets, etc. of Financial Institutions and the Establishment of Korea Asset Management
Corporation vicariously conduct a public sale of seized properties
pursuant to the former part of Article 28 (2) of the Act, it shall send a request for public sales by proxy containing the following
matters to the Korea Asset Management Corporation:
1. The delinquent's name, address or place of residence ;
2. The type, quantity, quality and location of the properties to be sold publicly;
3. The particulars and payment deadline of premiums and other charges related to the seizure; and
4. Other matters needed to publicly sell seized properties.
(2) If the Health Insurance Corporation entrusts public sales pursuant to paragraph (1), it shall inform this fact without delay
to the delinquent, the security owner, the person who has a right of lease, pledge, or mortgage or other rights to the properties and the person who takes custody of the seized
properties.
<This Article Wholly Amended by Presidential Decree No. 22408, Sep. 29, 2010>
Articl e 38 (T ransf er of S ei zed Properti es)
(1) When entrusting public sales pursuant to Article 37 (1), the Health Insurance Corporation may transfer the properties
which it possesses or has a third party keep to the Korea Asset Management Corporation: Provided that in substitution for transferring properties kept by a third party, a certificate of
custody of the properties concerned may be transferred.
(2) If the Korea Asset Management Corporation takes over seized properties pursuant to paragraph (1), it shall prepare a
statement of transfer or receipt.
<This Article Wholly Amended by Presidential Decree No. 22408, Sep. 29, 2010>
Articl e 39 (R eq uest f or R evocati on of Pub li c S al e b y Proxy)
(1) If there is any property remaining unsold within two years from the date of the entrustment of public sales, the Korea
Asset Management Corporation may request the Health Insurance Corporation to revoke the entrustment of the public sales of the property.
(2) When the Health Insurance Corporation is requested to
revoke the entrustment under paragraph (1), it shall follow that request unless under special circumstances.
<This Article Wholly Amended by Presidential Decree No. 22408, Sep. 29, 2010>
Articl e 40 (D etai l s of Pub li c S al e b y Proxy)
Necessary matters on public sales vicariously conducted by the Korea Asset Management Corporation pursuant to the former
part of Article 28 (2) of the Act, which are not prescribed in this Decree, shall be determined by the Corporation in consultation with the Korea Asset Management Corporation.
<This Article Wholly Amended by Presidential Decree No. 22408, Sep. 29, 2010>
Articl e 40-2 (V alue of I nheri ted Properti es)
(1) Properties gained from inheritance pursuant to Article
28-3 (1) of the Act and the former part of paragraph (2) of the same Article of the Act shall refer to the amount of value
calculated by deducting total liabilities and inheritance taxes which are imposed or should be paid due to inheritance, from the total assets obtained as a result of inheritance.
(2) The value of total liabilities and total assets under
paragraph (1) shall be appraised in accordance with the appraisal methods prescribed in Articles 60 through 66 of the
Inheritance Tax and Gift Tax Act.
<This Article Wholly Amended by Presidential Decree No. 22408, Sep. 29, 2010>
Articl e 40-3 (R eport of S uccessors' R epresentative)
(1) The report of successors' representative under the latter part of Article 28-3 (2) of the Act shall be made within thirty
days from the date of the commencement of the inheritance and using documents containing the representative's name, address, place of residence and other necessary matters.
(2) The Health Insurance Corporation may, if there is no
report as prescribed in the latter part of Article 28-3 (2) of the
Act, designate one of the successors as a representative. In this case, the Health Insurance Corporation shall send each successor
documents containing its intention without delay.
<This Article Wholly Amended by Presidential Decree No. 22408, Sep. 29, 2010>
Articl e 40-4 (R e ason s f or Exce pti on to D i scl osure of Pe rson al
I nf ormation on High-Amount or Hab itual D el i nq uents)
(1) When the Health Insurance Corporation makes public personal information on a delinquent pursuant to Article 28-6 (1)
of the Act, it shall disclose the delinquent's name, company name (including the name of the corporation), age, address, type of arrears, payment deadline, amount of arrears, points of
arrearage, etc., and if the delinquent is a corporation, shall
disclose the representative of the corporation as well.
(2) "Reasons prescribed by the Presidential Decree, such as the partial payment of arrears" in the proviso of Article 28-6 (1)
of the Act refer to cases falling under any of the following subparagraphs :
1. In case where 30/100 or more of overdue premiums, other charges and disposition fees for arrears (hereinafter referred to as "amount of arrears") have been paid during
the insurance year concerned;
2. In case where the collection of arrears has been postponed as a decision to approve rehabilitation plans was made
pursuant to Article 243 of the Debtor Rehabilitation and Bankruptcy Act and during the grace period, arrears are being paid according to the payment schedule in the
rehabilitation plans; and
3. In case where the business experiences a serious crisis due to severe property damage caused by disasters, etc.,
and the Deliberation Committee on Disclosure of Insurance Premium-related Information prescribed in Article 28-6 (2) of the Act considers that the disclosure of personal information
on the delinquent would not bring actual benefits.
(3) When pursuant to Article 28-6 (3) of the Act, the Health
Insurance Corporation informs those subject to the disclosure of personal information, etc., on delinquents that they are subject to
the disclosure, it shall urge them to pay arrears and if they fall under reasons to be an exception to the disclosure of personal
information, etc. pursuant to the proviso of Article 28-6 (1) of the Act, the Corporation shall inform them that they have to submit materials for explanation.
<This Article Wholly Amended by Presidential Decree No. 22408, Sep. 29, 2010>
Articl e 40-5 (Composition and Operation of Delib eration Committee on Disclosure of I nsurance Premium-related I nf ormation)
(1) The Deliberation Committee on Disclosure of Insurance
Premium-related Information (hereinafter referred to as the "Committee") prescribed in Article 28-6 (2) of the Act shall be composed of eleven members including one chairperson.
(2) The chairperson of the Committee shall be assumed by a standing director in charge of relevant work from among the
officers of the Health Insurance Corporation and its members shall be appointed or assigned by the president of the Health Insurance Corporation from among those described in the
following subparagraphs :
1. One employee of the Corporation;
2. Three employees of the Health Insurance Corporation
3. One public official of Grade III or Grade IV at the Ministry of Employment and Labor, who is in charge of collecting premiums for employment insurance and
industrial accident compensation insurance;
4. One public official of Grade III or Grade IV at the
National Tax Service; and
5. Four people with plenty of academic knowledge and experiences in laws, accounting or social insurance.
(3) The term of the members prescribed in subparagraph 5 of paragraph (2) shall be two years.
(4) A meeting of the Committee shall be held with the attendance of a majority of the registered members and a resolution
shall be passed with the approval of a majority of the members
present.
(5) Necessary matters concerning the composition and operation of the Committee other than those prescribed in paragraphs (1)
through (4) shall be determined by the Health Insurance
Corporation.
<This Article Wholly Amended by Presidential Decree No. 22408, Sep. 29, 2010>
Articl e 40-6 (M utatis M utandi s Appli cati on of the Framework Act on Nati onal T axes)
Articles 13 through 17 of the Enforcement Decree of the
Framework Act on National Taxes shall apply mutatis mutandis to the provision of security for payment in order to postpone
the disposition of overdue insurance premiums and other charges. In this case, "security for tax payment" shall be read as
"security for payment", "national taxes" as "insurance premiums", "guaranty insurance policy for tax payment" as "guaranty insurance policy for payment", "head of a district tax office" or
"head of the competent district tax office" as "Health Insurance
Corporation", "taxpayer" as "employer", "certificate of tax payment guarantee" as "certificate of payment guarantee",
"collateral for tax payment" as "collateral for payment", "national taxes, additional charges and disposition fees for arrears" as
"insurance premiums, other charges and disposition fees for arrears", "tax payment guaranty insurance provider" as "payment
guaranty insurance provider" and "tax payment guarantor" as
"payment guarantor".
<This Article Wholly Amended by Presidential Decree No. 22408, Sep. 29, 2010>
Articl e 41 (D ef i ci ts D i sposal of Charges)
(1) "Cases as prescribed by the Presidential Decree" in Article
29 (1) 3 of the Act refer to cases described in any of the following subparagraphs :
1. In case where the delinquent person's whereabouts are unclear;
2. In case where it is confirmed that the delinquent person has no property or that the estimated price of the total
property subject to the disposition of charges in arrears is
too low to have anything left after it is appropriated for the disposition fees;
3. In case where it is confirmed that the total property subject to the disposition of charges in arrears is too small to have anything left after it is appropriated for the
repayment of claims, such as national and local taxes,
which take precedence over premiums and other charges;
and
4. In case where the delinquent company is exempted from the responsibility for paying premiums, etc. pursuant to Article 251 of the Debtor Rehabilitation and Bankruptcy
Act.
(2) If the Health Insurance Corporation intends to make a deficits disposal pursuant to paragraph (1) 1, it shall investigate
and confirm the whereabouts of the delinquent person or whether he/she has any property or not through Sis, Guns, tax offices and other agencies : Provided that this shall not apply in
case the amount of arrears is less than one hundred thousand
won.
<This Article Wholly Amended by Presidential Decree No. 22408, Sep. 29, 2010>
Articl e 41-2 (Request f or Materials on Arrearage or Deficits Disposal)
(1) A person (hereinafter referred to as "requester") who requests personal information on a delinquent or a person
subject to deficits disposal and materials on the amount of arrears or deficits disposal pursuant to Article 29-2 (1) of the Act shall submit documents containing matters described in any
of the following subparagraphs to the Health Insurance
Corporation:
1. The requester's name and address; and
2. Contents of the requested materials, such as on arrearage, etc., and the purpose of their use
(2) The Health Insurance Corporation, receiving a request for materials on arrearage, etc., pursuant to paragraph (1), may provide them in the form of an electronic file prepared pursuant
to Article 41-4 (1) or documents.
(3) If the Health Insurance Corporation has provided materials on arrearage, etc., pursuant to paragraph (2) and there
occurs reasons, such as paying up arrears, canceling deficits disposal, etc., it shall inform the requester of this within fifteen days after the date of the occurrence of the reasons.
(4) Matters necessary for the request and provision of
materials on arrearage, etc. pursuant to paragraph (1) through
(3) shall be determined by the Health Insurance Corporation.
<This Article Wholly Amended by Presidential Decree No. 22408, Sep. 29, 2010>
Articl e 41-3 (R easons f or Exception to Provisi on of M ateri als on
Arrearage or D ef ici ts D isposal )
"Reasons prescribed by the Presidential Decree, such as the as the postponement a disposition on arrears" in the proviso of
Article 29-2 (1) of the Act refer to cases falling under any of the following subparagraphs :
1. In case where the Health Insurance Corporation has postponed a disposition on arrears for delinquents
(hereinafter referred to as "delinquents") falling under
Article 29-2 (1) 1 or 2 of the Act; and
2. In case where the Health Insurance Corporation deems a delinquent to be unable to pay the amount of arrears because of reasons falling under any of the following
items :
A. In case the delinquent suffers severe property damages due to disasters or robbery; and
B. In case the business suffers remarkable losses or falls into a serious crisis
<This Article Wholly Amended by Presidential Decree No. 22408, Sep.
29, 2010>
Articl e 41-4 (Preparati on of El ectronic Fi l es f or Arrearage or
D ef i cits D i sposal )
(1) The Health Insurance Corporation may prepare materials
on arrearage, etc., in the form of electronic files.
(2) Necessary matters concerning the arrangement and management of materials on arrearage, etc., prepared in the form
of electronic files pursuant to paragraph (1) shall be determined by the Health Insurance Corporation.
<This Article Wholly Amended by Presidential Decree No. 22408, Sep. 29, 2010>
Articl e 42 (Cal cul ati on and Payment of Premi ums and Charges f or
I ndustri al Accident Compensation I nsurance)
The Corporation or the Health Insurance Corporation shall calculate every month premiums for industrial accident
compensation insurance collected or paid pursuant to Article 31 (5) of the Act and charges pursuant to Article 9 of the Wage Claim Guarantee Act and the alloted charges in regards to the
individual falling under Article 31 (1) 1 of the Asbestos Injury
Relief Act (tentative English title) (including arrears and additional charges for each) and pay them into the Industrial
Accident Compensation Insurance and Prevention Fund (hereinafter referred to as "Industrial Accident Compensation Insurance and Prevention Fund") under Article 95 of the Industrial Accident
Compensation Insurance Act and the Wage Claim Guarantee
Fund (hereinafter referred to as the "Wage Claim Guarantee
Fund") under Article 17 of the Wage Claim Guarantee Act and
Asbestos Injury Relief Fund (hereinafter referred to as "Asbestos Injury Relief Fund“) under Article 24 of the Asbestos Injury Relief Act.
<This Article Wholly Amended by Presidential Decree No. 22408, Sep. 29, 2010>
Articl e 43 (Accounti ng O rganizati on f or Premi ums, etc.)
The president of the Corporation or the Health Insurance Corporation may appoint a revenue collector for the Industrial Accident Compensation Insurance and Prevention Fund and the
Employment Insurance Fund (hereinafter referred to as
"Employment Insurance Fund") under Article 78 of the
Employment Insurance Act from among the standing directors of the Corporation or the Health Insurance Corporation, and a
cashier for the Industrial Accident Compensation Insurance and
Prevention Fund, Wage Claim Guarantee Fund, Asbestos Injury
Relief Fund and the Employment Insurance Fund from among its employees to have them take charge of collecting premiums and other charges.
<This Article Wholly Amended by Presidential Decree No. 22408,
Sep. 29, 2010>
Articl e 43-2 (D el i very of D ocuments)
In case the Corporation or the Health Insurance Corporation intends to deliver documents on premiums and other charges under this Act by mail pursuant to Article 32 (2) of the Act, it
may send by regular mail.
<This Article Newly Inserted by Presidential Decree No. 22408, Sep. 29, 2010>

CHAPTER Ⅳ

I nsurance Work S ervi ce Agency

Articl e 44 (I nsurance Work S ervi ce Agency)
"Corporations or individuals that meet the criteria prescribed by the Presidential Decree" in Article 33 (1) of the Act refer to
those described in any of the following subparagraphs:
1. A juristic person who has obtained authorization or permission from the competent authorities according to
related laws; and
2. A person who has been registered pursuant to Article 5 of the Certified Labor Affairs Consultant Act and has been
conducting duties under Article 2 of the same Act for three years or more.
<This Article Wholly Amended by Presidential Decree No. 22408, Sep. 29, 2010>
Articl e 45 (S cope of Employers Eligib le to Entrust I nsurance Work )
(1) The scope of employers eligible to entrust insurance work to groups, corporations or individuals (hereinafter referred to as "insurance work service agencies") which have obtained
authorization from the Corporation to do insurance work
pursuant to Article 33 (1) of the Act shall be limited to those which employ less than three hundred workers.
(2) Even if an employer who has entrusted insurance work employs workers in excess of the number prescribed in paragraph (1) due to business expansion or merger, he/she may
continue to be eligible to entrust insurance work during the
insurance year concerned.
(3) An insurance work service agency shall, if it is entrusted with insurance work by an employer prescribed in paragraph (1) or if the entrustment of insurance work is terminated, report this
fact to the Corporation within fourteen days thereof.
<This Article Wholly Amended by Presidential Decree No. 22408, Sep. 29, 2010>
Articl e 46 (S cope of I nsurance Work Ab le to B e Entrusted)
The scope of work able to be entrusted to an insurance work service agency pursuant to the latter part of Article 33 (1)
of the Act is as follows:
1. Reporting total remuneration, etc. pursuant to Article
16-10 of the Act
2. Reporting estimated and final premiums;
3. Administering qualifications for the insured of employment insurance;
4. Reporting the establishment, change and termination of insurance relationships; and
5. Other insurance work that an employer needs to carry out in connection with a regional labor office or the Corporation.
<This Article Wholly Amended by Presidential Decree No. 22408, Sep. 29, 2010>
Articl e 47 (Authori zati on of I nsurance Work S ervice Agency)
(1) If an agency intends to be entrusted with insurance work pursuant to Article 33 (2) of the Act, it shall submit an application for authorization containing such matters as the
contents of entrusted work, and entrusted areas, along with the
following documents, to the Corporation:
1. In case of agencies falling under subparagraph 1 of
Article 44 : A copy of a document proving that the agency has obtained authorization or permission from or has been registered with the competent authorities;
2. In case of falling under subparagraph 2 of Article 44: A
copy of a document proving that the agency is a person described in subparagraph 2 of Article 44;
3. In case of corporations or groups: A copy of bylaws or articles;
4. A copy of rules (hereinafter referred to as "rules on entrustment of insurance work") that the agency will use when
making a contract on entrustment of insurance work with a business owner.
(2) The rules on the entrustment of insurance work shall
include matters described in the following subparagraphs:
1. Procedures for the entrustment of insurance work and termination of the entrustment;
2. Methods of and procedures for handling insurance work;
3. Accounting methods and procedures of the insurance work service agency;
4. Matters concerning the administration of qualifications for the insured of employment insurance and employment
relationship administration for workers covered under industrial accident compensation insurance; and
5. Other matters concerning responsibilities for reporting and paying total remuneration and premiums.
(3) If corporations or groups intend to obtain authorization to be entrusted with insurance work pursuant to Article 33 (2)
of the Act, it is clearly stated in its bylaws, articles, etc. that
he/she can be entrusted to perform insurance work.
(4) "The matters prescribed by the Presidential Decree, such as entrusted areas, etc." in Article 33 (3) of the Act refer to the
following matters:
1. Entrusted areas; and
2. Rules on the entrustment of insurance work.
(5) An insurance work service agency shall apply for authorization to the Corporation no later than seven days before
the date of change, if it intends to change authorized matters pursuant to Article 33 (3) of the Act, and it shall report to the Corporation no later than thirty days before the date of
discontinuation, if it intends to discontinue entrusted work
pursuant to Article 33 (4) of the Act.
<This Article Wholly Amended by Presidential Decree No. 22408, Sep. 29, 2010>
Articl e 48 (Cancel ati on of Authori zation of I nsurance Work S ervi ce
Agency)
(1) If an insurance work service agency falls under any of the following subparagraphs, the Corporation may cancel the authorization pursuant to Article 33 (5) of the Act : Provided
that in case it falls under subparagraph 1, the authorization shall
be cancelled:
1. In case where the authorization is obtained in false or other fraudulent ways;
2. In case where insurance work service is suspended consecutively for two months or longer without justifiable
reasons;
3. In case where insurance work is carried out in false or other fraudulent ways; and
4. In case where the insurance work service agency violates laws or does not comply with the order under laws.
(2) If the Corporation cancels the authorization of an insurance work service agency pursuant to paragraph (1), it shall inform
the insurance work service agency and the employer entrusting the insurance work of this fact without delay.
<This Article Wholly Amended by Presidential Decree No. 22408, Sep. 29, 2010>
Articl e 49 (Heari ng)
The Corporation shall, if it intends to cancel the authorization of an insurance work service agency pursuant to Article 33 (5)
of the Act, hold a hearing.
<This Article Wholly Amended by Presidential Decree No. 22408, Sep. 29, 2010>
Articl e 50 (Noti f i cati on b y I nsurance Work S ervi ce Agency)
When an insurance work service agency receives notification, etc. of the payment of premiums and other charges under the Act
pursuant to Article 34 of the Act, it shall inform the employer of this without delay.
<This Article Wholly Amended by Presidential Decree No. 22408, Sep. 29, 2010>
Articl e 51 (Keeping, etc. of Books by Insurance Work S ervice Agency)
(1) An insurance work service agency shall prepare the following documents and keep them for three years or more pursuant to Article 36 of the Act:
1. A list of employers who have entrusted insurance work;
2. Books on collection affairs by employer;
3. Books on insurance work other than collection affairs such as the report of the insured, and relevant documents,
by employer;
4. Documents relating to the entrustment of insurance work between the employer and the insurance work service
agency;
5. Documents relating to applications for and receipts of the subsidies for vicariously carrying out insurance work
under Article 52; and
6. Documents relating to the notification of the payment of premiums and other charges imposed on the employer.
(2) The documents prescribed in paragraph (1) may be prepared and kept as electronic documents pursuant to
subparagraph 1 of Article 2 of the Framework Act on Electronic
Commerce.
<This Article Wholly Amended by Presidential Decree No. 22408,
Sep. 29, 2010>
Articl e 52 (S upport f or I nsurance Work S ervi ce Agency)
(1) The Corporation may provide the subsidies (hereinafter referred to as "subsidies for carrying out insurance work")
described in the following subparagraphs to an insurance work service agency pursuant to Article 37 of the Act:
1. Subsidy (hereinafter referred to as "subsidy for handling collection affairs") for being entrusted with insurance
work by an employer who employs less than 30 ordinarily employed workers and collecting premiums and
other charges;
2. Subsidy (hereinafter referred to as "subsidy for managing the insured, etc.") for being entrusted with insurance work
by an employer who employs less than 30 ordinarily employed workers and handling insurance affairs such as managing the insured of employment insurance and
industrial accident compensation insurance and reporting
total remuneration; and
3. Subsidy (hereinafter referred to as "grant for promoting coverage") for being entrusted with insurance work by an
employer who employs less than 30 ordinarily employed workers and reporting the establishment of an insurance
relationship for employment insurance and industrial accident compensation insurance.
(2) The subsidies for carrying out insurance work shall be paid according to criteria prescribed by the Minister of
Employment and Labor in consideration of premiums and other charges actually paid by an employer that entrusted insurance
work, the size of business that entrusted insurance work, the
results of the management of the insured, such as aquisition or loss of qualifications for the insured, or the period of
entrustment, with the subsidy for handling collection affairs paid semi-annually and the subsidy for managing the insured paid quarterly.
(3) If an insurance work service agency reports the
discontinuation of its work during the insurance year pursuant to Article 33 (4) of the Act, the amount of actually paid
premiums and other charges under paragraph (2) shall be calculated based on the amount of premiums and other charges paid during the payment period from the first day of the half
year concerned until the fifteenth day of the middle month of the quarter to which the date of discontinuation belongs but
excluding the amount the employer entrusting the insurance work has paid in accordance with the disposition on charges in
arrears under Article 28 of the Act.
(4) The period of entrustment under paragraph (2) shall be counted from the date on which the insurance work service
agency reports the entrustment of insurance work to the
Corporation pursuant to Article 45 (3).
(5) If an insurance work service agency intends to receive the subsidies for carrying out insurance work, it shall make an
application to the Corporation every half year in the case of the subsidy for handling collection affairs and grants for
promoting coverage, and one month after the end of each quarter (the date of discontinuation in case the agency reports the discontinuation of its work pursuant to Article 33 (4) of the
Act) in the case of the subsidy for managing the insured.
<This Article Wholly Amended by Presidential Decree No. 22408, Sep. 29, 2010>
Articl e 53 (R estri ctions on S upport f or I nsurance Work S ervi ce
Agency)
(1) If an insurance work service agency causes a loss in collecting premiums and other charges, the Corporation may
subtract the amount equivalent to the loss from the subsidy for handling collection affairs and/or the subsidy for managing the
insured, etc.
(2) If an insurance work service agency neglects to make a report on the aquisition or loss of qualifications, etc. for the
insured of employment insurance and fails to comply with a correction order after being issued with the order twice or more by the head of the responsible employment security center, the
Corporation shall cut the subsidy for managing the insured etc.
allocated to the insurance work service agency concerned by
50/100 and if it fails to comply after being issued with the correction order three times or more, the Corporation shall not
pay the subsidy for managing the insured, etc.
<This Article Wholly Amended by Presidential Decree No. 22408, Sep. 29, 2010>
Articl e 54 (Fi nanci ng S ub si dies f or Carryi ng O ut I nsurance Work )
(1) The subsidy for handling collection affairs shall be financed from the Employment Insurance Fund and the
Industrial Accident Compensation Insurance and Prevention Fund in proportion to the percentage of each amount for employment insurance and for industrial accident compensation insurance in
the amount paid by the employer.
(2) The subsidy for promoting coverage and the subsidy for managing the insured etc. shall each be financed equally from
the Employment Insurance Fund and the Industrial Accident
Compensation Insurance and Prevention Fund. Provided that, in case of work limited to employment insurance or industrial
accident compensation insurance, the Employment Insurance
Fund or the Industrial Accident Compensation Insurance and
Prevention Fund shall each finance the whole amount.
<This Article Wholly Amended by Presidential Decree No. 22408, Sep. 29, 2010>

CHAPTER Ⅴ

S uppl ementary Provi si ons

<Amended by Presidential Decree No. 22408, Sep. 29, 2010>
Articl e 55 (R eport, S ub mi ssi on, I nvestigati on)
(1) "Cases prescribed by the Presidential Decree" in Articles
44 and 45 (1) of the Act refer to those described in any of the following subparagraphs:
1. In case where it is needed to confirm matters concerning an insurance relationship, such as the establishment,
change or termination of an insurance relationship;
2. In case where it is needed to confirm matters concerning the calculation and collection of premium, such as the
number of workers, the total amount of remuneration, type of business, etc.;
3. In case where it is needed to confirm whether an insurance work service agency handles insurance work in a illegal or unfair way or neglects to handle it; and
4. In case where it is needed to confirm the facts in relation
to the payment of the subsidies for carrying out insurance work
(2) The request for a report and submission of related documents under Article 44 of the Act shall be made in written form.
<This Article Wholly Amended by Presidential Decree No. 22408, Sep. 29, 2010>
Articl e 56 (Entrustment of Work )
(1) The scope of work able to be entrusted by the
Corporation pursuant to Article 46 of the Act is as follows :
1. Work concerning receipt of premiums and other charges;
2. Work concerning return of mistakenly-paid premiums, etc.;
3. Work entailed by the work under subparagraphs 1 and 2. (2) If the Corporation or Health Insurance Corporation
entrusts work pursuant to paragraph (1), it may pay fees for the entrusted work to the entrusted person.
<This Article Wholly Amended by Presidential Decree No. 22408, Sep. 29, 2010>
Articl e 56-2 (Approval of B udget and B usi ness O perati on Pl an)
(1) If the Health Insurance Corporation intends to receive the approval of the Minister of Employment and Labor concerning
the budget for the following fiscal year pursuant to Article 46-2 (1) of the Act, it shall submit to the Minister of Employment and Labor a budget request form and details of business for the
budget by May 31st of every year.
(2) If the Health Insurance Corporation intends to receive the approval of the Minister of Employment and Labor concerning
the business operation plan pursuant to Article 46-2 (1) of the Act, it shall establish a business operation plan without delay after the approved budget under paragraph (1) is confirmed and
submit it to the Minister of Employment and Labor.
(3) If the Health Insurance Corporation intends to change the approved budget and/or business operation plan prescribed in
paragraph (1) and (2), it shall submit documents containing the reason for and details of change to the Minister of Employment and Labor and receive approval.
<This Article Newly Inserted by Presidential Decree No. 22408, Sep. 29, 2010>
Articl e 56-3 (S ub mi ssi on of B udget and B usi ness O perati on Pl an)
(1) If the Health Insurance Corporation intends to report the business performance and settlement of accounts under Article
46-2 (2) of the Act to the Minister of Employment and Labor, it shall attach the following documents to the final accounts report
and submit it to the Minister of Employment and Labor.
1. Financial statements (including the audit opinion of a certified public accountant or an accounting corporation
established pursuant to Article 23 of the Certified Public
Accountant Act) and annexed documents
2. Other necessary documents for proving the details of the settlement of accounts.
<This Article Newly Inserted by Presidential Decree No. 22408, Sep. 29, 2010>
Articl e 56-4 (S tatus R eport of Col lection of Premi ums, etc.)
The Minister of Employment and Labor may order the
Health Insurance Corporation to report in written form the collection status of premiums and other charges, etc. collected in the previous month pursuant to Article 46-2 (3) of the Act by
the last day of every month.
<This Article Newly Inserted by Presidential Decree No. 22408, Sep. 29, 2010>

CHAPTER Ⅵ

Fi nes f or Negl i gence

Articl e 57 (Criteri a f or I mposi ti on of Fi nes f or Negl igence)
The criteria for imposing a fine for negligence pursuant to
Article 50 (1) and (2) of the Act is as Table 2.
<This Article Wholly Amended by Presidential Decree No. 22826, April. 4, 2011>

Addendum <Presidential Decree No. 22807, Mar. 30, 2011>

This Decree shall enter into force on April 1, 2011.

Addenda <Presidential Decree No. 22826, April. 4, 2011>

Articl e 1 (Enf orcement D ate)
This Act shall enter into force on the date of its promulgation.
Articl e 2 (T ransiti onal M easures Concerning Fi nes f or Negl igence)
Notwithstanding the revised provisions under Table 2, previous provisions shall apply regarding application of criteria for imposing fines for negligence concerning an offense committed before this Act enters into force.
[Table 1] <Amended by Presidential Decree No. 22408, Sep. 29, 2010>

I ncrease/D ecrease in I ndustrial Accident Compensation

I nsurance Premium R ate

(Relating to Articles 18 (1))

[Table 2]<Amended by Presidential Decree No. 22826, Apr. 4, 2011>

Criteria f or I mposi tion of Fi nes f or Negligence

(Relating to Article 57)
1. General Criteria
A. The criteria for the imposition of fines for negligence according to the number of offenses shall apply to cases where a fine for negligence has been imposed for the same offense in the past one year (in the past three-year period in the case of the violation prescribed in Articles 11, 16-10 (1) and (2), 17 and 19 of the Act). In such cases, the number of offenses shall be calculated based on the date on which a fine for negligence was imposed for the relevant offense and the date on which the same offense was found again.
B. The Minister of Employment and Labor shall, if an offender falls under any of the following conditions, may reduce the amount of fine for negligence under subparagraph 2 by up to half : Provided that this shall not apply to offenders who delay payment of a fine for negligence.
1) Where the offender falls under any subparagraph of Article
2-2 (1) of the Enforcement Decree on the Act on the
Regulation of Violations of Public Order;
2) Where the offender has a reason, such as suffering a considerable loss to property due to a natural disaster, fire, etc., or facing a serious crisis due to worsening business conditions;
3) Where the offense is deemed to have been caused by mistake, such as minor carelessness or error;
4) Where the offender has been imposed with fines for negligence, fines, suspension of business, etc., under other Acts for the same offense;
5) Where the offender has corrected or solved the consequences resulting from the offense; or
6) Other cases where it is deemed necessary to reduce the
amount of fine for negligence in consideration of the degree of offense, the motive and consequences of offense, etc.
C. The Minister of Employment and Labor may raise the amount of fine for negligence under subparagraph 2 by up to half in any of the following cases : Provided that the amount shall not exceed the maximum amount of fine for negligence under Article 50 (1) or (2) of the Act.
1) Where the offender committed two offenses or more
2) Other cases where it is deemed necessary to raise the amount of fine for negligence in consideration of the degree of offense, the motive and consequences of offense, etc.
2. Individual Criteria

Note : Among the offenses described in item A of subparagraph 2 of the table above, those committed in violation of Articles 11, 12, 16-10,
17 and 19 of the Act shall be considered separate offenses in calculating their frequency.