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Passenger Transport Service Act


Published: 2014-01-28

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CHAPTER I GENERAL PROVISIONS
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 Article 1 (Purposes)   print
The purposes of this Act are to promote public welfare by establishing order in passenger transport services and striving for the smooth transport of passengers and the overall development of passenger transport services.
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 Article 2 (Definitions)   print
The terms used in this Act shall be defined as follows: <Amended by Act No. 9733, May 27, 2009; Act No. 11690, Mar. 23, 2013; Act No. 12377, Jan. 28, 2014>
1. The term "automobile" means passenger cars and buses referred to in Article of the Motor Vehicle Management Act;
2. The term "passenger transport services" means passenger transport business, rent-a-car business, bus terminal business, passenger transport franchise business;
3. The term "passenger transport business" means business that transports passengers for profit using automobiles to respond to demand from others;
4. The term "rent-a-car business" means business that rents automobiles for profit to respond to demand from others;
5. The term "bus terminal" means a facility and place, other than those falling under either of the following items, installed pursuant to Article 36 which are used by buses to stop or by passengers to board or alight buses, the types of which are prescribed by Ordinance of the Ministry of Land, Infrastructure and Transport:
(a) Road surfaces;
(b) Places used for ordinary traffic;
6. The term "bus terminal business" means business that uses a bus terminal for passenger transport business;
7. The term "passenger transport franchise business" means business that transports passengers or provides services appurtenant to by requesting to a passenger transport business franchisee affiliated to respond to demand from others;
8. The term "passenger transport business franchisor" means a person who has obtained a license for passenger transport franchise business pursuant to Article 49-2;
9. The term "passenger transport business franchisee" means a person who has signed a franchisee agreement as a franchisee of a passenger transport business franchisor and is allowed to use the transport business franchisor's service mark (including a trademark, trade name, etc.; hereinafter the same shall apply), from among persons who operates a passenger transport business under Article 3 (limited to a passenger transport business prescribed by Presidential Decree), and transports passengers and provides services appurtenant thereto after receiving traffic assignment by the transport business franchisor.
CHAPTER II PASSENGER TRANSPORT BUSINESS
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 Article 3 (Types of Passenger Transport Businesses)   print
(1) Types of passenger transport businesses shall be as follows: <Amended by Act No. 12377, Jan. 28, 2014>
1. A route passenger transport business: A business that transports passengers on a course designated for regular service (hereinafter referred to as "route");
2. An area passenger transport business: A business that transports passengers within a designated business area;
3. An on-demand passenger transport business: A business that transports passengers by using, as the first or last stop, an agricultural or fishing village referred to in subparagraph 5 of Article 3 of the Framework Act on Agriculture and Fisheries, Rural Community and Food Industry and by operating lines, time and frequencies of transport flexibly upon request of passengers.
(2) Passenger transport businesses listed in paragraph (1) 1 and 2 may be classified as prescribed by Presidential Decree.
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 Article 4 (License, etc.)   print
(1) Any person who intends to engage in a passenger transport business shall prepare business plans and obtain a license from the Minister of Land, Infrastructure and Transport, as prescribed by Ordinance of the Ministry of Land, Infrastructure and Transport: Provided, That any person who intends to engage in a passenger transport business prescribed by Presidential Decree shall prepare business plans and obtain a license from the Special Metropolitan City Mayor, a Metropolitan City Mayor, a Special Self-Governing City Mayor, a Do Governor, or the Governor of a Special Self-Governing Province (hereinafter referred to as "Mayor/Do Governor") or register with the Mayor/Do Governor, as prescribed by Ordinance of the Ministry of Land, Infrastructure and Transport. <Amended by Act No. 11447, May 23, 2012; Act No. 11690, Mar. 23, 2013>
(2) In granting a license or accepting registration referred to in paragraph (1), the routes or business areas shall be fixed by type of passenger transport business referred to in Article 3.
(3) Where the Minister of Land, Infrastructure and Transport or the relevant Mayor/Do Governor deems it necessary to grant a license under paragraph (1) or to accept registration of passenger transport business prescribed by Presidential Decree, he/she may grant the license with restrictions on the scope or period of the passenger transport business (hereinafter referred to as "restricted license") or attach necessary conditions for establishing the order in the passenger transport business thereto, as prescribed by Ordinance of the Ministry of Land, Infrastructure and Transport. <Amended by Act No. 11690, Mar. 23, 2013>
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 Article 5 (Standards for License, etc.)   print
(1) Licensing standards for passenger transport business shall include the following requirements: <Amended by Act No. 11690, Mar. 23, 2013>
1. The business plan is required to match the transport capacity and transport demand of the relevant route or business area;
2. The operator of a passenger transport business is required to have the minimum number of automobiles for the license, garage area holdings, incidental facilities, etc. and to meet the requirements determined by Ordinance of the Ministry of Land, Infrastructure and Transport;
3. In cases of passenger transport business prescribed by Presidential Decree, the operator of the passenger transport business is required to meet the requirements determined by Ordinance of the Ministry of Land, Infrastructure and Transport, such as driving experience, whether he/she has caused a traffic accident, and his/her dwelling place.
(2) The Minister of Land, Infrastructure and Transport may establish guidelines for calculating transport capacity provided for in paragraph (1) 1 (limited to cases of passenger transport business prescribed by Presidential Decree) and notify the relevant Mayor/Do Governor of such guidelines. <Amended by Act No. 11690, Mar. 23, 2013>
(3) Upon being notified of the guidelines for calculating the transport capacity pursuant to paragraph (2), the Mayor/Do Governor shall establish a plan for transport supply every five years, announce it publicly, and submit a report thereon to the Minister of Land, Infrastructure and Transport. <Newly Inserted by Act No. 9733, May 27, 2009; Act No. 11690, Mar. 23, 2013>
(4) Where it is necessary to modify a plan for transport supply under paragraph (3) on the grounds specified by Ordinance of the Ministry of Land, Infrastructure and Transport, such as calculation or recalculation of the total quantity of taxis for each business area under Article 9 of the Act on the Development of Taxi Transport Business and radical changes in transport demand, the Mayor/Do Governor may modify such plan with approval from the Minister of Land, Infrastructure and Transport: Provided, That the plan for transport supply may be modified without approval from the Minister of Land, Infrastructure and Transport, where the plan is modified due to recalculation of the total quantity of taxis for each business area. <Newly Inserted by Act No. 9733, May 27, 2009; Act No. 11690, Mar. 23, 2013; Act No. 12377, Jan. 28, 2014>
(5) The minimum number of automobiles to be registered, garage area holdings, incidental facilities, which constitute the registration requirements for automobile transport business, the establishment and public announcement of a plan for transport supply, and other necessary matters shall be determined by Ordinance of the Ministry of Land, Infrastructure and Transport. <Amended by Act No. 9733, May 27, 2009; Act No. 11690, Mar. 23, 2013>
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 Article 5-2 (Establishment, etc. of Supply and Demand Plans for Passenger Transport Business)   print
(1) Notwithstanding the proviso to Article 4 (1), if deemed necessary to adjust the supply and demand of passenger transport business specified by Presidential Decree, the Minister of Land, Infrastructure and Transport may establish supply and demand plans for passenger transport business, subject to consultation by the committee on supply and demand adjustment for passenger transport business referred to in paragraph (2).
(2) To deliberate on the supply and demand plans referred to in paragraph (1), the Minister of Land, Infrastructure and Transport shall establish the supply and demand adjustment committee for passenger transport business (hereinafter referred to as "supply and demand adjustment committee" in this Article). In such cases, the composition and operation of the supply and demand adjustment committee and other necessary matters shall be determined by Presidential Decree.
(3) The Minister of Land, Infrastructure and Transport may place a restriction on registration of passenger transport business prescribed by Presidential Decree pursuant to the supply and demand plans referred to in paragraph (1) for a given period of up to three years: Provided, That if necessary, he/she may extend such restriction on a two-year basis after undergoing the same procedure.
(4) Where the Minister of Land, Infrastructure and Transport intends to restrict the registration of passenger transport business prescribed by Presidential Decree pursuant to paragraph (3), he/she shall make notification of such restriction in the official gazette and notify the Mayor/Do Governor thereof. The foregoing shall also apply to the cancellation of the restrictions on registration.
(5) Necessary matters concerning the supply and demand plans, adjustment procedures, etc. for passenger transport business shall be prescribed by Presidential Decree.
[This Article Newly Inserted by Act No. 12377, Jan. 28, 2014]
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 Article 6 (Disqualification)   print
No person who falls under any of the following subparagraphs shall be eligible for a license or registration for passenger transport business. The same shall apply to any corporation, any of whose officer falls under any of the following subparagraphs: <Amended by Act No. 12377, Jan. 28, 2014>
1. Any person who is incompetent under the adult guardianship;
2. Any person who has been declared bankrupt and is not yet rehabilitated;
3. Any person who has been sentenced to imprisonment or heavier punishment in violation of this Act and for whom two years have yet to elapse after the execution of such sentence was terminated (including cases where the execution of such sentence is deemed terminated) or the exemption of the execution of such sentence was made definite;
4. Any person who is in the period of a stay of sentence after he/she has been sentenced to stayed imprisonment or heavier punishment in violation of this Act;
5. Any person for whom two years have not passed from the date when his/her license or registration for passenger transport business was cancelled.
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 Article 7 (Commencement of Transport Service)   print
Any person who has obtained a license for passenger transport business pursuant to Article 4 (1) shall commence transport service with his/her transport facilities confirmed according to the business plan by the deadline or within the period designated by the Minister of Land, Infrastructure and Transport or the relevant Mayor/Do Governor: Provided, That where a person who has obtained a license for passenger transport business is not able to commence transport services by the deadline or within the period designated by the Minister of Land, Infrastructure and Transport or the relevant Mayor/Do Governor due to any natural disaster or other inevitable grounds, the Minister of Land, Infrastructure and Transport or the relevant Mayor/Do Governor may extend such deadline or period upon request from the person who has obtained the license. <Amended by Act No. 11690, Mar. 23, 2013>
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 Article 8 (Reporting, etc. on Charges and Fares)   print
(1) Any person who has obtained a license for passenger transport business pursuant to Article 4 (1) shall fix charges or fares within the scope of the standards and rates determined by the Minister of Land, Infrastructure and Transport or the relevant Mayor/Do Governor and submit a report thereon to the Minister of Land, Infrastructure and Transport or the relevant Mayor/Do Governor. <Amended by Act No. 11690, Mar. 23, 2013>
(2) Where a person who has obtained a license or registration for passenger transport business pursuant to Article 4 (1) and is determined by Presidential Decree intends to fix charges or fares, he/she shall report to the relevant Mayor/Do Governor, notwithstanding paragraph (1). The same shall apply where he/she intends to change charges or fares.
(3) Necessary matters for determining standards for charges, fares and rates referred to in paragraph (1) shall be prescribed by Ordinance of the Ministry of Land, Infrastructure and Transport. <Amended by Act No. 11690, Mar. 23, 2013>
(4) Any route passenger transport business operator shall transport, free of charge, one child under six years of age who is accompanied by a passenger: Provided, That charges or fares may be imposed on a passenger accompanied by children who wishes to have a separate seat assigned to such child.
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 Article 9 (Terms and Conditions of Transport)   print
(1) Any person who has obtained a license or registration for passenger transport business (hereinafter referred to as "transport business operator") pursuant to Article 4 (1) shall determine the terms and conditions of transport and report them to the Minister of Land, Infrastructure and Transport or the relevant Mayor/Do Governor. The same shall apply where he/she intends to amend such terms and conditions of transport. <Amended by Act No. 11690, Mar. 23, 2013>
(2) Entries in terms and conditions of transport referred to in paragraph (1) and other necessary matters shall be determined by Ordinance of the Ministry of Land, Infrastructure and Transport. <Amended by Act No. 11690, Mar. 23, 2013>
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 Article 10 (Modification of Business Plans)   print
(1) Where a person who has obtained a license for passenger transport business pursuant to Article 4 (1) intends to modify the relevant business plan, he/she shall receive authorization from the Minister of Land, Infrastructure and Transport or the relevant Mayor/Do Governor: Provided, That a person that intends to change any minor matters specified by Ordinance of the Ministry of Land, Infrastructure and Transport shall submit a report on the changed matters to the Minister of Land, Infrastructure and Transport or the relevant Mayor/Do Governor. <Amended by Act No. 11690, Mar. 23, 2013>
(2) Where a person who has completed registration for passenger transport business pursuant to the proviso to Article 4 (1) intends to modify the business plan, he/she shall file an application for registration of the modified matters with the relevant Mayor/Do Governor: Provided, That a person who intends to change any minor matters specified by Ordinance of the Ministry of Land, Infrastructure and Transport shall submit a report on the changed matters to the relevant Mayor/Do Governor. <Amended by Act No. 11690, Mar. 23, 2013>
(3) The Minister of Land, Infrastructure and Transport or the relevant Mayor/Do Governor may restrict the modification of business plans referred to in paragraphs (1) and (2) in any of the following cases: <Amended by Act No. 11690, Mar. 23, 2013; Act No. 12377, Jan. 28, 2014>
1. Where a transport business operator fails to commence transport services by the deadline or within the period referred to in Article 7;
2. Where a transport business operator fails to comply with a correction order under Article 23;
3. Where one year has not passed since a transport business operator received an order for change of a business plan to close routes or reduce the number of automobiles pursuant to Article 85 (1);
4. Where the severity and frequency of traffic accidents are higher than that described in Presidential Decree;
5. Where the Minister restricts the registration of passenger transport business pursuant to Article 5-2 (3).
(4) Procedures and standards for modification of business plans under paragraphs (1) through (3) and other necessary matters shall be determined by Ordinance of the Ministry of Land, Infrastructure and Transport. <Amended by Act No. 11690, Mar. 23, 2013>
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 Article 11 (Joint Transport Service Agreement)   print
Where a transport business operator intends to conclude a contract on joint management or an agreement on transport service with any other transport business operator (hereinafter referred to as "joint transport service agreement") in order for the smooth transport of and better service for passengers, he/she shall conclude such contract or agreement as prescribed by Presidential Decree. The same shall apply to the modification of a joint transport service agreement.
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 Article 12 (Ban on Use of Name)   print
(1) No transport business operator shall allow another transport business operator or a person who is not a transport business operator to operate a passenger transport business by using any or all of his/her commercial automobiles, either commercially or non-commercially. In such cases, the same shall apply where a transport business operator issues orders for the relevant business to another transport business operator or a person who is not a transport business operator.
(2) No transport business operator shall operate a passenger transport business under his/her own or another's name by using any or all of another transport business operator's commercial automobiles. In such cases, the same shall apply where a transport business operator receives orders for the relevant business from another transport business operator.
(3) No person, other than a transport business operator, shall operate a passenger transport business under his/her own name or another's name by using any or all of transport business operator's commercial automobiles. In such cases, the same shall apply where a person, other than a transport business operator, receives orders for the relevant business from a transport business operator.
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 Article 13 (Entrustment of Managerial Tasks)   print
(1) Any transport business operator who intends to entrust the managerial tasks of a passenger transport business shall submit a report thereon to the Minister of Land, Infrastructure and Transport or the relevant Mayor/Do Governor. <Amended by Act No. 11690, Mar. 23, 2013>
(2) No managerial tasks referred to in paragraph (1) shall be entrusted to a person that is not a transport business operator.
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 Article 14 (Transfer, Acquisition, etc. of Business)   print
(1) Any person who intends to transfer or acquire a passenger transport business shall submit a report thereon to the Minister of Land, Infrastructure and Transport or the relevant Mayor/Do Governor, as prescribed by Ordinance of the Ministry of Land, Infrastructure and Transport. In such cases, if deemed necessary to establish the order of passenger transport business prescribed by Presidential Decree, the Minister of Land, Infrastructure and Transport or the Mayor/Do Governor may restrict the scope of areas for transfer and acquisition, as prescribed by Ordinance of the Ministry of Land, Infrastructure and Transport. <Amended by Act No. 11690, Mar. 23, 2013; Act No. 12377, Jan. 28, 2014>
(2) Notwithstanding paragraph (1), any person who intends to transfer or acquire a passenger transport business specified by Presidential Decree shall obtain authorization from the Minister of Land, Infrastructure and Transport or the relevant Mayor/Do Governor, as prescribed by Ordinance of the Ministry of Land, Infrastructure and Transport. In such cases, the Minister of Land, Infrastructure and Transport or the relevant Mayor/Do Governor may restrict the transfer or acquisition of a passenger transport business during the period fixed by Ordinance of the Ministry of Land, Infrastructure and Transport. <Amended by Act No. 11690, Mar. 23, 2013>
(3) No transport business operator who is obliged to obtain authorization under paragraph (2) and who is prescribed by Presidential Decree shall transfer his/her business. <Newly Inserted by Act No. 9733, May 27, 2009>
(4) Where corporations that are transport business operators intend to consolidate (excluding cases where a corporation which is a transport business operator merges with a corporation which is not a transport business operator), they shall submit a report to the Minister of Land, Infrastructure and Transport or the Mayor/Do Governor, as prescribed by Ordinance of the Ministry of Land, Infrastructure and Transport. <Amended by Act No. 11690, Mar. 23, 2013>
(5) Where a report or authorization referred to in paragraphs (1), (2) and (4) is made or granted, a person who has acquired a passenger transport business shall succeed to the status as a transport business operator that a person who has transferred the passenger transport business held, and a corporation that is newly established by a merger or survives a merger shall succeed to the status as a transport business operator, the corporation of which ceases to exist after a merger held. <Amended by Act No. 9733, May 27, 2009>
(6) Article 6 shall apply mutatis mutandis to disqualification for a person who has filed a report or received authorization pursuant to paragraphs (1), (2) and (4). <Amended by Act No. 9733, May 27, 2009>
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 Article 15 (Inheritance of Passenger Transport Business)   print
(1) Where a transport business operator dies and his/her heir intends to continue the passenger transport business, the latter shall submit a report to the Minister of Land, Infrastructure and Transport or the relevant Mayor/Do Governor within 90 days after the date when the deceased person has died: Provided, That where a transport business operator prescribed by Presidential Decree has died, his/her heir may not continue the passenger transport business. <Amended by Act No. 9733, May 27, 2009; Act No. 11690, Mar. 23, 2013>
(2) Where an heir has filed a report under paragraph (1), it shall be deemed that a license or registration of passenger transport business for the deceased person is a license or registration for the heir during the period from the date of the deceased person's death to the date of report.
(3) An heir who has filed a report pursuant to paragraph (1) shall succeed to the status as a transport business operator that the deceased person had.
(4) Article 6 shall apply mutatis mutandis to disqualification for a person who has filed a report pursuant to paragraph (1): Provided, That where the heir transfers the inherited passenger transport business to another person within 90 days from the date of the deceased person's death, it shall be deemed that a license or registration for passenger transport business for the deceased person is a license or registration for the heir during the period from the date of the deceased person's death to the date of transfer.
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 Article 16 (Temporary Closure or Permanent Closure of Passenger Transport Business)   print
(1) Where a person who has obtained a license for passenger transport business pursuant to Article 4 (1) intends to temporarily shut down or permanently close down the whole or any part of his/her passenger transport business, he/she shall obtain permission from the Minister of Land, Infrastructure and Transport or the relevant Mayor/Do Governor, as prescribed by Ordinance of the Ministry of Land, Infrastructure and Transport: Provided, That this shall not apply where he/she has temporarily shut down or permanently closed down such business due to the destruction of a road or a bridge or due to any reasonable cause. <Amended by Act No. 11690, Mar. 23, 2013>
(2) Where a person who has completed registration for passenger transport business pursuant to the proviso to Article 4 (1) intends to temporarily shut down the whole or any part of such business or permanently close down the whole of such business, he/she shall submit a report thereon to the relevant Mayor/Do Governor as prescribed by Ordinance of the Ministry of Land, Infrastructure and Transport. <Amended by Act No. 11690, Mar. 23, 2013>
(3) No period of temporary closure referred to in paragraphs (1) and (2) shall exceed one year.
(4) Where a transport business operator intends to temporarily shut down or permanently close down the whole or any part of the passenger transport business, he/she shall place a notice in advance at the place of business and other places readily visible to the general public.
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 Article 17 (Automobile Indications)   print
Any transport business operator shall indicate his/her name, sign, and other matters determined by Ordinance of the Ministry of Land, Infrastructure and Transport on the outside of an automobile used for passenger transport business. <Amended by Act No. 11690, Mar. 23, 2013>
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 Article 18 (Transport of Mails, etc.)   print
(1) A route passenger transport business operator may transport mail, newspapers, passengers' hand baggage, and other parcels specified by Ordinance of the Ministry of Land, Infrastructure and Transport that need to be transported promptly, along with passengers. <Amended by Act No. 12377, Jan. 28, 2014>
(2) The volume and weight of parcels that a route passenger transport business operator may transport pursuant to paragraph (1) and other necessary matters shall be prescribed by Ordinance of the Ministry of Land, Infrastructure and Transport. <Newly Inserted by Act No. 12377, Jan. 28, 2014>
(3) Notwithstanding paragraph (1), the Minister of Land, Infrastructure and Transport or the relevant Mayor/Do Governor may issue an order to prohibit transport of parcels to the route passenger transport business operator, if deemed necessary for the safety of passengers. <Newly Inserted by Act No. 12377, Jan. 28, 2014>
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 Article 19 (Measures, etc. against Accidents)   print
(1) Where a natural disaster or a traffic accident causes casualties among passengers, a transport business operator shall promptly take necessary measures, such as managing articles left behind or providing alternative transportation means, as prescribed by Ordinance of the Ministry of Land, Infrastructure and Transport. <Amended by Act No. 11690, Mar. 23, 2013>
(2) Where a commercial automobile causes any of the following accidents (hereinafter referred to as "serious traffic accident"), the transport business operator shall without delay submit a report to the Minister of Land, Infrastructure and Transport or the relevant Mayor/Do Governor, as prescribed by Ordinance of the Ministry of Land, Infrastructure and Transport: <Amended by Act No. 11690, Mar. 23, 2013>
1. An overturn;
2. A fire;
3. An accident that causes casualties more than the number prescribed by Presidential Decree.
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 Article 20 (Evaluation of Management and Services of Passenger Transport Service Provider)   print
(1) The Minister of Land, Infrastructure and Transport or the relevant Mayor/Do Governor may conduct an evaluation of the management status and service of a person who provides a passenger transport service (hereinafter referred to "passenger transport service provider") in order to systematically support, promote and improve passenger transport services. <Amended by Act No. 11690, Mar. 23, 2013>
(2) The Minister of Land, Infrastructure and Transport or the relevant Mayor/Do Governor may publicly announce the results of the evaluation of management and services under paragraph (1) (excluding the results of management evaluation), as prescribed by Ordinance of the Ministry of Land, Infrastructure and Transport. <Amended by Act No. 11690, Mar. 23, 2013>
(3) The Minister of Land, Infrastructure and Transport or the relevant Mayor/Do Governor may grant rewards, issue certificates of excellent performance, or preferentially provide financial supports under Article 50 to persons who show the excellent performance in evaluating the management and services under paragraph (1), as prescribed by Ordinance of the Ministry of Land, Infrastructure and Transport. <Amended by Act No. 11690, Mar. 23, 2013>
(4) The Minister of Land, Infrastructure and Transport or the relevant Mayor/Do Governor may request a passenger transport service provider to submit data necessary for the management and service evaluation under paragraph (1). <Amended by Act No. 11690, Mar. 23, 2013>
(5) Necessary matters concerning the subject, criteria, methods of, and procedures for the management and service evaluation conducted by the Minister of Land, Infrastructure and Transport or the relevant Mayor/Do Governor pursuant to paragraph (1) shall be prescribed by Ordinance of the Ministry of Land, Infrastructure and Transport. <Amended by Act No. 11690, Mar. 23, 2013>
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 Article 21 (Matters to be Observed by Transport Business Operators)   print
(1) Any transport business operator determined by Presidential Decree shall receive all charges or fares (hereinafter referred to as "transport gains") which passengers have paid to any person who engages in driving service of passenger transport business after satisfying requirements for driving services provided for in Article 24 (hereinafter referred to as "transport employee") from the transport employees.
(2) Any transport business operator shall allow persons who meet the requirements referred to in Article 24 to engage in driving services.
(3) No transport business operator shall become a franchisee of at least two passenger transport franchise businesses (hereinafter referred to as "transport business franchisee"). <Newly Inserted by Act No. 9733, May 27, 2009>
(4) Any transport business operator who becomes a transport business franchisee (limited to cases where a person engages in a passenger transport business with one automobile and directly engages in driving service) shall change his/her trade name to that of the transport business franchisor's trade name and submit a report thereon to the Mayor/Do Governor, as prescribed by Ordinance of the Ministry of Land, Infrastructure and Transport. <Newly Inserted by Act No. 9733, May 27, 2009; Act No. 11690, Mar. 23, 2013>
(5) Any transport business operator shall keep safety seat belts worn by passengers pursuant to Article 27-2 in the state of operating normally. <Newly Inserted by Act No. 11447, May 23, 2012>
(6) Any transport business operator shall train his/her transport employees on the fastening of safety seat belts by passengers. In such cases, the method, details, timing, period of such training and other necessary matters shall be prescribed by Ordinance of the Ministry of Land, Infrastructure and Transport. <Newly Inserted by Act No. 11447, May 23, 2012; Act No. 11690, Mar. 23, 2013>
(7) With regard to automobiles used for an area passenger transport business determined by Presidential Decree, airbags shall be installed in the driver's seat and the seat next thereto, as prescribed by Ordinance of the Ministry of Land, Infrastructure and Transport. <Newly Inserted by Act No. 12020, Aug. 6, 2013>
(8) Matters to be observed by transport business operators concerning safety while driving, passengers' convenience, or directions and confirmation for service improvement, other than those listed in paragraphs (1) through (7), shall be determined by Ordinance of the Ministry of Land, Infrastructure and Transport. <Amended by Act No. 9733, May 27, 2009; Act No. 11447, May 23, 2012; Act No. 11690, Mar. 23, 2013; Act No. 12020, Aug. 6, 2013>
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 Article 22 (Notification on Current State of Transport Employees, etc.)   print
(1) Any transport business operator (excluding any person who operates a passenger transport business with one automobile and directly engages in driving service) shall notify the relevant Mayor/Do Governor of the following matters concerning transport employees by the 10th day of each month:
1. A list of transport employees who are newly employed or have retired during the preceding month (in cases of newly employed transport employees, including types and acquisition date of their driving licenses);
2. The status of transport employees at the end of the preceding month.
(2) The Mayor/Do Governor who has been notified of the matters under paragraph (1) shall without delay submit a report thereon to the Minister of Land, Infrastructure and Transport. <Amended by Act No. 11690, Mar. 23, 2013>
(3) The Mayor/Do Governor who has administered an examination referred to in Article 24 (1) 3 shall report the current status of persons who have obtained qualifications to the Minister of Land, Infrastructure and Transport by the 10th day of each month, as prescribed by Ordinance of the Ministry of Land, Infrastructure and Transport. <Newly Inserted by Act No. 12377, Jan. 28, 2014>
(4) A training institution for transport employees, etc. which has provided training for transport employees under Article 25 (1) shall report the current status of transport employees who received training to the Minister of Land, Infrastructure and Transport by the 10th day of each month. <Newly Inserted by Act No. 12377, Jan. 28, 2014>
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 Article 22-2 (Computerization of Transport Employee Management Business)   print
(1) To manage the current status of transport employees efficiently, the Minister of Land, Infrastructure and Transport may establish and operate a system for collecting and managing the information specified by Ordinance of the Ministry of Land, Infrastructure and Transport (hereinafter referred to as "transport employee management system" in this Article), including the current status of transport employees.
(2) If necessary for public purposes, such as the efficient management of transport employees and the prevention of traffic accidents, the Minister of Land, Infrastructure and Transport may allow the integrated use of data processed by the transport employee management system by City/Do, associations under Article 53, etc., as prescribed by Ordinance of the Ministry of Land, Infrastructure and Transport.
[This Article Newly Inserted by Act No. 12377, Jan. 28, 2014]
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 Article 23 (Improvement Order, etc. for Passenger Transport Business)   print
(1) If deemed necessary for the smooth transport of and better service for passengers, the Minister of Land, Infrastructure and Transport or the relevant Mayor/Do Governor (referring to the head of a Si/Gun for the transport business determined by Presidential Decree, in cases falling under subparagraph 10) may order a transport business operator to take the following measures: <Amended by Act No. 11295, Feb. 1, 2012; Act No. 11690, Mar. 23, 2013>
1. Change of business plans (excluding change of a business plan to close routes or reduce the number of automobiles under Article 85 (1));
2. Extension, curtailment or change of routes;
3. Adjustment of charges or fares;
4. Change of terms and conditions on passenger transport;
5. Improvement of automobiles and transport facilities;
6. Improvement in the method of collecting charges or fares;
7. Conclusion of joint transport service agreements;
8. Purchase of an insurance policy or conclusion of a mutual aid agreement for automobile accident compensation;
9. Necessary measures concerning ensuring safety while driving and improving services;
10. Operation of remote routes and other unprofitable routes.
(2) Where the area or route which has difficulty in providing regular-route bus services or operating subways requires urgent transport supply due to natural disasters, etc. the Minister of Land, Infrastructure and Transport or the relevant Mayor/Do Governor may order a transport business operator to operate buses as alternative means of transport by extending or changing a regular bus route or operating an irregular bus route. <Amended by Act No. 11690, Mar. 23, 2013>
(3) Where any transport business operator suffers a loss incurred by complying with a correction order under paragraph (1) 10 or an order issued to operate buses under paragraph (2), the Minister of Land, Infrastructure and Transport, the relevant Mayor/Do Governor or the head of a Si/Gun shall compensate such loss, as prescribed by Presidential Decree. <Amended by Act No. 11295, Feb. 1, 2012; Act No. 11690, Mar. 23, 2013>
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 Article 24 (Requirements for Engaging in Driving Service of Passenger Transport Business)   print
(1) Any person who intends to engage in driving service of a passenger transport business shall meet all the following requirements: <Amended by Act No. 11690, Mar. 23, 2013>
1. Satisfying the necessary requirements concerning driving service, such as age and driving career determined by Ordinance of the Ministry of Land, Infrastructure and Transport;
2. Passing a close inspection for driving aptitude conducted by the Minister of Land, Infrastructure and Transport, as prescribed by Ordinance of the Ministry of Land, Infrastructure and Transport;
3. Acquiring qualifications, by a person who meets the requirements referred to in subparagraphs 1 and 2, from the Minister of Land, Infrastructure and Transport or the relevant Mayor/Do Governor, after he/she passes an examination administered by the Minister of Land, Infrastructure and Transport or such Mayor/Do Governor on passenger transport service-related Acts and subordinate statutes, geographical familiarity, etc.
(2) Necessary matters concerning the implementation of an examination and the acquisition of qualifications referred to in paragraph (1) 3 and other matters shall be prescribed by Ordinance of the Ministry of Land, Infrastructure and Transport. <Amended by Act No. 11690, Mar. 23, 2013>
(3) Where a person who intends to obtain driving qualifications for passenger transport business falls under any of the following cases, he/she shall not acquire the qualification referred to in paragraph (1):
1. A person who has been sentenced to imprisonment without prison labor or heavier punishment for committing any of the following crimes and whom two years have yet to elapse after the execution of such sentence was terminated (including cases where the execution is deemed terminated) or exemption from the execution of such sentence was made definite:
(a) Crimes provided for in each subparagraph of Article 2 (1) of the Act on Special Cases concerning the Punishment of Specific Violent Crimes;
(b) Crimes provided for in Articles 5-2 through 5-5, 5-8, 5-9 and 11 of the Act on the Aggravated Punishment, etc. of Specific Crimes;
(c) Crimes provided for in the Act on the Control of Narcotics, etc.;
2. A person who is in the period of a stay of the execution after he/she has been sentenced to a stay of execution of imprisonment without prison labor or heavier punishment for committing a crime falling under any item of subparagraph 1;
3. A person who has violated Article 44 (1) of the Road Traffic Act at least three times for five years prior to the date of the public announcement of the qualification examination referred to in paragraph (2).
(4) Where a person who intends to acquire the driving qualifications for an area passenger transport business determined by Presidential Decree falls under any of the following cases, he/she shall not acquire the qualification referred to in paragraph (1), notwithstanding paragraph (3): <Amended by Act No. 11556, Dec. 18, 2012>
1. A person who has been sentenced to imprisonment without prison labor or heavier punishment for committing any of the following crimes and whom 20 years have yet to elapse after the execution of such sentence was terminated (including cases where the execution is deemed terminated) or after exemption from the execution of such sentence was made definite:
(a) Crimes referred to in each item of paragraph (3) 1;
(b) Crimes referred to in Article 2 (1) 2 through 4, Articles 3 through 9 and 15 (excluding an attempted criminal referred to in Article 13) of the Act on Special Cases concerning the Punishment, etc. of Sexual Crimes;
(c) Crimes referred to in subparagraph 2 of Article 2 of the Act on Protection of Children and Juveniles from Sexual Abuse;
2. A person who is in the period of a stay of the execution after he/she has been sentenced to a stay of execution of imprisonment without prison labor or heavier punishment for committing a crime referred in subparagraph 1.
(5) To confirm driving career referred to in paragraph (1) 1 and criminal records referred to in paragraphs (3) and (4), the Minister of Land, Infrastructure and Transport or the Mayor/Do Governor may request the Commissioner of the National Police Agency to inquire into criminal records only when such information is necessary. <Amended by Act No. 11690, Mar. 23, 2013; Act No. 12377, Jan. 28, 2014>
[This Article Wholly Amended by Act No. 11295, Feb. 1, 2012]
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 Article 25 (Training, etc. for Transport Employees)   print
(1) Any Transport employee shall undergo necessary training, as prescribed by Ordinance of the Ministry of Land, Infrastructure and Transport, in order to enhance the quality of passenger transport service. <Amended by Act No. 11690, Mar. 23, 2013>
(2) Any transport business operator shall take necessary measures to enable transport employees to undergo training pursuant to paragraph (1), and shall not allow any transport employee who has failed to complete the training to be engaged in driving service.
(3) The relevant Mayor/Do Governor may establish a training institution for transport employees under his/her direct management or designate a training institution for transport employees, and grant a subsidy for expenses incurred in operating a training institution for transport employees, as prescribed by Municipal Ordinance of the Special Metropolitan City, a Metropolitan City, a Special Self-Governing City, a Do, or a Special Self-Governing Province (hereinafter referred to as "City/Do") in order to provide training referred to in paragraph (1) efficiently. <Amended by Act No. 11447, May 23, 2012>
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 Article 26 (Matters to be Observed by Transport Employees)   print
(1) Any transport employee shall be prohibited from engaging in the following activities: <Amended by Act No. 11690, Mar. 23, 2013; Act No. 12377, Jan. 28, 2014>
1. Refusing passengers (including boarding reservations, in cases of on-demand passenger transport business referred to in Article 3 (1) 3) or forcing them to alight on the way without any justifiable grounds (excluding an area passenger transport business specified by Presidential Decree);
2. Charging excessive charges or fares (excluding an area passenger transport business specified by Presidential Decree);
3. Stopping at a certain place for a long time and attracting passengers;
4. Deleted; <by Act No. 12377, Jan. 28, 2014>
5. Starting or operating an automobile without shutting the door fast;
6. Starting an automobile before passengers board or alight or passing a stop without stopping although passengers wait to board or alight;
7. Failing to make public announcements (limited to cases of automobiles mounted with public announcement systems prescribed by Ordinance of the Ministry of Land, Infrastructure and Transport);
7-2. Smoking in an automobile for passenger transport business;
8. Violating other matters to be observed by transport employees for safety while driving and passengers' convenience, which are determined by Ordinance of the Ministry of Land, Infrastructure and Transport.
(2) Any transport employee employed by a transport business operator under Article 21 (1) shall pay transport gains in full to the transport business operator.
(3) Any transport employee shall inform, before starting an automobile, passengers that they should fasten safety seat belts pursuant to Article 27-2. In such cases, the method of and timing for providing such information and other necessary matters shall be prescribed by Ordinance of the Ministry of Land, Infrastructure and Transport. <Newly Inserted by Act No. 11447, May 23, 2012; Act No. 11690, Mar. 23, 2013>
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 Article 27 (Maintenance, Management, etc. of Driving Records on Accidents)   print
(1) The Minister of Land, Infrastructure and Transport shall maintain and manage transport employees' driving records on casualty accidents, traffic violations, and criminal records referred to in Article 24 (3) and (4), which are confirmed by the Commissioner of the National Police Agency. <Amended by Act No. 11447, May 23, 2012; Act No. 11690, Mar. 23, 2013>
(2) Where a transport employee's license is revoked or suspended or any person meets such criteria prescribed by Ordinance of the Ministry of Land, Infrastructure and Transport to ensure safety while driving passenger cars, the Minister of Land, Infrastructure and Transport shall notify the relevant Mayor/Do Governor or the relevant transport business operator (excluding a person who engages in a passenger transport business with one automobile and directly engages in driving service) thereof. <Amended by Act No. 11690, Mar. 23, 2013>
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 Article 27-2 (Matters to be Observed by Passengers)   print
(1) Passengers who board an automobile for passenger transport business determined by Presidential Decree, which is operated on roads prescribed by Presidential Decree in consideration of the maximum speed and road conditions, shall fasten a safety seat belt: Provided, That this shall not apply to passengers determined by Presidential Decree, such as patients and pregnant women. <Amended by Act No. 12377, Jan. 28, 2014>
(2) No passenger shall smoke in an automobile for passenger transport business. <Newly Inserted by Act No. 12377, Jan. 28, 2014>
[This Article Newly Inserted by Act No. 11447, May 23, 2012]
CHAPTER III RENT-A-CAR BUSINESS
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 Article 28 (Registration)   print
(1) Any person who intends to operate a rent-a-car business shall establish a business plan and register with the relevant Mayor/Do Governor, as prescribed by Ordinance of the Ministry of Land, Infrastructure and Transport. <Amended by Act No. 11690, Mar. 23, 2013>
(2) Article 6 shall apply mutatis mutandis to disqualification for a rent-a-car business under paragraph (1).
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 Article 29 (Registration Requirements)   print
The number of automobiles, garage area holdings, places of business, or other necessary matters which constitute registration requirements for rent-a-car business shall be determined by Ordinance of the Ministry of Land, Infrastructure and Transport. <Amended by Act No. 11690, Mar. 23, 2013>
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 Article 30 (Kinds of Automobiles for Rent-A-Car Business)   print
The kinds of automobiles that can be used for rent-a-car business shall be determined by Ordinance of the Ministry of Land, Infrastructure and Transport. <Amended by Act No. 11690, Mar. 23, 2013>
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 Article 31 (Rent-A-Car Terms and Conditions)   print
(1) Any person who has completed registration for rent-a-car business pursuant to Article 28 (1) (hereinafter referred to as "rent-a-car business operator") shall establish rental terms and conditions and report them to the relevant Mayor/Do Governor before commencing his/her rent-a-car business. The same shall apply where he/she modifies rental terms and conditions.
(2) Necessary matters concerning the entries in rental terms and conditions referred to in paragraph (1) shall be determined by Ordinance of the Ministry of Land, Infrastructure and Transport. <Amended by Act No. 11690, Mar. 23, 2013>
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 Article 32 (Entrustment of Managerial Tasks of Rent-A-Car Business)   print
(1) Where a rent-a-car business operator intends to entrust the managerial tasks of a rent-a-car business, he/she shall obtain permission from the relevant Mayor/Do Governor.
(2) No managerial tasks under paragraph (1) shall be entrusted to a person who is not a rent-a-car business operator.
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 Article 33 (Improvement Order for Rent-A-Car Business)   print
The relevant Mayor/Do Governor may issue the following order to rent-a-car business operators if it is deemed necessary to protect persons who rent cars, ensure safety while driving, provide better service, and properly manage a rent-a-car business:
1. Change of business plan;
2. Modification of rental terms and conditions;
3. Improvement and change of facilities.
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 Article 34 (Prohibition from Transport with Compensation)   print
(1) No person who rents a car from a rent-a-car business operator shall use such car for transport with compensation, or sublet the car to any third party.
(2) No rent-a-car business operator shall arrange a driver for a person who rents a car: Provided, That a rent-a-car business operator may arrange a driver for any persons prescribed by Presidential Decree, such as foreigners or disabled persons.
(3) No rent-a-car business operator shall use any of his/her commercial automobiles for passenger transport with compensation, or engage in brokering such activities upon request from a third person.
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 Article 34-2 (Matters to be Observed by Rent-A-Car Business Operator)   print
No rent-a-car business operator shall exchange money and other goods with an automobile management business entity under the Motor Vehicle Management Act or with a transport business entity or employee under the Trucking Transport Business Act, in connection with car rental caused by breakdown of an automobile or an accident.
[This Article Newly Inserted by Act No. 12377, Jan. 28, 2014]
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 Article 35 (Provisions to be Applied Mutatis Mutandis)   print
Articles 10 (2) through (4), 11, 12, 14 (excluding paragraph (2)), 15 and 16 (excluding paragraph (1)) shall apply mutatis mutandis to change of business plans, restriction on the amendment of business plans, joint transport service agreements, bans on the use of names, transfer and acquisition of business, merger of corporations, or succession, suspension, closure, etc. of a rent-a-car business.
CHAPTER IV BUS TERMINAL BUSINESS
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 Article 36 (License for Bus Terminal Business)   print
(1) Any person who intends to operate a bus terminal business (hereinafter referred to as "terminal business") shall obtain a license from the relevant Mayor/Do Governor, as prescribed by Ordinance of the Ministry of Land, Infrastructure and Transport. <Amended by Act No. 11690, Mar. 23, 2013>
(2) Article 6 shall apply mutatis mutandis to licenses for terminal business.
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 Article 37 (Licensing Standards)   print
The licensing standards for terminal business shall include the following requirements:
1. The location of each bus terminal (hereinafter referred to as "terminal") is required to be convenient for passengers to access and be easy to connect with other means of transport;
2. The size of terminal is required to meet the long-term transport demand of the relevant area;
3. The commencement of a terminal business is required to serve the enhanced convenience of terminal users and the development of passenger transport business in the relevant area.
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 Article 38 (Authorization, etc. on Execution of Construction Works)   print
(1) Any person who has obtained a license for terminal business pursuant to Article 36 (1) (hereinafter referred to as "terminal operator") shall establish a construction plan for terminal to be installed and obtain authorization thereon by such deadline as prescribed by the relevant Mayor/Do Governor. The same shall apply where he/she intends to change the matters of authorization determined by Presidential Decree.
(2) Where the relevant Mayor/Do Governor deems that a construction plan referred to in paragraph (1) complies with the structure and equipment standards determined by Ordinance of the Ministry of Land, Infrastructure and Transport, he/she shall authorize the execution of construction work. <Amended by Act No. 11690, Mar. 23, 2013>
(3) Where a terminal operator fails to apply for authorization by the deadline provided for in paragraph (1) due to a natural disaster or any other inevitable ground, the relevant Mayor/Do Governor may extend the deadline upon request from the terminal operator.
(4) Where a terminal operator completes the construction work authorized under paragraph (1), he/she shall have the facilities confirmed by the relevant Mayor/Do Governor.
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 Article 39 (Commencement of Use)   print
Any terminal operator shall commence using a terminal by the deadline designated by the relevant Mayor/Do Governor after obtaining facility confirmation under Article 38 (4): Provided, That if justifiable grounds exist, a terminal operator may file an application for extension of the deadline to start to use a terminal with the relevant Mayor/Do Governor.
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 Article 40 (Terms and Conditions of Use)   print
(1) Any terminal operator shall determine terms and conditions of use and report them to the relevant Mayor/Do Governor. The same shall apply where he/she amends such terms and conditions of use.
(2) Necessary matters concerning entries in terms and conditions of use under paragraph (1) shall be determined by Ordinance of the Ministry of Land, Infrastructure and Transport. <Amended by Act No. 11690, Mar. 23, 2013>
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 Article 41 (Facility User Fees)   print
(1) Where a terminal operator intends to charge facility user fees to transport business operators using his/her terminal (hereinafter referred to as "terminal users"), he/she shall obtain authorization from the relevant Mayor/Do Governor. The same shall apply to changes to such facility user fees.
(2) Necessary matters concerning facility user fees, such as authorization standards for facility user fees referred to in paragraph (1) shall be determined by Ordinance of the Ministry of Land, Infrastructure and Transport. <Amended by Act No. 11690, Mar. 23, 2013>
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 Article 42 (Matters to be Observed by Terminal Operators)   print
(1) Each terminal operator shall comply with the following observations:
1. Not placing unfair restrictions on use of terminal facilities;
2. Not giving discriminative treatment to terminal users;
3. Maintaining and managing incidental facilities, such as waiting rooms and rest rooms, to enable terminal users or terminal clients to use them conveniently.
(2) Any terminal operator shall maintain and manage structures and equipment of terminals in compliance with such standards as may be prescribed by Article 38 (2).
(3) The relevant Mayor/Do Governor shall, if a terminal operator has performed activities prohibited under paragraph (1), issue an order for suspension of such activities and, if a terminal operator has failed to maintain and manage structures and equipment under paragraph (2), issue a corrective order.
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 Article 43 (Changes of Location, Size, Structures, Equipment, etc.)   print
(1) Where a terminal operator intends to change the location, size, structures, equipment, etc. of a terminal, he/she shall obtain authorization from the relevant Mayor/Do Governor: Provided, That this shall not apply to changes to minor matters prescribed by Ordinance of the Ministry of Land, Infrastructure and Transport. <Amended by Act No. 11690, Mar. 23, 2013>
(2) Articles 37 through 39 shall apply mutatis mutandis to authorization under paragraph (1).
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 Article 44 (Improvement Order for Terminal Business)   print
Where it is deemed that traffic convenience for terminal users and terminal clients is impaired or it is deemed necessary to improve terminal business, the relevant Mayor/Do Governor may order the terminal operator to take the following measures:
1. Measures to change the size and structure of a terminal, and to improve and alter equipment at a terminal;
2. Measures to change the terms and conditions of use, facility user fees or commissions on consignment ticket sales;
3. Measures to provide better service to terminal users and terminal clients, to maintain order, and to ensure safety;
4. Measures to improve the quality of employees, such as training;
5. Measures necessary for smooth transportation when the transport demand significantly exceeds the transport capacity due to consecutive holidays;
6. Measures necessary for the sale of tickets when a terminal operator is unable to sell tickets due to insolvent operation.
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 Article 45 (Order to Use)   print
(1) Where a person that operates a passenger transport business by setting routes on the area surrounding a terminal has not used such terminal as a place where his/her automobiles stop to pick up or drop off passengers, the relevant Mayor/Do Governor may order such person to use the terminal for the purpose of public convenience and improvement of transport networks for passenger transport business.
(2) Standards for the order to use a terminal issued by the Mayor/Do Governor pursuant to paragraph (1) shall be determined by Ordinance of the Ministry of Land, Infrastructure and Transport. <Amended by Act No. 11690, Mar. 23, 2013>
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 Article 46 (Consignment Ticket Sales)   print
(1) Any terminal user shall consign the sales of tickets to a terminal operator: Provided, That if deemed necessary to serve passengers' convenience, a transport business operator may directly sell tickets or consign the sales of tickets to a person other than a terminal operator, as prescribed by Ordinance of the Ministry of Land, Infrastructure and Transport. <Amended by Act No. 11690, Mar. 23, 2013>
(2) Where the sale of tickets are consigned pursuant to paragraph (1), commission on consignment sales shall be determined by mutual agreement between a transport business operator and a consignee of the sales of tickets.
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 Article 47 (Relations with other Acts)   print
(1) Where a terminal operator obtains authorization to execute construction works pursuant to Article 38, he/she shall be deemed to have obtained the following permission or authorization on matters about which the relevant Mayor/Do Governor has consulted with the heads of related administrative agencies pursuant to paragraph (3): <Amended by Act No. 10599, Apr. 14, 2011; Act No. 12248, Jan. 14, 2014>
1. Permission for development under Article 56 of the National Land Planning and Utilization Act;
2. Permission for activities conducted within the urbanization adjustment area under Article 81 of the National Land Planning and Utilization Act;
3. Designation of the executor of a planned urban/Gun facility project under Article 86 of the National Land Planning and Utilization Act;
4. Authorization for an execution plan under Article 88 of the National Land Planning and Utilization Act;
5. Permission for execution of a road project under Article 36 of the Road Act or permission for occupancy and use of roads under Article 61 of the same Act;
6. Permission for opening private roads under Article 4 of the Private Road Act;
7. Permission for reburials under Article 27 (1) of the Act on Funeral Services, etc.;
8. Permission for execution of public sewerage projects under Article 16 of the Sewerage Act.
(2) Where a terminal operator has facilities confirmed under Article 38 (4) to manage the following businesses in person, he/she shall be deemed to have obtained permission thereon or to have made a report or registration with respect to the following matters: <Amended by Act No. 9432, Feb. 6, 2009>
1. Registration for opening large-scale stores under Article 8 of the Distribution Industry Development Act;
2. Permission for restaurant business (excluding sing-along pub business and entertainment drinking club business) under Article 37 of the Food Sanitation Act;
3. Registration of gas stations among petroleum sales businesses under Article 10 of the Petroleum and Petroleum Substitute Fuel Business Act;
4. Report on sports facilities business under Article 20 of the Installation and Utilization of Sports Facilities Act;
5. Registration of performance places under Article 9 of the Public Performance Act.
(3) Where the relevant Mayor/Do Governor intends to grant authorization for execution of construction works in accordance with Article 38 (1) or give facility confirmation pursuant to paragraph (4) of the said Article, he/she shall consult in advance with the head of the related administrative agency as to whether such authorization or confirmation is consistent with related Acts and subordinate statutes listed in the subparagraphs of paragraph (2).
(4) Where the relevant Mayor/Do Governor has granted authorization for execution of construction works pursuant to Article 38 (1) or has given facility confirmation pursuant to paragraph (4) of the said Article, he/she shall notify the head of an administrative agency related with Acts and subordinate statutes listed in the subparagraphs of paragraph (2) thereof within 15 days from the authorization date or the confirmation date.
date.
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 Article 48 (Provisions to be Applied Mutatis Mutandis)   print
Articles 14 (excluding paragraph (2)), 15 and 16 (excluding paragraph (2)) shall apply mutatis mutandis to the transfer and acquisition of a terminal business, merger of corporations, or succession, suspension, closure, etc. of business.
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 Article 49 (Establishment and Management of Public Terminal)   print
(1) The Special Metropolitan City Mayor, a Metropolitan City Mayor, a Special Self-Governing City Mayor, the Governor of a Special Self-Governing Province, or the head of a Si/Gun may directly establish and manage any terminal only when no person intends to do so, notwithstanding the provisions of Article 36. <Amended by Act No. 11447, May 23, 2012>
(2) Matters necessary for the management and operation of any terminal directly established by the Special Metropolitan City Mayor, a Metropolitan City Mayor, a Special Self-Governing City Mayor, the Governor of a Special Self-Governing Province, or the head of a Si/Gun pursuant to paragraph (1) shall be determined by Municipal Ordinance of the relevant local government. <Amended by Act No. 11447, May 23, 2012>
CHAPTER IV-II BUS TERMINAL BUSINESS
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 Article 49-2 (License, etc. for Passenger Transport Franchise Business)   print
(1) Any person who intends to operate a passenger transport franchise business shall formulate business plans and obtain a license from the Mayor/Do Governor, as prescribed by Ordinance of the Ministry of Land, Infrastructure and Transport: Provided, That where a passenger transport franchise business spans at least two Sis and Dos, he/she shall obtain a license from the Minister of Land, Infrastructure and Transport. <Amended by Act No. 11295, Feb. 1, 2012; Act No. 11690, Mar. 23, 2013>
(2) Where a transport business franchisor who has obtained a license under paragraph (1) intends to modify business plans, he/she shall receive authorization from the Minister of Land, Infrastructure and Transport or the relevant Mayor/Do Governor, as prescribed by Ordinance of the Ministry of Land, Infrastructure and Transport: Provided, That a person who intends to change minor matters specified in Ordinance of the Ministry of Land, Infrastructure and Transport shall submit a report on the changed matters to the Minister of Land, Infrastructure and Transport or the relevant Mayor/Do Governor, as prescribed by Ordinance of the Ministry of Land, Infrastructure and Transport. <Amended by Act No. 11295, Feb. 1, 2012; Act No. 11690, Mar. 23, 2013>
(3) A license for passenger transport franchise business under paragraph (1) or modification of business plans under the main sentence of paragraph (2) shall satisfy standards prescribed by Ordinance of the Ministry of Land, Infrastructure and Transport. <Amended by Act No. 11690, Mar. 23, 2013>
[This Article Newly Inserted by Act No. 9733, May 27, 2009]
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 Article 49-3 (Duties, etc. of Transport Business Franchisors and Transport Business Franchisees)   print
(1) Each transport business franchisor shall conscientiously perform the following matters for the purpose of smooth operation of passenger transport franchise business:
1. Fair traffic assignment to transport business franchisees;
2. Development and dissemination of efficient techniques for traffic assignment;
3. Establishment and operation of joint networks for smooth passenger transportation;
4. Development of new value-added services for passenger transportation.
(2) Each transport business franchisee shall conscientiously perform the following matters for the purpose of smooth operation of passenger transport franchise business:
1. Provision of transport services and value-added services thereof in a manner consistent with standards determined by a transport business franchisor;
2. Notification of automobile location for smooth passenger transportation.
[This Article Newly Inserted by Act No. 9733, May 27, 2009]
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 Article 49-4 (Terms and Conditions of Transport Franchising)   print
(1) Any person who has obtained a license for passenger transport franchise business pursuant to Article 49-2 (1) shall establish terms and conditions of transport franchising and report them to the Minister of Land, Infrastructure and Transport or the Mayor/Do Governor. The same shall apply where he/she modifies such terms and conditions of transport franchising. <Amended by Act No. 11295, Feb. 1, 2012; Act No. 11690, Mar. 23, 2013>
(2) Entries in terms and conditions of transport franchising under paragraph (1) and other necessary matters shall be determined by Ordinance of the Ministry of Land, Infrastructure and Transport. <Amended by Act No. 11690, Mar. 23, 2013>
[This Article Newly Inserted by Act No. 9733, May 27, 2009]
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 Article 49-5 (Improvement Order)   print
The Minister of Land, Infrastructure and Transport and the relevant Mayor/Do Governor may order a transport business franchisor to take the following measures, if it is deemed necessary for ensuring safety while driving, keeping order of transportation, and promoting passengers' convenience: <Amended by Act No. 11690, Mar. 23, 2013>
1. Change of terms and conditions of transport franchising;
2. Necessary measures for safe passenger transportation;
3. Notification concerning duties to disclose franchise disclosure documents, refund of franchise fees, entries in a franchise contract, renewal of a franchise contract, etc. pursuant to Articles 7, 10, 11 and 13 of the Fair Transactions in Franchise Business Act which are applicable mutatis mutandis under Article 49-8;
4. Other necessary matters concerning service improvement of passenger transport franchise business, as prescribed by Presidential Decree.
[This Article Newly Inserted by Act No. 9733, May 27, 2009]
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 Article 49-6 (Cancellation, etc. of License for Passenger Transport Franchise Business)   print
(1) Where a transport franchisor falls under any of the following subparagraphs, the Minister of Land, Infrastructure and Transport or the Mayor/Do Governor may cancel his/her license, or issue an order to fully or partially suspend business operation for a fixed period of not more than six months: Provided, That in cases falling under subparagraphs 2 and 6, his/her license shall be cancelled: <Amended by Act No. 11295, Feb. 1, 2012; Act No. 11690, Mar. 23, 2013>
1. Where he/she allows a person who has failed to acquire qualifications for driving service of passenger transport business provided for in Article 24 to engage in passenger transport;
2. Where he/she obtains a license under Article 49-2 (1) by fraudulent or other illegal means;
3. Where he/she obtains authorization for the modification of business plans under Article 49-2 (2) by fraudulent or other illegal means;
4. Where he/she ceases to satisfy licensing standards under Article 49-2 (3): Provided, That this shall not apply where he/she satisfies such standards within three months;
5. Where he/she fails to comply with an improvement order under Article 49-5 without justifiable grounds;
6. Where he/she falls under any subparagraph of Article 6 which is applicable mutatis mutandis under Article 49-7: Provided, That this shall not apply where any executive of a corporate entity falls under any subparagraph of Article 6 and it replaces relevant executive with a new one within three months;
7. Where he/she violates Articles 7, 9 through 11, 13 or 14 of the Fair Transactions in Franchise Business Act that are applicable mutatis mutandis under Article 49-8 (excluding cases where he/she has received an improvement order under Article 49-5);
8. Where he/she fails to comply with a business suspension order under this Article;
9. Where he/she violates this Act or an order or a disposition under this Act.
(2) Standards and procedures for the cancellation of a license and business suspension order under paragraph (1) or other necessary matters shall be prescribed by Presidential Decree.
[This Article Newly Inserted by Act No. 9733, May 27, 2009]
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 Article 49-7 (Provisions to be Applied Mutatis Mutandis)   print
With respect to disqualification for passenger transport franchise business, ban on the use of name, transfer and acquisition of business, consolidation of corporations, inheritance, temporary closure or permanent closure of business, imposition of penalty surcharge, etc., Articles 6, 12, 14 (excluding paragraph (2)), 15, 16 (excluding paragraph (1)), and 88 shall apply mutatis mutandis.
[This Article Newly Inserted by Act No. 9733, May 27, 2009]
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 Article 49-8 (The Fair Transactions in Franchise Business Act to be Applied Mutatis Mutandis)   print
With respect to the provision of information between transport business franchisors and transport business franchisees, refund of franchise fees, franchise contract, etc., Articles 7, 9 through 11, 13, and 14 of the Fair Transactions in Franchise Business Act shall apply mutatis mutandis. In such cases, the term "intending franchisee" shall be construed as "intending transport business franchisee"; the term "franchisee" shall be construed as "transport business franchisee"; the term "franchise headquarters", "franchise headquarters (including a franchise regional headquarters or franchise broker that engages in recruiting franchisees)" under Article 7 (1) of the same Act, and "franchise headquarters or business association comprised of franchise headquarters" under paragraph (3) of the same Article shall be construed as "transport business franchisor"; and the term "franchise fees under subparagraph 6 (a) and (b) of Article 2" under Article 10 (1) of the same Act shall be construed as "money paid to transport business franchisors in return for granting permission to use service marks, regardless of what the name and regardless of methods of payment".
[This Article Newly Inserted by Act No. 9733, May 27, 2009]
CHAPTER V PROMOTION OF PASSENGER TRANSPORT SERVICE
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 Article 50 (Financial Support)   print
(1) Where it is deemed that a passenger transport service provider needs financial support to implement the following projects, the State may subsidize or finance some of the required funds for the relevant passenger transport service provider, as prescribed by Presidential Decree: <Amended by Act No. 9733, May 27, 2009; Act No. 11690, Mar. 23, 2013>
1. Upgrading of automobiles and modernization of a terminal;
2. Operation of unprofitable routes;
3. Expansion and improvement of common facilities and safety control facilities;
4. Replacement of obsolete automobiles;
5. Relocation of a terminal and expansion or improvement of its size, structure or equipment;
6. Expansion or improvement of facilities and equipment in order to enhance the passenger transport service;
7. Installation or improvement of facilities and equipment required for passenger transport franchise business;
8. Expansion or improvement of supporting facilities and equipment for economical, environmentally friendly, and safe driving and management;
9. Other matters prescribed by Ordinance of the Ministry of Land, Infrastructure and Transport to promote the passenger transport service.
(2) Under the following cases, the City/Do may subsidize or provide some of required funds to a passenger transport service provider. In such cases, necessary measures concerning the subjects and methods of subsidization or financing or the redemption of subsidies or loans shall be determined by Municipal Ordinance of the relevant City/Do: <Amended by Act No. 9733, May 27, 2009; Act No. 12377, Jan. 28, 2014>
1. Where a passenger transport service provider implements any project falling under any subparagraphs of paragraph (1);
2. Where it is necessary to expand traffic safety facilities for passengers' safety;
3. Where a bus system is improved to promote the use of public transport;
4. Where it is necessary to continue the operation of insolvent terminal business for the convenience of terminal clients;
5. Where it is necessary to restructure passenger transport business through permanent closure or reduction of the number of automobiles (limited to cases of passenger transport business prescribed by Presidential Decree);
6. Where a passenger transport service provider operates an on-demand passenger transport business referred to in Article 3 (1) 3.
(3) Where a local government compensates for reduction of the number of automobiles operated in excess of a regional transport support plan under Article 5 (3), the State may subsidize some of required funds for the local government, as prescribed by Presidential Decree. <Newly Inserted by Act No. 9733, May 27, 2009>
(4) The Special Metropolitan City Mayor, a Metropolitan City Mayor, the Governor of a Special Self-Governing Province, or the head of a Si/Gun may subsidize all or any part of the amount corresponding to an increased amount, such as each of the following taxes imposed on oil, for transport business operators determined by Presidential Decree. In such cases, the criteria, methods, and procedures for the payment of subsidies shall be determined and publicly notified by the Minister of Land, Infrastructure and Transport: <Newly Inserted by Act No. 11295, Feb. 1, 2012; Act No. 11690, Mar. 23, 2013>
1. Education tax, traffic, energy and environment tax, and automobile tax on driving of automobiles which are imposed on light oil, respectively, pursuant to Article 5 (1) of the Education Tax Act, Article 2 (1) 2 of the Traffic, Energy and Environment Tax Act, and Article 136 (1) of the Local Tax Act;
2. Individual consumption tax, education tax, and dues which are imposed on butane among petroleum gas, respectively, pursuant to Article 1 (2) 4 (f) of the Individual Consumption Tax Act, Article 5 (1) of the Education Tax Act, and Article 18 (2) 1 of the Petroleum and Petroleum Substitute Fuel Business Act.
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 Article 51 (Use, etc. of Subsidies)   print
(1) No person who has received subsidies or loans pursuant to Article 50 shall use such subsidy or loan for purposes other than its original purposes.
(2) The Minister of Land, Infrastructure and Transport, the relevant Mayor/Do Governor, or the head of a Si/Gun shall supervise a person who has received a subsidy or loan pursuant to Article 50 for the proper use of such subsidies or loans. <Amended by Act No. 11295, Feb. 1, 2012; Act No. 11690, Mar. 23, 2013>
(3) Where a passenger transport service provider has received subsidies or loans under Article 50 by fraudulent or other illegal means, the Minister of Land, Infrastructure and Transport, the relevant Mayor/Do Governor, or the head of a Si/Gun shall order the passenger transport service provider to return such subsidies or loans; where the passenger transport service provider fails to comply with such order, such subsidies or loans may be collected in the same manner as national or local taxes in arrears are collected. <Amended by Act No. 11295, Feb. 1, 2012; Act No. 11690, Mar. 23, 2013>
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 Article 51-2 (Suspension of Payment of Fuel Subsidies)   print
Where a transport business operator falls under any of the following cases, the Special Metropolitan City Mayor, a Metropolitan City Mayor, the Governor of a Special Self-Governing Province, or the head of a Si/Gun shall suspend the payment of subsidies referred to in Article 50 (4) (hereinafter referred to as "fuel subsidy") for up to one year: <Amended by Act No. 11690, Mar. 23, 2013>
1. Where he/she requests and receives a fuel subsidy by reporting on a longer distance or a bigger amount of fuels than actually operated or used;
2. Where he/she receives a fuel subsidy for oil used for any purpose other than those for passenger transport business;
3. Where he/she receives a fuel subsidy by applying a unit price for the type of oil different from that actually refueled or charged;
4. Where he/she fails to comply with an order for the submission of documents referred to in Article 79 that is issued in direct relation to the payment of fuel subsidies, or denies, avoids or hinders inspections or questions;
5. Matters determined by Ordinance of the Ministry of Land, Infrastructure and Transport, except as otherwise prescribed by subparagraphs 1 through 4.
[This Article Newly Inserted by Act No. 11295, Feb. 1, 2012]
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 Article 51-3 (Payment of Monetary Rewards)   print
The Special Metropolitan City Mayor, a Metropolitan City Mayor, the Governor of a Special Self-Governing Province, or the head of a Si/Gun may grant a monetary reward to a person who has reported or informed on a person who falls under any of subparagraphs 1 through 3 and 5 of Article 51-2, as prescribed by the relevant municipal ordinance.
[This Article Newly Inserted by Act No. 11295, Feb. 1, 2012]
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 Article 52 (Tax Reduction and Exemption)   print
The State shall reduce and exempt taxes for the smooth transport of passengers and promotion of passenger transport service on such terms and conditions as prescribed by the Restriction of Special Taxation Act.
CHAPTER VI PASSENGER TRANSPORT SERVICE PROVIDERS' ASSOCIATION
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 Article 53 (Establishment of Associations)   print
(1) Passenger transport service providers may establish an association (hereinafter referred to as the "association") with authorization of the relevant Mayor/Do Governor for the purpose of sound development of passenger transport service and improvement of social standing of passenger transport service providers.
(2) An association shall be a legal entity.
(3) An association shall be duly formed upon completion of registration of its establishment at the site of its main office.
(4) In order to establish an association, at least 1/5 of the persons who are qualified for membership in the association, as promoters, shall prepare its articles of association with the consent of a majority of the persons qualified for membership in the association at its inaugural general meeting, and submit an application for authorization thereon to the relevant Mayor/Do Governor.
(5) Passenger transport service providers may join an association on such terms and conditions as the articles of association may determine.
(6) Except as otherwise provided for in this Act concerning associations, the provisions governing incorporated associations in the Civil Act shall apply mutatis mutandis.
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 Article 54 (Articles of Association)   print
(1) The articles of association shall include:
1. Purposes;
2. Name;
3. Location of its office;
4. Matters concerning qualifications for association members;
5. Matters concerning general meetings;
6. Matters concerning directors;
7. Matters concerning business;
8. Matters concerning accounting;
9. Matters concerning dissolution;
10. Other important matters concerning the operation of an association.
(2) Where an association intends to change its articles of association, it shall obtain authorization from the relevant Mayor/Do Governor.
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 Article 55 (Businesses)   print
An association shall carry out the following business:
1. Promoting the sound development of passenger transport service, and pursuing common interests of passenger transport service providers;
2. Compiling and managing the statistics, and conducting collection and research study of foreign data necessary for the promotion and development of passenger transport services;
3. Providing training and education to employers and employees;
4. Guiding passenger transport service providers to improve their management;
5. Performing business delegated by the State or local governments;
6. Business incidental to those listed in subparagraphs 1 through 4.
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 Article 56 (Order to Modify Articles of Association)   print
Where it is deemed that an association has failed to properly carry out business under each subparagraph of Article 55, the relevant Mayor/Do Governor may order the association to take the following measures or other necessary measures:
1. Modification of its articles of association;
2. Replacement of executives;
3. Dissolution.
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 Article 57 (Supervision)   print
Business of an association shall be supervised by the relevant Mayor/Do Governor.
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 Article 58 (Representatives' Committee)   print
(1) An association, consisting of 1,000 or more members, may have a representatives' committee substituted for the general meeting, as prescribed by its articles of association.
(2) The representatives shall be the members of an association.
(3) Necessary matters concerning composition and operation of representatives' committee shall be prescribed by Presidential Decree.
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 Article 59 (Federation)   print
(1) Associations may establish a federation (hereinafter referred to as "Federation") with authorization of the Minister of Land, Infrastructure and Transport to attain their common purposes, as determined by Ordinance of the Ministry of Land, Infrastructure and Transport. <Amended by Act No. 11690, Mar. 23, 2013>
(2) Articles 53 (2) through (6) and 54 through 57 shall apply mutatis mutandis to the establishment, articles of association, business, order to modify articles of association, supervision, etc. of the Federation. In such cases, "relevant Mayor/Do Governor" shall be construed as "Minister of Land, Infrastructure and Transport". <Amended by Act No. 11690, Mar. 23, 2013>
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 Article 60 (Mutual Aid Activities Performed by Associations and Federation)   print
(1) The Federation and associations may perform mutual aid activities with permission of the Minister of Land, Infrastructure and Transport, as prescribed by Presidential Decree. <Amended by Act No. 11690, Mar. 23, 2013>
(2) Articles 61 (5), 63, 64 (excluding its paragraph (1) 7) and 65 through 68 shall apply mutatis mutandis to contributions for mutual aid activities referred to in paragraph (1), operating committee, scope of mutual aid activities, mutual aid agreements, reporting and inspection, improvement order, supervision and control over executives and employees of the Federation or associations who engage in management and operation of mutual aid, maintenance of financial soundness, etc.
CHAPTER VII MUTUAL AID ASSOCIATIONS
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 Article 61 (Establishment, etc. of Mutual Aid Associations)   print
(1) Passenger transport service providers (excluding terminal operators; hereinafter the same shall apply in this Article) may establish a mutual aid association by industry (hereinafter referred to as "mutual aid association") as prescribed by Presidential Decree, with authorization of the Minister of Land, Infrastructure and Transport, in order to provide support to enable association members to carry out independent economic activities through a mutual cooperative organization and to compensate for the losses incurred by an association member's car accident. <Amended by Act No. 11690, Mar. 23, 2013>
(2) A mutual aid association shall be a corporation.
(3) A mutual aid association shall be duly formed upon completion of the registration of its establishment at the site of its main office.
(4) Passenger transport service providers may join a mutual aid association on such terms and conditions as its articles of association may determine.
(5) Members of a mutual aid association shall pay contributions necessary for mutual aid.
(6) Qualifications for membership, matters concerning executives, and other necessary matters for the operation of a mutual aid association shall be determined by its articles of association.
(7) Entries in articles of association and other necessary matters for the supervision over a mutual aid association shall be determined by Presidential Decree.
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 Article 62 (Procedures for Granting Authorization on Establishment of Mutual Aid Association)   print
(1) To establish a mutual aid association, at least 10 percent of the persons who are qualified for membership in the mutual aid association, as promoters, and draft its articles of association at its inaugural general meeting with the consent of at least 200 persons who are qualified for membership in the mutual aid association, and then apply to the Minister of Land, Infrastructure and Transport for authorization thereon. <Amended by Act No. 11690, Mar. 23, 2013>
(2) In granting authorization referred to in paragraph (1), the Minister of Land, Infrastructure and Transport shall notify the public thereof. <Amended by Act No. 11690, Mar. 23, 2013>
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 Article 63 (Operating Committee of Mutual Aid Association)   print
(1) A mutual aid association shall establish an operating committee to deliberate on and resolve issues relating to its mutual aid activities under Article 64 and supervise performance of such activities.
(2) Members of an operating committee shall be appointed from among mutual aid association members, experts in the fields of transport services, finance, insurance, accounting and law, competent public officials, and other interested parties in passenger transport services, and the number of committee members shall not exceed 25: Provided, That where the Federation performs mutual aid activities pursuant to Article 60, the number of members of an operating committee shall not exceed 35, including all the representatives of Si/Do associations. <Amended by Act No. 10673, May 19, 2011>
(3) Matters necessary for organization and operation of an operating committee shall be prescribed by Presidential Decree.
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 Article 63-2 (Disqualification of Operating Committee Members)   print
(1) None of the following persons shall become a member referred to in Article 63 (2): <Amended by Act No. 12377, Jan. 28, 2014>
1. A person who is a minor, incompetent, or quasi-incompetent;
2. A person who has been declared bankrupt and is not yet reinstated;
3. A person who is in the period of a stay of the execution after he/she has been sentenced to the stay of execution of imprisonment without prison labor or heavier punishment for violating this Act or other finance-related statutes (including foreign statutes related to finance);
4. A person who has been sentenced to imprisonment without prison labor or heavier punishment for violating this Act or other finance-related statutes (including foreign statutes related to finance) and for whom three years have yet to elapse after the execution of such sentence was terminated (including cases where the execution is deemed terminated) or after exemption from the execution of such sentence was made definite;
5. A person who has been sentenced to a fine or heavier punishment with regard to business of a mutual aid association referred to in this Act and for whom three years have yet to elapse after the execution of such sentence was terminated (including cases where the execution is deemed terminated) or after exemption from the execution of such sentence was made definite;
6. A person for whom three years have yet to elapse after he/she has received the disposition of disciplinary actions or dismissal referred to in Article 67.
(2) Where a member referred to in Article 63 (2) falls under the subparagraphs of paragraph (1), he/she shall lose his/her qualification, starting from the relevant day.
(3) The Minister of Land, Infrastructure and Transport may request the Commissioner of the National Police Agency to inquire into data on criminal records referred to in paragraph (1) 3 through (5), and provide such data to a mutual aid association. <Amended by Act No. 11690, Mar. 23, 2013>
[This Article Newly Inserted by Act No. 11447, May 23, 2012]
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 Article 64 (Mutual Aid Activities)   print
(1) A mutual aid association shall engage in the following activities:
1. Mutual aid assistance in liability for damage caused by an accident of a member's commercial automobile;
2. Mutual aid assistance in compensation for damage to a member's commercial automobile incurred due to an accident that occurs while the member owns, uses, and manages such automobile;
3. Mutual aid assistance in compensation for a transport employee's physical injury suffered from an accident that occurs while the transport employee owns, uses and manages a member's commercial automobile;
4. Mutual aid assistance in compensation for losses of an employee of a mutual aid association sustained due to an occupational accident;
5. Establishment, operation, and management of joint use facilities and the promotion of members' convenience and welfare;
6. Research and study for improving the management of passenger transport service;
7. Activities incidental to those listed in subparagraphs 1 through 6, which are determined by the articles of association.
(2) Where a mutual aid association intends to perform mutual aid activities referred to in paragraph (1) 1 through 4, it shall establish mutual aid agreements and obtain authorization thereon from the Minister of Land, Infrastructure and Transport. The same shall apply where the mutual aid association intends to modify authorized matters. <Amended by Act No. 11690, Mar. 23, 2013>
(3) Mutual aid agreements under paragraph (2) shall include necessary matters concerning the performance of mutual aid activities, such as the scope of mutual aid activities, details of mutual aid contract, contribution, mutual aid funds, and the appropriation and accumulation of a liability reserve and payment reserve to cover mutual aid funds.
(4) A mutual aid association shall appropriate and accumulate liability reserve and payment reserve for each activity listed in paragraph (3) at the end of each accounting period.
(5) The Insurance Business Act (excluding Article 208) shall not apply to mutual aid activities referred to in paragraph (1) 1 through 4.
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 Article 65 (Submission, etc. of Report)   print
(1) If deemed necessary, the Minister of Land, Infrastructure and Transport may take the following measures for an mutual aid association: <Amended by Act No. 11690, Mar. 23, 2013>
1. Issuing an order to the mutual aid association to compensate for losses of automobile accident victims;
2. Issuing an order to the mutual aid association to submit a written report on the management of mutual aid funds and other matters concerning mutual aid;
3. Having public officials under his/her control engage in investigations into the current status of business operations or accounting of the mutual aid association;
4. Having public officials under his/her control engage in inspection of books or other documents of the mutual aid association.
(2) In conducting investigation or inspection under paragraph (1), a written plan that includes details, scheduled date and time, reasons, etc. of such investigation or inspection shall be notified to the mutual aid association by not later than seven days before such investigation or inspection: Provided, That in cases of emergency or where it is deemed that any prior notification might cause the destruction of any evidence to make it impossible to attain the purposes of such investigation or inspection, such notification shall not be required.
(3) Any public official who conducts an investigation or inspection pursuant to paragraph (1) shall produce a certificate indicating his/her authority to the relevant persons and deliver, at the time of entry, a document that states the name of person making entry, time to enter, purposes of entry, etc. to the relevant persons.
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 Article 66 (Business Improvement Order to Mutual Aid Association)   print
Where it is deemed that the interests of automobile accident victims and mutual aid association members are likely to be undermined by inappropriate operation of business or bad assets of a mutual aid association, the Minister of Land, Infrastructure and Transport may order such mutual aid association to take the following measures: <Amended by Act No. 11690, Mar. 23, 2013>
1. Changing its methods of business practice;
2. Changing depository institutions of its assets;
3. Changing book values of its assets;
4. Accumulating reserves for bad assets;
5. Writing off assets deemed worthless as losses.
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 Article 67 (Disciplinary Actions, etc. against Executives or Employees of Mutual Aid Association)   print
Where a mutual aid association's executive or employee falls under any of the following subparagraphs and is likely to perform mutual aid activities in an unsound manner, the Minister of Land, Infrastructure and Transport may request the mutual aid association to dismiss or take disciplinary actions against such executive or employee or to correct violations: <Amended by Act No. 11690, Mar. 23, 2013>
1. Where he/she conducts business, in violation of the mutual aid agreements under Article 64 (2);
2. Where he/she fails to comply with an improvement order under Article 66;
3. Where he/she fails to comply with guidelines for financial soundness under Article 68.
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 Article 68 (Maintenance of Financial Soundness)   print
(1) A mutual aid association shall comply with such guidelines for financial soundness as prescribed by Presidential Decree with regard to the following matters to ensure solvency of the mutual aid association and soundness in business management:
1. Matters concerning adequacy of capital;
2. Matters concerning soundness of assets;
3. Matters concerning liquidity.
(2) Where it is deemed that the mutual aid association is likely to undermine soundness in business management due to a failure to comply with the guidelines under paragraph (1), the Minister of Land, Infrastructure and Transport may order such mutual aid association to increase capital or limit ownership of risky assets, such as stocks, as prescribed by Presidential Decree. <Amended by Act No. 11690, Mar. 23, 2013>
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 Article 69 (Relation to other Acts)   print
With respect to mutual aid associations, except as provided for in this Act, the provisions relating to incorporated corporation in the Civil Act and the provisions of Part III, Chapter IV, Section 7 of the Commercial Act shall apply mutatis mutandis.
CHAPTER VIII DISPUTE MEDIATION FOR MUTUAL AID
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 Article 70 (Mutual Aid Dispute Mediation Committee)   print
(1) There is hereby established a Mutual Aid Dispute Mediation Committee (hereinafter referred to as the "Committee") under the Ministry of Land, Infrastructure and Transport to mediate disputes between car accident victims or other interested parties and the following associations: <Amended by Act No. 11690, Mar. 23, 2013>
1. Associations that engage in mutual aid activities under Article 60 and their Federation;
2. Mutual aid associations under Article 61;
3. Any person who performs mutual aid activities business pursuant to Article 51 of the Trucking Transport Business Act.
(2) The Committee shall mediate the following disputes in response to a request from parties involved in such disputes:
1. Dispute relating to a contract for mutual aid;
2. Dispute relating to the payment of mutual aid payouts;
3. Disputes relating to the adjustment of a loss suffered by a victim in a car accident;
4. Dispute for which an application may be filed with the Committee for mediation in accordance with other Acts and subordinate statutes;
5. Dispute over matters prescribed by Presidential Decree with respect to mutual aid.
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 Article 71 (Composition, etc. of Committee)   print
(1) The Committee shall be comprised of not more than 15 members, including one chairperson.
(2) Members of the Committee shall be commissioned by the Minister of Land, Infrastructure and Transport from among the following persons: <Amended by Act No. 11690, Mar. 23, 2013>
1. Persons who serve or have served as associate professors or higher, of jurisprudence in colleges or universities prescribed by the Higher Education Act;
2. Persons who are qualified as a judge, prosecutor or lawyer;
3. Doctors who have medical specialist qualifications;
4. Persons who serve or have served as executives of the Korea Consumer Agency under the Framework Act on Consumers or the consumers' organization registered under Article 29 of the same Act;
5. Persons who have 15 or more years of work experience in a traffic-related institution or a traffic-related organization;
6. Persons who have abundant knowledge and experience in the field of traffic, traffic-related laws or loss adjustment.
(3) The Chairperson shall be appointed from among members of the Committee.
(4) Members of the Committee shall serve a two-year term and may be recommissioned.
(5) Necessary matters concerning the organization and management for the operation and conduct of administrative affairs of the Committee shall be determined by Presidential Decree.
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 Article 72 (Procedures for Mediation, etc.)   print
(1) Where the Committee receives any request for dispute mediation, it shall notify, without delay, the counterpart of details of such request.
(2) The Committee shall prepare a draft mediation by the date that is 30 days after the date on which a request for dispute mediation has been filed: Provided, That where unavoidable circumstances are in existence, the Committee may extend a preparation period within 30 days with resolution.
(3) Where the Committee extends the period under the proviso to paragraph (2), it shall notify the parties involved in the dispute of details and reasons thereof.
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 Article 73 (Refusal and Notice of Mediation)   print
(1) When it is deemed inappropriate for the Committee to mediate a dispute in light of its nature or an application filed for mediation is deemed to seek illegal objectives, the Committee may refuse such mediation. In such cases, the Committee shall notify the applicant of grounds therefor.
(2) When the parties concerned institute a suit, the Committee shall suspend the mediation and notify the parties concerned.
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 Article 74 (Effect, etc. of Mediation)   print
(1) The Committee shall present a draft mediation to both parties immediately after the preparation of such draft mediation.
(2) Both parties shall, upon receiving the draft mediation referred to in paragraph (1), notify the Committee as to whether they accept it within 15 days from the date of receipt.
(3) If both parties accept the draft mediation, the Committee shall prepare, without delay, a mediation record, and the chairperson of the Committee and both parties shall seal or sign on the record.
(4) If both parties accept the draft mediation, the parties are deemed have to reach an agreement consistent with the mediation record.
CHAPTER IX SUPPLEMENTARY PROVISIONS
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 Article 75 (Delegation of Authority)   print
(1) The Minister of Land, Infrastructure and Transport may delegate part of his/her authority granted under this Act to the relevant Mayor/Do Governor, as prescribed by Presidential Decree. <Amended by Act No. 11690, Mar. 23, 2013>
(2) Upon receipt of approval from the Minister of Land, Infrastructure and Transport, the relevant Mayor/Do Governor may re-delegate part of his/her authority delegated by the Minister of Land, Infrastructure and Transport pursuant to paragraph (1) to the head of a relevant Si/Gun/Gu. <Amended by Act No. 11690, Mar. 23, 2013>
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 Article 76 (Entrustment, etc. of Authority)   print
(1) The Minister of Land, Infrastructure and Transport or the relevant Mayor/Do Governor may entrust part of his/her authority granted under this Act to associations, their Federation, mutual aid associations, the Korea Transportation Safety Authority under the Korea Transportation Safety Authority Act, or specialized inspection institutions determined by Presidential Decree, as prescribed by Presidential Decree. <Amended by Act No. 11690, Mar. 23, 2013>
(2) Executives and employees of associations, their Federation, mutual aid associations, the Korea Transportation Safety Authority under the Korea Transportation Safety Authority Act, or specialized inspection institutions, who engage in businesses entrusted under paragraph (1), shall be construed as public officials for the purposes of any penal provisions of Articles 129 through 132 of the Criminal Act.
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 Article 77 (Consultations on Standards and Rates for Charges or Fares)   print
Where the Mayor/Do Governor to whom the authority to determine the standards and rates for charges or fares under Article 8 has been delegated by the Minister of Land, Infrastructure and Transport pursuant to Article 75 (1) determines the standards and rates for charges or fares, he/she shall be deemed to have consulted thereon with the Minister of Strategy and Finance pursuant to Article 4 (2) of the Price Stabilization Act. <Amended by Act No. 11690, Mar. 23, 2013>
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 Article 78 (Consultations, Conciliation, etc.)   print
(1) Where changes in a business plan, improvement order, adjustment of business areas, etc. of passenger transport business includes at least two Cities/Dos, the Mayor/Do Governor shall consult thereon with the relevant Mayors/Do Governors, as prescribed by Ordinance of the Ministry of Land, Infrastructure and Transport. In such cases, where such consultation fails to produce a satisfactory result, an application for conciliation shall be submitted to the Minister of Land, Infrastructure and Transport. <Amended by Act No. 11690, Mar. 23, 2013; Act No. 12377, Jan. 28, 2014>
(2) Where the Minister of Land, Infrastructure and Transport receives an application referred to in paragraph (1), he/she shall notify the relevant Mayor/Do Governor thereof after conciliation, as prescribed by Ordinance of the Ministry of Land, Infrastructure and Transport, or may directly perform as determined in conciliation if such Mayor/Do Governor fails to comply with it as so determined. <Amended by Act No. 11690, Mar. 23, 2013>
(3) Necessary matters concerning application procedures for conciliation referred to in paragraph (1) shall be determined by Ordinance of the Ministry of Land, Infrastructure and Transport. <Amended by Act No. 11690, Mar. 23, 2013>
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 Article 79 (Reporting, Inspections, etc.)   print
(1) If deemed necessary, the Minister of Land, Infrastructure and Transport or the relevant Mayor/Do Governor may order passenger transport service providers to submit reports or documents on their business or matters relating to the ownership or use of automobiles. <Amended by Act No. 11690, Mar. 23, 2013>
(2) If deemed necessary, the Minister of Land, Infrastructure and Transport or the relevant Mayor/Do Governor may assign public official under his/her control to inspect books, documents, or other articles of a passenger transport service provider or a transport employee, or to ask the interested party a question. <Amended by Act No. 11690, Mar. 23, 2013>
(3) In cases of paragraph (2), any public official shall carry certificates indicating his/her authority and produce them to the relevant person.
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 Article 80 (Fees)   print
Any person who files a report or an application for a license, registration, permission, or authorization under this Act shall pay a certain fee prescribed by Ordinance of the Ministry of Land, Infrastructure and Transport: Provided, That where the Minister of Land, Infrastructure and Transport entrusts his/her authority pursuant to Article 76 (1), a certain fee determined by the entrusted agency shall be paid to the entrusted agency. <Amended by Act No. 11690, Mar. 23, 2013>
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 Article 81 (Ban on Commercial Transport by Private Cars)   print
(1) No motor car, other than commercial automobiles (hereinafter referred to as "private cars") shall be provided or rented for compensation (including expenses necessary for the operation of an automobile; hereinafter the same shall apply in this Article) for transport: Provided, That, in any following case, motor car may be provided or rented for compensation: <Amended by Act No. 11690, Mar. 23, 2013>
1. Where people share the use of a passenger car for commuting;
2. Where the relevant Governor of a Special Self-Governing Province or the head of a relevant Si/Gun/Gu (referring to the head of an autonomous Gu; hereinafter the same shall apply) grants permission for private car's commercial transport due to a natural disaster, emergency transport, operation for educational purposes, or any other causes prescribed by Ordinance of the Ministry of Land, Infrastructure and Transport.
(2) The subject matters and period of permission for commercial transport referred to in paragraph (1) 2 shall be determined by Ordinance of the Ministry of Land, Infrastructure and Transport. <Amended by Act No. 11690, Mar. 23, 2013>
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 Article 82 (Ban on Operation of Routes by Private Cars)   print
(1) No private car shall be operated by fixing routes for the purpose of attracting passengers: Provided, That in any of the following cases, a private car may be operated by fixing routes: <Amended by Act No. 10789, Jun. 7, 2011>
1. Where a private car is operated for the users of schools, educational institutions, kindergartens, day care centers under the Infant Care Act, hotels, educational, cultural, artistic and sports facilities (excluding facilities affiliated with superstores under subparagraph 3 of Article 2 of the Distribution Industry Development Act), religious facilities, financial institutions, or hospitals;
2. Where the relevant Governor of a Special Self-Governing Province or the head of a relevant Si/Gun/Gu grants permission for the operation of routes by private cars on the grounds that it is necessary for areas without public means of transportation or on grounds specified in Presidential Decree.
(2) Necessary matters concerning the subjects, requirements, etc. of permission under paragraph (1) 2 shall be determined by Ordinance of the Ministry of Land, Infrastructure and Transport. <Amended by Act No. 11690, Mar. 23, 2013>
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 Article 83 (Restriction or Ban on Use of Private Cars)   print
(1) If a private car user falls under any of the following subparagraphs, the Governor of a Special-Self Governing Province or the head of a Si/Gun/Gu may restrict or ban the use of his/her private car for by specifying a time limit within six months: <Amended by Act No. 11295, Feb. 1, 2012>
1. Where he/she operates the passenger transport business using a private car;
2. Where he/she commercially uses or rents a private car for transport without permission referred to in Article 81 (1) 2.
(2) Article 89 shall apply mutatis mutandis where the Governor of a Special-Self Governing Province or the head of a Si/Gun/Gu bans the use of a private car pursuant to paragraph (1). <Amended by Act No. 11295, Feb. 1, 2012>
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 Article 84 (Age Limit, etc. for Automobiles)   print
(1) No automobile used for passenger transport service shall be operated beyond the age limit determined by Presidential Decree in consideration of the types of automobiles and passenger transport services (hereinafter referred to as "age limit for automobile"): Provided, That the relevant Mayor/Do Governor may extend the age limit for an automobile by a further period of up to two years in consideration of driving circumstances of automobiles used for the relevant City/Do passenger transport service on condition that safety requirements prescribed by Presidential Decree be satisfied.
(2) Automobiles used for obtaining a license or registration for passenger transport services, for increasing the number of automobiles, or for substituting for the automobiles for which age limits expire shall not exceed the age limits prescribed by Presidential Decree (hereinafter referred to as "age limits for automobiles") within three years in consideration of the types of automobiles and passenger transport services: Provided, That the same shall not apply to any of the following cases: <Amended by Act No. 11447, May 23, 2012>
1. Where a person who has obtained a license or registration for route passenger transport business obtains a license or registration for the change of the business type without changing his/her automobiles within the scope of route passenger transport business;
2. Where a route passenger transport business operator prescribed by Presidential Decree substitutes the automobiles used for passenger transport business for which age limits do not exceed six years and are lower than those of the existing automobiles for the automobiles for which age limits expire;
3. Where a passenger transport service provider re-registers an automobile which has passed a provisional inspection referred to in Article 43 (1) 4 of the Motor Vehicle Management Act, although registration of an automobile used for passenger transport service was cancelled due to theft of such automobile: Provided, That automobiles exceeding the age limits shall be excluded.
(3) Where it is deemed particularly impracticable to supply automobiles due to inevitable causes, such as the stoppage of automobile manufacture and assembly or delay in delivery, extending the age limit for automobiles under paragraph (1) within six months may be allowed by the Mayor/Do Governor. <Amended by Act No. 11690, Mar. 23, 2013; Act No. 12377, Jan. 28, 2014>
(4) Necessary matters concerning age limits for automobiles and requirements for their extension under paragraph (1) and the base date and calculating method of age limits for automobiles under paragraph (2) shall be prescribed by Presidential Decree.
law view
 Article 85 (Cancellation of License, etc.)   print
(1) Where a passenger transport service provider falls under any of the following cases, the Minister of Land, Infrastructure and Transport or the relevant Mayor/Do Governor (limited to cases of terminal business, rent-a-car business, and passenger transport business prescribed by Presidential Decree) may cancel his/her license, permission, registration, or authorization or issue an order to fully or partially suspend business operation for a fixed period of not more than six months or an order to change his/her business plan to close routes or reduce the number of automobiles in operation: Provided, That in cases under subparagraphs 5, 8, 39 and 41, his/her license or registration shall be cancelled: <Amended by Act No. 9733, May 27, 2009; Act No. 11295, Feb. 1, 2012; Act No. 11447, May 23, 2012; Act No. 11690, Mar. 23, 2013; Act No. 12020, Aug. 6, 2013; Act No. 12377, Jan. 28, 2014>
1. Where he/she fails to comply with matters of a license, permission or authorization without any justifiable grounds;
2. Where he/she impairs convenient traffic for citizens due to uncertainty of operating business, marked aggravation of financial status, or inappropriateness for continued business for any other cause;
3. Where he/she causes many causalities due to a serious traffic accident or frequent traffic accidents;
4. Where he/she rents a third person an automobile for passenger transport business licensed or registered under Article 4;
5. Where he/she obtains or registered a license (including a license for changed matters) for passenger transport business, rent-a-car business or terminal business under Article 4, 28 or 36 by fraudulent or other illegal means;
6. Where he/she operates his/her business in violation of matters of a license or registration under Article 4, 28, or 36, such as scope of business type, routes, transport lines, business areas, scope of business, and license period (limited to restricted license);
7. Where he/she fails to meet licensing or registration standards for passenger transport business, rent-a-car business or terminal business under Article 5, 29 or 37: Provided, That this shall not apply where he/she meets such standards within three months;
8. Where a transport business operator, rent-a-car business operator or terminal operator falls under any subparagraph of Article 6: Provided, That this shall not apply where a transport business operator, rent-a-car business operator or terminal operator, which is a corporate entity, replaces its executive who falls under any subparagraph of Article 6 with a new executive within three months, or where a person who has inherited a transport business, rent-a-car business or terminal business transfers such business to a third person within 60 days from the date of the deceased person's death;
9. Where he/she fails to commence transport services by a deadline or within a period determined by the Minister of Land, Infrastructure and Transport or the relevant Mayor/Do Governor, in violation of Article 7;
10. Where he/she fails to file a report on charges or fares or a report on change thereof, has received unfair charges, or has refused to transport free of charge children under six years of age at least three times a year, in violation of Article 8;
11. Where he/she fails to file a report on terms and conditions of transport or rental terms and conditions or a report on modification thereof or fails to comply with such terms and conditions, in violation of Article 9 or 31;
12. Where he/she changes a business plan without obtaining authorization, making registration or submitting a report, in violation of Article 10 (including cases where it is applicable mutatis mutandis under Article 35);
13. Where he/she violates the ban on use of a name under Article 12 (including cases where it is applicable mutatis mutandis under Article 35);
14. Where he/she entrusts the managerial tasks of a passenger transport business without submitting a report or entrusted the managerial tasks of a passenger transport business to a person who is not a transport business operator, in violation of Article 13;
15. Where he/she transfers or acquires a passenger transport business or consolidates corporations without obtaining authorization or submitting a report, in violation of Article 14 (including cases where it is applicable mutatis mutandis under Articles 35 and 48);
16. Where he/she temporarily shuts down or permanently closes down a passenger transport business without obtaining permission or submitting a report or fails to recommence the business after the period of temporary closure expires, in violation of Article 16 (including cases where it is applicable mutatis mutandis under Articles 35 and 48);
17. Where he/she fails to indicate a name, sign or other matters on the outside of an automobile used for transport business at least three times a year, in violation of Article 17;
18. Where he/she transports a parcel, other than parcels he/she is allowed to transport pursuant to Article 18 (1) and (2), or fails to comply with the order to prohibit transport of parcels under Article 18 (3);
19. Where he/she fails to observe matters under Article 21 (1) at least three times within one year after the date when he/she was subject to a disposition to impose a fine for negligence due to a failure to observe such matters;
20. Where he/she allows a person who fails to meet requirements for transport employees to engage in driving services, in violation of Article 21 (2);
20-2. Where he/she becomes at least two transport business franchisees, in violation of Article 21 (3);
20-3. Where he/she fails to change his/her trade name or to submit a report on change of his/her trade name, in violation of Article 21 (4);
20-4. Where he/she fails to install airbags in the driver's seat of his/her automobile and the seat next thereto, in violation of Article 21 (7);
21. Where he/she fails to observe matters under Article 21 (8);
22. Where he/she fails to comply with an improvement order or operation order under Article 23, 33 or 44;
23. Where he/she fails to take necessary measures for training of transport employees under Article 25 (2);
24. Where he/she fails to satisfy the registration requirements under Article 29 or commence the business within the grace period for registration under Article 28;
25. Where he/she entrusts the managerial tasks of a rent-a-car business without obtaining permission therefor or entrusts the managerial tasks of a rent-a-car business to a person who is not a rent-a-car business operator, in violation of Article 32;
26. Where he/she uses his/her commercial automobiles for passenger transport with compensation or engages in brokering such transport, in violation of Article 34 (3);
27. Where he/she executes construction works for terminal facilities without obtaining authorization (including authorization for changed matters) under Article 38 (1) or fails to complete such construction works by a designated deadline;
28. Where he/she starts to use a terminal without obtaining facility confirmation under Article 38 (4), in violation of Article 39;
29. Where he/she fails to start to use a terminal by a deadline designated by the relevant Mayor/Do Governor without any justifiable grounds, in violation of Article 39;
30. Where he/she enforces the terms and conditions of use of a terminal without submitting a report or amended report, in violation of Article 40;
31. Where he/she fails to comply with observations for a terminal operator under Article 42 (1) or fails to comply with a suspension order or corrective order under paragraph (3) of the same Article;
32. Where he/she changes the location, size, structure or equipment of a terminal without obtaining authorization for changed matters under Article 43;
32-2. Where he/she uses a subsidy or loan referred to in Article 50 for purposes, other than its original purposes;
33. Where he/she fails to submit a report or documents under Article 79 (1) at least three times a year, or submits a false report or false documents;
34. Where he/she rejects, interferes with or evades an inspection under Article 79 (2), fails to answer a question, or makes a false statement;
35. Where he/she violates a restriction or ban on the use of a private car under Article 83;
36. Where he/she operates automobiles for which age limits for automobiles under Article 84 expire: Provided, That this shall not apply where the age limits for automobiles are extended under paragraph (3) of the same Article;
37. In cases of passenger transport business prescribed by Presidential Decree, if the deriver's license of a transport employee has been cancelled or the qualifications of a transport employee have been revoked because such employee falls under Article 87 (1) 2 or 3;
38. Where he/she violates the conditions of a license, permission or authorization under this Act;
39. Where he/she engages in his/her business during a suspension period of business, in violation of a business suspension order under this Article;
40. Where he/she fails to comply with an order to change a business plan to close routes, reduce the number of automobiles, etc. under this Article;
41. Where a transport business operator (limited to cases where a person engages in a passenger transport business with one automobile and directly engages in driving service) is sentenced to imprisonment without prison labor or heavier punishment by reason of filing an insurance claim by fraud or other wrongful means in connection with a traffic accident and such sentence is made final and conclusive;
(2) Serious traffic accidents referred to in paragraph (1) 3 mean traffic accidents which cause more casualties than those prescribed by Presidential Decree only one time, and frequent traffic accidents referred to in paragraph (1) 3 mean traffic accidents with casualties, the frequency or index of which (referring to the ratio of the number of traffic accidents to the number of automobiles owned by a passenger transport service provider) is prescribed by Presidential Decree.
(3) Necessary matters concerning standards, procedures, etc. for dispositions under paragraph (1) shall be prescribed by Presidential Decree.
(4) Where a transport business operator prescribed by Presidential Decree falls under any of the following cases, the relevant Mayor/Do Governor may assign demerit points to him/her according to the types and degree of such offenses as prescribed by Presidential Decree; or where he/she reaches or exceeds demerit point threshold during a period specified by Presidential Decree, the Minister of Land, Infrastructure and Transport or the relevant Mayor/Do Governor may cancel his/her license or issue an order to change his/her business plan to reduce the number of automobiles in operation: <Newly Inserted by Act No. 9733, May 27, 2009; Act No. 11690, Mar. 23, 2013; Act No. 12377, Jan. 28, 2014>
1. Where he/she receives a disposition under this Act for violating Article 21;
2. Where a transport business operator who directly engages in driving service receives a disposition under this Act for violating Article 26;
3. Where a transport employee employed by a transport business operator receives a disposition under this Act for violating Article 26.
law view
 Article 86 (Hearings)   print
Where the Minister of Land, Infrastructure and Transport or the relevant Mayor/Do Governor intends to cancel a license or registration for passenger transport business under Article 4, rent-a-car business under Article 28, terminal business under Article 36 or passenger transport franchise business under Article 49-2, pursuant to Article 49-6 or 85 (1), he/she shall hold a hearing thereon. <Amended by Act No. 11690, Mar. 23, 2013; Act No. 12377, Jan. 28, 2014>
law view
 Article 87 (Revocation, etc. of Transport Employees' Qualifications)   print
(1) Where a person who has obtained a qualification referred to in Article 24 (1) falls under any of the following subparagraphs, the Minister of Land, Infrastructure and Transport or the relevant Mayor/Do Governor may revoke his/her qualification or suspend the validity of his/her qualification for a specified period of up to six months: Provided, That in cases falling under subparagraphs 3 and 6-2, he/she shall revoke the qualification: <Amended by Act No. 11295, Feb. 1, 2012; Act No. 11690, Mar. 23, 2013; Act No. 12377, Jan. 28, 2014>
1. Where he/she falls under any of subparagraphs 1 through 4 of Article 6;
2. Where he/she has obtained a qualification under Article 24 (1) by fraudulent or other illegal means;
3. Where he/she falls under Article 24 (3) or (4);
4. Where he/she fails to comply with observations under Article 26 (1);
5. Where he/she fails to observe matters under Article 26 (2) at least three times within one year after the date when he/she was subjected to a disposition to impose a fine for negligence due to a failure to observe such matters;
6. Where he/she causes more casualties than those prescribed by Presidential Decree due to a traffic accident;
6-2. Where he/she is sentenced to imprisonment without prison labor or heavier punishment by reason of filing an insurance claim by fraud or other wrongful means in connection with a traffic accident and such sentence is made final and conclusive;
7. Where he/she commits any wrongdoing or unjust acts in relation to driving services;
8. Where he/she violates this Act or an order or a disposition under this Act.
(2) Necessary matters concerning standards, procedures, etc. for dispositions under paragraph (1) shall be determined by Ordinance of the Ministry of Land, Infrastructure and Transport. <Amended by Act No. 11690, Mar. 23, 2013>
law view
 Article 88 (Imposition of Penalty Surcharges)   print
(1) Where it is required to issue an order to suspend business operation of a passenger transport service provider because he/she falls under any subparagraphs of Article 49-6 (1) or 85 (1), but it is anticipated that the business suspension is likely to cause severe inconvenience to users of the business or harm public interests, the Minister of Land, Infrastructure and Transport or the relevant Mayor/Do Governor may impose a penalty surcharge not exceeding 50 million won in substitution for the disposition of business suspension. <Amended by Act No. 11295, Feb. 1, 2012; Act No. 11690, Mar. 23, 2013>
(2) The amount of penalty surcharges imposed, based upon the category and degree of an offense subject to a penalty surcharge under paragraph (1), and other necessary matters shall be prescribed by Presidential Decree.
(3) Where a person who has been subject to a disposition of penalty surcharges under paragraph (1) fails to pay a penalty surcharge by a prescribed deadline, the Minister of Land, Infrastructure and Transport or the relevant Mayor/Do Governor shall collect it in the same manner as dispositions national or local taxes in arrears are collected. <Amended by Act No. 11690, Mar. 23, 2013>
(4) Penalty surcharges collected pursuant to paragraph (1) shall not be used for any purpose, other than those listed in the following subparagraphs: <Amended by Act No. 9733, May 27, 2009>
1. Compensation for losses incurred in the operation of remote routes or unprofitable routes that are prescribed by Presidential Decree;
2. Installation and operation of facilities for cultivation, education or training, or improvement of the quality of transport employees and facilities for carrying out guidance operations for transport employees;
3. Financial support for the construction of terminals established by local governments;
4. Maintenance and expansion of terminal facilities;
5. Projects necessary for the managerial improvement of passenger transport service or the other development of passenger transport service;
6. Subsidies or loans for purposes listed in any of subparagraphs 1 through 5;
7. Projects implemented by a local government to prevent or eradicate the violation of this Act.
(5) The relevant Mayor/Do Governor shall formulate and execute an operational plan for amounts collected as penalty surcharges, as prescribed by Ordinance of the Ministry of Land, Infrastructure and Transport. <Amended by Act No. 11690, Mar. 23, 2013>
(6) The procedures for and purposes of use of penalty surcharges under paragraph (4), the formulation and execution of an operational plan under paragraph (5), and other necessary matters shall be determined by Presidential Decree.
law view
 Article 89 (Suspended Use of Automobiles)   print
(1) A transport business operator shall return the registration certificate and registration number plate of his/her automobile to the Mayor/Do Governor in any of the following cases: Provided, That a route passenger transport business operator referred to in Article 3 (1) 1 may not return them, if he/she falls under subparagraph 2. <Amended by Act No. 12377, Jan. 28, 2014>
1. Where the term of a restricted license that was granted for a specific length of time pursuant to Article 4 (3) has expired;
2. Where permission for temporary closure or permanent closure under Article 16 (1) and (2) (including cases where it is applicable mutatis mutandis under Articles 35 and 49-7) has been granted or a report thereon has been submitted;
3. Where a license, registration, permission or authorization has been cancelled, a disposition to suspend business operation has been taken, or an order for change of a business plan to reduce the number of automobiles has been issued, as prescribed by Article 85 (1).
(2) Where a transport business operator fails to comply with paragraph (1), the relevant Mayor/Do Governor shall provisionally retain the registration certificate and registration number plate of his/her automobile.
(3) The relevant Mayor/Do Governor shall return the registration certificate and registration number plate retained pursuant to paragraph (1) to the transport business operator in any of the following cases:
1. Where the period for temporary closure under Article 16 (including cases where it is applicable mutatis mutandis under Article 35) expires;
2. Where the period for a disposition to suspend business operation under Article 85 (1) expires.
(4) A transport business operator who has received a registration number plate back pursuant to paragraph (3) shall attach it to his/her automobile and have it sealed by the relevant Mayor/Do Governor.
CHAPTER X PENAL PROVISIONS
law view
 Article 90 (Penal Provisions)   print
Any of the following persons shall be punished by imprisonment for not more than two years or by a fine not exceeding 20 million won: <Amended by Act No. 9070, Mar. 28, 2008; Act No. 12377, Jan. 28, 2014>
1. Any person who operates a passenger transport business without obtaining a license or making registration under Article 4 (1) or has engaged in activities similar to passenger transport business operation by using automobiles, other than those listed under Article 2 (referring to trucks, special automobiles, or two-wheel vehicles under Article 3 of the Motor Vehicle Management Act);
2. Any person who obtains a license for or registration of a passenger transport business under Article 4 (1) by illegal means;
3. Any person who violates the ban on use of name under Article 12 (including cases where it is applicable mutatis mutandis under Article 35);
3-2. Any person who receives compensation for losses under Article 23 (3) or subsidies or loans under Article 50 by fraud or other wrongful means;
4. Any person who operates a rent-a-car business without registration under Article 28 (1);
5. Any person who registers a rent-a-car business under Article 28 (1) by illegal means;
6. Any person who entrusts the managerial tasks of a rent-a-car business without obtaining permission under Article 32 (1) or with obtaining such permission by illegal means, and any person who is entrusted with managerial tasks by the above-mentioned person;
7. Any person who uses his/her commercial automobiles for passenger transport with compensation or is engaged in brokering such transport, in violation of Article 34 (3);
8. Any person who commercially uses or rents a private car for transport, in violation of Article 81;
9. Any person who operates private cars by fixing routes for the purpose of attracting passengers in violation of Article 82 (1);
10. Any person who provides passenger transport services during the period of a disposition to suspend business operation, in violation of Article 85 (1).
law view
 Article 91 (Penal Provisions)   print
Either of the following persons shall be punished by imprisonment for not more than one year or by a fine not exceeding ten million won:
1. A rent-a-car business operator who violates Article 34-2;
2. A person who operates a terminal business without obtaining a license (including a license for changed matters) under Article 36 or obtains a license (including a license for changed matters) by illegal means.
[This Article Wholly Amended by Act No. 12377, Jan. 28, 2014]
law view
 Article 92 (Penal Provisions)   print
Any of the following persons shall be punished by a fine not exceeding ten million won: <Amended by Act No. 11295, Feb. 1, 2012>
1. Deleted; <by Act No. 9733, May 27, 2009>
2. Any person who fails to submit a report on terms and conditions of transport under Article 9 (1) or to comply with such terms and conditions of transport;
3. Any person who amends a business plan without obtaining authorization, making a registration, or submitting a report under Article 10 (including cases where it is applicable mutatis mutandis under Article 35);
4. Any person who concludes or changes a joint transport service agreement in violation of Article 11 (including cases where it is applicable mutatis mutandis under Article 35);
5. Any person who entrusts managerial tasks of passenger transport business without submitting a report on entrustment of management under Article 13 (1) or by making a false report thereon;
6. Any person who transfers or acquires a passenger transport business or merges with corporations without obtaining authorization or submitting a report in violation of Article 14 (including cases where it is applicable mutatis mutandis under Articles 35 and 48);
7. Deleted; <by Act No. 9733, May 27, 2009>
8. Any person who permanently closes or temporarily shut down a passenger transport service business without obtaining permission or submitting a report under Article 16 (including cases where it is applicable mutatis mutandis under Articles 35 and 48);
9. Any person who allows a person who has failed to meet requirements for transport employees to engage in driving service, in violation of Article 21 (2);
10. Any person who fails to submit a report on rental terms and conditions under Article 31 (1) before commencing a rent-a-car business or fails to comply with such rental terms and conditions;
11. Any person who uses rental automobiles for transport with compensation or sublets them in violation of Article 34 (1);
12. Any person who arranges a driver in violation of Article 34 (2);
13. Any person who starts to use a terminal without obtaining facility confirmation in violation of Article 38 (4);
14. Any person who fails to report terms and conditions of use under Article 40 (1) or violates such terms and conditions of use;
15. Any person who fails to obtain authorization for facility user fees under Article 41;
16. Any person who changes the location, size, structure, or equipment of a terminal without obtaining authorization under Article 43.
law view
 Article 93 (Joint Penal Provisions)   print
If the representative of a juristic person, or an agent, a servant or any other employee of a juristic person or individual commits any offense under Articles 90 through 92 in connection with the affairs of said juristic person or individual, not only shall such an offender be punished accordingly, but the juristic person or individual shall also be punished by a fine under the corresponding Article, respectively: Provided, That the same shall not apply in cases where the juristic person or individual has paid due attention to the relevant business and has not negligently supervised the relevant business in order to prevent the violation.
[This Article Wholly Amended by Act No. 9733, May 27, 2009]
law view
 Article 94 (Fines for Negligence)   print
(1) Any of the following persons shall be punished by a fine for negligence not exceeding ten million won: <Amended by Act No. 9733, May 27, 2009>
1. Any person who fails to submit a report on charges or fares, in violation of Article 8;
2. Any person who fails to submit a report on inheritance under Article 15 (1) (including cases where it is applicable mutatis mutandis under Articles 35 and 48);
3. Any person who fails to collect transport gains in full from transport employees, in violation of Article 21 (1);
4. Any person who fails to comply with an improvement order issued under Article 66 (including cases where it is mutatis mutandis applicable under Article 60 (2));
5. Any person who fails to comply with a request to dismiss or take disciplinary actions against executives or employees or fails to comply with a corrective order under Article 67 (including cases where it is mutatis mutandis applicable under Article 60 (2)).
(2) Any of the following persons shall be punished by a fine for negligence not exceeding five million won: <Amended by Act No. 11295, Feb. 1, 2012; Act No. 12377, Jan. 28, 2014>
1. Any person who transports children for compensation, in violation of Article 8 (4): Provided, That a fine for negligence for the relevant offense shall not be imposed on a person who has received disposition pursuant to Article 85 (1) 10;
2. Any person who fails to display the name, sign or other matters on the outside of an automobile used for transport business, in violation of Article 17: Provided, That a fine for negligence for the relevant offense shall not be imposed on a person who has received disposition pursuant to Article 85 (1) 17;
3. Any person who fails to take measures against accidents or to submit a report under Article 19 or submits a false report;
4. Any person who fails to notify the state of transport employees, in violation of Article 22;
5. Deleted; <by Act No. 11295, Feb. 1, 2012>
6. Any person who is engaged in driving service of passenger transport business without meeting requirements for transport employees referred to in Article 24 (1);
7. and 8. Deleted; <by Act No. 11295, Feb. 1, 2012>
9. Any person who fails to comply with an order to use a terminal under Article 45;
10. Any person who fails to comply with an order issued under Article 56, such as modification of articles of association;
11. Any person who fails to submit a report, submits a false report, or refuses, interferes with or evades an investigation or inspection under Article 65 (1) (including cases where it is applicable mutatis mutandis under Article 60 (2));
12. Any person who fails to submit a report under Article 79 (1) or submits a false report: Provided, That a fine for negligence for the relevant offense shall not be imposed on a person who has received disposition pursuant to Article 85 (1) 33;
13. Any person who fails to submit documents under Article 79 (1) or submits false documents: Provided, That a fine for negligence for the relevant offense shall not be imposed on a person who has received disposition pursuant to Article 85 (1) 33;
14. Any person who rejects, interferes with or evades an inspection or fails to answer questions under Article 79 (2) without any justifiable grounds;
15. Any person who violates a restriction or ban on the use of a private car under Article 83;
16. Any person who fails to return a registration certificate and registration number plate of his/her automobile, in violation of Article 89 (1).
(3) Any of the following persons shall be punished by a fine for negligence not exceeding half a million won: <Amended by Act No. 11447, May 23, 2012>
1. Any person who fails to keep safety seat belts in the state of working normally, in violation of Article 21 (5);
2. Any person who fails to train his/her transport employees on the fastening of safety seat belts by passengers, in violation of Article 21 (6);
3. Any person who violates Article 26 (1) or (2).
(4) Any person who violates Article 26 (3) shall be punished by a fine for negligence not exceeding 100,000 won: Provided, That this shall not apply to cases of receiving the disposition of a fine for negligence pursuant to Article 160 (2) 2 of the Road Traffic Act. <Newly Inserted by Act No. 11447, May 23, 2012>
(5) Fines for negligence under paragraphs (1) through (4) shall be imposed and collected by the Minister of Land, Infrastructure and Transport or the relevant Mayor/Do Governor, as prescribed by Presidential Decree. <Amended by Act No. 11447, May 23, 2012; Act No. 11690, Mar. 23, 2013>
(6) and (7) Deleted. <by Act No. 9733, May 27, 2009>
law view
 Article 95 (Special Cases of Provisions concerning Fines for Negligence)   print
In applying the provisions of fines for negligence listed in Article 94, no fine for negligence shall be imposed on a person who is subject to the disposition of penalty surcharges pursuant to Article 88.
ADDENDA
Article 1 (Enforcement Date)
This Act shall enter into force on July 14, 2008.
Article 2 (Applicability to Cancellation, etc. of License due to Violation of Duties Imposed on Rent-A-Car Business Operator)
The amended provisions of Article 85 (1) 26 and subparagraph 7 of Article 90 shall apply to the first violation of Article 34 (3) beginning on January 14, 2008, the date when the partial amendment to the Passenger Transport Service Act (Act No. 8511) enters into force.
Article 3 (Applicability to Cancellation of Business License following Revocation of Transport Employees' Qualifications)
The amended provisions of Article 85 (1) 37 shall apply to the first revocation of transport employees' qualifications beginning on January 14, 2008, the date when the partial amendment to the Passenger Transport Service Act (Act No. 8511) enters into force.
Article 4 (Transitional Measures concerning Revocation of Transport Employees' Qualifications)
The amended provisions of Article 87 (1) 3 shall not apply to persons who have obtained qualifications under Article 24 (2) and (3) before June 8, 2006: Provided, That if such persons fall under the amended provisions of Article 24 (4) after June 8, 2006, the amended provisions of Article 87 (1) 3 shall apply.
Article 5 (General Transitional Measures concerning Dispositions, etc.)
Any acts performed by, or other acts to, administrative agencies under the former provisions at the time when this Act enters into force shall be deemed acts by or in relation to administrative agencies under this Act.
Article 6 (Transitional Measures concerning Penal Provisions and Fines for Negligence)
In applying the penal provisions and provisions of fines for negligence to acts committed before this Act enters into force, the former provisions shall apply.
Article 7 Omitted.
Article 8 (Relations to other Acts and Subordinate Statutes)
Where other Acts and Subordinate statutes cite the former Passenger Transport Service Act or the provisions thereof, it shall be deemed to cite this Act or the corresponding provisions of this Act in lieu of the former provisions if this Act includes the corresponding provisions.
ADDENDUM <Act No. 9070, Mar. 28, 2008>
This Act shall enter into force on July 14, 2008.
ADDENDA <Act No. 9432, Feb. 6, 2009>
Article 1 (Enforcement Date)
This Act shall enter into force six months after the date of its promulgation. (Proviso Omitted.)
Articles 2 through 7 Omitted.
ADDENDA <Act No. 9733, May 27, 2009>
(1) (Enforcement Date) This Act shall enter into force six months after the date of its promulgation.
(2) (Special Cases of Compensation for Reduction of Number of Automobiles) If a local government compensates for reduction of the number of automobiles pursuant to the amended provisions of Article 50 (3), the State may start to subsidize funds required for the compensation for reduction of the number of automobiles operated in excess of the transport support plan established under the amended provisions of Article 5 (3).
(3) (Transitional Measures concerning Restriction on Transfer, Acquisition and Inheritance of Passenger Transport Business) Notwithstanding the amended provisions of Articles 14 (3) and the proviso to Article 15 (1), the restriction on transfer, acquisition and inheritance of the passenger transport business that was licensed under the former provisions before this Act enters into force shall be governed by the former provisions.
(4) (Transitional Measures concerning Penal Provisions) In applying the penal provisions to acts committed before this Act enters into force, the former provisions shall apply.
ADDENDA <Act No. 10599, Apr. 14, 2011>
Article 1 (Enforcement Date)
This Act shall enter into force one year after the date of its promulgation. (Proviso Omitted.)
Articles 2 through 9 Omitted.
ADDENDUM <Act No. 10673, May 19, 2011>
This Act shall enter into force three months after the date of its promulgation.
ADDENDA <Act No. 10789, Jun. 7, 2011>
Article 1 (Enforcement Date)
This Act shall enter into force six months after the date of its promulgation. (Proviso Omitted.)
Articles 2 through 6 Omitted.
ADDENDA <Act No. 11295, Feb. 1, 2012>
Article 1 (Enforcement Date)
This Act shall enter into force six months after the date of its promulgation.
Article 2 (Applicable Cases concerning Requirements for Engaging in Driving Service of Passenger Transport Business)
The amended provisions of Article 24 (3) or (4) shall apply, starting with a person who is sentenced to the relevant imprisonment after this Act enters into force.
Article 3 (Transitional Measures concerning Requirements for Engaging in Driving Service of Passenger Transport Business)
(1) Any person, who has been engaged in driving service of passenger transport business in accordance with the previous provisions as at the time this Act is promulgated and who intends to continuously engage in the relevant driving service even after this Act enters into force, shall report to the Minister of Land, Transport and Maritime Affairs within six months from the date on which this Act enters into force, as prescribed by the Minister of Land, Transport and Maritime Affairs.
(2) The Minister of Land, Transport and Maritime Affairs shall deem a person who has made a report pursuant to paragraph (1) qualified for engaging in driving service of passenger transport business, and shall grant him/her such qualification, notwithstanding the provisions of Article 24.
(3) Any person who is engaged in driving service of passenger transport business in accordance with the previous provisions from the day immediately after date on which this Act is promulgated to the day immediately before date on which this Act enters into force, may engage in driving service of passenger transport business until six months after the date on which this Act enters into force, notwithstanding the amended provisions of Article 24.
ADDENDA <Act No. 11447, May 23, 2012>
Article 1 (Enforcement Date)
This Act shall enter into force six months after the date of its promulgation.
Article 2 (Applicable Cases concerning Disqualification of Members of Operating Committee of Mutual Aid Association)
The amended provisions of Article 63-2 (1) and (2) shall apply, starting with a person who is commissioned or appointed as a member of the operating committee of a mutual aid association after this Act enters into force: Provided, That in cases of members who belong to the operating committee of a mutual aid association as at the time this Act enters into force, such provisions shall apply, starting with a case where a member of the operating committee of a mutual aid association becomes disqualified due to the ground for disqualification that takes place for the first time after this Act enters into force.
ADDENDA <Act No. 11556, Dec. 18, 2012>
Article 1 (Enforcement Date)
This Act shall enter into force six months after the date of its promulgation. (Proviso Omitted.)
Articles 2 through 10 Omitted.
ADDENDA <Act No. 11690, Mar. 23, 2013>
Article 1 (Enforcement Date)
(1) This Act shall enter into force on the date of its promulgation.
(2) Omitted.
Articles 2 through 7 Omitted.
ADDENDA <Act No. 12020, Aug. 6, 2013>
Article 1 (Enforcement Date)
This Article shall enter into force six months after the date of its promulgation.
Article 2 (Applicable Cases concerning Installment of Airbags)
The amended provisions of Article 21 (7) shall apply, starting from the first automobile, the new registration of which is made pursuant to the Motor Vehicle Management Act to be used for passenger transport business, six months after this Act enters into force.
Article 3 (Transitional Measures concerning Cancellation of License, etc.)
In applying the provisions of cancellation of license, etc. to acts committed before this Act enters into force, the former provisions shall apply.
ADDENDA <Act No. 12248, Jan. 14, 2014>
Article 1 (Enforcement Date)
This Article shall enter into force six months after the date of its promulgation.
Articles 2 through 25 Omitted.
ADDENDA <Act No. 12377, Jan. 28, 2014>
Article 1 (Enforcement Date)
This Act shall enter into force six months after the date of its promulgation: Provided, That the amended provisions of Articles 34-2, 63-2 and 91 shall enter into force on the date of its promulgation, while the amended provisions of Articles 3 (1) 3, 26 (1) 1, 2 and 4 and 50 (2) 6 shall enter into force one year on or after the date of its promulgation.
Article 2 (Applicability concerning Cancellation of License, etc.)
(1) The amended provisions of Article 85 (1) 18 shall apply, starting from the case of transporting a parcel, other than parcels which are allowed to be transported under the amended provisions of Article 18 (1) and (2), or from the case of failing to comply with an order to prohibit transport of a parcel under the amended provisions of Article 18 (3), on or after this Act enters into force.
(2) The amended provisions of Article 85 (1) 41 shall apply, starting from the case where a person is sentenced to imprisonment without prison labor or heavier punishment by reason of filing an insurance claim by fraud or other wrongful means in connection with a traffic accident and such sentence has been made final and conclusive.
Article 3 (Transitional Measures concerning Incompetent Persons, etc.)
A person for whom the effect of adjudication of incompetence or quasi-incompetence is maintained under Article 2 of the Addenda to the Civil Act (Act No. 10429) shall be deemed included in incompetent persons under the adult guardianship under the amended provisions of subparagraph 1 of Article 6.
Article 4 (Transitional Measures concerning Cancellation of License, etc.)
With regard to cancellation of license, etc. specified in any subparagraphs of Article 85 (4) before this Act enters into force, the former provisions shall apply, notwithstanding the amended provisions of Article 85 (4).
Article 5 (Transitional Measures concerning Administrative Dispositions, etc. following Violation of Matters to be Observed by Transport Employees)
The former provisions shall apply to administrative dispositions and fines for negligence for violation of matters to be observed by transport employees committed before this Act enters into force.
Article 6 (Transitional Measures concerning Penal Provisions)
The former provisions shall apply to penal provisions for violations committed before this Act enters into force.