Framework Act On Labor Welfare


Published: 2014-01-28

Subscribe to a Global-Regulation Premium Membership Today!

Key Benefits:

Subscribe Now for only USD$40 per month, or Get a Day Pass for only USD$9.99.
CHAPTER I GENERAL PROVISIONS
law view
 Article 1 (Purpose)   print
The purpose of this Act is to contribute to improving workers’ quality of life and the balanced development of the national economy by providing for matters necessary to establish workers' welfare policies and implement welfare programs.
law view
 Article 2 (Definitions)   print
The terms used in this Act shall be defined as follows:
1. The term "worker" means a person who provides his/her labor to a business or a place of business in return for wages, regardless of the types of occupation;
2. The term "employer" means a business owner, a person responsible for the management of a business, or any other person who acts for a business owner with respect to matters relating to a worker;
3. The term "housing business entity" means a person who builds or purchases houses for the purpose of selling or leasing them to workers;
4. The term "employee stock ownership association" means an organization established in full compliance with the requirements prescribed by this Act in order for workers employed by a stock company to acquire and manage shares of stock of the stock company;
5. The term “employee shares” means shares of stock of a stock company that workers employed by the stock company acquire through an employee stock ownership association established in the stock company.
law view
 Article 3 (Basic Principles of Workers’ Welfare Policies)   print
(1) Workers’ welfare policies (excluding basic working conditions, such as wages and working hours; the same shall apply hereinafter) shall aim to expand workers’ opportunities to participate in economic and social activities, motivate their willingness to work, and improve their quality of life.
(2) When formulating and implementing workers' welfare policies, consideration and assistance shall be given to prevent discrimination against a worker on such ground as gender, age, physical conditions, employment status, religion, and social standing.
(3) Assistance under this Act to promote the welfare of workers shall be given in a manner that ensures the preferential treatment of workers working for micro, small, and medium enterprises, fixed-term workers (referring to fixed-term workers defined under subparagraph 1 of Article 2 of the Act on the Protection, etc. of Fixed-Term and Part-Time Workers), part-time workers (referring to part-time workers defined under Article 2 (1) 8 of the Labor Standards Act), temporary agency workers (referring to temporary agency workers defined under subparagraph 5 of Article 2 of the Act on the Protection, etc. of Temporary Agency Workers; the same shall apply hereinafter), workers hired by a subcontractor (referring to a subcontractor defined under subparagraph 5 of Article 2 of the Act on the Collection of Insurance Premiums, etc. for Employment Insurance and Industrial Accident Compensation Insurance), low-income workers, and long-serving employees.
law view
 Article 4 (Responsibility of State and Local Governments)   print
The State and a local government shall endeavor to increase workers’ welfare by providing them with budget, fund, tax, and financial support in accordance with the basic principles of workers' welfare policies under Article 3, when formulating and implementing workers' welfare policies.
law view
 Article 5 (Responsibility of Employers and Labor Unions)   print
(1) Each employer (referring to a person who engages in a business with workers employed by him/her; the same shall apply hereinafter) shall endeavor to improve the welfare of workers employed for his/her place of business and shall cooperate with the workers' welfare policies.
(2) Labor unions and workers shall endeavor to improve productivity by increasing their will to work and cooperate with the workers' welfare policies.
law view
 Article 6 (Prohibition of Use for Other Purposes)   print
Any person who receives subsidies or loans under this Act for the welfare of workers, such as workers’ residential stability, stabilization of livelihood, and property formation, shall use such subsidies or loans only for the purposes originally intended.
law view
 Article 7 (Raising of Funds, etc.)   print
(1) The State and a local government shall pro-actively endeavor to raise the funds needed for workers' welfare programs under this Act.
(2) Funds raised pursuant to paragraph (1) may be contributed or loaned to the Workers' Welfare Promotion Fund under Article 87.
law view
 Article 8 (Deliberation on Important Matters regarding Improvement in Workers’ Welfare)   print
The following matters regarding workers' welfare under this Act shall be subject to deliberation by the Employment Policy Council under Article 10 of the Framework Act on Employment Policy (hereinafter referred to as the "Employment Policy Council"):
1. Master plan for the improvement in workers' welfare under Article 9 (1);
2. Matters regarding raising the funds needed for workers' welfare programs;
3. Other matters referred to by the chairperson of the Employment Policy Council in regard to workers' welfare policies.
law view
 Article 9 (Formulation of Master Plan)   print
(1) The Minister of Employment and Labor shall formulate the master plan for the improvement in workers' welfare (hereinafter referred to as the "master plan") every five years in consultation with the heads of related central administrative agencies.
(2) The master plan shall include the following:
1. Residential stability of workers;
2. Stabilization of livelihood of workers;
3. Workers’ property formation;
4. Employee stock ownership system;
5. Intra-company labor welfare fund program;
6. Support for selective welfare systems;
7. Operation of employee assistance programs;
8. Establishment and operation of welfare facilities for workers;
9. Raising of funds for workers' welfare programs;
10. Other matters deemed necessary by the Minister of Employment and Labor for the improvement in workers' welfare.
(3) When formulating the master plan, the Minister of Employment and Labor shall make public announcement thereof.
law view
 Article 10 (Provision of Data and Access to Electronic Computer Networks)   print
(1) In order to provide funds for the stabilization of livelihood under Article 19, provide credit guarantee services, and implement programs for workers’ welfare under this Act, the Minister of Employment and Labor may request the State agencies, such as courts, the Ministry of Security and Public Administration, the Ministry of Health and Welfare, the Ministry of Land, Infrastructure and Transport, and the National Tax Service, the heads of local governments, and relevant institutions and organizations to provide the following documents and to permit him/her to access related electronic computer networks. In such cases, the State agencies, the heads of local governments, and relevant institutions and organizations so requested to provide documents or permit him/her to access to such networks shall comply with such request, except under extenuating circumstances. <Amended by Act No. 11690, Mar. 23, 2013; Act No. 12370, Jan. 28, 2014>
1. A certificate of earned income (for a person obligated to file a tax return on global income tax, for a person with business income subject to year-end settlement, or for a person with earned income);
2. A certified transcript or abstract of a resident registration card;
3. The family relation register (a family relation certificate, a marital relation certificate, or an identification certificate);
4. A taxation certificate of each local tax item;
5. The register of a motor vehicle or construction machine;
6. A certified transcript of the register of building or land;
7. A certificate of corporate register.
(2) The use of materials provided to the Minister of Employment and Labor and access to computer networks under paragraph (1) shall be exempted from fees, use charges, etc.
(3) When the Minister of Employment and Labor intends to request the State agencies, etc. to provide documents or to permit access to a relevant electronic computer network under paragraph (1), he/she shall obtain consent thereto from a person involved. <Newly Inserted by Act No. 12370, Jan. 28, 2014>
law view
 Article 11 (Consultation on Implementation of Workers’ Welfare Programs)   print
Local governments and the State-subsidized non-profit corporations shall consult with the Minister of Employment and Labor when implementing workers' welfare programs.
law view
 Article 12 (Financial Institutions Engaging in Loans)   print
(1) The State and a local government may authorize the following financial companies, etc. (hereinafter referred to as “institutions engaging in loans”) to provide loan services under this Act:
1. Banks established pursuant to Article 8 (1) of the Banking Act;
2. Other financial companies specified by Presidential Decree.
(2) The Minister of Employment and Labor or the head of a local government may give priority such as engaging in loans pursuant to this Act to the financial institutions which give a preferential treatment to workers.
law view
 Article 13 (Tax Incentives)   print
The State and a local government may provide tax incentives, as prescribed by taxation-related Acts, in a bid to improve workers’ welfare by ensuring their residence security, living security, property formation, the establishment and operation of workers' welfare facilities and the Labor Welfare Promotion Fund, and the invigoration of the employee stock ownership system and intra-company workers’ welfare promotion fund systems under this Act.
law view
 Article 14 (Operation of Integrated Workers’ Welfare Information System)   print
(1) The Minister of Employment and Labor may establish and operate an integrated workers' welfare information system in order to effectively implement workers' welfare policies.
(2) The Minister of Employment and Labor may support the operation of employment assistance programs and selective welfare programs via the integrated workers' welfare information system under paragraph (1).
CHAPTER II PUBLIC SERVICES FOR WORKERS’ WELFARE
SECTION 1 Residential Stability of Workers
law view
 Article 15 (Operation of System for Housing Supply for Workers)   print
(1) The State and a local government may operate a system of having a housing business entity sell or lease (hereinafter referred to as “supply”) housing in priority to workers, in order to support acquisition or rental of housing by workers.
(2) The Minister of Land, Infrastructure and Transport shall include the supply plan of the housing to be provided to workers under paragraph (1) (hereinafter referred to as “workers housing”) in the comprehensive plan for housing construction under Article 7 of the Housing Act. <Amended by Act No. 11690, Mar. 23, 2013>
(3) Types and sizes of housing for workers, workers to be supplied with housing, supply method and other necessary matters shall be determined by the Minister of Land, Infrastructure and Transport in consultation with the Minister of Employment and Labor. <Amended by Act No. 11690, Mar. 23, 2013>
law view
 Article 16 (Loans for Housing for Workers)   print
(1) Under either of the following circumstances, the State may provide loans for the money needed by a housing business entity or workers (hereinafter referred to as “worker’s housing fund”) out of the National Housing Fund under Article 60 of the Housing Act:
1. Where a housing business entity constructs or purchases housing for workers;
2. Where workers acquire housing for workers from a housing business entity.
(2) The target workers of and procedures for the loans for the workers housing money, and other matters necessary for the support shall be determined by the Minister of Land, Infrastructure and Transport in consultation with the Minister of Employment and Labor. <Amended by Act No. 11690, Mar. 23, 2013>
law view
 Article 17 (Loans for Housing Purchase Money)   print
(1) The State may provide loans for the money (hereinafter referred to as “housing purchase money”) needed by workers to purchase (including new construction) or rent housing out of the National Housing Fund under Article 60 of the Housing Act to ensure the residential stability of workers.
(2) The State and a local government may have institutions engaging in loans provide loans for the housing purchase money to workers at an interest rate lower than market interest rate and may pay the interest balance.
(3) The target workers of and procedures for the loans for the housing purchase money, and other matters necessary for the support shall be determined by the Minister of Land, Infrastructure and Transport in consultation with the Minister of Employment and Labor. <Amended by Act No. 11690, Mar. 23, 2013>
law view
 Article 18 (Support for Residence Change by Workers, etc.)   print
The State may provide necessary support for residence security of the workers who change their residence or live far away from their families because of employment or change of work place.
SECTION 2 Workers’ Living Security and Property Formation
law view
 Article 19 (Support for Living Security)   print
(1) The State shall provide necessary support such as loans for medical, wedding and funeral expenses of workers and their families in order to support workers’ living security.
(2) The State may provide necessary support such as loans for living expenses in order to stabilize the living of the workers who did not receive their wages, taking into consideration the economic situation and the time when workers need living security expenses, etc.
(3) Necessary matters regarding the target workers of and procedures for the support for medical, wedding, funeral, and living expenses under paragraphs (1) and (2) shall be prescribed by Ordinance of the Ministry of Employment and Labor.
law view
 Article 20 (Support for School Expenses, etc.)   print
(1) In order to expand opportunities of education for workers and their children, the State may provide necessary support such as scholarship or loans for school expenses.
(2) Necessary matters regarding the target workers of and procedures for the provision of scholarship and support for school expenses under paragraph (1) shall be prescribed by Ordinance of the Ministry of Employment and Labor.
law view
 Article 21 (Preferential Savings Account for Workers)   print
The State shall operate a savings account giving preferential treatment to workers in order to support workers' property formation.
SECTION 3 Credit Guarantee for Workers
law view
 Article 22 (Credit Guarantee and Its Target Workers)   print
(1) For monetary liability owed by a worker who cannot afford to offer collaterals (including the unemployed who applied for job-seeking service and the workers suffering from accidents as prescribed in the Industrial Accident Compensation Insurance Act; hereafter the same shall apply in this Chapter) after receiving loans for the living security and school expenses from a financial company, the Korea Workers’ Compensation and Welfare Service under the Industrial Accident Compensation Insurance Act (hereinafter referred to as the “Service”) may guarantee payment of the monetary liability according to an agreement with the relevant financial company. In such cases, target loans and workers eligible for the guarantee shall be prescribed by Ordinance of the Ministry of Employment and Labor.
(2) The agreement between the Service and a financial company under paragraph (1) shall include the following:
1. Contents that guarantee the payment of liability pursuant to paragraph (1);
2. Target loans and workers eligible for the credit guarantee;
3. Ceiling amount for the credit guarantee support per worker;
4. Reasons for request for the payment of guaranteed liability and the time and the method;
5. Deliberation on and scope of the subrogated payment and the ratio in which the Service and the financial company share the amount of loss;
6. Matters to be notified to the Service by the financial company in relation to operation of the credit guarantee program;
7. Other matters necessary for the credit guarantee for workers.
(3) When the Service intends to sign the agreement under paragraph (1) or modify the details thereof, it shall obtain approval therefor from the Minister of Employment and Labor.
law view
 Article 23 (Guarantee Relations)   print
(1) Where the Service has decided to provide a credit guarantee for a worker pursuant to Article 22, it shall give notice thereof to the relevant worker and the financial company from which the worker intends to receive loans.
(2) Credit guarantee relations are established from the time when the financial company to whom the notice under paragraph (1) has been given offers loans to the relevant worker.
law view
 Article 24 (Fee for Guarantee)   print
The Service may collect the fee from the worker whose credit is guaranteed pursuant to Article 22 for the guarantee within the limit not exceeding annually 1/100 of the amount guaranteed as prescribed by Presidential Decree.
law view
 Article 25 (Obligation of Notification)   print
In any of the following circumstances, the financial company to which notice has been given pursuant to Article 23 shall give immediate notice thereof to the Service;
1. When main liability relations have been established;
2. When the whole or part of main liability ceases to exist;
3. When the worker does not pay his/her liability;
4. When the worker loses the benefit of the scheduled payment method due to failure to meet his/her scheduled payment;
5. When there occur other reasons which are feared to influence the guaranteed liability.
law view
 Article 26 (Fulfillment, etc. of the Guaranteed Liability)   print
(1) The financial institution which engages in loans pursuant to Article 22 (1) may request the Service to pay the guaranteed liability, in cases there occur reasons to request the payment of the guaranteed liability prescribed in the details of the agreement under the same Article.
(2) The Service shall, upon receipt of a request by a financial company to pay the guaranteed liability pursuant to paragraph (1), make a subrogated payment in accordance with the agreement details under Article 22 (2).
(3) When the Service pays the guaranteed liability pursuant to paragraph (2), it may exercise a right to indemnity and the said right to indemnity may be delegated to financial company, etc.
(4) The financial company to which the right to indemnity is delegated pursuant to paragraph (3) may take all the judicial and non-judicial actions relating to enforcement of the right to indemnity on behalf of the Service.
law view
 Article 27 (Amount of Loss)   print
Where the Service pays the guaranteed liability, it may collect the amount of loss not exceeding annually 20/100 of the amount paid from the relevant worker as determined by Presidential Decree, for the period starting from the date of payment until when the worker reimburses the amount. The amount of loss in such cases shall not exceed the amount of subrogated payment.
SECTION 4 Support for Workers’ Welfare Facilities, etc.
law view
 Article 28 (Support for Establishment, etc. of Workers’ Welfare Facilities)   print
(1) The State and a local government shall endeavor to establish and operate welfare facilities for workers (hereinafter referred to as “workers’ welfare facilities”).
(2) The Minister of Employment and Labor may set the standards for establishment of workers’ welfare facilities, taking into consideration the type of business, the number of workers in the workplace, etc., and recommend the relevant employer to establish the facilities.
(3) The State may provide necessary supports, when a business owner (including an association of business owners; the same shall apply hereafter in this Article), a labor union (including affiliated offices and branches; the same shall apply hereinafter), the Service, or non-profit corporation builds or acquires workers’ welfare facilities.
(4) The State may provide support for part of the expenses within budgetary limits to a local government, a business owner, a labor union, the Service, or a non-profit corporation which establishes and operates workers’ welfare facilities.
law view
 Article 29 (Entrustment of Operation of Workers’ Welfare Facilities)   print
(1) If the State or a local government deems it necessary to efficiently operate the workers’ welfare facilities established pursuant to Article 28 (1), it may entrust the Service or a non-profit organization with the operation of such facilities.
(2) When the State or a local government entrusts the operation of workers’ welfare facilities pursuant to paragraph (1), it may partially subsidize the expenses for the operation within budgetary limits.
law view
 Article 30 (Use Fees, etc.)   print
A person who establishes and operates workers’ welfare facilities may place some restrictions on the user of workers’ welfare facilities or charge use fees on an unequal basis in consideration of workers’ income level, family relationship, etc.
law view
 Article 31 (Subsidization for Expenses Incurred in Using Private Welfare Facilities)   print
(1) Where the worker prescribed in Article 3 (3) uses privately operated welfare facilities because he/she has difficulties in using the workers’ welfare facilities established by the State and a local government as prescribed in Article 28 (1), the State may provide support for part of the cost.
(2) The target workers and procedures for the support under paragraph (1), and other necessary matters shall be prescribed by Ordinance of the Ministry of Employment and Labor.
CHAPTER III WORKERS’ WELFARE AT WORKPLACE
SECTION 1 Employee Stock Ownership Program
law view
 Article 32 (Purpose of Employee Stock Ownership Program)   print
The purpose of the employee stock ownership program is to improve workers’ economic and social status and promote cooperation between labor and management by encouraging workers to acquire and own shares of stock of a stock company in which an employee stock ownership association has been established (hereinafter referred to as “company implementing the employee stock ownership program”) through the employee stock ownership association.
law view
 Article 33 (Establishment of Employee Stock Ownership Association)   print
(1) When workers employed by a stock company intend to establish an employee stock ownership association, such workers shall form an preparatory committee for the establishment of the employee stock ownership association with consent of at least one-fifth of all workers qualified for membership of the employee stock ownership association under Article 34 and establish the employee stock ownership association, as prescribed by Presidential Decree. In such cases, the preparatory committee for the establishment of the employee stock ownership association shall consult in advance with the relevant company on the matters specified by Ordinance of the Ministry of Employment and Labor, including matters regarding the company’s support for the establishment of the employee stock ownership association.
(2) Except as otherwise provided for in this Act, provisions regarding incorporated associations in the Civil Act shall apply mutatis mutandis to the establishment and operation of employee stock ownership associations.
law view
 Article 34 (Qualification for Membership of Employee Stock Ownership Association, etc.)   print
(1) In order to be qualified for membership of the employee stock ownership association of a company implementing the employee stock ownership program, a worker shall meet either of the following prerequisites:
1. A worker employed by a company implementing the employee stock ownership program;
2. A worker employed by a stock company over which a company implementing the employee stock ownership program has control by holding at least 50/100 of the total number of outstanding shares of stock (hereinafter referred to as “controlled company”) or a worker employed by a stock company whose sales from transactions with a company implementing the employee stock ownership program under an agreement amount to at least 50/100 of annual gross sales for the immediately preceding year (hereinafter referred to as “contracted company”), who shall meet all the following requirements, as prescribed by Presidential Decree:
(a) If a worker is employed by a controlled or contracted company, he/she shall obtain consent of a majority of all workers employed by the company;
(b) A worker shall obtain consent of the employee stock ownership association of the company implementing the employee stock ownership program;
(c) If the controlled or contracted company has its own employee stock ownership association, the employee stock ownership association shall be dissolved: Provided, That the foregoing shall not apply to cases specified in the proviso to Article 47 (1) 4.
(2) A worker who falls under any of the following circumstances shall not be qualified for a member of the employee stock ownership association of a company implementing the employee stock ownership program, and a member of an employee stock ownership association shall be disqualified for the membership of the employee stock ownership association of the company implementing the employee stock ownership program, when the worker falls under any of the following subparagraphs: Provided, That a worker specified in subparagraph 1 may retain qualification as a member of an employee stock ownership association only with respect to the shares of stock of the company implementing the employee stock ownership program that have been allotted to him/her pursuant to Article 37 and the employee stock options that have been granted to him/her pursuant to Article 39:
1. A person appointed as an executive at a general meeting of shareholders of the company implementing the employee stock ownership program or the controlled or contracted company;
2. A shareholder employed as a worker by the company implementing the employee stock ownership program or the controlled or contracted company: Provided, That minority shareholders specified by Presidential Decree shall be excluded herefrom;
3. A worker employed by the controlled or contracted company, where an employee stock ownership association is established in the controlled or contracted company after the worker joined the employee stock ownership association of the company implementing the employee stock ownership program as a member;
4. A worker specified by Presidential Decree as a worker in whose case it is impracticable to be qualified for the membership of an employee stock ownership association in the light of the term of service, characteristics of the labor relationship involved, etc.
(3) A member of an employee stock ownership association may freely opt out from the employee stock ownership association: Provided, That a member who opts out from an employee stock ownership association may be banned from re-joining the association for a period prescribed by the bylaws established pursuant to Article 35 (2) 1, which shall not exceed two years.
(4) If a change occurs to the qualification of a member of the employee stock ownership association of a company implementing the employee stock ownership program because the company to which the worker belongs falls under either of the following circumstances, the member shall retain qualification as a member of the employee stock ownership association only with respect to the shares of stock of the company implementing the employee stock ownership program, which have been allotted to him/her pursuant to Article 37, and the employee stock options, which have been granted to him/her pursuant to Article 39:
1. Where the company is included in, or excluded from, controlled companies;
2. Where the company is included in, or excluded from, contracted companies.
law view
 Article 35 (Operation of Employee Stock Ownership Associations, etc.)   print
(1) An employee stock ownership association shall be operated in a democratic way by reflecting the opinions of all association members.
(2) The following matters shall be determined by the resolution of the general meeting of employee stock ownership association members:
1. Enactment and modification of the association bylaws;
2. Establishment of employee stock ownership association fund under Article 36;
3. Budget and settlement of accounts;
4. Election of executives, including a representative of employee stock ownership association;
5. Other important matters regarding operation of employee stock ownership association.
(3) An employee stock ownership association may have an assembly of delegates on behalf of the general meeting of employee stock ownership association members by the association bylaws: Provided, That the matters specified in paragraph (2) 1 shall be determined by the resolution of the general meeting of employee stock ownership association members without exception.
(4) The representative of an employee stock ownership association shall hold a general meeting of employee stock ownership association members or an assembly of delegates, as prescribed by Presidential Decree.
(5) Executives and delegates such as representatives of employee stock ownership association shall be elected in a direct, secret and unsigned vote.
(6) A company implementing the employee stock ownership program and its employee stock ownership association may establish a steering committee for the employee stock ownership program, which shall be comprised of an equal number of committee members from the company and the employee stock ownership association respectively, as prescribed by Presidential Decree, so as to negotiate on the details, terms and conditions, etc. of assistance to the employee stock ownership association.
(7) A representative of employee stock ownership association shall prepare and retain the following accounting books and documents in its principal place of business so as to make them available to employee stock ownership association members for inspection, and preserve them for ten years. The accounting books and documents in such cases may be prepared and preserved in electronic form under subparagraph 1 of Article 2 of the Framework Act on Electronic Documents and Transactions (hereinafter referred to as “electronic document”): <Amended by Act No. 11461, Jun. 1, 2012>
1. A list of employee stock ownership association members;
2. Bylaws;
3. A directory of names and addresses of executives and delegates of the employee stock ownership association;
4. Accounting books and documents;
5. Records and documents regarding the acquisition and management of shares of stock by the employee stock ownership association and its members.
(8) A representative of employee stock ownership association shall, when relocating its principal place of business, report the relocation to the Minister of Employment and Labor within three weeks from the date of relocation.
(9) A representative of employee stock ownership association shall report the status of management to the Minister of Employment and Labor within three months after the end of each fiscal year.
(10) Specific methods of management of the general meeting of employee stock ownership association members and employee stock ownership association and other necessary matters shall be prescribed by Presidential Decree.
law view
 Article 36 (Creation and Use of Employee Stock Ownership Association Fund)   print
(1) An employee stock ownership association may create an employee stock ownership association fund using the following financial resources in order to acquire employee shares of stock:
1. Money and other valuables contributed by the company implementing the employee stock ownership program or its shareholders;
2. Money contributed by employee stock ownership association members;
3. Loans borrowed pursuant to Article 42 (1);
4. Dividends generated from shares of stock in the association account under Article 37;
5. Other revenue, including interest accruing from the employee stock ownership association fund.
(2) An employee stock ownership association shall manage the employee stock ownership association fund created pursuant to paragraph (1) by safekeeping or depositing it in a financial company specified by Presidential Decree.
(3) The employee stock ownership association fund created pursuant to paragraph (1) shall be used for the following purposes:
1. Acquisition of employee shares of stock;
2. Repayment of loans borrowed pursuant to Article 42 (1) and payment of interest thereon.
(4) An employee stock ownership association shall ensure that the shares of stock acquired with financial resources provided by the company or its shareholders pursuant to paragraph (1) 1 or 3 are allotted to employee stock ownership association members, who are workers employed by the company, in managing such shares of stock.
(5) When it is intended to use an employee stock ownership association fund for the repayment of loans and the payment of interest thereon pursuant to paragraph (3) 2, the fund shall be used in the following manner:
1. Money and other valuables specified in paragraph (1) 1 and the dividends specified in paragraph (1) 4 shall be used only for the repayment of loans borrowed on condition that such loans shall be repaid in accordance with the agreement under Article 42 (2);
2. Money contributed by employee stock ownership association members pursuant to paragraph (1) 2 shall not be used for the repayment of loans borrowed on condition that such loans shall be repaid in accordance with the agreement under Article 42 (2).
law view
 Article 37 (Management of Accounts Following Acquisition of Employee Shares of Stock)   print
Where an employee stock ownership association acquires shares of stock of the company implementing the employee stock ownership program by directly purchasing shares of stock of the company or by having new shares of stock allotted, it shall separately allot the shares of stock so acquired to the account of employee stock ownership association members (hereinafter referred to as the “Members’ Account”) and the account of the employee stock ownership association (hereinafter referred to as the “Association’s Account”) and shall manage the accounts by the method prescribed by Presidential Decree for the management of the account of each financial resource.
law view
 Article 38 (Limits on Preferential Allotment to Employee Stock Ownership Association Members)   print
(1) When a stock-listed corporation specified by Presidential Decree, among stock-listed corporations under Article 9 (15) 3 of the Financial Investment Services and Capital Markets Act, or a corporation that intends to list its stock on a securities market specified by Presidential Decree publicly offers or sells the share of its stock pursuant to the aforementioned Act, employee stock ownership association members shall have a right to have the share of its stock preferentially allotted, which shall not exceed 20% of the total number of the share offered or sold pursuant to Article 165-7 (1) of the aforementioned Act. <Amended by Act No. 11845, May 28, 2013>
(2) Notwithstanding Article 418 of the Commercial Act, when a corporation, other than corporations specified in paragraph (1), publicly offers or sells the share of its stock or increases its equity capital by issuing the new share of stocks for consideration pursuant to the Financial Investment Services and Capital Markets Act, it may preferentially allot such share of the stock to employee stock ownership association members, which shall not exceed 20% of the total number of shares so offered or sold.
law view
 Article 39 (Limits on Grant of Employee Stock Options)   print
(1) A company implementing the employee stock ownership program may grant employee stock ownership association members the right to subscribe new shares or purchase treasury shares held by the company (hereinafter referred to as “employee stock option”) at a predetermined price (hereinafter referred to as “exercise price”) during the period specified by resolution at its general meeting of shareholders (hereinafter referred to as “period for offering”) within the limit of 20/100 of the total number of outstanding shares, as stipulated by its articles of incorporation: Provided, That where employee stock options so granted do not exceed 10/100 of the total number of outstanding shares, such employee stock options may be granted by resolution of the board of directors, as stipulated by articles of incorporation.
(2) If a company implementing the employee stock ownership program intends to grant employee stock options, it shall stipulate the following matters in its articles of incorporation:
1. The provision that employee stock options may be granted to employee stock ownership association members;
2. The classes and number of shares of stock that may be issued or transferred upon the exercise of employee stock options;
3. The provision that employee stock options already granted may be revoked by resolution of the board of directors and the grounds for revocation;
4. Requirements for resolution of the board of directors or the general meeting of shareholders on the grant of employee stock options.
(3) The resolution by the general meeting or the board of directors under paragraph (1) by a company implementing the employee stock ownership program on the grant of employee stock options shall include the following:
1. Method for granting employee stock options;
2. Exercise price of employee stock options and the adjustment thereof;
3. Periods set for offering and exercising employee stock options;
4. Classes and number of shares of stock that may be issued or transferred upon the exercise of employee stock options;
(4) The period for offering shall not be less than six months nor more than two years from the date specified by the general meeting of shareholders or by the board of directors under paragraph (3) for granting employee stock options.
(5) When a company implementing the employee stock ownership program grants employee stock options, it may allow stock option holders to exercise the employee stock options during the period for offering or a period separately determined for exercising the stock options after the end of the period for offering. If a period after the end of the period for offering is determined as the period for exercising the options, the period of offering shall be deemed extended, notwithstanding paragraph (4).
(6) When a company implementing the employee stock ownership program intends to grant employee stock options, it may exclude employee stock ownership association members, who have been employed for a period less than the employment period specified by Presidential Decree, which shall not exceed three years, from employees eligible for stock options.
(7) No employee stock option may be transferred to a third party: Provided, That if a person to whom an employee stock option has been granted is dead, the stock option shall be deemed to have been granted to the deceased’s heir.
(8) Notwithstanding Article 341 of the Commercial Act, when a member of employee stock ownership association exercises an employee stock option, the company implementing the employee stock ownership program, which granted the employee stock option, may acquire shares issued by it for treasury shares in order to deliver the shares to such member: Provided, That the value of the shares so acquired shall be limited to the amount for which dividends of income can be distributed in accordance with the provisions of Article 462 (1) of the aforesaid Act, but if the value of treasury shares so acquired exceeds the limit, such treasury shares shall be sold out within the period specified by Presidential Decree.
(9) The provisions of Article 350 (2), the latter part of Article 350 (3), Articles 351 and 516-8 (1), (3), and (4), and the former part of Article 516-9 of the Commercial Act shall apply mutatis mutandis where new shares are issued upon the exercise of an employee stock option.
(10) The procedure for granting employee stock options, the exercise price, the period for exercise, and other necessary matters regarding the operation of the employee stock option program shall be prescribed by Presidential Decree.
law view
 Article 40 (Revocation of Grant of Employee Stock Options)   print
In any of the following circumstances, a company implementing the employee stock ownership program may revoke employee stock options already granted: Provided, That in cases specified in subparagraph 2 or 3, the revocation of employee stock options shall be subject to resolution of the board of directors, as stipulated by the articles of incorporation of the company implementing the employee stock ownership program:
1. Where the company implementing the employee stock ownership program is unable to respond to the exercise of employee stock options because of the company’s bankruptcy or dissolution;
2. Where a member of employee stock ownership association, to whom an employee stock option has been granted, inflicts a severe loss, intentionally or negligently, on the relevant company implementing the employee stock ownership program;
3. Where there arises any ground specified for revocation in the agreement under which an employee stock option has been granted.
law view
 Article 41 (Restrictions on Preferential Allotment of Employee Shares of Stock and Grant of Employee Stock Options)   print
When a company implementing the employee stock ownership program preferentially allots employee shares of stock to employees or grants employee stock options to employees pursuant to Article 38 or 39, the company shall ensure that the aggregate specified in subparagraph 1 does not exceed 20/100 of the aggregate specified in subparagraph 2:
1. The aggregate of the number of shares managed by the employee stock ownership association, out of shares of stock of the company implementing the employee stock ownership program, the number of shares newly issued for preferential allotment, and the number of shares to be acquired by exercising employee stock options, out of shares of stock of the company implementing the employee stock ownership program;
2. The aggregate of the number of shares newly issued by the company implementing the employee stock ownership program, the number of shares to be acquired by exercising employee stock options, out of shares of stock of the company implementing the employee stock ownership program, and the number of outstanding shares.
law view
 Article 42 (Acquisition of Employee Shares with Loans Borrowed by Employee Stock Ownership Association)   print
(1) An employee stock ownership association may acquire employee shares with loans borrowed for the acquisition of employee shares from the company implementing the employee stock ownership program, a controlled or contracted company, shareholders of any of such companies, or a financial company specified by Presidential Decree.
(2) A company implementing the employee stock ownership program, a controlled or contracted company, or shareholders of any of such companies may make an agreement with the employee stock ownership association concerned that such company or shareholders shall contribute money and other valuables to the employee stock ownership association for the repayment of loans borrowed pursuant to paragraph (1).
(3) An employee stock ownership association may provide employee shares acquired with a loan borrowed pursuant to paragraph (1) to the company implementing the employee stock ownership program or financial company, which lends the loan or guarantees the repayment of the loan. Offering such employee shares as security in such cases shall be subject to the condition that the employee shares equivalent to the repaid amount of the loan shall be released from the security right immediately after repayment.
(4) Where a company implementing the employee stock ownership program receives employee shares that the employee stock ownership association has acquired with a loan borrowed pursuant to paragraph (1), as security under paragraph (3), Article 341-3 of the Commercial Act shall not apply to the company implementing the employee stock ownership program as regards the shares that it receives as security.
(5) The amount of loans borrowed by an employee stock ownership association, the term of such loans, the method of repayment, the method for the allotment of shares acquired with such loans, and other specific matters regarding the loans borrowed by an employee stock ownership association shall be prescribed by Presidential Decree.
law view
 Article 42-2 (Prohibition against Forced Acquisition, etc. of Employee Shares of Stock)   print
(1) The employer of a company that implements the employee stock ownership program (including a controlled or contracted company) shall not commit any of the following acts, when he/she preferentially allots the share of stocks to the employee stock ownership association members:
1. Instructing the employee stock ownership association members to acquire the employee share against their will;
2. Classifying the employee stock ownership association members according to certain criteria, such as the department and class to which each of them belongs, against their will in allotting employee shares;
3. Dismissing or otherwise treating unfavorably a member of the employee stock ownership association on the ground that he/she does not acquire the employee share;
4. Any other act specified by Presidential Decree as contrary to the objectives of the employee stock ownership program under Article 32 by forcing the employee stock ownership association members to acquire and hold the employee sharee against their will.
(2) No employer shall dismiss or otherwise treat unfavorably a member of the employee stock ownership association on the ground that he/she reported a violation of paragraph (1) or gave testimony or presented evidence on such violation.
[This Article Newly Inserted by Act No. 12370, Jan. 28, 2014]
law view
 Article 43 (Deposit of Employee Shares, etc.)   print
(1) When an employee stock ownership association acquires employee shares, it shall deposit such shares in the trustee specified by Presidential Decree.
(2) An employee stock ownership association shall keep depositing the employee shares deposited in accordance with paragraph (1) during the period specified by Presidential Decree, which shall not exceed the period specified in any of the following subparagraphs, whichever is relevant:
1. Employee shares acquired with money and other valuables contributed by a company implementing the employee stock ownership program or its shareholders: Eight years;
2. Employee shares acquired with money contributed by employee stock ownership association members: One year: Provided, That where the company implementing the employee stock ownership program contributes an amount not less than the amount specified by Presidential Decree in addition to contribution by employee stock ownership association members, the period of depositing the employee shares acquired with money contributed by employee stock ownership association members shall be five years;
3. Employee shares acquired with money specified in Article 36 (1) 3 through 5: Employee shares so acquired shall be divided on the basis of contributors of money and lenders of loans, and the period specified for each category in subparagraphs 1 and 2 shall apply to the employee shares so divided.
(3) Neither an employee stock ownership association nor a member of employee stock ownership association shall transfer employee shares deposited pursuant to paragraph (1) or provide such employee shares as security: Provided, That the foregoing shall not apply to cases specified by Presidential Decree as those where transferring or providing such employee shares as security is necessary for the financial or economic situation of employee stock ownership association members.
(4) A right holder to whom employee shares have been provided as security pursuant to the proviso to paragraph (3) shall not exercise his/her right thereto during the period specified in paragraph (2) for deposit.
law view
 Article 44 (Withdrawal of Employee Shares, etc.)   print
(1) Notwithstanding Article 43 (2), if there arises any ground specified by Presidential Decree, such as the dissolution of employee stock ownership association or the death of a member of employee stock ownership association, the employee stock ownership association members may withdraw employee shares through the employee stock ownership association even during the period set in the aforesaid paragraph for deposit.
(2) When a member of employee stock ownership association withdraws his/her employee shares, the employee stock ownership association may allow the employee stock ownership association and then employee stock ownership association members to purchase the employee shares preemptively in accordance with bylaws.
law view
 Article 45 (Disposal of Employee Shares of Stock of Unlisted Corporations)   print
(1) The State shall endeavor to take measures necessary for trading the employee share to guarantee the conversion of such share into cash when employee stock ownership association members in a company implementing the employee stock ownership program, which is a corporation whose share of the stock have not been listed on a securities market specified in Article 8-2 (4) 1 of the Financial Investment Services and Capital Markets Act (hereinafter referred to as “unlisted corporation”), inevitably intend to dispose of such employee share. <Amended by Act No. 11845, May 28, 2013>
(2) If the stock of a company implementing the employee stock ownership program is not listed on a securities market within three years after an employee stock ownership association is established therein, the company implementing the employee stock ownership program, as a unlisted corporation, may accumulate a reserve for purchasing the employee share in the Members’ Account managed by the employee stock ownership association.
(3) Notwithstanding Article 341 of the Commercial Act, if it is necessary for guaranteeing the conversion of the employee share under paragraph (1) into cash, a company implementing the employee stock ownership program, as an unlisted corporation, may acquire the employee share held by a member or resigning member of the employee stock ownership association on its account. The share acquired in such cases shall be disposed of by any of the following methods:
1. Contribution to the employee stock ownership association;
2. Disposal in the manner specified in Article 342 of the Commercial Act;
3. Cancellation of the share as a profit to be distributed to shareholders, subject to resolution by the general meeting of shareholders.
law view
 Article 46 (Exercise of Voting Rights at General Meeting of Shareholders Holding Employee Shares)   print
(1) A representative of employee stock ownership association shall exercise the voting rights over the agenda of the general shareholders’ meeting according to opinions expressed by employee stock ownership association members. Specific methods for exercising the voting rights shall be prescribed by Presidential Decree.
(2) Notwithstanding paragraph (1), if an employee stock ownership association member demands to be entrusted with the voting rights, a representative of employee stock ownership association shall entrust the member with the voting right to shares owned by the relevant employee stock ownership association member.
law view
 Article 47 (Dissolution of Employee Stock Ownership Association)   print
(1) If any of the following grounds arises, an employee stock ownership association shall be dissolved. In such cases, a liquidator of employee stock ownership association shall report the dissolution to the Minister of Employment and Labor, specifying the reasons for the dissolution, as prescribed by Presidential Decree:
1. Bankruptcy of the relevant company implementing the employee stock ownership program;
2. Dissolution of the relevant company implementing the employee stock ownership program for closure of business;
3. Dissolution of the relevant company implementing the employee stock ownership program for a merger, division, or division and merger of business;
4. Where an employee of a controlled or contracted company is admitted to the employee stock ownership association of the relevant company implementing the employee stock ownership program: Provided, That an employee stock ownership association shall not be dissolved during a period specified by Presidential Decree, if the employee stock ownership association established in the controlled or contracted company deposits employee shares in the competent trustee or if employee stock options have been granted to employee stock ownership association members;
5. Where an employee stock ownership association has no executive, has not owned any property continuously during the latest three fiscal years by raising funds for the acquisition of employee shares, and does not express its intention to continue to exist upon the inquiry made to employee stock ownership association members, as prescribed by Ordinance of the Ministry of Employment and Labor.
(2) When an employee stock ownership association is dissolved pursuant to paragraph (1), the property of the employee stock ownership association shall be reverted to employee stock ownership association members, as stipulated by its bylaws: Provided, That if the employee stock ownership association has liability, the property which remains after the liability is cleared off shall be reverted to employee stock ownership association members.
law view
 Article 48 (Assistance to Promotion of Employee Stock Ownership Program)   print
The State may provide assistance necessary for acquisition and holding of employee shares by employee stock ownership association members, for the support of a company implementing the employee stock ownership program to its employee stock ownership association, and for guaranteeing the conversion of employee shares of stock of unlisted corporations into cash in order to promote the employee stock ownership program.
law view
 Article 49 (Support for Workers’ Takeover of Company)   print
When workers take over their company through the employee stock ownership association due to the company’s bankruptcy, etc., the State may subsidize such workers for funds necessary for the acquisition of shares of stock of the company.
SECTION 2 Intra-Company Labor Welfare Fund System
law view
 Article 50 (Purpose of Intra-Company Labor Welfare Fund System)   print
The purpose of the intra-company labor welfare fund system is to contribute to promoting the stabilization of livelihood, and the welfare, of workers by requiring business owners to establish an intra-company labor welfare fund with financial resources from part of business income and to efficiently manage and operate the fund.
law view
 Article 51 (Protection of Rights and Interests of Workers and Maintenance of Working Conditions)   print
No employer shall deteriorate working conditions, on which parties to employment have agreed, under the pretext of the establishment of the intra-company labor welfare fund under this Act and the contribution thereto.
law view
 Article 52 (Legal Personality and Incorporation)   print
(1) An intra-company labor welfare fund shall be a corporation.
(2) When it is intended to incorporate a corporation for an intra-company labor welfare fund (hereinafter referred to as “incorporated fund”), the business owner of the relevant business or place of business (hereinafter referred to as “business”) shall organize a preparatory committee for the establishment of the incorporated fund (hereinafter referred to as “preparatory committee”) and shall authorize the preparatory committee to take charge of administrative affairs related to the incorporation and the election of directors and auditors at the time of incorporation.
(3) Article 55 shall apply mutatis mutandis to a method for the formation of a preparatory committee.
(4) A preparatory committee shall draw up articles of incorporation of the incorporated fund as prescribed by Presidential Decree and shall obtain authorization for incorporation from the Minister of Employment and Labor.
(5) When a preparatory committee intends to obtain authorization for incorporation under paragraph (4), it shall file an application for authorization for the establishment of an incorporated fund along with documents specified by Presidential Decree to the Minister of Employment and Labor. <Newly Inserted by Act No. 12370, Jan. 28, 2014>
(6) Upon receipt of an application under paragraph (5), the Minister of Employment and Labor shall authorize incorporation, except under any of the following cases: <Newly Inserted by Act No. 12370, Jan. 28, 2014>
1. If there is an omission in articles of incorporation under paragraph (4);
2. If the articles of incorporation under paragraph (4) violates Article 50, 51, or 62;
3. If an applicant fails to submit a document required under paragraph (5) or makes a misrepresentation in such document.
(7) A preparatory committee that obtains authorization for incorporation pursuant to paragraph (4) shall file for registration for the establishment of the incorporated fund in the registry having jurisdiction over the principal place of business of the incorporated fund within three weeks from the date on which it receives the certificate of authorization for incorporation and, the incorporated fund shall be duly formed when its incorporation is registered. <Amended by Act No. 12370, Jan. 28, 2014>
(8) Further necessary matters regarding the registration of establishment of an incorporated fund and other registrations shall be prescribed by Presidential Decree. <Amended by Act No. 12370, Jan. 28, 2014>
(9) A preparatory committee shall be deemed the council initially formed for the intra-company labor welfare fund pursuant to Article 55 (hereinafter referred to as “welfare fund council”) simultaneously when the corporation is formed pursuant to paragraph (7). <Amended by Act No. 12370, Jan. 28, 2014>
(10) A preparatory committee shall transfer administrative affairs to directors of the incorporated fund without delay after the incorporation of the incorporated fund is registered. <Amended by Act No. 12370, Jan. 28, 2014>
law view
 Article 53 (Amendment of Articles of Incorporation)   print
When an incorporated fund intends to amend its articles of incorporation, it shall obtain authorization therefor from the Minister of Employment and Labor, as prescribed by Presidential Decree.
law view
 Article 54 (Organs of Incorporated Fund)   print
An incorporated fund shall have the welfare fund council, directors, and auditors as its organs.
law view
 Article 55 (Formation of Welfare Fund Council)   print
(1) A welfare fund council shall be comprised of an equal number of members representing each side; workers or the employer, the number of whom shall be neither less than two nor more than ten persons from each side.
(2) Council members representing workers shall be elected by workers, as prescribed by Presidential Decree.
(3) Council members representing a business owner shall be comprised of the representative of the relevant business and persons commissioned by the representative.
(4) Notwithstanding paragraphs (2) and (3), if a business has a labor-management council formed pursuant to the Act on the Promotion of Workers’ Participation and Cooperation, members of the labor-management council may serve as members of the welfare fund council.
law view
 Article 56 (Functions of Welfare Fund Council)   print
(1) A welfare fund council shall deliberate on and resolve the following matters:
1. Determination of the amount to be contributed for the creation of an intra-company labor welfare fund;
2. Appointment and dismissal of directors and auditor;
3. Approval of business plans and auditor’s reports;
4. Amendment of articles of incorporation;
5. Determination of whether to integrate the welfare fund with other labor welfare programs in the company;
6. A merger, division, or division and merger of incorporated funds.
(2) Matters regarding the operation of a welfare fund council shall be prescribed by Presidential Decree.
law view
 Article 57 (Recording and Preservation of Minutes of Meeting)   print
An incorporated fund shall record minutes of a meeting of the welfare fund council with the following facts described therein and with signatures or seals affixed by all members present at the meeting and shall preserve the records for ten years from the date of recording. Minutes of meeting in such cases may be recorded and preserved in electronic form:
1. The date, time, and venue of meeting;
2. Council members present at the meeting;
3. Matters agreed on and decisions made thereon;
4. Other matters discussed.
law view
 Article 58 (Directors and Auditor)   print
(1) An incorporated fund shall have the equal number of not more than three directors representing each side; workers or the employer, and one auditor.
(2) Directors shall represent the incorporated fund and shall execute the following administrative affairs, as stipulated by articles of incorporation:
1. Management and operation of the incorporated fund;
2. Budgeting and settlement of accounts;
3. Formulation of business plans;
4. Matters stipulated by articles of incorporation;
5. Other matters that the welfare fund council agrees on and determines to authorize directors to execute.
(3) Administrative affairs of an incorporated fund shall be executed in accordance with a resolution made by a majority of directors.
(4) The auditor shall take charge of auditing administrative affairs and accounting of the incorporated fund.
law view
 Article 59 (Term of Office of Directors, etc.)   print
(1) The term of office of each member of the welfare fund council and each director of an incorporated find shall be three years respectively, and the term of office of the auditor shall be two years: Provided, That if the office of a member of the welfare fund council or a director or the auditor of the incorporated find becomes vacant, the term of office of the successor shall be equal to the remaining term of office of his/her predecessor.
(2) A member of a welfare fund council or a director or auditor of an incorporated fund shall perform his/her duty until his/her successor is elected, even after his/her term of office expires.
law view
 Article 60 (Status of Directors, etc.)   print
(1) Members of a welfare fund council and directors and the auditor of an incorporated fund shall serve as non-standing council members or executives with no remuneration.
(2) No employer shall treat a member of the welfare fund council or a director or auditor of the incorporated fund unfavorably on the ground that he/she works for the incorporated fund.
(3) A member of a welfare fund council or a director or auditor of an incorporated fund shall be deemed to work for his/her employer during the period required for him/him to perform his/her duty for the incorporated fund.
law view
 Article 61 (Creation of Intra-Company Labor Welfare Fund)   print
(1) A business owner may contribute an amount on which the welfare fund council agrees and resolves on the basis of 5/100 of net income before deducting corporate tax or income tax for the preceding business year as financial resources for the intra-company labor welfare fund, as prescribed by Presidential Decree.
(2) A business owner or any person other than a business owner may contribute securities, cash, or other property specified by Presidential Decree in addition to the contribution made pursuant to paragraph (1).
law view
 Article 62 (Business Activities of Incorporated Fund)   print
(1) An incorporated fund may conduct the following business activities with its profits, as prescribed by Presidential Decree:
1. Assistance to workers’ property formation, including subsidization for purchasing a house and subsidization for purchasing the employee share;
2. Grant of scholarships or subsidies for relief from a disaster, and other aid for workers’ livelihood;
3. Subsidization for expenses incurred in the protection of maternity and the balance between work and family;
4. Subsidization for expenses incurred in operating an incorporated fund;
5. Investment in or contribution to a facility specified as a labor welfare facility by Ordinance of the Ministry of Employment and Labor or purchase or establishment and operation of such facility;
6. Improvement of employee benefits of workers employed by companies directly contracted to the relevant business and temporary agency workers placed to the relevant business;
7. Business activities specified by Presidential Decree in addition to those for which an employee is obliged to pay wages and give other things under other Acts and subordinate statutes.
(2) An incorporated fund may use the amount computed as prescribed by Presidential Decree, out of the property contributed to it and the property on which the welfare fund council has resolved to include in contributed property (hereinafter referred to as “basic property”) pursuant to Article 61 (1) and (2), for business activities specified in paragraph (1) (hereinafter referred to as “business activities of the intra-company labor welfare fund”). If the business of an incorporated fund in such cases falls under either of the following subparagraphs, it may raise the amount so computed up to the limits specified by Presidential Decree, as stipulated by articles of incorporation: <Amended by Act No. 11271, Feb. 1, 2012; Act No. 12370, Jan. 28, 2014>
1. Where the business utilizes and implements the selective welfare program pursuant to Article 82 (3);
2. Where the business uses at least the amount computed as prescribed by Ordinance of the Ministry of Employment and Labor, out of the amount used for the business activities of the intra-company labor welfare fund, for the improvement of employee benefits of workers employed by companies directly contracted to the relevant business and temporary agency workers placed to the relevant business;
3. Where an incorporated fund established in an enterprise prescribed in subparagraphs (1) or (3) of Article 2 of the Framework Act on Small and Medium Enterprises implements an intra-company labor welfare fund.
(3) In cases specified by Presidential Decree where it is deemed necessary for providing support to workers’ living security and property formation, an incorporated fund may lend loans to workers from its basic property.
law view
 Article 63 (Management of Intra-Company Labor Welfare Fund)   print
An intra-company labor welfare fund shall be managed as follows:
1. Deposit or money trust in a financial bank;
2. Purchase of beneficiary certificates issued by an investment trust;
3. Purchase of securities directly issued by the State, a local government, or a financial company or guaranteed by the State, a local government, or a financial company for payment;
4. Participation in capital increase by issuing new shares for consideration in proportion to the number of shares held by the intra-company labor welfare fund up to the limits prescribed by Presidential Decree, where the intra-company labor welfare fund holds shares issued and contributed by the company;
5. Other business activities specified by Presidential Decree for the management of an intra-company labor welfare fund.
law view
 Article 64 (Accounting of Intra-Company Labor Welfare Fund)   print
(1) Each fiscal year of an intra-company labor welfare fund shall coincide with each fiscal year of the relevant business owner: Provided, That the foregoing shall not apply where articles of incorporation prescribe otherwise.
(2) No incorporated fund shall borrow a loan.
(3) A loss incurred to an intra-company labor welfare fund as at the time of settlement of accounts for each fiscal year shall be carried forward to the following fiscal year, while a surplus accruing as at such time shall be appropriated for compensating for carried-forward losses, and then the remainder, if any, shall be transferred to the intra-company labor welfare fund.
(4) Matters necessary for the management of accounts of an intra-company labor welfare fund shall be prescribed by Presidential Decree.
law view
 Article 65 (Preparation and Preservation of Documents regarding Management and Operation of Incorporated Fund)   print
An incorporated fund shall prepare the following documents, as prescribed by Presidential Decree, and shall preserve such documents for five years from the date of preparation of each document. Such documents may be prepared and preserved in electronic form:
1. Business report;
2. Balance sheet;
3. Income statement;
4. Auditor’s report.
law view
 Article 66 (Disclosure of Management and Operation of Incorporated Funds)   print
An incorporated fund shall disclose to the public the documents specified in each subparagraph of Article 65 and minutes of meetings of the welfare fund council, as prescribed by Presidential Decree, and shall make such documents available to workers for inspection at any time. As regards documents prepared and preserved in electronic form in such cases, an incorporated fund may disclose such documents and make such documents available for inspection through an information and communications network or by any other electronic means.
law view
 Article 67 (No Real Estate for Incorporated Fund)   print
No incorporated fund shall own real estate, except where it is necessary for executing its business affairs.
law view
 Article 68 (Relationship to other Welfare Programs)   print
(1) No employer shall discontinue or reduce labor welfare programs or labor welfare facilities, which he/she operates at the time of establishment of an incorporated fund, under the pretext of the establishment of the incorporated fund.
(2) If an employer conducts the same business activities as those of an incorporated fund at the time of establishment of the incorporated fund, he/she may integrate such business activities with those of the incorporated fund, subject to the agreement and decision made by the welfare fund council thereon, except for programs that the employer is obliged to establish and operate under any other Act.
law view
 Article 69 (Order for Rectification)   print
If an employer or incorporated fund violates Article 60 (2), 64, or 66, the Minister of Employment and Labor may order the employer or incorporated fund to rectify such violation within a period reasonably specified by him/her.
law view
 Article 70 (Causes of Dissolution of Incorporated Fund)   print
An incorporated fund shall be dissolved, if any of the following grounds arises:
1. Business closure of the relevant company;
2. A merger with another incorporated fund under Article 72;
3. A division or a division and merger with another incorporated fund under Article 75.
law view
 Article 71 (Disposal of Property of Dissolved Incorporated Fund)   print
(1) The property of an incorporated fund dissolved due to business closure shall be used preferentially for paying wages, retirement and severance benefits payable to workers at the time when the business owner operated the business and money and other valuables that the business owner is obliged to pay to workers otherwise, as prescribed by Presidential Decree, and not more than 50/100 of the residual property, if any, may be appropriated for the stabilization of livelihood of the workers employed by him/her, as stipulated by articles of incorporation.
(2) If any residual property exists even after the appropriation under paragraph (1), such residual property shall be reverted to the person designated by articles of incorporation: Provided, That if no person has been designated by articles of incorporation, such residual asset shall be reverted to the Labor Welfare Promotion Fund under Article 87, as prescribed by Presidential Decree.
law view
 Article 72 (Merger of Incorporated Funds)   print
(1) An incorporated fund may be merged with another incorporated fund by merging or transferring business.
(2) When incorporated funds are merged with one another, the incorporated funds shall prepare a merger agreement in which the following matters are included, and shall present it to the welfare fund council of each incorporated fund for resolution thereon:
1. Property of each incorporated fund before merged and the change in the property of the incorporated funds after merged;
2. The level of assistance to workers of each incorporated fund after merged;
3. Time schedule for the promotion of the merger;
4. Other important matters regarding the merger.
(3) The level of assistance under paragraph (2) 2 to each worker of each incorporated fund before merged may be varied for a period not exceeding three years after the merger, taking into consideration the average balance of the fund for each worker of each incorporated fund before merged, the amount expected to contributed by the business owner after the merger, etc.
law view
 Article 73 (Establishment of Incorporated Fund by Merger and Registration thereof)   print
(1) When an incorporated fund is established by merging incorporated funds, the owner of the business established by merging businesses shall organize a preparatory committee and shall go through all formalities for the establishment of the incorporated fund under Article 52.
(2) The incorporated fund surviving after a merger of incorporated fund shall file for registration of changes in registered facts, while the incorporated fund disappearing upon the merger shall file for registration of dissolution.
law view
 Article 74 (Effectuation and Effects of Merger)   print
(1) A merger of incorporated funds shall become effective when the incorporation of the incorporated fund established by the merger is registered or the changes in the incorporated fund surviving the merger is registered.
(2) An incorporated fund established by a merger or surviving a merger shall succeed to rights and obligations of the incorporated fund disappearing upon the merger.
law view
 Article 75 (Division or Division and Merger of Incorporated Funds)   print
(1) An incorporated fund may be divided or divided and merged (hereinafter referred to as “divided or divided to be merged with another”) with another incorporated fund according to a division or division and merger of business.
(2) When an incorporated fund intends to divide itself, it shall prepare a division plan, which shall include the following matters, and shall present the plan to the welfare fund council for resolution thereon:
1. Distribution of the property of the incorporated fund;
2. Time schedule for the division;
3. Other important matters regarding the division.
(3) When an incorporated fund intends to divide itself to be merged with another, it shall prepare a division and merger plan, which shall include the following matters, and shall present the plan to the welfare fund council for resolution thereon:
1. Distribution of the property of the incorporated fund and changes in the property of the incorporated fund upon the merger;
2. The level of assistance to workers of each incorporated fund subject to the division and merger after the merger;
3. Time schedule for the division and merger;
4. Other important matters regarding the division and merger.
(4) In principle, the distribution of the property under paragraph (2) 1 or (3) 1 shall be based on the number of workers, but the degree of contribution to the creation of the intra-company labor welfare fund for each business before the division may be taken into consideration for distribution.
(5) The provisions of Article 72 (3) shall apply mutatis mutandis to the determination of the level of assistance under paragraph (3) 2. In such cases, the term “merger” shall be construed as “division and merger”.
law view
 Article 76 (Establishment of Funds by Division or Division and Merger and Registration thereof)   print
(1) When an incorporated fund is established by dividing or dividing and merging with another fund, the owner of the business established by dividing or dividing and merging business businesses shall organize a preparatory committee and shall go through all formalities for the establishment of the incorporated fund under Article 52.
(2) The incorporated fund surviving after a division or a division and merger of an incorporated fund shall file for registration of changes in registered facts, while the incorporated fund disappearing upon the division or division and merger shall file for registration of dissolution.
law view
 Article 77 (Effectuation and Effects of Division, etc.)   print
(1) A division or a division and merger of incorporated funds shall become effective when the incorporation of the incorporated fund established by the division or division and merger is registered or the changes in the incorporated fund surviving the division or division and merger is registered.
(2) An incorporated fund established by a division or a division and merger or surviving such division or division and merger shall succeed to rights and obligations of the divided incorporated fund, as stipulated in the relevant division agreement or division and merger agreement.
law view
 Article 78 (Confidentiality, etc.)   print
Neither a member of a welfare fund council nor a director or auditor of an incorporated fund shall divulge confidential information known to him/her in the course of performing his/her duty, hold another office concurrently, or engage in self-dealing in connection with the business of the intra-company labor welfare fund.
law view
 Article 79 (Prohibition of Use of Similar Name)   print
No person, other than an intra-company labor welfare fund under this Act, shall use the words “intra-company labor welfare fund” or any other similar words in its name.
law view
 Article 80 (Application Mutatis Mutandis of the Civil Act)   print
Except as otherwise provided for in this Act, the provisions regarding incorporated foundations in the Civil Act shall apply mutatis mutandis to incorporated funds.
SECTION 3 Selective Welfare Program, Programs for Supporting Workers, etc.
law view
 Article 81 (Implementation of Selective Welfare Program)   print
(1) A business owner may establish and implement a program under which each worker may autonomously select welfare benefits, from among various welfare benefits, according to his/her preference and needs (hereinafter referred to as “selective welfare program”).
(2) When a business owner implements a selective welfare program, he/she shall ensure that every worker in the business receives welfare benefits equally: Provided, That the level of benefits may be varied according to reasonable criteria, taking into consideration the position, continuous service year, dependents, etc. of each worker.
law view
 Article 82 (Designing, Operation, etc. of Selective Welfare Program)   print
(1) When a business owner designs a selective welfare program, he/she shall endeavor to reflect benefits for basic livelihood security, such as workers’ death, disabilities, and illness, and additional selective benefits for assisting individuals for healthy recreation, cultural and leisure activities, etc. in the program in a balanced way.
(2) In order to prevent inconvenience that might be caused to workers in selecting and using welfare benefits provided through the selective welfare program, a business owner shall endeavor to directly provide electronic management services or entrust such services to a third party.
(3) The selective welfare program may be utilized in conducting business activities of an intra-company labor welfare fund.
(4) Specific matters necessary for the designing and operation of the selective welfare program under paragraphs (1) and (2) shall be prescribed by Ordinance of the Ministry of Employment and Labor.
law view
 Article 83 (Programs for Assisting Workers)   print
(1) A business owner shall endeavor to implement a program for assisting workers, through which he/she can protect workers by assisting them in solving problems impeding business performance, such as workers’ mental stress and personal difficulties arising in the course of performing their duties or daily life, and provide services to workers, such as experts’ counseling services for improving productivity.
(2) Except as otherwise prescribed by Presidential Decree, each business owner and participant in a program for assisting workers shall ensure anonymity so as to prevent workers’ confidential information from being violated in the course of going through all formalities under paragraph (1).
law view
 Article 84 (Distribution of Over-Achievements)   print
If business targets established by an agreement made between a business owner and workers employed for the relevant business with regard to income, etc. for the pertinent year are over-achieved, the business owner shall pay the over-achievements to workers or shall endeavor to use such over-achievements for the promotion of workers’ welfare.
law view
 Article 85 (Reward for Invention, Proposal, etc.)   print
If a worker employed for a business has contributed to the increase of the company’s productivity or sales by making an invention or developing new knowledge, information, or technology in connection with his/her job, the business owner shall endeavor to reward such worker adequately for the contribution. The specific guidelines for reward in such cases shall be established through the labor-management council under the Act on the Promotion of Workers’ Participation and Cooperation.
law view
 Article 86 (Assistance from State and Local Government)   print
The State or a local government shall provide assistance as necessary for promoting the selective welfare program, programs for assisting workers, the distribution of over-achievements, and reward for inventions, proposals, etc.
CHAPTER IV LABOR WELFARE PROMOTION FUND
law view
 Article 87 (Establishment of Labor Welfare Promotion Fund)   print
In order to secure funds necessary for workers’ welfare programs, the Minister of Employment and Labor shall establish the Labor Welfare Promotion Fund.
law view
 Article 88 (Raising of Labor Welfare Promotion Fund)   print
(1) The Labor Welfare Promotion Fund shall be raised from the following financial resources:
1. Contributions by the State and a local government;
2. Cash, goods, and other property contributed by one other than the State or a local government;
3. Money transferred from other funds (excluding the employee stock ownership association fund under Article 36 and the intra-company labor welfare fund under Article 52);
4. Borrowings under paragraph (2);
5. Fees for guarantee, amount of indemnity and overdue interest collected pursuant to Articles 24, 26, and 27;
6. Capital created by issuing the lottery pursuant to Article 23 (1) of the Lottery Tickets and Lottery Fund Act;
7. Property specified by articles of incorporation as those that shall be reverted to the Labor Welfare Promotion Fund at the time when an incorporated fund is dissolved pursuant to Article 71;
8. Donations by a business owner and a business owners’ association;
10. Profits generated from the operation of the Labor Welfare Promotion Fund;
11. Other revenues.
(2) If it is necessary for the operation of the Labor Welfare Promotion Fund, money may be borrowed from financial companies or other funds at the liability of the Labor Welfare Promotion Fund.
law view
 Article 89 (Fiscal Year of Labor Welfare Promotion Fund)   print
The fiscal year of the Labor Welfare Promotion Fund shall correspond to that of the State.
law view
 Article 90 (Management and Operation of Labor Welfare Promotion Fund)   print
(1) The Labor Welfare Promotion Fund shall be managed and operated by the Service.
(2) When the Service operates the Labor Welfare Promotion Fund, it shall account the Fund apart from other accounts.
(3) Matters necessary for the management and operation of the Labor Welfare Promotion Fund shall be prescribed by Presidential Decree.
law view
 Article 91 (Use of Labor Welfare Promotion Fund)   print
The Labor Welfare Promotion Fund shall be used for the following purposes:
1. Loans for workers’ housing purchase;
2. Loans for workers’ living security;
3. Scholarships and loans to workers and their children for school expenses;
4. Expenses for the operation of the integrated information system for workers’ welfare under Article 14;
5. Expenses for the support for credit guarantee pursuant to Article 22;
6. Assistance relating to employee stock ownership program;
7. Assistance relating to the intra-company labor welfare fund system;
8. Financial support for the establishment and operation of workers’ welfare facilities;
9. Support for cultural and leisure activities to promote workers’ health;
10. Assistance relating to the selective welfare system;
11. Assistance relating to programs for supporting workers;
12. Expenses for the medical activities to promote workers’ health;
13. Expenses for the research and development regarding workers’ welfare programs;
14. Expenses for implementation and management of the unemployed measures as prescribed in Article 34 of the Framework Act on Employment Policy;
15. Investment in profit-making businesses for the operation of the Labor Welfare Promotion Fund;
16. Expenses for the creation, management, and operation of the Labor Welfare Promotion Fund;
17. Other necessary assistances specified by Presidential Decree to promote workers’ welfare.
law view
 Article 92 (Separate Accounting, etc.)   print
(1) The funds as specified in Article 88 (1) 5 and 9 shall be accounted apart from those which are formed and operated for other business purposes.
(2) The funds as specified in Article 88 (1) 5 and 9 shall be used for expenses under subparagraphs 5 and 14 of Article 91 respectively.
(3) Notwithstanding paragraphs (1) and (2), the Service may, with the approval of the Minister of Employment and Labor, use the funds separately accounted with the Fund by converting the use of them mutually for the expenses prescribed in subparagraph 5 of Article 91.
CHAPTER V SUPPLEMENTARY PROVISIONS
law view
 Article 93 (Guidance, Supervision, etc.)   print
(1) Where it is necessary to promote workers’ welfare, the Minister of Employment and Labor may require the person concerned to report the following matters or may instruct his/her public official to inspect the relevant accounting books, documents, and other goods, and if deemed necessary, order the redress in its operations, as prescribed by Presidential Decree:
1. The actual state of management and operation by the Service of the Labor Welfare Promotion Fund;
2. The business, accounting and property of the non-profit organizations entrusted with the operation of workers’ welfare facilities pursuant to Article 29 (1);
3. The business, accounting and property of an incorporated fund under Article 52.
(2) Where necessary for the purpose of supervising a business owner, an institution engaging in loans, an employee stock ownership association, a trustee under Article 43, or a person offered subsidy or loans, the State or a local government may require the person concerned to report and submit the materials relating to the business under this Act as prescribed by Presidential Decree, issue an order to such person as necessary, or may have his/her public official question the relevant person or investigate and inspect relevant accounting books, documents, etc.
(3) Any public official who conducts any inspection pursuant to paragraph (1) or (2) shall carry a certificate indicating his/her authority and shall produce it to the relevant persons.
(4) Any public official who conducts an inspection pursuant to paragraph (1) or (2) shall notify the persons subject to the inspection of the date, time, and details of inspection and other necessary facts at least seven days earlier than the date of inspection: Provided, That the foregoing shall not apply to emergency cases and cases where it is deemed impracticable to achieve the purposes of inspection, if prior notice is given.
(5) The Minister of Employment and Labor or other competent authority shall give written notice of the results of inspection conducted under paragraph (1) or (2) to the persons subject to the inspection.
law view
 Article 94 (Delegation and Entrustment of Authority)   print
(1) The authority of the Minister of Employment and Labor under this Act may be partially delegated to the head of each regional labor office, as prescribed by Presidential Decree.
(2) Affairs assigned to the Minister of Employment and Labor under this Act may be partially entrusted to an agency or organization relating to workers’ welfare, as prescribed by Presidential Decree.
law view
 Article 95 (Return Order)   print
(1) The State or a local government may order a person who violates the provision of Article 6 to return all or part of subsidy and loan received, as prescribed by Presidential Decree.
(2) The State or a local government may order a person who receives subsidy or loans pursuant to this Act by deceit or other fraudulent means to return all or part of subsidy and loans received, as prescribed by Presidential Decree.
(3) A person who receives the return order pursuant to paragraph (1) or (2) shall make a repayment even before the repayment deadline.
law view
 Article 96 (Penal Provisions)   print
Any of the following persons shall be punished by imprisonment for not more than one year or by a fine not exceeding 30 million won:
1. A person that commits an act specified in any subparagraph of Article 42-2 (1);
2. A person that dismisses or otherwise treat unfavorably a member of the employee stock ownership association in violation of Article 42-2 (2) on the ground that the employee reported a violation of paragraph (1) or gave testimony or presented evidence on such violation.
[This Article Newly Inserted by Act No. 12370, Jan. 28, 2014]
CHAPTER VI PENAL PROVISIONS
law view
 Article 97 (Penal Provisions)   print
Any of the following persons shall be punished by imprisonment for not more than one year or by a fine not exceeding three million won:
1. A director that operates an incorporated fund in violation of Article 62 or 63;
2. A director of an incorporated fund that breaches prohibition against owning real estate by the incorporated fund under Article 67 and the employer of the relevant business;
3. An employer that discontinues or reduces workers’ welfare programs or workers’ welfare facilities in violation of Article 68 (1);
4. A liquidator that violates Article 71 in applying a method for disposing of the property of a dissolved incorporated fund;
5. A member of a welfare fund council or a director or an auditor of an incorporated fund, who divulges confidential information known to him/her in the course of performing his/her duty, holds another office concurrently, or engages in self-dealing in connection with the business of the incorporated fund, in violation of Article 78.
law view
 Article 98 (Joint Penal Provisions)   print
If the representative of a corporation or an agent, employee, or servant that works for a corporation or individual commits an offense prescribed in Articles 96 or 97 in connection with the business of the corporation or individual, not only shall such offender be punished accordingly but the corporation or individual also shall be punished by the fine prescribed in the relevant provisions: Provided, That the foregoing shall not apply to cases where the corporation or individual has not neglected due care and supervision over the business to prevent such offense. <Amended by Act No. 12370, Jan. 28, 2014>
law view
 Article 99 (Fines for Negligence)   print
(1) An employer or incorporated fund that breaches an order for rectification under Article 69 shall be punished by a fine for negligence not exceeding five million won.
(2) A person that uses a subsidy granted or a loan received under this Act for workers’ welfare for any purpose other than originally intended purposes in violation of Article 6 shall be punished by a fine for negligence not exceeding three million won.
(3) Either of the following persons shall be punished by a fine for negligence not exceeding two million won:
1. An incorporated fund that fails to prepare and preserve the relevant documents in violation of Article 57 or 65;
2. A person that fails to report or makes a false report in compliance with a request under Article 93 (1) 3; a person that fails to comply with an order issued as necessary; or a person that refuses, interferes with, or evades an inspection conducted by a public official.
(4) Any of the following persons shall be punished by a fine for negligence not exceeding one million won:
1. A representative of employee stock ownership association that violates the proviso to Article 35 (3) or Article 35 (4), (5), and (7) through (9);
2. A representative of employee stock ownership association that fails to separate the accounts in accordance with the method prescribed for the management of the relevant accounts in violation of Article 37;
3. A representative of employee stock ownership association that deposits employee shares in violation of Article 43 (1);
4. A representative or a member of employee stock ownership association that transfers the employee share deposited or provides such employee share as security in violation of Article 43 (3):
5. A representative of employee stock ownership association, that breaches the method prescribed in Article 46 for the exercise of the voting rights of the employee stock ownership association;
6. A liquidator that breaches the procedure prescribed in Article 47 for dissolution of an employee stock ownership association;
7. A person that fails to report or makes a false report in compliance with a request under Article 93 (1) 1 or 2; a person that fails to comply with an order issued as necessary; or a person that refuses, interferes with, or evades an inspection conducted by a public official;
8. A person that fails to report or makes a false report in compliance with a request under Article 93 (2); a person that fails to submit the materials or who makes a misrepresentation in such materials; a person that fails to comply with an order issued as necessary for supervision; or a person that refuses, interferes with, or evades an inspection conducted under the aforesaid provisions.
(5) Fines for negligence under the provisions of paragraphs (1) through (4) shall be imposed and collected by the Minister of Employment and Labor, as prescribed by Presidential Decree.
ADDENDA
Article 1 (Enforcement Date)
This Act shall enter into force six months after the date of its promulgation: Provided, That Article 11 (11) of Addenda shall enter into force on January 1, 2011.
Article 2 (Repeal of other Act)
The Intra-Company Labor Welfare Fund Act is hereby repealed.
Article 3 (Applicability to Preparation and Preservation of Documents regarding Management and Operation of Incorporated Fund)
The amended provisions of Article 65 shall apply to documents (including electronic documents) prepared by an incorporated fund on or after the date this Act enters into force.
Article 4 (Transitional Measures concerning Employee Stock Ownership Association)
An employee stock ownership association existing under the previous provisions at the time this Act enters into force (including an entity construed as an employee stock ownership association under the Framework Act on Worker's Welfare pursuant to Article 3 of Addenda to the aforesaid Act (Act No. 6510)) shall be construed as an employee stock ownership association under the amended provisions of Article 33.
Article 5 (Transitional Measures concerning Workers’ Welfare Facilities)
Workers’ welfare facilities established pursuant to the previous provisions at the time this Act enters into force (including those construed as workers’ welfare facilities established pursuant to the Framework Act on Worker's Welfare pursuant to Article 4 of Addenda to the aforesaid Act (Act No. 6510)) shall be construed as workers’ welfare facilities established pursuant to the amended provisions of Article 28.
Article 6 (Transitional Measures concerning Intra-Company Labor Welfare Fund and Executives, etc. thereof)
(1) An intra-company labor welfare fund established pursuant to the former Intra-Company Labor Welfare Fund Act at the time this Act enters into force shall be construed as an incorporated fund established pursuant to the amended provisions of Article 52.
(2) Members of an intra-company labor welfare fund council and directors, auditors, and employees of an intra-company labor welfare fund, established pursuant to the former Intra-Company Labor Welfare Fund Act at the time this Act enters into force, shall be construed as members of a welfare fund council and directors, auditors, and employees of an incorporated fund respectively under this Act. Notwithstanding the amended provisions of Article 59, the term of office of council members, directors, and auditors in such cases shall be governed by the former Intra-Company Labor Welfare Fund Act until the term of office of each of them expires.
(3) An incorporated fund which is deemed to be established pursuant to this Act shall be deemed to succeed to all property, rights, and obligations that belonged to an intra-company labor welfare fund established pursuant to the former Intra-Company Labor Welfare Fund Act at the time this Act enters into force.
Article 7 (Transitional Measures concerning Workers’ Welfare Promotion Fund)
A workers’ welfare promotion fund established pursuant to the previous provisions at the time this Act enters into force (including those construed as a workers’ welfare promotion fund established pursuant to the Framework Act on Worker's Welfare pursuant to Article 5 of Addenda to the aforesaid Act (Act No. 6510)) shall be construed as a labor welfare promotion fund established pursuant to the amended provisions of Article 87.
Article 8 (General Transitional Measures concerning Disposition, etc.)
An act conducted by or in relation to an administrative agency under the previous provisions of this Act or provisions of the former Intra-Company Labor Welfare Fund Act at the time this Act enters into force shall be construed as an act conducted by or in relation to the administrative agency under the corresponding provisions of this Act.
Article 9 (Transitional Measures concerning Penal Provisions)
The former Intra-Company Labor Welfare Fund Act shall apply to an act conducted before this Act enters into force in applying the penal provisions thereto.
Article 10 (Transitional Measures concerning Fines for Negligence)
An act conducted before this Act enters into force shall be governed by the previous provisions of this Act and the provisions of the former Intra-Company Labor Welfare Fund Act in applying the provisions regarding fines for negligence thereto.
Article 11 Omitted.
Article 12 (Relations to other Acts and Subordinate Statutes)
A citation of the former Framework Act on Worker's Welfare or any provision thereof or a citation of the former Intra-Company Labor Welfare Fund Act or any provision thereof by any Act or subordinate statute in force at the time this Act enters into force shall be deemed a citation of this Act or the corresponding provision of this Act in lieu of the former Framework Act on Worker's Welfare or the relevant provision thereof or the former Intra-Company Labor Welfare Fund Act or the relevant provision thereof, if such corresponding provision exists in this Act.
ADDENDUM <Act No. 11271, Feb. 1, 2012>
This Act shall enter into force six months after the date of its promulgation.
ADDENDA <Act No. 11461, Jun. 1, 2012>
Article 1 (Enforcement Date)
This Act shall enter into force three months after the date of its promulgation.
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. 11845, May 28, 2013>
Article 1 (Enforcement Date)
This Act shall enter into force three months after the date of its promulgation. (Proviso Omitted.)
Articles 2 through 17 Omitted.
ADDENDA <Act No. 12370, Jan. 28, 2014>
Article 1 (Enforcement Date)
This Act shall enter into force six months after the date of its promulgation.
Article 2 (Applicability to Legal Personality and Incorporation)
The amended provisions of Article 52 shall apply beginning with the first applications filed for authorization for the incorporation of an incorporated fund after this Act enters into force.