SECTION 1 Workers’ Housing Stability

Article 15 (Operation of Workers Housing Supply System)

(1) In order to support the acquisition or rental of housing by workers, the State and a local government may operate a system of ensuring that a housing business operator sells or leases (hereinafter referred to as “supply”) houses preferentially to workers.
(2) The Minister of Land and Transport Affairs shall include a plan to supply houses to workers (hereinafter referred to as “housing for workers”) pursuant to paragraph (1) in the comprehensive housing plan formulated under Article 5 of the Framework Act on Residence.
(3) Types and sizes of housing for workers, workers to be supplied with housing, supply methods and other necessary matters shall be determined by the Minister of Land and Transport Affairs in consultation with the Minister of Employment and Labor.

Article 16 (Lending of Workers’ Housing Funds)

(1) In any of the following cases, the State may provide support through the Housing and Urban Fund prescribed in the Housing and Urban Fund Act to ensure that a housing business operator or a worker can get necessary funds (hereinafter referred to as “workers’ housing funds”)：
1. Where a housing business operator builds or purchases housing for workers；and
2. Where a worker acquires housing for workers from a housing business operator.
(2) Necessary matters concerning those eligible for, and procedures for, getting workers’ housing funds, and other supports shall be determined by the Minister of Land and Transport Affairs in consultation with the Minister of Employment and Labor.

Article 17 (Lending of Housing Purchase Funds, etc.)

(1) For workers’ housing stability, the State may provide support through the Housing and Urban Fund prescribed in the Housing and Urban Fund Act to ensure that a worker can get necessary funds (hereinafter referred to as “housing purchase funds, etc.”) if he/she purchases, newly constructs or rents a house.
(2) The State or a local government may have institutions engaging in loan activities lend housing purchase funds, etc., to workers at an interest rate lower than the market rate and pay the balance.
(3) Necessary matters concerning those eligible for, and procedures for, getting housing purchase funds, etc, and other supports shall be determined by the Minister of Land and Transport Affairs in consultation with the Minister of Employment and Labor.

Article 18 (Support for Moving, etc. by Workers)

The State may provide necessary support for the housing stability of workers who move or live far away from their families as a result of employment, a change of workplace, etc.

SECTION 2 Workers’ Livlihood Stabilityand Wealth Creation

Article 19 (Provision of Livlihood Stability Funds)

(1) The State shall provide necessary support, such as loans for the medical, wedding, funeral expenses, etc., of workers and their families, in order to support workers’ livlihood stability.
(2) Considering the economic situation, the time when workers need livlihood stability funds, and so on, the State may provide necessary support, such as loans for living expenses, etc., in order to stabilize the livelihoods of workers, etc., who do not receive their wages.
(3) Necessary matters concerning those eligible for and procedures for, support for medical, wedding, funeral, and living expenses, etc., under paragraphs (1) and (2) shall be prescribed by the Ordinance of the Ministry of Employment and Labor.

Article 20 (Support, etc. for School Expenses)

(1) Matters requiring consultation by a council shall be as any of the following subparagraphs:

1. Improvement of productivity and distribution of results achieved;

2. Recruitment, placement, education and training of workers;

3. Settlement of workers' grievances;

4. Safety, health and improvement of other working environment, and promotion of workers' health;

5. Improvement of personnel and labor management systems;

6. General rules of employment adjustment, such as manpower transposition, retraining and dismissal due to managerial or technological reasons;

7. Administration of working hours and recess hours;

8. Improvement of systems for payment mode, system, structure, etc. of remuneration;

9. Introduction of new machinery and technologies, or improvement of work processes;

10. Establishment or amendment of work rules;

11. Employee stock ownership plan and other assistance to increase workers' property;

12. Matters on remuneration to relevant worker for an employee invention, etc.;

13. Improvement of workers' welfare;

14. Installation of surveillance equipment for workers within a workplace;

15. Protection of motherhood for women workers and matters to help combine work and home life;

16. Prevention of sexual harrassment on the job under subparagraph 2 of Article 2 of the Equal Employment Opportunity and Work-Family Balance Assistance Act and sexual harrassment by clients, etc.;

17. Other matters regarding cooperation between labor and management.

(2) A council may pass resolutions as to matters falling under any subparagraph of paragraph (1) in accordance with a quorum referred to in Article 15.

[This Article Wholly Amended by Act No. 8815, Dec. 27, 2007]

Article 21 (Preferential Savings Account for Workers)

The State shall operate a savings system giving preferential treatment to workers in order to support workers’ wealth creation.

SECTION 3 Support for Credit Guarantee for Workers

Article 22 (Credit Guarantee and Those Eligible Therefor)

(1) If a debt is incurred by a worker with a lack of collateral (including the unemployed who have been registered as job seekers and accident victims under the Industrial Accident Compensation Insurance Act；hereinafter the same shall apply in this Chapter) as a result of borrowing livelihood stability funds, school expenses, etc., from a financial company, etc., the Korea Workers Compensation and Welfare Service (hereinafter referred to as the “Corporation”) under the Industrial Accident Compensation Insurance Act may guarantee the debt in accordance with a contract with that financial company, etc. In this case, types of loans and workers subject to such guarantee shall be prescribed by the Ordinance of the Ministry of Employment and Labor.
(2) The contract made between the Corporation and a financial company, etc., under paragraph (1) shall contain the following matters：
1. A statement saying that the debt referred to in paragraph (1) is guaranteed；
2. Types of loans and workers subject to the credit guarantee；
3. Guaranteed maximum amount per worker；
4. Reasons for, and period and method of, a claim for repayment of guaranteed debts；
5. Examination for, and extent of, subrogation and the share of losses borne by the financial company, etc.；
6. Matters concerning the operation of the credit guarantee system, of which the financial company, etc. should notify the Corporation；and
7. Other matters necessary for a credit guarantee for workers.
(3) If the Corporation intends to sign or alter the contract prescribed in paragraph (1), it shall obtain approval from the Minister of Employment and Labor.

Article 23 (Guarantee Relationship)

(1) If the Corporation has decided to provide a credit guarantee for a worker, it shall notify the worker and the financial company, etc., from which the worker intends to get loans of the fact.
(2) A credit guarantee relationship is established at the time when the financial company, etc., given notification makes loans to the worker concerned pursuant to paragraph (1).

Article 24 (Fees for Guarantee)

The Service may collect guarantee fee from the employee whose credit is guaranteed pursuant to Article 22 within the limit not exceeding, per annum, 1/100 of the amount guaranteed as prescribed by Presidential Decree.

Enforcement Ordinance

Article 25 (Obligation of Notification)

If a financial company, etc., given notification pursuant to Article 23 falls under any of the following subparagraphs, it shall notify the Corporation of the fact without delay：
1. Where the main creditor-debtor relationship has been established；
2. Where all or part of the main debt is extinguished；
3. Where the worker fails to repay the debt；
4. Where the worker loses the benefit of time；or
5. Where there occur other reasons which might influence the guaranteed debt.

Article 26 (Repayment, etc. of Guaranteed Debt)

(1) A financial company, etc., which provides loan services pursuant to Article 22 (1) may make a claim against the Corporation for repayment of guaranteed debts under the same Article, if there occurs a reason to claim repayment of guaranteed debts.
(2) If a financial company, etc., claims repayment of guaranteed debts pursuant to paragraph (1), the Corporation shall make a subrogated payment in accordance with the terms of the contract under Article 22 (2).
(3) If the Corporation has repaid guaranteed debts pursuant to paragraph (2), it may directly exercise the right to indemnity or entrust the exercise of that right to a financial company, etc.
(4) The financial company, etc., entrusted with the exercise of the right to indemnity pursuant to paragraph (3) may take all judicial and non-judicial actions relating to the exercise of the right to indemnity on behalf of the Corporation.

Enforcement Ordinance

Enforcement Ordinance

Article 27 (Late Interest)

If the Corporation has paid guaranteed debts, it may collect late interest on the paid amount from the worker concerned at an annual rate not exceeding 20/100 from the date of payment until when the worker reimburses the amount, under the conditions prescribed by the Presidential Decree. In this case, the late interest shall not exceed the paid amount.

Enforcement Ordinance

SECTION 4 Support for Labor Welfare Facilities, etc.

Article 28 (Support for Establishment, etc. of Labor Welfare Facilities)

(1) The State and a local government shall make efforts to establish and operate labor welfare facilities (hereinafter referred to as “labor welfare facilities”).
(2) The Minister of Employment and Labor may set standards for the establishment of labor welfare facilities in consideration of the type of business and the number of workers in the workplace and recommend an employer to establish them.
(3) The State and local Government may provide necessary support, if an employer (including an employers’ association；hereinafter the same shall apply in this Article), a labor union (including local chapters, branches, etc.；hereinafter the same shall apply.), the Corporation or a nonprofit corporation sets up and operates labor welfare facilities.
(4) If a local government, an employer, a labor union, the Corporation or a nonprofit corporation establishes and operates labor welfare facilities, the State and local Government may support part of the costs within the limits of its budget.

Article 29 (Entrustment of Operation of Labor Welfare Facilities)

(1) The State or a local government may entrust the Corporation or a nonprofit organization to operate the labor welfare facilities established pursuant to Article 28 (1), if it is necessary for their efficient operation.
(2) If the State or a local government entrusts the operation of labor welfare facilities pursuant to paragraph (1), it may subsidize part of the costs of operation within the limits of its budget.

Article 30 (Fees, etc.)

A person who establishes and operates labor welfare facilities may restrict some people from using the labor welfare facilities or charge different fees in consideration of the income levels, family relations, etc. of workers.

Article 31 (Support for Cost of Using Private Welfare Facilities)

(1) If a worker under Article 3 (3) uses a welfare facility operated by a private agency because he/she has difficulties in using the labor welfare facilities set up by the Sate or a local government under Article 28 (1), part of the costs may be provided.
(2) Necessary matters concerning those eligible for the support, procedures, etc., under paragraph (1) shall be prescribed by the Ordinance of the Ministry of Employment and Labor.