Article 96 (Penal Provisions)

Any of the following persons shall be punished by imprisonment with labor for not more than one year or by a fine not exceeding 30 million won:

1. A person who commits an act specified in any subparagraph of Article 42-2 (1);

2. A person who dismisses or otherwise treat unfavorably a member of the employee stock ownership association in violation of Article 42-2 (2) on the grounds that the employee reported a violation of paragraph (1) or gave testimony about or presented evidence of such violation.

[This Article Newly Inserted on Jan. 28, 2014]

[Previous Article 96 moved to Article 97 ]

Article 97 (Penal Provisions)

Any of the following persons shall be punished by imprisonment with labor for not more than one year, or by a fine not exceeding 10 million won:

1. A director who operates an incorporated fund or a joint fund foundation in violation of Articles 62 (including cases applied mutatis mutandis in Article 86-15), 63 (including cases applied mutatis mutandis in Article 86-15), and 86-6;

2. A director of an incorporated fund or the employer of the relevant business, who violates the prohibition against ownership of real estate by the incorporated fund or the joint found foundation under Article 67 (including cases applied mutatis mutandis in Article 86-15);

3. An employer who discontinues employees’ labor welfare programs or the operation of employees’ labor welfare facilities or downsizes such programs or facilities in violation of Article 68 (1) (including cases applied mutatis mutandis in Article 86-15);

4. A liquidator who violates any of the methods of disposal of property of a dissolved incorporated fund or dissolved joint fund foundation under Article 71 or 86-12;

5. A member of a welfare fund council or a director or an auditor of a welfare fund council and a joint fund council, who divulges confidential information that he or she has obtained in the course of performing his or her duties, holds another office concurrently, or engages in self-dealing in connection with business affairs of the incorporated fund or the joint fund foundation, in violation of Article 78 (including cases applied mutatis mutandis in Article 86-15);

6. A director of a joint fund foundation who violates any of the methods of disposal of property under Articles 86-8 (2) and 86-9;

7. A user of participating businesses which violate the methods of disposal of property under Article 86-8 (3).

[Moved from Article 96; previous Article 97 moved to Article 98 ]

Article 98 (Joint Penal Provisions)

If the representative of a corporation or an agent, a servant or any other employee of a corporation or an individual commits the offences described in Article 96 in relation to the business of the corporation or individual, the fine prescribed in the respective Article shall be imposed on the corporation or individual, in addition to punishment of the offender：Provided that this shall not apply unless the corporation or individual neglects to give considerable attention and supervision to the business concerned in order to prevent such offence.

Article 99 (Fines for Negligence)

(1) An employer, an incorporated fund, or a joint fund foundation who violates a corrective order issued under Article 69 (including cases applied mutatis mutandis in Article 86-15), shall be subject to an administrative fine not exceeding five million won.

(2) A person who uses a subsidy granted or a loan received under this Act for employees’ welfare for any purpose other than as originally intended in violation of Article 6 shall be subject to an administrative fine not exceeding three million won.

(3) A person who falls under any of the following subparagraphs shall be subject to an administrative fine not exceeding two million won:

1. An incorporated fund or a joint fund foundation that fails to prepare and preserve relevant documents in violation of Article 57 (including cases applied mutatis mutandis in Article 86-15) or Article 65 (including cases applied mutatis mutandis in Article 86-15;

2. A person who fails to comply with a request made for reporting under Article 93 (1) 3 (including cases applied mutatis mutandis in Article 86-15) or makes a false statement in such report, a person who fails to comply with an order issued as necessary, or a person who refuses, obstructs, or evades an inspection conducted by a public official.

(4) Any of the following persons shall be subject to an administrative fine not exceeding one million won:

1. The representative of an employee stock ownership association, who violates the proviso to Article 35 (3) or Article 35 (4), (5), or (7);

2. A representative of employee stock ownership association who fails to provide separate account management 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 who deposits employee shares in violation of Article 43 (1);

4. A representative or a member of employee stock ownership association who 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, who violates the method prescribed in Article 46 for the exercise of the voting rights of the employee stock ownership association;

6. A liquidator who violates the procedure prescribed in Article 47 for dissolution of an employee stock ownership association;

7. A person who fails to comply with a request for report or files a false report under Article 93 (1) 1 or 2, a person who fails to comply with an order issued as necessary, or a person who refuses, obstructs, or evades an inspection conducted by a public official;

8. A person who fails to comply with a request for report or files a false report under Article 93 (2), a person who fails to submit required materials or who submits false materials, a person who fails to comply with an order issued as necessary for supervision, or a person who refuses, obstructs, or evades an inspection conducted under the same provisions.

(5) Administrative fines 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.

[Moved from Article 98 ]

Enforcement Ordinance