FRAMEWORK ACT ON LABOR WELFARE [See entire ACT]
CHAPTER Ⅵ Labor Welfare Promotion Fund
- Article 87 (Establishment of Labor Welfare Promotion Fund)
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The Minister of Employment and Labor shall establish the Labor Welfare Promotion Fund in order to secure necessary financial resources for labor welfare projects.
- Article 88 (Raising of Labor Welfare Promotion Fund)
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(1) The Labor Welfare Promotion Fund shall be created with the following financial resources：
1. Contributions by the State or local governments；
2. Cash, goods and other properties contributed by persons other than the State or local governments；
3. Money transferred from other funds (excluding the employee stock ownership fund under Article 36 and the employee welfare fund under Article 52)；
4. Loans under paragraph (2)；
5. Fees for guarantee, amount of indemnity and late interest under Articles 24, 26 and 27；
6. Proceeds from the sales of lottery tickets distributed under Article 23 (1) of the Lottery Tickets and Lottery Fund Act；
7. Properties that should be reverted to the Labor Welfare Promotion Fund according to the articles of incorporation in the event of the dissolution of a fund corporation under Article 71；
8. Donations by an employer or an employers’ association；
9. Funds raised pursuant to Article 35 of the Framework Act on Employment Policy；
10. Profits generated from the management of the Labor Welfare Promotion Fund；and
11. Other revenues.
(2) If it is necessary for the management of the Labor Welfare Promotion Fund, money may be borrowed from financial companies or other funds at the expense of the Labor Welfare Promotion Fund.
Enforcement Ordinance
- Article 56 (Other Revenues)
Other revenues under Article 88 (1) 11 of the Act refer to those specified in the following subparagraphs：
1. Proceeds from labor welfare projects and the operation of labor welfare facilities established and operated by the State pursuant to Article 28 (1) of the Act；and
2. Other revenues recognized by the Minister of Employment and Labor.
- Article 89 (Fiscal Year of Labor Welfare Promotion Fund)
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The fiscal year of the Labor Welfare Promotion Fund shall correspond to that of the State.
- Article 90 (Operation and Management of Labor Welfare Promotion Fund)
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(1) The Labor Welfare Promotion Fund shall be managed and operated by the Corporation.
(2) When the Corporation manages the Labor Welfare Promotion Fund, it shall handle the accounting of the Fund separate from its other accounting.
(3) Necessary matters concerning the management and operation of the Labor Welfare Promotion Fund shall be prescribed by the Presidential Decree.
Enforcement Ordinance
- Article 57 (Composition, etc. of Promotion Fund Management Council)
(1) In order to deliberate on important matters concerning the operation and management of the Promotion Fund under Article 90 of the Act, a promotion fund management council (hereinafter referred to as the “Council”) shall be established within the Corporation.
(2) The Council shall be composed of not more than 15 members including one chairperson.
(3) The President of the Corporation shall assume the chairmanship of the Council and the members shall be appointed by the President of the Corporation from among general public officials who are in charge of duties relating to the Promotion Fund in the Ministry of Employment and Labor and members of the senior civil service, general public officials who are in charge of labor welfare budgets in the Minister of Strategy and Finance and members of the senior civil service, and persons falling under any of the following subparagraphs：
1. Standing directors of the Corporation；
2. Persons representing workers；
3. Persons representing employers；
4. Persons recognized as having plenty of academic knowledge and experience in labor welfare；and
5. Persons recognized as having plenty of professional knowledge and experience with respect to the management and operation of the Promotion Fund.
(4) The term of office for a member appointed by the President of the Corporation and who is a person specified in subparagraphs 2 through 5 of paragraph (3) shall be two years：Provided that the term of office for a substitute member shall be the remaining term of his/her predecessor.
(5) The Council shall deliberate on the following matters：
1. Establishment and implementation of a plan for the management of the Promotion Fund under Article 58；
2. Final accounts of the Promotion Fund under Article 59；and
3. Other matters submitted by the chairperson of the Council to a Council meeting with regard to the management and operation of the Promotion Fund.
(6) Except for matters provided for in this Decree, necessary matters concerning the operation of the Council shall be determined by the chairperson after resolution at the Council.
Enforcement Ordinance
- Article 58 (Establishment of Promotion Fund Management Plan)
(1) Every fiscal year the Corporation shall prepare a fund management plan for the following year according to the National Finance Act.
(2) In order for the Corporation to prepare a fund management plan pursuant to paragraph (1) or modify a fund management plan, deliberation of the Council shall be necessary.
<This Article Wholly Amended by Presidential Decree No. 25520, Jul. 28, 2014>
Enforcement Ordinance
- Article 59 (Final Accounts, etc. of Promotion Fund)
(1) Every fiscal year the Corporation shall prepare a report on the final accounts of the Promotion Fund for the preceding year and submit the report to the Minister of Strategy and Finance through the Minister of Employment and Labor by the end of February.
(2) When the report on final accounts is submitted under paragraph (1), it shall be accompanied by the following documents：
1. Documents concerning an outline and analysis of the final accounts of the Promotion Fund；
2. Financial statements, such as a balance sheet and an income statement, etc.；
3. Documents that prove cash revenue and expenditure, such as a revenue and expenditure statement, etc.；and
4. Other documents deemed necessary by the Minister of Strategy and Finance for the verification of the accuracy of the final accounts of the Promotion Fund.
(3) If there is a surplus in the final accounts of the Promotion Fund, the Corporation shall appropriate such surplus to cover the losses carried forward, and transfer the rest to the Promotion Fund.
Enforcement Ordinance
- Article 60 (Operational Rules of Promotion Fund)
Except for matters provided for in this Decree, matters necessary for the management and operation of the Promotion Fund shall be determined by the Corporation with the approval of the Minister of Employment and Labor. The same shall apply in case where an alteration is made to the approved matters.
- Article 91 (Use of Labor Welfare Promotion Fund)
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The Labor Welfare Promotion Fund shall be used for the following purposes：
1. Loans for workers’ housing purchase, etc.；
2. Loans for workers’ livlihood security；
3. Scholarships and loans to workers and their children for school expenses；
4. Operation of the labor welfare information system under Article 14；
5. Expenses for supporting credit guarantee under Article 22；
6. Support for employee stock ownership plans；
7. Support for the employee welfare fund system and the joint fund system;
8. Financial support for the establishment and operation of labor welfare facilities；
9. Support for cultural and sport activities to enrich workers’ life；
10. Support for selective welfare systems；
11. Support for employee support programs；
12. Expenses for medical-care activities to promote workers’ health；
13. Expenses for research and development regarding labor welfare projects；
14. Expenses for the implementation and operation of unemployment measures under Article 34 of the Framework Act on Employment Policy；
15. Investment in profit-making businesses to manage the Labor Welfare Promotion Fund；
16. Expenses for the creation, management and operation of the Labor Welfare Promotion Fund；and
17. Other necessary supports for the activities prescribed by the Presidential Decree to promote workers’ welfare.
Enforcement Ordinance
- Article 61 (Usage of Promotion Fund)
“Activities prescribed by the Presidential Decree” in subparagraph 17 of Article 91 of the Act refer to the following projects：
1. Projects, such as retirement pension plans, etc., to support workers’ livelihoods in old age；and
2. Projects included in the promotion fund management plan under Article 58 and deemed necessary by the Corporation after deliberation at the Council.
- Article 92 (Separation, etc. of Accounting)
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(1) The funds referred to in subparagraphs 5 and 9 of Article 88 (1) shall be accounted for apart from the funds from the Labor Welfare Promotion Fund, which are raised and managed for other business purposes.
(2) The funds referred to in subparagraphs 5 and 9 of Article 88 (1) shall be used to cover the expenses referred to in subparagraphs 5 and 14 of Article 91.
(3) Notwithstanding the provisions of paragraphs (1) and (2), the Corporation may, with the approval of the Minister of Employment and Labor, divert the funds from the Labor Welfare Promotion Fund, which are separately accounted for, to cover the expenses referred to in subparagraph 5 of Article 91.
