INDUSTRIAL ACCIDENT COMPENSATION INSURANCE ACT [See entire ACT]

CHAPTER Ⅷ Penal Provisions

Article 127 (Penal Provisions)

(1) If a person who works in an industrial accident insurance-related medical institution or a pharmacy under Article 46 (1) has received medical expenses or medicine expenses by false or other fraudulent means, he/she shall be punished by imprisonment of up to three years or a fine not exceeding thirty million won.
(2) Any of the following persons shall be punished by imprisonment for not more than two years or by a fine not exceeding 20 million won:
1. A person who receives insurance benefits by fraud or other improper means;
2. A person who knowingly ordered or assisted the fraudulent or other improper receipt of insurance benefits;
3. A person who dismissed or otherwise disadvantageously treated any worker in violation of Article 111-2.
(3) A person who has disclosed confidential information in violation of Article 21 (3) shall be punished by imprisonment of up to two years or a fine not exceeding ten million won.

Article 128 (Joint Penal Provisions)

If the representative of a corporation or an agent or employee of, or any other person employed by, a corporation or an individual commits any violation referred to in Article 127 (2) in conducting the business affairs of the corporation or individual, the corporation or individual shall, in addition to punishing the violator accordingly, be punished by a fine prescribed in the relevant provision: Provided, That the same shall not apply, where such corporation or individual has not been negligent in giving due attention and supervision concerning the relevant business affairs to prevent such violation.

[This Article Wholly Amended on Jan. 7, 2009]

Article 129 (Fines for Negligence)

(1) A person who falls under any of the following subparagraphs shall be imposed with a fine for negligence not exceeding two million won:
1. A person who uses as his/her title the Korea Workers Compensation and Welfare Service and any similar term thereto in violation of Article 34;or
2. A person who claims medical expenses from a person other than the Corporation, in violation of Article 45 (1)
(2) A person who falls under any of the following subparagraphs shall be imposed with a fine for negligence not exceeding one million won:
1. A person who fails to submit a medical treatment plan referred to in Article 47 (1) without any justifiable reason;
2. A person who fails to answer questions, makes a false answer, or refuses, interferes with, or evades inspection in violation of Article 105 (4) (including the mutatis mutandis application thereof as provided in Article 109 (1));
3. A person who fails to make a report or makes a false report or a person who fails to comply with an order to submit documents or things, in violation of Article 114 (1) or 118;
4. A person who refuses to answer questions asked by an employee of the Corporation or refuses, interferes with or evades investigations in violation of Article 117 or 118;and
5. A person who fails to make a report referred to in Article 125 (3)
(3) The fine for negligence referred to in paragraph (1) or (2) shall be imposed and collected by the Minister of Employment and Labor, under the conditions as prescribed by the Presidential Decree.
(4) Deleted.
(5) Deleted.
(6) Deleted.

Enforcement Ordinance

Article 128 (Imposition of Fines for Negligence)

The amount of a fine for negligence by type of offense is shown in Table 12:Provided that the Minister of Employment and Labor may raise or reduce the amount of fine for negligence by up to half in consideration of the seriousness, frequency, motive and consequence of the offense but in the case of the imposition of a heavier fine, the amount shall not exceed the maximum amount of fine for negligence prescribed in Article 129 (1) and (2) of the Act.

For further questions, please
call (+82) 2-539-0098 or email bongsoo@k-labor.com

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