INDUSTRIAL ACCIDENT COMPENSATION INSURANCE ACT [See entire ACT]

CHAPTER Ⅰ General Provisions

Article 1 (Purpose)

The purpose of this Act is to compensate workers rapidly and fairly for their work-related accidents by carrying out industrial accident compensation insurance activities, to establish and operate insurance facilities to promote the rehabilitation of accident victims and their return to society, and to contribute to the protection of workers by preventing accidents and carrying out other projects for promoting workers’ welfare.

Enforcement Ordinance

Article 1 (Purpose)

Article 1 (Purpose)
The purpose of this Decree is to provide for the matters delegated by the Industrial Accident Compensation Insurance Act and those necessary for the enforcement thereof.

Article 2 (Management of Insurance and Insurance Year)

(1) The industrial accident compensation insurance activities (hereinafter referred to as “insurance activities”) prescribed by this Act shall be managed by the Minister of Employment and Labor. [Amended by Act No. 10339, Jun. 4, 2010]
(2) The insurance year for the insurance activities prescribed by this Act shall be the same as the fiscal year of the Government.

Article 3 (Finance and Support from the State)

(1) The State shall pay the expenses required for executing affairs about insurance activities from the general account within the limits of its budget every fiscal year.
(2) The State may support part of the expenses required for insurance activities within the limits of its budget every fiscal year.

Article 4 (Insurance Premiums)

The premiums and other charges to be collected to finance the expenses required for insurance activities under this Act shall be subject to the conditions prescribed by the Act on the Collection, etc. of Premiums for Employment Insurance and Industrial Accident Compensation Insurance (hereinafter referred to as “the Insurance Premium Collection Act”)

Article 5 (Definition)

The terms used in this Act are defined as follows:

1. The term "occupational accident" means any injury, disease, disability or death of an employee which is caused by an occupational reason;

2. The terms "employee", "wage", "average wage", and "ordinary wage" mean such "employee", "wage", "average wage", and "ordinary wage", respectively as defined in the Labor Standards Act: Provided, That where it is deemed difficult to determine a "wage" or "average wage" pursuant to the Labor Standards Act, the amount determined and publicly notified by the Minister of Employment and Labor shall be the relevant "wage" or "average wage";

3. The term "survivor" means a spouse (including a person who is in a de facto marital relationship; the same shall apply hereinafter), children, parent, grandchild, grandparent, brother, or sister of the deceased person;

4. The term "cure" means reaching a state in which an injury or disease has been completely cured or there are no further expected effects of treatment with its symptoms remaining unchanged;

5. The term "disability" means a state in which an injury or disease has been cured, but the ability to work has been lost or diminished due to mental or physical damage;

6. The term "invalidity" means a state in which the ability to work has been lost or diminished due to mental or physical damage caused by an occupational injury or disease, which remains uncured;

7. The term "pneumoconiosis" means a lung disease, the main symptom of which is fibroplastic proliferation caused by the inhalation of dust particles;

8. The term "commuting" means a movement between a residence and a place of employment or from one place of employment to another place of employment in relation with employment.

Article 6 (Scope of Application)

This Act shall apply to businesses or workplaces employing workers (hereinafter referred to as “businesses”):Provided that this Act shall not apply to the businesses determined in the Presidential Decree in consideration of their hazard rate, size, location, etc.

Enforcement Ordinance

Article 2 (Businesses Excluded from Application of the Act)

(1) “Businesses prescribed by the Presidential Decree” in the proviso of Article 6 of the Industrial Accident Compensation Insurance Act (hereinafter referred to as “the Act”) mean businesses or workplaces (hereinafter referred to as “businesses”) which fall under any of the following subparagraphs:[Amended by Presidential Decree No. 20966, Aug. 7, 2008 and Presidential Decree No. 22101, Mar. 26, 2010]
1. Businesses for which accident compensation is made under the Public Officials’ Pension Act or the Veteran’s Pension Act. Provided, those are exception when regulations on survivors’ benefits for the family of the victim worker who died on duty or in the course of performing dangerous duty are applied , pursuant to Article 60 of the Public Officials Accident Insurance Act.;
2. Businesses for which accident compensation is made under the Seaman Act, the Act on Accident Compensation Insurance for Fishermen and Fishing Boats or the Private School Teachers Pension Act;
3. deleted ;
4. Employment activities within households;
5. deleted ;and
6. Businesses other than incorporations in the fields of agriculture, forestry (excluding the logging industry), fishery and hunting, where the number of workers who are employed ordinarily is less than five.
(2) Unless otherwise provided in this Decree, the scope of the businesses referred to in the subparagraphs of paragraph (1) shall be subject to the Korean Standard Industrial Classification announced publicly by the head of the National Statistical Office under the Statistics Act(hereinafter referred as "the Korean Standard Industrial Classification").
(3) deleted.

Enforcement Ordinance

Article 2-2 (Calculation of Number of Ordinarily Employed Workers and Time of Application)

(1) The number of ordinarily employed workers referred to in Article 2 (1) 6 shall be calculated by dividing the total number of man days used during the fourteen business days from the date the first worker is employed after the commencement of business by fourteen. In this case, if the number of ordinarily employed workers turns out to be less than five, the number of ordinarily employed workers shall be calculated by dividing the total number of man days used during the fourteen business days from the date set by moving backward the date the first worker is employed by one day at a time by fourteen.
(2) Notwithstanding paragraph (1), if the business has been terminated or an occupational accident has occurred within fourteen days of the date the first worker was employed, the number of ordinarily employed workers shall be calculated by dividing the total number of man days used until the date of the incident by the total number of business days.
(3) A business in which the number of ordinarily employed workers calculated pursuant to paragraphs (1) and (2) are five or more shall be deemed to have become a business in which the number of ordinarily employed workers are five or more on the first day of the period during which the number of ordinarily employed workers in the business are five or more.
(4) deleted. [This Article Newly Inserted by Presidential Decree No. 22101, Mar. 26, 2010]

Article 7 (Establishment and Termination of Insurance Relationship)

The establishment and termination of insurance relationships under this Act shall be subject to the provisions of the Insurance Premium Collection Act.
Article 8 (Deliberation Committee on Industrial Accident Compensation Insurance and Prevention)
(1) In order to deliberate important matters concerning industrial accident compensation insurance and prevention, the Deliberation Committee on Industrial Accident Compensation Insurance and Prevention (hereinafter referred to as the “Committee”) shall be established in the Ministry of Employment and Labor. [Amended by Act No. 9794, Oct. 9, 2009 and Act No. 10339, Jun. 4, 2010]
(2) The Committee shall be composed of members representing workers, employers and public interests, but the number of members representing each section shall be equal.
(3) For the purpose of examining the matters to be deliberated, and assisting the deliberation of the Committee, an expert committee may be established in the Committee. [Amended by Act No. 9794, Oct. 9, 2009]
(4) Necessary matters concerning the organization, functions and operation of the Committee and an expert committee shall be prescribed by the Presidential Decree. [Amended by Act No. 9794, Oct. 9, 2009]
[Title of this Article Amended by Act No. 9794, Oct. 9, 2009]

Article 8 (Industrial Accident Compensation Insurance and Prevention Deliberation Committee)

(1) In order to deliberate on important matters concerning industrial accident compensation insurance and the prevention of industrial accidents, there shall be established an Industrial Accident Compensation Insurance and Prevention Deliberation Committee (hereinafter referred to as the "Committee") in the Ministry of Employment and Labor.

(2) The Committee shall be comprised of the same number of members representing employees, employers, and public interest, respectively.

(3) For the purposes of examining matters deliberated by the Committee and assisting in the deliberation procedures thereof, there may be established expert committees in the Committee.

(4) Matters necessary for the organization, functions, and operation of the Committee and the expert committees shall be determined by Presidential Decree.

[Title Amended on Oct. 9, 2009]

Enforcement Ordinance

Article 3 (Functions of Industrial Accident Compensation Insurance and Prevention Deliberation Committee)

The Industrial Accident Compensation Insurance and Prevention Deliberation Committee established in accordance with Article 8 (1) of the Act (hereinafter referred to as the "Committee") shall deliberate on the following:

1. Matters relating to the criteria for calculating medical care benefits under Article 40 (5) of the Act, such as the scope and expenses thereof;

2. Matters relating to the determination of an industrial accident compensation insurance premium rate under Article 14 (3) and (4) of the Act on the Collection of Insurance Premiums, etc. for Employment Insurance and Industrial Accident Compensation Insurance (hereinafter referred to as the "Insurance Premium Collection Act");

3. Matters relating to the establishment of an operational plan for the Industrial Accident Compensation Insurance and Prevention Fund as prescribed in Article 98 of the Act;

4. Major policies relating to occupational safety and health affairs under the subparagraphs of Article 4 (1) of the Occupational Safety and Health Act, and basic plans for the prevention of industrial accidents under Article 7 of the same Act;

5. Other matters referred by the Minister of Employment and Labor to the Committee for deliberation with respect to industrial accident compensation insurance business (hereinafter referred to as "insurance business") and occupational safety and health affairs.

Enforcement Ordinance

Article 4 (Composition of the Committee)

The members of the Committee shall be appointed or commissioned by the Minister of Employment and Labor as follows:[Amended by Presidential Decree No. 22060, Feb. 24, 2010 and Presidential Decree No. 22269, Jul. 12, 2010]
1. Members representing workers shall be five persons who are recommended by labor unions which are a confederation of labor unions;
2. Members representing employers shall be five persons who are recommended by employers’ organizations representing the whole country;and
3. Members representing the public interests shall be five persons, each described in the following items.
A. Vice Minister of Employment and Labor
B. One public official from among senior public officials in charge of industrial accident compensation insurance affairs or industrial accidents prevention affairs in the Ministry of Employment and Labor
C. Three persons among those recommended by citizens’ groups (referring to non-profit private organizations prescribed in Article 2 of the Assistance for Non-Profit Non-Governmental Organizations Act) and those with plenty of academic knowledge or experiences in social insurance and/or industrial accident prevention

Enforcement Ordinance

Article 5 (Term of Office of Members)

(1) The term of office of the members shall be three years and may be renewed:Provided that the term of office of members appointed or commissioned under items A or B of subparagraph 3 of Article 4 shall be their service tenure. [Amended by Presidential Decree No. 22060, Feb. 24, 2010]
(2) The term of any member filling a vacancy shall be the remaining period of his predecessor’s term.
(3) The Minister of Employment and Labor may dismiss a commissioned member if he/she falls under any of the following cases:
1. Where the commissioned member is no longer able to perform his/her duties due to a mental disorder;
2. Where the commissioned member is involved in a wrongdoing in connection with his/her duties;
3. Where the commissioned member is deemed not suitable as a member due to neglect of duties, injury to dignity, or other reasons;
4. Where the commissioned member declares that he/she cannot perform his/her duties.

Enforcement Ordinance

Article 6 (Chairperson and Vice Chairperson)

(1) The Committee shall have a chairperson and a vice chairperson.
(2) The chairperson shall be the Vice Minister of Employment and Labor, and the vice chairperson shall be elected by the Committee from among the members representing the public interest. [Amended by Presidential Decree No. 22269, Jul. 12, 2010]
(3) The chairperson shall represent the Committee, and take general control over the affairs of the Committee.
(4) The vice chairperson shall assist the chairperson, and if the chairperson cannot perform his/her duties for inevitable reasons, he/she shall act for the chairperson.

Enforcement Ordinance

Article 7 (Meeting of Committee)

(1) The chairperson shall convene a meeting of the Committee, and preside at it.
(2) A meeting of the Committee shall be convened at the request of the Minister of Employment and Labor or a majority of all the members. [Amended by Presidential Decree No. 22269, Jul. 12, 2010]
(3) A meeting of the Committee shall be held with the attendance of a majority of all the members, and make a decision with the approval of a majority of the members present.

Enforcement Ordinance

Article 8 (Expert Committees)

(1) An industrial accident compensation insurance policy expert committee, an industrial accident compensation insurance-related medical care expert committee, and an occupational safety and health expert committee shall be set up in the Committee pursuant to Article 8 (3) of the Act. [Amended by Presidential Decree No. 22060, Feb. 24, 2010]
(2) Expert committees of paragraph (1) shall review matters of the respective subparagraph as below and report the results to the Committee, upon orders from the Committee chairperson. [Amended by Presidential Decree No. 22060, Feb. 24, 2010]
1. Industrial accident compensation insurance policy expert committee:matters concerning finances, application, collection, benefits and rehabilitation, and welfare for industrial accident compensation insurance
2. Industrial accident compensation insurance-related medical care expert committee:matters concerning criteria and eligibility for medical carebenefits including scope and amount, and management of medical care
3. Occupational safety and health expert committee:matters concerning key policies and institutional improvements with respect to occupational safety and health
(3) Each expert committee shall be composed of less than 25 non-standing members.
(4) The members of the industrial accident compensation insurance policy expert committee shall be commissioned by the chairperson from among those falling under any of the following subparagraphs:[Amended by Presidential Decree No. 22060, Feb. 24, 2010 and Presidential Decree No. 22269, Jul. 12, 2010]
1. General public officials of Grade IV or higher in charge of industrial accident compensation insurance affairs in the Ministry of Employment and Labor;
2. Persons recommended by labor unions which are a confederation of labor unions or nationwide employers’ organizations;and
3. Persons with plenty of academic knowledge or experience in the finances, application, collection, benefits, etc. of social insurance.
(5) The members of the industrial accident compensation insurance-related medical care expert committee shall be commissioned by the chairperson from among those falling under any of the following subparagraphs:[Amended by Presidential Decree No. 22060, Feb. 24, 2010 and Presidential Decree No. 22269, Jul. 12, 2010]
1. General public officials of Grade IV or higher in charge of industrial accident compensation insurance affairs in the Ministry of Employment and Labor;
2. Persons recommended by labor unions which are a confederation of labor unions or nationwide employers’ organizations;and
3. Persons with plenty of medical knowledge and experience in each professional field, such as industrial medicine.
(6) The member of the occupational safety and health expert committee shall be commissioned by the chairperson from among those falling under any of the following subparagraphs:[Newly Inserted by Presidential Decree No. 22060, Feb. 24, 2010 and Amended by Presidential Decree No. 22269, Jul. 12, 2010]
1. General public officials of Grade IV or higher in charge of occupational safety and health affairs in the Ministry of Employment and Labor;
2. Persons recommended by labor unions which are a confederation of labor unions or nationwide employers’ organizations;and
3. Persons with plenty of knowledge and experience in occupational safety and health.
(7) The chairperson may dismiss a member commissioned pursuant to paragraphs (4) through (6), if the member falls under any of the subparagraphs of Article 5 (3).
(8) The composition and operation of the expert committees and other necessary matters shall be determined by the chairperson after resolution of the Committee. [Amended by Presidential Decree No. 22060, Feb. 24, 2010]

Enforcement Ordinance

Article 8-2 (Investigation and Research Members)

(1) In order to investigate and/or research matters concerning industrial accident compensation insurance and industrial accident prevention, the Committee can employ not more than two investigators and/or researchers in each field of industrial accident compensation insurance, industrial safety engineering, machine safety, electrical safety, chemical engineering safety, construction safety, civil engineering safety, occupational medicine, occupational health nursing, industrial hygiene, ergonomics, hazardous materials management, safety and health related regulations and/or industrial accident statistics, and other necessary areas.
(2) The Minister of Employment and Labor shall appoint investigators and/or researchers from among persons with plenty of pertinent knowledge and experience in each professional field. [Amended by Presidential Decree No. 22269, Jul. 12, 2010]
[This Article Newly Inserted by Presidential Decree No. 22060, Feb. 24, 2010]

Enforcement Ordinance

Article 8-3 (Cooperation by Relevant Administrative Agencies, Etc.)

The Committee and expert committees under Article 8, when deemed necessary for deliberation of certain matters, can request pertinent administrative agencies or organizations to submit relevant materials and documents, or can hear the opinions of relevant public officials and/or experts, etc. by requesting their attendance.
[This Article Newly Inserted by Presidential Decree No. 22060, Feb. 24, 2010]

Enforcement Ordinance

Article 9 (Executive Secretary of Committee)

(1) The Committee shall have an executive secretary for the management of its affairs.
(2) The executive secretary shall be appointed by the Minister of Employment and Labor from among public officials under his/her control. [Amended by Presidential Decree No. 22269, Jul. 12, 2010]

Enforcement Ordinance

Article 10 (Allowances of Member)

Members of the Committee or the expert committee, who attend a meeting of the Committee or the expert committee may be paid allowances within the limits of the budget:Provided that this shall not apply in case members who are a public official attend the committee concerning work directly related to their duties.
Enforcement Ordinance
Article 11 (Operational Regulations)
Except as provided in this Act, matters necessary for the operation of the Committee shall be determined by the chairperson after resolution of the Committee.

Enforcement Ordinance

Article 11 (Operational Regulations)

Except as provided in this Act, matters necessary for the operation of the Committee shall be determined by the chairperson after resolution of the Committee.

Article 9 (Survey and Research on Insurance Activities)

(1) The Minister of Employment and Labor may conduct a survey or research in order to effectively manage and operate insurance activities. [Amended by Act No. 10339, Jun. 4, 2010]
(2) The Minister of Employment and Labor may, if deemed necessary, have some of the works referred to in paragraph (1) conducted by those prescribed in the Presidential Decree. [Amended by Act No. 10339, Jun. 4, 2010]

Enforcement Ordinance

Article 12 (Vicarious Implementation of Survey and Research Projects)

The Minister of Employment and Labor, pursuant to Article 9 (2) of the Act, may have a research institution established in accordance with Article 8 of the Act on the Establishment, Operation and Fosterage of Government- Invested Research Institutions, etc., carry out part of survey and research projects concerning industrial accident compensation insurance affairs. In this case, when selecting the research institution, the institution’s research staff and performance records regarding industrial accident compensation insurance affairs shall be considered. [Amended by Presidential Decree No. 22269, Jul. 12, 2010]

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

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