Article 10 (Establishment of Korea Workers’ Compensation & Welfare Service)

In order to efficiently carry out activities aimed at attaining the purpose prescribed in Article 1 under the entrustment of the Minister of Employment and Labor, the Korea Workers’ Compensation & Welfare Service (hereinafter referred to as the “Corporation”) shall be established. [Amended by Act No. 10339, Jun. 4, 2010]

Article 11 (Activities of Corporation)

(1) The Corporation shall carry out the activities described in any of the following subparagraphs：[Amended by Act No. 9988, Jan. 27, 2010 and Act No. 13045, Jan. 20, 2015]
1. Management and maintenance of records on insurance subscribers and entitled beneficiaries；
2. Collection of premiums and other charges under the Insurance Premium Collection Act；
3. Decision on and payment of insurance benefits；
4. Review and decision on a request for examination on decisions, etc., of insurance benefits；
5. Establishment and operation of industrial accident compensation insurance facilities；
5-2. Medical care and rehabilitation for workers, etc., who have a work-related accident；
5-3. Research and development, testing and supply of rehabilitation equipment and assistive devices；
5-4. Research on occupational disease for disclosure of insurance benefit and payment thereof
5-5. Prevention programs including a medical examination necessary to maintain and improve employees’ health, etc.
6. Activities aimed at improving the welfare of workers；
7. Other activities entrusted by the Government；
8. Activities incidental to those as referred to in subparagraphs 5, 5-2, 5-3, 6 and 7.
(2) The Service may establish and operate medical institutions, research institutes, etc. to carry out projects referred to in paragraph (1) 5-2, 5-3, 5-4, and 5-5. [Newly Inserted by Act No. 9988, Jan. 27, 2010 and Amended by Act No. 13045, Jan. 20, 2015]
(3) In order to give advice necessary for carrying out the activities under paragraph (1) 3, an insurance benefit advisory committee composed of relevant experts may be set up in the Corporation. [Amended by Act No. 9988, Jan. 27, 2010]
(4) Necessary matters concerning the composition and operation of the insurance benefit advisory committee under paragraph (3) shall be determined by the Corporation. [Amended by Act No. 9988, Jan. 27, 2010]
(5) Government may make an contribution for the necessary matters regarding the business management and operation of the Service. [Newly Inserted by Act No. 13045, Jan. 20, 2015]

Article 12 (Legal Personality)

The Corporation shall be a juristic person.

Article 13 (Office)

(1) The location of the principal office of the Corporation shall be prescribed by its bylaws.
(2) The Corporation may, if necessary, establish a branch office under the conditions as prescribed by its bylaws.

Article 14 (Bylaws)

(1) The bylaws of the Corporation shall include the matters described in any of the following subparagraphs：
1. Objectives；
2. Title；
3. Matters concerning its principal and branch offices；
4. Matters concerning its officers and employees；
5. Matters concerning its board of directors；
6. Matters concerning its activities；
7. Matters concerning its budget and settlement of accounts；
8. Matters concerning its assets and accounting；
9. Matters concerning changes in its bylaws；
10. Matters concerning the enactment, revision and repeal of its internal regulations；
11. Matters concerning public notice.
(2) The bylaws of the Corporation shall be authorized by the Minister of Employment and Labor. This provision shall also apply in case where it is intended to modify them. [Amended by Act No. 10339, Jun. 4, 2010]

Article 15 (Registration of Establishment)

The Corporation shall come into existence by registering its establishment in the area where its principal office is located.

Article 16 (Officers)

(1) The officers of the Corporation shall be fifteen or less directors, including a president and four standing directors, and an auditor. [Amended by Act No. 9988, Jan. 27, 2010]
(2) The appointment and removal of the president, standing directors and auditor shall be subject to Article 26 of the Act on the Management of Public Institutions. [Amended by Act No. 9988, Jan. 27, 2010]
(3) Non-standing directors (excluding those appointed as ex-officio non-standing directors pursuant to paragraph (4)) shall be appointed by the Minister of Employment and Labor from among those who fall under any of the following subparagraphs pursuant to Article 26 (3) of the Act on the Management of Public Institutions. In this case, the number of non-standing directors falling under subparagraphs 1 and 2 shall be equal unless no person is recommended by either the labor union or the employers’ organization：[Newly Inserted by Act No. 9988, Jan. 27, 2010, and Amended by Act No. 10305, May 20, 2010 and Act No. 10339, Jun. 4, 2010]
1. A person recommended by a labor union which is a confederation；
2. A person recommended by an employers’ organization with nationwide representation；
3. A person with plenty of knowledge and experience in social insurance or labor welfare projects, who is recommended by the executive recommendation committee under Article 29 of the Management of Public Institutions.
(4) Those who shall be appointed as ex-officio non-standing directors are described in the following subpargraphs：[Newly Inserted by Act No. 9988, Jan. 27, 2010, and Amended by Act No. 10339, Jun. 4, 2010]
1. One person designated by the Minister of Strategy and Finance from among public officials of Grade III in charge of budget for the Corporation in the Minister of Strategy and Finance or general public officials belonging to the Senior Civil Service；
2. One person designated by the Minister of Employment and Labor from among public officials of grade III in charge of the work of industrial accident compensation insurance in the Ministry of Employment and Labor or general public officials belonging to the Senior Civil Service.
(5) The non-standing directors shall not be paid any remuneration：Provided that they may be paid the actual expenses needed for performing their duties. [Amended by Act No. 9988, Jan. 27, 2010]

Article 17 (Term of Office for Officers)

The president shall serve for a term of three years and the directors and auditor for a term of two years, which may be renewed for one year at a time. [Amended by Act No. 9988, Jan. 27, 2010]

Article 18 (Duties of Executive Officers)

(1) The president shall represent the Service and exercise general supervision over its affairs.

(2) The standing directors shall take partial charge of the Service's affairs as prescribed by the articles of incorporation, and, when the president is unable to perform his or her duties due to any unavoidable reason, they shall act on behalf of him or her in such order as determined by the articles of incorporation.

(3) The auditor shall audit affairs and accounts of the Service.

Article 19 (Grounds for Disqualification and Compulsory Resignation of Officers)

A person who falls under any of the following subparagraphs shall not be able to become an officer of the Corporation：
1. A person who falls within the grounds for disqualification prescribed in each subparagraph of Article 33 of the State Public Official Act；
2. A person who falls under Article 34 (1) 2 of the Act on the Management of Public Institutions.
[This Article Wholly Amended by Act No. 9988, Jan. 27, 2010]

Article 20 (Removal of Officers)

The removal of an officer shall be subject to Articles 22 (1), 31 (6), 35 (2) and (3), 36 (2) and 48 (4) and (8) of the Act on the Management of Public Institutions.
[This Article Wholly Amended by Act No. 9988, Jan. 27, 2010]

Article 21 (Restriction on Holding Concurrent Offices by Executive Officers or Employees)

(1) No standing officer or employee of the Service shall engage in any profit-making business, other than within the scope of their duties.

(2) Where any standing officer receives permission from the person who holds the power to appoint or recommend him or her under Article 26 of the Act on the Management of Public Institutions and where any employee who receives permission from the president, such standing officer or employee may concurrently hold a post in a non-profit business.

(3) No incumbent or former executive officer or employee of the Service shall divulge confidential information that they have learned in the course of performing their duties.

Article 22 (Board of Directors)

(1) In order to deliberate and decide on the matters prescribed in each subparagraph of Article 17 (1) of the Act on the Management of Public Institutions, the board of directors shall be set up.
(2) The board of directors shall be composed of directors including the president.
(3) The president shall chair the board of directors.
(4) The board of directors shall be convened at the request of its chair or one third or more of the current directors, and make a decision with the approval of a majority of the current directors.
(5) The auditor may attend a meeting of the board of directors and state his/her opinions.
[This Article Wholly Amended by Act No. 9988, Jan. 27, 2010]

Article 23 (Appointment and Dismissal of Employees and Selection of Representative)

(1) The chairman shall appoint and dismiss employees of the Corporation under the conditions as prescribed by its bylaws.
(2) The chairman may select a representative who has the authority to conduct any judicial or extra judicial act related to affairs of the Corporation, from among the employees, under the conditions as prescribed by the bylaws.

Article 24 (Fiction as Public Official in Application of Penal Provisions)

The officers and employees of the Corporation shall be considered as public officials in applying penal provisions pursuant to Articles 129 through 132 of the Criminal Act.

Article 25 (Direction and Control of Affairs)

(1) The Service shall obtain the approval of the Minister of Employment and Labor on its operational plan and budget for each fiscal year, as prescribed by Presidential Decree.

(2) The Service shall report the actual results of business and the settlement of accounts to the Minister of Employment and Labor within two months from the end of each fiscal year.

(3) The Minister of Employment and Labor may order the Service to report on its business, or inspect the state of its projects or property, and if deemed necessary, may take supervisory measures, such as instructing to amend its articles of incorporation.

Enforcement Ordinance

Enforcement Ordinance

Enforcement Ordinance

Article 26 (Accounting of Corporation)

(1) The fiscal year of the Corporation shall be the same as that of the Government.
(2) The Corporation shall account for insurance activities separately from its other activities.
(3) The Corporation shall set accounting rules with the approval of the Minister of Employment and Labor. [Amended by Act No. 10339, Jun. 4, 2010]

Article 26-2 (Income of the Corporation)

Income of the Corporation is as follows:
1. Contributions or donations from the Government or persons other than the Government;
2. Income and incidental income from activities of the Corporation under Article 11;
3. Funds borrowed and brought for supplementation under Article 27;
4. Surpluses under Article 28;
5. Other income.

Article 27 (Borrowing, etc. of Funds)

(1) If it is required for the activities prescribed in Article 11, the Corporation may borrow funds (including borrowing from international organizations, foreign governments or foreigners) with the approval of the Minister of Employment and Labor. [Amended by Act No. 10339, Jun. 4, 2010]
(2) If the expenditure exceeds the revenue in connection with insurance activities for each fiscal year, the Corporation may bring in funds from the Industrial Accident Compensation Insurance and Prevention Fund under Article 95 with the approval of the Minister of Employment and Labor, within the limits of the legal liability reserve prescribed in Article 99, to finance the shortfall. [Amended by Act No. 10339, Jun. 4, 2010]

Enforcement Ordinance

Article 29 (Delegation and Entrustment of Authority or Work)

(1) The authority of the president of the Corporation under this Act may be partially delegated to the head of its branch office (hereinafter referred to as “affiliate organization”) under the conditions prescribed in the Presidential Decree.
(2) The work of the Corporation under this Act may be partially entrusted to a postal service agency or financial institution under the conditions prescribed in the Presidential Decree.

Enforcement Ordinance

Enforcement Ordinance

Article 30 (Collection of Fees, etc.)

With respect to the activities prescribed in Article 11, the Corporation may have beneficiaries pay the expenses needed for its activities, such as charges for the use of the Corporation’s facilities, fees for the entrustment of affairs, etc., with the approval of the Minister of Employment and Labor. [Amended by Act No. 10339, Jun. 4, 2010]

Article 31 (Request for Provision of Materials)

(1) The Service may, if necessary for the efficient performance of the insurance business, request any relevant administrative agency, such as the Korea Disease Control and Prevention Agency, the National Tax Service and a local government, or any institution, organization, etc. related to the insurance business to provide necessary materials.

(2) No relevant administrative agency, institution, organization, etc. which is requested to provide materials under paragraph (1) may refuse such request without good cause.

(3) Fees or usage fees shall be exempted for the materials provided to the Service pursuant to paragraph (1).

Article 31-2 (Data Matching of Computerized Information on Family Relationship Registration)

To process the following affairs, the Service may perform data matching (including the processing defined in subparagraph 2 of Article 2 of the Personal Information Protection Act) of computerized information data referred to in Article 9 (1) of the Act on the Registration of Family Relationships according to the Electronic Government Act:

1. Verification of the survival of the a beneficiary of medical care benefits referred to in Article 40;

2. Verification of the survival of a beneficiary of temporary layoff benefits referred to in Article 52;

3. Verification of the survival of a beneficiary of disability benefits referred to in Article 57;

4. Verification of the survival of a beneficiary of nursing benefits referred to in Article 61;

5. Verifying the eligibility of a beneficiary of survivors' benefits referred to in Article 62;

6. Verifying the survival of a beneficiary of injury and disease compensation pension referred to in Article 66;

7. Verification of the survival of a beneficiary of vocational rehabilitation benefits referred to in Article 72;

8. Verification as to whether a person is a survivor of a beneficiary to the payments of unpaid insurance benefits referred to in Article 81;

9. Verification of the survival of a beneficiary of pneumoconiosis compensation annuities referred to in Article 91-3 and of the eligibility for pneumoconiosis survivors’ annuities referred to in Article 91-4;

(2) Where the Service requests data matching of computerized information data under paragraph (1), the Minister of the National Court Administration shall take measures necessary for data matching.

(3) No one shall use or utilize computerized information data subject to data matching under paragraph (1) for any purpose other than intended.

[This Article Newly Inserted on Jan. 26, 2021]

Article 32 (Investment, etc.)

(1) The Service may, if necessary for the efficient performance of its business, make an investment in or contribution to projects pursuant to Article 11 (1) 5, 5-2, 5-3, 5-4, 5-5, 6 and 7. [Amended by Act No. 9988, Jan. 27, 2010 and Act No. 13045, Jan. 20, 2015]
(2) Necessary matters concerning the investment and contribution referred to in paragraphs (1) shall be prescribed by the Presidential Decree.

Enforcement Ordinance

Article 33 Deleted. [Act No. 9988, Jan. 27, 2010]

Article 34 (Prohibition of Use of Similar Title)

No person other than the Corporation shall use as his/her title the Korea Workers’ Compensation & Welfare Service or any similar term thereto.
[This Article Wholly Amended by Act No. 9988, Jan. 27, 2010]

Article 35 (Mutatis Mutandis Application of Civil Act)

Except as otherwise provided in this Act and the Act on the Management of Public Institutions, the provisions of the Civil Act concerning foundations shall apply mutatis mutandis with regard to the Corporation. [Amended by Act No. 9988, Jan. 27, 2010]