EMPLOYMENT INSURANCE ACT [See entire ACT]

CHAPTER Ⅲ Employment Security and Vocational Skills Development Projects

Article 19 (Implementation of Employment Security and Vocational Skills Development Programs)

(1) The Minister of Employment and Labor shall implement programs for employment security and vocational skills development to prevent unemployment, promote employment, increase employment opportunities, provide opportunities to develop and improve vocational skills and assistance therefor, and otherwise improve employment security for the benefit of employees who are or were insured or persons who have intention to find jobs (hereinafter referred to as "insured employees, etc.") and to provide assistance for securing workforce for the benefit of business owners.

(2) In implementing such programs for employment security and vocational skills development prescribed in paragraph (1), the Minister of Employment and Labor shall give priority to enterprises (hereinafter referred to as "enterprise eligible for priority support") that satisfy the standards prescribed by Presidential Decree, such as requirements for the number of employees and actions taken and outcomes achieved for employment security and vocational skills development.

Enforcement Ordinance

Article 12 (Scope of Preferentially Supported Enterprises)

(1) Enterprises which meet the criteria set forth by the Presidential Decree under Article 19 (2) refer to those (hereinafter referred to as “preferentially supported enterprises”) for which the number of workers by industry falls under any of the following subparagraphs:[Amended by Presidential Decree No. 21348, Mar. 12, 2009 and Presidential Decree No. 24155, Oct. 29, 2012]
1. Deleted. [Presidential Decree No. 24155, Oct. 29, 2012]
2. Deleted. [Presidential Decree No. 24155, Oct. 29, 2012]
3. Deleted. [Presidential Decree No. 24155, Oct. 29, 2012]
4. Deleted. [Presidential Decree No. 24155, Oct. 29, 2012]
5. Deleted. [Presidential Decree No. 24155, Oct. 29, 2012]
(2) An enterprise which does not fall under any of the subparagraphs of paragraph (1) and which meets the standards referred to in Article 2 (1) and (3) of the Framework Act on Small and Medium Enterprises shall, notwithstanding the provisions of paragraph (1), be regarded as a preferentially supported enterprise. [Amended by Presidential Decree No. 24155, Oct. 29, 2012]
(3) In cases where a preferentially supported enterprise under paragraph (1) no longer meets the criteria to be a preferentially supported enterprise due to reasons such as expansion of size, etc., it shall be deemed a preferentially supported enterprise for five years from the year following the year the reason occurs. [Newly Inserted by Presidential Decree No. 22603, Dec. 31, 2010 and Amended by Presidential Decree No. 24333, Jan. 25, 2013]
(4) Notwithstanding paragraphs (1) through (3), a company that belongs to the conglomerates designated as those subject to the restrictions on mutual investments pursuant to Article 31 (1) of the Monopoly Regulation and Fair Trade Act shall not be construed as an enterprise eligible for preferential support for the insurance year immediately following the insurance year during which the designation was made, and thereafter.
(5) The standards for determining whether an enterprise is a preferentially supported enterprise under paragraph (1) of this Article are as follows:
1. The number of workers who are ordinarily employed shall be calculated by dividing the total number of workers in all the businesses operated by the employer as of the last day of every month of the previous year (daily workers are excluded in the construction industry), by the number of operating months of the previous year, however, in cases where a business manages collective housing under the Multi-Family Housing Management Act, the number of workers shall be calculated by each business, In this case, when calculating the number of workers who are ordinarily employed, part-time workers whose contractual working hours are 60 or more shall be calculated as 0.5 person, and part-time workers whose contractual working hours are less than 60 shall be excluded;and
2. When an employer operates businesses of two or more industries, the business with larger number of ordinarily employed workers shall be the standard, and if the number of workers is same the basis shall be applied in order of amount of total wage and gross sales.
(6) Notwithstanding paragraph (5), with regard to an employer whose insurance relationship was established during the insurance year, whether his/her business is a preferentially supported enterprise shall be determined on the basis of the starting date of the insurance relationship. [Amended by Presidential Decree No. 22603, Dec. 31, 2010]
[Implemented Jan. 1, 2013]

Article 20 (Support for Employment Creation)

The Minister of Employment and Labor may provide necessary support to employers who have expanded employment opportunities by improving employment environments, changing work arrangements, etc., as prescribed in the Presidential Decree. [Amended by Act No. 10339, Jun. 4, 2010]

Enforcement Ordinance

Article 17 (Support for Employment Creation)

(1) The Minister of Employment and Labor may partially subsidize wages for any of the following business owners pursuant to Article 20 of the Act: Provided, That, in the case of subparagraph 1, he or she may reimburse employees whose working hours have been reduced for a portion of his or her lost wages and some of expenses required for installing facilities, and in the case of subparagraph 2, some of expenses for installing facilities:

1. Where the number of employees increases due to recruitment of unemployed persons by reducing working hours, restructuring work shifts, and providing periodic educational training or sabbatical leave, etc. (hereinafter referred to as "job sharing");

2. Where there is an increase in the number of employees due to the improvement of employment conditions by installing and operating the facilities determined by the Minister of Employment and Labor and recruiting unemployed persons;

3. Where unemployed persons are newly hired on an hourly basis without fixing the term of a labor contract by dividing duties, restructuring a labor system, or developing part-time duties, etc.;

4. Where an enterprise falling under the types of business with good prospects for growth, the types of business in which imbalance between labor supply and demand exists, or the types of business that require employment subsidies including enterprises that have moved operations back to the Republic of Korea and region-specific industries, following deliberations and decisions by the Committee, hires the unemployed;

5. Where an enterprise eligible for preferential support falling under the types of business deliberated and resolved by the Committee hires those with professional qualifications prescribed by the Minister of Employment and Labor (hereinafter referred to as "professional human resources");

6. Where a business owner hires an unemployed youth between 15 and 34 years of age through an introduction of a wage peak system under Article 28, a wage reduction system under Article 28-2,, or any other changes in its wage system;

7. Where the Minister of Employment and Labor newly hires an aged or middle-aged person pursuant to subparagraph 1 or 2 of Article 2 of the Act on Prohibition of Age Discrimination in Employment and Elderly Employment Promotion for a job deemed suitable for such aged or middle-aged person.

(2) In cases of providing subsidies pursuant to paragraph (1), the Minister of Employment and Labor shall determine necessary matters, such as conditions of assistance, scope of eligible business owners, level of assistance, period of assistance, method of application for and payment of subsidies, and other matters necessary for assistance.

[This Article Newly Inserted on Dec. 31, 2010]

[Paragraph (1) 6 of this Article shall be effective until December 31, 2018 pursuant to Article 2 of the Addenda to the Presidential Decree No. 26496 promulgated on August 19, 2015: Provided, That the amended provisions of Article 17 (1) 6 shall apply to subsidies for a business owner who hires unemployed youth through measures, such as the introduction of a wage peak system or other changes in a wage system, in accordance with the amended provisions of Article 17 (1) 6 by December 31, 2018, even after the effective period expires.]

Article 21 (Support for Employment Adjustment)

(1) The Minister of Employment and Labor may, as prescribed by Presidential Decree, provide necessary assistance to a business owner who finds it inevitable to adjust employment due to downsizing, closing, or conversion of his or her business following changes in business conditions or industrial structures or other similar circumstances, when he or she makes efforts to improve employment security, such as business suspension, layoff, manpower relocation, and vocational skills development training for career changes. In such case, where the wage (referring to the wage defined in Article 2 (1) 5 of the Labor Standards Act; hereinafter the same shall apply) of an employee decreases to the level prescribed by Presidential Decree following measures to improve employment security including business suspension and layoff, the Minister of Employment and Labor may provide necessary assistance to the employee, as prescribed by Presidential Decree.

(2) The Minister of Employment and Labor may, as prescribed by Presidential Decree, provide necessary assistance to a business owner who employs an employee who has left his or her job due to the employment adjustment made under paragraph (1) or otherwise improves employment security for employees whose employment has become precarious.

(3) In providing assistance, as prescribed in paragraph (1), the Minister of Employment and Labor may give priority to business owners or employees operating or working in an industry or area described in Article 32 of the Framework Act on Employment Policy.

Enforcement Ordinance

Article 18 (Support Measures, etc. for Employment Adjustment)

(1) A business owner who takes measures for employment security of employees shall be eligible for subsidies and incentives under Article 21 (1) and (2) of the Act.

(2) A business owner eligible for the preferential support as prescribed in Article 21 (3) of the Act shall be any of the following business owners:

1. A business owner who engages in the type of business designated as one of the types of business for which assistance for employment adjustment, etc. is required pursuant to Article 29 (1) 1 of the Enforcement Decree of the Framework Act on Employment Policy (hereafter referred to as "designated type of business" in this Article);

2. A business owner who engages in manufacturing, repair, and other works under a contract with a business owner, as prescribed in subparagraph 1 for a project that falls under a designated type of business and at least 1/2 of whose sales are related to the designated type of business;

3. A business owner who engages in business within an area designated as an area for which assistance for employment adjustment is required pursuant to Article 29 (1) 2 or 3 of the Enforcement Decree of the Framework Act on Employment Policy (hereinafter referred to as "designated area").

(3) Where a business owner falling under any subparagraph of paragraph (2) takes measures for retaining employees, or grants assistance for change of occupation, the Minister of Employment and Labor may prescribe different requirements for and the amount of assistance applicable to such business owner, after deliberation by the Employment Policy Deliberative Council under the Framework Act on Employment Policy (hereinafter referred to as the "Employment Policy Council"), notwithstanding Articles 19, 20, 20-2, 21, 21-2 through 21-4, and 22.

Enforcement Ordinance

Article 19 (Those Entitled to Employment Retention Subsidy)

(1) The Minister of Employment and Labor shall, pursuant to Article 21 (1) of the Act, grant subsidies to retain employees (hereinafter referred to as "subsidies for employee retention") to a business owner, where the business owner that finds it unavoidable to make adjustments in employment takes any of the following measures (hereinafter referred to as "measures for retaining employees") for insured employees recruited to engage in a task carried out by him or her (excluding daily hire employees, persons notified of dismissal in advance under Article 26 of the Labor Standards Act, and those scheduled to retire upon the business owner's recommendation due to worsening management conditions; hereafter the same shall apply in this Chapter) and where he or she does not sever the employment relationship with insured employees through employment adjustment during the period for which the measures for retaining employees are taken and one month thereafter:

1. Where the business owner reduces working hours in excess of 20/100 of the total working hours per calendar month of all insured employees by adjusting working hours, restructuring work shifts (referring to dividing employees into groups and having them work in shift; hereinafter the same shall apply), suspending business, or taking other measures, and pays money and valuables in order to compensate for lost wages due to reduced work hours. In such cases, necessary matters concerning the method of calculating the working hours, including the total working hours of all insured employees, etc., shall be prescribed by Ordinance of the Ministry of Employment and Labor;

2. Deleted.

3. Where the business owner lays off employees for a period of at least one month;

4. Deleted.

5. Deleted;

(2) Where a business owner newly employs an employee while taking the measures for retaining employees, as prescribed in paragraph (1), or implements measures for retaining employees in the same month for three consecutive years notwithstanding paragraph (1), no subsidies for employee retention shall be paid for the relevant month, except in cases deemed unavoidable by the head of the competent employment security office.

(3) Deleted.

Enforcement Ordinance

Article 20 (Establishment and Implementation of Plans for Employment Retention Measures)

(1) A business owner who intends to receive subsidies for employee retention prescribed in Article 19 shall prepare plans for retaining employees for each calendar month in compliance with the following requirements, as prescribed by Ordinance of the Ministry of Employment and Labor, and report it to the Minister of Employment and Labor by the day before the date of a scheduled implementation of such measures, and where he or she modifies matters prescribed by Ordinance of the Ministry of Employment and Labor in the reported plan, such as the scheduled implementation date, the persons subject to such measures, and money and valuables to be paid while such measures are taken, he or she shall report such modifications to the Minister of Employment and Labor by the day before the scheduled modification date:

1. The business owner shall consult with the representative of employees recruited to engage in the business in preparing or modifying measures for retaining employees: Provided, That cases where detailed plans measures for retaining employees to be modified are not unfavorable to employees, such as reduction of period during which measures for retaining employees are taken or reduction in the number of people eligible to remain employed in order to restore employment conditions back to the level seen before business deterioration, shall be excluded herefrom;

2. The business owner shall prepare a document that describes the detailed implementation plans for retaining employees for the previous month (excluding the month to which the first date of implementation of the measures for retaining employees belongs) and related evidentiary documents.

(2) Notwithstanding paragraph (1), if any unavoidable cause or event prescribed by Ordinance of the Ministry of Employment and Labor, such as delay in the process of labor-management consultation, exists, such report may be filed within three days from the date the measures for retaining employees are taken or the date of revision of such plan (within 20 days, where the business owner operating in an area declared as a special disaster area pursuant to Article 60 of the Framework Act on the Management of Disasters and Safety takes measures for retaining employees due to such special disaster).

(3) Deleted.

(4) Deleted.

(5) Deleted.

[Title Amended on Aug. 22, 2013]

Enforcement Ordinance

Article 20-2 (Withdrawal of Support for Violation of Plans for Employment Retention Measures)

The Minister of Employment and Labor may choose to not pay all or part of the employment retention subsidy for the month in which the relevant employer implements different employment retention measures than those reported or changed pursuant to Article 20 (1).
[This Article Newly Inserted by Presidential Decree No. 24514, Apr. 22, 2013]

Enforcement Ordinance

Article 21 (Amount of Subsidies for Employee Retention)

(1) The amount of subsidies for employee retention shall be each of the following amounts: Provided, That when the Minister of Employment and Labor deems it necessary for employment security due to worsening unemployment, such as a rapid increase in the unemployment rate, the amount shall be equivalent to the rate determined and publicly notified by the Minister of Employment and Labor of at least 3/4 and not more than 9/10 [2/3 for an enterprise other than those eligible for preferential support (hereinafter referred to as “large enterprise”)] of the money and valuables provided by the business owner to compensate for the lost wage of the insured employees for a period of up to one year prescribed and publicly notified by the Minister of Employment and Labor:

1. Where the working hours reduced due to the adjustment of working hours, the restructuring of work shifts, suspension of business, layoff, etc. are less than 50/100 of working hours per calendar month: An amount equivalent to 2/3 (1/2 for a large enterprise) of the money and valuables provided by the business owner to compensate for the lost wages of the insured employees whose working hours are reduced or who are laid off;

2. Where the working hours reduced due to the adjustment of working hours, the restructuring of work shifts, suspension of business, layoff, etc. are at least 50/100 of working hours per calendar month: An amount equivalent to 2/3 of the money and valuables provided by the business owner to compensate for the lost wages of the insured employees whose working hours are reduced or who are laid off.

(2) Subsidies for retaining employees prescribed in paragraph (1) shall be granted for each measure taken to retain employees only until the number of days during which such measure is taken (the day on which two or more measures are taken simultaneously for retaining employees shall be counted as one day) reaches 180 days during the term of the pertinent insurance year.

(3) Deleted.

(4) Deleted.

(5) Subsidies for employee retention granted pursuant to paragraph (1) shall not exceed the amount determined and publicly notified by the Minister of Employment and Labor per employee subject to each measure for retaining employees taken.

[Title Amended on Aug. 22, 2013]

Enforcement Ordinance

Article 21-2 (Extent of Reduction of Wage according to Business Suspension, etc.)

“Certain level prescribed by Presidential Decree” in the latter part of Article 21 (1) of the Act refers to amounts under 50/100 of average wages (including cases where no wages are paid).
[This Article Newly Inserted by Presidential Decree No. 24514, Apr. 22, 2013]

Enforcement Ordinance

Article 21-3 (Requirements for Granting Subsidies to Insured Employees in Cases of Business Suspension)

(1) When a business owner suspends business or lays off employees (hereinafter referred to as "business suspension, etc.") instead of making employment adjustment in spite of unavoidable causes for making such adjustment prescribed by Ordinance of the Ministry of Employment and Labor pursuant to the latter part of Article 21 (1) of the Act, if such suspension of business, etc. falls under any of the following, the Minister of Employment and Labor may grant subsidies to the relevant insured employee:

1. Where a business owner suspends business for at least 30 days for the number of the insured employees under classification made in each of the following circumstances and does not pay business suspension allowances after obtaining approval of the Labor Relations Commission pursuant to Article 46 (2) of the Labor Standards Act, or pays business suspension allowances equivalent to the amount less than 50/100 of the average wage:

(a) Where the total number of the insured employees is not more than 19: At least 50/100 of the total number of the insured employees;

(b) Where the total number of the insured employees is at least 20 and not more than 99: At least 10 insured employees;

(c) Where the total number of the insured employees is at least 100 and not more than 999: At least 10/100 of the total number of the insured employees;

(d) Where the total number of the insured employees is at least 1,000: At least 100 insured employees;

2. Where a business owner lays off the number of the insured employees as classified in the following circumstances for at least 90 days after implementing measures for retaining employees pursuant to Article 19 (1) 1 for at least three months within one year before the commencement of layoff, and does not pay money and valuables during that period by mutual consent with the representative of the employees (referring to the labor union if there exists a labor union consisting of more than a half of the total employees, and the one who represents more than a half of the total employees if such labor union does not exist):

(a) Where the total number of the insured employees is not more than 99: At least 10 insured employees;

(b) Where the total number of the insured employees is at least 100 and not more than 999: At least 10/100 of the total number of the insured employees;

(c) Where the total number of the insured employees is at least 1,000: At least 100 insured employees.

(2) The amount of the subsidies prescribed in paragraph (1) shall be determined by the Minister of Employment and Labor within the range of 50/100 of the average wage of the relevant insured employee, taking into account the wages or allowances paid by the business owner to the said insured employee. In such cases, the amount of subsidies shall not exceed the amount determined and publicly announced by the Minister of Employment and Labor per insured employee eligible for subsidies for such reasons as business suspension, etc.

(3) The subsidies prescribed in paragraph (2) shall be paid for maximum 180 days during the period of the relevant business suspension, etc.

(4) Where the Minister of Employment and Labor provides the insured employees with subsidies pursuant to paragraph (1), the business owner shall prepare a plan for retaining employees that includes necessary measures for the development and improvement of vocational skills of the recipient and submit the plan to the Minister of Employment and Labor.

(5) Where emergency measures are necessary for job security as disasters prescribed in subparagraph 1 of Article 3 of the Framework Act on the Management of Disasters and Safety took a heavy toll on the economy, resulting in soaring unemployment, subsidies may be paid to the insured employees who fail to meet the eligibility requirements for subsidies under paragragh (1) 2 until June 30, 2021 following deliberation by the Employment Policy Council with the requirements for and the level of subsidization determined by public notice. In such cases, a period of subsidization by public notice shall not exceed six months, and may be extended by up to six months where necessary.

(6) Necessary matters concerning the methods and procedures of applying for subsidies and the methods of payment of subsidies for insured employees following business suspension, etc., other than the matters prescribed in paragraphs (1) through (5), shall be determined and publicly notified by the Minister of Employment and Labor.

[This Article Newly Inserted on Apr. 22, 2013]

Enforcement Ordinance

Article 22 (Support for Reemployment such as Persons Due to Leave Job etc.)

Where a business owner facing an inevitable employment adjustment pursuant to Article 21 (1) of the Act directly establishes facilities necessary for supporting swift re-employment of any of the following persons, independently or collaboratively, or entrusts an outside institution equipped with such facilities with services necessary for such re-employment, the Minister of Employment and Labor shall, pursuant to Article 21 (1) of the Act, subsidize some of the expenses incurred by the business owner, as determined by the Minister of Employment and Labor:

1. Insured employees who have been employed by the relevant business but whose employment will be severed due to employment adjustment, retirement age, or expiration of the term of employment contract;

2. Persons who had been insured and employed by the relevant business but whose employment was severed due to employment adjustment, retirement age, or expiration of the term of employment contract.

[This Article Wholly Amended on Dec. 31, 2010]

Article 22 (Promotion of Local Employment)

The Minister of Employment and Labor may provide necessary support to employers who move their businesses to, or begin or expand businesses in regions where employment opportunities are obviously insufficient or employment situations are rapidly deteriorating due to changes in industrial structure, etc., thereby contributing to the prevention of unemployment and promotion of reemployment and to employers who take necessary measures to expand local employment opportunities, as prescribed by the Presidential Decree. [Amended by Act No. 10339, Jun. 4, 2010]

Enforcement Ordinance

Article 24 (Subsidy for Promotion of Local Employment)

(1) The Minister of Employment and Labor shall grant subsidies for promotion of local employment to a business owner who relocates his or her business to a designated area, establishes a new business or expands an existing business in a designated area as set forth in Article 22 of the Act and who meets all the following requirements:

1. During the period of support for employment adjustment, etc. (hereafter referred to as "designated period" in this Article) as publicly notified pursuant to Article 29 (3) of the Enforcement Decree of the Framework Act on Employment Policy, a local employment plan concerning relocation, establishment, or expansion of business, and employment of employees resulting therefrom shall be prepared and reported to the Minister of Employment and Labor;

2. The business owner shall implement the local employment plan reported to the Minister of Employment and Labor pursuant to subparagraph 1;

3. The operation of the business relocated, newly established, or expanded shall commence within one year and six months from the date the plan for local employment is submitted;

4. The business owner shall employ persons who have resided in the designated area or any other designated area for at least three months as of the date the operation of the business relocated, newly established, or expanded commences (hereafter referred to as "date of commencement of operation" in this Article) as the insured for the relevant business;

5. The business shall be deemed necessary by the Employment Policy Council

6. The business owner shall keep a record of the current status of implementation of the local employment plan and the current status of wages paid to the insured employees while implementing the plan.

(2) Upon the commencement of operation prescribed in paragraph (1) 3, a business owner who intends to receive subsidies for promotion of local employment shall report such fact to the Minister of Employment and Labor.

(3) The amount of subsidies for promotion of local employment shall be equivalent to 1/2 (or 1/3 for a large enterprise) of the wages paid to the insured employees employed under paragraph (1) 4, and shall not exceed the amount publicly notified by the Minister of Employment and Labor as set forth in Article 21 (5).

(4) Subsidies for promotion of local employment shall be paid for up to one year from the date of commencement of operation.

(5) Where the number of insured employees employed pursuant to paragraph (1) 4 during a designated period exceeds 200 persons, subsidies for promotion of local employment shall be granted only for 30/100 out of the number of persons in excess thereof.

(6) No subsidies for promotion of local employment shall be paid under any of the following cases:

1. Where the employment period of the insured employees who are employed pursuant to paragraph (1) 4 is less than six months;

2. Where a business owner has severed the employment of his or her employees through employment adjustment during the period between three months before the date of commencement of operation and one year after the date of commencement of operation;

3. Where the business owner who has employed a job seeker as an insured employee as set forth in paragraph (1) 4 is found to be the same business owner as at the time the employment of the insured employee was most recently severed (limited to severance from employment within one year before the employment of the relevant insured employee; hereafter the same shall apply in subparagraph 4): Provided, That this shall exclude cases where the business owner has given priority to the relevant employee in employment pursuant to Article 25 (1) of the Labor Standards Act;

4. Where the business owner who has employed a job seeker as an insured employee under paragraph (1) 4 is related to the business in which the relevant employee had been engaged at the time his or her employment was most recently severed, such as cases where the business owner has merged his or her business with, or has acquired, that of the other business owner as at the time the employment of the relevant employee was most recently severed;

4-2. Where the business owner delayed payment of wages, etc. and his or her name is disclosed pursuant to Article 43-2 of the Labor Standards Act;

5. In any case prescribed by Ordinance of the Ministry of Employment and Labor, including the case where a business owner pays wages below the minimum wage rate under the Minimum Wage Act.

(7) Deleted.

(8) Matters necessary for application for and payment of subsidies for promotion of local employment shall be prescribed by Ordinance of the Ministry of Employment and Labor.

Article 23 (Assistance for Employment of Senior Citizens)

The Minister of Employment and Labor may, as prescribed by Presidential Decree, provide necessary assistance to business owners who hire senior citizens and other people who usually have particular difficulty in finding employment in the labor market (hereinafter referred to as "senior citizens, etc.") or take other actions to improve their employment security or to employees involved in such business owners' actions.

Enforcement Ordinance

Article 25 (Subsidy for Employment Extension of the Aged)

(1) The Minister of Employment and Labor shall, pursuant to Article 23 of the Act, grant subsidies for extension of employment of seniors to a business owner who runs business that meets any of the following requirements: Provided, That this shall not apply to any business owner who has a regular workforce of at least 300 employees:

1. Deleted.

2. The retirement age shall be abolished or the existing retirement age shall be increased by one year or more to at least 60: Provided, That where the retirement age at the relevant place of business is abolished and a new retirement age is established or the previous retirement age is lowered within three years before the abolishment or extension of the retirement age, subsidies for extension of employment of the elderly shall not be granted;

3. The business owner who set the retirement age at 55 shall continue to retain a person who has reached the retirement age after at least 18 months of employment or shall employ (hereafter referred to as "re-employment" in this Article and Articles 28 and 28-4) such person within three months after he or she has retired at the retirement age and shall not sever the employment of any employee through employment adjustment during three months before such re-employment and six months after such re-employment: Provided, That a business owner shall not be eligible for the subsidies for extension of employment of seniors where the business owner re-employs such person for a period of less than one year or lowers the retirement age of the place of business within three years before the re-employment.

(2) Deleted.

(3) Deleted.

(4) The amount of subsidies for extended employment of seniors for which a business owner who meets the requirements prescribed in paragraph (1) 2 is eligible shall be calculated by multiplying the amount publicly notified each year by the Minister of Employment and Labor, considering the wage increase rate, labor market conditions, and other factors, by the number of employees (excluding persons to whom subsidies for the wage peak system under Article 28 are paid) who have been employed by the business owner continuously for at least 18 months and who is allowed to continue his or her services due to the abolishment or extension of the retirement age after he or she reaches the retirement age that was previously set, and such subsidies shall be granted for the period classified under each of the following subparagraphs:

1. Where the retirement age is abolished: One year from the day (referring to the day when the age of 58 is reached if the previous retirement age is lower than the age of 58) immediately following the date when one year has passed from the date when the previous retirement age of an employee, whose retirement age is abolished, is reached;

2. Where the retirement age is extended: The period prescribed in each of the following calculated from the day immediately following the date when the previous retirement age of an employee, whose retirement age is extended, is reached:

(a) Where the retirement age is extended by at least one year but not more than three years: One year;

(b) Where the retirement age is extended by at least three years: Two years.

(5) The amount of subsidies for extended employment of seniors for which a business owner who meets the requirements under paragraph (1) 3 is eligible shall be calculated by multiplying the amount publicly notified each year by the Minister of Employment and Labor, considering the wage increase rate, labor market conditions, and other factors, by the number of employees (excluding persons to whom subsidies for the wage peak system under Article 28 are paid) re-employed after each of such persons reaches the retirement age, and such subsidies shall be granted for the periods classified as prescribed in each of the following subparagraphs:

1. Where the re-employment period is at least one year but not more than three years: Six months;

2. Where the re-employment period is at least three years: One year.

(6) Matters necessary to apply for and pay the subsidies for extended employment of seniors shall be prescribed by Ordinance of the Ministry of Employment and Labor.

[Title Amended on Jul. 31, 2010]

[This Article shall be effective until December 31, 2016 pursuant to Article 2 (1) of the Addenda to the Presidential Decree No. 25022 promulgated on December 24, 2013: Provided, That the amended provisions of Article 25 shall apply to subsidies to be granted to a business owner who becomes eligible for the subsidies for extended employment of seniors by December 31, 2016, even after the effective period expires.]

Enforcement Ordinance

Article 25-2 (Subsidies for Employment of Seniors Aged at least 60 Years)

(1) The Minister of Employment and Labor shall, pursuant to Article 23 of the Act, grant subsidies for employment of seniors aged at least 60 years to the owner of business that meets all of the following requirements:

1. That the relevant place of business does not impose a retirement age;

2. That the ratio of the monthly average number of employees aged at least 60 years who have been employed for at least one year as of the last day of each month to the monthly average number of employees employed for the corresponding business on a quarterly basis shall not be less than the ratio determined and publicly notified by the Minister of Employment and Labor for each business type;

3. That the business owner receives subsidies for the promotion of employment of seniors under Article 18 of the Addenda to the Enforcement Decree of the Employment Insurance Act (Presidential Decree No. 22603) at least once as of the date of application for subsidies for the employment of seniors aged at least 60 years, and he or she shall not be subject to the period when the payment of the aforementioned subsidies is restricted.

(2) Notwithstanding paragraph (1), where a business owner falls under any of the following, the subsidies for the employment of seniors aged at least 60 years (hereinafter referred to as "subsidies for employment of seniors aged at least 60 years") shall not be paid:

1. Where a business owner severs the employment relationship with employees aged at least 55 years for employment adjustments during the period between three months before applying for subsidies for employment of seniors aged at least 60 years and six months thereafter;

2. Where the name of a business owner is listed and announced pursuant to Article 43-2 of the Labor Standards Act because the business owner delayed in paying wages, etc.

(3) The amount of subsidies for the employment of seniors aged at least 60 years shall be calculated by multiplying the amount publicly notified by the Minister of Employment and Labor in consideration of labor market conditions by the number of seniors aged at least 60 years or older who have been employed in excess of the ratio publicly notified by the Minister of Employment and Labor pursuant to paragraph (1) 2: Provided, That the total amount of subsidies which a business owner is eligible to receive on a quarterly basis shall not exceed the amount calculated by multiplying the amount publicly notified by the Minister of Employment and Labor pursuant to the main sentence by the number equivalent to 20/100 (10/100 for a large enterprise) of the number of persons employed by the relevant business.

(4) When calculating the number of employees to provide subsidies for employment of seniors aged at least 60 years, any of the following persons shall be excluded herefrom:

1. Daily hire employees;

2. Persons who fall under Article 10 (1) 2 through 5 of the Act and foreign workers who do not fall under Article 10-2 of the Act;

3. Employees aged at least 60 years who are eligible for subsidies for employee retention pursuant to Article 29 of the Framework Act on Employment Policy.

(5) Necessary matters for an application for and provision of subsidies for employment of seniors aged at least 60 years shall be prescribed by Ordinance of the Ministry of Employment and Labor.

[This Article Newly Inserted on Jan. 13, 2012]

[The amended provisions of this Article shall be effective until December 31, 2020 pursuant to Article 2 (2) of the Addenda to the Presidential Decree No. 23513 promulgated on January 13, 2012.]

Enforcement Ordinance

Article 26 (Incentives for Promotion of Employment)

(1) The Minister of Employment and Labor shall grant incentives for promotion of employment to a business owner who hires any of the following unemployed persons, as an insured employee if the person has registered himself/herself as a job seeker with employment security offices or any of the institutions specified by Ordinance of the Ministry of Employment and Labor, pursuant to Article 23 of the Act, to promote employment of persons with disabilities, female heads of household, etc. who have particular difficulty finding jobs under ordinary labor market conditions (hereafter referred to as "employment security office" in this Article):

1. A person who has completed the employment assistance program, as notified by the Minister of Employment and Labor, designed for those having particular difficulty finding jobs under ordinary labor market conditions;

2. A person with severe disability prescribed in subparagraph 2 of Article 2 of the Act on the Employment Promotion and Vocational Rehabilitation of Persons with Disabilities who is in a state of unemployment for at least one month;

3. A person in a state of unemployment for at least one month who, as a person prescribed by Ordinance of the Ministry of Employment and Labor, among unemployed women responsible for supporting their family members, is eligible for employment assistance prescribed in the former part of Article 11 (2) of Enforcement Decree of the National Basic Living Security Act or entitled to protection prescribed in Articles 5 and 5-2 of the Single-Parent Family Support Act;

4. A person in a state of unemployment for at least one month who has difficulty participating in the employment assistance program prescribed in subparagraph 1 because the person resides in an island (excluding the main island of Jeju Special Self-Governing Province and islands connected to land by breakwaters or bridges, etc.);

5. A person recognized by the Minister of Employment and Labor as needing measures for promotion of employment due to worsening employment conditions and soaring unemployment, among the unemployed who fail to meet the requirements prescribed in subparagraphs 1 through 4.

(2) The incentives for promotion of employment prescribed in paragraph (1) (hereinafter referred to as “incentives for employment promotion”) shall be paid where a business owner employs a person as an insured employee for at least six months, according to the following classifications:

1. Where the employment period is at least six months but less than 12 months: Amount equivalent to six months;

2. Where the employment period is at least 12 months: Amount equivalent to 12 months: Provided, That where the employment period of an insured employee determined and publicly notified by the Minister of Employment and Labor is at least 18 months, the following relevant amounts shall be paid:

(a) Where the employment period is at least 18 months but less than 24 months: Amount equivalent to 18 months;

(b) Where the employment period is at least 24 months: Amount equivalent to 24 months.

(3) The incentives for employment promotion shall not be paid in any of the following cases:

1. Where a short-term contract employee is employed in cases prescribed by Ordinance of the Ministry of Employment and Labor;

2. Deleted;

3. Where a large enterprise employs an unemployed person aged 29 years or younger who is prescribed by the Minister of Employment and Labor;

4. Where a business owner severs the employment relationship with an employee (excluding employees employed after a person eligible for incentives for employment promotion is employed) for employment adjustment during the period between three months before employing a person eligible for the incentives for employment promotion and one year from the employment of the relevant person (in cases where a person eligible for incentives for employment promotion is employed for less than one year, referring to the period until the termination of the relevant employment relationship);

5. Where a business owner who employs a person eligible for the incentives for employment promotion is found to be the same business owner as at the time the employment relationship of the relevant employee was severed (limited to cases where the employment relationship was severed within one year before the relevant business owner employs the relevant employee; hereafter the same shall apply in subparagraph 6): Provided, That this shall not apply in any of the following cases:

(a) Where a business owner gives the relevant employee priority in employment pursuant to Article 25 (1) of the Labor Standards Act;

(b) Where a business owner re-employs an employee whom he or she employed as a daily hire employee by entering into a contract without a fixed term of employment;

6. Where a business owner who employs a person eligible for incentives for employment promotion has a business relationship with the business from which the employment relationship of the relevant employee is severed, such as merger or acquisition, and is prescribed by Ordinance of the Ministry of Employment and Labor;

7. Where the name of a business owner is listed and announced pursuant to Article 43-2 of the Labor Standard Act because the business owner delayed the payment of wages, etc.;

8. Where a business owner who fails to fulfill the obligation to employ persons with disabilities pursuant to Article 28 of the Act on the Employment Promotion and Vocational Rehabilitation of Persons with Disabilities newly employs persons with disabilities under subparagraph 1 of Article 2 of the same Act (excluding persons with severe disabilities under subparagraph 2 of the same Article) before such obligation is performed.

(4) The amount of incentives for employment promotion shall be calculated by multiplying the amount publicly notified each year by the Minister of Employment and Labor, considering the wage increase rate, labor market conditions, and other factors, by the number of insured employees; and shall not exceed 80/100 of the wages borne by the business owner during the period of payment of such incentives.

(5) The number of insured employees eligible for incentives for employment promotion shall not exceed 30/100 (the decimal point shall be dropped in calculation) of the number of insured employees of the relevant business as of the last day of the immediately preceding insurance year.

(6) Notwithstanding paragraph (5), the number of insured employees eligible for incentives for employment promotion shall not exceed the number of insured employees classified as follows in any of the following cases:

1. Where the number of the newly employed, insured employees pursuant to paragraph (1) is at least 30: 30 persons;

2. Where the number of the insured employees as of the end of the immediately preceding insurance year for the pertinent business is at least one but less than ten: Three persons;

3. Where no insured employee exists as of the end of the immediately preceding insurance year for the pertinent business: 30/100 of the number of insured employees as of the date the insurance relation is established for the year in which an employee is newly hired (three persons where the number of insured employees is at least one but less than ten; and 30 persons where 30/100 of the number of insured employees exceeds 30 persons).

(7) Necessary matters for an application for and payment of incentives for employment promotion shall be prescribed by Ordinance of the Ministry of Employment and Labor.

(8) Where emergency measures are necessary for job security as disasters prescribed in subparagraph 1 of Article 3 of the Framework Act on the Management of Disasters and Safety took a heavy toll on the economy, resulting in soaring unemployment, the Minister of Employment and Labor may determine a period of employment of up to one year, grounds for exclusion from payment of incentives for employment promotion, the maximum amount of incentives, and the limit on the number of eligible insured employees differently by public notice following deliberation by the Employment Policy Council to expand support for business owners under paragraph (1), notwithstanding the provisions of paragraphs (2) through (7) (in cases falling under paragraph (3), limited to the main sentence of subparagraphs 1, 4, and 4, with the exception of its items, and subparagraph 6).

[This Article Wholly Amended on Dec. 31, 2010]

[Title Amended on Jul. 30, 2016]

Enforcement Ordinance

Article 27 Deleted. [Presidential Decree No. 21015, Sep. 18, 2008]

Enforcement Ordinance

Article 28 (Subsidies for Wage Peak System)

(1) The Minister of Employment and Labor shall grant subsidies for the wage peak system to employees to whom the wage peak system shall apply in any of the following cases, as prescribed in Article 23 of the Act, (hereafter referred to as "wage peak system" in this Article): Provided, That in cases falling under subparagraph 2, he or she shall grant subsidies for the wage peak system to both the employees and the business owner:

1. Where a business owner implements a system under which an employee has his or her wage reduced based on his or her age, period of continuous employment or wage after he or she reaches the age of 55, with the consent of the representative of employees, in return for extension of the retirement age to at least 60 or to at least 56 but not more than 60;

2. Where a business owner reduces working hours while implementing the system prescribed in subparagraph 1 or re-employment within three months of retirement (hereinafter referred to as "re-employment" in this Article and Article 28-4) pursuant to subparagraph 4, and thereby reducing the contractual weekly working hours to at least 15 hours but not more than 30 hours;

3. Deleted.

4. Where a business owner who set the retirement age at 55 or older decides to re-employ (excluding cases where the period of the re-employment is less than one year) a person, who has reached retirement age, and to reduce his or her wage compared to the amount he or she received before the previous retirement.

(2) The subsidies for the wage peak system determined under paragraph (1) shall be paid to persons who have been employed continuously for at least 18 months by the relevant business owner and that sees his or her peak wage compared to his or her wage for the pertinent year (referring to the wage of the year that immediately precedes the year when the date of the first reduction of wage following implementation of the wage peak system belongs; hereafter the same shall apply in this Article) reduced by at least the ratio classified as prescribed in each of the following (excluding the person whose wage for the pertinent year reaches or exceeds the amount publicly notified by the Minister of Employment and Labor):

1. In the case of paragraph (1) 1: The ratio classified according to the extended retirement age as follows: Provided, That it shall be 10/100 for any business that has a regular workforce of less than 300 employees:

(a) Up to one year from the date of application of the wage peak system: 10/100;

(b) For a period of up to two years but no shorter than one year from the date of application of the wage peak system: 15/100;

(c) For a period exceeding two years after the date of application of the wage peak system: 20/100;

2. In the case of paragraph (1) 2: 30/100;

3. In the case of paragraph (1) 4: 20/100: Provided, That it shall be 10/100 for any business that has a regular workforce of less than 300 employees.

(3) Subsidies for the wage peak system prescribed in paragraph (1) shall be an amount publicly notified by the Minister of Employment and Labor, considering the difference between the peak wage and the pertinent year’s wage of the pertinent individual employee, the wage increase rate, an increase in the labor cost of the business owner due to the reduction of contractual working hours prescribed in paragraph (1) 2, etc.

(4) Subsidies for the wage peak system prescribed in paragraph (1) shall be paid for five years from the date the wage peak system enters into force: Provided, That when the employment period is less than five years, the subsidies shall be paid for the employment period, and when re-employment is made pursuant to paragraph (1) 4 after the enforcement of the wage peak system prescribed in paragraph (1) 1, the maximum period of payment shall be five years in total.

(5) Matters necessary to calculate, to apply for and to pay the subsidies for the wage peak system prescribed in paragraph (1) shall be prescribed by Ordinance of the Ministry of Employment and Labor.

[Title Amended on Jul. 31, 2010]

[Pursuant to Article 2 (2) of the Addenda to the Presidential Decree No. 25022 promulgated on December 24, 2013, this Article shall be effective in accordance with the following classifications: Provided, That the amended provisions of Article 28 shall apply to subsidies to be granted to an employee who becomes eligible for the subsidies for the wage peak system by the relevant date referred to in subparagraph 1 or 2, even after the effective period expires: 1. Any business or place of business that has a regular workforce of at least 300 employees, any public institution prescribed in Article 4 of the Act on the Management of Public Institutions, any local government-invested public corporation prescribed in Article 49 of the Local Public Enterprises Act, and any local public corporation prescribed in Article 76 of the same Act: Dec. 31, 2015; and 2. Any business or place of business that has a regular workforce of less than 300 employees, the State, or any local government: Dec. 31, 2016.]

Enforcement Ordinance

Article 28-2 (Subsidies for Reduction of Wages in Business or Place of Business Having Set Retirement Age at 60 or More)

(1) Where a business or place of business which has set the retirement age at 60 or more implements the system of reducing wages after the age of 55, the Minister of Employment and Labor shall, pursuant to Article 23 of the Act, grant subsidies beginning with the date the system of reducing the wages of the relevant employees who saw their wages reduced enters into effect and ending on December 31, 2018: Provided, That where the employment period of the relevant employees ends before December 31, 2018, the subsidies shall be paid during the relevant employment period.

(2) The subsidies determined under paragraph (1) shall be paid to persons who have been employed continuously for at least 18 months by the relevant business owner and gotten their peak wages (referring to the wages of the year that immediately precedes the year when the date of the first reduction of wages following implementation of the system pursuant to paragraph (1) belongs; hereafter the same shall apply in this Article) reduced by at least 10 percent compared to their wages for the pertinent year (excluding persons whose wages for the pertinent year reach or exceed the amount publicly notified by the Minister of Employment and Labor).

(3) The amount of subsidies prescribed in paragraph (1) shall be determined and publicly notified by the Minister of Employment and Labor according to the standards prescribed by Ordinance of Minister of Employment and Labor in consideration of the difference between the peak wage and the pertinent year’s wage of the pertinent individual employee, the wage increase rate, etc.

(4) Matters necessary to apply for and to pay the subsidies etc. referred to in paragraph (1) shall be prescribed by Ordinance of the Ministry of Employment and Labor.

[This Article Newly Inserted on Dec. 4, 2015]

Enforcement Ordinance

Article 28-3

Deleted.

Enforcement Ordinance

Article 29 (Incentives for Employment Security during Period of Childbirth and Child Care)

(1) The Minister of Employment and Labor shall pay incentives for employment security during the period of childbirth and child care to any of the following business owners, pursuant to Article 23 of the Act: Provided, That such incentives shall not be paid to a business owner whose name is disclosed pursuant to Article 43-2 of the Labor Standards Act due to a delay in payment of wages, etc.:

1. Deleted.

2. A business owner who grants an insured employee a child care leave prescribed in Article 19 of the Equal Employment Opportunity and Work-Family Balance Assistance Act or shortens the working hours of an insured employee prescribed in Article 19-2 of the same Act (hereinafter referred to as "child care leave, etc.") for at least 30 days [excluding the period overlapping with the period of a maternity leave prescribed in Article 74 (1) of the Labor Standards Act (hereinafter referred to as "maternity leave")];

3. A business owner meeting all of the following requirements, who grants or allows an insured employee a maternity leave, a miscarriage or stillbirth leave prescribed in Article 74 (3) of the Labor Standards Act (hereinafter referred to as "miscarriage or stillbirth leave") or a child care leave, etc. for at least 30 days and employs a substitute employee:

(a) Any of the following cleaning products:

(i) The business owner shall continuously employ a new substitute employee for at least 30 days from the 60th day before the beginning of a maternity leave, a miscarriage or stillbirth leave, a child care leave, etc. (or the 60th day before the beginning of a maternity leave if a miscarriage or stillbirth leave, a child care leave, etc. begins consecutively after the maternity leave);

(ii) The business owner who allows an insured employee to work reduced hours during her pregnancy for more than 60 days and employs a substitute employee and who continuously employs the substitute employee after the employee in question finishes working reduced working hours and takes maternity leave, miscarriage or stillbirth leave, or child care leave, etc. In such cases, the period of employment of substitute employees shall be at least 30 days.

(b) Deleted;

(c) The business owner shall not sever the employment relationship with any employee (excluding employees employed after substitute employees are newly employed) for employment adjustment during the period from three months before employing a new employee as a substitute to one year thereafter (where the employment period of the relevant substitute employee is less than one year, referring to the period until the termination of the relevant employment relationship).

(2) Deleted.

(3) Incentives for employment security during the period of childbirth and child care prescribed in paragraph (1) 2 shall be calculated by multiplying the amount publicly notified each year by the Minister of Employment and Labor based on the size of business, considering the business owner’s burden of labor costs due to child care leaves, etc. (excluding the period of child care leave of employees in institutions referred to in subparagraph 1 (a) through (c) of Article 2 of the Act on the Prevention of Corruption and the Establishment and Management of the Anti-Corruption and Civil Rights Commission and public institutions designated and publicly notified pursuant to Articles 4 through 6 of the Act on the Management of Public Institutions; hereafter the same shall apply in this Article) by the number of months of the child care leave, etc. the relevant employee has taken.

(4) Incentives for employment security during the period of childbirth and child care prescribed in paragraph (1) 3 (hereinafter referred to as “subsidies for substitute employees”; hereafter the same shall apply in this Article) shall be calculated by multiplying the amount publicly notified by the Minister of Employment and Labor based on the size of business, considering the business owner’s burden of labor costs due to employment of substitute employees, by the number of months for which a substitute employee has been employed during the period for which the relevant employee has taken a maternity leave, a miscarriage or stillbirth leave, or a child care leave, etc. (including the two-month period for transfer of duties before taking a maternity leave, a miscarriage or stillbirth leave, or a child care leave, etc.), but where the State or a local government has paid subsidies or incentives, etc. to business owners for the employment of the relevant substitute employees under this Decree or other statutes, the relevant subsidies or incentives shall be excluded from the subsidies for substitute employees. In such cases, the subsidies for substitute employees shall not exceed the amount of wage paid by business owners to the relevant substitute employees.

(5) The incentives for employment security during the period of childbirth and child care referred to in paragraph (1) shall be provided according to the following classification:

1. In cases falling under paragraph (1) 2: The amount equivalent to 50/100 of the incentives for employment security during the period of childbirth and child care under paragraph (3) shall be paid after the business owner satisfies the requirements referred to in paragraph (1) 2, and the remaining amount shall be aggregated and paid in lump sum after the relevant business owner continues to hire the employee who took maternity leave for at least six months after lapse of the prescribed period;

2. In cases falling under paragraph 1 (3): The amounts classified as follow shall be paid where the business owner satisfies the requirements referred to in paragraph (1) 3 and the remaining amount shall be aggregated and paid in lump sum where the relevant business owner continues to hire the employee who took a maternity leave, a miscarriage or stillbirth leave, or a child care leave for at least one month (including cases where the business owner is unable to hire the employee for at least one month for his or her personal reasons) after lapse of the prescribed period:

(i) Period for transfer of duties: 100/100 of the subsidies for substitute employees under paragraph (4);

(ii) Period of maternity leave, a miscarriage or stillbirth leave, or a child care leave, etc.: 50/100 of the subsidies for substitute employees under paragraph (4).

(5) Matters necessary for an application for and payment of incentives for employment security during the period of childbirth and child care prescribed in paragraph (1) shall be prescribed by Ordinance of the Ministry of Employment and Labor.

[This Article Wholly Amended on Dec. 31, 2010]

[Title Amended on Jul. 30, 2016]

Article 24 (Support for Employment Security for Construction Workers, etc.)

(1) The Minister of Employment and Labor may provide necessary support for an employer who carries out projects described in the following subparagraphs for construction workers, etc., in an unstable employment situation, according to the conditions prescribed in the Presidential Decree:[Amended by Act No. 10339, Jun. 4, 2010]
1. Projects to improve employment situations;
2. Employment security projects such as those to provide opportunities for continued employment, etc.;and
3. Other employment security projects prescribed in the Presidential Decree.
(2) The Minister of Employment and Labor may also provide support to an employers’ association in connection with the projects listed in any of the subparagraphs of paragraph (1), in cases where it is difficult for an employer alone to carry out employment security projects and prescribed in the Presidential Decree. [Amended by Act No. 10339, Jun. 4, 2010]

Enforcement Ordinance

Article 30 Deleted. [Presidential Decree No. 22603, Dec. 31, 2010]

Enforcement Ordinance

Article 31 Deleted. [Presidential Decree No. 22603, Dec. 31, 2010]

Enforcement Ordinance

Article 32 (Subsidy for Managing Employment Insurance for Construction Workers)

(1) The Minister of Employment and Labor shall pay a subsidy for managing employment insurance for construction workers to employers who meet all of the following conditions in accordance with Article 24 of the Act. Provided that, employers whose reports are intentionally or negligently different from the facts, pursuant to Article 15 (1) of the Act, may not be paid the subsidy for managing employment insurance for construction workers for the month in which reports differed from the facts. [Amended by Presidential Decree No. 20775, Apr. 30, 2008;Presidential Decree No. 22269, Jul. 12, 2010 and Presidential Decree No. 22603, Dec. 31, 2010]
1. He/she shall be an employer provided for in subparagraph 1 of Article 2 of the Act on the Employment Improvement, etc. of Construction Workers;
2. He/she shall designate a person in charge of employment management provided for in Article 5 of the Act on the Employment Improvement, etc. of Construction Workers;and
3. The person in charge of employment management under subparagraph 2 shall deal with insurance work, including making a report by electronic means to confirm the content of labor service pursuant to Article 15 (5) of the Act within the period set under Article 7 (1), for daily workers whose number is in excess of the number determined and announced by the Minister of Employment and Labor.
(2) The amount of the subsidy for managing employment insurance for construction workers under paragraph (1) shall be an amount announced by the Minister of Employment and Labor every year according to the scale of the administration of the insured, such as a report of the aquisition or loss, etc. of the insured status of daily workers and the subsidy shall be paid semiannually. In this case, if the employer makes a report confirming employment details pursuant to the latter part of Article 7 (1) using the construction worker employment insurance card prescribed by the Ordinance of the Ministry of Employment and Labor, the level of subsidy for managing employment insurance for construction workers may be set higher in consideration of the costs of purchasing equipment, such as construction worker employment insurance card readers, etc., a past record of making a report confirming employment details using the construction worker employment insurance card, etc. [Amended by Presidential Decree No. 22269, Jul. 12, 2010 and Presidential Decree No. 22603, Dec. 31, 2010]
(3) Necessary matters concerning the application for and payment of the subsidy for managing employment insurance for construction workers shall be prescribed by Ordinance of the Ministry of Employment and Labor. [Amended by Presidential Decree No. 22269, Jul. 12, 2010]
[This Article shall remain effective until Dec. 31, 2013 under the provisions of Article 2 of the Addenda of Presidential Decree No. 22603, Dec. 31, 2010]

Article 25 (Employment Security and Employment Promotion)

(1) The Minister of Employment and Labor may directly carry out projects described in the following subparagraphs or provide support or loans for necessary expenses to a person who carries out such projects for the employment security and employment promotion of insured persons, etc.:[Amended by Act No. 10339, Jun. 4, 2010]
1. Support projects to improve employment, such as employment management diagnosis, etc.;
2. Support projects to promote business start-up by insured persons, etc.;
3. Other projects for the employment security and employment promotion of insured persons, etc., which are prescribed in the Presidential Decree.
(2) Necessary matters concerning the implementation of projects and the provision of support and loans to cover expenses under paragraph (1) shall be prescribed in the Presidential Decree.

Enforcement Ordinance

Article 33 (Support for Diagnosis, etc. of Employment Management)

(1) The Minister of Employment and Labor may, pursuant to Article 25 (1) 1 of the Act, provide a business owner or a labor-management organization that undergoes an examination by a specialized institution in relation to changes in its wage system or re-designing of duties in order to stabilize and promote the employment of persons currently or previously insured, and other persons who are willing to have a job (hereinafter referred to as "insured employee") with subsidies to cover all or some of the expenses incurred in such examination within the budget.

(2) Matters concerning the selection of persons eligible for subsidization prescribed in paragraph (1) and the standards of the subsidies, and other matters necessary for the subsidization shall be prescribed by the Minister of Employment and Labor.

Enforcement Ordinance

Article 34 Deleted. [Presidential Decree No. 22603, Dec. 31, 2010]

Enforcement Ordinance

Article 35 (Employment Security and Employment Promotion)

"Other programs prescribed by Presidential Decree" in Article 25 (1) 3 of the Act means the following programs:

1. Programs for education and public relations on employment security and employment promotion of insured employees, etc.;

2. Programs for supporting employment, including job placement, employment and career advice, support for hiring insured employees, etc. and support for the long-term employment of insured employees, etc., and programs for supporting career changes in order to secure the employment security of insured employees, etc. and promote employment thereof;

3. Programs for improving the employment conditions of insured employees, etc., who are seniors, women, or the disabled;

4. Programs for supporting the employment security, etc. of construction workers, etc.;

5. Programs for supporting the employment security, etc. of any of the following persons:

(a) Fixed-term employees prescribed in subparagraph 1 of Article 2 of the Act on the Protection, etc. of Fixed-Term and Part-Time Employees (hereinafter referred to as “fixed-term employee”);

(b) Temporary agency workers defined in subparagraph 5 of Article 2 of the Act on the Protection of Temporary Agency Workers;

(c) Safety officers prescribed in Article 17 of the Occupational Safety and Health Act;

(d) Health officers prescribed in Article 18 of the Occupational Safety and Health Act;

(e) Part-time employees prescribed in Article 2 (1) 9 of the Labor Standards Act;

(f) Persons who offer their labor similarly to employees referred to in Article 2 (1) 1 of the Labor Standards Act, regardless of the form of their contracts, but to whom the Labor Standards Act, etc. does not apply, and who do not use any other person for another person's business and directly provide labor necessary for the operation of business, and who live on the money they receive in return for the provision of their labor;

6. Programs for supporting the conversion into part-time employment prescribed in Article 2 (1) 9 of the Labor Standards Act;

7. Work-family balance assistance programs through the improvement of employment conditions such as changing work patterns of insured employees, etc.;

8. Credit business for expenses required of business owners to compensate for wages of insured employees under measures for retaining employees (limited to the period determined and publicly notified by the Minister of Employment and Labor).

Enforcement Ordinance

Article 35-2 (Support for Programs for Education and Programs for Public Relations)

(1) The Minister of Employment and Labor may, pursuant to Article 25 of the Act, partially assist within the budget the persons who intends to conduct programs for education and programs for public relations under subparagraph 1 of Article 35 with expenses necessary for conducting such programs.
(2) The Minister of Employment and Labor shall, if intending to give assistance pursuant to paragraph (1), publish in advance the kinds and contents of programs eligible for assistance, the content and extent of assistance, methods for application for assistance, and other related matters.
<This Article Newly Inserted by Presidential Decree No. 28160, Jun. 27, 2017>

Enforcement Ordinance

Article 36 (Support for Employment Support Projects)

(1) The Minister of Employment and Labor may support costs required for the employment support projects conducted by a person described in any of the following subparagraphs pursuant to Article 25 of the Act and subparagraph 2 of Article 35 of this Decree:[Amended by Presidential Decree No. 22269, Jul. 12, 2010]
1. A person who engages in non-fee-charging job placement services under Article 18 of the Employment Security Act and a person who engages in fee charging job placement services under Article 19 of the same Act;
2. A person who engages in services providing job information under Article 23 of the Employment Security Act;and
3. Other persons recognized by the Minister of Employment and Labor as being capable of conducting employment support projects.
(2) The Minister of Employment and Labor shall, if intending to provide support pursuant to paragraph (1), publish beforehand the types and contents of eligible services, the scope of eligible insured people, etc., the contents and level of the support, the method of applying for the support, etc. [Amended by Presidential Decree No. 21348, Mar. 12, 2009 and Amended by Presidential Decree No. 22269, Jul. 12, 2010]

Enforcement Ordinance

Article 37 (Support for Employment Environment Improvement for the Aged, etc.)

(1) The Minister of Employment and Labor may, if an employer intends to install or improve related facilities and equipment to ensure employment security and promote employment for the insured, etc., who are the aged, women or the disabled, provide support or loans within the limits of the budget to cover part of the necessary costs pursuant to Article 25 of the Act and Article subparagraph 3 of Article 35 of this Decree. [Amended by Presidential Decree No. 22269, Jul. 12, 2010]
(2) Matters concerning the selection of those eligible for the support or loans under paragraph (1), the conditions for the selection and other necessary matters concerning the support and loans shall be determined by the Minister of Employment and Labor. [Amended by Presidential Decree No. 22269, Jul. 12, 2010]

Enforcement Ordinance

Article 37-2 (Support for Employment Security of Fixed-Term Workers, etc.)

(1) The Minister of Employment and Labor may, pursuant to Article 25 of the Act, grant subsidies to cover part of necessary expenses to a business owner who intends to carry out programs specified in subparagraphs 2 and 5 through 7 of Article 35, within the budget.
(2) The selection of persons eligible for subsidies under paragraph (1) and the requirements therefor, and other matters necessary for subsidies, shall be prescribed by the Minister of Employment and Labor.
<This Article Newly Inserted by Presidential Decree No. 25955, Dec. 31, 2014>

Enforcement Ordinance

Article 37-3 (Loan to Enterprises Eligible for Preferential Support for Expenses for Retaining Employees)

(1) The Minister of Employment and Labor may lend money to the business owners of enterprises eligible for preferential support taking measures for retaining employees under Article 25 of the Act and subparagraph 8 of Article 35 of this Decree to cover expenses to compensate for wages of insured employees within the budget.

(2) The Minister of Employment and Labor shall decide whether to lend money after undergoing procedures for verifying whether the loan seekers under paragraph (1) are eligible for loans.

(3) Other than matters prescribed in paragraphs (1) and (2), details necessary for operating loan programs such as revocation of a decision to make loans and repayment of loan amounts shall be prescribed and publicly notified by the Minister of Employment and Labor.

[This Article Newly Inserted on Jun. 9, 2020]

Article 26 (Support for Employment Promotion Facilities)

The Minister of Employment and Labor may, as prescribed by the Presidential Decree, provide necessary support to those who establish and operate counseling facilities, child care centers and other employment promotion facilities prescribed by the Presidential Decree to assist in employment security and employment promotion for insured persons, etc., and the securing of a work- force by employers. [Amended by Act No. 10339, Jun. 4, 2010 and Act No. 10789, Jun. 7, 2011]

Enforcement Ordinance

Article 38 (Support for Employment Promotion Facilities)

(1) "Other facilities for promotion of employment prescribed by Presidential Decree" referred to in Article 26 of the Act means the following facilities:

1. Necessary facilities installed and operated by a local government to promote the employment of underprivileged groups in the job market pursuant to Article 11 (4) of the Framework Act on Employment Policy;

2. Facilities operated for supporting employment by schools designated by the Minister of Employment and Labor among schools prescribed in subparagraphs 1, 2, and 4 of Article 2 of the Higher Education Act;

3. Schools designated by the Minister of Employment and Labor from among special-purpose high schools and specialized high schools prescribed in Articles 90 and 91 of the Enforcement Decree of the Elementary and Secondary Education Act;

4. Talent banks of the aged prescribed in Article 11 of the Act on Prohibition of Age Discrimination in Employment and Elderly Employment Promotion;

5. Other facilities designed to stabilize and promote the employment of insured employees, etc. and to secure human resources for business owners, as prescribed by Ordinance of the Ministry of Employment and Labor.

(2) The Minister of Employment and Labor may, pursuant to Article 26 of the Act, grant subsidies to cover expenses incurred in installing and operating a facility for the promotion of employment by a person who installs and operates such facility.

(3) Matters necessary for subsidization of facilities for promotion of employment referred to in paragraph (1) shall be prescribed by the Minister of Employment and Labor.

(4) The Minister of Employment and Labor may, pursuant to Article 26 of the Act, grant subsidies to cover expenses incurred in operating a child care center installed and operated, independently or collaboratively, by a business owner, as prescribed by Ordinance of the Ministry of Employment and Labor. In such cases, higher levels of subsidies may be granted to the business owners of enterprises eligible for preferential support (including their association that consists of at least 50/100 of the enterprises eligible for preferential support, and only referring to the cases where the number of children of the insured employees belonging to the enterprises eligible for preferential support, among the infants looked after by a workplace child care center established and operated by the relevant business owner, is at least 50/100 of the total number of the infants taken care of, based on the last day of every month; hereafter the same shall apply in this Article).

(5) The Minister of Employment and Labor may, pursuant to Article 26 of the Act, grant subsidies or loans to cover some of the expenses incurred in installing child care centers by a business owner or an employers' association that intends to install and operate such facility independently or collaboratively, as determined by the Minister of Employment and Labor. In such cases, higher levels of loans or subsidies may be granted to the business owners of enterprises eligible for preferential support, the business owners who intend to install child care centers for disabled children or infants, or their association.

Enforcement Ordinance

Article 39 (Special Cases of Business Subject to Blanket Application)

The individual projects that become subject to blanket application, as prescribed in Article 8 of the Act On The Collection Of Insurance Premiums, Etc. For Employment Insurance And Industrial Accident Compensation Insurance, shall be deemed a single project, and Articles 17, 19, 24, 25, 25-2, 26, and 29 shall apply thereto.

Enforcement Ordinance

Article 40 (Adjustment of Subsidies)

(1) Where a business owner who meets the requirements for granting subsidies for retaining employees prescribed in Article 19 has satisfied the requirements for reimbursing expenses prescribed in Article 17, the requirements for reimbursing expenses prescribed in Article 22-2 (1), or for granting subsidies for extending employment of seniors prescribed in Article 25 (1) 3, incentives for employment promotion prescribed in Article 26 or for providing incentives for continued employment of seniors prescribed in Article 28-4 during the period for which the measures for retaining employees have been taken, the business owner shall be granted subsidies for retaining employees prescribed in Article 19 except the subsidies or incentives.

(2) Where a business owner becomes simultaneously eligible for at least two of the following subsidies or incentives for the same employee, only one of them shall be granted to the business owner at his or her request: Provided, That where a business owner becomes simultaneously eligible for both a subsidy to be provided when the business requiring employment assistance pursuant to Article 17 (1) 4 additionally hires unemployed youths within an age range determined by the Minister of Employment and Labor (hereafter referred to as "youth" in this Article) and a subsidy to be provided to support the long-term employment of youths employed by a small or medium enterprise pursuant to subparagraph 2 of Article 35, both of them may be granted to the business owner:

1. A subsidy prescribed in Article 17 (1) 3 through 7;

2. A subsidy for promotion of local employment prescribed in Article 24;

3. A subsidy for extending employment of seniors prescribed in Article 25;

4. A subsidy for employment of seniors aged at least 60 years prescribed in Article 25-2;

5. An incentive for employment promotion prescribed in Article 26;

6. An incentive for continued employment of seniors under Article 28-4;

7. An incentive for employment security during the period of childbirth and child care prescribed in Article 29 (1) 3;

8. A subsidy to be provided to business owners prescribed in subparagraphs 1 through 7 of Article 35;

9. A subsidy for operating expenses of workplace child care centers prescribed in Article 38 (4).

(3) If a business owner concurrently meets the requirements for granting subsidies to cover expenses prescribed in Article 17 (1) 1 and 2, only one of those subsidies shall be granted upon request by the business owner.

(4) If a business owner who receives any of the subsidies prescribed in paragraph (3) meets the requirements for receiving any of the subsidies or incentives under paragraph (2) during the period for which the business owner receives the relevant subsidies, the amount calculated by multiplying the amount of the corresponding subsidies or incentives among those prescribed in paragraph (2) by the rate determined and publicly notified by the Minister of Employment and Labor shall be granted upon request by the business owner.

(5) Where a business owner eligible for incentives for the promotion of employment of seniors pursuant to Article 18 of the Addenda to the Enforcement Decree of the Employment Insurance Act (Presidential Decree No. 22603) also satisfies the requirements for receiving subsidies for employment of seniors aged at least 60 years prescribed in Article 25-2, only one of those incentives or subsidies shall be granted upon request by the business owner.

(6) If an employee simultaneously meets the requirements for at least two types of subsidies under Articles 28 or 28-2, only one of those subsidies shall be granted upon choice of the relevant employee.

[Title Amended on Jul. 31, 2010]

[The amended provisions of paragraph (5) of this Article shall be effective until December 31, 2020 pursuant to Article 2 (2) of the Addenda to the Presidential Decree No. 23513 promulgated on January 13, 2012.]

Article 26-2 (Restrictions on Support)

When the Minister of Employment and Labor provides support under Articles 20 through 26, in the cases prescribed by the Presidential Decree, such as where an employer receives subsidies or grants, etc., under other Acts and subordinate statutes, he/she may subtract the relevant amount from the support to be provided.
[This Article Newly Inserted by Act No. 10895, Jul. 21, 2011]

Enforcement Ordinance

Article 40-2 (Restrictions on Support)

The term “the cases prescribed by the Presidential Decree” used in Article 26-2 of the Act refers to those in which an employer newly employs a worker or takes employment retention measures which falls under any of the following subparagraphs:
1. Where an employer receives financial support such as subsidy, etc., under the Act on the Protection and Settlement Support of Residents Escaping from North Korea;
2. Where an employer receives financial support such as subsidy, etc., under the Industrial Accident Compensation Insurance Act;
3. Where an employer receives financial support such as subsidy, etc., under the Act on Employment Promotion and Vocational Rehabilitation for Disabled Persons;
4. Other cases where an employer receives financial support from a nation or a local government.
[This Article Newly Inserted by Presidential Decree No. 23139, Sep. 15, 2011]

Article 27 (Support for Vocational Skills Development Training Provided by Employers)

(1) To develop and improve the vocational skills of insured employees, etc., the Minister of Employment and Labor may, as prescribed by Presidential Decree, provide funds to business owners who provide vocational skills development training prescribed by Presidential Decree to cover expenses necessary for such training.

(2) The Minister of Employment and Labor may provide preferential support to business owners who provide vocational skills development training to any of the following persons pursuant to paragraph (1), as prescribed by Presidential Decree:

1. Fixed-term employees defined in subparagraph 1 of Article 2 of the Act on the Protection of Fixed-Term and Part-Time Employees;

2. Part-time employees defined in Article 2 (1) 9 of the Labor Standards Act;

3. Temporary agency workers defined in subparagraph 5 of Article 2 of the Act on the Protection of Temporary Agency Workers;

4. Daily hire employees;

5. Aged or semi-aged employees defined in subparagraph 1 or 2 of Article 2 of the Act on Prohibition of Age Discrimination in Employment and Elderly Employment Promotion;

6. Other persons prescribed by Presidential Decree.

Enforcement Ordinance

Article 41 (Support for Vocational Skills Development Training Costs to Employers)

(1) "Vocational skills development training prescribed by Presidential Decree" in Article 27 (1) of the Act means vocational skills development training courses recognized under Article 24 (1) of the Act on the Development of Vocational Skills of Workers, which refer to any of the following training courses or courses of work in parallel with vocational training recognized under Article 15 (2) of the Act on Support for Work in Parallel With Vocational Training in the Industrial Field.

1. A training course for vocational skills development conducted for insured employees [excluding insured employees defined in subparagraph 1 (b) of Article 2 of the Act (hereinafter referred to as "insured self-employed worker")];

2. A training course for vocational skills development offered for persons who are not insured, but employed by the relevant business owner;

3. A training course for vocational skills development offered for persons that are considered to be employed by the relevant business or any business relating to such business;

4. A training course for vocational skills development offered for persons who have registered themselves with an employment security office for finding a job;

5. A training course for vocational skills development offered for insured employees (excluding insured self-employed workers) employed by the relevant business during paid leave (which shall not be annual paid leave prescribed in Article 60 of the Labor Standards Act, but which means leave paid with the wage equal to, or greater than the ordinary wage prescribed in Article 6 of the Enforcement Decree of the Labor Standards Act (hereinafter referred to as "ordinary wage") for the period of leave granted in compliance with any of the following requirements:

(a) A business owner of an enterprise eligible for preferential support or a business owner who has a regular workforce of less than 150 employees shall grant paid leave of at least 5 consecutive days to his or her employees to enable them to attend the training course for at least 20 hours;

(b) Any business owner falling under item (a) shall continuously grant paid leave of at least 30 days to the relevant employees to have them attend the training course for at least 120 hours and employ substitute employees;

(c) Deleted.

(d) A business owner shall grant paid leave to employees who are engaged in production or any related work, as publicly notified by the Minister of Employment and Labor, in order to encourage them to improve the skills and techniques to have them attend the training course for at least 20 hours.

(2) Subsidies for vocational skills development training under paragraph (1) shall be any of the following amounts:

1. A subsidy for vocational skills development training prescribed in any subparagraph of paragraph (1): An amount obtained by multiplying training expenses (limited to expenses that satisfy the standards publicly notified by the Minister of Employment and Labor) by a rate publicly notified by the Minister of Employment and Labor in consideration of the size of the business, etc.: Provided, That a subsidy for the following vocational skills development training shall be the amount prescribed in the main sentence plus the amounts classified as follows.:

(a) Vocational skills development training prescribed in paragraph (1) 3 and 4: Training allowances determined and publicly notified by the Minister of Employment and Labor;

(b) Vocational skills development training prescribed in paragraph (1) 5: Of the wages paid during a period of paid leave and the wages paid to substitute employees under paragraph (1) 5 (b), an amount determined and publicly notified by the Minister of Employment and Labor;

2. A subsidy for work in parallel with vocational training recognized under Article 15 (2) of the Act on Support for Work in Parallel With Vocational Training in the Industrial Field: An amount obtained by multiplying training expenses publicly notified by the Minister of Employment and Labor by a rate publicly notified by the Minister of Employment and Labor in consideration of the type of training, occupational type, business size, etc. plus prices for boarding and lodging and training incentives.

(3) “Person prescribed by Presidential Decree” in Article 27 (2) 6 of the Act means a person falling under any of the following subparagraphs:

1. Employees engaged in any production or production-related job who are publicly notified by the Minister of Employment and Labor to encourage them to improve their skills and techniques;

2. Employees determined and publicly notified by the Minister of Employment and Labor, to whom a shift work system is newly applied after a business owner newly adopts such shift work system under which the employees are divided into groups to work on a shift basis in order to realize job creation under Article 20 of the Act or after a business owner increases the number of existing employees' groups to a shift work system is applied (limited to the cases of operating not more than four groups);

3. Employees employed on the condition of receiving vocational skills development training and evaluation.

(4) Where the Minister of Employment and Labor intends to preferentially assist a business owner who conducts vocational skills development training for employees falling under any subparagraphs of Article 27 (2) of the Act with expenses necessary for such training, he or she shall determine and publicly announce the level of such assistance in consideration of training expenses, wages paid to persons eligible to receive training and substitute employees during a period of their training, and other expenses necessary for such training.

(5) With respect to vocational skills development training, the extent of assisting training expenses training allowances, the maximum amount of assistance, the procedures for applying for assistance and other matters necessary for assistance shall be prescribed by Ordinance of the Ministry of Employment and Labor.

Article 28 (Standards, etc. for Support for Expenses)

If the Minister of Employment and Labor provides support for expenses to an employer pursuant to Article 27, the amount of such support shall be the one obtained by multiplying the amount of insurance premiums for employment security and vocational skills development projects out of the employment insurance premiums of the year concerned under Article 16-3 of the Insurance Premium Collection Act or the estimated employment insurance premiums of the year concerned under Article 17 of the same Act by the ratio prescribed in the Presidential Decree, and the limit thereto shall be prescribed by the Presidential Decree. [Amended by Act No. 9990, Jan. 27, 2010 and Act No. 10339, Jun. 4, 2010]

Enforcement Ordinance

Article 42 (Upper Limits of subsidies)

(1) The total annual amount of training expenses to be subsidized to a business owner under Article 28 of the Act shall be an amount equivalent to 100/100 (or 240/100 for an enterprise eligible for preferential support) of either of the insurance premium for the programs for employment security and vocational training among the employment insurance premium a business owner shall pay for the pertinent year, as prescribed in Articles 13 (1) 1 and 16-3 of the Insurance Premium Collection Act, or of the insurance premium for the programs for employment security and vocational training among the estimate-based insurance premium for employment insurance a business owner shall pay for the pertinent year, as prescribed in Articles 13 (1) 1 and 17 (1) of the Insurance Premium Collection Act: Provided, That the maximum amount of the total expenses that can be subsidized to a business owner who falls under Article 18 (2) may be adjusted to 130/100 (or 300/100 for an enterprise eligible for preferential support) of either of the insurance premium for the programs for employment security and vocational training among the employment insurance premium for the pertinent year the business owner shall pay for the pertinent year, or of the insurance premium for the programs for the employment security and vocational training among the estimate-based insurance premium for employment insurance the business owner shall pay for the pertinent year.

(2) Where a business owner provides training courses recognized pursuant to Article 24 of the Act on the Development of Vocational Skills of Workers to employees employed by other business owners, the business owner may receive the subsidies up to 80/100 of either of the insurance premium for the programs for employment security and vocational training among the employment insurance premium the business owner shall pay for the pertinent year, or of the insurance premium for the programs for employment security and vocational training among the estimate-based insurance premium for employment insurance the business owner shall pay for the pertinent year in addition to the subsidies under paragraph (1).

(3) Notwithstanding paragraphs (1) and (2), the minimum amount of subsidized expenses prescribed by the Minister of Employment and Labor shall be the amount of subsidies, where the amount of the subsidies is less than the minimum amount of subsidized expenses prescribed by the Minister of Employment and Labor, considering the size and type of business.

(4) Any of the following subsidies shall not be included in the upper limit of subsidies for vocational skills development training for which the relevant business owner is eligible pursuant to paragraphs (1) through (3):

1. Subsidies for vocational skills development training prescribed in Article 41 (1) 1 to be provided for the training under Article 3 (1) 1 of the Enforcement Decree of the Act on the Development of Vocational Skills of Workers;

2. Subsidies for vocational skills development training prescribed in Article 41 (1) 3 and 4;

3. Any of the following subsidies among the subsidies for vocational skills development training prescribed in Article 41 (1) 5 (a) and (b):

(a) An aggregate of the wages paid during paid leave and the amount corresponding to part of the wages paid to substitute employees, which is subsidized pursuant to Article 41 (2);

(b) Expenses for vocational skills development training publicly notified by the Minister of Employment and Labor in consideration of the fields, period, etc. of vocational skills development training.

(5) Notwithstanding paragraphs (2) through (4), a business owner for whom assistance for vocational skills development programs is restricted pursuant to Article 35 (4) of the Act shall not be governed by paragraphs (2) through (4) for three years from the insurance year to which the end date of the period of restriction on subsidies or loans pursuant to Article 55 (2) of the Act on the Development of Vocational Skills of Workers belongs.

Article 29 (Support for Vocational Skills Development for Insured Persons, etc.)

(1) If insured persons, etc., receive vocational skills development training or make other efforts to develop or improve their vocational skills, the Minister of Employment and Labor may support the necessary expenses under the conditions prescribed in the Presidential Decree. [Amended by Act No. 10339, Jun. 4, 2010]
(2) The Minister of Employment and Labor, if it is deemed necessary, may conduct vocational skills development training to promote the employment of insured persons, etc., under the conditions prescribed in the Presidential Decree. [Amended by Act No. 10339, Jun. 4, 2010]
(3) If a low-income insured person, etc., prescribed by the Presidential Decree receives vocational skills development training, the Minister of Employment and Labor may make loans for his/her living costs under the conditions prescribed by the Presidential Decree. [Newly Inserted by Act No. 9315, Dec. 31, 2008 and Amended by Act No. 10339, Jun. 4, 2010]

Enforcement Ordinance

Article 43 (Subsidization for Development of Workers’ Vocational Skills)

(1) Where any of the following insured employees, etc. receives vocational skills development training, as prescribed in subparagraph 1 of Article 2 of the Act on the Development of Vocational Skills of Workers (hereinafter referred to as "vocational skills development training"), the Minister of Employment and Labor may, pursuant to Article 29 (1) of the Act, fully or partially subsidize expenses incurred, as prescribed by Ordinance of the Ministry of Employment and Labor:

1. An insured person, etc. employed by an enterprise eligible for preferential support;

2. An insured employee, etc. falling under any subparagraph of Article 27 (2) of the Act;

3. An insured self-employed worker, etc.;

4. An insured employee, etc. scheduled to be severed from employment within 180 days from the date an application for employment training is filed with the director of an employment security office;

5. An insured employee, etc. laid off for at least 90 days without pay for management reasons;

6. An insured employee, etc. aged at least 45 who is employed by a large enterprise and whose income is less than the amount determined and publicly notified by the Minister of Employment and Labor;

7. An insured employee, etc. who does not receive vocational skills development training conducted by an employer under Article 27 of the Act for at least three years;

8. An insured employee, etc. under child care leave pursuant to Article 19 of the Equal Employment Opportunity and Work-Family Balance Assistance Act.

(2) Expenses required for the vocational skills development training prescribed in paragraph (1) may be paid to insured employees, etc. who receive such training or the institutions that conduct such training: Provided, That when an insured employee, etc. pays a training fee by a credit card prescribed in subparagraph 3 of Article 2 of the Specialized Credit Finance Business Act and the credit card company who issued the credit card pays for the amount of the training fee to the training institution, as prescribed by the Minister of Employment and Labor, the Minister of Employment and Labor may pay a training fee to the credit card company on behalf of the insured employee, etc. who receives such training.

(3) Necessary matters concerning the scope of training courses for which training expenses may be subsidized pursuant to paragraph (1) and the procedure for the subsidization shall be prescribed by Ordinance of the Ministry of Employment and Labor.

[Title Amended on Jul. 24, 2013]

Enforcement Ordinance

Article 44 Deleted. [Presidential Decree No. 23139, Sep. 15, 2011]

Enforcement Ordinance

Article 45 (Loans for Skills Development Expenses)

(1) Where an insured employee (insured self-employed workers shall be limited to those for whom 180 days have passed in aggregate since purchase of insurance as at the date of an announcement of credit business for the relevant year) is admitted to or enrolled in any of the following schools and facilities on his or her own account pursuant to Article 29 (1), the Minister of Employment and Labor may fully or partially grant a loan for the relevant school expenses within the budget:

1. Polytechnic colleges under the Act on the Development of Vocational Skills of Workers;

2. A lifelong education facility in the form of a distance learning college whose graduates shall be recognized as having an academic background and degree equivalent to that of graduates from a junior college, university, or college prescribed in Article 33 (3) of the Lifelong Education Act;

3. A school under Article 2 of the Higher Education Act.

(2) The Minister of Employment and Labor may fully or partially grant a loan to an insured employee who receives vocational skills development training within the budget: Provided, That the foregoing shall not apply to any of the following courses:

1. Activities of exchanging information, such as seminars and symposiums, or general culture courses on current affairs or general knowledge;

2. Courses provided as a hobby, pastime, or sports;

3. Other courses deemed inappropriate by the Minister of Employment and Labor as vocational skills development training courses.

(3) The scope of the persons eligible for loans to help cover tuition fees incurred in a foreign language course as part of vocational skills development training under paragraph (2) shall be prescribed by the Minister of Employment and Labor.

(4) The interest rate on loans prescribed in paragraphs (1) through (3), the term of such loans, and other conditions of the loans shall be prescribed by the Minister of Employment and Labor, subject to prior consultation with the Minister of Economy and Finance.

(5) Matters concerning the selection of the persons eligible for loans prescribed in paragraphs (1) through (3), the procedure for granting loans, and other matters necessary for granting such loans shall be prescribed by Ordinance of the Ministry of Employment and Labor.

Enforcement Ordinance

Article 46 (Support for Skills Development Expenses)

(1) The Minister of Employment and Labor may, pursuant to Article 29 (1) of the Act, pay all or some of the school expenses, within the budget, on behalf of insured employees of enterprises eligible for preferential support (excluding insured self-employed workers), who are admitted to or enrolled in a school or facility falling under any subparagraph of Article 45 (1) and who demonstrates excellent academic performance.

(2) Necessary matters concerning the selection of persons eligible for subsidization under paragraph (1), the amount and methods of such subsidization shall be prescribed by the Minister of Employment and Labor.

Enforcement Ordinance

Article 47 (Support for Employment Training)

(1) The Minister of Employment and Labor may provide vocational training courses for the unemployed that are deemed necessary for starting a business or finding jobs, as prescribed in Article 29 (2) of the Act:

1. Deleted.

2. Deleted.

3. Deleted.

4. Deleted.

(2) The expenses incurred in connection with the training courses for employment under paragraph (1) may be paid to persons who attend such training courses or the institutions that provide such training courses: Provided, That where a person who receives training has paid training fees with credit cards prescribed in Article 2 of the Specialized Credit Financial Business Act, as prescribed by the Minister of Employment and Labor, and a credit card business entity who issued the credit card has paid the training fee to the training institution, the Minister of Employment and Labor may pay the training fee to the relevant credit card business entity on behalf of the trainee.

(3) Where an unemployed person who attends an employment training course prescribed in paragraph (1) is not eligible for job-seeking benefits prescribed in Article 43 (1) of the Act, the Minister of Employment and Labor may pay him or her the training allowance.

(4) The Minister of Employment and Labor may extend a loan to fully or partially cover training expenses to a person who was formerly insured, but am now unemployed and who attends the employment training course prescribed in paragraph (1).

(5) Matters concerning the selection of persons eligible for loans prescribed in paragraph (4), procedures for extending such loans, the number of such loans extended, and other necessary matters for extension of such loans shall be prescribed by Ordinance of the Ministry of Employment and Labor.

(6) The institutions offering training courses for employment prescribed in paragraph (1) and other matters necessary for the implementation of employment training courses shall be prescribed by Ordinance of the Ministry of Employment and Labor.

[Title Amended on Jul. 15, 2011]

Enforcement Ordinance

Article 47-2 (Provision of Loans for Living Costs During Vocational Skills Development Training)

(1) "Low-income insured employees, etc. prescribed by Presidential Decree" in Article 29 (3) of the Act means those who meet the selection standards determined and publicly notified by the Minister of Employment and Labor in consideration of the income level and the history of loans, among the following persons:

1. An insured employee under subparagraph 1 (a) of Article 2 of the Act who is on leave without receiving money and valuables including leave benefits;

2. An insured employee who is self-employed;

3. An insured employee, etc. falling under any subparagraph of Article 27 (2) of the Act;

4. An employee who was insured while unemployed (excluding those who are receiving unemployment benefits under Chapter IV of the Act) when he or she applied for loans to cover living expenses under Article 29 (3) of the Act;

5. An insured employee, etc. who falls under subparagraph 5 (f) of Article 35;

6. Other insured employees deemed to need loans to cover living expenses by the Minister of Employment and Labor.

(2) The living expenses prescribed in Article 29 (3) of the Act may be loaned within the budget.

(3) The Minister of Employment and Labor shall determine whether to extend loans for living expenses incurred in the execution of vocational skills development training to an applicant who receives such training by verifying whether the applicant meets the eligibility for loans prescribed in paragraph (1).

(4) Matters concerning application for loans prescribed in paragraph (3), procedures for determining whether to extend loans, loan cancellation, the amount of loan and methods for repayment, etc. and other necessary matters concerning the operation of a loan mechanism shall be determined and publicly notified by the Minister of Employment and Labor.

[This Article Newly Inserted on Mar. 12, 2009]

Enforcement Ordinance

Article 30 (Support, etc. for Vocational Skills Development Training Facilities)

If it is deemed necessary for the development and improvement of the vocational skills of insured persons, etc., the Minister of Employment and Labor may, under the conditions prescribed by the Presidential Decree, loan the expenses necessary to install vocational skills development training facilities and to purchase the equipment thereof, and provide support for the expenses necessary to install other vocational skills development training facilities determined by the Minister of Employment and Labor
and to purchase and operate the equipment thereof. [Amended by Act No. 10339, Jun. 4, 2010]

Enforcement Ordinance

Article 48 (Loans for Expenses of Vocational Skills Development Training Facilities, etc.)

(1) Pursuant to Article 30 of the Act, the Minister of Employment and Labor may grant a loan, within the budget, to a business owner, an employers' association, or an employee' association, which has conducted or intends to conduct vocational skills development training, a juristic person established with permission from the Minister of Employment and Labor for vocational skills development training pursuant to Article 32 of the Act on the Development of Vocational Skills of Workers, and a person who installs and operates a designated vocation training facility prescribed in subparagraph 3 (b) of Article 2 of the Act on the Development of Vocational Skills of Workers for the expenses incurred in installing vocational skills development training facilities and purchasing equipment for such facilities.

(2) The interest rates on loans prescribed in paragraph (1), the term of such loans, and other conditions of the loans shall be prescribed by the Minister of Employment and Labor, subject to prior consultation with the Minister of Economy and Finance. In such cases, a different interest rate may be set for the business owner of an enterprise eligible for preferential support, an employers' association of such enterprises, and a business owner or an employers' association that has implemented or intends to implement a vocational skills development program under Article 52 (1) 6.

(3) Necessary matters concerning loan limits to cover expenses prescribed in paragraph (1) and the procedure for the extension of such loans shall be prescribed by Ordinance of the Ministry of Employment and Labor.

Enforcement Ordinance

Article 49 (Support for Vocational Skills Development Training Facilities, etc.)

(1) Pursuant to Article 30 of the Act, the Minister of Employment and Labor may subsidize part of the expenses incurred in installing a facility or purchasing equipment, within the budget, where a business owner, employers' association, or federation of such organizations, independently or collaboratively, installs a facility for vocational skills development training or purchases equipment for such facility in order to conduct training in any of the occupations publicly notified by the Minister of Employment and Labor, including the governmental organizations and strategic industries under Article 15 of the Act on the Development of Vocational Skills of Workers, or where a public organization that has installed a public vocational training facility pursuant to subparagraph 3 (a) of Article 2 of the Act on the Development of Vocational Skills of Workers improves or repairs an antiquated facility or purchases equipment. In such cases, a business owner who runs an enterprise eligible for preferential support, an employers' association of such enterprises, or a business owner or an employers' association that carries out vocational skills development programs prescribed in Article 52 (1) 6 may be granted preferential treatment.

(2) Necessary matters concerning limits on and procedures for the subsidization prescribed in paragraph (1) shall be prescribed by Ordinance of the Ministry of Employment and Labor.

Article 31 (Promotion of Vocational Skills Development)

(1) The Minister of Employment and Labor may carry out activities described in the following subparagraphs to develop or improve the vocational skills of insured persons, etc., or may provide support for necessary expenses to a person who carry out the activities:[Amended by Act No. 10338, May 31, 2010 and Act No. 10339, Jun. 4, 2010]
1. Activities of providing technical assistance and making evaluations relating to vocational skills development projects;
2. Activities of administering qualification tests and encouraging technical skills under the Act on the Encouragement of Technical Skills;and
3. Other activities prescribed in the Presidential Decree.
(2) The Minister of Employment and Labor may, if it is deemed necessary for the development or improvement of vocational skills or smooth labor supply and demand, entrust others to provide vocational skills development training in the occupations determined by the Minister of Employment and Labor, under the conditions prescribed in the Presidential Decree. [Amended by Act No. 10339, Jun. 4, 2010]

Enforcement Ordinance

Article 51 (Support for Qualification Test Projects)

(1) With regard to those who undertake a project falling under any of the following subparagraphs, the Minister of Employment and Labor may support all or part of the expenses necessary for the project pursuant to Article 31 (1) 2.:[Amended by Presidential Decree No. 21015, Sep. 18, 2008 and Amended by Presidential Decree No. 22269, Jul. 12, 2010]
1. A qualification test project carried out by an employer to improve workers’ skills;and
2. A project carried out by a national technical qualification test agency under the National Technical Qualification Act to make it convenient for the insured to acquire a qualification;
(2) The qualification test project under paragraph (1) 1 shall meet all of the following requirements:[Amended by Presidential Decree No. 22269, Jul. 12, 2010]
1. The qualification test project shall be undertaken by an employer alone or jointly for workers of the business concerned or a business related to the business concerned;
2. The qualification test project shall be directly related to knowledge and skills needed in the business concerned;
3. Regulations giving preferential treatment to workers who have acquired the qualification in terms of promotion, pay raises, remunerations, etc., shall be established and implemented;
4. In relation to the test project, any expenses, including test fees, shall not be collected from workers who intend to acquire the qualification;
5. The qualification test shall not be for profits;and
6. The qualification test project shall meet other requirements prescribed by the Ordinance of the Ministry of Employment and Labor.
(3) Necessary matters concerning the application for and method of the support under paragraph (1), etc., shall be prescribed by the Ordinance of the Ministry of Employment and Labor. [Amended by Presidential Decree No. 22269, Jul. 12, 2010]

Enforcement Ordinance

Article 52 (Promotion of Vocational Skills Development)

(1) "Programs prescribed by Presidential Decree" in Article 31 (1) 3 of the Act means the following projects:

1. Projects concerning surveys and research on vocational skills development programs;

2. Projects concerning education and public relations for vocational skills development programs;

3. Projects concerning the development, compilation, and distribution of medium for vocational skills development training;

4. Vocational skills development projects conducted collaboratively by an employers' association, employees’ association, or federation of such organizations;

5. Projects concerning support for the accreditation system for good enterprises in the development of human resources;

6. Vocational skills development projects conducted by a business owner, an employers' association, or a school prescribed in Article 2 of the Higher Education Act after entering into an agreement with two or more business owners who conduct vocational skills development training for their employees;

7. Projects concerning education and training conducted for nurturing and developing skills of the trainers for vocational skills development prescribed in Articles 36 and 37 of the Act on the Development of Vocational Skills of Workers and the staff in charge of the development of human resources prescribed in Article 19 (1) 7 of the Enforcement Decree of the same Act;

8. Workplace skill development projects conducted pursuant to Article 12 of the Act on the Development of Vocational Skills of Workers;

9. Educational and training projects conducted in accordance with an educational or training curriculum of a polytechnic college, as prescribed in Article 40 of the Act on the Development of Vocational Skills of Workers;

10. Vocational skills development training conducted in order to improve the performance of essential duties of a business owner or employees of an enterprise eligible for preferential support (which shall be limited to exceptional training programs determined by the Minister of Employment and Labor);

11. Vocational skills development projects conducted in order for employees of enterprises eligible for preferential support to have extended opportunities to obtain knowledge on their jobs or promote the systemization of their learning so that the knowledge on duties within such enterprises can be accumulated and shared easily;

12. Vocational skills development projects conducted to improve the skills of business owners or staff in charge of the development of human resources in enterprises eligible for preferential support for developing human resources;

13. Systematic support projects for on-site training for enterprises eligible for preferential support;

14. Deleted.

15. Other projects designed to promote vocational skills development.

(2) Where the vocational skills development projects prescribed in paragraph (1) 6 are executed, the Minister of Employment and Labor shall directly grant to the implementers of the relevant vocational skills development projects the aggregated amount the ratio of which is determined and publicly notified by the Minister of Employment and Labor (hereafter referred to as "individual amount" in this paragraph) out of the maximum amount of the subsidies for annual training expenses for vocational skills development which each of the business owners who entered into agreement is entitled to receive pursuant to Article 42 (1) through (3). In such cases, such amount shall be deemed to have been subsidized for each of the business owners who entered into agreement, within the limit of subsidized expenses pursuant to Article 42 (1) through (3).

(3) Necessary matters concerning application for the subsidization of expenses prescribed in paragraph (1) and the method of such subsidization shall be prescribed by the Minister of Employment and Labor.

Enforcement Ordinance

Article 53 (Entrustment of Vocational Skills Development Training Programs)

(1) If the Minister of Employment and Labor intends to entrust the implementation of vocational skills development training programs pursuant to Article 31 (2) of the Act, he/she shall establish a plan for the vocational skills development training programs to be entrusted every year. [Amended by Presidential Decree No. 22269, Jul. 12, 2010]
(2) The vocational skills development training programs prescribed in paragraph (1) shall be regarded as vocational skills development training for national key and strategic industry occupations (hereinafter referred to as “national key and strategic industry occupation training”) under Article 15 of the Workers Vocational Skills Development Act. [Amended by Presidential Decree No. 22603, Dec. 31, 2010]
(3) The provision of national key and strategic industry occupation training shall be entrusted to a facility or an institution prescribed in each paragraph of Article 12 of the Enforcement Decree of the Workers Vocational Skills Development Act. [Amended by Presidential Decree No. 22603, Dec. 31, 2010]
(4) Necessary matters concerning the provision of national key and strategic industry occupation training etc., such as targeted trainees, training procedures and support for training expenses and allowances for national key and strategic industry occupation training, etc. shall be prescribed by Ordinance of the Ministry of Employment and Labor. [Amended by Presidential Decree No. 22269, Jul. 12, 2010 and Presidential Decree No. 22603, Dec. 31, 2010]

Article 32 (Support for Vocational Skills Development of Construction Workers, etc.)

(1) The Minister of Employment and Labor may provide support for necessary expenses to an employer who implement projects prescribed in the Presidential Decree to develop or improve the vocational skills of workers in unstable employment situations such as construction workers, etc. [Amended by Act No. 10339, Jun. 4, 2010]
(2) The Minister of Employment and Labor may provide support to an employers’ association in connection with the projects mentioned in paragraph (1) in cases where it is difficult for an employer alone to carry out the vocational skills development projects and where this is in accordance with the Presidential Decree. [Amended by Act No. 10339, Jun. 4, 2010]

Enforcement Ordinance

Article 54 (Subsidization of Vocational Skills Development of Construction Workers)

(1) Where a business owner of a construction business or employers' association conducts vocational skills development training in order to develop and improve vocational skills of construction workers who are not employed at a specific place of business, as determined and publicly notified by the Minister of Employment and Labor, the Minister of Employment and Labor may, pursuant to Article 32 of the Act, partially subsidize expenses incurred therein, and may also subsidize expenses incurred in training, where a training allowance is paid to such construction workers during the training period.

(2) As to the subsidization of the training expenses for vocational skills development prescribed in paragraph (1), Article 41 (2) shall apply mutatis mutandis.

Article 33 (Provision of Employment Information, Establishment of Foundation for Employment Support, etc.)

(1) The Minister of Employment and Labor may carry out activities for employers and insured persons, etc., such as providing employment information on job offers, job seekers, training, etc., offering vocational guidance including vocational and training counseling, etc., providing job placement services, building the foundation for employment security and vocational skills development and assigning professional manpower needed for this, etc., under the conditions prescribed in the Presidential Decree. [Amended by Act No. 10339, Jun. 4, 2010]
(2) The Minister of Employment and Labor may, if it is deemed necessary, get the private job counselor prescribed in Article 4-4 of the Employment Security Act to perform part of the services under paragraph (1). [Amended by Act No. 10339, Jun. 4, 2010]

Article 34 (Support for Local Governments, etc.)

If a local government or a not-for-profit cooperation or organization prescribed in the Presidential Decree carries out projects for the employment security, employment promotion and vocational skills development of insured persons, etc., in its region, the Minister of Employment and Labor may provide necessary support as prescribed in the Presidential Decree. [Amended by Act No. 10339, Jun. 4, 2010]

Enforcement Ordinance

Article 55 (Support for Local Governments, etc.)

(1) The “not-for-profit corporation or organization prescribed by the Presidential Decree” in Article 34 of the Act refers to a not-for-profit corporation established by the law or established after obtaining approval or permission from the State or a local government or a not-for-profit organization registered under the Assistance for Non-profit Non-governmental Organizations Act.
(2) The Minister of Employment and Labor may, if a local government or the not-for-profit corporation or organization under paragraph (1) carries out a project for the employment security, employment promotion and vocational skills development of the insured, etc., support all or part of the costs within the limits of the budget pursuant to Article 34 of the Act. [Amended by Presidential Decree No. 22269, Jul. 12, 2010]
(3) The Minister of Employment and Labor shall, if he/she intends to support the costs pursuant to paragraph (2), shall announce the types and contents of projects eligible for the support, the conditions for, contents and level of, and application method of the support, etc., in advance. [Amended by Presidential Decree No. 22269, Jul. 12, 2010]
Article 35 (Restriction, etc. on Support due to Fraudulent Acts)
(1) If a person has received or intends to receive support for employment security and vocational skills development projects under this Chapter in a false or other fraudulent manners, the Minister of Employment and Labor may restrict the support or order a return of the support received in a false or other fraudulent manners under the conditions prescribed in the Presidential Decree. [Amended by Act No. 9315, Dec. 31, 2008 and Act No. 10339, Jun. 4, 2010]
(2) In the case of ordering a return pursuant to paragraph (1), the Minister of Employment and Labor may, in addition to what has already been provided, collect an amount up to five times the amount received in a false or other fraudulent manners, in accordance with the standards prescribed in the Ordinance of the Ministry of Employment and Labor. [Amended by Act No. 9315, Dec. 31, 2008 and Act No. 10339, Jun. 4, 2010]
(3) Notwithstanding paragraphs (1) and (2), the provisions of Article 55 (1) and (2) and Article 56 (1) through (3) of the Workers Vocational Skills Development Act shall apply mutatis mutandis to restrictions on, the return and additional collection of, support for a person who has received or intends to receive, such support for vocational skills development projects in a false or other fraudulent manners. [Newly Inserted by Act No. 9315, Dec. 31, 2008 and amended by Act No. 10337, May 31, 2010]
(4) The Minister of Employment and Labor may not provide support for employment security and vocational skills development projects under this Chapter to those who have failed to pay insurance premiums, as prescribed by the Ordinance of the Ministry of Employment and Labor. [Amended by Act No. 9315, Dec. 31, 2008, Act No. 10339, Jun. 4, 2010 and Act No. 10895, Jul. 21, 2011]

Article 35 (Restriction on Assistance due to Improper Acts)

(1) With respect to a person who attempts to obtain, or has already obtained assistance provided in relation to any program for employment security and vocational skills development prescribed in this Chapter by fraud or other improper means, the Minister of Employment and Labor shall not provide the subsidies sought nor the remainder of subsidies yet to be offered, and shall restrict further assistance, as prescribed by Presidential Decree, within one year, and issue an order to return the subsidies already provided by fraud or other improper means.

(2) In issuing an order for return pursuant to paragraph (1), the Minister of Employment and Labor may charge an additional amount based on the criteria set forth by Ordinance of the Ministry of Employment and Labor, which may not exceed five times the full amount subject to return that the person has obtained by fraud or other improper means.

(3) Where a person who obtained assistance provided in relation to a program for employment security and vocational skills development has received an erroneously paid subsidy, the Minister of Employment and Labor may order him or her to return the subsidy.

(4) Notwithstanding paragraphs (1) and (2), Articles 55 and 56 of the Act on the Development of Vocational Skills of Workers shall apply mutatis mutandis to restriction on assistance, return and additional collection for those who have received or intend to receive assistance for vocational skills development programs by fraud or other improper means.

(5) The Minister of Employment and Labor may refuse to provide assistance for employment security and vocational skills development programs prescribed in this Chapter to those who are in arrears on premiums, as determined by Ordinance of the Ministry of Employment and Labor.

[Article 35 (1) is amended on Jan. 20, 2015 (Act No. 13041) in accordance with the Constitutional Court's decision that held this paragraph unconstitutional on Aug. 29, 2013]

Enforcement Ordinance

Article 56 (Restrictions on Granting of Subsidies on Account of Improper Acts)

(1) Where a person has received, or intends to receive, any of the subsidies or incentives specified in Articles 17, 19, 21-3, 21-4, 22, 22-2, 24, 25, 25-2, 26, 28, 28-2, 28-4, 29, 33, 35, 35-2, 36, 37, 37-2, 38, and 55 by fraud or other improper means, the Minister of Employment and Labor shall not grant, pursuant to Article 35 (1) of the Act, the unpaid amount of the subsidies or incentives that the person intends to receive, and shall also order such person to return the subsidies or incentives that have already been paid to him or her by fraud or other improper means.

(2) With respect to a person that has received, or intends to receive, any of the subsidies or incentives specified in paragraph (1) by fraud or other improper means as referred to in Article 35 (1) of the Act, the Minister of Employment and Labor shall impose restrictions on the payment of subsidies or incentives during the period specified in attached Table 2 in relation to any subsidy or incentive that falls under any of the subsidies or incentives specified in paragraph (1) that are to be newly granted, within one year from the date the Minister has issued an order to return or restricted the payment thereof under paragraph (1): Provided, That the period of the aforementioned payment restriction may be reduced up to one third of the said period of payment restriction, considering the extent of such impropriety, motivation, results, etc.

(3) A person who receives an order to return under paragraph (1) (including an order for an additional payment under Article 35 (2) of the Act; the same shall apply hereafter in this Article) shall pay the notified amount within 30 days from the date a notice thereof is issued to him or her. In such cases, such payment shall be made in lump sum, but it may be paid in installments, as determined by the Minister of Employment and Labor, where the amount of payment exceeds10 million won.

(4) Where a person who was ordered to return subsidies under paragraphs (1) and (3), or Article 56 of the Act on the Development of Vocational Skills of Workers (limited to orders to return the amount subsidized or loaned through fund) fails to meet such obligation to return within the given period, no subsidies or incentives specified in the Act or training expenses for vocational skills development specified in the Act on the Development of Vocational Skills of Workers shall be paid to him or her from the date such period ends until the date the obligation to return is fulfilled.

Article 36 (Performing Duties by Proxy)

The Minister of Employment and Labor may, if it is deemed necessary, entrust a part of his/her work under Articles 19, 27 through 31 to a person prescribed in the Presidential Decree. [Amended by Act No. 10339, Jun. 4, 2010]

Enforcement Ordinance

Article 57 (Performing Duties by Proxy)

(1) "Any person prescribed by Presidential Decree" referred to in Article 36 of the Act means the following:

1. The Human Resources Development Service of Korea prescribed in the Human Resources Development Service of Korea Act (hereinafter referred to as the "Human Resources Development Service of Korea");

2. Polytechnic colleges under the Act on the Development of Vocational Skills of Workers;

3. Workplace skills development organizations prescribed in Article 23 of the Act on the Development of Vocational Skills of Workers.

(2) When the Minister of Employment and Labor commissions a person to carry out any of his or her business affairs on his or her behalf pursuant to Article 36 of the Act, he or she shall subsidize the expenses incurred in carrying out such affairs through the fund.

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

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