EMPLOYMENT INSURANCE ACT [See entire ACT]

CHAPTER Ⅸ Penal Provisions

Article 116 (Penal Provisions)

(1) A person who conspires with a business owner and receives the following subsidies or benefits by fraud or other improper means, and such business owner shall be punished by imprisonment with labor for not more than five years or by a fine not exceeding 50 million won:

1. Subsidies for employment stability and vocational skills development programs under Chapter III;

2. Unemployment benefits under Chapter IV;

3. Child care leave benefits, benefits for reduced working hours during the period of child care, maternity leave benefits, etc. under Chapter V.

4. Job-seeking benefits and maternity benefits, etc. under Chapters V-2 and V-3;

(2) Any of the following persons shall be punished by imprisonment with labor for not more than three years or by a fine not exceeding 30 million won:

1. A business owner who dismisses an employee or gives any disadvantageous treatment to an employee, in violation of Article 105 (including cases applied mutatis mutandis in Article 77-5 (3) or 77-10 (3));

2. A person who receives subsidies or benefits under the subparagraphs of paragraph (1) by fraud or other improper means: Provided, That cases falling under paragraph (1) shall be excluded.

[This Article Wholly Amended on Aug. 27, 2019]

Article 117 (Joint Penal Provisions)

If a representative of a juristic person or, an agent, a servant or any other employee of a juristic person or an individual commits the offense prescribed in Article 116 in relation to the business of the juristic person or individual, the fine prescribed in the same Article shall be imposed on the juristic person or individual, in addition to the punishment of the offender:Provided that this shall not apply unless the juristic person or individual neglects to give considerable attention and supervision to the business concerned in order to prevent such offence.
[This Article Amended by Act No. 9315, Dec. 31, 2008]

Article 118 (Administrative Fines)

(1) An administrative fine of not more than three million won shall be imposed on a business owner or the representative, an agent, or employee of, or any other person employed by a service provider for insurance matters or labor platform operator who falls under any of the following:

1. A person who fails to make a report or makes a false report, in violation of Articles 15 (including cases applied mutatis mutandis in Articles 77-5 (1) and 77-10 (1)), 77-2 (3) and 77-7 (1);

2. A person who fails to issue a certificate of job-leaving or prepares and submits a false certificate of job-leaving, in violation of the latter part of Article 42 (3) (including cases applied mutatis mutandis in Articles 77-5 (2) and 77-10 (2));

3. A person who fails to submit a certificate of job-leaving or prepares and submits a false certificate of job-leaving, in violation of the latter part of Article 43 (4) (including cases applied mutatis mutandis in Articles 77-5 (2) and 77-10 (2));

4. A person who fails to comply with a request for reporting or makes a false report under Article 108 (1) (including cases applied mutatis mutandis in Article 77-5 (3) or 77-10 (3)), who fails to submit a document in response to the same request or submits a false document, or fails to appear in person;

5. A person who fails to comply with a request to issue a certificate under Article 108 (2) (including cases applied mutatis mutandis in Articles 77-5 (3) and 77-10 (3));

6. A person who fails to answer questions, makes a false statement, or refuses, obstructs or evades an investigation prescribed in Article 109 (1) (including cases applied mutatis mutandis in Articles 77-5 (3) and 77-10 (3)).

(2) An administrative fine of up to one million won shall be imposed on an insured, an eligible recipient, or a claimant for the remaining unemployment benefits who falls under either of the following subparagraphs:

1. A person who fails to make a report or makes a false report, who fails to submit a document or submits a false document, or fails to appear in person, as required under Article 108 (3) (including cases applied mutatis mutandis in Articles 77-5 (3) and 77-10 (3));

2. A person who fails to answer questions, makes a false statement, or refuses, obstructs or evades an inspection prescribed in Article 109 (1) (including cases applied mutatis mutandis in Articles 77-5 (3) and 77-10 (3)).

(3) An administrative fine of up to one million won shall be imposed on a person who fails to respond to, or makes a false response to, inquiries by an examiner or the Appeal Committee or who refuses, obstructs, or evades an inspection conducted in accordance with Article 87 (including cases applied mutatis mutandis in Articles 77-5 (3) and 77-10 (3).

(4) The Minister of Employment and Labor shall impose and collect administrative fines under paragraphs (1) through (3) as prescribed by Presidential Decree.

(5) Deleted.

(6) Deleted.

(7) Deleted.

[Moved from Article 117; Previous Article 118 moved to Article 117 ]

Enforcement Ordinance

Article 146 (Imposition of Fines for Negligence)

The amount of the fine for negligence referred to in Article 118 (1) through (3) is shown in Table 3:Provided that the Minister of Employment and Labor may raise or reduce the amount concerned by up to half in consideration of the degree and frequency of the offense, the motive and results of the offense, etc. and in the case of raising the amount, it shall not exceed the maximum amount prescribed in Article 118 (1) through (3) of the Act. [Amended by Presidential Decree No. 22269, Jul. 12, 2010, Presidential Decree No. 22603, Dec. 31, 2010 and Presidential Decree No. 24155, Oct. 29, 2012]
[This Article Wholly Amended by Presidential Decree No. 21015, Sep. 18, 2008]
[Implemented Jan. 1, 2013] Article 146

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

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