ACT ON THE COLLECTION, ETC. OF PREMIUMS FOR EMPLOYMENT INSURANCE AND INDUSTRIAL ACCIDENT COMPENSATION INSURANCE [See entire ACT]

CHAPTER Ⅳ Insurance Work Service Agency

Article 33 (Insurance Work Service Agency)

(1) An organization with employers as its members established under a Special Act, a corporation established with the permission of the Minister of Employment and Labor pursuant to Article 32 of the Civil Act, and other corporations, certified public labor attorneys or certified tax accountants (hereinafter referred to as “corporations, etc.”) that meet the criteria prescribed by the Presidential Decree may be entrusted by an employer to do insurance work (hereinafter referred to as “insurance work”), such as reporting premiums, making a report on the insured of employment insurance, etc., which the employer should carry out in connection with a local employment labor office or the Corporation. In this case, the scope of employers eligible to entrust insurance work and the scope of work able to be entrusted to corporations, etc., shall be prescribed by the Presidential Decree. [Amended by Act No. 10339, Jun. 4, 2010 and Act No. 12526, Mar. 24, 2014]
(2) If corporations, etc. intend to be entrusted with insurance work as prescribed in paragraph (1), it shall obtain authorization from the Corporation under the conditions as prescribed by the Presidential Decree.
(3) If corporations, etc. (hereinafter referred to as “insurance work service agencies”) which have obtained authorization pursuant to paragraph (2) intend to modify authorized matters, they shall obtain authorization from the Corporation over the matters prescribed by the Presidential Decree, such as entrusted areas, etc., and make a report to the Corporation over the matters prescribed by the Ordinance of the Ministry of Employment and Labor, such as its location, etc. [Amended by Act No. 10339, Jun. 4, 2010]
(4) If an insurance work service agency intends to discontinue all or part of the work under paragraph (1), it shall report this to the Corporation.
(5) If it is deemed that an insurance work service agency illegally or unfairly handles insurance work or neglects the handling thereof, the Corporation may cancel the authorization under paragraph (2).
[This Article Wholly Amended by Act No. 9896, Dec. 30, 2009]

Enforcement Ordinance

Article 44 (Insurance Work Service Agency)

“Corporations or individuals that meet the criteria prescribed by the Presidential Decree” in Article 33 (1) of the Act refer to those described in any of the following subparagraphs:
1. A juristic person who has obtained authorization or permission from the competent authorities according to related laws;and
2. A person who has been registered pursuant to Article 5 of the certified public labor attorney Act and has been conducting duties under Article 2 of the same Act for three years or more.
[This Article Wholly Amended by Presidential Decree No. 22408, Sep. 29, 2010]

Enforcement Ordinance

Article 45 (Scope of Business Owners Permitted to Delegate Insurance Business)

(1) A business owner who is a policyholder under Article 5 and 48-2 (1) and 48-3 (1) of the Act may delegate insurance business to an organization, corporation, certified public labor attorney, or tax accountant (hereinafter referred to as "insurance business agency") authorized by COMWEL in order to conduct insurance business on its behalf under Article 33 (1) of the Act.

(2) Deleted.

(3) Where insurance business is delegated by a business owner referred to in paragraph (1) or delegation of insurance business is terminated, the relevant insurance business agency shall report such fact to COMWEL, within 14 days from the date insurance business is delegated or terminated.

[This Article Wholly Amended by Presidential Decree No. 22408, Sep. 29, 2010]

Enforcement Ordinance

Article 46 (Scope of Insurance Work Able to Be Entrusted)

The scope of work able to be entrusted to an insurance work service agency pursuant to the latter part of Article 33 (1) of the Act is as follows:
1. Reporting total remuneration, etc. pursuant to Article 16-10 of the Act
2. Reporting estimated and final premiums;
3. Administering qualifications for the insured of employment insurance;
4. Reporting the establishment, change and termination of insurance relationships;and
5. Other insurance work that an employer needs to carry out in connection with a regional labor office or the Corporation.
[This Article Wholly Amended by Presidential Decree No. 22408, Sep. 29, 2010]

Enforcement Ordinance

Article 47 (Authorization of Insurance Work Service Agency)

1) If an agency intends to be entrusted with insurance work pursuant to Article 33 (2) of the Act, it shall submit an application for authorization containing such matters as the contents of entrusted work, and entrusted areas, along with the following documents, to the Corporation:
1. In case of agencies falling under subparagraph 1 of Article 44:A copy of a document proving that the agency has obtained authorization or permission from or has been registered with the competent authorities;
2. In case of falling under subparagraph 2 of Article 44:A copy of a document proving that the agency is a person described in subparagraph 2 of Article 44;
3. In case of corporations or groups:A copy of bylaws or articles;
4. A copy of rules (hereinafter referred to as “rules on entrustment of insurance work”) that the agency will use when making a contract on entrustment of insurance work with a business owner.
(2) The rules on the entrustment of insurance work shall include matters described in the following subparagraphs:
1. Procedures for the entrustment of insurance work and termination of the entrustment;
2. Methods of and procedures for handling insurance work;
3. Accounting methods and procedures of the insurance work service agency;
4. Matters concerning the administration of qualifications for the insured of employment insurance and employment relationship administration for workers covered under industrial accident compensation insurance;and
5. Other matters concerning responsibilities for reporting and paying total remuneration and premiums.
(3) If corporations or groups intend to obtain authorization to be entrusted with insurance work pursuant to Article 33 (2) of the Act, it is clearly stated in its bylaws, articles, etc. that he/she can be entrusted to perform insurance work.
(4) “The matters prescribed by the Presidential Decree, such as entrusted areas, etc.” in Article 33 (3) of the Act refer to the following matters:
1. Entrusted areas;and
2. Rules on the entrustment of insurance work.
(5) An insurance work service agency shall apply for authorization to the Corporation no later than seven days before the date of change, if it intends to change authorized matters pursuant to Article 33 (3) of the Act, and it shall report to the Corporation no later than thirty days before the date of discontinuation, if it intends to discontinue entrusted work pursuant to Article 33 (4) of the Act.
[This Article Wholly Amended by Presidential Decree No. 22408, Sep. 29, 2010]

Enforcement Ordinance

Article 48 (Cancellation of Authorization of Insurance Work Service Agency)

(1) If an insurance work service agency falls under any of the following subparagraphs, the Corporation may cancel the authorization pursuant to Article 33 (5) of the Act:Provided that in case it falls under subparagraph 1, the authorization shall be cancelled:
1. In case where the authorization is obtained in false or other fraudulent ways;
2. In case where insurance work service is suspended consecutively for two months or longer without justifiable reasons;
3. In case where insurance work is carried out in false or other fraudulent ways;and
4. In case where the insurance work service agency violates laws or does not comply with the order under laws.
(2) If the Corporation cancels the authorization of an insurance work service agency pursuant to paragraph (1), it shall inform the insurance work service agency and the employer entrusting the insurance work of this fact without delay.
[This Article Wholly Amended by Presidential Decree No. 22408, Sep. 29, 2010]

Enforcement Ordinance

Article 49 (Hearings)

The Corporation shall, if it intends to cancel the authorization of an insurance work service agency pursuant to Article 33 (5) of the Act, hold a hearing.
[This Article Wholly Amended by Presidential Decree No. 22408, Sep. 29, 2010]

Article 34 (Notification to Insurance Work Service Agency)

The Corporation may give notification, etc. of the payment of premiums and other charges under this Act to an insurance work service agency in substitution for giving notification, etc. to an employer.
[This Article Wholly Amended by Act No. 9896, Dec. 30, 2009]

Enforcement Ordinance

Article 50 (Notification by Insurance Work Service Agency)

When an insurance work service agency receives notification, etc. of the payment of premiums and other charges under the Act pursuant to Article 34 of the Act, it shall inform the employer of this without delay.
[This Article Wholly Amended by Presidential Decree No. 22408, Sep. 29, 2010]

Article 35 (Obligation of Insurance Work Service Agency)

If the Corporation collects the additional charges under Article 24, the arrears under Article 25 and the amount equivalent to industrial accident compensation insurance benefits under Article 26 and reasons for the collection are attributable to an insurance work service agency, the insurance work service agency shall pay them the amount concerned to the extent of its liability.
[This Article Wholly Amended by Act No. 9896, Dec. 30, 2009]

Article 36 (Keeping, etc. of Books by Insurance Work Service Agency)

An insurance work service agency shall make and keep in its office books and other documents specifying matters concerning its insurance work under the conditions as prescribed by the Presidential Decree.
[This Article Wholly Amended by Act No. 9896, Dec. 30, 2009]

Enforcement Ordinance

Article 51 (Keeping, etc. of Books by Insurance Work Service Agency)

(1) An insurance work service agency shall prepare the following documents and keep them for three years or more pursuant to Article 36 of the Act:
1. A list of employers who have entrusted insurance work;
2. Books on collection affairs by employer;
3. Books on insurance work other than collection affairs such as the report of the insured, and relevant documents, by employer;
4. Documents relating to the entrustment of insurance work between the employer and the insurance work service agency;
5. Documents relating to applications for and receipts of the subsidies for vicariously carrying out insurance work under Article 52;and
6. Documents relating to the notification of the payment of premiums and other charges imposed on the employer.
(2) The documents prescribed in paragraph (1) may be prepared and kept as electronic documents pursuant to subparagraph 1 of Article 2 of the Framework Act on Electronic Documents and Transactions. [Amended by Presidential Decree No. 24076, Aug. 31, 2012]
[This Article Wholly Amended by Presidential Decree No. 22408, Sep. 29, 2010]

Article 37 (Support, etc. for Insurance Work Service Agency)

If an insurance work service agency is entrusted with insurance work pursuant to Article 33 (1), the Corporation may pay expenses for collection and provide other subsidies under the conditions as prescribed by the Presidential Decree.
[This Article Wholly Amended by Act No. 9896, Dec. 30, 2009]

Enforcement Ordinance

Article 52 (Subsidization for Insurance Business Agencies)

(1) COMWEL may grant any of the following subsidies (hereinafter referred to as "subsidies for vicarious execution of insurance business") to insurance business agencies pursuant to Article 37 of the Act:

1. Where an insurance business agency delegated with insurance business by a business owner, whose regular workforce is less than 30, pays insurance premiums and other money collectable, the relevant subsidies (hereinafter referred to as "subsidies for vicarious execution of collection business");

2. Where an insurance business agency delegated with insurance business by a business owner, whose regular workforce is less than 30, manages insurance business, such as managing the insured for employment insurance or industrial accident insurance and reporting the total remuneration, the relevant subsidies (hereinafter referred to as "subsidies for vicarious management, etc. of the insured");

3. Where an insurance business agency delegated with insurance business by a business owner, whose regular workforce is less than 30, reports the formation of an insurance relationship for employment insurance or industrial accident insurance, the relevant subsidies (hereinafter referred to as "subsidies for facilitation of application").

(2) Subsidies for vicarious execution of insurance business shall be granted in compliance with the standards determined by the Minister of Employment and Labor in consideration of the past payment performance of insurance premiums and other money collectable of the business owner who has delegated insurance business, the scale of his/her business, the past performance of management of the insured such as the acquisition and forfeiture of an insured status, the period of delegation, etc.; but subsidies for vicarious execution of collection business shall be granted semiannually, and subsidies for vicarious management, etc. of the insured and subsidies for facilitation of application shall be granted quarterly.

(3) Where an insurance business agency reports discontinuance of business during the insurance year pursuant to Article 33 (4) of the Act, the past payment performance of insurance premiums and other money collectable referred to in paragraph (2), shall be calculated based upon the past performance of insurance premiums and other money collectable paid during the period from the first day of the relevant half-year to the 15th day of the middle month of the quarter in which the date of discontinuance falls; but the amount paid by the relevant business owner, who has delegated insurance business, under a disposition on default taken pursuant to Article 28 of the Act shall be excluded therefrom.

(4) The period of delegation referred to in paragraph (2) shall be calculated from the date the relevant insurance business agency reports delegation of insurance business to COMWEL pursuant to Article 45 (3).

(5) Where an insurance business agency intends to receive subsidies for vicarious execution of insurance business, it shall file an application for payment of such subsidies with COMWEL, as prescribed by Ordinance of the Ministry of Employment and Labor, after the last day (referring to the date of discontinuance, if discontinuance of business has been reported pursuant to Article 33 (4) of the Act) of each half-year, for subsidies for vicarious execution of collection business and after the last day of each quarter, for subsidies for vicarious management, etc. of the insured and subsidies for facilitation of application.

[This Article Wholly Amended by Presidential Decree No. 22408, Sep. 29, 2010]

Enforcement Ordinance

Article 53 (Restrictions on Support for Insurance Work Service Agency)

(1) If an insurance work service agency causes a loss in collecting premiums and other charges, the Corporation may subtract the amount equivalent to the loss from the subsidy for handling collection affairs and/or the subsidy for managing the insured, etc.
(2) If an insurance work service agency neglects to make a report on the aquisition or loss of qualifications, etc. for the insured of employment insurance and fails to comply with a correction order after being issued with the order twice or more by the head of the responsible employment security center, the Corporation shall cut the subsidy for managing the insured etc. allocated to the insurance work service agency concerned by 50/100 and if it fails to comply after being issued with the correction order three times or more, the Corporation shall not pay the subsidy for managing the insured, etc.
[This Article Wholly Amended by Presidential Decree No. 22408, Sep. 29, 2010]

Enforcement Ordinance

Article 54 (Financing Subsidies for Carrying Out Insurance Work)

(1) The subsidy for handling collection affairs shall be financed from the Employment Insurance Fund and the Industrial Accident Compensation Insurance and Prevention Fund in proportion to the percentage of each amount for employment insurance and for industrial accident compensation insurance in the amount paid by the employer.
(2) The subsidy for promoting coverage and the subsidy for managing the insured etc. shall each be financed equally from the Employment Insurance Fund and the Industrial Accident Compensation Insurance and Prevention Fund. Provided that, in case of work limited to employment insurance or industrial accident compensation insurance, the Employment Insurance Fund or the Industrial Accident Compensation Insurance and Prevention Fund shall each finance the whole amount.
[This Article Wholly Amended by Presidential Decree No. 22408, Sep. 29, 2010]

Enforcement Ordinance

Article 54-2 (Scope of Data subject to Request for Provision)

"Data prescribed by Presidential Decree" in the former part of Article 40 (1) of the Act means any of the following:

1. Data on reports by workplaces; and data on the monthly insurance contributions for the employee insured referred to in the National Health Insurance Act;

2. Data on reports on workplace-based insured persons; and data on the imposition of monthly pension contributions referred to in the National Pension Act;

3. Business registration data referred to in the Value-Added Tax Act;

4. Data on persons enrolled in the pension scheme for private school teachers and staff referred to in the Pension for Private School Teachers and Staff Act;

5. Data on permission for, and reports on, the felling of standing timber, and extracting or gathering of forest products referred to in the Creation and Management of Forest Resources Act;

6. Data on registration of fire-fighting system installation business; and data on the past performance of fire-fighting system installations referred to in the Fire-Fighting System Installation Business Act;

7. Data on policyholders of accident compensation insurance for fishing vessel crew members referred to in the Act on Accident Compensation Insurance for Fishers and Fishing Vessels;

8. Data on registration of electrical construction business; and data on the past performance of electrical construction works referred to in the Electrical Construction Business Act;

9. Data relating to construction projects, in the contract-related information referred to in the Electronic Procurement Utilization and Promotion Act;

10. Data relating to construction projects, among data on reports on the results of contracts referred to in the Act on Contracts to Which the State Is a Party;

11. Data on registration of information and communications construction business; and data on the past performance of information and communications construction works referred to in the Information and Communications Construction Business Act;

12. Resident registration data referred to in the Resident Registration Act;

13. Data required to collect insurance premiums or other money collectable, such as a certified copy of a construction machinery register, and data on registration of construction machinery business referred to in the Construction Machinery Management Act; a certified copy of a building register referred to in the Building Act; a certified copy of a motor vehicle register referred to in the Motor Vehicle Management Act; and a certified copy of a site parcels-register and a forest area parcels-register referred to in the Act on the Establishment and Management of Spatial Data;

14. Data required to verify the formation and termination of an insurance relationship and to impose, collect, and settle insurance premiums, such as data on registration of construction business, data on reports on discontinuance or transfer of business, and data on the past performance of construction works referred to in the Framework Act on the Construction Industry; data on building permission or building reports, data on reports on the commencement of construction works, data on revocation of building permission, and data on approval for use of buildings referred to in the Building Act;

15. Data required to verify the formation and termination of an insurance relationship, remunerations of employees, and objects eligible for subsidization for employment insurance premiums, such as data on global income in the reports on withholding of income tax, statements of payment of wage and salary income, and in preliminary and final returns on the tax base for global income tax, and data on business income of persons in special types of employment specified in the statements of payment of business income of residents referred to in the Income Tax Act; data on remuneration in the standard statement of profit or loss referred to in the Corporate Tax Act; and data on the total amount in the statement of tax bases among the reports on value-added tax for general taxable persons referred to in the Value-Added Tax Act;

16. Property taxation data referred to in the Local Tax Act;

17. Data on the insured by the public officials pension under the Public Officials Pension Act;

18. Registration data on housing constructors and housing construction work records under the Housing Act;

19. Registration data on cultural heritage repair business entities and cultural heritage repair records under the Act on Cultural Heritage Maintenance;

20. Any of the following data required to verify the formation and termination of an insurance relationship and to impose insurance premiums:

(a) Data on social welfare foundations and social welfare facilities defined in subparagraphs 3 and 4 of Article 2 of the Social Welfare Services Act, and on employees thereof;

(b) Data on social service providers defined in subparagraph 4 of Article 2 of the Act on the Use of Social Services and the Management of Vouchers, and on employees thereof;

(c) Data on child-care centers defined in subparagraph 3 of Article 2 of the Child Care Act, and on infant care teachers and staff defined in subparagraph 5 of Article 2 of the same Act;

(d) Data on persons engaging in self-supporting labor activities under Article 15 of the National Basic Living Security Act.

[This Article Newly Inserted by Presidential Decree No. 25047, Dec. 30, 2013]

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

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