Article 13 (Insurer)

The insurer of national health insurance shall be the National Health Insurance Corporation (hereinafter referred to as the "Corporation").

Article 14 (Services)

(1) The NHIS shall administer the following affairs:

1. Supervision of the eligibility of the insured and their dependents;

2. Imposition and collection of insurance contributions and other fees provided for in this Act;

3. Administration of insurance benefits;

4. Preventive programs prescribed by Presidential Decree, which are conducted by utilizing information on the current state of providing health care benefits and the results of medical examination for the purpose of early detection and prevention of diseases and health management of the insured and their dependents;

5. Payment of insurance benefit costs;

6. Programs for managing, operating, and increasing its assets;

7. Operation of medical facilities;

8. Education and training and public relation in connection with health insurance;

9. Investigative research and international cooperation in connection with health insurance;

10. Matters prescribed by this Act as the service of the NHIS;

11. Operations entrusted under the National Pension Act, the Act on the Collection of Insurance Premiums for Employment Insurance and Industrial Accident Compensation Insurance, the Wage Claim Guarantee Act, and the Asbestos Injury Relief Act (hereinafter referred to as "applicable Acts to the entrustment of collection");

12. Other services entrusted under this Act or other statutes and regulations;

13. Others determined by the Minister of Health and Welfare as being necessary in connection with health insurance.

(2) Programs for managing, operating, and increasing assets under paragraph (1) 6 shall be conducted in accordance with each of the following methods, taking the stability and profitability into consideration:

1. Making deposits or setting up trust at postal service offices or banks established under the Banking Act;

2. Purchase of securities issued directly, or of which fulfillment of the obligation is guaranteed, by the State, local governments, or banks established under the Banking Act;

3. Purchase of securities issued by a corporation established under any Special Act;

4. Purchase of securities issued by trust business entities established under the Financial Investment Services and Capital Markets Act or collective investment business entities established under the same Act;

5. Acquisition of real estates for use in operating the NHIS or partial lease thereof;

6. Other programs prescribed by Presidential Decree as necessary to increase the assets of the NHIS.

(3) If a service is provided, or the use of the facilities of the NHIS is allowed to, a specific person, the NHIS may collect a service charge or a use fee for the provision of the service or the use of the facilities, as prescribed by the NHIS' articles of incorporation.

(4) The NHIS shall disclose to the public the information that it maintains and manages in connection with health insurance as prescribed by the Official Information Disclosure Act.

Article 15 (Legal Personality of Corporation)

(1) The Corporation shall be a juristic person.
(2) The Corporation shall come into existence upon registering its establishment at the seat of its principal office.
Article 16 (Office)(1) Location of the principal office of the Corporation shall be determined by its articles of incorporation.
(2) If necessary, the Corporation may establish branch offices as prescribed by its articles of incorporation.

Article 16 (Office)

)(1) Location of the principal office of the Corporation shall be determined by its articles of incorporation.
(2) If necessary, the Corporation may establish branch offices as prescribed by its articles of incorporation.

Article 17 (Articles of Incorporation)

(1) The articles of incorporation of the Corporation shall state the following matters:
1. Objectives;
2. Its name;
3. Seat of office;
4. Matters concerning its executives and employees;
5. Management of board of directors;
6. Matters concerning its financial operation committee;
7. Matters concerning insurance premiums and insurance benefits;
8. Matters concerning its budget and settlement of accounts;
9. Matters concerning its assets and accounting;
10. Services and provision thereof;
11. Matters concerning amendment of the articles of incorporation;
12. Matters concerning public announcements.
(2) When the Corporation intends to modify its articles of incorporation, it shall obtain authorization of the Minister of Health and Welfare.

Article 18 (Registration)

The registration of incorporation of the Corporation shall include the following matters:
1. Objectives;
2. Its name;
3. Seat of the principal office and branch offices;
4. Name, address and resident registration number of the president.

Article 19 (Dissolution)

Matters regarding the dissolution of the Corporation shall be prescribed by Acts.

Article 20 (Executives)

(1) The Corporation shall have, as its executives, one president, fourteen directors and one auditor. In such cases, the president, five directors and the auditor shall be standing.
(2) The president shall be appointed by the President of the Republic of Korea upon recommendation of the Minister of Health and Welfare from among several persons recommended by the executive recommendation committee established under Article 29 of the Act on the Management of Public Institutions (hereinafter referred to as "executive recommendation committee").
(3) Full-time directors shall be appointed by the president following the recommendation procedures prescribed by Ordinance of the Ministry of Health and Welfare.
(4) As part-time directors, following persons shall be appointed by the Minister of Health and Welfare:
1. Persons, each one of whom is recommended respectively by labor unions, an employer organization, a civil organization, a consumer organization, an agricultural and fisheries organization, and a senor citizens' organization;
2. Three relevant public officials recommended as prescribed by Presidential Decree.
(5) The auditor shall be appointed by the President of the Republic of Korea upon recommendation by the Minister of Strategy and Finance from among several persons recommended by the executive recommendation committee.
(6) Part-time directors prescribed in paragraph (4) may receive reimbursement for actual expenses, as prescribed by the articles of incorporation.
(7) The term of the office of the president shall be three years, and that of directors (excluding directors who are public officials) and auditor shall be two years respectively.

Enforcement Ordinance

Article 21 (Collection Director)

(1) Among standing directors, a director who has extensive knowledge and experience in management, economy and social insurance and who meets the qualification determined by Ordinance of the Ministry of Health and Welfare shall be appointed as a director in charge of the operations under Article 14 (1) 2 and 11.
(2) The Corporation shall have a committee for nominating collection directors (hereinafter referred to as "Nomination Committee") in order to nominate candidates for a collection director, having directors as its members. In such cases, a director nominated by the president shall be the chairperson of the Nomination Committee.
(3) The Nomination Committee shall publish recruitment advertisement for a collection director on major daily newspapers, and in addition, may verify a candidate who is regarded as qualified, or request a specialized organization to verify such candidate.
(4) The Nomination Committee shall screen persons recruited pursuant to paragraph (3) according to the candidate screen criteria for a collection director determined by Ordinance of the Ministry of Health and Welfare, and consult on the contract terms with the collection director nominee.
(5) The president shall conclude a contract with the candidate for a collection director in accordance with the result of screening and consultation conducted under paragraph (4), and in such a case, a standing director shall be deemed appointed under Article 20 (3).
(6) Matters necessary for the consultation on contract terms under paragraph (4), contract conclusion, etc. under paragraphs (5) shall be prescribed by Ordinance of the Ministry of Health and Welfare.
[This Article Newly Inserted by Act No. 9690, May 21, 2009]

Article 22 (Duties of Executives)

(1) The president shall represent the Corporation, exercise overall control over its affairs, and take responsibility for the management performance of the Corporation.
(2) The standing directors shall conduct the affairs of the Corporation under the order of the president.
(3) Where the president is unable to perform his/her duties due to an unavoidable circumstance, a standing director determined by the articles of incorporation shall act on behalf of the president, and where no standing director exists or a standing director is unable to perform such duties, an executive determined by articles of incorporation shall act on behalf of the president.
(4) The auditor shall audit the status of the Corporation, its accounting and assets status.

Article 23 (Disqualification of Executives)

No person who falls under any of the following subparagraphs may become an executive of the Corporation:
1. A person who is not a national of the Republic of Korea;
2. A person falling under any subparagraph of Article 34 (1) of the Act on the Management of Public Institutions.

Article 24 (Obligatory Retirement and Dismissal of Executives)

(1) If an executive falls under any of the subparagraphs of Article 23, or is confirmed to fall thereunder at the time of his/her appointment, he/she shall be obligated to retire.
(2) If an executive falls under any of the following subparagraphs, the person with the power to appoint him/her may dismiss him/her:
1. Where he/she is deemed unable to perform his/her duties due to a physical or mental disability;
2. Where he/she breaches an official duty;
3. Where he/she causes loss to the Corporation, either intentionally or through gross negligence;
4. Where he/she commits an act that damages his/her dignity, regardless of whether while on duty or off duty;
5. Where he/she violates an order of the Minister of Health and Welfare issued under this Act.

Article 25 (Prohibition, etc. of Executive's Holding Concurrent Offices)

(1) Standing executives and employees of the Corporation may not engage in another business having a commercial purpose, in addition to the duties assigned to them.
(2) Where a standing executive of the Corporation obtains permission from the person with the power to appoint or recommend him/her, or where an employee of the Corporation obtains permission from the president thereof, such executive or employee may concurrently perform the affairs for non-profit purpose.

Article 26 (Board of Directors)

(1) The Corporation shall have a board of directors in order to deliberate on and resolve important matters (referring to matters prescribed in Article 17 (1) of the Act on the Management of Public Institutions) of the Corporation.
(2) The board of directors shall be comprised of the president and directors.
(3) The auditor may appear before the board of directors to speak.
(4) Matters necessary with regard to the issues to be resolved by the board of directors and the operation of the board of directors shall be prescribed by Presidential Decree.

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Enforcement Ordinance

Article 27 (Appointment and Dismissal of Employees)

The president shall appoint and dismiss employees as prescribed by the articles of incorporation.

Article 28 (Legal Fiction of Public Officials in Application of Penal Provisions)

The executives and the employees of the Corporation shall be deemed public officials for the purposes of Articles 129 through 132 of the Criminal Act.

Article 29 (Rules, etc.)

Rules relevant to the organization, human resource related affairs, remunerations, and accounting of the Corporation shall be determined with approval from the Minister of Health and Welfare after undergoing a resolution of the board of directors.

Article 30 (Selection and Appointment of Agent)

The president may select and appoint an agent from among the directors or employees of the Corporation in order to have the agent act on behalf of him/her in all judicial or extra-judicial acts relevant to the affairs of the Corporation.

Article 31 (Limitation on Representative Powers)

(1) In connection with the matters with regard to which the interests of the Corporation and the interests of the president are in conflict, the president is not allowed to represent the Corporation. In such cases, the auditor shall represent the Corporation.
(2) Paragraph (1) shall apply mutatis mutandis to any litigation between the Corporation and the president.

Article 32 (Delegation of Powers of Chairperson of Board of Directors)

From among the powers of the president referred to in this Act, those prescribed by Presidential Decree, such as restriction of benefits and notice to pay insurance premiums, may be delegated to the heads of the branch offices pursuant to the articles of incorporation.

Enforcement Ordinance

Article 33 (Financial Operation Committee)

(1) The Corporation shall have a financial operation committee to deliberate and resolve on the matters related to insurance finance, such as contracts of medical care benefit costs provided for in Article 45 (1), the deficit disposal provided for in Article 84.
(2) The chairperson of the financial operation committee shall be elected by the committee from among the committee members referred to in Article 34 (1) 3.

Article 34 (Composition, etc. of Financial Operation Committee)

(1) The financial operation committee shall be comprised of the following members:
1. 10 members representing the employer-provided policyholders;
2. 10 members representing the locally provided policyholders;
3. 10 members representing the public interest.
(2) As the members referred to in paragraph (1), the Minister of Health and Welfare shall appoint or commission the following persons:
1. As the committee members referred to in paragraph (1) 1, five persons each recommended by the labor unions' organization and by the employers' organization;
2. As the committee members referred to in paragraph (1) 2, persons recommended by the agricultural and fishery organization, the urban self-employed persons' organization and the civil organization as prescribed by Presidential Decree;
3. As the committee members referred to in paragraph (1) 3, relevant public officials and persons with extensive knowledge on and experience in health insurance who are determined by Presidential Decree.
(3) The term of the office of the members of the financial operation committee (excluding the members who are public officials) shall be two years: Provided, That the term of the office of any member newly appointed to fill a vacancy of a resigned member, etc. shall be the remaining term of his/her predecessor.
(4) Matters necessary with regard to the operation, etc. of the financial operation committee shall be prescribed by Presidential Decree.

Enforcement Ordinance

Enforcement Ordinance

Enforcement Ordinance

Enforcement Ordinance

Article 35 (Accounting)

(1) The fiscal year of the NHIS shall be based on the fiscal year of the Government.

(2) The NHIS shall administer the finance of the employee insured and the self-employed insured in an integrated manner.

(3) The NHIS shall, separately from its other accounting, make accounting treatment for the health insurance program, as well as for the national pension program, employment insurance program, industrial accident compensation insurance program, and wage claim guarantee program entrusted pursuant to Acts authorizing the entrustment of collection, independently from one another.

Article 36 (Budget)

The Corporation shall compile a proposed budget for each fiscal year with separate contents thereof based on the nature thereof, and obtain approval from the Minister of Health and Welfare. This shall also apply where it intends to modify the budget.

Article 37 (Loans)

The Corporation may borrow funds where a shortage of cash exists in making disbursements: Provided, That approval from the Minister of Health and Welfare is necessary for any long-term loan with a term of at least one year.

Article 38 (Reserve Funds)

(1) Out of the funds remaining after the settlement of accounts for each fiscal year, the Corporation shall accumulate as its reserve funds an amount equivalent to at least 5/100 of the expenses required for payment of insurance benefits for that fiscal year until the funds reach 50/100 of the expenses required for that fiscal year.
(2) The reserve funds referred to in paragraph (1) may not be used except to meet shortages in the expenses incurred in paying insurance benefits or where a shortage of cash exists in making disbursements; where the shortage of cash in making disbursements is met out of the reserve funds, the amount shall be made up for within the fiscal year concerned.
(3) Matters necessary for the method of managing, operating, etc. the reserve funds referred to in paragraph (1) shall be prescribed by the Minister of Health and Welfare.

Article 39 (Settlement of Accounts)

(1) The Corporation shall prepare a statement of accounts and a report on business performance for each fiscal year and report to the Minister of Health and Welfare thereon by the end of February in the following year.
(2) When the Corporation reports to the Minister of Health and Welfare on it statement of accounts and business report under paragraph (1), it shall publicly announce the contents thereof as prescribed by Ordinance of the Ministry of Health and Welfare.

Article 40 (Mutatis Mutandis Application of Civil Act)

Unless otherwise prescribed by this Act and the Act on the Management of Public Institutions, the provisions of the Civil Act that are relevant to an incorporated foundation shall apply mutatis mutandis to the Corporation.

Article 39-2 (Contribution to Projects for Supporting Disastrous Medical Expenses)

The NHIS may contribute fund within its budgetary limits every year to be appropriated for the expenses used for the project for supporting disastrous medical expenses under the Act on Support of Disastrous Medical Expenses. In such case, matters necessary for the upper limit amount of such contribution shall be prescribed by Presidential Decree.

[This Article Newly Inserted on Jan. 16, 2018]

Enforcement Ordinance