Article 24 (Establishment of National Pension Service)

The National Pension Service (hereinafter referred to as the "Service") shall be established to effectively provide services commissioned by the Minister of Health and Welfare to attain the purpose set forth in Article 1.

Article 25 (Affairs of the Service)

The Service shall perform the following affairs:
1. Management and maintenance of records on insured persons;
2. Charging contributions;
3. Determination and disbursement of benefits;
4. Welfare promotion services, such as old age planning services, fund lending, and the establishment and operation of welfare facilities for the current and formerly insured and beneficiaries referred to in Article 50;
5. Fund lending to a currently or formerly insured to increase the Fund;
6. Entrusted affairs under this Act or other statutes;
7. Other matters entrusted by the Minister of Health and Welfare in relation to national pension services.

Article 26 (Legal Personality of the Service)

The Service shall be a corporation.

Article 27 (Offices)

(1) The seat of the principal office of the Service and the department administered by the fund director under Article 31 shall be Jeollabuk-do.
(2) The Service may establish branch offices, as prescribed by the articles of incorporation, if necessary.

Article 28 (Articles of Incorporation)

(1) The articles of incorporation of the Service shall include the following matters:
1. Objectives;
2. Organizational Name;
3. Matters concerning the principal and branch offices;
4. Matters concerning executive officers and employees;
5. Matters concerning the Board of Directors;
6. Matters concerning services;
7. Matters concerning budget and settlement of accounts;
8. Matters concerning assets and accounts;
9. Matters concerning amendments to the articles of incorporation;
10. Matters concerning the enactment, amendment and abolition of rules and regulations;
11. Matters concerning public notices.
(2) If the Service desires to amend the articles of incorporation, it shall obtain the approval of the Minister of Health and Welfare.

Article 29 (Registration of Establishment)

The Service shall come into existence upon the completion of its registration of establishment at the location of its principal office.

Article 30 (Executive Officers)

(1) The Service shall include, as executive officers of the board, one chief executive officer, three or fewer standing directors, seven directors and one auditor; the directors shall include one or more representative each of employers, employees and individually insured persons and include, as an ex officio director, one national public official of Grade III in the Ministry of Health and Welfare, or one public official in general service belonging to the Senior Civil Service Corps, who is in charge of duties related to National Pension Scheme.
(2) The chief executive officer shall be appointed and dismissed by the President upon the recommendation of the Minister of Health and Welfare; the standing directors, directors (excluding the ex officio director) and auditor shall be appointed and dismissed by the Minister of Health and Welfare upon the recommendation of the chief executive officer.
(3) The directors shall not be remunerated for services as directors: Provided, That actual expenses may be reimbursed.

Article 31 (Fund Director)

(1) A director to be in charge of the management and operation of the National Pension Fund (hereinafter referred to as the "fund director") under Article 101 (hereinafter referred to as the "Fund") shall be appointed from among the standing directors possessing extensive knowledge and experience in the fields of business administration, economy and fund operation.
(2) In order to recommend candidates for the fund director, a Fund Director Recommendation Committee comprised of the chief executive officer as chairperson and the directors as members shall be established under the Service (hereinafter referred to as the "Recommendation Committee").
(3) The Recommendation Committee shall publicly announce in major daily newspapers an invitation for fund director candidates, and apart from this, may conduct a search for persons deemed fit for the post of fund director or entrust such search to a professional organization.
(4) In accordance with the criteria for the examination of candidates for fund director, as prescribed by Ordinance of the Ministry of Health and Welfare, the Recommendation Committee shall examine the candidates who responded to the invitations referred to in paragraph (3), and consult with those recommended to the final stage of candidacy for fund director on the terms of contract.
(5) In accordance with the results of the deliberation and consultation referred to in paragraph (4), the chief executive officer shall recommend the final candidate for the fund director to the Minister of Health and Welfare, with the simultaneous submission of a draft contract.
(6) If the Minister of Health and Welfare approves the recommendation proposal and draft contract submitted under paragraph (5), the chief executive officer shall conclude a contract with the final candidate.
(7) The submission of a recommendation proposal and draft contract under paragraph (5) and approval thereon under paragraph (6) shall be regarded as the recommendation and appointment of a standing director as referred to in Article 30 (2).
(8) Necessary matters concerning the qualification of the fund director, consultation on the draft contract, recommendation, conclusion of contract, etc. shall be determined by Ordinance of the Ministry of Health and Welfare.

Article 32 (Term of Office of Executive Officers)

The term of office of executive officers shall be three years: Provided, That the term of office of the ex officio director shall be the duration of his status as an ex officio director, and the term of office of the fund director shall be the term of the relevant contract.

Article 33 (Duties of Executive Officers)

(1) The chief executive officer shall represent the Service, and supervise the operation of the Service.
(2) The standing directors shall be delegated the duties of the Service, as prescribed by the articles of incorporation, and when the chief executive officer is unable to perform his/her duties due to any unavoidable circumstance, they shall act for the chief executive officer in the order of priority prescribed by the articles of incorporation.
(3) The auditor shall audit and inspect the accounts, the status of management of operations, and properties of the Service.

Article 34 (Appointment of Representative)

The chief executive officer may appoint a representative from among his/her staff who shall have the authority to perform all judicial or non-judicial acts with regard to duties of the Service, as prescribed by the articles of incorporation.

Article 35 (Grounds for Disqualification of Executive Officers)

No person who falls under any of the following shall be an executive officer of the Service:
1. An incompetent person under adult guardianship or a quasi-incompetent person under adult guardianship;
2. A person declared bankrupt who is not yet reinstated;
3. A person sentenced to imprisonment without prison labor or heavier punishment, for whom three years have not passed since the execution of such punishment was completed or exempted;
4. A person who is disqualified or whose qualification is suspended, under any Act or by a court decision.

Article 36 (Ex Officio Retirement and Dismissal of Executive Officers)

(1) Any executive officer who comes to fall under any of the subparagraphs of Article 35 shall retire ex officio from his/her office.
(2) The person with the authority to appoint or dismiss executive officers may, if any executive officer comes to fall under any of the following subparagraphs, dismiss the executive officer:
1. When it is accepted that the executive officer is unable to perform his/her duties due to a physical or mental disorder;
2. When the executive officer has violated the obligations associated with his/her duties;
3. When the executive officer has caused a loss to the Service intentionally or by gross negligence;
4. When the fund director falls under the causes for dismissal as prescribed in the terms of contract concluded by him/her and the chief executive officer under Article 31 (6).

Article 37 (Restriction on Holding Concurrent Offices by Executive Officers and Employees)

The chief executive officer, standing directors, auditor and employees of the Service shall not be engaged in a profit-making business; the chief executive officer, standing directors, and auditor shall not hold other offices concurrently without permission of the Minister of Health and Welfare; employees shall not hold other offices concurrently without permission of the chief executive officer.

Article 38 (Board of Directors)

(1) In order to deliberate on and resolve significant matters concerning the Service, a Board of Directors shall be established under the Service.
(2) The Board of Directors shall be comprised of the chief executive officer, the standing directors, and the directors.
(3) The chief executive officer shall call and preside over the meetings of the Board of Directors.
(4) The resolutions of the Board of Directors shall be made with a majority of registered constituent members in attendance and by the affirmative voting of a majority of constituent members present.
(5) The auditor may attend and state his/her opinions at meetings of the Board of Directors.
(6) Necessary matters concerning the operation of the Board of Directors shall be prescribed by Presidential Decree.

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Article 39 (Appointment and Dismissal of Employees)

The employees of the Service shall be appointed and dismissed by the chief executive officer, as prescribed by the articles of incorporation.

Article 40 (Status of Executive Officers and Employees)

In application of Articles 129 through 132 of the Criminal Act, the executive officers and employees of the Service shall be regarded as public officials.

Article 41 (Supervision of the Service)

(1) The Service shall obtain the approval of the Minister of Health and Welfare on its plan of operation of services and budget each fiscal year, as prescribed by Presidential Decree.
(2) The Service shall report to the Minister of Health and Welfare on its performance of services and settlement of accounts within two months after the closing of each fiscal year.
(3) The Minister of Health and Welfare may order the Service to report on its services or inspect the status of its services or property, and if deemed necessary, take necessary measures regarding supervision, such as an order to amend the articles of incorporation.

Enforcement Ordinance

Article 42 (Accounting of the Service)

(1) The fiscal year of the Service shall coincide with that of the Government.
(2) The Service shall establish its accounting regulations under the approval of the Minister of Health and Welfare.

Article 43 (Revenues and Expenditures of the Service)

The revenues of the Service shall consist of money transferred from the National Pension Fund, government subsidies, loans and other income, and its expenditures shall consist of various kinds of benefits under this Act, reserves, returned money, repayment of borrowed funds and interest accrued therefrom, and other expenses incurred from the operations and services of the Service.

Article 44 (Temporary Borrowing and Appropriation by Transfer)

(1) Where the Service is lack of funds it should spend every fiscal year, it may temporarily borrow funds from the National Pension Fund, as prescribed by Presidential Decree.
(2) Temporary borrowings shall be repaid within the relevant fiscal year.
(3) Where the expenditure of the Service related to the various kinds of benefits exceeds its revenue, it may appropriate funds by transfer from the National Pension Fund every fiscal year following deliberation by the National Pension Fund Operation Committee under Article 103, as prescribed by Presidential Decree.

Enforcement Ordinance

Article 45 (Treatment of Surplus)

If there is a surplus as a result of the settlement of accounts at the end of each fiscal year, the Service shall use such to make up for losses and reserve the balance in the Fund.

Article 46 (Welfare Service, Loan Service, etc.)

(1) The Service may conduct the following welfare services to promote the welfare of current and former insured persons and beneficiaries, as prescribed by Presidential Decree:
1. Loan services;
2. Establishment, supply, lease, and operation of welfare facilities for the aged under the Welfare of the Aged Act;
3. Establishment and operation of sports facilities under the Installation and Utilization of Sports Facilities Act as facilities incidental to welfare facilities for the aged referred to in subparagraph 2;
4. Other welfare services prescribed by Presidential Decree.
(2) The Service may invest in a corporation determined by Ordinance of the Ministry of Health and Welfare from the National Pension Fund in order to implement the welfare services referred to in paragraphs (1) 2 and 3.
(3) The Service may provide loan services to a currently or formerly insured in order to raise the National Pension Fund, as prescribed by Presidential Decree.
(4) If executive officers and employees of the Service in charge of loan services provided under paragraphs (1) and (3) cause any loss to the Service by intention or by gross negligence in the course of performing their duties, they shall indemnify the Service against such damage.
(5) The Service may allow the currently or formerly insured or those, other than beneficiaries, to use some facilities it operates pursuant to paragraph (1) 2 through 4 to the extent of not interfering with welfare service under paragraph (1), as prescribed by Presidential Decree.
(6) Matters regarding methods of investment under paragraph (2) shall be prescribed by Ordinance of the Ministry of Health and Welfare.
[This Article Wholly Amended by Act No. 9385, Jan. 30, 2009]

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Article 46-2 (Special Cases concerning Projects to Establish Welfare Facilities)

Where the Service acquires the land developed by the State, a local government, the Korea Land and Housing Corporation established under the Korea Land and Housing Corporation Act, or other public institutions prescribed by Presidential Decree in order to establish a welfare facility referred to in Article 46 (1) 2 and 3, the Service shall be deemed the State or a local government.
[This Article Newly Inserted by Act No. 9385, Jan. 30, 2009]

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Article 46-3 (Old Age Planning Services)

The Service may provide old age planning services, such as consulting and education on finance, health, leisure, jobs and social participation and other services provided in connection with relevant specialized institutions in order to ensure a stable elderly life for the current or former insured and beneficiaries, as prescribed by Presidential Decree.
[This Article Newly Inserted by Act No. 9385, Jan. 30, 2009]

Article 47 (Entrustment of Affairs)

(1) The Service may entrust affairs related to the receipt of repayments of loans, affairs related to the disbursement of benefits and loans, and other affairs, in whole or in part, to corporations conducting social insurance affairs under other statutes, post offices, financial institutions and other persons, as prescribed by the articles of incorporation.
(2) The scope of affairs which the Service may entrust and the scope of persons to whom such affairs may be entrusted under paragraph (1) shall be prescribed by Presidential Decree.

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Article 48 (Application Mutatis Mutandis of the Civil Act)

The provisions of the Civil Act pertaining to incorporated foundations shall apply mutatis mutandis in matters concerning the Service, except as otherwise provided for in this Act.