NATIONAL PENSION ACT [See entire ACT]

CHAPTER V FINANCIAL RESOURCES AND COLLECTION OF CONTRIBUTIONS, ETC.

Article 87 (Expenses Paid from National Treasury)

The State shall annually pay the expenses of the Service and the Health Insurance Corporation in whole or in part which are needed for the management and operation of national pension services.

Article 88 (Imposition, Collection, etc. of Contributions)

(1) The Minister of Health and Welfare shall entrust the matters prescribed by this Act concerning the collection of contributions among national pension services to the Health Insurance Corporation.
(2) The Service shall impose contributions on insured persons and employers each month during their insurance coverage periods to cover the costs of national pension services rendered, and the Health Insurance Corporation shall collect such contributions.
(3) Out of the contribution of a workplace-based insured person, the employee contribution shall be borne by the workplace-based insured person and the employer contribution by the employer; each amount shall be equal to 45/1000 of the standard monthly income.
(4) The contributions of an individually insured person, voluntarily insured person, and voluntarily and continuously insured person shall be borne by the individually insured person, voluntarily insured person, and voluntarily and continuously insured person, respectively, and the amount of the contributions shall be equal to 90/1000 of the standard monthly income.
(5) Where the Service has to collect an additional contribution by re-calculating the initially assessed amount in order to make corrections to the standard monthly income, etc., it may allow an insured person or employer to pay the additional contribution in installments. In such cases, matters necessary for payment of contributions in installments, such as those eligible for filing an application for payment in installments, installment payment methods and deadlines, shall be prescribed by Presidential Decree.

Enforcement Ordinance

Article 56-2 (Payment of Retroactive Pension Premiums in Installments)

(1) Where a pension premium to be additionally paid pursuant to Article 88 (5) of the Act (hereinafter referred to as "retroactive pension premium") exceeds the pension premium for the relevant month, an insured or employer may file an application for installment payment of retroactive pension premiums.
(2) An insured or employer who intends to pay retroactive pension premiums in installments pursuant to paragraph (1) shall submit to the Service an application form prescribed by Ordinance of the Ministry of Health and Welfare by no later than three days prior to the deadline for payment of the retroactive pension premium.
(3) An insured or employer who has filed an application for installment payment of retroactive pension premiums pursuant to paragraph (2) may pay the equally divided retroactive pension premiums in up to three installments.
(4) The retroactive pension premiums to be paid in installments pursuant to paragraph (3) shall be paid by 10th of the month immediately following the month a notice of each installment is issued: Provided, That the first installment of the retroactive pension premiums shall be paid by the deadline for payment of the retroactive pension premium referred to in paragraph (2).
[This Article Newly Inserted by Presidential Decree No. 23359, Dec. 8, 2011]

Article 88-2 (Notice of Payment, etc.)

(1) When the Service has imposed a contribution under Article 88, the Health Insurance Corporation shall notify an obligor for payment in writing stating the contribution amount, payment deadline, payment place, etc.: Provided, That where such payment is made by automated credit transfer under Article 89 (4) for a certain period, such notice may be omitted for such period.
(2) Upon the application of an obligor for payment, the Health Insurance Corporation may provide notice of payment under the main sentence of paragraph (1) by an electronic document according to an electronic document exchange system, etc. In such cases, the method to apply for such electronic notice, procedure therefor, and other necessary matters shall be prescribed by Ordinance of the Ministry for Health and Welfare.
(3) Where the Health Insurance Corporation has notified by an electronic document pursuant to paragraph (2), such notice shall be deemed to have reached an obligor for payment at the time the electronic document is stored at an information and communication network prescribed by Ordinance of the Ministry for Health and Welfare or is delivered to an electronic mail address designated by the obligor for payment.
(4) Notice given to one of the joint obligors for payment of contributions as prescribed in Article 90 (3) shall be effective for the other obligor joint obligor.
[This Article Newly Inserted by Act No. 9691, May 21, 2009]

Article 89 (Contribution Payment Deadline, etc.)

(1) Pension contributions shall be paid by an obligor for payment by no later than the 10th day of the month following the month for which the contribution is assessed: Provided, That a person who runs or is engaged in an agriculture, forestry, livestock farming or fishery business as prescribed by Presidential Decree (hereinafter referred to as "farmers and fishermen") may pay his/her contributions on a quarterly basis by the 10th day of the month following the relevant quarter at his/her application.
(2) Where a contribution is paid at least one month prior to the payment deadline, it shall be deemed paid on the date following the contribution payment deadline of the previous month.
(3) Where an obligor for payment pays a contribution in advance of its due date, the period, the amount to be reduced, etc. shall be prescribed by Presidential Decree.
(4) Where an obligor for payment pays a contribution by automated credit transfer, such person may be granted a reduction in the amount of the contribution or provided other financial benefits, as prescribed by Presidential Decree.
(5) Notwithstanding paragraph (1), the Health Insurance Corporation may, on grounds determined by Ordinance of the Ministry of Health and Welfare, such as delayed service of notice, extend the payment deadline within a range of one month from the payment deadline under paragraph (1).
(6) A person who intends to extend a payment deadline pursuant to paragraph (5) shall apply for an extension of the payment deadline to the Health Insurance Corporation, as prescribed by Ordinance of the Ministry of Health and Welfare.

Enforcement Ordinance

Article 57 (Range of Farmers and Fishermen)

(1) A person who runs or engages in agriculture, forestry, livestock farming, or fishery business (hereinafter referred to as "farmers or fishermen") as prescribed in the proviso to Article 89 (1) of the Act, shall be those falling under subparagraph 2 of Article 3 of the Framework Act on Agriculture and Fisheries, Rural Community, and Food Industry.
(2) Notwithstanding paragraph (1), if a person is engaged in agricultural business under subparagraph 1 (a) of Article 3 of the Framework Act on Agriculture and Fisheries, Rural Community, and Food Industry (hereafter referred to as "agriculture" in this Article), or fishery business under item (b) of the same subparagraph (hereafter referred to as "fisheries" in this Article) concurrently, whether he/she is a farmer or fisherman shall be determined by aggregating the amount of sales or the engagement period in each industry, as prescribed by Ordinance of the Ministry of Health and Welfare.
(3) Notwithstanding paragraphs (1) and (2), each person who falls under any of the following subparagraphs shall be excluded from farmers and fishermen:
1. A person who has any other income that exceeds the total amount of income earned from agriculture (including that earned from agriculture-related businesses) and income earned from fisheries (including that earned from fisheries-related businesses);
2. A person whose annual income excluding the total amount of income earned from agriculture (including that earned from agriculture-related businesses) and income earned from fisheries (including that earned from fisheries-related business) exceeds an amount equivalent to twelve times the average monthly income of the previous year calculated under Article 4.
(4) A person who is a farmer or fisherman under paragraphs (1) and (2) shall obtain confirmation from the head of a Si/Gun/Gu/Eup having jurisdiction over the location of his/her residence or lands, as prescribed by Ordinance of the Ministry of Health and Welfare: Provided, That the foregoing shall not apply to any of the following persons:
1. A person who can be verified as a farmer in the farmland ledger under Article 49 of the Farmland Act;
1-2. A person whose business information on agriculture and fisheries is registered pursuant to Article 4 (1) of the Act on Fostering and Supporting Agricultural and Fisheries Enterprises;
2. A person who has obtained permission to practice animal husbandry pursuant to Article 22 (1) of the Livestock Industry Act, and a person whose animal husbandry is registered pursuant to paragraph (2) of the aforesaid Article;
3. A person who has obtained a fishing license under Article 8 of the Fisheries Act, whose fishing right is registered under Article 17 of the said Act, who has obtained a fishing permit under 41 of the said Act, or who has filed an application for fishing under Article 47 of the said Act.

Enforcement Ordinance

Article 58 (Advance Payment and Return of Pension Premiums)

(1) A person who intends to pay pension premiums in advance pursuant to Article 89 (2) and (3) of the Act shall file an application for advance payment of pension premiums, as prescribed by Ordinance of the Ministry of Health and Welfare. In such cases, the period of advance payment shall be less than one year, and the period shall be less than five years with regard to a person aged at least 50 at the time of filing an application for advance payment.
(2) Upon receiving an application filed under paragraph (1), the Service shall estimate an amount to be paid in advance by the relevant applicant and determine the following matters, and the applicant for advance payment shall pay the estimated aggregate of pension premiums to be paid in advance referred to in subparagraph 4 by the deadline for payment of the pension premiums for the month immediately preceding the month in which the period of advance payment begins:
1. An amount of pension premium for the month in which the date of application for advance payment falls (hereafter referred to as "standard pension premium" in this Article);
2. An amount to be reduced due to advance payment (calculated on a monthly basis by multiplying the amount of the standard pension premium by the number of months for advance payment, and by 1/12 of the interest rate on a term deposit with one-year maturity for the year in which the date of application for advance payment falls, respectively; hereinafter referred to as "standard reduction amount");
3. An amount obtained by deducting the standard reduction amount from the amount of the standard pension premiums (hereafter referred to as "estimated pension premium for advance payment" in this Article);
4. The aggregate of pension premiums for advance payment, which are obtained by adding up the estimated pension premiums for advance payment.
(3) If an applicant pays the aggregate pension premiums for advance payment pursuant to paragraph (2), the Service shall determine the following matters each month, and if advance payment is made for at least one year, it shall notify the applicant of the advance payment balance referred to in subparagraph 4:
1. An amount of pension premium for a relevant month which is imposed on an applicant during the period of advance payment in accordance with Article 88 (2) of the Act (hereafter referred to as "settled pension premium" in this Article);
2. An amount reduced due to advance payment (calculated by multiplying the settled pension premium by the number of months for advance payment and by 1/12 of the interest rate on a term deposit with one-year maturity for the relevant period, respectively; hereafter referred to as "settled reduction amount" in this Article);
3. An amount computed by deducting the settled reduction amount from the amount of settled pension premium (hereafter referred to as "settled pension premium for advance payment" in this Article);
4. An amount computed by fully deducting the estimated settled pension premiums for advance payment accrued up until the relevant month from the aggregate pension premiums for advance payment (hereinafter referred to as "advance payment balance").
(4) The settled pension premium for advance payment determined pursuant to paragraph (3) shall be deemed paid on the date prescribed in Article 89 (2) of the Act.
(5) In any of the following cases, the Service shall determine the return of an advance payment balance at the time it confirms cause thereof, and the Health Insurance Corporation shall return the said amount to the relevant applicant. In such cases, Article 73 (2) through (4) shall apply mutatis mutandis to the method of return:
1. Where an applicant dies;
2. Where an applicant loses his/her nationality or emigrates overseas;
3. Where an applicant becomes excluded from insurance coverage referred to in the proviso to Article 6 of the Act (excluding cases where he/she acquires the status of a voluntarily and continuously insured person referred to in Article 13 of the Act);
4. Where an applicant receives an old age pension, early old age pension, or lump-sum refund referred to in Article 61 or 77 (1) of the Act;
5. Where the settled pension premiums for the advance payment period are fully paid;
6. Where an advance payment balance becomes smaller than settled pension premiums;
7. Where an applicant files an application for return.
[This Article Wholly Amended by Presidential Decree No. 23908, Jun. 29, 2012]

Enforcement Ordinance

Article 59 (Provision of Benefits to Persons Using Automatic Account Transfer)

The Service may provide a person who pays contributions by automatic account transfer under Article 89 (4) of the Act with a deduction of an amount corresponding to the expenses saved as a result of automatic account transfer or offer money and valuables or free gifts, etc. by lot.

Article 90 (Payment, etc. of Withheld Contributions)

(1) Every employer shall deduct an employee contribution payable by a workplace-based insured person from the monthly wage payable to such employee and pay it.
(2) When an employer deducts an employee contribution from the employee's wage pursuant to paragraph (1), he/she shall prepare a deduction statement and present it to the relevant workplace-based insured person, as prescribed by Ordinance of the Ministry of Health and Welfare. In such cases, a pay slip, etc. stating the details of deduction of the employee contribution, shall be deemed a deduction statement.
(3) Where there are two or more employers at a workplace which is not a corporation, the employers in such workplace shall be jointly liable for paying contributions of workplace-based insured persons and other dues.

Article 90-2 (Payment of Contributions, etc. by Credit Card, etc.)

(1) An obligor for payment may pay a contribution, arrears, expenses for disposition on default, and other dues (hereinafter referred to as "contributions, etc." in this Article) at not more than an amount prescribed by Presidential Decree, by credit card, debit card, etc. (hereinafter referred to as "credit card, etc." in this Article) via an institution, etc. prescribed by Presidential Decree to vicariously pay contributions, etc. (hereinafter referred to as "an agency of payment of contributions, etc." in this Article).
(2) Where contributions, etc. are paid by credit card, etc., the date of approval by an agency of payment of contributions, etc. shall be deemed the date of payment.
(3) An agency of payment of contributions, etc. may collect a commission from the obligor for payment in return for paying the contributions, etc. on his/her behalf.
(4) Necessary matters concerning the designation and operation of an agency of payment of contributions, etc. and commissions, etc. shall be prescribed by Presidential Decree.
[This Article Newly Inserted by Act No. 13100, Jan. 28, 2015]

Enforcement Ordinance

Enforcement Ordinance

Enforcement Ordinance

Article 91 (Exceptions to Payment of Contributions)

(1) If a workplace-based insured person or an individually insured person is unable to pay contributions for any of the following causes, an obligor for payment may elect not to pay contributions for the period in which such cause continues to exist, as prescribed by Presidential Decree:
1. Suspension of business, unemployment or temporary retirement;
2. Military service under Article 3 of the Military Service Act;
3. Attending school under Article 2 of the Elementary and Secondary Education Act or Article 2 of the Higher Education Act;
4. Confinement in a correction facility under Article 11 of the Administration and Treatment of Correctional Institution Inmates Act;
5. Commitment to a preventive custody facility under the former Social Protection Act or a medical treatment and custody facility under the Medical Treatment and Custody Act;
6. A person’s whereabouts is unknown for less than one year. In such case, the criteria and method to determine a person’s whereabouts is unknown shall be prescribed by Presidential Decree;
7. Decrease in income due to a disaster, accident, etc., or failure to engage in income-earning activities, as prescribed by Presidential Decree.
(2) The period in which contributions are not paid under paragraph (1) shall be not included in calculating the insurance coverage period.

Enforcement Ordinance

Article 61 (Application for Exception to Payment of Pension Premiums, etc.)

(1) Where an employer or an individually insured person desires not to pay pension premiums pursuant to Article 91 (1) of the Act, he/she shall apply to the Service for exception to the payment of pension premiums, as prescribed by Ordinance of the Ministry of Health and Welfare.
(2) If the Service deems it impractical to collect pension premiums from an individually insured person due to a cause referred to in Article 91 (1) 2 through 6 of the Act, the Service may determine an exception to the payment of pension premiums for the period in which such cause exists, notwithstanding paragraph (1): Provided, That where pension premiums have been paid for the whole or part of the period in which the cause exists, the foregoing shall not apply to the paid pension premiums.
(3) With respect to a person who fails to pay pension premiums for the cause under Article 91 (1) 6 or 7 of the Act, the Service shall confirm whether the cause for exception ceases to exist at the lapse of each year from the date of beginning to apply such exception.
(4) Where a person's grounds for exception to payment of pension premiums cease to exist, the Service shall notify the relevant insured person of such fact in advance.
(5) The provision of Article 20 (1) shall apply mutatis mutandis to the criteria for recognition of a person’s unknown whereabouts under Article 91 (1) 6 of the Act.
(6) The period of exception to payment shall be from the month a cause for exception to payment occurs until the month the cause for exception to payment ceases to exist: Provided, That in any of the following cases, the period of exception to payment shall last until the month preceding the month a cause for exception to payment ceases to exist:
1. Where the date the cause for exception to payment ceases to exist is the first day of such month;
2. Where an insured person desires to pay the pension premium for the month the cause for exception to payment ceases to exist.

Enforcement Ordinance

Article 60 (Exemption from Payment of Pension Premiums)

The cases in which pension premiums may not be paid under Article 91 (1) 7 of the Act shall be any of following cases:
1. Where a person is hospitalized for at least three months due to a disease or injury;
2. Where a person is entitled to subsidies or assistance under the Act on the Prevention of and Countermeasures against Agricultural and the Fishery Disasters, Countermeasures against Natural Disasters Act, or the Disaster Relief Act;
3. Where a person's income is decreased as a result of disaster, accident, etc. to the extent that payment of pension premiums is deemed to make it difficult to maintain the basic living conditions as determined by the Minister of Health and Welfare.

Article 92 (Postponed Payment of Contributions)

(1) A person falling under any of the following subparagraphs may request a postponed payment for all or part of the contributions corresponding to the period prescribed in the relevant subparagraph (hereinafter referred to as "postponed contribution"):
1. An insured person who fails to pay contributions under Article 91 (1): The period in which such contributions are not paid;
2. A person who has acquired insured status since he/she completed the military service pursuant to Article 3 of the Military Service Act: The period in which the person performed the relevant military service (excluding the period included in the period of service under the Public Officials Pension Act, the Pension for Private School Teachers and Staffs Act and the Special Post Office Act, the period included in the period of service under the Veterans' Pension Act and the period of service in the military before January 1, 1988).
(2) The amount of a postponed contribution shall be an amount computed by multiplying the amount of the contribution of the month in which an application for postponement of the payment is made by the number of months payment is to be postponed.
(3) Postponed contributions may be paid in installments, as prescribed by Presidential Decree. In such case, interest as prescribed by Presidential Decree shall be added thereto.
(4) Where postponed contributions under paragraphs (1) through (3) have been paid, the period corresponding to such postponed contributions shall be included in the insurance coverage period.
(5) Necessary matters concerning application for the payment of postponed contributions, payment method and deadline, etc. shall be prescribed by Presidential Decree.

Enforcement Ordinance

Article 62 (Application for Payment of Postponed Contributions, etc.)

(1) If a person who falls under any of the subparagraphs of Article 92 (1) of the Act intends to pay contributions corresponding to the whole or part of the period prescribed in the relevant subparagraph (hereinafter referred to as "postponed contributions"), he/she shall submit an application for the payment of postponed contributions to the Service, as prescribed by Ordinance of the Ministry of Health and Welfare.
(2) With respect to the period for payment of postponed contributions, and if postponed contributions are paid in installments, the provisions of Article 52 (1) through (4) shall apply mutatis mutandis to the method, number of installments, additional interest, etc. thereof. In such cases, the "repayment of a lump-sum refund" shall be construed as "postponed contributions" and the "insurance coverage period" as the "postponed period".

Article 93

Deleted.

Article 94 (Advance Collection of Contributions from Workplace-based and Individually Insured Persons)

If an obligor for the payment of contributions of workplace-based insured persons or an individually insured person falls under any of the following cases, the contributions may be collected in advance of the normal payment deadline (where the payment deadline has been extended under Article 89 (5), the foregoing shall refer to such payment deadline):
1. When such person is subject to a disposition on default for failure to pay a national tax, local tax, or any other public charge in arrear;
2. When such person is subject to compulsory execution;
3. When such person is declared bankrupt;
4. When a public auction is commenced;
5. When a corporation is dissolved.

Article 95 (Demand for Payment of Contributions, etc. and Dispositions against Default)

(1) If a workplace-based insured person or an individually insured person fails to pay contributions and related dues under this Act by the payment deadline (referring to the extended payment deadline if the payment deadline has been extended under Article 89 (5)), the Health Insurance Corporation shall demand such payment by fixing a deadline, as prescribed by Presidential Decree.
(2) The Health Insurance Corporation shall issue a reminder, by fixing a deadline of at least ten days, when demanding payment under paragraph (1).
(3) A demand made to one of the persons jointly liable to pay contributions as prescribed in Article 90 (3) shall also apply to the other persons jointly liable for payment.
(4) If a person in receipt of demand under paragraph (1) fails to pay contributions or related dues by the payment deadline, the Health Insurance Corporation may collect such contributions and related dues in the same manner as delinquent national taxes are collected, after obtaining approval from the Minister of Health and Welfare. In such cases, where the collected amount falls short of contributions in arrears and related dues, the Health Insurance Corporation shall appropriate such collected amount for contributions in arrears and related dues, as prescribed by Presidential Decree.
(5) If the Health Insurance Corporation deems that the sale of the property seized in the same manner as delinquent national taxes are collected under paragraph (4) requires expert knowledge, or the direct sale of such property by the Health Insurance Corporation is inappropriate due to other special circumstances, it may require the Korea Asset Management Corporation established under the Act on the Efficient Disposal of Non-Performing Assets, etc. of Financial Companies and the Establishment of Korea Asset Management Corporation (hereinafter referred to as the "Korea Asset Management Corporation") to sell such property as proxy, as prescribed by Presidential Decree. In such cases, a sale conducted by the Korea Asset Management Corporation shall be deemed a sale conducted by the Health Insurance Corporation.
(6) Where the Korea Asset Management Corporation conducts a sale by proxy under paragraph (5), the Health Insurance Corporation may pay commission, as prescribed by Ordinance of the Ministry for Health and Welfare.

Enforcement Ordinance

Article 64 (Demand for Payment of Pension Premiums, etc.)

(1) When the Health Insurance Corporation demands for the payment of pension premiums by a workplace-based insured person and other incidental dues in accordance with Article 95 (1) of the Act, it shall issue a reminder to the employer of the relevant workplace-based insured person within 20 days from the lapse of the payment deadline.
(2) When the Health Insurance Corporation demands for the payment of pension premiums by an individually insured person or other incidental dues in accordance with Article 95 (1) of the Act, it shall issue a reminder to the insured person concerned within three months from the lapse of the payment deadline.

Enforcement Ordinance

Article 65 (Appropriation for Pension Premiums at Time of Disposition on Default)

Where the Service collects delinquent pension premiums and other dues in the same manner as delinquent national taxes are collected under Article 95 (4) of the Act, if the allotted amount to be appropriated for the delinquent amount after concluding the disposition on default falls short of such delinquent amount, the Service shall appropriate it for pension premiums and other dues in the manners as referred to in the following subparagraphs:
1. Where pension premiums for at least two months are delinquent: In the order of the arrears and pension premium of the month of earlier payment deadline;
2. Where a pension premium for at least one month is delinquent: In the order of the arrears and pension premium;
3. Where a person who fails to pay pension premiums, notwithstanding subparagraphs 1 and 2, fails to pay pension premiums as a workplace-based insured person (limited to an employer who is not a corporation) after he/she failed to pay pension premiums as an individually insured person: It shall be first appropriated for the arrears and pension premium of the month of earlier payment deadline of a workplace-based insured person, and then in the order of arrears and pension premium of the month of earlier payment deadline of an individually insured person.

Enforcement Ordinance

Article 66 (Request, etc. for Sales on Behalf of the Service)

(1) Where the Health Insurance Corporation requires the Korea Asset Management Corporation established under the Act on the Efficient Disposal of Non-Performing Assets, etc. of Financial Companies and the Establishment of Korea Asset Management Corporation (hereinafter referred to as the "Korea Asset Management Corporation") to sell seized property on behalf the Health Insurance Corporation pursuant to Article 95 (5) of the Act, it shall send the Korea Asset Management Corporation a written request for a sale by proxy in which the following matters are stated:
1. Name, address or place of residence of a delinquent person;
2. Type, quantity, quality and location of property to be sold;
3. Details of pension premiums and other dues relating to seizure, and payment deadline;
4. Other necessary matters.
(2) The Health Insurance Corporation shall notify a delinquent person, a person holding rights to property, including lease right on a deposit basis, pledge, mortgage, or other rights, and a person holding seized property, of a sale by proxy.

Enforcement Ordinance

Article 70 (Detailed Matters concerning Sales by Proxy)

The Health Insurance Corporation shall determine matters which are necessary for a sale that the Korea Asset Management Corporation vicariously conducts under Article 95 (5) of the Act, which are prescribed in this Decree, in detail following consultation with the Korea Asset Management Corporation.

Article 95-2 (Payment of Contributions in Arrears in Installments)

(1) The Health Insurance Corporation may approve payment of contributions in installments for individually insured persons who have failed at least twice to pay contributions, as prescribed by Ordinance of the Ministry of Health and Welfare.
(2) Where a person approved to pay contributions in installments pursuant to paragraph (1) fails at least twice to pay the approved contributions without justifiable grounds, the Health Insurance Corporation shall revoke such approval.
(3) Matters necessary for procedures, methods, criteria, etc. for approval and revocation of payment of contributions in installments, shall be prescribed by Ordinance of the Ministry of Health and Welfare.
[This Article Newly Inserted by Act No. 13100, Jan. 28, 2015]

Enforcement Ordinance

Enforcement Ordinance

Article 96 (Service of Documents)

With respect to the service of documents under Article Articles 57-2, 88-2 and 95, Articles 8 (excluding proviso to paragraph (2) of the same Article) through 12 of the Framework Act on National Taxes shall apply mutatis mutandis: Provided, That service by mail shall be prescribed by Presidential Decree.

Enforcement Ordinance

Article 70-2 (Service by Mail)

When the Service or the Health Insurance Corporation serves documents under Articles 57-2, 88-2, and 95 of the Act by mail in accordance with the proviso to Article 96 of the Act, it may serve the documents by regular mail, notwithstanding the main sentence of Article 10 (2) of the Framework Act on National Taxes.
[This Article Newly Inserted by Presidential Decree No. No. 22347, Aug. 17, 2010]

Article 97 (Arrears)

(1) Where an obligor for the payment of contributions fails to pay the contributions by the payment deadline (where the payment deadline is extended under Article 89 (5), the foregoing shall refer to such payment deadline), the Health Insurance Corporation shall collect arrears in an amount equivalent to 30/1000 of delinquent contributions counted from the date on which the payment deadline elapses.
(2) If an obligor for the payment of contributions fails to pay the delinquent contributions, the Health Insurance Corporation shall collect arrears under paragraph (1) plus an amount equivalent to 10/1000 of delinquent contributions for the lapse of each month from the date on which the payment deadline elapses. In such case, the sum of arrears shall not exceed an amount equivalent to 90/1000 of delinquent contributions.
(3) Notwithstanding paragraphs (1) and (2), where natural disasters or other inevitable causes prescribed by Presidential Decree exist, arrears under paragraphs (1) and (2) may not be collected.

Enforcement Ordinance

Article 71 (Exception to Collection of Arrears)

The cases where arrears may be not collected under Article 97 (3) of the Act shall be as follows:
1. Where payment is defaulted due to war or other calamities;
2. Where payment is defaulted due to the closure of a workplace (limited to a workplace-based insured);
3. Where payment is defaulted due to an outbreak of a disaster, such as fire;
4. Other cases in which collection of arrears is difficult, as determined by Ordinance of the Ministry of Health and Welfare.

Article 97-2 (Disclosure of Personal Information on Defaulters with Large Amount in Arrears and Habitual Defaulters)

(1) Where a pensioner who has failed to pay a total of at least 50 million won (limited to workplace-based insured persons) in contributions, arrears and disposition fees for arrears, for two years from the date immediately following its payment deadline specified under this Act (hereafter referred to as "contributions, etc." in this paragraph) defaults on the payments although he/she is financially capable of making such payments, the Health Insurance Corporation may disclose the personal information on the relevant pensioner (referring to the personal information of an employer), arrears, etc. (hereafter referred to as "personal information, etc." in this Article): Provided, That this shall not apply if an administrative appeal or administrative litigation is pending with respect to the contributions, etc., in arrears or if there is a compelling reason prescribed by Presidential Decree not to do so, such as partial payment of an amount in arrears.
(2) The Deliberative Committee on Disclosure of Information on Contributions shall be established under the Health Insurance Corporation to deliberate on whether to disclose personal information, etc.
(3) The Health Insurance Corporation shall issue a written notice to a person whose personal information, etc. is subject to disclosure after deliberation by the Deliberative Committee on Disclosure of Information on Contributions that his/her personal information, etc. will be subject to disclosure so as to provide the person with an opportunity to explain his/her situation, and shall select persons whose personal information, etc. is subject to disclosure, considering the status of their payments, etc. of arrears after six months from the date on which such notice is issued.
(4) Disclosure of personal information, etc. shall be made by publishing or posting it in the official gazette or on the website of the Health Insurance Corporation.
(5) The criteria for determining one’s payment capability, the status of one’s payment of arrears, and procedures with respect to disclosure of personal information, etc., and matters necessary for the organization and operation, etc. of the Deliberative Committee on Disclosure of Information on Contributions shall be prescribed by Presidential Decree.
[This Article Newly Inserted by Act No. 11511, Oct. 22, 2012]

Enforcement Ordinance

Article 72-2 (Disclosure of Personal Information of Those with Large Amount of or Repetitive Overdues and Reasons etc. for Exclusion of Disclosure)

(1) “Where there is a compelling reason prescribed by Presidential Decree not to do so, such as partial payment of an amount in arrears” in the proviso of Article 97-2 (1) of the Act means any of the following cases:
1. Where a defaulter (limited to workplace-based insured persons; hereinafter the same shall apply in this Article and Article 72-4) pays not less than 30/100 of the delinquent pension premiums, arrears and expenses for disposition on default pursuant to Article 97-2 (1) of the Act (hereinafter referred to as “arrears” in this Article) within six months from the date of notice under Article 97-2 (3) of the Act;
2. Where as a result of determination to grant authorization of the rehabilitation plan under Article 243 of the Debtor Rehabilitation and Bankruptcy Act, the payment in arrears is postponed for a defaulter and he/she is in the period of postponement, or a defaulter is paying the arrears according to the payment schedule of the rehabilitation plan;
3. Where the Deliberative Committee on Disclosure of Information on Pension Premiums in Article 97-2 (2) of the Act (hereinafter referred to as “the Deliberative Committee on Disclosure of Information on Pension Premiums”) deems that there is no actual benefit of disclosing personal information of a defaulter (referring to personal information of an employer), the amount of arrears, etc. (hereinafter referred to as “personal information, etc.” in this Article), in such cases as where a delinquent person suffered heavy property loss due to disasters, etc. and his/her business is facing a serious crisis.
(2) Where the Health Insurance Corporation and the Deliberative Committee on Disclosure of Information on Pension Premiums deliberate on and select persons whose personal information, etc. is subject to disclosure pursuant to Article 97-2 (2) and (3), they shall decide whether such persons are financially capable of making the payments pursuant to Article 97-2 (1) upon overall consideration of their property status and income level, whether they are a minor, and other circumstances.
(3) Where the Health Insurance Corporation issues a notice to a person whose personal information, etc. is subject to disclosure that his/her personal information, etc. is subject to disclosure pursuant to Article 97-2 (3), it shall urge the payment of arrears; where there are grounds for exclusion of disclosure pursuant to the proviso to paragraph (1) of the same Article, it shall guide him/her to submit materials for explanation thereof.
(4) Where the Health Insurance Corporation discloses personal information, etc. of a defaulter pursuant to Article 97-2 (4), it shall disclose the name or trade name (where the defaulter is a corporation, including the name of the corporation and the name of a representative of the corporation), age, address, payment deadline, amount of arrears and period of arrears of the defaulter.
[This Article Newly Inserted by Presidential Decree No. 24499, Apr. 16, 2013]

Article 98 (Order of Priority in Collection of Contributions)

The order of priority to collect contributions or other dues under this Act shall follow the order of priority to collect contributions under the National Health Insurance Act.

Article 99 (Expiration of Right to Collect Contributions, etc.)

The right to collect contributions and arrears from an individually insured person, voluntarily insured person, or voluntarily and continuously insured person shall terminates in any of the following cases:
1. When a currently or formerly insured dies;
2. When the person in question receives old age pension benefits or a lump-sum refund under Article 77 (1);
3. When the right is extinguished by prescription under Article 115 (1).

Article 100 (Appropriation and Return of Erroneous or Excess Payments)

(1) If the Service finds that an erroneous or excess payment has been made in the course of collecting contributions, arrears or expenses for disposition on default, the Service shall appropriate the erroneous or excess payment for contributions or other dues under this Act, as prescribed by Presidential Decree.
(2) Where an amount remains after appropriation under paragraph (1), the Service shall immediately determine to return it and the Health Insurance Corporation shall pay it as prescribed by Presidential Decree.
(3) Interest prescribed by Presidential Decree shall be added to such erroneous or excess payment in cases falling under paragraphs (1) and (2).

Enforcement Ordinance

Article 73 (Appropriation and Return of Erroneous or Overpayment)

(1) Where any erroneous or overpayment referred to in Article 100 of the Act has been made, the Service shall appropriate it for purposes in the following order. In such cases, Article 65 shall apply mutatis mutandis to the method of appropriating dues referred to in subparagraph 3:
1. Expenses of dispositions against default;
2. Amounts to be recovered and arrears referred to in Article 57 (3) of the Act;
3. Unpaid pension premiums, and arrears referred to in Article 97 of the Act;
4. One month’s pension premiums to be paid: Provided, That no erroneous or overpayment shall be appropriated against the will of a person eligible to receive the remaining amount of erroneous or overpayment under paragraph (2).
(2) Where any erroneous or overpayment remains after appropriation under paragraph (1), the Health Insurance Corporation shall return the remaining amount of money in the following order. In such cases, if at least two persons are in the same priority position, Article 40 shall apply to the method of return:
1. A person who has paid pension premiums (where the amount to be refunded to an employer cannot be refunded due to the closure of place of business, death of the employer, his/her unknown whereabouts, etc., workers shall be deemed to have paid pension premiums, with regard to contributions made by workers of the relevant place of business pursuant to Article 88 (3) of the Act among the amount to be refunded);
2. A beneficiary of a survivor pension under Article 73 of the Act;
3. An heir of a person falling under subparagraph 1.
(3) "Interest prescribed by Presidential Decree" referred to in Article 100 (3) of the Act means an amount obtained by multiplying an erroneous or overpayment referred to in Article 100 (1) by the interest rate on additional dues on refund of national taxes referred to in Article 43-3 (2) of the Enforcement Decree of the Framework Act on National Taxes for the period, beginning with any of the following dates, and ending with the date a determination to appropriate or return such erroneous or overpayment is made:
1. Where an erroneous or overpayment is made after a report on change of insured status is filed under Article 21 of the Act: seven days after the date a report on change of insured status is filed;
2. Cases other than those referred to in paragraph (1): the date immediately following the date any erroneous or overpayment is made.
(4) Where the Service intends to appropriate an erroneous or overpayment under paragraph (1) or the Health Insurance Corporation intends to return the remainder of an erroneous or overpayment under paragraph (2), it shall give written notice of such fact to the persons provided for in paragraph (2).
(5) Paragraphs (1) through (4) shall apply mutatis mutandis to any erroneous or overpayment made while collecting repayments of lump-sum refunds and postponed contributions; paragraphs (1), (2) and (4) shall apply mutatis mutandis to any erroneous or overpayment made while collecting an amount to be recovered. In such cases, "Health Insurance Corporation" shall be construed as "Service".

Article 100-2 (Application of Legal Fiction of Contributions as Being Paid by Individually Insured Persons)

If a mandatorily applicable workplace referred to in the main sentence of Article 8 (1) fails to meet the mandatorily applicable workplace criteria, contributions that have been paid before an employer files a report pursuant to Article 21 (1) shall be deemed contributions paid by an individually insured person.
[This Article Newly Inserted by Act No. 10783, Jun. 7, 2011]

Article 100-3 (Subsidies for Contributions)

(1) Where a workplace-based insured person referred to in Article 8 who is a Korean national is hired by a workplace of the scale prescribed by Presidential Decree and earns an amount of income prescribed by Presidential Decree, the State may partially subsidize the employee contribution and an employer contribution for the relevant workplace-based insured person within budgetary limits.
(2) Matters necessary to determine the amount of support, methods, procedures, etc. for contributions referred to in paragraph (1) shall be prescribed by Presidential Decree.
[This Article Newly Inserted by Act No. 11143, Dec. 31, 2011]

Enforcement Ordinance

Article 73-2 (Those Eligible for Pension Premium Subsidies)

(1) "Workplace of the scale prescribed by Presidential Decree" referred to in Article 100-3 (1) of the Act means a workplace (excluding public institutions defined in subparagraph 1 of Article 2 of the Act on the Prevention of Corruption and the Establishment and Management of the Anti-Corruption and Civil Rights Commission; hereinafter the same shall apply) where the number of employees, excluding the employer (referring to the CEO in cases of a corporation), among workplace-based insured persons referred to in Article 8 of the Act shall be one of the followings:
1. A workplace where the number of employees is less than ten persons as of the last day of the month in which the date of application for subsidies falls, and where the monthly average number of employees in the year immediately preceding the year in which an application for subsidies is filed is less than ten persons;
2. A workplace where the number of employees is less than ten persons as of the last day of the month in which the date of application for subsidies falls, and where the number of employees during the three consecutive months immediately preceding the month in which the date of application for subsidies falls, in the year in which the date of application for subsidies falls, (beginning with the month a workplace has become a mandatorily applicable workplace and ending with the month in which the date of application for subsidies falls, if it becomes a mandatorily applicable workplace referred to in Article 8 (1) of the Act in the year of the date an application for subsidies is filed, and such period does not exceed three months) is less than ten persons.
(2) Where the number of employees in a workplace, which has become eligible for pension premium subsidies pursuant to paragraph (1), exceeds ten persons for three consecutive months in the relevant year, payment of pension premium subsidies shall be suspended, beginning with the month of the date a cause thereof arises, and ending with the last month of the pertinent year.
(3) "Amount of income prescribed by Presidential Decree" referred to in Article 100-3 (1) of the Act means the standard monthly income referred to in Articles 6 and 7, which is equivalent to an amount notified by the Minister of Health and Welfare, after consultation with the Minister of Employment and Labor in consideration of the insurance subscription status according to employees' income levels, wage growth rate, labor market conditions, relationship with other statutes, etc.
[This Article Newly Inserted by Presidential Decree No. 23908, Jun. 29, 2012]

Enforcement Ordinance

Article 73-3 (Amount, Methods, etc. of Pension Premium Subsidies)

(1) The amount of pension premium subsidies referred to in Article 100-3 (2) of the Act shall be notified by the Minister of Health and Welfare following consultation with the Minister of Employment and Labor in consideration of employees' income levels, within the limit of 1/2 of the pension premiums borne by an employer and employee, respectively.
(2) An employer who intends to obtain pension premium subsidies referred to in paragraph (1) shall file an application for pension premium subsidies to the Service, as prescribed by Ordinance of the Ministry of Health and Welfare.
(3) Upon receiving an application filed under paragraph (2), the Service shall verify each month whether the relevant employer has paid pension premiums within the payment deadline referred to in Article 89 of the Act, and provide a pension premium subsidy for the relevant month. In such cases, the period for providing subsidies shall start in the month in which the date of application for pension premium subsidies falls and end in the last month of the pertinent year.
(4) Where a workplace is receiving pension premium subsidies as at the end of each year and the average monthly number of its employees for the pertinent year is less than ten persons, such workplace shall be deemed to have filed an application for pension premium subsidies referred to in paragraph (2) on January 1 of the following year and thus, may be continuously provided with pension premium subsides for the following year.
(5) Where pension premium subsidies have been suspended under Article 73-2 (2), no application referred to in paragraph (2) shall be filed until the last month of the pertinent year.
(6) Except as otherwise expressly provided for in paragraphs (1) through (5), matters necessary for filing an application for pension premium subsidies, and notification of results thereof and other matters shall be prescribed by Ordinance of the Ministry of Health and Welfare.
[This Article Newly Inserted by Presidential Decree No. 23908, Jun. 29, 2012]

Article 100-4 (Clawback of Subsidies for Contributions)

(1) Where a person who has obtained subsidies for contributions under this Act falls under any of the following cases, the State may fully or partially claw back the subsidies that he/she has obtained:
1. Where the person has obtained subsidies by fraudulent or other illegal means;
2. Where subsidies were erroneously provided.
(2) Matters necessary for identifying persons subject to clawback under paragraph (1), criteria and method for clawback and other matters shall be prescribed by Presidential Decree.
(3) Where the State claws back subsidies as pursuant to paragraph (1), if a person who is supposed to return the subsidies is deemed incapable of returning such subsidies either because he/she has gone missing, has no property, or other inevitable reasons exist, the State may write off the deficits.
(4) The clawback of subsidies under paragraph (1) and write-off of deficits under paragraph (3) shall be entrusted to the Service. In such cases, Article 57-2 shall apply mutatis mutandis to clawback of subsidies.
[This Article Newly Inserted by Act No. 11143, Dec. 31, 2011]

Enforcement Ordinance

Article 73-4 (Recovery of Subsidy on Pension Premiums)

(1) If a person who has obtained subsidy on pension premiums pursuant to Article 100-4 of the Act falls under any of the following cases, the Service shall recover an amount prescribed in the relevant subparagraph:
1. Where a person has obtained subsidy on pension premium upon filing an application by deceit or other wrongful means despite his/her failure to meet the requirements for application at the time of filling an application for the subsidies: all the subsidies provided;
2. Where a person is found to have continuously obtained subsidy on pension premiums although the cause of the suspension of subsidy payments referred to in Article 73-2 (2) has arisen: an amount provided since the month immediately following the month in which the date of occurrence of such cause falls;
3. Where the standard monthly income of an employee eligible for subsidies on pension premiums (limited to employees who have newly acquired the status of a workplace-based insured person in the relevant year) for the following year exceeds 1,100/1,000 of the upper income limits notified pursuant to Article 73-2 (3): all the amount the employee has obtained;
4. Where subsidies on pension premiums are found to have been provided to a person who is not eligible for the subsidies on the grounds, such as an employer's failure to report: an amount of subsidies erroneously provided.
(2) Where the causes of recovery of subsidies referred to in Article 100-4 of the Act arise, the Service shall notify the relevant employer of such fact and give notice of an amount to be recovered to him/her and collect it, as prescribed by Ordinance of the Ministry of Health and Welfare. In such cases, Article 41 (1) and (2) shall apply mutatis mutandis to the procedures for giving notice.
[This Article Newly Inserted by Presidential Decree No. 23908, Jun. 29, 2012]

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

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