(1) “When the Minister of Employment and Labor deems it incapable of paying wages, etc.” by the Presidential Decree, under Article 7 (1) 3, means situations where an employer meets all of the conditions described in the following subparagraphs and the retired worker with unpaid wages, etc., makes an application, thus, the Minister of Employment and Labor may acknowledge the employer as being incapable of paying the unpaid wages, etc. (hereinafter referred to as the “acknowledgement of facts such as bankruptcy, etc.”)：
1. The number of workers ordinarily employed (hereinafter referred to as “the number of workers”) calculated according to the method in Table 1 is 300 or less；
2. The business has been closed or is in the process of being closed for reasons described in any of the following items：
A. The business’ production or operation activities have stopped, and major business facilities have been seized or provisionally seized, or transferred in order to repay debts (including cases where auctioning-off under the Civil Execution Act is under way)；
B. Approval, permission, registration, etc., granted to the business have been cancelled or terminated；or
C. The business’ main production and operation activities have been suspended for one month or more；
3. The employer is incapable of paying wages, etc., or remarkably difficult to pay wages, etc., for reasons described in any of the following items：
A. As of the date of the recognition of facts such as bankruptcy, etc., the whereabouts of the employer had been unknown for one month or more；or
B. It is considered to take three months or more from the date of application for the recognition of facts such as bankruptcy, etc., to cash in or retrieve the employer’s assets；and
C. When an employer of a business with less than 10 full-time workers had not payed wages to the worker who had requested recognition of bankruptcy, etc, within three months after the day of liquidation pursuant to Article 36 of Labor Standards Act；
(2) The application for the recognition of facts such as bankruptcy, etc., prescribed in paragraph (1) shall be made within one year from the date following the date of retirement from the business concerned.
(3) Necessary matters concerning the application for the recognition of facts such as bankruptcy, etc., prescribed in paragraph (2) shall be prescribed by the Ordinance of the Ministry of Labor.
<This Article Wholly Amended by Presidential Decree No. 22490, Nov. 15, 2010>

The ceiling amount for wages, etc. (hereinafter referred to as the “subrogated payment”) that the Minister of Employment and Labor pays on behalf of an employer pursuant to Article 6 (1) of the Act shall be decided by the Minister of Employment and Labor according to the age of a worker at the time of retirement after consultation with the Minister of Strategic Planning and Finance in consideration of wages, price increase rates, financial conditions of the fund, etc., and the contents of the decision shall be announced in an official gazette and one or more daily newspapers registered as having a nationwide circulation pursuant to Article 7 (1) of the Act on Registration, etc. of Periodicals.
<This Article Wholly Amended by Presidential Decree No. 22490, Nov. 15, 2010>

(1) An employee eligible for a substitute payment pursuant to Article 7 (1) 1 through 3 of the Act (hereinafter referred to as "general substitute payment") shall be the employee who has retired from the relevant business or place of business (hereinafter referred to as "business") within three years from the date no more than one year has passed from each of the following dates:
1. Where a ruling to commence rehabilitation proceedings under Article 7 (1) 1 of the Act or a ruling declaring bankruptcy under subparagraph 2 of the same paragraph (hereinafter referred to as "declaration of bankruptcy, etc.") was issued, the filing date of the application for such ruling;
2. Where the court has declared bankruptcy ex officio after an application for the commencement of rehabilitation procedures was filed under the Debtor Rehabilitation and Bankruptcy Act, the filing date of the application for commencement of such procedures or the declaration date of bankruptcy;

3. Where a fact of bankruptcy, etc. was acknowledged pursuant to Article 5 (1), the filing date of the application for acknowledgment of the fact of bankruptcy, etc. (if the application was filed on the day following a public holiday because the last day of the application period under Article 5 (2) is a public holiday, referring to the last day of the application period; and if two or more applications were filed for the same fact which has become the basis for acknowledging the fact of bankruptcy, etc., referring to the date the first application was filed; hereinafter the same shall apply).
(2) An employee eligible for a substitute payment under Article 7 (1) 4 of the Act (hereinafter referred to as "substitute payment of small amount") shall be the one who has filed a lawsuit, application, etc. concerning a judgment, order, conciliation, ruling, etc. (hereinafter referred to as "judgment, etc.") that falls under any item of Article 7 (1) 4 of the Act, within two years from the day following the date of retirement from the business.
[This Article Wholly Amended by Presidential Decree No. 22490, Nov. 15, 2010]

(1) An employer against whom an employee is eligible to receive a general substitute payment shall be the one to whom any ground prescribed in Article 7 (1) 1 through 3 occurs after operating the relevant business for at least six months after becoming subject to the application of the Act under Article 3 of the Act.
(2) An employer against whom an employee is eligible to receive a substitute payment of small amount shall be the one who meets all of the following requirements:
1. The employer shall have employed the employee for the business subject to the application of the Act under Article 3 of the Act;
2. The employer shall have operated the relevant business for at least six months until the retirement date of the relevant employee: Provided, That where an employer who is a subcontractor of a contract for construction work under Article 44-2 (1) of the Labor Standards Act (hereafter in this subparagraph, referred to as "subcontractor who is not a constructor") has not operated the relevant business for at least six months until the retirement date of the relevant employee, the immediate upper tier contractor of the subcontractor who is not a constructor (where the immediate upper tier contractor is not a constructor defined in subparagraph 7 of Article 2 of the Framework Act on the Construction Industry, referring to the constructor under the same subparagraph who is at the lowest tier among the upper tier contractors; hereinafter the same shall apply) shall have operated the relevant business for at least six months until the retirement date of the relevant employee;
3. The employer shall have received a judgment, etc. that falls under any item of Article 7 (1) 4 of the Act by failing to pay wages, etc. to the relevant employee.
[This Article Wholly Amended by Presidential Decree No. 22490, Nov. 15, 2010]

(1) Any person who intends to receive a substitute payment pursuant to Article 7 of the Act shall file a claim with the Minister of Employment and Labor within the period classified as follows:
1. A general substitute payment: Within two years from the date of declaration of bankruptcy, etc. or the acknowledgment of a fact of bankruptcy, etc.;
2. A substitute payment of small amount: Within one year from the judgment, etc. thereof.
(2) Matters necessary for claiming and making substitute payments under paragraph (1) shall be prescribed by Ordinance of the Ministry of Employment and Labor.
[This Article Wholly Amended by Presidential Decree No. 22490, Nov. 15, 2010]

(1) A person who claims a general substitute payment for bankruptcy pursuant to Article 9 (1) 1 shall obtain verification of the following matters from the Minister of Employment and Labor, and shall file an application for the verification along with a claim for a general substitute payment under Article 9 (1) 1:
1. The date of the declaration of bankruptcy, etc. or the acknowledgment of a fact of bankruptcy, etc., and the date of application therefor;
2. Date of retirement and the age as at the time of retirement;
3. The wages or business suspension allowances for the final three months of service, and the overdue amount out of the retirement benefits for the final three years of service;
4. The amount of the general substitute payment for bankruptcy to be received;
5. The fact that the relevant employer falls under an employer referred to in Article 8(1).

(2) If necessary to make verifications pursuant to paragraph (1), the Minister of Employment and Labor shall take necessary measures, such as requiring the relevant employer, bankruptcy administrator, administrator, manager, etc. to report matters related to the declaration of bankruptcy, etc. or to submit related documents pursuant to Article 22 of the Act.

(3) Matters necessary for verifying under paragraph (1) shall be prescribed by Ordinance of the Ministry of Employment and Labor.

[This Article Wholly Amended by Presidential Decree No. 22490, Nov. 15, 2010]

The Minister of Employment and Labor shall take necessary measures to exercise the rights and secure unpaid wages, etc., if the Minister has subrogated right sto claim unpaid wages, etc., pursuant to Article 8 (1).
<This Article Wholly Amended by Presidential Decree No. 22490, Nov. 15, 2010>

(1) When collecting charges pursuant to Article 9 (1) of the Act, the Minister of Employment and Labor shall collect them together with the industrial accident compensation insurance premiums prescribed in Article 13 (1) 2 of the Act on the Collection, etc. of Premiums for Employment Insurance and Industrial Accident Compensation Insurance (hereinafter referred to as “Employment and Industrial Accident the Insurance Premium Collection Act”).
(2) The Minister of Employment and Labor shall calculate every month the charges collected in an integrated manner pursuant to paragraph (1) and pay them into the Fund.
<This Article Wholly Amended by Presidential Decree No. 22490, Nov. 15, 2010>

The Minister of Employment and Labor shall, when he/she has decided the rate of charges pursuant to Article 9 (2) of the Act, announce the contents of the decision in an official gazette and one or more daily newspapers registered as having a nationwide circulation pursuant to Article 9 (1) of the Act on Registration, etc. of Periodicals.
<This Article Wholly Amended by Presidential Decree No. 22490, Nov. 15, 2010>

(1) Deleted.
(2) A judgment of whether or not an employer is eligible for the reduction of charges under subparagraphs 2 through 4 of Article 10 of the Act shall be made based on the end of a previous year.
<This Article Wholly Amended by Presidential Decree No. 22490, Nov. 15, 2010>

(1) Deleted.
(2) An employer who intends to have charges reduced pursuant to subparagraphs 2 through 4 of Article 10 of the Act shall submit an application for the reduction of charges as prescribed by the Ordinance of the Ministry of Employment and Labor, after meeting the conditions for the reduction of charges prescribed in the same subparagraph.
(3) The Minister of Employment and Labor shall, after reviewing the submitted documents referred to in paragraph (2), notify the employer concerned who meets the conditions for the reduction of charges of specific details of the reduction.
<This Article Wholly Amended by Presidential Decree No. 22490, Nov. 15, 2010>

The Minister of Employment and Labor shall, when he/she has decided criteria for reduction in charges pursuant to the latter part of Article 10 of the Act, announce the contents of the decision in an official gazette and one or more daily newspapers registered as having a nationwide circulation pursuant to Article 9 (1) of the Act on the Registration, etc. of Periodicals.
<This Article Wholly Amended by Presidential Decree No. 22490, Nov. 15, 2010>

(1) For businesses subject to the Act, the Minister of Employment and Labor shall prepare and keep a card about charges and other levies for each workplace.
(2) The Minister of Employment and Labor shall, if an employer intends to inspect the card about charges and other levies, let him/her inspect it and if an employer intends to have a certificate issued for necessary matters, may issue it.
<This Article Wholly Amended by Presidential Decree No. 22490, Nov. 15, 2010>

(1) If a person entitled to receive a substitute payment is unable to receive it due to an injury or disease, he/she may delegate his/her family member to receive it pursuant to Article 11 (2) of the Act.
(2) If a person delegated to receive a substitute payment under paragraph (1) intends to receive the substitute payment, he/she shall submit a document certifying the fact of such delegation and family relations.
[This Article Wholly Amended by Presidential Decree No. 22490, Nov. 15, 2010]

An employer who is ordered to submit a list of properties pursuant to Article 13 of the Act shall submit the list containing matters described in the following subparagraphs to the Minister of Employment and Labor：
1. Ownership, surface right, right to lease on a deposit basis and right of lease with regard to real estate, and right to claim delivery of real estate, and right to claim the transfer thereof；
2. Ownership and right to claim delivery of, automobiles, construction machinery, vessels and aircraft required to be registered, and right to claim the transfer thereof；
3. Mining right, fishing right, and other rights to which real estate-related provisions apply mutatis mutandis, and right to claim the transfer thereof；and
4. In the case of claims which are secured by liens, such as pledges and mortgages, their purpose and content of the liens
<This Article Wholly Amended by Presidential Decree No. 22490, Nov. 15, 2010>

(1) If a person intends to receive or already received subrogated payment or a loan in a false or fraudulent means under Article 14 (1) of the Act, the Minister of Employment and Labor shall not pay the requested amount or shall request a return of the amount already paid in accordance with the classification described in the following subparagraphs：
1. Where the person does not satisfy the requirements to receive subrogated payment or the loan：all of the requested or paid amount；and
2. Where the person satisfies the requirements to receive subrogated payment：part of the requested or paid amount (referring to an amount equivalent to fraudulent gains).
(2) If the Minister of Employment and Labor has decided to request a return of the subrogated payment or the loan (including additional amount referred to in Article 14 (3) of the Act；hereinafter the same shall apply.) pursuant to paragraph (1), the Minister shall notify the person liable for the payment that he/she should make that payment.
(3) A person who receives notification pursuant to paragraph (2) shall pay the notified amount within 30 days from the date of notification.
(4) The necessary procedures for the non-payment or return of subrogated payment, or any other fraudulent receipt shall be by the Ordinance of the Ministry of Labor.
<This Article Wholly Amended by Presidential Decree No. 22490, Nov. 15, 2010>
<Title of this Article Amended by Presidential Decree No. 25630, Sep. 24, 2014>

(1) A person who intends to report the fact (hereinafter referred to as “fraudulent receipt”) that subrogated payment has been received in a false or other fraudulent ways as prescribed in Article 15 of the Act shall report it to a local labor office under the conditions prescribed by the Ordinance of the Ministry of Labor.
(2) An investigation agency which is informed of the fraudulent receipt of subrogated payment under Article 15 of the Act shall notify a local labor office of the fact without delay.
(3) If a person who has reported or informed on the fraudulent receipt of subrogated payment under Article 15 of the Act intends to get reward money (hereinafter referred to as “reward money”) under the same Article, he/she shall apply to the Minister of Employment and Labor to get the reward money under the conditions prescribed by the Ordinance of the Ministry of Employment and Labor.
<This Article Wholly Amended by Presidential Decree No. 18913, Jun. 30, 2005>

A reward shall be paid by the Minister of Employment and Labor in accordance with the following standards within the limit of 100 million won. In such cases, the amount unit below one thousand won shall not be paid:
1. If the substitute payment received through fraudulent or other improper means (hereafter in this Article, referred to as "amount of fraudulent receipt") is at least 50 million won: 11 million won + (Amount of improper receipt exceeding 50 million won x 10/100);
2. If the amount of fraudulent receipt is at least 10 million won but less than 50 million won: 3 million won + (Amount of improper receipt exceeding 10 million won x 20/100);
3. If the amount of fraudulent receipt is less than 10 million won: Amount of fraudulent receipt x 30/100.
[This Article Wholly Amended by Presidential Decree No. 22490, Nov. 15, 2010]

Reward money shall be given only when a person reports or inform within three years from the date on which the recipient who has received subrogated payment in a false or other fraudulent ways (hereinafter referred to as the “fraudulent recipient”), has been given the subrogated payment.
<This Article Wholly Amended by Presidential Decree No. 22490, Nov. 15, 2010>

(1) If two or more persons, each, report or inform on the fraudulent receipt of the same subrogated payment, they shall be regarded as one case of reporting or informing in calculating reward money.
(2) In the case of paragraph (1), the reward money shall be properly divided and distributed among the persons involved in consideration of the extent to which each person contributes to the discovery of the fraudulent receipt but if those who are to receive the reward money have already made an agreement on how to distribute the money and applied for the payment of reward money, the payment shall be made in accordance with the method agreed upon.
<This Article Wholly Amended by Presidential Decree No. 22490, Nov. 15, 2010>

Reward money shall be paid after the decision on such payment is confirmed as the deadline for raising an objection has passed or the procedures for raising an objection have been concluded, after redemption notification of subrogated payment under Article 20 (2) of the Act.
<This Article Wholly Amended by Presidential Decree No. 22490, Nov. 15, 2010>

The provisions of Articles 10, 19-2 through 19-6, 20 through 27, 30-2 through 30-4, 31 through 33, 37 through 40, 40-2 through 40-6, 41, 41-2 through 41-4, 43, 43-2, 44 through 53 of the Enforcement Decree of the Insurance Premium Collection Act shall apply mutatis mutandis with regard to the calculation, payment and collection of charges and other levies under the Act. In this case, “premiums” or “insurance premium for industrial injury” shall be read as “charges”, “the Service” or “National Health Insurance Service” as “the Minister of Employment and Labor (referring to the Korea Workers’ Compensation & Welfare Service or the National Health Insurance Service in case the authority is delegated to them, pursuant to Article 24)”, “estimated premiums” as “estimated charges”, “insurance year” as “fiscal year”, “insurance relations” as “wage claim guarantee relations”, “premium rate” as “charge rate”, “monthly premiums” as “monthly charges”, “final premiums” as “final charges” and “insurance affairs” as “wage claim guarantee affairs”.
<This Article Wholly Amended by Presidential Decree No. 22490, Nov. 15, 2010>