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ACT ON THE ESTABLISHMENT AND OPERATION OF PRIVATE CORRECTIONAL INSTITUTIONS, ETC.

Act No. 6206, Dec. 21, 2007

Amended by Act No. 8728, Dec. 21, 2007

Act No. 9522, Mar. 25, 2009

CHAPTER I GENERAL PROVISIONS
 Article 1 (Purpose)
The purpose of this Act is to enhance the operational efficiency of correctional institutions, etc., enforce proper treatment for inmates, and facilitate their reintegration into society by prescribing matters necessary to entrust private entities with part of the affairs concerning the establishment and operation of such correctional institutions, etc. pursuant to Article 7 of the Administration and Treatment of Correctional Institution Inmates Act.
[This Article Wholly Amended by Act No. 9522, Mar. 25, 2009]
 Article 2 (Definitions)
The definitions of terms used in this Act shall be as follows:
1. The term "correctional services" means the confinement, administration, correction, edification, vocational education, prison labor, classification and treatment of inmates pursuant to subparagraph 4 of Article 2 of the Administration and Treatment of Correctional Institution Inmates Act (hereinafter referred to as "inmates") and other services determined by the Administration and Treatment of Correctional Institution Inmates Act;
2. The term "trustee" means any person who is selected to perform correctional services entrusted pursuant to Article 3;
3. The term "corrections corporation" means any corporation that establishes and operates a correctional institution, juvenile correctional institute or detention house and branches thereof (hereinafter referred to as "correctional institution, etc.") upon universal entrustment of correctional services by the Minister of Justice;
4. The term "private correctional institution, etc." means any correctional institution, etc. operated by any corrections corporation.
[This Article Wholly Amended by Act No. 9522, Mar. 25, 2009]
 Article 3 (Entrustment of Correctional Services to Private Sector)
(1) The Minister of Justice may, if deemed necessary, entrust the correctional services under his/her authority to any corporation or organization other than public organizations or to any organ of such corporation or organization or any individual in accordance with the provisions of this Act: Provided, That if he/she intends to entrust the correctional services universally to enable the establishment and operation of one or more correctional institutions, he/she may entrust such services only to corporations.
(2) In selecting trustees of correctional services, the Minister of Justice shall do so after considering comprehensively human resources, organization, facilities, financial capacity, public confidence, etc. of such trustees.
(3) Methods and procedures for selection under paragraph (2) and other necessary matters regarding the selection of trustees shall be determined by the Minister of Justice.
[This Article Wholly Amended by Act No. 9522, Mar. 25, 2009]
 Article 4 (Conclusion of Entrustment Contract)
(1) In entrusting correctional services, the Minister of Justice shall enter into a contract with a person to be entrusted with such services (hereinafter referred to as "entrustment contract") in such a manner as prescribed by Presidential Decree.
(2) The Minister of Justice may, if deemed necessary, enter into an entrustment contract after dividing the entrusted services into those to be performed by employees of a private correctional institution, etc. and those to be performed by public officials under his/her control dispatched to such private correctional institution, etc.
(3) The Minister of Justice shall consult with the Minister of Strategy and Finance about the details of an entrustment contract prior to the conclusion of such contract.
(4) The term of an entrustment contract shall be as follows and may be renewable:
1. Where a trustee bears expenses involved in the establishment of the relevant correctional institution, etc., not less than ten but not more than twenty years;
2. In other cases, not less than one but not more than five years.
[This Article Wholly Amended by Act No. 9522, Mar. 25, 2009]
 Article 5 (Details of Entrustment Contract)
(1) Each entrustment contract shall include the matters provided for in the following subparagraphs:
1. Matters relating to the facilities to be offered by a trustee in the performance of entrusted services and the standards for correctional services;
2. Matters relating to the price paid to a trustee for entrustment and the adjustment and methods of payment of such price;
3. Matters relating to the term of the contract, the change and renewal thereof and the cancellation of the contract;
4. Matters relating to the payment of work incentives, consolation money and condolence money in relation to prison labor;
5. Matters relating to the permissible scope of re-entrustment of the services entrusted;
6. Matters relating to the scope of persons to be housed to the institution entrusted;
7. Other matters deemed necessary by the Minister of Justice.
(2) In determining the scope of persons to be housed to an institution upon entrustment under paragraph (1) 6, the Minister of Justice shall take into consideration a trustee's administrative capacity, the security and order of a correctional institution, etc., the issue of whether such entrustment is efficient in facilitating inmates'' reintegration into society, and so on.
[This Article Wholly Amended by Act No. 9522, Mar. 25, 2009]
 Article 6 (Suspension of Entrusted Services)
(1) If a trustee violates this Act or any order or disposition under this Act, the Minister of Justice may order him/her to suspend the entrusted services in whole or in part for a period of not more than six months.
(2) The Minister of Justice shall, upon issuance of an order of suspension under paragraph (1), direct public officials under his/her control to administer the suspended services.
(3) If there are any circumstances to make it difficult to apply paragraph (2) with respect to an order of suspension under paragraph (1), the Minister of Justice may postpone the execution of such suspension order until such circumstances cease to exist.
[This Article Wholly Amended by Act No. 9522, Mar. 25, 2009]
 Article 7 (Cancellation of Entrustment Contract)
(1) The Minister of Justice may cancel an entrustment contract if a trustee falls under any of the following subparagraphs:
1. Where he/she fails to comply with an order of correction provided in Article 22 (2) even after a considerable period has passed since he/she received such order;
2. Where he/she seriously violates this Act or any order or disposition under this Act to the extent that the purpose of supervision can not be attained just by means of an order to suspend entrusted services under Article 6 (1);
3. Where he/she is deemed unfit to continue the services entrusted under this Act due to bad business management, deteriorating financial conditions or other causes.
(2) Either the Minister of Justice or a trustee may cancel the entrustment contract concerned, as stipulated in such contract.
[This Article Wholly Amended by Act No. 9522, Mar. 25, 2009]
 Article 8 (Administration of Services Following Cancellation of Entrustment Contract)
In case of cancellation of an entrustment contract, if it is impossible for the State to immediately administer the entrusted services due to any unavoidable circumstances, the trustee or his/her successor shall continue to administer the entrusted services according to the previous entrustment contract until it is possible for the State to administer those services.
[This Article Wholly Amended by Act No. 9522, Mar. 25, 2009]
 Article 9 (Hearing)
The Minister of Justice shall hold a hearing when intending to cancel an entrustment contract pursuant to Article 7 (1).
[This Article Wholly Amended by Act No. 9522, Mar. 25, 2009]
CHAPTER II CORRECTIONS CORPORATION
 Article 10 (Amendment, etc. to Articles of Incorporation of Corrections Corporation)
(1) Any corporation that is entrusted with correctional services pursuant to the proviso to Article 3 (1) shall amend its articles of incorporation to include the establishment and operation of a private correctional institution, etc. in the area of business which the corporation seeks, prior to the performance of the relevant entrustment contract.
(2) An amendment to the articles of incorporation under paragraph (1) and amendment to the articles of incorporation of a corrections corporation shall be subject to authorization of the Minister of Justice: Provided, That an amendment to any insignificant matters as prescribed by Presidential Decree shall be reported to the Minister of Justice.
[This Article Wholly Amended by Act No. 9522, Mar. 25, 2009]
 Article 11 (Officers)
(1) A corrections corporation shall appoint a person to take full charge of the entrusted services from among its directors.
(2) The representative, auditor, and directors taking full charge of the entrusted services under paragraph (1) (hereinafter referred to as "officers") of a corrections corporation shall take office as such with approval of the Minister of Justice.
(3) A majority of directors of a corrections corporation shall be nationals of the Republic of Korea, and not less than one-fifth of those directors shall have minimum five-year experience in correctional services.
(4) Any person who falls under any of the following subparagraphs shall be disqualified from holding the position of officer in a corrections corporation and lose his/her position as an officer if he/she comes to fall under such grounds for disqualification after taking office as such:
1. A person who falls under any subparagraph of Article 33 of the State Public Officials Act;
2. A person for whom two years have yet to pass from the time approval of the assumption of office as an officer was revoked pursuant to Article 12;
3. A person for whom two years have yet to pass from the time he/she was dismissed by an order of dismissal under Article 36.
(5) Necessary matters regarding the terms of office and duties of officers of corrections corporations, the filling of vacancies and the appointment of temporary directors shall be prescribed by Presidential Decree.
[This Article Wholly Amended by Act No. 9522, Mar. 25, 2009]
 Article 12 (Revocation of Approval for Taking Office as Officer)
The Minister of Justice may revoke his/her approval for the assumption of office if an officer engages in an act falling under any of the following subparagraphs:
1. Where he/she holds concurrently any two offices in violation of Article 13;
2. Where he/she refuses to house an inmate in violation of Article 25 (2);
3. Where he/she is sentenced to imprisonment or a fine under Article 42 and such sentence becomes final and conclusive;
4. Where he/she engages in a dispute between officers, commits an accounting fraud, makes a false report or submits false materials to the Minister of Justice, or engages in unfair acts or practices such as refusal to perform the entrusted services without any justifiable ground, which makes it impossible to attain the purpose of establishment of the relevant corrections corporation.
[This Article Wholly Amended by Act No. 9522, Mar. 25, 2009]
 Article 13 (Prohibition on Concurrent Holding of Positions by Officers, etc.)
(1) The representative of a corrections corporation shall be prohibited from concurrently holding the position of head of a private correctional institution, etc. operated by such corporation.
(2) A director shall be prohibited from concurrently holding the position of auditor or employee (excluding the head of private correctional institutions, etc.) of a private correctional institution, etc. operated by such corporation.
(3) An auditor shall be prohibited from concurrently holding the position of representative, director or employee of the relevant corrections corporation (including the employee of a private correctional institution, etc. operated by such corporation).
[This Article Wholly Amended by Act No. 9522, Mar. 25, 2009]
 Article 14 (Property)
(1) Each corrections corporation shall have the fundamental property necessary to operate a private correctional institution, etc. in compliance with the standards prescribed by Presidential Decree.
(2) Each corrections corporation shall obtain permission from the Minister of Justice if it seeks to do any of the following acts with respect to its fundamental property: Provided, That any insignificant matters as prescribed by Presidential Decree shall be reported to the Minister of Justice:
1. Sale, gift or exchange;
2. Change in the purpose of its use;
3. Offering as security;
4. Bearing of an obligation or renouncement of a right.
(3) The property of a corrections corporation which is directly used as a confinement facility such as a prison, etc. and is prescribed by Presidential Decree, shall not be sold, gifted, or offered in exchange for any other thing or as security to any person other than the State and other corrections corporations.
[This Article Wholly Amended by Act No. 9522, Mar. 25, 2009]
 Article 15 (Separate Accounting)
(1) An account of a corrections corporation shall be divided into an account on the establishment and operation of a private correctional institution, etc. operated by such corporation and an account on the general affairs of such corporation.
(2) An account on the establishment and operation of a private correctional institution, etc. under paragraph (1) shall be divided into a prison labor account and a general account, and the matters relating to the revenue and expenditure of each such account shall be prescribed by Presidential Decree.
(3) An account on the general affairs of a corporation under paragraph (1) may be divided into a general affairs account and a profit-making project account.
(4) The budget for an account on the establishment and operation of a private correctional institution, etc. under paragraph (2) shall be compiled by the head of such private correctional institution, etc. subject to the deliberation and resolution by the board of directors of the relevant corrections corporation and executed by the head of such private correctional institution, etc.
[This Article Wholly Amended by Act No. 9522, Mar. 25, 2009]
 Article 16 (Budget and Settlement of Accounts)
(1) The fiscal year of a corrections corporation shall be in accordance with the fiscal year of the Government.
(2) A corrections corporation shall submit a business plan and budget for the following fiscal year prior to the commencement of each fiscal year and report the results of business and the settlement of accounts after the end of each fiscal year, to the Minister of Justice, as prescribed by Presidential Decree.
(3) Where a corrections corporation submits a statement of settlement pursuant to paragraph (2), the Minister of Justice may call on the corrections corporation to attach an audit certificate delivered by an independent certified public accountant or accounting corporation.
(4) Necessary matters regarding the accounting rules, budgets and accounting of a corrections corporation shall be determined by the Minister of Justice.
[This Article Wholly Amended by Act No. 9522, Mar. 25, 2009]
 Article 17 (Authorization of Merger and Dissolution)
(1) A corrections corporation shall obtain authorization from the Minister of Justice if it intends to engage in an act falling under any of the following subparagraphs:
1. A merger with another corporation;
2. A split-off or a merger by split-off, if such corporation is a company;
3. Dissolution.
(2) The Minister of Justice may attach conditions to the authorization under paragraph (1).
[This Article Wholly Amended by Act No. 9522, Mar. 25, 2009]
 Article 18 (Reversion of Residual Property)
(1) The reversion of residual property held by a dissolved corrections corporation shall be governed in accordance with the provisions of the articles of incorporation except in the case of a merger or bankruptcy.
(2) Any property of a corrections corporation not disposed of pursuant to paragraph (1) shall revert to the National Treasury.
(3) The State may apply the property reverted to the National Treasury pursuant to paragraph (2) to the projects operated by other private correctional institutions, etc.
(4) The property reverted to the National Treasury pursuant to paragraph (2) shall be administered by the Minister of Justice.
[This Article Wholly Amended by Act No. 9522, Mar. 25, 2009]
 Article 19 (Relationship with Other Acts)
With respect to corrections corporations, the provisions of the Civil Act concerning incorporated associations or foundations, the provisions of the Commercial Act concerning companies, and other Acts providing a basis for the incorporation of such corporations shall apply according to the types of incorporation of those corporations, except as provided for in this Act.
[This Article Wholly Amended by Act No. 9522, Mar. 25, 2009]
CHAPTER III ESTABLISHMENT AND OPERATION OF PRIVATE CORRECTIONAL INSTITUTIONS, ETC.
 Article 20 (Facilities of Private Correctional Institution, etc.)
A corrections corporation shall, in establishing and operating private correctional institutions, etc., be equipped with the facilities meeting the standards prescribed by Presidential Decree.
[This Article Wholly Amended by Act No. 9522, Mar. 25, 2009]
 Article 21 (Organization, etc. of Private Correctional Institution, etc.)
(1) Private correctional institutions, etc. shall establish the organizations equivalent to those of the correctional institutions, etc. provided for in subparagraph 4 of Article 2 of the Administration and Treatment of Correctional Institution Inmates Act.
(2) In operating private correctional institutions, etc., corrections corporations shall have eligible personnel to house and administer the inmates in such correctional institutions, etc. and to perform correctional services.
[This Article Wholly Amended by Act No. 9522, Mar. 25, 2009]
 Article 22 (Inspection of Private Correctional Institutions, etc.)
(1) A corrections corporation shall be subject to the inspection of the Minister of Justice as to whether the facilities of private correctional institutions, etc. conform to this Act and the details of orders and entrustment contracts under this Act.
(2) If the facility in question is found to be unfit for a confinement facility under this Act as a result of the inspection under paragraph (1), the Minister of Justice may order the relevant corrections corporation to correct the facility deficiency.
(3) Necessary matters regarding methods, procedures, etc. for the inspection of facilities under paragraphs (1) and (2) shall be determined by the Minister of Justice.
[This Article Wholly Amended by Act No. 9522, Mar. 25, 2009]
 Article 23 (Operating Expenses)
(1) The Minister of Justice shall provide corrections corporations that operate private correctional institutions, etc. with funds to cover expenses required to operate such correctional institutions, etc., every year, after prior consultation with the Minister of Strategy and Finance.
(2) Standards for annual expenses covered pursuant to paragraph (1) shall be determined by the Minister of Justice within budgetary limits in consideration of the following matters, etc.:
1. Amount of investments in fixed property;
2. Expenses required to operate private correctional institutions, etc.;
3. Estimated expenses if the State should directly operate such correctional institutions, etc.
[This Article Wholly Amended by Act No. 9522, Mar. 25, 2009]
 Article 24 (Legal Fiction of Confinement)
Inmates in private correctional institutions, etc. shall be deemed to be housed in the correctional institutions, etc. under the Administration and Treatment of Correctional Institution Inmates Act.
[This Article Wholly Amended by Act No. 9522, Mar. 25, 2009]
 Article 25 (Treatment of Inmates)
(1) A corrections corporation shall, in performing the entrusted services, render correctional services at least equivalent to those provided for by the correctional institutions, etc. operated by the State which house and administer inmates of the same kind.
(2) No corrections corporation shall refuse to admit a certain person to a private correctional institutions, etc. operated by such corporation for any exceptional reason on the part of such person: Provided, That if deemed especially necessary for confinement, work, edification or other treatment, such corporation may make an application to the Minister of Justice for transfer of an inmate.
(3) Neither the officer or employee of a corrections corporation nor the head or employee of a private correctional institution, etc. shall compel the inmates to adopt a specific religion or ideology.
[This Article Wholly Amended by Act No. 9522, Mar. 25, 2009]
 Article 26 (Earnings from Work)
Earnings from the work of inmates housed in private correctional institutions, etc. shall revert to the National Treasury.
[This Article Wholly Amended by Act No. 9522, Mar. 25, 2009]
 Article 27 (Use, etc. of Security Equipment)
(1) The head of a private correctional institution, etc., who seeks to impose a disposition, etc. under Articles 37 (1) and (2), 63 (3), 68 (1), 77 (1), 97, 100 through 102 and 107 through 109 of the Administration and Treatment of Correctional Institution Inmates Act as applied mutatis mutandis under Article 40, shall obtain approval from a public official dispatched by the Minister of Justice to guide and supervise such private correctional institution, etc. pursuant to Article 33 (2) of this Act (hereafter referred to as "supervisor" in this Article): Provided, That if there is not enough time for obtaining prior approval in urgent situations, the head of the private correctional institution, etc. shall first impose the disposition, etc. and then immediately inform the supervisor thereof for approval.
(2) The head of a private correctional institution, etc. shall attach a written opinion of the competent supervisor when filing an application for the review of eligibility for parole under Article 121 (1) of the Administration and Treatment of Correctional Institution Inmates Act as applied mutatis mutandis under Article 40.
(3) The head of a private correctional institution, etc. shall obtain confirmation from the competent supervisor after examining related materials when seeking to release an inmate under Article 123 of the Administration and Treatment of Correctional Institution Inmates Act as applied mutatis mutandis under Article 40.
[This Article Wholly Amended by Act No. 9522, Mar. 25, 2009]
CHAPTER IV EMPLOYEES OF PRIVATE CORRECTIONAL INSTITUTIONS, ETC.
 Article 28 (Grounds for Disqualification)
Any person who falls under any of the following subparagraphs shall be disqualified from serving as an employee of a private correctional institution, etc. and if he/she comes to fall under any of the following subparagraphs after appointment, he/she shall retire from office:
1. A person who is not a national of the Republic of Korea;
2. A person who falls under any subparagraph of Article 33 of the State Public Officials Act;
3. A person for whom two years have yet to pass after approval for the assumption of office as an officer is revoked under Article 12;
4. A person for whom two years have yet to pass after being dismissed by an order of dismissal under Article 36.
[This Article Wholly Amended by Act No. 9522, Mar. 25, 2009]
 Article 29 (Appointment, Dismissal, etc.)
(1) The representative of a corrections corporation shall be authorized to appoint and dismiss employees of a private correctional institution, etc.: Provided, That the appointment or dismissal of the head of such private correctional institution, etc. or its employee as prescribed by Presidential Decree shall be subject to prior approval of the Minister of Justice.
(2) The representative of a corrections corporation may delegate the authority to appoint and dismiss employees other than the head of a private correctional institution, etc. to the head of such private correctional institution, etc.
(3) Matters relating to the qualifications and methods of appointment for and the training and discipline of employees of private correctional institutions, etc. shall be prescribed by Presidential Decree.
[This Article Wholly Amended by Act No. 9522, Mar. 25, 2009]
 Article 30 (Employees' Duties)
(1) Employees of private correctional institutions, etc. shall each serve as a prison officer under the Administration and Treatment of Correctional Institution Inmates Act, as prescribed by Presidential Decree.
(2) With respect to the service of employees of private correctional institutions, etc., the provisions of Articles 56 through 61, 63, 64 (1) and 65 (1) through (3) and the main sentence of Article 66 (1) of the State Public Officials Act shall apply mutatis mutandis.
[This Article Wholly Amended by Act No. 9522, Mar. 25, 2009]
 Article 31 (Wear of Uniform and Purchase of Weapons)
(1) Employees of private correctional institutions, etc. shall wear their uniforms while on duty, as determined by the Minister of Justice.
(2) Weapons required to operate private correctional institutions, etc., for which the relevant corrections corporations shall bear necessary expenses, shall be purchased and assigned by the Minister of Justice.
(3) Necessary matters regarding the purchase and assignment of weapons for use by private correctional institutions, etc. shall be determined by the Minister of Justice.
[This Article Wholly Amended by Act No. 9522, Mar. 25, 2009]
CHAPTER V SUPPORT, SUPERVISION, ETC.
 Article 32 (Support)
The Minister of Justice may, if deemed necessary, dispatch public officials under his/her control to private correctional institutions, etc. to charge him/her to provide assistance, ex officio or at the request of the heads of the relevant corrections corporations or private correctional institutions, etc.
[This Article Wholly Amended by Act No. 9522, Mar. 25, 2009]
 Article 33 (Supervision, etc.)
(1) The Minister of Justice shall guide and supervise the services of private correctional institutions, etc. and the work of corrections corporations associated with such services, and may give them necessary directions or orders: Provided, That with respect to the provision of educational and edification programs for inmates, he/she shall respect to the maximum extent possible the opinions of the relevant corrections corporations.
(2) The Minister of Justice shall, if deemed necessary to conduct guidance and supervision under paragraph (1), dispatch public officials under his/her control to private correctional institutions, etc. to guide and supervise the services of such private correctional institutions, etc.
(3) The heads of corrections corporations and private correctional institutions, etc. shall at all times supervise their employees in the performance of their duties and provide them with necessary education.
[This Article Wholly Amended by Act No. 9522, Mar. 25, 2009]
 Article 34 (Reporting and Inspection)
(1) The heads of private correctional institutions, etc. shall report the following matters to the Minister of Justice, every month or every three months, as prescribed by Presidential Decree:
1. Status of custody;
2. Status of the occurrence of accidents and disciplinary punishment within the correctional facilities;
3. Status of the holding and use of weapons and other security equipment;
4. Status of the provision of health and medical services and main and side meals;
5. Status of the implementation of programs for education, vocational training, etc.;
6. Status of participation of inmates in programs outside correctional facilities, such as school attendance, vocational training, leave, field visits, commuting to work outside the prison walls and transferring patients to outside hospitals;
7. Status of the management of prison labor;
8. Matters relating to the administration and discipline of personnel;
9. Other matters deemed necessary by the Minister of Justice.
(2) The Minister of justice may, if deemed necessary, occasionally require corrections corporations or private correctional institutions, etc. to report matters regarding their affairs, accounting and property or order public officials under his/her control to inspect books, documents, facilities and other things. In such cases, if any illegal or unjust fact is discovered, he/she may order such corporations or institutions, etc. to take necessary corrective measures.
[This Article Wholly Amended by Act No. 9522, Mar. 25, 2009]
 Article 35 (Audit of Entrusted Services)
(1) The Minister of Justice shall audit the performance results of the services entrusted at least once per year.
(2) If any illegal or unjust act is deemed to have been committed in the performance of the entrusted services as a result of audit under paragraph (1), the Minister of Justice may order the relevant corrections corporation or private correctional institution, etc. to take appropriate corrective measures, and call on such corporation or institution, etc. to reprimand the officers and employees concerned.
[This Article Wholly Amended by Act No. 9522, Mar. 25, 2009]
 Article 36 (Order to Take Disciplinary Action, etc.)
(1) If an employee of a private correctional institution, etc. violates this Act or any order or disposition under this Act with respect to the entrusted services, the Minister of Justice may order the person authorized to appoint and dismiss the employee to take a disciplinary action, such as dismissal, suspension from office or salary reduction, against such employee.
(2) The heads of a corrections corporation or private correctional institutions, etc. shall, upon receipt of an order to take a disciplinary action under paragraph (1), immediately take such action and then report it to the Minister of Justice.
[This Article Wholly Amended by Act No. 9522, Mar. 25, 2009]
CHAPTER VI SUPPLEMENTARY PROVISIONS
 Article 37 (Legal Fiction as Public Officials)
(1) Employees of private correctional institutions, etc. shall be deemed to be a public servant in accordance with Acts and subordinate statutes.
(2) The persons engaged in correctional services among the officers and employees of corrections corporations, and the employees of private correctional institutions, etc., shall be deemed public officials in the application of penal provisions under the Criminal Act or other Acts.
(3) The heads and employees of private correctional institutions, etc. shall be deemed the heads of correctional institutions, the heads of the houses of detention or prison officers in the application of the provisions of the Criminal Procedure Act or the Act on the Persons Performing the Duties of Judicial Police Officials and the Scope of their Duties.
[This Article Wholly Amended by Act No. 9522, Mar. 25, 2009]
 Article 38 (Compensation for Damage)
(1) If an officer or employee of a corrections corporation or an employee of a private correctional institution, etc. causes damage to the State while performing the entrusted services, on purpose or by negligence, in violation of any Act or subordinate statute, the relevant corrections corporation shall be liable to compensate for such damage.
(2) In order to guarantee the compensation for damage under paragraph (1), a corrections corporation shall deposit cash, securities or other things or take out a performance guarantee insurance policy, in compliance with the standards prescribed by Presidential Decree.
[This Article Wholly Amended by Act No. 9522, Mar. 25, 2009]
 Article 39 (Delegation of Authority)
The Minister of Justice may delegate part of his/her authority under this Act to the Commissioner of the Regional Correctional Office concerned.
[This Article Wholly Amended by Act No. 9522, Mar. 25, 2009]
 Article 40 (Application Mutatis Mutandis of the Administration and Treatment of Correctional Institution Inmates Act)
The Administration and Treatment of Correctional Institution Inmates Act shall apply mutatis mutandis with respect to inmates housed in private correctional institutions, etc., except as contrary to the nature thereof or as otherwise provided for in this Act or the relevant entrustment contract.
[This Article Wholly Amended by Act No. 9522, Mar. 25, 2009]
 Article 41 (Partial Entrustment)
Where, among the services of correctional institutions, etc. operated by the State, the correctional services are entrusted in part by areas of vocational training, prison labor, etc., the provisions governing corrections corporations shall apply mutatis mutandis with respect to the persons entrusted with such services, except as contrary to the nature thereof or as otherwise provided for in the relevant entrustment contract.
[This Article Wholly Amended by Act No. 9522, Mar. 25, 2009]
CHAPTER VII PENAL PROVISIONS
 Article 42 (Penal Provisions)
(1) Any person who falls under any of the following subparagraphs shall be punished by imprisonment for not more than three years or by a fine not exceeding 30 million won:
1. A person who allows another person to operate a private correctional institution, etc. or to administer the entrusted services in violation of the relevant entrustment contract, or accordingly operates the private correctional institution, etc. or administers the entrusted services;
2. A person who continues to administer the entrusted services without authority after an order to suspend the entrusted services is issued or the relevant entrustment contract is cancelled pursuant to Article 6 or 7;
3. A person who commits the act of sale, etc. in violation of the main sentence of Article 14 (2) or paragraph (3) of the same Article.
(2) Any person who falls under any of the following subparagraphs shall be punished by imprisonment for not more than two years or by a fine not exceeding 20 million won:
1. A person who fails to continue the administration of services as required at the time of cancellation of an entrustment contract under Article 8;
2. A person who refuses, evades or interferes with the inspection under Article 22 (1);
3. A person who compels an inmate to adopt a specific religion or ideology in violation of Article 25 (3);
4. A person who fails to obtain approval from a supervisor for the measure, etc. under Article 27 (1);
5. A person who releases an inmate without obtaining confirmation from a supervisor in violation of Article 27 (3);
6. A person who fails to comply with any direction or order given by the Minister of Justice under the main sentence of Article 33 (1) or Article 34 (2);
7. A person who refuses, evades or interferes with the audit under Article 35 (1);
8. A person who fails to comply with an order to take a corrective measure or a demand for reprimand which is given or made by the Minister of Justice under Article 35 (2);
9. A person who fails to take a disciplinary action in violation of Article 36 (2);
10. A person who refuses to perform the entrusted services or who is derelict in his/her duty to perform the entrusted services, without any justifiable ground.
[This Article Wholly Amended by Act No. 9522, Mar. 25, 2009]
 Article 43 (Joint Penal Provisions)
If any officer or employee of a corrections corporation (including any employee of a private correctional institution, etc. operated by the corrections corporation) commits an offense set forth in Article 42 in relation to the business of the corporation, not only shall such offender be punished accordingly, but the corporation shall also be punished by the fine prescribed in the relevant Article: Provided, That this shall not apply to cases where the corporation had not neglected reasonable care and supervision in connection with the relevant matter to prevent such offense.
[This Article Wholly Amended by Act No. 9522, Mar. 25, 2009]
 Article 44 (Fines for Negligence)
(1) Any person who falls under any of the following subparagraphs shall be subject to a fine for negligence not exceeding ten million won:
1. A person who fails to obtain authorization from the Minister of Justice in violation of the main sentence of Article 10 (2) or Article 17 or who fails to file a report in violation of the proviso to Article 10 (2) or the proviso to Article 14 (2);
2. A person who fails to conduct separate accounting in violation of Article 15 (1);
3. A person who fails to submit a business plan and budget or report the results of business and the settlement of accounts, or to attach to a statement of settlement an audit certificate made by a certified public accountant or accounting corporation, in violation of Article 16 (2) or (3);
4. A person who appoints or dismisses the head or employee of a private correctional institution, etc without approval of the Minister of Justice under the proviso to Article 29 (1);
5. A person who fails to wear his/her uniform while on duty in violation of Article 31 (1);
6. A person who is derelict in his/her duty to file a report, or makes a false report, in violation of Article 34 (1) or (2) or 36 (2).
(2) The fines for negligence under paragraph (1) shall be imposed and collected by the Minister of Justice in compliance with the standards prescribed by Presidential Decree.
[This Article Wholly Amended by Act No. 9522, Mar. 25, 2009]
ADDENDUM
This Act shall enter into force on July 1, 2001.
ADDENDA<Act No. 8728, Dec. 21, 2007>
Article 1 (Enforcement Date)
This Act shall enter into force one year after the date of its promulgation.
Articles 2 through 6 Omitted.
ADDENDUM<Act No. 9522, Mar. 25, 2009>
This Act shall enter into force on the date of its promulgation.