Law Viewer

Back Home

LOCAL EDUCATION SUBSIDY ACT

Act No. 2330, Dec. 28, 1971

Amended by Act No. 3540, Mar. 20, 1982

Act No. 3561, Apr. 3, 1982

Act No. 4047, Dec. 31, 1988

Act No. 4268, Dec. 27, 1990

Act No. 4303, Dec. 31, 1990

Act No. 4541, Mar. 6, 1993

Act No. 4687, Dec. 31, 1993

Act No. 5064, Dec. 29, 1995

Act No. 5454, Dec. 13, 1997

Act No. 5529, Feb. 28, 1998

Act No. 5651, Jan. 21, 1999

Act No. 5982, May 24, 1999

Act No. 6213, Jan. 28, 2000

Act No. 6331, Dec. 30, 2000

Act No. 6400, Jan. 29, 2001

Act No. 6522, Dec. 19, 2001

Act No. 7251, Dec. 30, 2004

Act No. 7328, Jan. 5, 2005

Act No. 8148, Dec. 30, 2006

Act No. 8540, Jul. 20, 2007

Act No. 8852, Feb. 29, 2008

Act No. 9923, Jan. 1, 2010

Act No. 10219, Mar. 31, 2010

Act No. 10221, Mar. 31, 2010

Act No. 11690, Mar. 23, 2013

Act No. 12153, Jan. 1, 2014

Act No. 12854, Dec. 23, 2014

Act No. 14157, May 29, 2016

Act No. 14373, Dec. 13, 2016

Act No. 14399, Dec. 20, 2016

Act No. 14761, Apr. 18, 2017

Act No. 15333, Dec. 30, 2017

 Article 1 (Purpose)
The purpose of this Act is to make a contribution to the balanced development of education by allowing the State to provide, in whole or in part, the financial resources necessary for the establishment and operation of educational institutions and educational administrative institutions (including affiliated organizations; hereinafter the same shall apply) to the local government.
[This Article Wholly Amended by Act No. 14761, Apr. 18, 2017]
 Article 2 (Definitions)
The definitions of the terms used in this Act shall be as follows:
1. "Standard amount of financial demand" means the amount of financial demand for local education and its administrative operation, which is estimated under Article 6;
2. "Standard amount of financial revenue" means the total amount of financial income with respect to education, science, technology, physical education, and other academic sciences (hereinafter referred to as the "education and academic sciences") which is estimated pursuant to Article 7;
3. "Unit of measurement" means the unit designed to measure the amount of the local educational administration for each of its department after assigning local educational administration for each of the department;
4. "Expense per unit" means the amount per each unit of measurement, which is established in order to estimate the standard amount of financial demand.
[This Article Wholly Amended by Act No. 14761, Apr. 18, 2017]
 Article 3 (Kinds and Financial Resources of Subsidies)
(1) The subsidies which the State grants to local governments for the purposes prescribed in Article 1 (hereinafter referred to as the "subsidies") shall be divided into general subsidies and special subsidies.
(2) The financial resources of subsidies shall consist of the sum of the following amounts:
1. 2,027/10,000 of the sum of internal taxes in the year concerned (excluding object tax and comprehensive real estate tax, 20/100 of the total amount of individual consumption tax imposed on tobacco and the amount of tax items to be used as financial resources of the special account in accordance with other Acts; hereinafter the same shall apply);
2. The total revenues from the education tax for a relevant year in accordance with the Education Tax Act, excluding the amount prescribed in Article 5 (1) of the Act on the Early Childhood Education Support Special Account.
(3) The financial resources of general subsidies shall consist of the total amount determined by paragraph (2) 2 plus the amount equivalent to 97/100 of the amount determined by subparagraph 1 of the same paragraph, and the financial resources of special subsidies shall be the amount equivalent to 3/100 of the amount determined by paragraph (2) 1. <Amended by Act No. 15333, Dec. 30, 2017>
[This Article Wholly Amended by Act No. 14761, Apr. 18, 2017]
 Article 4 (Revision in Subsidy Rates)
(1) When there are any remarkable changes in personnel expenses in the local educational finance due to any unavoidable cause, such as an increase or decrease in the number of teachers, etc. in compulsory educational institutions, the State shall revise the subsidy rates prescribed in Article 3 (2) 1, taking account of increases, etc. in subsidies, following an increase of internal taxes.
(2) Where the subsidy rates are to be revised in accordance with paragraph (1), matters concerning delivery methods, etc. shall be prescribed by Presidential Decree.
[This Article Wholly Amended by Act No. 14761, Apr. 18, 2017]
 Article 5 (Granting of General Subsidies)
(1) The Minister of Education shall grant the general subsidies in its total amount to a local government whose standard amount of financial revenue is short of the standard amount of financial demand, on the basis of the amount of shortfall.
(2) Where the Minister of Education intends to grant the general subsidies in accordance with paragraph (1), he/she shall inform the heads of educational administrative institutions in the relevant Special Metropolitan City, Metropolitan Cities, Dos and Special Self-Governing Cities/Dos and Special Self-Governing Provinces (hereinafter referred to as the "Cities/Dos") of such decision. In such cases, the Minister of Education shall prepare the basis of computation of general subsidies, particulars of each local government and related data and forward them to the heads of educational administrative institutions in each City/Do.
[This Article Wholly Amended by Act No. 14761, Apr. 18, 2017]
 Article 5-2 (Granting of Special Subsidies)
(1) The Minister of Education shall grant the special subsidies in accordance with the classifications listed in any of the following subparagraphs: <Amended by Act No. 15333, Dec. 30, 2017>
1. When there is a special financial demand by formulating a financial support plan separately as the national policy project relating to education to be performed throughout the nation as referred to in Article 58 of the Local Finance Act or where there is a need to financially support local governments with an excellent track record of operating local educational administration and local educational finance: Amount equivalent to 60/100 of the financial resources of special subsidies;
2. When there is a pending demand for special local education unidentifiable by the method of computing the standard amount of financial demand: Amount equivalent to 30/100 of the financial resources of special subsidies;
3. When there is a special financial demand or a decrease in financial revenue due to a disaster occurred after the deadline for computing the general subsidies or when there is a special financial demand for disaster prevention: Amount equivalent to 10/100 of the financial resources of special subsidies.
(2) Where the heads of educational administrative institutions of Cities/Dos file applications for special subsidies due to causes falling under paragraph (1) 2 and 3, the Minister of Education shall examine the applications and grant the subsidies. Where the causes falling under paragraph (1) 1 occur or where the Minister of Education deems it necessary, the special subsidies may be granted by setting a certain standard, even if no application is filed.
(3) Conditions may be attached to using the special subsidies as referred to in paragraph (1) or the uses thereof may be restricted.
(4) When the heads of educational administrative institutions of Cities/Dos intend to use the special subsidies by changing the conditions or purposes of use as referred to in paragraph (3), they shall obtain prior approval from the Minister of Education.
(5) Where the heads of educational administrative institutions of Cities/Dos use the special subsidies in violation of the conditions or purposes of use as referred to in paragraph (3) or fail to use them for not less than two years, the Minister of Education may order the heads to return the subsidies or reduce the amount of the special subsidies to be granted subsequently.
(6) Matters necessary for procedures, such as the criteria for choosing exemplary local governments as referred to in paragraph (1) 1, methods of choice and the timing of granting the special subsidies, shall be prescribed by Presidential Decree. <Amended by Act No. 15333, Dec. 30, 2017>
[This Article Wholly Amended by Act No. 14761, Apr. 18, 2017]
 Article 6 (Standard Amount of Financial Demand)
(1) The standard amount of financial demand shall be the amount obtained by multiplying the expense per unit by the numbers in units of measurement by measurement item.
(2) The measurement items and the units of measurement shall be prescribed by Presidential Decree, and the expense per unit shall be determined by Ordinance of the Ministry of Education within the criteria prescribed by Presidential Decree, taking account of the fluctuations in the prices of commodities.
[This Article Wholly Amended by Act No. 14761, Apr. 18, 2017]
 Article 7 (Standard Amount of Financial Revenue)
(1) The standard amount of financial revenue shall consist of the expected amount of income from the special account for education expenses of local governments relating to the education and academic sciences, including the amount of money transferred from the general account under Article 11.
(2) Out of the expected amount of income as referred to in paragraph (1), financial resources that derive from local taxes shall consist of the amount computed based on the standard tax rates as referred to in Article 2 (1) 6 of the Framework Act on Local Taxes, and the difference between the computed amount and the settlement amount shall be settled when the standard finance revenue of the year after the subsequent year is computed, and the methods of calculating other expected amounts shall be prescribed by Presidential Decree.
[This Article Wholly Amended by Act No. 14761, Apr. 18, 2017]
 Article 8 (Adjustment, etc. of Subsidies)
(1) When the subsidies have been unjustly granted due to mistakes or falsified computation data, the Minister of Education shall reduce the amount exceeding the amount of subsidies lawfully receivable by the competent Cities/Dos from the subsidies to be granted subsequently.
(2) When the local governments have disbursed substantial expenses or neglected to collect the revenues to be secured in violation of the provisions of statutes, the Minister of Education may reduce the subsidies to be granted to the local government concerned or order it to return part of subsidies already paid. In such cases, the amount of subsidies to be reduced or whose return is ordered shall not exceed the amount that has been disbursed or not been collected due to neglect in violation of the provisions of statutes.
[This Article Wholly Amended by Act No. 14761, Apr. 18, 2017]
 Article 9 (Appropriation in Budget)
(1) The State shall appropriate the subsidies under the provisions of this Act in the national budget every fiscal year.
(2) Where there is any increase or decrease in internal or education taxes owing to the revised supplementary budget, the subsidies shall also be increased or decreased accordingly: Provided, That where internal or education taxes are reduced, the subsidies may be adjusted until the fiscal year after the subsequent fiscal year in consideration of matters such as conditions of the local educational finance.
(3) The difference in subsidies arising from the difference between the internal, education tax budgets and the settled accounts shall be adjusted by being appropriated in the national budget of the year after the next year at the latest.
[This Article Wholly Amended by Act No. 14761, Apr. 18, 2017]
 Article 10 (Measures Taken according to Change, etc. of Administrative Districts)
Where Cities/Dos are abolished, established, divided, merged, or where the jurisdictions of the Cities/Dos are changed, the Minister of Education shall adjust the subsidies for the Cities/Dos concerned, as prescribed by Presidential Decree, and send the amount of the adjusted subsidies to them.
[This Article Wholly Amended by Act No. 14761, Apr. 18, 2017]
 Article 11 (Expenses Borne by Local Government)
(1) The expenses incurred for education and academic sciences in the Cities/Dos shall be borne by the special account for educational expenses of the local government concerned, on condition that those needed for compulsory education shall be covered by subsidies out of the financial resources of the special account for educational expenses and the amount of money transferred from the general account as referred to in paragraph (2), and the expenses relating to the education other than the compulsory education shall be appropriated by the subsidies out of the financial resources of the special account for educational expenses, the amount of money transferred from the general account as referred to in paragraph (2), tuition fees and entrance fees, etc.
(2) The Cities/Dos shall appropriate the amounts under each of the following subparagraphs respectively in the budget of general account of every fiscal year for the establishment and operation of public schools and the improvement of educational environments, and transfer them to the special account for educational expenses. Where there is any increase or decrease due to the revised supplementary budget, the same shall also apply:
1. The amount equivalent to the local educational taxes prescribed in Article 151 of the Local Tax Act;
2. 45/100 of the tobacco consumption taxes (excluding Dos);
3. The Seoul Special Metropolitan City shall appropriate 10/100 of the total amount of the special metropolitan city taxes (excluding the amount equivalent to the pro rata property portion and the pro rata employee portion of residential tax, among ordinary taxes prescribed in Article 8 (1) 1 of the Framework Act on Local Taxes, earmarked tax prescribed in Article 8 (1) 2 of the Framework Act on Local Taxes, and the property tax attributable to the Special Metropolitan City under Article 9 of the same Act). Metropolitan Cities and Gyeonggi-do shall appropriate 5/100 of the total amount of the metropolitan city taxes or Do taxes (excluding the amount equivalent to the earmarked tax prescribed in Article 8 (2) 2 of the Framework Act on Local Taxes). Other Dos and Special Self-Governing Province shall appropriate 36/1,000 of the total amount of the Do taxes or Special Self-Governing Province taxes (excluding the amount equivalent to the special purpose taxes as prescribed in Article 8 (2) 2 of the Framework Act on Local Taxes.
(3) The Special Metropolitan City Mayor, a Metropolitan City Mayor, Special Self-Governing City Mayor, Do Governor or the Special Self-Governing Province Governor (hereinafter referred to as "Mayor/Do Governor") shall report, no later than the last day of the next month, details of monthly tax collections under subparagraphs of paragraph (2) to the head of an educational administrative agency of concerned Cities/Dos.
(4) A City/Do bears its duty to transfer, no later than the last day of the next month, at least 90/100 of the amount to be transferred to the special account of educational expenses pursuant to paragraph (2) out of the monthly collected taxes under each subparagraph of paragraph (2), and shall quarterly conduct settlement of any amount of difference between the amount obligated to be transferred and the amount actually transferred in order to transfer the amount of difference no later than the last day of the month immediately following a quarter.
(5) The difference in transferred money due to the difference between the budget amount and the settled account shall be settled by appropriating it at the latest in the budget of the year after next.
(6) Where the head of an educational administrative institution of the City/Do draws up the expenditure budget which is to be appropriated as the transferred money from the general account under the provisions of paragraphs (2) and (5), he/she shall consult in advance with the Mayor/Do Governor concerned.
(7) Where the board of education of the Cities/Dos intends to reduce the expenditure budget drawn up under the provisions of paragraph (6), it shall consult in advance with the head of the educational administrative institution and the Mayor/Do Governor.
(8) Cities/Dos and Si/Gun/autonomous Gus may subsidize the educational expenses incurred for various kinds of schools equivalent to or lower than high schools under its jurisdiction under the conditions as prescribed by Presidential Decree.
(9) The Cities/Dos may transfer the separate expenses other than each subparagraph of paragraph (2) to the special account of educational expenses, for the advancement of education and academic science within the competent areas.
(10) A Mayor/Do Governor shall, no later than February 28th of each year, submit results of annual/monthly transfer to the special account of educational expenses under paragraphs (2) through (5) to the Minister of Education, and then the Minister of Education shall report it to the competent Standing Committee of the National Assembly no later than March 31 of each year.
[This Article Wholly Amended by Act No. 14761, Apr. 18, 2017]
 Article 12 (Report on General Subsidies)
The Minister of Education shall file a report on the criteria for, particulars of, amount of general subsidies allotted, and other important matters necessary for the operation of general subsidies to the competent Standing Committee of the National Assembly by not later than March 31 every year.
[This Article Wholly Amended by Act No. 14761, Apr. 18, 2017]
 Article 13 (Formal Objection to Amount of Subsidies, etc.)
(1) Where the heads of educational administrative institutions in Cities/Dos have received a notice of decisions on the general subsides as referred to in Article 5 (2), if they have an objection to the basis of computation of the amount of subsidies, etc. of the local government concerned, they may raise an objection to the Minister of Education within 30 days from the date of receipt of the notice.
(2) The Minister of Education shall examine and notify the heads of educational administrative institutions of the relevant local government of the results thereof within 30 days from the date of receipt of the said objection as prescribed in paragraph (1).
[This Article Wholly Amended by Act No. 14761, Apr. 18, 2017]
ADDENDA
(1) (Enforcement Date) This Act shall enter into force on January 1, 1972.
(2) (Repealed Acts) The Compulsory Education Financial Subsidy Act and the Grants for Local Education Act shall be hereby repealed.
ADDENDA <Act No. 3540, Mar. 20, 1982>
Article 1 (Enforcement Date)
This Act shall enter into force on the date of its promulgation. (Proviso Omitted.)
Articles 2 and 3 Omitted.
ADDENDA <Act No. 3561, Apr. 3, 1982>
(1) (Enforcement Date) This Act shall enter into force on the same date as the enforcement date of the Act on the Abolition of the Emergency Decree concerning Economic Stability and Development.
(2) (Transitional Measures) The subsidies granted in the year 1982 shall be determined by the national budget, notwithstanding the provisions of Articles 3, 4, and 9.
ADDENDUM <Act No. 4047, Dec. 31, 1988>
This Act shall enter into force on January 1, 1989.
ADDENDA <Act No. 4268, Dec. 27, 1990>
Article 1 (Enforcement Date)
This Act shall enter into force on the date of its promulgation. (Proviso Omitted.)
Articles 2 through 10 Omitted.
ADDENDA <Act No. 4303, Dec. 31, 1990>
Article 1 (Enforcement Date)
This Act shall enter into force on January 1, 1991.
Article 2 Omitted.
Article 3 (Transitional Measures)
(1) The adjustment of difference in subsidies arising from the difference between the budget and the settled account of the education taxes of the year 1990 shall be governed by the previous provisions.
(2) The total amount of internal taxes under the provisions of Article 3 (2) 2 shall not include the defense taxes which are collected under the provisions of Article 2 of the Addenda of the Act on the Abolition of National Defense Taxes.
ADDENDA <Act No. 4541, Mar. 6, 1993>
Article 1 (Enforcement Date)
This Act shall enter into force on the date of its promulgation. (Proviso Omitted.)
Articles 2 through 5 Omitted.
ADDENDUM <Act No. 4687, Dec. 31, 1993>
This Act shall enter into force on January 1, 1994.
ADDENDA <Act No. 5064, Dec. 29, 1995>
(1) (Enforcement Date) This Act shall enter into force on January 1, 1996.
(2) Deleted. <by Act No. 6213, Jan. 28, 2000>
ADDENDUM <Act No. 5454, Dec. 13, 1997>
This Act shall enter into force on January 1, 1998. (Proviso Omitted.)
ADDENDA <Act No. 5529, Feb. 28, 1998>
Article 1 (Enforcement Date)
This Act shall enter into force on the date of its promulgation. (Proviso Omitted.)
Articles 2 through 7 Omitted.
ADDENDUM <Act No. 5651, Jan. 21, 1999>
This Act shall enter into force on the date of its promulgation.
ADDENDA <Act No. 5982, May 24, 1999>
Article 1 (Enforcement Date)
This Act shall enter into force on the date of its promulgation. (Proviso Omitted.)
Articles 2 through 6 Omitted.
ADDENDUM <Act No. 6213, Jan. 28, 2000>
This Act shall enter into force on January 1, 2001.
ADDENDUM <Act No. 6331, Dec. 30, 2000>
This Act shall enter into force on January 1, 2001.
ADDENDA <Act No. 6400, Jan. 29, 2001>
Article 1 (Enforcement Date)
This Act shall enter into force on the date of its promulgation. (Proviso Omitted.)
Articles 2 through 4 Omitted.
ADDENDUM <Act No. 6522, Dec. 19, 2001>
This Act shall enter into force on January 1, 2002.
ADDENDA <Act No. 7251, Dec. 30, 2004>
(1) (Enforcement Date) This Act shall enter into force on January 1, 2005.
(2) Deleted. <by Act No. 8148, Dec. 30, 2006>
ADDENDA <Act No. 7328, Jan. 5, 2005>
Article 1 (Enforcement Date)
This Act shall enter into force on the date of its promulgation.
Articles 2 through 4 Omitted.
ADDENDUM <Act No. 8148, Dec. 30, 2006>
This Act shall enter into force on January 1, 2007: Provided, That the amended provisions of Article 3 (2) 2 shall enter into force at the start of the year 2008.
ADDENDA <Act No. 8540, Jul. 20, 2007>
Article 1 (Enforcement Date)
This Act shall enter into force on the date of its promulgation. (Proviso Omitted.)
Articles 2 through 6 Omitted.
ADDENDA <Act No. 8852, Feb. 29, 2008>
Article 1 (Enforcement Date)
This Act shall enter into force on the date of its promulgation. (Proviso Omitted.)
Articles 2 through 7 Omitted.
ADDENDUM <Act No. 9923, Jan. 1, 2010>
This Act shall enter into force on January 1, 2010: Provided, That the amended provisions of Article 9 (2) and (3) shall enter into force on the date of its promulgation.
ADDENDA <Act No. 10219, Mar. 31, 2010>
Article 1 (Enforcement Date)
This Act shall enter into force on January 1, 2011.
Articles 2 through 12 Omitted.
ADDENDA <Act No. 10221, Mar. 31, 2010>
Article 1 (Enforcement Date)
This Act shall enter into force on January 1, 2011.
Articles 2 through 8 Omitted.
ADDENDA <Act No. 11690, Mar. 23, 2013>
Article 1 (Enforcement Date)
(1) This Act shall enter into force on the date of its promulgation.
(2) Omitted.
Articles 2 through 7 Omitted.
ADDENDA <Act No. 12153, Jan. 1, 2014>
Article 1 (Enforcement Date)
This Act shall enter into force on January 1, 2014. (Proviso Omitted.)
Articles 2 through 19 Omitted.
ADDENDA <Act No. 12854, Dec. 23, 2014>
Article 1 (Enforcement Date)
This Act shall enter into force on January 1, 2015.
Article 2 Omitted.
ADDENDUM <Act No. 14157, May 29, 2016>
This Act shall enter into force on the date of its promulgation.
ADDENDUM <Act No. 14373, Dec. 13, 2016>
This Act shall enter into force on January 1, 2017.
ADDENDUM <Act No. 14399, Dec. 20, 2016>
This Act shall enter into force on January 1, 2017.
ADDENDUM <Act No. 14761, Apr. 18, 2017>
This Act shall enter into force on the date of its promulgation.
ADDENDUM <Act No. 15333, Dec. 30, 2017>
This Act shall enter into force on Jan. 1, 2018.