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PASSENGER TRANSPORT SERVICE ACT

Wholly Amended by Act No. 8980, Mar. 21, 2008

Amended by Act No. 9070, Mar. 28, 2008

Act No. 9432, Feb. 6, 2009

Act No. 9733, May 27, 2009

Act No. 10599, Apr. 14, 2011

Act No. 10673, May 19, 2011

Act No. 10789, jun. 7, 2011

Act No. 11295, Feb. 1, 2012

Act No. 11447, May 23, 2012

Act No. 11556, Dec. 18, 2012

Act No. 11690, Mar. 23, 2013

Act No. 12020, Aug. 6, 2013

Act No. 11998, Aug. 6, 2013

Act No. 12248, Jan. 14, 2014

Act No. 12377, Jan. 28, 2014

Act No. 12645, May 21, 2014

Act No. 12982, Jan. 6, 2015

Act No. 13376, jun. 22, 2015

Act No. 13383, jun. 22, 2015

Act No. 13485, Aug. 11, 2015

Act No. 13800, Jan. 19, 2016

Act No. 14113, Mar. 29, 2016

Act No. 14342, Dec. 2, 2016

Act No. 14716, Mar. 21, 2017

Act No. 14861, Aug. 9, 2017

Act No. 14949, Oct. 24, 2017

Act No. 14939, Oct. 24, 2017

Act No. 15320, Dec. 26, 2017

CHAPTER I GENERAL PROVISIONS
 Article 1 (Purpose)
The purpose of this Act is to promote public welfare by establishing order in passenger transport service and striving for the smooth transport of passengers and the overall development of passenger transport service.
 Article 2 (Definitions)
The terms used in this Act shall be defined as follows: <Amended by Act No. 9733, May 27, 2009; Act No. 11690, Mar. 23, 2013; Act No. 12377, Jan. 28, 2014>
1. The term "motor vehicle" means any passenger vehicle and any motor vehicle for passengers and freight defined in Article 3 of the Motor Vehicle Management Act;
2. The term "passenger transport service" means any passenger transport business, car rental business, bus terminal business, and passenger transport franchise business;
3. The term "passenger transport business" means any business that transports passengers for profit using motor vehicles to respond to demand from others;
4. The term "car rental business" means any business that rents motor vehicles for profit to respond to demand from others;
5. The term "bus terminal" means any facility and place, other than either of the following, installed pursuant to Article 36 which provides a location for motor vehicles for passengers and freight to stop or for passengers to board and alight such motor vehicles, the types of which are prescribed by Ordinance of the Ministry of Land, Infrastructure and Transport:
(a) Road surfaces;
(b) Places used for ordinary traffic;
6. The term "bus terminal business" means any business that uses a bus terminal for passenger transport business;
7. The term "passenger transport franchise business" means any business that transports passengers or provides a service appurtenant to by requesting to a passenger transport business franchisee affiliated to respond to demand from others;
8. The term "passenger transport business franchisor" means any person who has obtained a license for passenger transport franchise business pursuant to Article 49-2;
9. The term "passenger transport business franchisee" means any person who has signed a franchisee agreement as a franchisee of a passenger transport business franchisor and is allowed to use the transport business franchisor's service mark (including a trademark, trade name, etc.; hereinafter the same shall apply), from among persons who operates passenger transport business under Article 3 (limited to passenger transport business prescribed by Presidential Decree), and transports passengers and provides a service appurtenant thereto after receiving traffic assignment by the transport business franchisor.
CHAPTER II PASSENGER TRANSPORT BUSINESS
 Article 3 (Types of Passenger Transport Business)
(1) Types of passenger transport business shall be as follows: <Amended by Act No. 12377, Jan. 28, 2014; Act No. 13383, Jun. 22, 2015>
1. Route passenger transport business: Business that transports passengers on a course designated for regular service (hereinafter referred to as "route");
2. Area-passenger transport business: Business that transports passengers within a designated business area;
3. On-demand passenger transport business: Business that transports passengers by using, as the first or last stop, a rural community defined in subparagraph 5 of Article 3 of the Framework Act on Agriculture, Rural Community and Food Industry or a fishing village defined in subparagraph 6 of Article 3 of the Framework Act on Fisheries and Fishing Villages Development, and by operating lines, time and frequencies of transport flexibly upon request of passengers.
(2) Passenger transport business listed in paragraph (1) 1 and 2 may be classified in accordance with Presidential Decree.
 Article 3 (Types of Passenger Transport Business)
(1) Types of passenger transport business shall be as follows: <Amended by Act No. 12377, Jan. 28, 2014; Act No. 13383, Jun. 22, 2015; Act No. 15320, Dec. 26, 2017>
1. Route passenger transport business: Business that transports passengers on a course designated for regular service (hereinafter referred to as "route");
2. Area-passenger transport business: Business that transports passengers within a designated business area;
3. On-demand passenger transport business: Business that falls under any of the following cases and transports passengers by operating lines, time and frequencies of transport flexibly upon request of passengers:
(a) Cases of using, as the first or last stop, a rural community defined in subparagraph 5 of Article 3 of the Framework Act on Agriculture, Rural Community and Food Industry or a fishing village defined in subparagraph 6 of Article 3 of the Framework Act on Fisheries and Fishing Villages Development;
(b) Cases of operating in areas deemed to lack public transportation in the actual survey of public transportation conducted pursuant to Article 16 of the Act on the Support and Promotion of Utilization of Mass Transit System.
(2) Passenger transport business listed in paragraph (1) 1 and 2 may be further classified in accordance with Presidential Decree.
<<Enforcement Date: Dec. 27, 2018>> Article 3 (1) 3
 Article 3-2 (Deliberative Committee on Business Areas)
(1) In order to deliberate on the matters regarding the designation and change of business area of passenger transport business prescribed by Presidential Decree, a deliberative committee on business area (hereinafter referred to as “deliberative committee”) shall be established under the control of the Minister of Land, Infrastructure and Transport.
(2) Where the deliberative committee deliberates on the matters regarding the designation and change of business area of passenger transport business prescribed by Presidential Decree, it shall consider the following matters:
1. Matters regarding the improvement of traffic facilities of local residents;
2. Matters on the volume of transportation among regions (including the transportation demand at the time of going to work and leaving office);
3. Matters regarding the balanced development of transport business entities (referring to persons who have obtained a license or registration for passenger transport business prescribed in Article 4 (1); hereinafter the same shall apply) among business areas;
4. Matters regarding whether extreme competition among transport business entities occurs;
5. Matters regarding fares or rates for each business area;
6. Matters regarding the sales and income levels of transport business entities and transport employees (referring to persons who meet the qualifications for engaging in driving service provided under Article 24 and are engaged in driving service of passenger transport business; hereinafter the same shall apply);
7. Matter regarding the total quantity of each business area.
(3) Matters necessary for the methods and procedures, etc. for deliberation under paragraph (1) shall be prescribed by Ordinance of the Ministry of Land, Infrastructure and Transport.
[This Article Newly Inserted by Act No. 13800, Jan. 19, 2016]
 Article 3-3 (Organization of Deliberative Committee)
(1) The deliberative committee shall consist of not more than ten members including one chairperson.
(2) The chairperson shall be elected by a mutual vote of members.
(3) Members shall be named or appointed by the Minister of Land, Infrastructure and Transport among persons, etc. who have abundant knowledge and experience in passenger transport business.
(4) Except as provided for in this Act, matters necessary for the organization, operation, etc. of the deliberative committee shall be prescribed by Presidential Decree.
[This Article Newly Inserted by Act No. 13800, Jan. 19, 2016]
 Article 3-4 (Designation and Change of Business Areas)
(1) The Minister of Land, Infrastructure and Transport may designate or change a business area of passenger transport business prescribed by Presidential Decree after going through the deliberation of the deliberative committee.
(2) Where the Minister of Land, Infrastructure and Transport intends to designate or change the business area prescribed in paragraph (1), he/she shall consult with the head of the relevant local government and may listen to the opinions of residents or the relevant persons.
[This Article Newly Inserted by Act No. 13800, Jan. 19, 2016]
 Article 4 (Licenses, etc.)
(1) Any person who intends to engage in passenger transport business shall prepare a business plan and obtain a license from the Minister of Land, Infrastructure and Transport, as prescribed by Ordinance of the Ministry of Land, Infrastructure and Transport: Provided, That any person who intends to engage in passenger transport business prescribed by Presidential Decree shall prepare a business plan and obtain a license from the Special Metropolitan City Mayor, a Metropolitan City Mayor, a Special Self-Governing City Mayor, a Do Governor, or a Special Self-Governing Province Governor (hereinafter referred to as the "Mayor/Do Governor") or register with the Mayor/Do Governor, as prescribed by Ordinance of the Ministry of Land, Infrastructure and Transport. <Amended by Act No. 11447, May 23, 2012; Act No. 11690, Mar. 23, 2013>
(2) In granting a license or accepting registration referred to in paragraph (1), the routes or business areas shall be fixed by type of passenger transport business referred to in Article 3.
(3) Where the Minister of Land, Infrastructure and Transport or the relevant Mayor/Do Governor deems it necessary to grant a license prescribed in paragraph (1) or to accept registration of passenger transport business prescribed by Presidential Decree, he/she may grant the license with restrictions on the scope or period of the passenger transport business (hereinafter referred to as "restricted license") or attach necessary conditions for establishing the order in the passenger transport business thereto, as prescribed by Ordinance of the Ministry of Land, Infrastructure and Transport. <Amended by Act No. 11690, Mar. 23, 2013>
(4) Notwithstanding paragraph (2), where any of the following transportation facilities (hereinafter referred to as “major transportation facilities”) is adjacent to the business area prescribed in the same paragraph (hereinafter referred to as “competent business area”) (limited to the scope prescribed by Ordinance of the Ministry of Land, Infrastructure and Transport) and any transport business entity prescribed by Presidential Decree gets off passengers getting on the competent business area to such major transportation facilities, such transport business entity may transport passengers going to the competent business area using the entraining stand prescribed in paragraph (5): <Newly Inserted by Act No. 14113, Mar. 29, 2016; Act No. 14342, Dec. 2, 2016>
1. Station facilities of high-speed rails prescribed in subparagraph 2 of Article 2 of the Railroad Construction Act;
2. Airports prescribed in subparagraph 3 of Article 2 of the Airport Facilities Act, where scheduled international flights operate;
3. Trade ports prescribed in subparagraph 2 of Article 2 of the Harbor Act, where passenger facilities are established;
4. Other transportation facilities similar to those under subparagraphs 1 through 3, which are prescribed by Presidential Decree.
(5) Business operator of major transportation facilities shall establish an entraining stand which displays the business area of passenger transport business prescribed by Presidential Decree to enhance the convenience of linkup transportation of passengers using such major transportation facilities. In such cases, matters necessary for the establishment and operation, etc. of entraining stands shall be prescribed by Ordinance of the Ministry of Land, Infrastructure and Transport. <Newly Inserted by Act No. 14342, Dec. 2, 2016>
 Article 5 (Standards for License, etc.)
(1) Licensing standards for passenger transport business shall include the following requirements: <Amended by Act No. 11690, Mar. 23, 2013>
1. Business plans are required to match the transport capacity and transport demand of the relevant route or business area;
2. Passenger transport business entities are required to have the minimum number of motor vehicles for the license, garage area holdings, incidental facilities, etc. and to meet the requirements determined by Ordinance of the Ministry of Land, Infrastructure and Transport;
3. In cases of passenger transport business prescribed by Presidential Decree, passenger transport business entities are required to meet the requirements determined by Ordinance of the Ministry of Land, Infrastructure and Transport, such as their driving experience, the fact as to whether they have caused traffic accidents, and their dwelling place.
(2) The Minister of Land, Infrastructure and Transport may establish guidelines for calculating transport capacity provided for in paragraph (1) 1 (limited to cases of passenger transport business prescribed by Presidential Decree) and notify the relevant Mayor/Do Governor of such guidelines. <Amended by Act No. 11690, Mar. 23, 2013>
(3) Upon being notified of the guidelines for calculating the transport capacity pursuant to paragraph (2), the Mayor/Do Governor shall establish a plan for transport supply every five years, announce it publicly, and submit a report thereon to the Minister of Land, Infrastructure and Transport. <Newly Inserted by Act No. 9733, May 27, 2009; Act No. 11690, Mar. 23, 2013>
(4) Where it is necessary to modify a plan for transport supply under paragraph (3) on the grounds specified by Ordinance of the Ministry of Land, Infrastructure and Transport, such as calculation or recalculation of the total quantity of taxis for each business area under Article 9 of the Act on the Development of Taxi Transportation Business and radical changes in transport demand, the Mayor/Do Governor may modify such plan with approval from the Minister of Land, Infrastructure and Transport: Provided, That the plan for transport supply may be modified without approval from the Minister of Land, Infrastructure and Transport, where the plan is modified due to recalculation of the total quantity of taxis for each business area. <Newly Inserted by Act No. 9733, May 27, 2009; Act No. 11690, Mar. 23, 2013; Act No. 12377, Jan. 28, 2014>
(5) The minimum number of motor vehicles to be registered, garage area holdings, incidental facilities, which constitute the registration requirements for passenger transport business, the establishment and public announcement of a plan for transport supply, and other necessary matters shall be determined by Ordinance of the Ministry of Land, Infrastructure and Transport. <Amended by Act No. 9733, May 27, 2009; Act No. 11690, Mar. 23, 2013>
 Article 5-2 (Establishment, etc. of Supply and Demand Plans for Passenger Transport Business)
(1) Notwithstanding the proviso to Article 4 (1), if deemed necessary to adjust the supply and demand of passenger transport business specified by Presidential Decree, the Minister of Land, Infrastructure and Transport may establish a supply and demand plan for passenger transport business, subject to consultation by the committee on supply and demand adjustment for passenger transport business under paragraph (2).
(2) To deliberate on the supply and demand plan referred to in paragraph (1), the Minister of Land, Infrastructure and Transport shall establish the supply and demand adjustment committee for passenger transport business (hereafter referred to as "supply and demand adjustment committee" in this Article). In such cases, the composition and operation of the supply and demand adjustment committee and other necessary matters shall be determined by Presidential Decree.
(3) The Minister of Land, Infrastructure and Transport may place a restriction on registration of passenger transport business prescribed by Presidential Decree in accordance with the supply and demand plans established pursuant to paragraph (1) for a given period not exceeding three years: Provided, That if necessary, he/she may extend such restriction on a two-year basis after going through the same procedure.
(4) Where the Minister of Land, Infrastructure and Transport intends to restrict the registration of passenger transport business prescribed by Presidential Decree as provided in paragraph (3), he/she shall make notification of such restriction in the official gazette and notify the Mayor/Do Governor thereof. The foregoing shall also apply to the cancellation of the restrictions on registration.
(5) Matters necessary for the supply and demand plans, adjustment procedures, etc. for passenger transport business shall be prescribed by Presidential Decree.
[This Article Newly Inserted by Act No. 12377, Jan. 28, 2014]
 Article 6 (Grounds for Disqualification)
None of the following persons shall be eligible for a license or registration for passenger transport business. The same shall apply to any corporation, any of whose executive officer falls under any of the following conditions: <Amended by Act No. 12377, Jan. 28, 2014; Act No. 15320, Dec. 26, 2017>
1. Any incompetent under adult guardianship;
2. Any person declared bankrupt and not yet reinstated;
3. Any person for whom two years have not elapsed since his/her imprisonment with labor or greater punishment, declared by a court for violation of this Act, was complete (including where the execution of such sentence is deemed complete) or exempted;
4. Any person who is under suspension of the execution of his/her imprisonment with labor or greater punishment, declared by a court for violation of this Act;
5. Any person for whom two years have not elapsed from the date of revocation of his/her license or registration for passenger transport business: Provided, That cases falling under subparagraph 1 or 2, in which the license or registration for passenger transport business is revoked pursuant to Article 85 (1) 8, shall be excluded herefrom.
 Article 7 (Commencement of Transport Service)
Any person who has obtained a license for passenger transport business pursuant to Article 4 (1) shall commence transport service with his/her transport facilities confirmed according to the business plan by the deadline or within the period designated by the Minister of Land, Infrastructure and Transport or the relevant Mayor/Do Governor: Provided, That where a person who has obtained a license for passenger transport business is not able to commence transport service by the deadline or within the period designated by the Minister of Land, Infrastructure and Transport or the relevant Mayor/Do Governor due to any natural disaster or other unavoidable causes, the Minister of Land, Infrastructure and Transport or the relevant Mayor/Do Governor may extend such deadline or period upon request from the person who has obtained the license. <Amended by Act No. 11690, Mar. 23, 2013>
 Article 8 (Reporting, etc. on Charges and Fares)
(1) Any person who has obtained a license for passenger transport business pursuant to Article 4 (1) shall fix charges or fares within the scope of the standards and rates determined by the Minister of Land, Infrastructure and Transport or the relevant Mayor/Do Governor and submit a report thereon to the Minister of Land, Infrastructure and Transport or the relevant Mayor/Do Governor. <Amended by Act No. 11690, Mar. 23, 2013>
(2) Where a person prescribed by Presidential Decree, who has obtained a license or registration for passenger transport business pursuant to Article 4 (1), intends to fix charges or fares, he/she shall report to the relevant Mayor/Do Governor, notwithstanding paragraph (1). The same shall apply where he/she intends to change charges or fares.
(3) The Minister of Land, Infrastructure and Transport or the relevant Mayor/Do Governor shall notify a person who reported of whether or not he/she accepts such report within a period prescribed by Ordinance of the Ministry of Land, Infrastructure and Transport from the date when he/she received such report or report of change under paragraph (1) or (2). <Newly Inserted by Act No. 14716, Mar. 21, 2017>
(4) Where the Minister of Land, Infrastructure and Transport or the relevant Mayor/Do Governor fails to notify a person who reported of whether or not he/she accepts a report or whether or not he/she extends the handling period prescribed in statutes relevant to handling of civil affairs within a period prescribed in paragraph (3), it shall be deemed that he/she accepts the report on the next day of the date when such period expires. <Newly Inserted by Act No. 14716, Mar. 21, 2017>
(5) Matters necessary for determining standards for charges, fares and rates referred to in paragraph (1) shall be prescribed by Ordinance of the Ministry of Land, Infrastructure and Transport. <Amended by Act No. 11690, Mar. 23, 2013>
(6) Any route passenger transport business entity shall transport, free of charge, one child under six years of age who is accompanied by a passenger: Provided, That charges or fares may be imposed on a passenger who accompanies a child where he/she wishes to have a separate seat assigned to such child.
 Article 9 (Terms and Conditions of Transport)
(1) A transport business entity shall determine the terms and conditions of transport and report them to the Minister of Land, Infrastructure and Transport or the relevant Mayor/Do Governor. The same shall apply where he/she intends to amend such terms and conditions of transport. <Amended by Act No. 11690, Mar. 23, 2013; Act No. 13800, Jan. 19, 2016>
(2) The Minister of Land, Infrastructure and Transport or the relevant Mayor/Do Governor shall notify a person who reported of whether or not he/she accepts the report within a period prescribed by Ordinance of the Ministry of Land, Infrastructure and Transport from the date when he/she received such report or report of change under paragraph (1). <Newly Inserted by Act No. 14716, Mar. 21, 2017>
(3) Where the Minister of Land, Infrastructure and Transport or the relevant Mayor/Do Governor fails to notify a person who reported of whether or not he/she accepts the report or whether or not he/she extends the handling period prescribed in statutes relevant to handling of civil affairs within a period prescribed in paragraph (2), it shall be deemed that he/she accepts the report on the next day of the date when such period expires. <Newly Inserted by Act No. 14716, Mar. 21, 2017>
(4) Entries in terms and conditions of transport referred to in paragraph (1) and other necessary matters shall be determined by Ordinance of the Ministry of Land, Infrastructure and Transport. <Amended by Act No. 11690, Mar. 23, 2013>
 Article 10 (Modification of Business Plans)
(1) Where a person who has obtained a license for passenger transport business pursuant to Article 4 (1) intends to modify the relevant business plan, he/she shall receive authorization from the Minister of Land, Infrastructure and Transport or the relevant Mayor/Do Governor: Provided, That a person that intends to change any minor matters specified by Ordinance of the Ministry of Land, Infrastructure and Transport shall submit a report on the changed matters to the Minister of Land, Infrastructure and Transport or the relevant Mayor/Do Governor. <Amended by Act No. 11690, Mar. 23, 2013>
(2) Where a person who has completed registration for passenger transport business pursuant to the proviso to Article 4 (1) intends to modify the business plan, he/she shall file an application for registration of the modified matters with the relevant Mayor/Do Governor: Provided, That a person who intends to change any minor matters specified by Ordinance of the Ministry of Land, Infrastructure and Transport shall submit a report on the changed matters to the relevant Mayor/Do Governor. <Amended by Act No. 11690, Mar. 23, 2013>
(3) The Minister of Land, Infrastructure and Transport or the relevant Mayor/Do Governor shall notify a person who reported of whether or not he/she accepts the report within a period prescribed by Ordinance of the Ministry of Land, Infrastructure and Transport from the date when he/she received the report of change under the proviso to paragraph (1) or the proviso to paragraph (2). <Newly Inserted by Act No. 14716, Mar. 21, 2017>
(4) Where the Minister of Land, Infrastructure and Transport or the relevant Mayor/Do Governor fails to notify a person who reported of whether or not he/she accepts the report or whether or not he/she extends the handling period under the statutes relevant to handling of civil affairs within a period prescribed in paragraph (3), it shall be deemed that he/she accepts the report on the next day of the date when such period expires. <Newly Inserted by Act No. 14716, Mar. 21, 2017>
(5) The Minister of Land, Infrastructure and Transport or the relevant Mayor/Do Governor may restrict the modification of a business plan referred to in paragraphs (1) and (2) in any of the following cases: <Amended by Act No. 11690, Mar. 23, 2013; Act No. 12377, Jan. 28, 2014>
1. Where a transport business entity fails to commence transport service by the deadline or within the period referred to in Article 7;
2. Where a transport business entity fails to comply with a corrective order issued under Article 23;
3. Where one year has not elapsed since a transport business entity received an order for change of a business plan to close routes or reduce the number of motor vehicles pursuant to Article 85 (1);
4. Where the severity and frequency of traffic accidents are higher than that described in Presidential Decree;
5. Where the Minister restricts the registration of passenger transport business pursuant to Article 5-2 (3).
(6) Procedures and standards for modification of a business plan prescribed in paragraphs (1) through (5) and other necessary matters shall be determined by Ordinance of the Ministry of Land, Infrastructure and Transport. <Amended by Act No. 11690, Mar. 23, 2013; Act No. 14716, Mar. 21, 2017>
 Article 11 (Joint Transport Service Agreement)
Where a transport business entity intends to conclude a contract on joint management or an agreement on transport service with any other transport business entity (hereinafter referred to as "joint transport service agreement") in order for the smooth transport of and better service for passengers, he/she shall conclude such contract or agreement as prescribed by Presidential Decree. The same shall apply to the amendment to a joint transport service agreement.
 Article 12 (Prohibition, etc. of Use of Name)
(1) No transport business entity shall allow another transport business entity or a person who is not a transport business entity to operate passenger transport business by using any or all of his/her commercial motor vehicles, either commercially or non-commercially. In such cases, the same shall apply where a transport business entity issues orders for the relevant business to another transport business entity or a person who is not a transport business entity.
(2) No transport business entity shall operate passenger transport business under the name of his/her own or another by using any or all of another transport business entity's commercial motor vehicles. In such cases, the same shall apply where a transport business entity receives orders for the relevant business from another transport business entity.
(3) No person, other than a transport business entity, shall operate passenger transport business under the name of his/her own name or another name by using any or all of transport business entity's commercial motor vehicles. In such cases, the same shall apply where a person, other than a transport business entity, receives orders for the relevant business from a transport business entity.
 Article 13 (Entrustment of Business Management)
(1) A transport business entity who intends to entrust the management of passenger transport business shall submit a report thereon to the Minister of Land, Infrastructure and Transport or the relevant Mayor/Do Governor. <Amended by Act No. 11690, Mar. 23, 2013>
(2) The Minister of Land, Infrastructure and Transport or the relevant Mayor/Do Governor shall notify a person who reported of whether or not he/she accepts the report within a period prescribed by Ordinance of the Ministry of Land, Infrastructure and Transport from the date when he/she received such report made under paragraph (1). <Newly Inserted by Act No. 14716, Mar. 21, 2017>
(3) Where the Minister of Land, Infrastructure and Transport or the relevant Mayor/Do Governor fails to notify a person who reported of whether or not he/she accepts the report or whether or not he/she extends the handling period prescribed in statutes relevant to handling of civil affairs within a period prescribed in paragraph (2), it shall be deemed that he/she accepts the report on the next day of the date when such period expires. <Newly Inserted by Act No. 14716, Mar. 21, 2017>
(4) No business management referred to in paragraph (1) shall be entrusted to a person, other than a transport business entity.
 Article 14 (Transfer, Acquisition, etc. of Business)
(1) A person who intends to transfer or acquire passenger transport business shall submit a report thereon to the Minister of Land, Infrastructure and Transport or the relevant Mayor/Do Governor, as prescribed by Ordinance of the Ministry of Land, Infrastructure and Transport. In such cases, if deemed necessary for establishing the order of passenger transport business prescribed by Presidential Decree, the Minister of Land, Infrastructure and Transport or the Mayor/Do Governor may restrict the scope of areas for transfer and acquisition, as prescribed by Ordinance of the Ministry of Land, Infrastructure and Transport. <Amended by Act No. 11690, Mar. 23, 2013; Act No. 12377, Jan. 28, 2014>
(2) Notwithstanding paragraph (1), any person who intends to transfer or acquire passenger transport business specified by Presidential Decree shall obtain authorization from the Minister of Land, Infrastructure and Transport or the relevant Mayor/Do Governor, as prescribed by Ordinance of the Ministry of Land, Infrastructure and Transport. In such cases, the Minister of Land, Infrastructure and Transport or the relevant Mayor/Do Governor may restrict the transfer or acquisition of passenger transport business during the period determined by Ordinance of the Ministry of Land, Infrastructure and Transport. <Amended by Act No. 11690, Mar. 23, 2013>
(3) No transport business entity who is obliged to obtain authorization granted under paragraph (2) and who is prescribed by Presidential Decree, shall transfer his/her business: Provided, That the same shall not apply where the relevant provisions are prescribed otherwise by ordinance of the competent local government, taking account of demand, supply, etc. of business licenses in each business area. <Newly Inserted by Act No. 9733, May 27, 2009; Act No. 13376, Jun. 22, 2015>
(4) Where corporations that are transport business entities intend to effect a merger (excluding where a corporation which is a transport business entity merges with a corporation which is not a transport business entity), they shall submit a report to the Minister of Land, Infrastructure and Transport or the Mayor/Do Governor, as prescribed by Ordinance of the Ministry of Land, Infrastructure and Transport. <Amended by Act No. 11690, Mar. 23, 2013>
(5) The Minister of Land, Infrastructure and Transport or the relevant Mayor/Do Governor shall notify a person who reported of whether or not he/she accepts the report within a period prescribed by Ordinance of the Ministry of Land, Infrastructure and Transport from the date when he/she received such report made under paragraph (1) or (4). <Newly Inserted by Act No. 14716, Mar. 21, 2017>
(6) Where the Minister of Land, Infrastructure and Transport or the relevant Mayor/Do Governor fails to notify a person who reported of whether or not he/she accepts the report or whether or not he/she extends the handling period prescribed in statutes relevant to handling of civil affairs within a period prescribed in paragraph (5), it shall be deemed that he/she accepts such report on the next day of the date when such period expires. <Newly Inserted by Act No. 14716, Mar. 21, 2017>
(7) The Minister of Land, Infrastructure and Transport or the relevant Mayor/Do Governor shall notify an applicant of whether or not he/she gives the authorization within 20 days from the date when he/she received the application for the authorization granted under paragraph (2). <Newly Inserted by Act No. 14716, Mar. 21, 2017>
(8) Where the Minister of Land, Infrastructure and Transport or the relevant Mayor/Do Governor fails to notify an applicant of whether or not he/she gives the authorization or whether or not he/she extends the handling period under statutes relevant to handling of civil affairs within a period prescribed in paragraph (7), it shall be deemed that he/she gives the authorization on the next day of the date when such period expires. <Newly Inserted by Act No. 14716, Mar. 21, 2017>
(9) Where a report or authorization referred to in paragraphs (1), (2) and (4) is made or granted, a person who has acquired passenger transport business shall succeed to the status as a transport business entity that a person who has transferred the passenger transport business held, and a corporation that is newly established by a merger or survives a merger shall succeed to the status as a transport business entity, the corporation of which ceases to exist after a merger. <Amended by Act No. 9733, May 27, 2009>
(10) Article 6 shall apply mutatis mutandis to disqualifications for a person who has filed a report or received authorization pursuant to paragraphs (1), (2) and (4). <Amended by Act No. 9733, May 27, 2009>
 Article 15 (Inheritance of Passenger Transport Business)
(1) Where a transport business entity dies and his/her heir intends to continue the passenger transport business, the latter shall submit a report to the Minister of Land, Infrastructure and Transport or the relevant Mayor/Do Governor within 90 days after the date when the predecessor died. <Amended by Act No. 9733, May 27, 2009; Act No. 11690, Mar. 23, 2013; Act No. 13376, Jun. 22, 2015>
(2) The Minister of Land, Infrastructure and Transport or the relevant Mayor/Do Governor shall notify a person who reported of whether or not he/she accepts the report within a period prescribed by Ordinance of the Ministry of Land, Infrastructure and Transport from the date when he/she received such report made under paragraph (1). <Newly Inserted by Act No. 14716, Mar. 21, 2017>
(3) Where the Minister of Land, Infrastructure and Transport or the relevant Mayor/Do Governor fails to notify a person who reported of whether or not he/she accepts the report or whether or not he/she extends the handling period prescribed in statutes relevant to handling of civil affairs within a period prescribed in paragraph (2), it shall be deemed that he/she accepts the report on the next day of the date when such period expires. <Newly Inserted by Act No. 14716, Mar. 21, 2017>
(4) Where a transport business entity prescribed by Presidential Decree dies, his/her heir shall not continue the passenger transport business, notwithstanding paragraph (1): Provided, That the same shall not apply where the relevant provisions are prescribed otherwise by ordinance of the competent local government, taking account of demand, supply, etc. of business licenses in each business area. <Newly Inserted by Act No. 13376, Jun. 22, 2015>
(5) Where an heir has filed a report prescribed in paragraph (1), it shall be deemed that a license or registration of passenger transport business for the deceased person is a license or registration for the heir during the period from the date of the death of the deceased person to the date of report.
(6) An heir who has filed a report pursuant to paragraph (1), shall succeed to the status as a transport business entity that the deceased person had.
(7) Article 6 shall apply mutatis mutandis to disqualifications for a person who has filed a report pursuant to paragraph (1): Provided, That where the heir transfers the inherited passenger transport business to another person within 90 days from the date of the death of the deceased person, it shall be deemed that a license or registration for passenger transport business for the deceased person is a license or registration for the heir during the period from the date of the death of the deceased person to the date of transfer.
 Article 16 (Temporary Closure or Permanent Closure of Passenger Transport Business)
(1) Where a person who has obtained a license for passenger transport business pursuant to Article 4 (1) intends to temporarily shut down or permanently close down the whole or any part of his/her passenger transport business, he/she shall obtain permission from the Minister of Land, Infrastructure and Transport or the relevant Mayor/Do Governor, as prescribed by Ordinance of the Ministry of Land, Infrastructure and Transport: Provided, That this shall not apply where he/she has temporarily shut down or permanently closed down such business due to the destruction of a road or a bridge or in any extenuating circumstances. <Amended by Act No. 11690, Mar. 23, 2013>
(2) Where a person who has completed registration for passenger transport business pursuant to the proviso to Article 4 (1) intends to temporarily shut down the whole or any part of such business or permanently close down the whole of such business, he/she shall submit a report thereon to the relevant Mayor/Do Governor, as prescribed by Ordinance of the Ministry of Land, Infrastructure and Transport. <Amended by Act No. 11690, Mar. 23, 2013>
(3) The Minister of Land, Infrastructure and Transport or the relevant Mayor/Do Governor shall notify a person who reported of whether or not he/she accepts the report within a period prescribed by Ordinance of the Ministry of Land, Infrastructure and Transport from the date when he/she received such report prescribed in paragraph (2). <Newly Inserted by Act No. 14716, Mar. 21, 2017>
(4) Where the Minister of Land, Infrastructure and Transport or the relevant Mayor/Do Governor fails to notify a person who reported of whether or not he/she accepts the report or whether or not he/she extends the handling period prescribed in statutes relevant to handling of civil affairs within a period prescribed in paragraph (3), it shall be deemed that he/she accepts such report on the next day of the date when such period expires. <Newly Inserted by Act No. 14716, Mar. 21, 2017>
(5) No period of temporary closure referred to in paragraphs (1) and (2) shall exceed one year.
(6) Where a transport business entity intends to temporarily shut down or permanently close down the whole or any part of the passenger transport business, he/she shall place a notice in advance at the place of business and other places readily visible to the general public.
 Article 17 (Indications on Motor Vehicles)
A transport business entity shall indicate his/her name, sign, and other matters determined by Ordinance of the Ministry of Land, Infrastructure and Transport on the outside of a motor vehicle used for passenger transport business. <Amended by Act No. 11690, Mar. 23, 2013>
 Article 18 (Transport of Mails, etc.)
(1) A route passenger transport business entity may transport mails, newspapers, passengers' hand baggages, and other parcels specified by Ordinance of the Ministry of Land, Infrastructure and Transport that need to be transported promptly, along with passengers. <Amended by Act No. 12377, Jan. 28, 2014>
(2) The volume and weight of parcels that a route passenger transport business entity may transport pursuant to paragraph (1) and other necessary matters shall be prescribed by Ordinance of the Ministry of Land, Infrastructure and Transport. <Newly Inserted by Act No. 12377, Jan. 28, 2014>
(3) Notwithstanding paragraph (1), the Minister of Land, Infrastructure and Transport or the relevant Mayor/Do Governor may issue an order to prohibit transport of parcels to the route passenger transport business entity, if deemed necessary for the safety of passengers. <Newly Inserted by Act No. 12377, Jan. 28, 2014>
 Article 19 (Measures, etc. against Accidents)
(1) Where any of the following circumstances arises due to a breakdown of a commercial motor vehicle, a traffic accident, or a natural disaster, a transport business entity shall take the following relevant measures, as prescribed by Ordinance of the Ministry of Land, Infrastructure and Transport: <Amended by Act No. 11690, Mar. 23, 2013; Act No. 13485, Aug. 11, 2015>
1. Where casualties are incurred: Manage articles left behind promptly;
2. Where it is impossible to resume operation of the relevant commercial motor vehicle: Take necessary measures, such as securing and providing alternative transportation means to passengers: Provided, That the same shall not apply where consent from passengers is obtained.
(2) Where a commercial motor vehicle causes any of the following accidents (hereinafter referred to as "serious traffic accident"), the transport business entity shall without delay submit a report to the Minister of Land, Infrastructure and Transport or the relevant Mayor/Do Governor, as prescribed by Ordinance of the Ministry of Land, Infrastructure and Transport: <Amended by Act No. 11690, Mar. 23, 2013>
1. A rollover;
2. An accident with a fire;
3. An accident that causes casualties in excess of the number of those prescribed by Presidential Decree.
 Article 20 (Evaluation of Management and Service of Passenger Transport Service Provider)
(1) The Minister of Land, Infrastructure and Transport or the relevant Mayor/Do Governor may conduct an evaluation of the management status and service of a person who provides a passenger transport service (hereinafter referred to "passenger transport service provider") in order to systematically support, promote, and improve passenger transport service. <Amended by Act No. 11690, Mar. 23, 2013>
(2) The Minister of Land, Infrastructure and Transport or the relevant Mayor/Do Governor may publicly announce the results of the evaluation of management and service under paragraph (1) (excluding the results of management evaluation), as prescribed by Ordinance of the Ministry of Land, Infrastructure and Transport. <Amended by Act No. 11690, Mar. 23, 2013>
(3) The Minister of Land, Infrastructure and Transport or the relevant Mayor/Do Governor may grant rewards, issue certificates of excellent performance, or preferentially provide financial supports under Article 50 to persons who show the excellent performance in evaluating the management and service under paragraph (1), as prescribed by Ordinance of the Ministry of Land, Infrastructure and Transport. <Amended by Act No. 11690, Mar. 23, 2013>
(4) The Minister of Land, Infrastructure and Transport or the relevant Mayor/Do Governor may request a passenger transport service provider to submit data necessary for the management and service evaluation under paragraph (1). <Amended by Act No. 11690, Mar. 23, 2013>
(5) Matters necessary for the subject, criteria, methods of, and procedures for the management and service evaluation conducted by the Minister of Land, Infrastructure and Transport or the relevant Mayor/Do Governor pursuant to paragraph (1) shall be prescribed by Ordinance of the Ministry of Land, Infrastructure and Transport. <Amended by Act No. 11690, Mar. 23, 2013>
 Article 20-2 (Notification of Transportation Safety Information Related to Passenger Transport Service Providers)
(1) The Minister of Land, Transport and Infrastructure may notify transportation safety information related to passenger transport service providers to those who intend to use a motor vehicle for passenger transport service.
(2) Matters necessary for the subjects of and standards for transport safety information and the methods of and procedures for notification under paragraph (1) shall be prescribed by Ordinance of the Ministry of Land, Transport and Infrastructure.
[This Article Newly Inserted by Act No. 15320, Dec. 26, 2017]
 Article 21 (Matters to be Observed by Transport Business Entities)
(1) Every transport business entity determined by Presidential Decree shall collect all charges or fares (hereinafter referred to as "transport revenues") which passengers have paid to a transport employee from the relevant transport employees. <Amended by Act No. 13800, Jan. 19, 2016>
(2) Any transport business entity shall allow persons who meet the requirements referred to in Article 24 to engage in driving service.
(3) No transport business entity shall become a franchisee of more than one passenger transport franchise (hereinafter referred to as "transport business franchisee"). <Newly Inserted by Act No. 9733, May 27, 2009>
(4) Any transport business entity who becomes a transport business franchisee (limited to where a person engages in passenger transport business with one motor vehicle and directly engages in driving service) shall change his/her trade name to that of the transport business franchisor and submit a report thereon to the Mayor/Do Governor, as prescribed by Ordinance of the Ministry of Land, Infrastructure and Transport. <Newly Inserted by Act No. 9733, May 27, 2009; Act No. 11690, Mar. 23, 2013>
(5) Where a report made under paragraph (4) has no fault in the matters written therein and in the attached documents thereof and meets the formal requirements prescribed by Acts or other statutes, it shall be deemed that the duty of a report is fulfilled when the report arrives at the receiving agency. <Newly Inserted by Act No. 14716, Mar. 21, 2017>
(6) Every transport business entity shall maintain safety seat belts worn by passengers prescribed in Article 27-2 in normal operational condition (where passengers are children aged under six years, including condition in which the passengers are able to wear equipment for the protection of children). <Newly Inserted by Act No. 11447, May 23, 2012; Act No. 14949, Oct. 24, 2017>
(7) Every transport business entity shall train his/her transport employees on the fastening of safety seat belts by passengers. In such cases, the method, details, timing, period of such training and other necessary matters, shall be prescribed by Ordinance of the Ministry of Land, Infrastructure and Transport. <Newly Inserted by Act No. 11447, May 23, 2012; Act No. 11690, Mar. 23, 2013>
(8) With regard to motor vehicles used for passenger transport business determined by Presidential Decree, among area-passenger transport business, airbags shall be installed at the driver's seat and the seat adjacent thereto, as prescribed by Ordinance of the Ministry of Land, Infrastructure and Transport. <Newly Inserted by Act No. 12020, Aug. 6, 2013>
(9) Any transport business entity engaging in passenger transport business determined by Presidential Decree, among area-passenger transport business, shall provide the following traffic safety information on the relevant motor vehicles and drivers at the request of users or in cases of concluding a transport contract with users: <Newly Inserted by Act No. 12645, May 21, 2014; Act No. 13376, Jun. 22, 2015>
1. Whether the driver has acquired the qualifications for engaging in driving service provided under Article 24;
2. Whether the motor vehicle meets the standards for the age limits for motor vehicles and mileage prescribed in Article 84;
3. Whether the transport business entity has purchased mandatory insurance specified in the Compulsory Motor Vehicle Liability Security Act;
4. Other information determined by Ordinance of the Ministry of Land, Infrastructure and Transport in relation to traffic safety of users.
(10) Where a transport business entity engaging in passenger transport business determined by Presidential Decree, among area-passenger transport business, intends to operate a commercial motor vehicle, he/she shall file a report on the following operational information to the Mayor/Do Governor, have a certificate of operational records issued, and attach it to the relevant motor vehicle. In such cases, matters necessary for the procedures, methods, etc. for making reports on operational information and the issuance and attachment of certificates of operational records, shall be prescribed by Ordinance of the Ministry of Land, Infrastructure and Transport: <Newly Inserted by Act No. 12982, Jan. 6, 2015>
1. The date and timing, purposes, and routes of operation;
2. The name of the relevant transport employee and his/her qualifications for driving;
3. Other information determined by Ordinance of the Ministry of Land, Infrastructure and Transport.
(11) Transport business entities shall guarantee transport employees sufficient break time necessary for safe driving (hereinafter referred to as “break time”). In such cases, matters regarding break time by each transportation means shall be prescribed by Ordinance of the Ministry of Land, Infrastructure and Transport. <Newly Inserted by Act No. 14949, Oct. 24, 2017>
(12) Matters to be observed by transport business entities concerning safety while driving, passenger conveniences, or directions and verification for improvement of services, other than those listed in paragraphs (1) through (10), shall be determined by Ordinance of the Ministry of Land, Infrastructure and Transport. <Amended by Act No. 9733, May 27, 2009; Act No. 11447, May 23, 2012; Act No. 11690, Mar. 23, 2013; Act No. 12020, Aug. 6, 2013; Act No. 12645, May 21, 2014; Act No. 12982, Jan. 6, 2015; Act No. 14716, Mar. 21, 2017; Act No. 14949, Oct. 24, 2017>
 Article 22 (Notification on Present Status of Transport Employees, etc.)
(1) Any transport business entity (excluding any person who operates passenger transport business with one motor vehicle and directly engages in driving service) shall notify the relevant Mayor/Do Governor of the following matters concerning transport employees in accordance with each requirement: <Amended by Act No. 15320, Dec. 26, 2017>
1. A list of transport employees who are newly employed or have retired (in cases of newly employed transport employees, including types and acquisition date of their driving licenses): Within seven days from the date of new employment or retirement;
2. The status of transport employees at the end of the preceding month: By the tenth of each month;
3. The details of providing each transport employee with break time during the preceding month: By the tenth of each month.
(2) The Mayor/Do Governor who has been notified of the matters under paragraph (1) shall without delay submit a report thereon to the Minister of Land, Infrastructure and Transport. <Amended by Act No. 11690, Mar. 23, 2013>
(3) The Mayor/Do Governor who has administered an examination referred to in Article 24 (1) 3 shall give a report on the present status of persons who have obtained qualifications to the Minister of Land, Infrastructure and Transport by the tenth day of each month, without delay, as prescribed by Ordinance of the Ministry of Land, Infrastructure and Transport. <Newly Inserted by Act No. 12377, Jan. 28, 2014; Act No. 15320, Dec. 26, 2017>
(4) A training institution for transport employees, etc. which has provided training for transport employees under Article 25 (1) shall give a report on the present status of transport employees who received training to the Minister of Land, Infrastructure and Transport by the 10th day of each month. <Newly Inserted by Act No. 12377, Jan. 28, 2014>
 Article 22-2 (Computerization of Transport Employee Management Business)
(1) To manage the present status of transport employees efficiently, the Minister of Land, Infrastructure and Transport may establish and operate a system for collecting and managing the information specified by Ordinance of the Ministry of Land, Infrastructure and Transport (hereafter referred to as "transport employee management system" in this Article), including the present status of transport employees.
(2) If necessary for public purposes, such as the efficient management of transport employees and the prevention of traffic accidents, the Minister of Land, Infrastructure and Transport may allow the integrated use of data processed by the transport employee management system by City/Do, associations under Article 53, etc., as prescribed by Ordinance of the Ministry of Land, Infrastructure and Transport.
[This Article Newly Inserted by Act No. 12377, Jan. 28, 2014]
 Article 23 (Improvement Order, etc. for Passenger Transport Business)
(1) If deemed necessary for the smooth transport of and better service for passengers, the Minister of Land, Infrastructure and Transport or the relevant Mayor/Do Governor (referring to the head of a Si/Gun for the transport business determined by Presidential Decree, in cases falling under subparagraph 10) may order a transport business entity to take the following measures: <Amended by Act No. 11295, Feb. 1, 2012; Act No. 11690, Mar. 23, 2013>
1. Change of a business plan (excluding any change of a business plan to close routes or reduce the number of motor vehicles under Article 85 (1));
2. Extension, curtailment or change of routes;
3. Adjustment of charges or fares;
4. Change of terms and conditions on passenger transport;
5. Improvement of motor vehicles and transport facilities;
6. Improvement in the method of collecting charges or fares;
7. Conclusion of joint transport service agreements;
8. Purchase of an insurance policy or conclusion of a mutual aid agreement for motor vehicle accident compensation;
9. Necessary measures concerning ensuring safety while driving and improving service;
10. Operation of remote routes and other unprofitable routes.
(2) Where the area or route which has difficulty in providing regular-route bus service or operating subways requires urgent transport supply due to natural disasters, etc. the Minister of Land, Infrastructure and Transport or the relevant Mayor/Do Governor may order a transport business entity to operate buses as alternative means of transport by extending or changing a regular bus route or operating an irregular bus route. <Amended by Act No. 11690, Mar. 23, 2013>
(3) Where any transport business entity suffers a loss incurred by complying with a correction order under paragraph (1) 10 or an order issued to operate buses under paragraph (2), the Minister of Land, Infrastructure and Transport, the relevant Mayor/Do Governor or the head of a Si/Gun shall compensate such loss, as prescribed by Presidential Decree. <Amended by Act No. 11295, Feb. 1, 2012; Act No. 11690, Mar. 23, 2013>
 Article 24 (Qualifications for Engaging in Driving Service of Passenger Transport Business)
(1) A person who intends to engage in driving service of passenger transport business shall meet the requirements specified in both subparagraphs 1 and 2, as well as those specified in either subparagraph 3 or 4 (limited to passenger transport business prescribed by Ordinance of the Ministry of Land, Infrastructure and Transport): <Amended by Act No. 11690, Mar. 23, 2013; Act No. 12645, May 21, 2014>
1. He/she shall satisfy the prerequisites for driving service, such as age and driving career determined by Ordinance of the Ministry of Land, Infrastructure and Transport;
2. He/she shall pass a detailed inspection for driving aptitude conducted by the Minister of Land, Infrastructure and Transport, as prescribed by Ordinance of the Ministry of Land, Infrastructure and Transport;
3. He/she shall hold a qualification acquired from the Minister of Land, Infrastructure and Transport or the relevant Mayor/Do Governor, after passing an examination administered by the Minister of Land, Infrastructure and Transport or such Mayor/Do Governor on passenger transport service-related statutes, geographical familiarity, etc.;
4. He/she shall hold a qualification after completing theoretical and practical education provided by the Minister of Land, Infrastructure and Transport, at research and education facilities for traffic safety experience under Article 56 of the Traffic Safety Act, in relation to traffic safety experience, instructions for dealing with traffic accidents, passenger transport service-related statutes, etc.
(2) Matters necessary for the administering of an examination, the completion of education, and the acquisition of qualifications prescribed in paragraph (1) 3 and 4 and other necessary matters shall be prescribed by Ordinance of the Ministry of Land, Infrastructure and Transport. <Amended by Act No. 11690, Mar. 23, 2013; Act No. 12645, May 21, 2014>
(3) Where a person who intends to obtain a driving qualification for passenger transport business falls under any of the following cases, he/she can not obtain qualifications referred to in paragraph (1): <Amended by Act No. 13717, Jan. 6, 2016; Act No. 14342, Dec. 2, 2016>
1. A person for whom two years have not elapsed since his/her imprisonment without labor or greater punishment declared by a court for any of the following crimes, was complete (including where the execution of such sentence is deemed complete) or exempted:
(c) Crimes prescribed in the Narcotics Control Act;
(d) Crimes prescribed in Articles 332 (limited to habitual offenders referred to in Articles 329 through 331) and 341 of the Criminal Act or respective attempted crimes, and crimes prescribed in Article 363 of the Criminal Act;
2. A person who is under suspension of the execution of his/her imprisonment without labor or greater punishment, declared by a court for a crime falling under any item of subparagraph 1;
3. A person who falls under any of the following for five years before the date of the qualification examination administered under paragraph (2):
(a) A person whose driver’s license was revoked by falling under Article 93 (1) 1 through 4 of the Road Traffic Act;
(b) A person who fails to obtain his/her own driver’s license or drives motor vehicles, etc. prescribed in subparagraph 21 of Article 2 of the Road Traffic Act while his/her driver’s license was suspended in violation of Article 43 of the same Act, and was sentenced to a fine or heavier punishment or whose driver’s license was revoked under Article 93 (1) 19 of the same Act;
(c) A person whose driver’s license was revoked under Article 93 (1) 10 of the Road Traffic Act as he/she deliberately or negligently causes a traffic accident while driving a motor vehicle, etc., and at least three persons were killed (including the cases where persons died within 30 days from the date of accident) or at least 20 persons were injured;
4. A person whose driver’s license was revoked for three years before the date of the qualification examination administered under paragraph (2) by falling under Article 93 (1) 5 and 5-2 of the Road Traffic Act.
(4) Where a person who intends to acquire a driving qualification for passenger transport business determined by Presidential Decree, among area-passenger transport business, falls under any of the following, he/she can not obtain qualifications referred to in paragraph (1), notwithstanding paragraph (3): <Amended by Act No. 11556, Dec. 18, 2012; Act No. 14342, Dec. 2, 2016>
1. A person for whom the period prescribed by Presidential Decree considering the type or nature of crimes, the term of imprisonment and recidivism risk, etc. within the scope of maximum 20 years has not elapsed since his/her imprisonment without labor or greater punishment declared by a court for any of the following crimes, was complete (including where the execution of such sentence is deemed complete) or exempted:
(a) Crimes referred to in each item of paragraph (3) 1;
(b) Crimes referred to in Article 2 (1) 2 through 4, Articles 3 through 9 and 15 (excluding any attempted criminal referred to in Article 13) of the Act on Special Cases concerning the Punishment, etc. of Sexual Crimes;
2. A person who is under suspension of the execution of his/her imprisonment without labor or greater punishment, declared by a court for a crime referred to in subparagraph 1.
(5) To verify driving career referred to in paragraph (1) 1 and criminal records referred to in paragraphs (3) and (4), the Minister of Land, Infrastructure and Transport or the Mayor/Do Governor may request the Commissioner of the National Police Agency to inquire into criminal records only when such information is necessary. <Amended by Act No. 11690, Mar. 23, 2013; Act No. 12377, Jan. 28, 2014>
[This Article Wholly Amended by Act No. 11295, Feb. 1, 2012]
[This Article, which was determined to be inconsistent with the Constitution by the Constitutional Court on Dec. 23, 2015, is amended by Act No. 14342, Dec. 2, 2016]
 Article 24-2 (Posting, etc. of Certificate of Driving Qualification)
(1) A transport employee of passenger transport business (referring to the relevant driver, if another person is allowed to engage in driving service on behalf of the transport employee on the grounds prescribed by Ordinance of the Ministry of Land, Infrastructure and Transport, such as a transport business entity's disease) shall be issued with a certificate proving his/her qualification for engaging in driving service referred to in Article 24 and shall post the certificate in the relevant commercial motor vehicle at all times.
(2) Notwithstanding paragraph (1), a transport employee prescribed by Presidential Decree, among transport employees of area-passenger transport business, may post a certificate of driving qualification by such means as electronic media or devices.
(3) Matters necessary for issuing, managing, and posting a certificate referred to in paragraph (1) shall be prescribed by Ordinance of the Ministry of Land, Infrastructure and Transport.
[This Article Newly Inserted by Act No. 13485, Aug. 11, 2015]
 Article 25 (Training, etc. for Transport Employees)
(1) A transport employee shall receive training on the following matters before engaging in driving service, as prescribed by Ordinance of the Ministry of Land, Infrastructure and Transport: <Amended by Act No. 13485, Aug. 11, 2015; Act No. 14861, Aug. 9, 2017>
1. Statutes related to passenger transport service and road traffic;
2. Service attitude and establishment of transportation order;
3. Traffic safety rules;
4. Methods of first-aid treatment;
5. Eco-driving defined in subparagraph 15 of Article 2 of the Sustainable Transportation Logistics Development Act;
6. Other matters necessary for driving service.
(2) A transport business entity shall take a necessary measure to enable transport employees to receive training pursuant to paragraph (1), and shall not allow any transport employee who has failed to complete the training, to engage in any driving service.
(3) The relevant Mayor/Do Governor may establish a training institution for transport employees under his/her direct management or designate a training institution for transport employees, and grant a subsidy for expenses incurred in operating a training institution for transport employees, as prescribed by Municipal Ordinance of the Special Metropolitan City, a Metropolitan City, a Special Self-Governing City, a Do, or a Special Self-Governing Province (hereinafter referred to as "City/Do") in order to provide training referred to in paragraph (1) efficiently. <Amended by Act No. 11447, May 23, 2012>
 Article 26 (Matters to be Observed by Transport Employees)
(1) A transport employee shall be prohibited from engaging in the following activities: <Amended by Act No. 11690, Mar. 23, 2013; Act No. 12377, Jan. 28, 2014; Act No. 14949, Oct. 24, 2017>
1. Refusing passengers (including boarding reservations, in cases of on-demand passenger transport business referred to in Article 3 (1) 3) or forcing them to alight on the way to a destination without good cause (excluding passenger transport business determined by Presidential Decree, among area-passenger transport business);
2. Charging excessive charges or fares (excluding passenger transport business determined by Presidential Decree, among area-passenger transport business);
3. Stopping at any place for a long time to attract passengers;
4. Deleted; <by Act No. 12377, Jan. 28, 2014>
5. Starting or operating a motor vehicle without shutting the door firmly;
6. Starting a motor vehicle before passengers board or alight or passing a stop without stopping despite passengers waiting to board or alight;
7. Failing to make public announcements (limited to motor vehicles equipped with public announcement systems prescribed by Ordinance of the Ministry of Land, Infrastructure and Transport);
7-2. Smoking in a motor vehicle for passenger transport business;
7-3. Operating a motor vehicle without observing break time;
8. Violating other matters to be observed by transport employees for safety while driving and for passenger convenience determined by Ordinance of the Ministry of Land, Infrastructure and Transport.
(2) A transport employee employed by a transport business entity prescribed in Article 21 (1) shall pass on transport revenues in full to the transport business entity.
(3) Before starting a motor vehicle, a transport employee shall instruct passengers to fasten safety seat belts pursuant to Article 27-2. In such cases, the method and timing for providing such instruction and other necessary matters shall be prescribed by Ordinance of the Ministry of Land, Infrastructure and Transport. <Newly Inserted by Act No. 11447, May 23, 2012; Act No. 11690, Mar. 23, 2013>
(4) No transport employee operating a motor vehicle to which a certificate of operation records should be attached pursuant to Article 21 (10), shall make the relevant certificate of operation records illegible or operate a motor vehicle with an illegible certificate of operation records during the operation period reported pursuant to the same paragraph. <Newly Inserted by Act No. 12982, Jan. 6, 2015; Act No. 14716, Mar. 21, 2017>
 Article 27 (Maintenance, Management, etc. of Driving Records on Accidents)
(1) The Minister of Land, Infrastructure and Transport shall maintain and manage driving records of transport employees on casualty accidents, traffic violations, and criminal records referred to in Article 24 (3) and (4), which are confirmed by the Commissioner of the National Police Agency. <Amended by Act No. 11447, May 23, 2012; Act No. 11690, Mar. 23, 2013>
(2) Where a license of a transport employee is revoked or suspended or any of transport employees meets a criteria prescribed by Ordinance of the Ministry of Land, Infrastructure and Transport to ensure safety while driving passenger cars, the Minister of Land, Infrastructure and Transport shall notify the relevant Mayor/Do Governor or the relevant transport business entity (excluding any person who engages in passenger transport business with one motor vehicle and directly engages in driving service) thereof. <Amended by Act No. 11690, Mar. 23, 2013>
 Article 27-2 (Matters to be Observed by Passengers)
(1) Passengers who board a motor vehicle for passenger transport business determined by Presidential Decree, which is operated on roads prescribed by Presidential Decree in consideration of the maximum speed and road conditions, shall fasten a safety seat belt: Provided, That this shall not apply to passengers determined by Presidential Decree, such as patients and pregnant women.
(2) No passenger shall smoke in a motor vehicle for passenger transport business. <Newly Inserted by Act No. 12377, Jan. 28, 2014>
[This Article Newly Inserted by Act No. 11447, May 23, 2012]
CHAPTER III CAR RENTAL BUSINESS
 Article 28 (Registration)
(1) Any person who intends to operate a car rental business shall establish a business plan and register with the relevant Mayor/Do Governor, as prescribed by Ordinance of the Ministry of Land, Infrastructure and Transport. <Amended by Act No. 11690, Mar. 23, 2013>
(2) Article 6 shall apply mutatis mutandis to disqualification for car rental business under paragraph (1).
 Article 29 (Registration Requirements)
The number of motor vehicles, garage area holdings, places of business, or other necessary matters which constitute registration requirements for car rental business shall be determined by Ordinance of the Ministry of Land, Infrastructure and Transport. <Amended by Act No. 11690, Mar. 23, 2013>
 Article 30 (Kinds of Motor Vehicles for Car Rental Business)
The kinds of motor vehicles that can be used for car rental business shall be determined by Ordinance of the Ministry of Land, Infrastructure and Transport. <Amended by Act No. 11690, Mar. 23, 2013>
 Article 31 (Terms and Conditions of Car Rental)
(1) Any person who has completed registration for car rental business pursuant to Article 28 (1) (hereinafter referred to as "car rental business entity") shall establish rental terms and conditions and file a report thereon with the relevant Mayor/Do Governor before commencing his/her car rental business. The same shall apply where he/she modifies rental terms and conditions.
(2) The relevant Mayor/Do Governor shall notify a person who reported of whether or not he/she accepts the report within a period prescribed by Ordinance of the Ministry of Land, Infrastructure and Transport from the date when he/she received such report or report of change under paragraph (1). <Newly Inserted by Act No. 14716, Mar. 21, 2017>
(3) Where the relevant Mayor/Do Governor fails to notify a person who reported of whether or not he/she accepts the report or whether or not he/she extends the handling period prescribed in statutes relevant to handling of civil affairs within a period prescribed in paragraph (2), it shall be deemed that he/she accepts such report on the next day of the date when such period expires. <Newly Inserted by Act No. 14716, Mar. 21, 2017>
(4) Matters necessary for the entries in rental terms and conditions referred to in paragraph (1) shall be determined by Ordinance of the Ministry of Land, Infrastructure and Transport. <Amended by Act No. 11690, Mar. 23, 2013>
 Article 32 (Entrustment of Managerial Tasks of Car Rental Business)
(1) Where a car rental business entity intends to entrust the managerial tasks of car rental business, he/she shall obtain permission from the relevant Mayor/Do Governor.
(2) No managerial tasks under paragraph (1) shall be entrusted to a person who is not a car rental business entity.
 Article 33 (Improvement Order for Car Rental Business)
The relevant Mayor/Do Governor may issue the following orders to car rental business entities if it is deemed necessary to protect persons who rent cars, ensure safety while driving, provide better service, and properly manage car rental business:
1. Change of business plan;
2. Amendment to rental terms and conditions;
3. Improvement and change of facilities.
 Article 34 (Prohibition of Transport with Compensation, etc.)
(1) No person who rents a commercial motor vehicle from a car rental business entity, shall use such motor vehicle for transport with compensation or sublet the motor vehicle to any third party, and no person shall arrange such activities. <Amended by Act No. 13376, Jun. 22, 2015>
(2) No person shall arrange a driver for a person who rents a commercial motor vehicle from a car rental business entity: Provided, That a car rental business entity may arrange a driver for any person prescribed by Presidential Decree, such as foreigners or persons with disabilities. <Amended by Act No. 13376, Jun. 22, 2015>
(3) No car rental business entity shall use any of his/her commercial motor vehicles for passenger transport to meet the needs of other persons, and no person shall arrange such activities. <Amended by Act No. 13376, Jun. 22, 2015>
 Article 34-2 (Matters to be Observed by Car Rental Business Entities)
(1) No car rental business entity shall exchange money and other goods with a motor vehicle management business entity prescribed in the Motor Vehicle Management Act or with a transport business entity or employee prescribed in the Trucking Transport Business Act, with regard to car rental caused by breakdown of a motor vehicle or an accident.
(2) Where a car rental business entity rents cars for rental business, he/she shall verify the qualifications for driving of the driver in the rental agreement (in cases of arranging a driver prescribed in Article 34 (2), referring to the relevant driver; hereinafter the same shall apply) and where the relevant driver falls under any of the following, he/she shall not rent cars: Provided, That this shall not apply to cases where a lessee of cars for rental business is a corporation and a driver is not designated in the rental agreement: <Newly Inserted by Act No. 14342, Dec. 2, 2016>
1. Where a driver fails to obtain his/her own driver’s license from the commissioner of a district police agency prescribed in Article 80 (1) of the Road Traffic Act or the effect of the driver’s license was suspended;
2. Where the rented cars do not fall under the types that can be driven within the scope of a driver’s license (referring to the scope of a driver’s license prescribed in Article 80 (2) of the Road Traffic Act) owned by the driver in the rental agreement.
[This Article Newly Inserted by Act No. 12377, Jan. 28, 2014]
 Article 34-3 (Establishment of Verification System of Qualifications of Driving)
(1) The Minister of Land, Infrastructure and Transport shall establish a system necessary for the verification of the qualifications of driving of drivers prescribed in Article 34-2 (2) (hereinafter referred to as “verification system of qualifications of driving) and shall allow car rental business entities to use the relevant system.the Commissioner of the National Police Agency.
(2) The Minister of Land, Infrastructure and Transport may request the Commissioner of the National Police Agency to check whether it falls under each subparagraph Article 34-2 (2) by sharing administrative information under Article 36 (1) of the Electronic Government Act for the establishment and operation of the verification system of qualification of driving. In such cases, the Commissioner of the National Police Agency, upon receipt of such request, shall comply therewith, except in extenuating circumstances.
[This Article Newly Inserted by Act No. 14342, Dec. 2, 2016]
 Article 35 (Provisions Applicable Mutatis Mutandis)
Articles 10 (2) through (6), 11, 12, 14 (excluding paragraph (2)), 15, and 16 (excluding paragraph (1)) shall apply mutatis mutandis to change of a business plan restrictions on the modification of a business plan, joint transport service agreements, prohibition against the use of names, transfer and acquisition of business, merger of corporations, or succession, suspension, closure, etc. of a car rental business. <Amended by Act No. 14716, Mar. 21, 2017>
CHAPTER IV BUS TERMINAL BUSINESS
 Article 36 (License for Bus Terminal Business)
(1) Any person who intends to operate bus terminal business (hereinafter referred to as "terminal business") shall obtain a license from the relevant Mayor/Do Governor, as prescribed by Ordinance of the Ministry of Land, Infrastructure and Transport. <Amended by Act No. 11690, Mar. 23, 2013>
(2) Article 6 shall apply mutatis mutandis to licenses for terminal business.
 Article 37 (Licensing Standards)
The licensing standards for terminal business shall include the following requirements:
1. The location of each bus terminal (hereinafter referred to as "terminal") is required to be convenient for passengers to access and be easy to connect with other means of transport;
2. The size of terminal is required to meet the long-term transport demand of the relevant area;
3. The commencement of terminal business is required to serve the enhanced convenience of terminal users and the development of passenger transport business in the relevant area.
 Article 38 (Authorization, etc. on Execution of Construction Works)
(1) Any person who has obtained a license for terminal business pursuant to Article 36 (1) (hereinafter referred to as "terminal operator") shall establish a construction plan for terminal to be installed and obtain authorization thereon by such deadline as prescribed by the relevant Mayor/Do Governor. The same shall apply where he/she intends to change the matters of authorization determined by Presidential Decree.
(2) Where the relevant Mayor/Do Governor deems that a construction plan referred to in paragraph (1) complies with the structure and equipment standards determined by Ordinance of the Ministry of Land, Infrastructure and Transport, he/she shall authorize the execution of construction work. <Amended by Act No. 11690, Mar. 23, 2013>
(3) Where a terminal operator fails to apply for authorization by the deadline provided for in paragraph (1) due to a natural disaster or any other unavoidable cause, the relevant Mayor/Do Governor may extend the deadline upon request from the terminal operator.
(4) Where a terminal operator completes the construction work authorized under paragraph (1), he/she shall have the facilities confirmed by the relevant Mayor/Do Governor.
 Article 39 (Commencement of Use)
Any terminal operator shall commence using a terminal by the deadline designated by the relevant Mayor/Do Governor after obtaining facility confirmation under Article 38 (4): Provided, That if good cause exists, a terminal operator may file an application for extension of the deadline to start using a terminal with the relevant Mayor/Do Governor.
 Article 40 (Terms and Conditions of Use)
(1) Any terminal operator shall determine terms and conditions of use and file a report thereon with the relevant Mayor/Do Governor. The same shall apply where he/she amends such terms and conditions of use.
(2) The relevant Mayor/Do Governor shall notify a person who reported of whether or not he/she accepts the report within a period prescribed by Ordinance of the Ministry of Land, Infrastructure and Transport from the date when he/she received such report or report of change under paragraph (1). <Newly Inserted by Act No. 14716, Mar. 21, 2017>
(3) Where the relevant Mayor/Do Governor fails to notify a person who reported of whether or not he/she accepts the report or whether or not he/she extends the handling period prescribed in statutes relevant to handling of civil affairs within a period prescribed under paragraph (2), it shall be deemed that he/she accepts the report on the next day of the date when such period expires. <Newly Inserted by Act No. 14716, Mar. 21, 2017>
(4) Matters necessary for entries in terms and conditions of use under paragraph (1) shall be determined by Ordinance of the Ministry of Land, Infrastructure and Transport. <Amended by Act No. 11690, Mar. 23, 2013>
 Article 41 (Facility User Fees)
(1) Where a terminal operator intends to charge facility user fees to transport business entities using his/her terminal (hereinafter referred to as "terminal users"), he/she shall obtain authorization from the relevant Mayor/Do Governor. The same shall apply to changes to such facility user fees.
(2) Matters necessary for facility user fees, such as authorization standards for facility user fees referred to in paragraph (1) shall be determined by Ordinance of the Ministry of Land, Infrastructure and Transport. <Amended by Act No. 11690, Mar. 23, 2013>
 Article 42 (Matters to be Observed by Terminal Operators)
(1) A terminal operator shall comply with the following observations:
1. Not placing unfair restrictions on use of terminal facilities;
2. Not giving discriminative treatment to terminal users;
3. Maintaining and managing incidental facilities, such as waiting rooms and rest rooms, to enable terminal users or terminal clients to use them conveniently.
(2) A terminal operator shall maintain and manage structures and equipment of terminals in compliance with such standards as may be prescribed by Article 38 (2).
(3) The relevant Mayor/Do Governor shall, if a terminal operator has performed activities prohibited under paragraph (1), issue an order for suspension of such activities and, if a terminal operator has failed to maintain and manage structures and equipment under paragraph (2), issue a corrective order.
 Article 43 (Changes, etc. of Location, Size, Structures, Equipment)
(1) Where a terminal operator intends to change the location, size, structures, equipment, etc. of a terminal, he/she shall obtain authorization from the relevant Mayor/Do Governor: Provided, That this shall not apply to changes to minor matters prescribed by Ordinance of the Ministry of Land, Infrastructure and Transport. <Amended by Act No. 11690, Mar. 23, 2013>
(2) Articles 37 through 39 shall apply mutatis mutandis to authorization under paragraph (1).
 Article 44 (Improvement Order for Terminal Business)
Where it is deemed that traffic convenience for terminal users and terminal clients is impaired or it is deemed necessary to improve terminal business, the relevant Mayor/Do Governor may order the terminal operator to take the following measures:
1. Measures to change the size and structure of a terminal, and to improve and alter equipment at a terminal;
2. Measures to change the terms and conditions of use, facility user fees or commissions on consignment ticket sales;
3. Measures to provide better service to terminal users and terminal clients, to maintain order, and to ensure safety;
4. Measures to improve the quality of employees, such as training;
5. Measures necessary for smooth transportation when the transport demand significantly exceeds the transport capacity due to consecutive holidays;
6. Measures necessary for the sale of tickets when a terminal operator is unable to sell tickets due to insolvent operation.
 Article 45 (Order to Use)
(1) Where a person that operates passenger transport business by setting routes on the area surrounding a terminal has not used such terminal as a place where his/her motor vehicles stop to pick up or drop off passengers, the relevant Mayor/Do Governor may order such person to use the terminal for the purpose of public convenience and improvement of transport networks for passenger transport business.
(2) Standards for the order to use a terminal issued by the Mayor/Do Governor pursuant to paragraph (1) shall be determined by Ordinance of the Ministry of Land, Infrastructure and Transport. <Amended by Act No. 11690, Mar. 23, 2013>
 Article 46 (Consignment Ticket Sales)
(1) Any terminal user shall consign the sales of tickets to a terminal operator: Provided, That if deemed necessary to serve passenger convenience, a transport business entity may directly sell tickets or consign the sales of tickets to a person other than a terminal operator, as prescribed by Ordinance of the Ministry of Land, Infrastructure and Transport. <Amended by Act No. 11690, Mar. 23, 2013>
(2) Where the sale of tickets are consigned pursuant to paragraph (1), commission on consignment sales shall be determined by mutual agreement between a transport business entity and a consignee of the sales of tickets.
 Article 47 (Relationship to Other Acts)
(1) Where a terminal operator obtains authorization to execute construction works pursuant to Article 38, he/she shall be deemed to have obtained the following permission or authorization on matters about which the relevant Mayor/Do Governor has consulted with the heads of related administrative agencies pursuant to paragraph (3): <Amended by Act No. 10599, Apr. 14, 2011; Act No. 12248, Jan. 14, 2014>
2. Permission for activities conducted within the urbanization adjustment area under Article 81 of the National Land Planning and Utilization Act;
3. Designation of the executor of a planned urban/Gun facility project under Article 86 of the National Land Planning and Utilization Act;
4. Authorization for an execution plan under Article 88 of the National Land Planning and Utilization Act;
5. Permission for execution of a road project under Article 36 of the Road Act or permission for occupancy and use of roads under Article 61 of the same Act;
6. Permission for opening private roads under Article 4 of the Private Road Act;
7. Permission for reburials under Article 27 (1) of the Act on Funeral Services, Etc.
8. Permission for execution of public sewerage projects under Article 16 of the Sewerage Act.
(2) Where a terminal operator has facilities confirmed under Article 38 (4) to manage the following business in person, he/she shall be deemed to have obtained permission thereon or to have filed a report or made registration with respect to the following matters: <Amended by Act No. 9432, Feb. 6, 2009>
1. Registration for opening large-scale stores under Article 8 of the Distribution Industry Development Act;
2. Permission for restaurant business (excluding sing-along pub business and entertainment drinking club business) under Article 37 of the Food Sanitation Act;
3. Registration of gas stations among petroleum sales business under Article 10 of the Petroleum and Alternative Fuel Business Act;
5. Registration of performance places under Article 9 of the Public Performance Act.
(3) Where the relevant Mayor/Do Governor intends to grant authorization for execution of construction works in accordance with Article 38 (1) or give facility confirmation pursuant to paragraph (4) of the said Article, he/she shall consult in advance with the head of the related administrative agency as to whether such authorization or confirmation is consistent with related statutes listed in the subparagraphs of paragraph (2).
(4) Where the relevant Mayor/Do Governor has granted authorization for execution of construction works pursuant to Article 38 (1) or has given facility confirmation pursuant to paragraph (4) of the said Article, he/she shall notify the head of an administrative agency related with statutes listed in the subparagraphs of paragraph (2) thereof within 15 days from the authorization date or the confirmation date.
 Article 48 (Provisions Applicable Mutatis Mutandis)
Articles 14 (excluding paragraph (2)), 15, and 16 (excluding paragraph (2)) shall apply mutatis mutandis to the transfer and acquisition of terminal business, merger of corporations, or succession, suspension, closure, etc. of business.
 Article 49 (Establishment and Management of Public Terminal)
(1) The Special Metropolitan City Mayor, a Metropolitan City Mayor, a Special Self-Governing City Mayor, a Special Self-Governing Province Governor, or the head of a Si/Gun may directly establish and manage any terminal only when no person intends to do so, notwithstanding the provisions of Article 36. <Amended by Act No. 11447, May 23, 2012>
(2) Matters necessary for the management and operation of any terminal directly established by the Special Metropolitan City Mayor, a Metropolitan City Mayor, a Special Self-Governing City Mayor, a Special Self-Governing Province Governor, or the head of a Si/Gun pursuant to paragraph (1) shall be determined by Municipal Ordinance of the relevant local government. <Amended by Act No. 11447, May 23, 2012>
CHAPTER IV-2 BUS TERMINAL BUSINESS
 Article 49-2 (Licenses, etc. for Passenger Transport Franchise Business)
(1) Any person who intends to operate passenger transport franchise business shall formulate a business plan and obtain a license from the Mayor/Do Governor, as prescribed by Ordinance of the Ministry of Land, Infrastructure and Transport: Provided, That where his/her passenger transport franchise business spans at least two Sis and Dos, he/she shall obtain a license from the Minister of Land, Infrastructure and Transport. <Amended by Act No. 11295, Feb. 1, 2012; Act No. 11690, Mar. 23, 2013>
(2) Where a transport business franchisor who has obtained a license prescribed in paragraph (1) intends to modify a business plan, he/she shall receive authorization from the Minister of Land, Infrastructure and Transport or the relevant Mayor/Do Governor, as prescribed by Ordinance of the Ministry of Land, Infrastructure and Transport: Provided, That a person who intends to change minor matters specified in Ordinance of the Ministry of Land, Infrastructure and Transport shall submit a report on the changed matters to the Minister of Land, Infrastructure and Transport or the relevant Mayor/Do Governor, as prescribed by Ordinance of the Ministry of Land, Infrastructure and Transport. <Amended by Act No. 11295, Feb. 1, 2012; Act No. 11690, Mar. 23, 2013>
(3) The Minister of Land, Infrastructure and Transport or the relevant Mayor/Do Governor shall notify a person who reported of whether or not he/she accepts the report within a period prescribed by Ordinance of the Ministry of Land, Infrastructure and Transport from the date when he/she received the report of change under the proviso to paragraph (2). <Newly Inserted by Act No. 14716, Mar. 21, 2017>
(4) Where the Minister of Land, Infrastructure and Transport or the relevant Mayor/Do Governor fails to notify a person who reported of whether or not he/she accepts the report or whether or not he/she extends the handling period prescribed in statutes relevant to handling of civil affairs within a period prescribed under paragraph (3), it shall be deemed that he/she accepts the report on the next day of the date when such period expires. <Newly Inserted by Act No. 14716, Mar. 21, 2017>
(5) A license for passenger transport franchise business prescribed in paragraph (1) or modification of a business plan prescribed in the main sentence of paragraph (2) shall satisfy standards prescribed by Ordinance of the Ministry of Land, Infrastructure and Transport. <Amended by Act No. 11690, Mar. 23, 2013>
[This Article Newly Inserted by Act No. 9733, May 27, 2009]
 Article 49-3 (Duties, etc. of Transport Business Franchisors and Transport Business Franchisees)
(1) Each transport business franchisor shall conscientiously perform the following matters for the purpose of smooth operation of passenger transport franchise business:
1. Fair traffic assignment to transport business franchisees;
2. Development and dissemination of efficient techniques for traffic assignment;
3. Establishment and operation of joint networks for smooth passenger transportation;
4. Development of new value-added service for passenger transportation.
(2) Each transport business franchisee shall conscientiously perform the following matters for the purpose of smooth operation of passenger transport franchise business:
1. Provision of transport service and value-added service thereof in a manner consistent with standards determined by a transport business franchisor;
2. Notification of motor vehicle location for smooth passenger transportation.
[This Article Newly Inserted by Act No. 9733, May 27, 2009]
 Article 49-4 (Terms and Conditions of Transport Franchising)
(1) Any person who has obtained a license for passenger transport franchise business pursuant to Article 49-2 (1) shall establish terms and conditions of transport franchising and file a report thereon with the Minister of Land, Infrastructure and Transport or the Mayor/Do Governor. The same shall apply where he/she modifies such terms and conditions of transport franchising. <Amended by Act No. 11295, Feb. 1, 2012; Act No. 11690, Mar. 23, 2013>
(2) The Minister of Land, Infrastructure and Transport or the relevant Mayor/Do Governor shall notify a person who reported of whether or not he/she accepts the report within a period prescribed by Ordinance of the Ministry of Land, Infrastructure and Transport from the date when he/she received such report or report of change under paragraph (1). <Newly Inserted by Act No. 14716, Mar. 21, 2017>
(3) Where the Minister of Land, Infrastructure and Transport or the relevant Mayor/Do Governor fails to notify a person who reported of whether or not he/she accepts the report or whether or not he/she extends the handling period prescribed in statutes relevant to handling of civil affairs within a period prescribed in paragraph (2), it shall be deemed that he/she accepts the report on the next day of the date when such period expires. <Newly Inserted by Act No. 14716, Mar. 21, 2017>
(4) Entries in terms and conditions of transport franchising under paragraph (1) and other necessary matters shall be determined by Ordinance of the Ministry of Land, Infrastructure and Transport. <Amended by Act No. 11690, Mar. 23, 2013>
[This Article Newly Inserted by Act No. 9733, May 27, 2009]
 Article 49-5 (Improvement Order)
The Minister of Land, Infrastructure and Transport and the relevant Mayor/Do Governor may order a transport business franchisor to take the following measures, if it is deemed necessary for ensuring safety while driving, keeping order of transportation, and promoting passenger convenience: <Amended by Act No. 11690, Mar. 23, 2013>
1. Change of terms and conditions of transport franchising;
2. Necessary measures for safe passenger transportation;
3. Notification concerning duties to disclose franchise disclosure documents, refund of franchise fees, entries in a franchise contract, renewal of a franchise contract, etc. pursuant to Articles 7, 10, 11 and 13 of the Fair Transactions in Franchise Business Act which apply mutatis mutandis under Article 49-8;
4. Other necessary matters concerning improvement of service provided by passenger transport franchise business, as prescribed by Presidential Decree.
[This Article Newly Inserted by Act No. 9733, May 27, 2009]
 Article 49-6 (Cancellation, etc. of Licenses for Passenger Transport Franchise Business)
(1) Where a transport franchisor falls under any of the following cases, the Minister of Land, Infrastructure and Transport or the Mayor/Do Governor may cancel his/her license, or issue an order to fully or partially suspend business operation for a fixed period of up to six months: Provided, That in cases falling under subparagraphs 2 and 6, his/her license shall be cancelled: <Amended by Act No. 11295, Feb. 1, 2012; Act No. 11690, Mar. 23, 2013; Act No. 13485, Aug. 11, 2015; Act No. 14716, Mar. 21, 2017>
1. Where he/she allows a person who has failed to acquire a qualification for driving service of passenger transport business provided for in Article 24 to engage in passenger transport;
2. Where he/she obtains a license granted under Article 49-2 (1) by fraud or other improper means;
3. Where he/she obtains authorization for the modification of a business plan prescribed in Article 49-2 (2) by fraud or other improper means;
3-2. Where he/she fails to obtain authorization for the modification of a business plan or to file a report on the modification thereof, in violation of Article 49-2 (2);
4. Where he/she ceases to satisfy licensing standards prescribed in Article 49-2 (5): Provided, That this shall not apply where he/she satisfies such standards within three months;
4-2. Where he/she fails to file a report on the terms and conditions of transport franchising or to file a report on the modification thereof, in violation of Article 49-4 (1);
5. Where he/she fails to comply with an improvement order issued under Article 49-5 without any justifiable grounds;
6. Where he/she falls under any subparagraph of Article 6 which applies mutatis mutandis under Article 49-7: Provided, That this shall not apply where any executive officer of a corporate entity falls under any subparagraph of Article 6 and it replaces relevant executive officer with a new one within three months;
6-2. Where he/she violates the duty to prohibit the use of a name prescribed in Article 12, in violation of the same Article that applies mutatis mutandis under Article 49-7;
6-3. Where he/she fails to file a report on transfer, acquisition, merger, or inheritance, in violation of Article 14 or 15 that applies mutatis mutandis under Article 49-7;
6-4. Where he/she fails to file a report on temporary closure or permanent closure of business, in violation of Article 16 that applies mutatis mutandis under Article 49-7;
7. Where he/she violates Articles 7, 9 through 11, 13 or 14 of the Fair Transactions in Franchise Business Act that apply mutatis mutandis under Article 49-8 (excluding where he/she has received an improvement order issued under Article 49-5);
8. Where he/she fails to comply with a business suspension order issued under this Article;
9. Deleted. <by Act No. 13485, Aug. 11, 2015>
(2) Standards and procedures for the cancellation of a license and business suspension order prescribed in paragraph (1) or other necessary matters shall be prescribed by Presidential Decree.
[This Article Newly Inserted by Act No. 9733, May 27, 2009]
 Article 49-7 (Provisions Applicable Mutatis Mutandis)
With respect to disqualification for passenger transport franchise business, prohibition of the use of name, transfer and acquisition of business, merger of corporations, inheritance, temporary closure or permanent closure of business, imposition of penalty surcharge, etc., Articles 6, 12, 14 (excluding paragraph (2)), 15, 16 (excluding paragraph (1)), and 88 shall apply mutatis mutandis.
[This Article Newly Inserted by Act No. 9733, May 27, 2009]
 Article 49-8 (Application Mutatis Mutandis of the Fair Transactions in Franchise Business Act)
With respect to the provision of information between transport business franchisors and transport business franchisees, refund of franchise fees, franchise contract, etc., Articles 7, 9 through 11, 13, and 14 of the Fair Transactions in Franchise Business Act shall apply mutatis mutandis. In such cases, "intending franchisee" shall be construed as "intending transport business franchisee"; "franchisee" shall be construed as "transport business franchisee"; "franchise headquarters", "franchise headquarters (including a franchise regional headquarters or franchise broker that engages in recruiting franchisees)" in Article 7 (1) of the same Act, and "franchise headquarters or business association comprised of franchise headquarters" in paragraph (3) of the same Article shall be construed as "transport business franchisor"; and "franchise fees under subparagraph 6 (a) and (b) of Article 2" in Article 10 (1) of the same Act shall be construed as "money paid to transport business franchisors in return for granting permission to use service marks, regardless of what the name and regardless of methods of payment".
[This Article Newly Inserted by Act No. 9733, May 27, 2009]
CHAPTER V PROMOTION OF PASSENGER TRANSPORT SERVICE
 Article 50 (Financial Support)
(1) Where it is deemed that a passenger transport service provider needs financial support to implement any of the following projects, the State may subsidize or finance some of the required funds for the relevant passenger transport service provider, as prescribed by Presidential Decree: <Amended by Act No. 9733, May 27, 2009; Act No. 11690, Mar. 23, 2013>
1. Upgrading of motor vehicles and modernization of a terminal;
2. Operation of unprofitable routes;
3. Expansion and improvement of common facilities and safety control facilities;
4. Replacement of obsolete motor vehicles;
5. Relocation of a terminal and expansion or improvement of its size, structure or equipment;
6. Expansion or improvement of facilities and equipment in order to improve the passenger transport service;
7. Installation or improvement of facilities and equipment required for passenger transport franchise business;
8. Expansion or improvement of supporting facilities and equipment for economical, environmentally friendly, and safe driving and management;
9. Other matters prescribed by Ordinance of the Ministry of Land, Infrastructure and Transport to promote the passenger transport service.
(2) In any of the following cases, the City/Do may subsidize or provide some of required funds to a passenger transport service provider. In such cases, matters necessary for the subjects and methods of subsidization or financing or the redemption of subsidies or loans shall be determined by Municipal Ordinance of the relevant City/Do: <Amended by Act No. 9733, May 27, 2009; Act No. 12377, Jan. 28, 2014; Act No. 14949, Oct. 24, 2017>
1. Where a passenger transport service provider implements any project falling under any subparagraphs of paragraph (1);
2. Where it is necessary to expand traffic safety facilities for passenger safety;
3. Where a bus system is improved to promote the use of public transport;
4. Where it is necessary to continue the operation of insolvent terminal business for the convenience of terminal clients;
5. Where it is necessary to restructure passenger transport business through permanent closure or reduction of the number of motor vehicles (limited to cases of passenger transport business prescribed by Presidential Decree);
6. Where a passenger transport service provider operates an on-demand passenger transport business referred to in Article 3 (1) 3;
7. Where facilities necessary for the rest of transport employees are installed or improved.
(3) Where a local government conducts each of the following business, the State may partially subsidize the required funds for the local government, as prescribed by Presidential Decree: <Newly Inserted by Act No. 14949, Oct. 24, 2017>
1. Where a local government compensates for the reduction of the number of motor vehicles operated in excess of a regional transport support plan prescribed in Article 5 (3);
2. Where a local government installs or improves facilities necessary for the rest of transport employees under Article 50 (2) 7.
(4) The Special Metropolitan City Mayor, a Metropolitan City Mayor, a Special Self-Governing Province Governor, or the head of a Si/Gun may subsidize all or any part of the amount corresponding to an increased amount, such as each of the following taxes imposed on oil, for transport business entities determined by Presidential Decree. In such cases, the criteria, methods, and procedures for the payment of subsidies shall be determined and publicly notified by the Minister of Land, Infrastructure and Transport: <Newly Inserted by Act No. 11295, Feb. 1, 2012; Act No. 11690, Mar. 23, 2013>
1. Education tax, traffic, energy and environment tax, and motor vehicle tax on driving of motor vehicles which are imposed on light oil, respectively, pursuant to Article 5 (1) of the Education Tax Act, Article 2 (1) 2 of the Traffic, Energy and Environment Tax Act, and Article 136 (1) of the Local Tax Act;
2. Individual consumption tax, education tax, and dues which are imposed on butane among petroleum gas, respectively, pursuant to Article 1 (2) 4 (f) of the Individual Consumption Tax Act, Article 5 (1) of the Education Tax Act, and Article 18 (2) 1 of the Petroleum and Alternative Fuel Business Act.
(5) The Special Metropolitan City Mayor, a Metropolitan City Mayor, a Special Self-Governing Province Governor, or the head of a Si/Gun may assist transport business entities prescribed by Presidential Decree with the expenses corresponding to tax, etc. under each of the following subparagraphs imposed to natural gases in whole or in part. In such cases, the standards, methods and procedures for paying subsidies shall be determined and announced by the Minister of Land, Infrastructure and Transport: <Newly Inserted by Act No. 14342, Dec. 2, 2016>
1. Individual consumption tax prescribed in Article 1 (2) 4 (g) of the Individual Consumption Tax Act;
2. Surcharges on import and retail petroleum imposed under Article 18 (2) 1 of the Petroleum and Alternative Fuel Business Act;
4. Value-added tax imposed under Article 4 of the Value-Added Tax Act.
 Article 51 (Use, etc. of Subsidies)
(1) No person who has received subsidies or loans pursuant to Article 50 shall use such subsidy or loan for purposes other than its original purposes.
(2) The Minister of Land, Infrastructure and Transport, the relevant Mayor/Do Governor, or the head of a Si/Gun shall supervise a person who has received a subsidy or loan pursuant to Article 50 for the proper use of such subsidies or loans. <Amended by Act No. 11295, Feb. 1, 2012; Act No. 11690, Mar. 23, 2013>
(3) Where a passenger transport service provider has received subsidies or loans under Article 50 by fraud or other improper means, the Minister of Land, Infrastructure and Transport, the relevant Mayor/Do Governor, or the head of a Si/Gun shall order the passenger transport service provider to return such subsidies or loans; where the passenger transport service provider fails to comply with such order, such subsidies or loans may be collected in the same manner as national or local taxes in arrears are collected. <Amended by Act No. 11295, Feb. 1, 2012; Act No. 11690, Mar. 23, 2013>
 Article 51-2 (Suspension of Payment of Fuel Subsidies)
Where a transport business entity falls under any of the following cases, the Special Metropolitan City Mayor, a Metropolitan City Mayor, a Special Self-Governing Province Governor, or the head of a Si/Gun shall suspend the payment of subsidies referred to in Article 50 (4) (hereinafter referred to as "fuel subsidy") for a period not exceeding one year: <Amended by Act No. 11690, Mar. 23, 2013>
1. Where he/she requests and receives a fuel subsidy by reporting on a longer distance or a bigger amount of fuels than actually operated or used;
2. Where he/she receives a fuel subsidy for oil used for any purpose other than those for passenger transport business;
3. Where he/she receives a fuel subsidy by applying a unit price for the type of oil different from that actually refueled or charged;
4. Where he/she fails to comply with an order for the submission of documents referred to in Article 79 that is issued in direct relation to the payment of fuel subsidies, or denies, avoids or hinders inspections or questions;
5. Matters determined by Ordinance of the Ministry of Land, Infrastructure and Transport, except as otherwise prescribed by subparagraphs 1 through 4.
[This Article Newly Inserted by Act No. 11295, Feb. 1, 2012]
 Article 51-3 (Suspension of Payment of Natural Gas Fuel Subsidies)
Where a transport business entity falls under any of the following cases, the Special Metropolitan City Mayor, a Metropolitan City Mayor, a Special Self-Governing Province Governor, or the head of a Si/Gun shall suspend the payment of subsidies referred to in Article 50 (5) (hereinafter referred to as "natural gas fuel subsidy") for a period not exceeding one year:
1. Where he/she requests and receives a natural gas fuel subsidy by reporting on a longer distance or a bigger amount of fuels than actually operated or used;
2. Where he/she receives a natural gas fuel subsidy for natural gas used for any purpose other than those for passenger transport business;
3. Where he/she receives a natural fuel subsidy by applying a unit price for the type of natural gas or oil different from that actually charged;
4. Where he/she fails to comply with an order for the submission of documents referred to in Article 79, which is issued in direct relation to the payment of natural gas fuel subsidies, or denies, avoids or hinders inspections or questions;
5. Matters determined by Ordinance of the Ministry of Land, Infrastructure and Transport, except as otherwise prescribed by subparagraphs 1 through 4.
[This Article Newly Inserted by Act No. 14342, Dec. 2, 2016]
 Article 51-4 (Payment of Monetary Rewards)
The Special Metropolitan City Mayor, a Metropolitan City Mayor, a Special Self-Governing Province Governor, or the head of a Si/Gun may grant a monetary reward to a person who has reported or informed on a person who falls under any of subparagraphs 1 through 3 and 5 of Article 51-2 and subparagraphs 1 through 3 and 5 of Article 51-3, as prescribed by the relevant municipal ordinance. <Amended by Act No. 14342, Dec. 2, 2016>
[This Article Newly Inserted by Act No. 11295, Feb. 1, 2012]
 Article 52 (Tax Reduction and Exemption)
The State shall reduce and exempt taxes for the smooth transport of passengers and promotion of passenger transport service on such terms and conditions as prescribed by the Restriction of Special Taxation Act.
CHAPTER VI PASSENGER TRANSPORT SERVICE PROVIDERS' ASSOCIATION
 Article 53 (Establishment of Associations)
(1) Passenger transport service providers may establish an association (hereinafter referred to as the "association") with authorization from the relevant Mayor/Do Governor for sound development of passenger transport service and the improvement of social standing of passenger transport service providers.
(2) An association shall be a legal entity.
(3) An association shall be duly formed upon completion of registration of its establishment at the site of its main office.
(4) In order to establish an association, at least 1/5 of the persons who are qualified for membership in the association, as promoters, shall prepare its articles of association with the consent of a majority of the persons qualified for membership in the association at its inaugural general meeting, and submit an application for authorization thereon to the relevant Mayor/Do Governor.
(5) The relevant Mayor/Do Governor shall notify an applicant of whether or not he/she grants the authorization within 14 days from the date when he/she received the application for the authorization granted under paragraph (4). <Newly Inserted by Act No. 14716, Mar. 21, 2017>
(6) Where the relevant Mayor/Do Governor fails to notify an applicant of whether or not he/she gives the authorization or whether or not he/she extends the handling period prescribed in statutes relevant to handling of civil affairs within a period prescribed in paragraph (5), it shall be deemed that he/she grants the authorization on the next day of the date when such period expires. <Newly Inserted by Act No. 14716, Mar. 21, 2017>
(7) Passenger transport service providers may join an association on such terms and conditions as the articles of association may determine.
(8) Except as otherwise provided for in this Act concerning associations, the provisions governing incorporated associations in the Civil Act shall apply mutatis mutandis.
 Article 54 (Articles of Association)
(1) The articles of association shall include:
1. Purposes;
2. Name;
3. Location of its office;
4. Matters concerning qualifications for association members;
5. Matters concerning general meetings;
6. Matters concerning directors;
7. Matters concerning business;
8. Matters concerning accounting;
9. Matters concerning dissolution;
10. Other important matters concerning the operation of an association.
(2) Where an association intends to change its articles of association, it shall obtain authorization from the relevant Mayor/Do Governor.
 Article 55 (Business)
An association shall operate the following business:
1. Promoting the sound development of passenger transport service, and pursuing common interests of passenger transport service providers;
2. Compiling and managing the statistics, and conducting collection and research study of foreign data necessary for the promotion and development of passenger transport service;
3. Providing training and education to employers and employees;
4. Guiding passenger transport service providers to improve their management;
5. Performing business delegated by the State or local governments;
6. Business incidental to those listed in subparagraphs 1 through 4.
 Article 56 (Order to Modify Articles of Association)
Where it is deemed that an association has failed to properly operate business under each subparagraph of Article 55, the relevant Mayor/Do Governor may order the association to take the following measures or other necessary measures:
1. Amendment to its articles of association;
2. Replacement of executive officers;
3. Dissolution.
 Article 57 (Supervision)
Business of an association shall be supervised by the relevant Mayor/Do Governor.
 Article 58 (Committee of Representatives)
(1) An association, consisting of at least 1,000 members, may have a committee of representatives substituted for the general meeting, as prescribed by its articles of association.
(2) The representatives shall be the members of an association.
(3) Matters necessary for composition and operation of the committee of representatives shall be prescribed by Presidential Decree.
 Article 59 (Federation)
(1) Associations may establish a federation (hereinafter referred to as the "Federation") with authorization from the Minister of Land, Infrastructure and Transport to attain their common purposes, as determined by Ordinance of the Ministry of Land, Infrastructure and Transport. <Amended by Act No. 11690, Mar. 23, 2013>
(2) Articles 53 (2) through (8) and 54 through 57 shall apply mutatis mutandis to the establishment, articles of association, business, order to modify articles of association, supervision, etc. of the Federation. In such cases, "relevant Mayor/Do Governor" shall be construed as "Minister of Land, Infrastructure and Transport". <Amended by Act No. 11690, Mar. 23, 2013; Act No. 14716, Mar. 21, 2017>
 Article 60 (Mutual Aid Activities Performed by Associations and Federation)
(1) The Federation and associations may perform mutual aid activities with the permission of the Minister of Land, Infrastructure and Transport, as prescribed by Presidential Decree. <Amended by Act No. 11690, Mar. 23, 2013>
(2) Articles 61 (5), 63, 64 (excluding its paragraph (1) 7), and 65 through 68 shall apply mutatis mutandis to contributions for mutual aid activities referred to in paragraph (1), an operating committee, scope of mutual aid activities, mutual aid agreements, reporting and inspection, improvement order, supervision and control over executive officers and employees of the Federation or associations who engage in management and operation of mutual aid, maintenance of financial soundness, and so on.
CHAPTER VII MUTUAL AID ASSOCIATIONS
 Article 61 (Establishment, etc. of Mutual Aid Associations)
(1) Passenger transport service providers (excluding any terminal operator; hereafter the same shall apply in this Article) may establish a mutual aid association by industry (hereinafter referred to as "mutual aid association") as prescribed by Presidential Decree, with authorization of the Minister of Land, Infrastructure and Transport, in order to provide support to enable association members to undertake independent economic activities through a mutual cooperative organization and to compensate for the losses incurred by a car accident of an association member. <Amended by Act No. 11690, Mar. 23, 2013>
(2) A mutual aid association shall be a corporation.
(3) A mutual aid association shall be duly formed upon completion of the registration of its establishment at the site of its main office.
(4) Passenger transport service providers may join a mutual aid association on such terms and conditions as its articles of association may determine.
(5) Members of a mutual aid association shall pay contributions necessary for mutual aid.
(6) Qualifications for membership, matters concerning executive officers, and other necessary matters for the operation of a mutual aid association shall be determined by its articles of association.
(7) Entries in articles of association and other necessary matters for the supervision over a mutual aid association shall be determined by Presidential Decree.
 Article 62 (Procedures for Granting Authorization on Establishment of Mutual Aid Association)
(1) To establish a mutual aid association, at least 10 percent of the persons who are qualified for membership in the mutual aid association, as promoters, and draft its articles of association at its inaugural general meeting with the consent of at least 200 persons who are qualified for membership in the mutual aid association, and then apply to the Minister of Land, Infrastructure and Transport for authorization thereon. <Amended by Act No. 11690, Mar. 23, 2013>
(2) In granting authorization referred to in paragraph (1), the Minister of Land, Infrastructure and Transport shall notify the public thereof. <Amended by Act No. 11690, Mar. 23, 2013>
 Article 63 (Operating Committee of Mutual Aid Association)
(1) A mutual aid association shall establish an operating committee to deliberate on and resolve issues relating to its mutual aid activities under Article 64 and supervise performance of such activities.
(2) Members of an operating committee shall be appointed from among mutual aid association members, experts in the fields of transport service, finance, insurance, accounting and law, competent public officials, and other interested parties in passenger transport service, and the number of committee members shall not exceed 25: Provided, That where the Federation performs mutual aid activities pursuant to Article 60, the number of members of an operating committee shall not exceed 35, including all the representatives of Si/Do associations. <Amended by Act No. 10673, May 19, 2011>
(3) Matters necessary for organization and operation of an operating committee shall be prescribed by Presidential Decree.
 Article 63-2 (Disqualification of Operating Committee Members)
(1) Any of the following persons shall be disqualified from becoming a member referred to in Article 63 (2): <Amended by Act No. 12377, Jan. 28, 2014; Act No. 13485, Aug. 11, 2015>
1. A minor or a person under adult guardianship or under limited guardianship;
2. A person declared bankrupt and not yet reinstated;
3. A person who is under suspension of the execution of his/her imprisonment without labor or greater punishment, declared by a court for violation of this Act or other finance-related statutes (including foreign statutes related to finance);
4. A person for whom three years have not elapsed since his/her imprisonment without labor or greater punishment declared by a court for violation of this Act or other finance-related statutes (including foreign statutes related to finance), was complete (including where the execution of such sentence is deemed complete) or exempted;
5. A person for whom three years have not elapsed since his/her punishment by a fine or greater punishment declared by a court for the business affairs of a mutual aid association referred to in this Act, was complete (including where the execution of such sentence is deemed complete) or exempted;
6. A person for whom three years have not elapsed after he/she has received the disposition of disciplinary action or dismissal referred to in Article 67.
(2) Where a member referred to in Article 63 (2) falls under the subparagraphs of paragraph (1), he/she shall lose his/her qualification, starting from the relevant day.
(3) The Minister of Land, Infrastructure and Transport may request the Commissioner of the National Police Agency to inquire into data on criminal records referred to in paragraph (1) 3 through (5), and provide such data to a mutual aid association. <Amended by Act No. 11690, Mar. 23, 2013>
[This Article Newly Inserted by Act No. 11447, May 23, 2012]
 Article 64 (Mutual Aid Activities)
(1) A mutual aid association shall engage in the following activities:
1. Mutual aid assistance in liability for damage caused by an accident of a member's commercial motor vehicle;
2. Mutual aid assistance in compensation for damage to a member's commercial motor vehicle incurred due to an accident that occurs while the member owns, uses, and manages such motor vehicle;
3. Mutual aid assistance in compensation for a transport employee's physical injury suffered from an accident that occurs while the transport employee owns, uses and manages a member's commercial motor vehicle;
4. Mutual aid assistance in compensation for losses of an employee of a mutual aid association sustained due to an occupational accident;
5. Establishment, operation, and management of joint use facilities and the promotion of members' convenience and welfare;
6. Research and study for improving the management of passenger transport service;
7. Activities incidental to those listed in subparagraphs 1 through 6, which are determined by the articles of association.
(2) Where a mutual aid association intends to perform mutual aid activities referred to in paragraph (1) 1 through 4, it shall establish mutual aid agreements and obtain authorization thereon from the Minister of Land, Infrastructure and Transport. The same shall apply where the mutual aid association intends to modify authorized matters. <Amended by Act No. 11690, Mar. 23, 2013>
(3) Mutual aid agreements under paragraph (2) shall include matters necessary for the performance of mutual aid activities, such as the scope of mutual aid activities, details of mutual aid contract, contribution, mutual aid funds, and the appropriation and accumulation of a liability reserve and payment reserve to cover mutual aid funds.
(4) A mutual aid association shall appropriate and accumulate liability reserve and payment reserve for each activity listed in paragraph (3) at the end of each accounting period.
(5) The Insurance Business Act (excluding Article 208) shall not apply to mutual aid activities referred to in paragraph (1) 1 through 4.
 Article 65 (Submission, etc. of Report)
(1) If deemed necessary, the Minister of Land, Infrastructure and Transport may take the following measures for an mutual aid association: <Amended by Act No. 11690, Mar. 23, 2013>
1. Issuing an order to the mutual aid association to compensate for losses of motor vehicle accident victims;
2. Issuing an order to the mutual aid association to submit a written report on the management of mutual aid funds and other matters concerning mutual aid;
3. Having public officials under his/her control engage in investigations into the present status of business operations or accounting of the mutual aid association;
4. Having public officials under his/her control engage in inspection of books or other documents of the mutual aid association.
(2) In conducting investigation or inspection under paragraph (1), a written plan that includes details, scheduled date and time, reasons, etc. of such investigation or inspection shall be notified to the mutual aid association by not later than seven days before such investigation or inspection: Provided, That in cases of emergency or where it is deemed that any prior notification might cause the destruction of any evidence to make it impossible to attain the purposes of such investigation or inspection, such notification shall not be required.
(3) Any public official who conducts an investigation or inspection pursuant to paragraph (1) shall produce a certificate indicating his/her authority to the relevant persons and deliver, at the time of entry, a document that states the name of person making entry, time to enter, purposes of entry, etc. to the relevant persons.
 Article 66 (Business Improvement Order to Mutual Aid Association)
Where it is deemed that the interests of motor vehicle accident victims and mutual aid association members are likely to be undermined by inappropriate operation of business or bad assets of a mutual aid association, the Minister of Land, Infrastructure and Transport may order such mutual aid association to take the following measures: <Amended by Act No. 11690, Mar. 23, 2013>
1. Changing its methods of business practice;
2. Changing depository institutions of its assets;
3. Changing book values of its assets;
4. Accumulating reserves for bad assets;
5. Writing off assets deemed worthless as losses.
 Article 67 (Disciplinary Action, etc. against Executive Officers or Employees of Mutual Aid Association)
Where an executive officer or employee of a mutual aid association falls under any of the following cases and is likely to perform mutual aid activities in an unsound manner, the Minister of Land, Infrastructure and Transport may request the mutual aid association to dismiss, or take disciplinary action against, such executive officer or employee or to correct the relevant violations: <Amended by Act No. 11690, Mar. 23, 2013>
1. Where he/she conducts business, in violation of the mutual aid agreements under Article 64 (2);
2. Where he/she fails to comply with an improvement order under Article 66;
3. Where he/she fails to comply with guidelines for financial soundness under Article 68.
 Article 68 (Maintenance of Financial Soundness)
(1) A mutual aid association shall comply with such guidelines for financial soundness as prescribed by Presidential Decree with regard to the following matters to ensure solvency of the mutual aid association and soundness in business management:
1. Matters concerning adequacy of capital;
2. Matters concerning soundness of assets;
3. Matters concerning liquidity.
(2) Where it is deemed that the mutual aid association is likely to undermine soundness in business management due to a failure to comply with the guidelines under paragraph (1), the Minister of Land, Infrastructure and Transport may order such mutual aid association to increase capital or limit ownership of risky assets, such as stocks, as prescribed by Presidential Decree. <Amended by Act No. 11690, Mar. 23, 2013>
 Article 69 (Relationship to Other Acts)
With respect to mutual aid associations, except as provided for in this Act, the provisions relating to incorporated corporation in the Civil Act and the provisions of Part III, Chapter IV, Section 7 of the Commercial Act shall apply mutatis mutandis.
CHAPTER VIII DISPUTE MEDIATION FOR MUTUAL AID
 Article 70 (Mutual Aid Dispute Mediation Committee)
(1) There is hereby established a Mutual Aid Dispute Mediation Committee (hereinafter referred to as the "Committee") under the Ministry of Land, Infrastructure and Transport to mediate disputes between car accident victims or other interested parties and the following associations: <Amended by Act No. 11690, Mar. 23, 2013>
1. Associations that engage in mutual aid activities under Article 60 and their Federation;
2. Mutual aid associations under Article 61;
3. Any person who performs mutual aid activities business pursuant to Article 51 of the Trucking Transport Business Act.
(2) The Committee shall mediate the following disputes in response to a request from parties involved in such disputes:
1. Dispute relating to a contract for mutual aid;
2. Dispute relating to the payment of mutual aid payouts;
3. Disputes relating to the adjustment of a loss suffered by a victim in a car accident;
4. Dispute for which an application may be filed with the Committee for mediation in accordance with other statutes;
5. Dispute over matters prescribed by Presidential Decree with respect to mutual aid.
 Article 71 (Composition, etc. of the Committee)
(1) The Committee shall be comprised of not more than 15 members, including one chairperson.
(2) Members of the Committee shall be commissioned by the Minister of Land, Infrastructure and Transport from among the following persons: <Amended by Act No. 11690, Mar. 23, 2013>
1. A person who serves or has served as associate professor or higher, of jurisprudence in colleges or universities prescribed by the Higher Education Act;
2. A person who is qualified as a judge, prosecutor or lawyer;
3. A doctor who has qualifications for medical specialist;
4. A person who serves or has served as executive officer of the Korea Consumer Agency under the Framework Act on Consumers or the consumers' organization registered under Article 29 of the same Act;
5. A person who has at least 15 years of work experience in a traffic-related institution or a traffic-related organization;
6. A person who has abundant knowledge and experience in the field of traffic, traffic-related laws or loss adjustment.
(3) The Chairperson shall be appointed from among members of the Committee.
(4) Members of the Committee shall serve a two-year term and may be recommissioned.
(5) Members of the Committee, who are not public officials, shall be deemed public officials in applying any penalty provision referred to in Articles 127 and 129 through 132 of the Criminal Act. <Newly Inserted by Act No. 13485, Aug. 11, 2015>
(6) Matters necessary for the organization and management for the operation and conduct of administrative affairs of the Committee shall be determined by Presidential Decree.
 Article 71-2 (Exclusion, Challenge, and Abstention of Members)
(1) Any of the following members of the Committee shall be excluded from deliberations and decisions of the Committee:
1. Where a member or his/her spouse or former spouse is a party (including executive officers, if the party is a corporation, organization, etc.; hereafter the same shall apply in this subparagraph and subparagraph 2) to the relevant agenda item or is a joint right holder or obligor with a party in an agenda item;
2. Where a member is or was a relative of a party to the relevant agenda item;
3. Where a member has testified, made a statement, provided advice, or conducted an appraisal in relation to the relevant agenda item;
4. Where a member or a corporation, organization, etc. to which a member belongs, is or was an agent for a party to the relevant agenda item;
5. Where a member has been involved in a disposition or omission that gives rise to the relevant agenda item.
(2) Where the circumstances indicate that it would be unlikely to expect fair deliberations and decisions of a member of the Committee, a party in the relevant agenda item may file a request for a challenge to the member with the Committee, and the Committee shall make a decision on such request by resolution. In such cases, the challenged member shall abstain from such resolution.
(3) Where a member of the Committee constitutes grounds for exclusion specified in any subparagraph of paragraph (1), he/she shall voluntarily abstain from all deliberations and decisions on the relevant agenda item.
[This Article Newly Inserted by Act No. 12982, Jan. 6, 2015]
 Article 72 (Procedures for Mediation, etc.)
(1) Where the Committee receives any request for dispute mediation, it shall notify, without delay, the counterpart of details of such request.
(2) The Committee shall prepare a draft mediation within 30 days after the date on which a request for dispute mediation has been filed: Provided, That where unavoidable circumstances are in existence, the Committee may extend a preparation period within 30 days with resolution.
(3) Where the Committee extends the period under the proviso to paragraph (2), it shall notify the parties involved in the dispute of details and reasons thereof.
 Article 73 (Refusal and Notice of Mediation)
(1) When it is deemed inappropriate for the Committee to mediate a dispute in light of its nature or an application filed for mediation is deemed to seek improper objectives, the Committee may refuse such mediation. In such cases, the Committee shall notify the applicant of grounds therefor.
(2) When the parties concerned institute a suit, the Committee shall suspend the mediation and notify the parties concerned.
 Article 74 (Effect, etc. of Mediation)
(1) The Committee shall present a draft mediation to both parties immediately after the preparation of such draft mediation.
(2) Both parties shall, upon receiving the draft mediation referred to in paragraph (1), notify the Committee as to whether they accept it within 15 days from the date of receipt.
(3) If both parties accept the draft mediation, the Committee shall prepare, without delay, a mediation record, and the chairperson of the Committee and both parties shall seal or sign on the record.
(4) If both parties accept the draft mediation, the parties are deemed have to reach an agreement consistent with the mediation record.
CHAPTER IX SUPPLEMENTARY PROVISIONS
 Article 75 (Delegation of Authority)
(1) The Minister of Land, Infrastructure and Transport may delegate part of his/her authority granted under this Act to the relevant Mayor/Do Governor, as prescribed by Presidential Decree. <Amended by Act No. 11690, Mar. 23, 2013>
(2) Upon receipt of the approval of the Minister of Land, Infrastructure and Transport, the relevant Mayor/Do Governor may re-delegate part of his/her authority delegated by the Minister of Land, Infrastructure and Transport pursuant to paragraph (1) to the head of the relevant Si/Gun/Gu. <Amended by Act No. 11690, Mar. 23, 2013>
 Article 76 (Entrustment, etc. of Authority)
(1) The Minister of Land, Infrastructure and Transport or the relevant Mayor/Do Governor may entrust part of his/her authority granted under this Act to associations, their Federation, mutual aid associations, the Korea Transportation Safety Authority established under the Korea Transportation Safety Authority Act, or specialized inspection institutions determined by Presidential Decree, as prescribed by Presidential Decree. <Amended by Act No. 11690, Mar. 23, 2013; Amended by Act No. 14939, Oct. 24, 2017>
(2) Executive officers and employees of associations, their Federation, mutual aid associations, the Korea Transportation Safety Authority established under the Korea Transportation Safety Authority Act, or specialized inspection institutions, who engage in business affairs entrusted under paragraph (1), shall be construed as public officials for the purposes of any penalty provisions of Articles 129 through 132 of the Criminal Act. <Amended by Act No. 14939, Oct. 24, 2017>
 Article 77 (Consultations on Standards and Rates for Charges or Fares)
Where the Mayor/Do Governor to whom the authority to determine the standards and rates for charges or fares under Article 8 has been delegated by the Minister of Land, Infrastructure and Transport pursuant to Article 75 (1) determines the standards and rates for charges or fares, he/she shall be deemed to have consulted thereon with the Minister of Strategy and Finance pursuant to Article 4 (2) of the Price Stabilization Act. <Amended by Act No. 11690, Mar. 23, 2013>
 Article 78 (Consultations, Conciliation, etc.)
(1) Where changes in a business plan, improvement order, adjustment of business areas, etc. of passenger transport business includes at least two Cities/Dos, the Mayor/Do Governor shall consult thereon with the relevant Mayors/Do Governors, as prescribed by Ordinance of the Ministry of Land, Infrastructure and Transport. In such cases, where such consultation fails to produce a satisfactory result, an application for conciliation shall be submitted to the Minister of Land, Infrastructure and Transport. <Amended by Act No. 11690, Mar. 23, 2013; Act No. 12377, Jan. 28, 2014>
(2) Where the Minister of Land, Infrastructure and Transport receives an application referred to in paragraph (1), he/she shall notify the relevant Mayor/Do Governor thereof after conciliation, as prescribed by Ordinance of the Ministry of Land, Infrastructure and Transport, or may directly perform as determined in conciliation if such Mayor/Do Governor fails to comply with it as so determined. <Amended by Act No. 11690, Mar. 23, 2013>
(3) Matters necessary for application procedures for conciliation referred to in paragraph (1) shall be determined by Ordinance of the Ministry of Land, Infrastructure and Transport. <Amended by Act No. 11690, Mar. 23, 2013>
 Article 79 (Reporting, Inspections, etc.)
(1) If deemed necessary, the Minister of Land, Infrastructure and Transport or the relevant Mayor/Do Governor may order a passenger transport service provider to submit reports or documents on his/her business or matters relating to the ownership or use of motor vehicles. <Amended by Act No. 11690, Mar. 23, 2013>
(2) If deemed necessary, the Minister of Land, Infrastructure and Transport or the relevant Mayor/Do Governor may assign a public official under his/her control to inspect books, documents, or other articles of a passenger transport service provider or a transport employee, or to ask the interested party a question. <Amended by Act No. 11690, Mar. 23, 2013>
(3) In cases of paragraph (2), any public official shall carry a certificate indicating his/her authority and produce it to the relevant person.
 Article 80 (Fees)
Any person who files a report or an application for a license, registration, permission, or authorization under this Act shall pay a certain fee prescribed by Ordinance of the Ministry of Land, Infrastructure and Transport: Provided, That where the Minister of Land, Infrastructure and Transport entrusts his/her authority pursuant to Article 76 (1), a certain fee determined by the entrusted agency shall be paid to the entrusted agency. <Amended by Act No. 11690, Mar. 23, 2013>
 Article 81 (Prohibition against Commercial Transport by Non-commercial Motor Vehicles)
(1) No person shall provide or rent motor vehicles other than commercial motor vehicles (hereinafter referred to as "non-commercial motor vehicles"), with compensation (including expenses incurred in operating a motor vehicle; hereafter the same shall apply in this Article) for transport purpose, and no person shall arrange such activities: Provided, That, in any of the following cases, a person may provide or rent motor vehicles for personal use with compensation for transport purpose, or may arrange such activities: <Amended by Act No. 11690, Mar. 23, 2013; Act No. 13376, Jun. 22, 2015; Act No. 14716, Mar. 21, 2017>
1. Where people share the use of a passenger vehicle for commuting;
2. Where the relevant Special Self-Governing City Mayor, Special Self-Governing Province Governor, or the head of the relevant Si/Gun/Gu (referring to the head of an autonomous Gu; hereinafter the same shall apply) grants permission for commercial transport by non-commercial motor vehicles due to a natural disaster, emergency transport, operation for educational purposes, or any other grounds prescribed by Ordinance of the Ministry of Land, Infrastructure and Transport.
(2) A Special Self-Governing City Mayor, a Special Self-Governing Province Governor, or the head of the relevant Si/Gun/Gu shall notify an applicant of whether or not he/she gives the authorization within ten days from the date when he/she received the application for permission granted under paragraph (1) 2. <Newly Inserted by Act No. 14716, Mar. 21, 2017>
(3) Where a Special Self-Governing City Mayor, a Special Self-Governing Province Governor, or the head of the relevant Si/Gun/Gu fails to notify an applicant of whether or not he/she grants permission or whether or not he/she extends the handling period prescribed in statutes relevant to handling of civil affairs within a period prescribed in paragraph (2), it shall be deemed that he/she grants permission on the next day of the date when such period expires. <Newly Inserted by Act No. 14716, Mar. 21, 2017>
(4) The subject matters and period of permission for commercial transport referred to in paragraph (1) 2 shall be determined by Ordinance of the Ministry of Land, Infrastructure and Transport. <Amended by Act No. 11690, Mar. 23, 2013>
 Article 82 (Prohibition against Operation of Routes by Non-commercial Motor Vehicles)
(1) No person shall operate a non-commercial motor vehicle by fixing routes for the purpose of attracting passengers, or arrange such activities: Provided, That in any of the following cases, any person may operate a non-commercial motor vehicle by fixing routes or arrange such activities: <Amended by Act No. 10789, Jun. 7, 2011; Act No. 13376, Jun. 22, 2015; Act No. 14716, Mar. 21, 2017>
1. Where a non-commercial motor vehicle is operated for the users of schools, educational institutions, kindergartens, day care centers prescribed in the Infant Care Act, hotels, educational, cultural, artistic and sports facilities (excluding any facility affiliated with superstores prescribed in subparagraph 3 of Article 2 of the Distribution Industry Development Act), religious facilities, financial institutions, or hospitals;
2. Where the relevant Special Self-Governing City Mayor, Special Self-Governing Province Governor or the head of the relevant Si/Gun/Gu grants permission for the operation of routes by non-commercial motor vehicles on the grounds that it is necessary for areas without public means of transportation or on grounds specified in Presidential Decree.
(2) Matters necessary for the subjects, requirements, etc. of permission granted under paragraph (1) 2 shall be determined by Ordinance of the Ministry of Land, Infrastructure and Transport. <Amended by Act No. 11690, Mar. 23, 2013>
 Article 83 (Restrictions on or Prohibition against Use of Non-commercial Motor Vehicles)
(1) If a user of a non-commercial motor vehicle falls under any of the following cases, a Special Self-Governing City Mayor, a Special Self-Governing Province Governor or the head of a Si/Gun/Gu may restrict or prohibit the use of his/her non-commercial motor vehicle by specifying a time limit of up to six months: <Amended by Act No. 11295, Feb. 12, 2012; Act No. 14716, Mar. 21, 2017>
1. Where he/she operates the passenger transport business using a non-commercial motor vehicle;
2. Where he/she commercially uses or rents a non-commercial motor vehicle for transport without permission referred to in Article 81 (1) 2.
(2) Article 89 shall apply mutatis mutandis where a Special Self-Governing City Mayor, a Special Self-Governing Province Governor or the head of a Si/Gun/Gu prohibits the use of a non-commercial motor vehicle pursuant to paragraph (1). <Amended by Act No. 11295, Feb. 1, 2012; Act No. 14716, Mar. 21, 2017>
 Article 84 (Age Limits, etc. for Motor Vehicles)
(1) No motor vehicle used for passenger transport service shall exceed the age limits (hereinafter referred to as "age limits for motor vehicles") and limits on mileage determined by Presidential Decree, in consideration of the types of the relevant motor vehicle and passenger transport service: Provided, That the relevant Mayor/Do Governor may extend age limits for motor vehicles by a maximum of two years, based on driving circumstances of motor vehicles used for the relevant City/Do passenger transport service on condition that safety requirements prescribed by Presidential Decree be satisfied. <Amended by Act No. 12645, May 21, 2014>
(2) Motor vehicles appropriated for obtaining a license or registration for passenger transport service, for increasing the number of motor vehicles, or for operating motor vehicles substituted for other motor vehicles (referring to the substitution of motor vehicles for other motor vehicles, etc. which exceed the age limits for motor vehicles or limits on mileage) shall not exceed the age limits prescribed by Presidential Decree, of not exceeding three years, based on the types of motor vehicles and passenger transport service (hereinafter referred to as "age limits for appropriated motor vehicles"): Provided, That the same shall not apply to any of the following cases: <Amended by Act No. 11447, May 23, 2012; Act No. 12645, May 21, 2014; Act No. 14342, Dec. 2, 2016; Act No. 14949, Oct. 24, 2017>
1. Where a person who has obtained a license or registration for route passenger transport business obtains a license or registration for the change of the business type without changing his/her motor vehicles within the scope of route passenger transport business;
2. Where a route passenger transport business entity and area-passenger transport business entity prescribed by Presidential Decree substitutes the motor vehicles used for passenger transport business for which age limits do not exceed six years and are lower than those of the existing motor vehicles for the motor vehicles for which age limits expire;
3. Where a passenger transport service provider re-registers a motor vehicle used for passenger transport service, the registration of which was cancelled due to any of the reasons referred to in Article 13 (7) of the Motor Vehicle Management Act, after it passes a provisional inspection referred to in Article 43 (1) 4 of the Motor Vehicle Management Act: Provided, That motor vehicles exceeding the age limits shall be excluded herefrom;
4. Where the battery of an electric vehicle referred to in subparagraph 3 of Article 2 of the Act on Promotion of Development and Distribution of Environment-Friendly Motor Vehicles or a fuel cell vehicle referred to in subparagraph 6 of Article 2 of the same Act is replaced with a new one: Provided, that motor vehicles exceeding the age limits shall be excluded herefrom.
(3) Where it is deemed particularly impracticable to supply motor vehicles due to inevitable causes, such as the stoppage of motor vehicle manufacture and assembly or the delay in delivery, operating a motor vehicle exceeding the age limits for motor vehicles prescribed in paragraph (1) within six months, may be allowed by the Mayor/Do Governor. <Amended by Act No. 11690, Mar. 23, 2013; Act No. 12377, Jan. 28, 2014>
(4) Matters necessary for the age limits for motor vehicles and requirements for their extension under paragraph (1) and the base date of and calculating method for the age limits for appropriated motor vehicles prescribed in paragraph (2) shall be prescribed by Presidential Decree.
 Article 85 (Cancellation, etc. of Licenses)
(1) Where a passenger transport service provider falls under any of the following cases, the Minister of Land, Infrastructure and Transport or the relevant Mayor/Do Governor (limited to cases of terminal business, car rental business, and passenger transport business prescribed by Presidential Decree) may cancel his/her license, permission, registration, or authorization or issue an order to fully or partially suspend business operation for a fixed period of up to six months or an order to change his/her business plan to close routes or reduce the number of motor vehicles in operation: Provided, That in cases falling under subparagraphs 5, 8, 39 and 41, his/her license or registration shall be cancelled: <Amended by Act No. 9733, May 27, 2009; Act No. 11295, Feb. 1, 2012; Act No. 11447, May 23, 2012; Act No. 11690, Mar. 23, 2013; Act No. 12020, Aug. 6, 2013; Act No. 12377, Jan. 28, 2014; Act No. 12645, May 21, 2014; Act No. 12982, Jan. 6, 2015; Act No. 14716, Mar. 21, 2017; Act No. 14949, Oct. 24, 2017>
1. Where he/she fails to comply with matters of a license, permission or authorization without any justifiable grounds;
2. Where he/she impairs convenient traffic for citizens due to uncertainty of operating business, marked aggravation of financial status, or inappropriateness for continued business for any other cause;
3. Where he/she causes many causalities due to a serious traffic accident or frequent traffic accidents;
4. Where he/she rents a third person a motor vehicle for passenger transport business licensed or registered under Article 4;
5. Where he/she obtains or registered a license (including a license for changed matters) for passenger transport business, car rental business or terminal business prescribed in Article 4, 28 or 36 by fraud or other improper means;
6. Where he/she operates his/her business in violation of matters of a license or registration under Article 4, 28, or 36, such as scope of business type, routes, transport lines, business areas, scope of business, and license period (limited to restricted license);
7. Where he/she fails to meet licensing or registration standards for passenger transport business, car rental business, or terminal business prescribed in Article 5, 29 or 37: Provided, That this shall not apply where he/she meets such standards within three months;
8. Where a transport business entity, car rental business entity, or terminal operator falls under any subparagraph of Article 6: Provided, That this shall not apply where a transport business entity, car rental business entity, or terminal operator, which is a corporate entity, replaces its executive officer who falls under any subparagraph of Article 6 with a new executive officer within three months, or where a person who has inherited transport business, car rental business, or terminal business, transfers such business to a third person within 60 days from the date of the deceased person's death;
9. Where he/she fails to commence transport service by a deadline or within a period determined by the Minister of Land, Infrastructure and Transport or the relevant Mayor/Do Governor, in violation of Article 7;
10. Where he/she fails to file a report on charges or fares or a report on change thereof, has received unfair charges, or has refused to transport free of charge children under six years of age at least three times a year, in violation of Article 8;
11. Where he/she fails to file a report on terms and conditions of transport or rental terms and conditions or a report on amendment thereto or fails to comply with such terms and conditions, in violation of Article 9 or 31;
12. Where he/she changes a business plan without obtaining authorization, making registration or submitting a report, in violation of Article 10 (including cases applicable mutatis mutandis under Article 35);
13. Where he/she violates the prohibition against use of a name prescribed in Article 12 (including cases applicable mutatis mutandis under Article 35);
14. Where he/she entrusts the management of passenger transport business without submitting a report or entrusted the management of passenger transport business to a person who is not a transport business entity, in violation of Article 13;
15. Where he/she transfers or acquires passenger transport business or consolidates corporations without obtaining authorization or submitting a report, in violation of Article 14 (including cases applicable mutatis mutandis under Articles 35 and 48);
16. Where he/she temporarily shuts down or permanently closes down his/her passenger transport business without obtaining permission or submitting a report or fails to recommence the business after the period of temporary closure expires, in violation of Article 16 (including cases applicable mutatis mutandis under Articles 35 and 48);
17. Where he/she fails to indicate a name, sign or other matters on the outside of a motor vehicle used for transport business at least three times a year, in violation of Article 17;
18. Where he/she transports a parcel, other than parcels he/she is allowed to transport pursuant to Article 18 (1) and (2), or fails to comply with the order to prohibit transport of parcels prescribed in Article 18 (3);
19. Where he/she fails to observe matters prescribed in Article 21 (1) at least three times within one year after the date when he/she was subject to a disposition imposing an administrative fine due to a failure to observe such matters;
20. Where he/she allows a person who fails to meet requirements for transport employees to engage in driving service, in violation of Article 21 (2);
20-2. Where he/she becomes at least two transport business franchisees, in violation of Article 21 (3);
20-3. Where he/she fails to change his/her trade name or to submit a report on change of his/her trade name, in violation of Article 21 (4);
20-4. Where he/she fails to install airbags at the driver's seat of his/her motor vehicle and the seat adjacent thereto, in violation of Article 21 (8);
20-5. Where he/she fails to file a report on operational information or operates a commercial motor vehicle without attaching a certificate of operational records thereto, in violation of Article 21 (10);
20-6. Where he/she fails to guarantee break time, in violation of Article 21 (11);
21. Where he/she fails to observe matters prescribed in Article 21 (12);
22. Where he/she fails to comply with an improvement order or operation order under Article 23, 33 or 44;
23. Where he/she fails to take necessary measures for training of transport employees prescribed in Article 25 (2);
24. Where he/she fails to satisfy the registration requirements prescribed in Article 29 or commence the business within the grace period for registration made under Article 28;
25. Where he/she entrusts the management of car rental business without obtaining permission therefor or entrusts the management of car rental business to a person who is not a car rental business entity, in violation of Article 32;
26. Where he/she uses his/her commercial motor vehicles for passenger transport with compensation or engages in brokering such transport, in violation of Article 34 (3);
27. Where he/she executes construction works for terminal facilities without obtaining authorization (including authorization for changed matters) granted under Article 38 (1) or fails to complete such construction works by a designated deadline;
28. Where he/she starts to use a terminal without obtaining facility confirmation prescribed in Article 38 (4), in violation of Article 39;
29. Where he/she fails to start to use a terminal by a deadline designated by the relevant Mayor/Do Governor without good cause, in violation of Article 39;
30. Where he/she enforces the terms and conditions of use of a terminal without submitting a report or amended report, in violation of Article 40;
31. Where he/she fails to comply with observations for a terminal operator prescribed in Article 42 (1) or fails to comply with a suspension order or corrective order issued under paragraph (3) of the same Article;
32. Where he/she changes the location, size, structure or equipment of a terminal without obtaining authorization for changed matters prescribed in Article 43;
32-2. Where he/she uses a subsidy or loan referred to in Article 50 for purposes, other than its original purposes;
33. Where he/she fails to submit a report or documents prescribed in Article 79 (1) at least three times a year, or submits a false report or false documents;
34. Where he/she rejects, interferes with or evades an inspection conducted under Article 79 (2), fails to answer a question, or makes a false statement;
35. Where he/she violates the restriction on or prohibition against the use of a noncommercial motor vehicle prescribed in Article 83;
36. Where he/she operates motor vehicles beyond the age limits for motor vehicles or mileage prescribed in Article 84: Provided, That this shall not apply where any motor vehicle is operated beyond the age limits for motor vehicles prescribed in paragraph (3) of the same Article;
37. In cases of passenger transport business prescribed by Presidential Decree, if the deriver's license of a transport employee has been cancelled or the qualifications of a transport employee have been revoked because such employee falls under Article 87 (1) 2 or 3;
38. Where he/she violates the conditions of a license, permission or authorization granted under this Act;
39. Where he/she engages in his/her business during a suspension period of business, in violation of a business suspension order issued under this Article;
40. Where he/she fails to comply with an order to change a business plan to close routes, reduce the number of motor vehicles, etc. under this Article;
41. Where a transport business entity (limited to where a person engages in a passenger transport business with one motor vehicle and directly engages in driving service) is sentenced to imprisonment without labor or greater punishment for filing fraudulent or improper insurance claim in connection with a traffic accident and such sentence is made final and conclusive.
(2) Serious traffic accidents referred to in paragraph (1) 3 mean traffic accidents which cause casualties in excess of the number of those prescribed by Presidential Decree on only one occasion, and frequent traffic accidents referred to in paragraph (1) 3 mean traffic accidents with casualties, the frequency or index of which (referring to the ratio of the number of traffic accidents to the number of motor vehicles owned by a passenger transport service provider) is prescribed by Presidential Decree.
(3) Matters necessary for standards, procedures, etc. for dispositions issued under paragraph (1) shall be prescribed by Presidential Decree.
(4) Where a transport business entity prescribed by Presidential Decree falls under any of the following cases, the relevant Mayor/Do Governor may assign demerit points to him/her according to the type and degree of such offenses as prescribed by Presidential Decree, or where he/she reaches or exceeds demerit point threshold during a period specified by Presidential Decree, the Minister of Land, Infrastructure and Transport or the relevant Mayor/Do Governor may cancel his/her license or issue an order to change his/her business plan to reduce the number of motor vehicles in operation: <Newly Inserted by Act No. 9733, May 27, 2009; Act No. 11690, Mar. 23, 2013; Act No. 12377, Jan. 28, 2014>
1. Where he/she receives a disposition issued under this Act, in violation of Article 21;
2. Where a transport business entity who directly engages in driving service receives a disposition issued under this Act, in violation of Article 26;
3. Where a transport employee employed by a transport business entity receives a disposition issued under this Act, in violation of Article 26.
 Article 86 (Hearings)
Where the Minister of Land, Infrastructure and Transport or the relevant Mayor/Do Governor intends to cancel a license or registration for passenger transport business under Article 4, car rental business under Article 28, terminal business under Article 36 or passenger transport franchise business under Article 49-2, pursuant to Article 49-6 or 85 (1), he/she shall hold a hearing thereon. <Amended by Act No. 11690, Mar. 23, 2013; Act No. 12377, Jan. 28, 2014>
 Article 87 (Revocation, etc. of Transport Employees' Qualifications)
(1) Where a person who has obtained a qualification referred to in Article 24 (1) falls under any of the following, the Minister of Land, Infrastructure and Transport or the relevant Mayor/Do Governor may revoke such qualification or suspend the validity thereof for a specified period not exceeding six months: Provided, That in the cases of subparagraphs 3 and 6-2, he/she shall revoke such qualification: <Amended by Act No. 11295, Feb. 1, 2012; Act No. 11690, Mar. 23, 2013; Act No. 12377, Jan. 28, 2014; Act No. 12982, Jan. 6, 2015>
1. Where he/she falls under any of subparagraphs 1 through 4 of Article 6;
2. Where he/she has obtained a qualification under Article 24 (1) by fraud or other improper means;
3. Where he/she falls under Article 24 (3) or (4);
4. Where he/she fails to comply with any observation made under Article 26 (1);
5. Where he/she fails to observe a matter under Article 26 (2) on at least three occasions within one year after the date he/she was subjected to a disposition imposing an administrative fine due to a failure to observe such matter;
5-2. Where he/she makes a certificate of operation records illegible or operates a motor vehicle with an illegible certificate of operation records, in violation of Article 26 (4);
6. Where he/she causes casualties in excess of those prescribed by Presidential Decree due to a traffic accident;
6-2. Where he/she is sentenced to imprisonment without labor or greater punishment for filing fraudulent or improper insurance claim in connection with a traffic accident and such sentence is made final and conclusive;
7. Where he/she commits any wrongdoing or unjust acts in relation to driving service;
8. Where he/she violates this Act or an order or a disposition issued under this Act.
(2) Matters necessary for standards, procedures, etc. for dispositions to be issued under paragraph (1) shall be determined by Ordinance of the Ministry of Land, Infrastructure and Transport. <Amended by Act No. 11690, Mar. 23, 2013>
[“Article 24 (4) 1” prescribed by subparagraph 3 of proviso of Article 87 (1), which was determined to be inconsistent with the Constitution by the Constitutional Court on Dec. 23, 2015, is amended by Act No. 14342, Dec. 2, 2016]
 Article 88 (Imposition of Penalty Surcharges)
(1) Where it is required to issue an order to suspend business operation of a passenger transport service provider because he/she falls under any subparagraphs of Article 49-6 (1) or 85 (1), but it is anticipated that the business suspension is likely to cause severe inconvenience to users of the business or harm public interests, the Minister of Land, Infrastructure and Transport or the relevant Mayor/Do Governor may impose a penalty surcharge not exceeding 50 million won in substitution for the disposition of business suspension. <Amended by Act No. 11295, Feb. 1, 2012; Act No. 11690, Mar. 23, 2013>
(2) The amount of penalty surcharges imposed, based upon the category and degree of an offense subject to a penalty surcharge under paragraph (1), and other necessary matters shall be prescribed by Presidential Decree.
(3) Where a person who has been subject to a disposition for penalty surcharges under paragraph (1) fails to pay a penalty surcharge by a prescribed deadline, the Minister of Land, Infrastructure and Transport or the relevant Mayor/Do Governor shall collect it in the same manner as delinquent national taxes are collected or in accordance with the Act on the Collection, etc. of Local Non-Tax Revenue. <Amended by Act No. 11690, Mar. 23, 2013; Act No. 11998, Aug. 6, 2013>
(4) No penalty surcharge collected pursuant to paragraph (1) shall be used for any purpose, other than the following purposes: <Amended by Act No. 9733, May 27, 2009>
1. Compensation for losses incurred in the operation of remote routes or unprofitable routes that are prescribed by Presidential Decree;
2. Installation and operation of facilities for cultivation, education or training, or improvement of the quality of transport employees and facilities for providing direction to transport employees;
3. Financial support for the construction of terminals established by local governments;
4. Maintenance and expansion of terminal facilities;
5. Projects necessary for the managerial improvement of passenger transport service or the other development of passenger transport service;
6. Subsidies or loans for purposes listed in any of subparagraphs 1 through 5;
7. Projects implemented by a local government to prevent or eradicate the violation of this Act.
(5) The relevant Mayor/Do Governor shall formulate and execute an operational plan for amounts collected as penalty surcharges, as prescribed by Ordinance of the Ministry of Land, Infrastructure and Transport. <Amended by Act No. 11690, Mar. 23, 2013>
(6) The procedures for and purposes of use of penalty surcharges under paragraph (4), the formulation and execution of an operational plan under paragraph (5), and other necessary matters shall be determined by Presidential Decree.
 Article 89 (Suspended Use of Motor Vehicles)
(1) A transport business entity shall return the registration certificate and registration number plate of his/her motor vehicle to the Mayor/Do Governor in any of the following cases: Provided, That a route passenger transport business entity referred to in Article 3 (1) 1 may not return them, if he/she falls under subparagraph 2: <Amended by Act No. 12377, Jan. 28, 2014>
1. Where the term of a restricted license that was granted for a specific length of time pursuant to Article 4 (3) has expired;
2. Where permission for temporary closure or permanent closure under Article 16 (1) and (2) (including cases applicable mutatis mutandis under Articles 35 and 49-7) has been granted or a report thereon has been submitted;
3. Where a license, registration, permission or authorization has been cancelled, a disposition suspending business operation has been taken, or an order for change of a business plan to reduce the number of motor vehicles has been issued, as prescribed by Article 85 (1).
(2) Where a transport business entity fails to comply with paragraph (1), the relevant Mayor/Do Governor shall provisionally retain the registration certificate and registration number plate of his/her motor vehicle.
(3) The relevant Mayor/Do Governor shall return the registration certificate and registration number plate retained pursuant to paragraph (1) to the transport business entity in any of the following cases:
1. Where the period for temporary closure under Article 16 (including cases applicable mutatis mutandis under Article 35) expires;
2. Where the period for a disposition suspending business operation under Article 85 (1) expires.
(4) A transport business entity who has received a registration number plate back pursuant to paragraph (3) shall attach it to his/her motor vehicle and have it sealed by the relevant Mayor/Do Governor.
 Article 89-2 (Re-Examination of Regulations)
The Minister of Land, Infrastructure and Transport shall examine the appropriateness of the following matters every three years, counting from January 1, 2014 (referring to the period that ends on the day before the base date of every third year) and shall take measures, such as making improvements: <Amended by Act No. 14716, Mar. 21, 2017>
1. Licenses for passenger transport business prescribed in Article 4;
2. Grounds for disqualifications under Article 6;
3. Restrictions on modification of business plans prescribed in Article 10 (5);
4. Permission for temporary closures or permanent closure of passenger transport business prescribed in Article 16 (1);
5. Period of temporary closure of passenger transport business prescribed in Article 16 (5);
6. Qualifications of transport employees prescribed in Article 24 (1);
7. Restrictions on acquisition of driving qualifications prescribed in Article 24 (4);
8. License for bus terminal business prescribed in Article 36;
9. License for passenger transport franchise business prescribed in Article 49-2;
10. Authorization for the establishment of associations prescribed in Article 53;
11. Authorization for the incorporation of the Federation prescribed in Article 59;
12. Permission for mutual aid activities conducted by associations and the Federation prescribed in Article 60;
13. Authorization for the establishment of mutual aid associations prescribed in Article 61;
14. Age limits for motor vehicles prescribed in Article 84.
[This Article Newly Inserted by Act No. 12982, Jan. 6, 2015]
 Article 89-3 (Payment of Monetary Rewards for Reporting)
The head of a local government, delegated with the authority over licenses referred to in Article 4 (1) pursuant to Article 75 or the relevant regulations, may pay monetary rewards to a person who reports or files an accusation of another person who has engaged in passenger transport business prescribed by Presidential Decree without obtaining a license referred to in the same paragraph, as prescribed by ordinance of the relevant local government.
[This Article Newly Inserted by Act No. 13376, Jun. 22, 2015]
CHAPTER X PENALTY PROVISIONS
 Article 90 (Penalty Provisions)
Any of the following persons shall be punished by imprisonment with labor for not more than two years or by a fine not exceeding 20 million won: <Amended by Act No. 9070, Mar. 28, 2008; Act No. 12377, Jan. 28, 2014; Act No. 13376, Jun. 22, 2015>
1. Any person who operates passenger transport business without obtaining a license or making registration under Article 4 (1) or has engaged in activities similar to passenger transport business operation by using motor vehicles, other than those listed under Article 2 (referring to trucks, special motor vehicles, or two-wheel vehicles under Article 3 of the Motor Vehicle Management Act);
2. Any person who obtains a license for or registration of passenger transport business under Article 4 (1) by improper means;
3. Any person who violates the prohibition of use of name under Article 12 (including cases applicable mutatis mutandis under Article 35);
3-2. Any person who receives compensation for losses under Article 23 (3) or subsidies or loans under Article 50 by fraud or other improper means;
4. Any person who operates car rental business without registration under Article 28 (1);
5. Any person who files for registration of car rental business under Article 28 (1) by improper means;
6. Any person who entrusts the managerial tasks of car rental business without obtaining permission under Article 32 (1) or with obtaining such permission by improper means, and any person who is entrusted with managerial tasks by the above-mentioned person;
6-2. Any person who uses a rental car for transport with compensation, sublets the car to any third party, or arranges such activities, in violation of Article 34 (1);
6-3. Any person who arranges a driver, in violation of Article 34 (2);
7. Any person who uses his/her commercial motor vehicles for passenger transport with compensation or arranges such activities, in violation of Article 34 (3);
8. Any person who provides or rents a non-commercial motor vehicle for transport with compensation or arranges such activities, in violation of Article 81;
9. Any person who operates non-commercial motor vehicles by fixing routes for the purpose of attracting passengers or arranges such activities, in violation of Article 82 (1);
10. Any person who has engages in passenger transport business during the period of a disposition suspending business operation under Article 85 (1).
 Article 91 (Penalty Provisions)
Any of the following persons shall be punished by imprisonment with labor for not more than one year or by a fine not exceeding ten million won: <Amended by Act No. 14342, Dec. 2, 2016>
1. A car rental business entity who violates Article 34-2 (1);
2. A person who operates terminal business without obtaining a license (including a license for changed matters) prescribed in Article 36 or obtains a license (including a license for changed matters) by improper means.
[This Article Wholly Amended by Act No. 12377, Jan. 28, 2014]
 Article 92 (Penalty Provisions)
Any of the following persons shall be punished by a fine not exceeding ten million won: <Amended by Act No. 11295, Feb. 1, 2012>
1. Deleted; <by Act No. 9733, May 27, 2009>
2. Any person who fails to submit a report on terms and conditions of transport under Article 9 (1) or to comply with such terms and conditions of transport;
3. Any person who amends a business plan without obtaining authorization, making a registration, or submitting a report under Article 10 (including cases applicable mutatis mutandis under Article 35);
4. Any person who concludes or changes a joint transport service agreement in violation of Article 11 (including cases applicable mutatis mutandis under Article 35);
5. Any person who entrusts managerial tasks of passenger transport business without filing a report on entrustment of management under Article 13 (1) or by filing a false report thereon;
6. Any person who transfers or acquires passenger transport business or merges with corporations without obtaining authorization or submitting a report in violation of Article 14 (including cases applicable mutatis mutandis under Articles 35 and 48);
7. Deleted; <by Act No. 9733, May 27, 2009>
8. Any person who permanently closes or temporarily shut down his/her passenger transport service business without obtaining permission or submitting a report under Article 16 (including cases applicable mutatis mutandis under Articles 35 and 48);
9. Any person who allows a person who has failed to meet requirements for transport employees to engage in driving service, in violation of Article 21 (2);
10. Any person who fails to submit a report on rental terms and conditions under Article 31 (1) before commencing a car rental business or fails to comply with such rental terms and conditions;
11. and 12. Deleted; <by Act No. 13376, Jun. 22, 2015>
13. Any person who starts to use a terminal without obtaining facility confirmation in violation of Article 38 (4);
14. Any person who fails to file a report on terms and conditions of use under Article 40 (1) or violates such terms and conditions of use;
15. Any person who fails to obtain authorization for facility user fees under Article 41;
16. Any person who changes the location, size, structure, or equipment of a terminal without obtaining authorization under Article 43.
 Article 93 (Joint Penalty Provisions)
If the representative of a corporation or an agent or employee of, or any other person employed by, a corporation or an individual commits any violation referred to in Articles 90 through 92 in carrying out the business affairs of the corporation or individual, the corporation or individual shall, in addition to punishing the violators accordingly, be subject to a fine provided for in the relevant provisions: Provided, That the same shall not apply where such corporation or individual has not been negligent in giving due attention and supervision concerning the relevant affairs to prevent such violation.
[This Article Wholly Amended by Act No. 9733, May 27, 2009]
 Article 94 (Administrative Fines)
(1) Any of the following persons shall be subject to an administrative fine not exceeding ten million won: <Amended by Act No. 9733, May 27, 2009; Act No. 14949, Oct. 24, 2017>
1. Any person who fails to submit a report on charges or fares, in violation of Article 8;
2. Any person who fails to submit a report on inheritance under Article 15 (1) (including cases applicable mutatis mutandis under Articles 35 and 48);
3. Any person who fails to collect transport revenues in full from transport employees, in violation of Article 21 (1);
3-2. Any person who fails to guarantee break time, in violation of Article 21 (11);
4. Any person who fails to comply with an improvement order issued under Article 66 (including where it applies mutatis mutandis under Article 60 (2));
5. Any person who fails to comply with a request to dismiss, or take disciplinary action against, executive officers or employees or fails to comply with a corrective order issued under Article 67 (including where it applies mutatis mutandis under Article 60 (2)).
(2) Any of the following persons shall be subject to an administrative fine not exceeding five million won: <Amended by Act No. 11295, Feb. 1, 2012; Act No. 12377, Jan. 28, 2014; Act No. 14342, Dec. 2, 2016; Act No. 14716, Mar. 21, 2017; Act No. 14949, Oct. 24, 2017>
1. Any person who transports any child for compensation, in violation of Article 8 (6): Provided, That no administrative fine for the relevant offense shall be imposed on a person who has received a disposition issued pursuant to Article 85 (1) 10;
2. Any person who fails to display the name, sign, or other matter, on the outside of a motor vehicle used for transport business, in violation of Article 17: Provided, That no administrative fine for the relevant offense shall be imposed on a person who has received a disposition issued pursuant to Article 85 (1) 17;
3. Any person who fails to take a measure against accidents or to submit a report prescribed in Article 19 or who submits a false report;
4. Any person who fails to notify or falsely notifies the status of transport employees, in violation of Article 22 (1) 1 and 2;
5. Any person who fails to notify or falsely notifies how break time was guaranteed, in violation of Article 21 (1) 3;
6. Any person who provides any driving service of passenger transport business without meeting a requirement for transport employees referred to in Article 24 (1);
6-2. Any car rental business entity who violates Article 34-2 (2);
7. and 8. Deleted; <by Act No. 11295, Feb. 1, 2012>
9. Any person who fails to comply with an order to use a terminal prescribed in Article 45;
10. Any person who fails to comply with an order issued under Article 56, such as amendment to articles of association;
11. Any person who fails to submit a report, submits a false report, or refuses, interferes with, or evades, an investigation or inspection conducted under Article 65 (1) (including cases applicable mutatis mutandis under Article 60 (2));
12. Any person who fails to submit a report prescribed in Article 79 (1) or submits a false report: Provided, That no administrative fine for the relevant offense shall be imposed on a person who has received a disposition issued pursuant to Article 85 (1) 33;
13. Any person who fails to submit documents prescribed in Article 79 (1) or submits false documents: Provided, That no administrative fine for the relevant offense shall be imposed on a person who has received a disposition issued pursuant to Article 85 (1) 33;
14. Any person who rejects, interferes with, or evades, an inspection or fails to answer questions prescribed in Article 79 (2) without any justifiable grounds;
15. Any person who violates the restriction on or prohibition against the use of a noncommercial motor vehicle prescribed in Article 83;
16. Any person who fails to return a registration certificate and registration number plate of his/her motor vehicle, in violation of Article 89 (1).
(3) Any of the following persons shall be subject to an administrative fine not exceeding 500,000 won: <Amended by Act No. 11447, May 23, 2012; Act No. 12645, May 21, 2014; Act No. 13485, Aug. 11, 2015; Act No. 14716, Mar. 21, 2017>
1. Any person who fails to maintain safety seat belts in normal operational condition, in violation of Article 21 (6);
2. Any person who fails to train his/her transport employees on the fastening of safety seat belts by passengers, in violation of Article 21 (7);
3. Any person who refuses to provide traffic safety information, in violation of Article 21 (9), or provides false information, without any justifiable grounds;
3-2. Any person who fails to post a certificate referred to in Article 24-2 (1) or (2), in violation of the same paragraph;
4. Any person who violates Article 26 (1) or (2).
(4) Any person who violates Article 26 (3) shall be punished by an administrative fine not exceeding 100,000 won: Provided, That this shall not apply where a disposition for an administrative fine has been issued under Article 160 (2) 2 of the Road Traffic Act. <Newly Inserted by Act No. 11447, May 23, 2012>
(5) Administrative fines prescribed in paragraphs (1) through (4) shall be imposed and collected by the Minister of Land, Infrastructure and Transport or the relevant Mayor/Do Governor, as prescribed by Presidential Decree. <Amended by Act No. 11447, May 23, 2012; Act No. 11690, Mar. 23, 2013>
(6) and (7) Deleted. <by Act No. 9733, May 27, 2009>
 Article 95 (Special Cases concerning Provisions concerning Administrative Fines)
In applying the provisions of administrative fines specified in Article 94, no administrative fine shall be imposed on a person who is subject to the disposition for penalty surcharges under Article 88.
ADDENDA
Article 1 (Enforcement Date)
This Act shall enter into force on July 14, 2008.
Article 2 (Applicability to Cancellation, etc. of License due to Violation of Duties Imposed on Car Rental Business Entity)
The amended provisions of Article 85 (1) 26 and subparagraph 7 of Article 90 shall apply, beginning with the first violation of Article 34 (3) beginning on January 14, 2008, the date when the partial amendment to the Passenger Transport Service Act (Act No. 8511) enters into force.
Article 3 (Applicability to Cancellation of Business License following Revocation of Transport Employees' Qualifications)
The amended provisions of Article 85 (1) 37 shall apply, beginning with the first revocation of transport employees' qualifications made on and after January 14, 2008, when the Passenger Transport Service Act (Act No. 8511) enters into force.
Article 4 (Transitional Measures concerning Revocation of Transport Employees' Qualifications)
The amended provisions of Article 87 (1) 3 shall not apply to persons who have obtained qualifications under Article 24 (2) and (3) before June 8, 2006: Provided, That if such persons fall under the amended provisions of Article 24 (4) after June 8, 2006, the amended provisions of Article 87 (1) 3 shall apply.
Article 5 (General Transitional Measures concerning Dispositions, etc.)
Any acts performed by, or other acts to, administrative agencies under the previous provisions as at the time this Act enters into force shall be deemed acts by or in relation to administrative agencies under this Act.
Article 6 (Transitional Measures concerning Penalty Provisions and Administrative Fines)
In applying the penalty provisions and provisions of administrative fines to acts committed before this Act enters into force, the previous provisions shall apply.
Article 7 Omitted.
Article 8 (Relationship to Other Statutes)
Where other statutes cite the previous Passenger Transport Service Act or the provisions thereof, it shall be deemed to cite this Act or the relevant provisions of this Act in lieu of the previous provisions if this Act includes the relevant provisions.
ADDENDUM <Act No. 9070, Mar. 28, 2008>
This Act shall enter into force on July 14, 2008.
ADDENDA <Act No. 9432, Feb. 6, 2009>
Article 1 (Enforcement Date)
This Act shall enter into force six months after the date of its promulgation. (Proviso Omitted.)
Articles 2 through 7 Omitted.
ADDENDA <Act No. 9733, May 27, 2009>
(1) (Enforcement Date) This Act shall enter into force six months after the date of its promulgation.
(2) (Special Cases concerning Compensation for Reduction of Number of Motor Vehicles) If a local government compensates for reduction of the number of motor vehicles pursuant to the amended provisions of Article 50 (3), the State may start to subsidize funds required for the compensation for reduction of the number of motor vehicles operated in excess of the transport support plan established under the amended provisions of Article 5 (3).
(3) (Transitional Measures concerning Restriction on Transfer, Acquisition and Inheritance of Passenger Transport Business) Notwithstanding the amended provisions of Articles 14 (3) and the proviso to Article 15 (1), the restriction on transfer, acquisition and inheritance of the passenger transport business that was licensed under the previous provisions before this Act enters into force shall be governed by the previous provisions.
(4) (Transitional Measures concerning Penalty Provisions) In applying the penalty provisions to acts committed before this Act enters into force, the previous provisions shall apply.
ADDENDA <Act No. 10599, Apr. 14, 2011>
Article 1 (Enforcement Date)
This Act shall enter into force one year after the date of its promulgation. (Proviso Omitted.)
Articles 2 through 9 Omitted.
ADDENDUM <Act No. 10673, May 19, 2011>
This Act shall enter into force three months after the date of its promulgation.
ADDENDA <Act No. 10789, Jun. 7, 2011>
Article 1 (Enforcement Date)
This Act shall enter into force six months after the date of its promulgation. (Proviso Omitted.)
Articles 2 through 6 Omitted.
ADDENDA <Act No. 11295, Feb. 1, 2012>
Article 1 (Enforcement Date)
This Act shall enter into force six months after the date of its promulgation.
Article 2 (Applicability to Requirements for Engaging in Driving Service of Passenger Transport Business)
The amended provisions of Article 24 (3) or (4) shall apply, starting with a person who is sentenced to the relevant imprisonment after this Act enters into force.
Article 3 (Transitional Measures concerning Requirements for Engaging in Driving Service of Passenger Transport Business)
(1) Any person, who has engaged in any driving service of passenger transport business in accordance with the previous provisions as at the time this Act is promulgated and who intends to continuously engage in the relevant driving service even after this Act enters into force, shall file a report with the Minister of Land, Transport and Maritime Affairs within six months from the date on which this Act enters into force, as prescribed by the Minister of Land, Transport and Maritime Affairs.
(2) The Minister of Land, Transport and Maritime Affairs shall deem a person who has filed a report pursuant to paragraph (1) qualified for engaging in driving service of passenger transport business, and shall grant him/her such qualification, notwithstanding the provisions of Article 24.
(3) Any person who engages in any driving service of passenger transport business in accordance with the previous provisions from the day immediately after date on which this Act is promulgated to the day immediately before date on which this Act enters into force, may engage in driving service of passenger transport business until six months after the date on which this Act enters into force, notwithstanding the amended provisions of Article 24.
ADDENDA <Act No. 11447, May 23, 2012>
Article 1 (Enforcement Date)
This Act shall enter into force six months after the date of its promulgation.
Article 2 (Applicability to Disqualification of Members of Operating Committee of Mutual Aid Association)
The amended provisions of Article 63-2 (1) and (2) shall apply, starting with a person who is commissioned or appointed as a member of the operating committee of a mutual aid association after this Act enters into force: Provided, That in cases of members who belong to the operating committee of a mutual aid association as at the time this Act enters into force, such provisions shall apply, starting with where a member of the operating committee of a mutual aid association becomes disqualified due to the ground for disqualification that takes place for the first time after this Act enters into force.
ADDENDA <Act No. 11556, Dec. 18, 2012>
Article 1 (Enforcement Date)
This Act shall enter into force six months after the date of its promulgation. (Proviso Omitted.)
Articles 2 through 10 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. 11998, Aug. 6, 2013>
Article 1 (Enforcement Date)
This Article shall enter into force one year after the date of its promulgation.
Articles 2 and 3 Omitted.
ADDENDA <Act No. 12020, Aug. 6, 2013>
Article 1 (Enforcement Date)
This Article shall enter into force six months after the date of its promulgation.
Article 2 (Applicability to Installment of Airbags)
The amended provisions of Article 21 (7) shall apply, starting from the first motor vehicle, the new registration of which is made pursuant to the Motor Vehicle Management Act to be used for passenger transport business, six months after this Act enters into force.
Article 3 (Transitional Measures concerning Cancellation of License, etc.)
In applying the provisions of cancellation of license, etc. to acts committed before this Act enters into force, the previous provisions shall apply.
ADDENDA <Act No. 12248, Jan. 14, 2014>
Article 1 (Enforcement Date)
This Article shall enter into force six months after the date of its promulgation.
Articles 2 through 25 Omitted.
ADDENDA <Act No. 12377, Jan. 28, 2014>
Article 1 (Enforcement Date)
This Act shall enter into force six months after the date of its promulgation: Provided, That the amended provisions of Articles 34-2, 63-2 and 91 shall enter into force on the date of its promulgation, while the amended provisions of Articles 3 (1) 3, 26 (1) 1, 2 and 4 and 50 (2) 6 shall enter into force one year on or after the date of its promulgation.
Article 2 (Applicability to Cancellation of License, etc.)
(1) The amended provisions of Article 85 (1) 18 shall apply, starting from the case of transporting a parcel, other than parcels which are allowed to be transported under the amended provisions of Article 18 (1) and (2), or from the case of failing to comply with an order to prohibit transport of a parcel under the amended provisions of Article 18 (3), on or after this Act enters into force.
(2) The amended provisions of Article 85 (1) 41 shall apply, starting from where a person is sentenced to imprisonment without labor or greater punishment for filing fraudulent or improper insurance claim in connection with a traffic accident and such sentence has been made final and conclusive.
Article 3 (Transitional Measures concerning Incompetent Persons, etc.)
A person for whom the effect of adjudication of incompetence or quasi-incompetence is maintained under Article 2 of the Addenda to the Civil Act (Act No. 10429) shall be deemed included in incompetent persons under adult guardianship under the amended provisions of subparagraph 1 of Article 6.
Article 4 (Transitional Measures concerning Cancellation of License, etc.)
With regard to cancellation of license, etc. specified in any subparagraphs of Article 85 (4) before this Act enters into force, the previous provisions shall apply, notwithstanding the amended provisions of Article 85 (4).
Article 5 (Transitional Measures concerning Administrative Dispositions, etc. following Violation of Matters to be Observed by Transport Employees)
The previous provisions shall apply to administrative dispositions and administrative fines for violation of matters to be observed by transport employees committed before this Act enters into force.
Article 6 (Transitional Measures concerning Penalty Provisions)
The previous provisions shall apply to penalty provisions for violations committed before this Act enters into force.
ADDENDUM <Act No. 12645, May 21, 2014>
This Act shall enter into force six months after the date of its promulgation.
ADDENDUM <Act No. 12982, Jan. 6, 2015>
This Act shall enter into force one year after the date of its promulgation: Provided, That the amended provisions of Articles 71-2 and 89-2 shall enter into force on the date of its promulgation.
ADDENDUM <Act No. 13376, Jun. 22, 2015>
This Act shall enter into force six months after the date of its promulgation: Provided, That the amended provisions of Articles 14 (3) and 15 (2) shall enter into force on the date of its promulgation.
ADDENDA <Act No. 13383, Jun. 22, 2015>
Article 1 (Enforcement Date)
This Act shall enter into force six months after the date of its promulgation. (Proviso Omitted.)
Articles 2 through 4 Omitted.
ADDENDA <Act No. 13485, Aug. 11, 2015>
Article 1 (Enforcement Date)
This Act shall enter into force on the date of its promulgation: Provided, That the amended provisions of Articles 19 (1), 24-2, 49-6, and 94 (3) 3-2 shall enter into force six months after the date of its promulgation.
Article 2 (Transitional Measures concerning Incompetent Persons, etc.)
Notwithstanding the amended provisions of Article 63-2 (1) 1, the previous provisions shall apply to persons for whom the declaration of incompetency or quasi-incompetency remains effective under Article 2 of the Addenda to the Civil Act (Act No. 10429).
ADDENDA <Act No. 13717, Jan. 6, 2016>
Article 1 (Enforcement Date)
This Act shall enter into force on the date of its promulgation.
Articles 2 and 3 Omitted.
ADDENDA <Act No. 13800, Jan. 19, 2016>
Article 1 (Enforcement Date)
This Act shall enter into force one year after the date of its promulgation.
Article 2 (Transitional Measures concerning Designation and Change of Business Areas)
Where the Minister of Land, Infrastructure and Transport intends to designate or change the business area prescribed in the amended provision of Article 3-4 (1), the business area of a person who obtained a licence by the business area determined under the pervious provisions shall be deemed a business area designated or changed under this Act.
ADDENDA <Act No. 14113, Mar. 29, 2016>
Article 1 (Enforcement Date)
This Act shall enter into force one year after the date of its promulgation.
Articles 2 through 18 Omitted.
ADDENDA <Act No. 14342, Dec. 2, 2016>
Article 1 (Enforcement Date)
This Act shall enter into force on the date of its promulgation: Provided, That the amended provision of Article 24 (3) 3 and 4 shall enter into force three months after the date of its promulgation, Article 5 of the Addenda shall enter into force on March 30, the amended provision of Articles 50 (5), 51-3 and 51-4 shall enter into force six months after the date of its promulgation, the amended provision of Article 24 (4) 1 shall enter into force on June 30, 2017, the amended provision of Articles 34-2, 34-3, subparagraph 1 of Article 91 and Article 94 (2) 6-2 shall enter into force on September 1, 2017, and the amended provision of Article 84 (2) 2 shall enter into force one year after the date of its promulgation.
Article 2 (Applicability concerning Qualifications for Engaging in Driving Service of Passenger Transport Business)
(1) The amended provision of Article 24 (3) 3 and 4 shall apply, beginning with the first person who intends to obtain a driving qualification for passenger transport business after the same amended provision enters into force.
(2) The amended provision of Article 24 (3) 3 (a) shall apply, beginning with the first cancellation of a driver’s license by falling under Article 93 (1) 1 through 4 of the Road Traffic Act after the same amended provision enters into force.
(3) The amended provision of Article 24 (3) 3 (b) shall apply, beginning with the first case where a person violates Article 43 of the Road Traffic Act and was sentenced to a fine or heavier punishment or his/her driver’s license was revoked under Article 93 (1) 19 of the same Act after this Act enters into force.
(4) The amended provision of Article 24 (3) 3 (c) shall apply, beginning with the first case where a person deliberately or negligently causes a traffic accident while driving a motor vehicle, etc., and his/her driver’s license was revoked under Article 93 (1) 10 of the Road Traffic Act after this Act enters into force.
(5) The amended provision of Article 24 (3) 4 shall apply, beginning with the first cancellation of a driver’s licence by falling under Article 93 (1) 5 and 5-2 of the Road Traffic Act after this Act enters into force.
Article 3 (Applicability concerning Duty, etc. of Verifying Qualifications of Driving of Car Rental Business Entities)
The amended provision of Article 34-2 (2) shall apply, beginning with cases where a car rental business entity first rents cars for rental business after the same amended provision enters into force.
Article 4 (Applicability concerning Passenger Transportation in Major Transportation Facilities)
The former provision shall apply to the major transportation facilities which already obtained the verification of the completion of construction as at the time this Act enters into force, notwithstanding the amended provision of Article 4 (4) and (5).
Article 5 Omitted.
ADDENDA <Act No. 14716, Mar. 21, 2017>
Article 1 (Enforcement Date)
This Act shall enter into force one month after the date of its promulgation.
Article 2 (Applicability concerning Reports on Charges and Fares by Transport Business Entities)
The amended provisions of Article 8 (3) and (4), 9 (2) and (3), 10 (3) and (4), 13 (2) and (3), 14 (5) through (8), 15 (2) and (3), 16 (3) and (4), 31 (2) and (3), 40 (2) and (3), 49-2 (3) and (4), 49-4 (2) and (3), 53 (5) and (6), or 81 (2) and (3) shall apply, beginning with the first application for authorization or permission or the cases of report or change of report after this Act enters into force.
Article 3 Omitted.
ADDENDUM <Act No. 14861, Aug. 9, 2017>
This Act shall enter into force on the date of its promulgation.
ADDENDA <Act No. 14939, Oct. 24, 2017>
Article 1 (Enforcement Date)
This Act shall enter into force on January 1, 2018.
Articles 2 and 3 Omitted.
ADDENDA <Act No. 14949, Oct. 24, 2017>
Article 1 (Enforcement Date)
This Act shall enter into force six months after the date of its promulgation: Provided, That the amended provisions of Article 84 (2) shall enter into force on the date of the promulgation.
Article 2 (Applicability to Wearing Equipment for Protection of Children)
The amended provisions of Article 21 (6) shall apply, beginning with the vehicle newly introduced by a transport business entity after this Act enters into force: Provided, That notwithstanding the amended provisions of Article 21 (6), the application of the amended provisions may be postponed by up to three years in cases of motor vehicles for which the normal installation of equipment for the protection of children is deemed impossible due to technical conditions, as notified by the Minister of Land, Transport and Infrastructure.
Article 3 (Applicability to Exception to Age Limits for Motor Vehicles)
The amended provisions of Article 84 (2) shall apply, beginning with the first motor vehicle re-registered and the first electric vehicle or fuel cell vehicle, the battery of which is replaced with a new one, after the same amended provisions enter into force.
ADDENDA <Act No. 15320, Dec. 26, 2017>
Article 1 (Enforcement Date)
This Act shall enter into force on April 25, 2018: Provided, That the amended provisions of Article 3 (1) 3 shall enter into force one year after the promulgation.
Article 2 (Applicability to Status of Transport Employees)
The amended provisions of Article 22 (1) and (3) of the Passenger Transport Service Act partially amended by Act No. 14949 shall apply, beginning with the cases where a transport business entity notifies the relevant Mayor/Do Governor of the status of transport employees and other matters related to transport employees or where the Mayor/Do Governor reports the status of persons who have obtained qualifications to the Minister of Land, Infrastructure and Transport.