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ENFORCEMENT DECREE OF THE LOCAL PUBLIC ENTERPRISES ACT

Wholly Amended by Presidential Decree No. 16213, Mar. 31, 1999

Amended by Presidential Decree No. 17629, jun. 19, 2002

Presidential Decree No. 18312, Mar. 17, 2004

Presidential Decree No. 18762, Mar. 31, 2005

Presidential Decree No. 19513, jun. 12, 2006

Presidential Decree No. 19925, Mar. 9, 2007

Presidential Decree No. 20306, Oct. 4, 2007

Presidential Decree No. 20741, Feb. 29, 2008

Presidential Decree No. 20919, Jul. 17, 2008

Presidential Decree No. 21736, Sep. 21, 2009

Presidential Decree No. 22765, Mar. 29, 2011

Presidential Decree No. 23496, Jan. 6, 2012

Presidential Decree No. 24011, Jul. 31, 2012

Presidential Decree No. 24425, Mar. 23, 2013

Presidential Decree No. 24902, Dec. 4, 2013

Presidential Decree No. 25621, Sep. 24, 2014

Presidential Decree No. 25751, Nov. 19, 2014

Presidential Decree No. 26061, Jan. 28, 2015

Presidential Decree No. 27072, Mar. 30, 2016

Presidential Decree No. 27556, Oct. 25, 2016

Presidential Decree No. 28211, Jul. 26, 2017

Presidential Decree No. 28586, Jan. 16, 2018

CHAPTER I GENERAL PROVISIONS
 Article 1 (Purpose)
The purpose of this Decree is to prescribe matters delegated by the Local Public Enterprises Act and those necessary for the enforcement thereof. <Amended by Presidential Decree No. 18762, Mar. 31, 2005>
 Article 2 (Scope of Local Government-Directly Operated Enterprises)
(1) “Businesses which are higher than standards prescribed by Presidential Decree” in Article 2 (1) of the Local Public Enterprises Act (hereinafter referred to as the "Act") means the businesses satisfying the following standards: <Amended by Presidential Decree No. 18762, Mar. 31, 2005; Presidential Decree No. 26061, Jan. 28, 2015>
1. In cases of the water supply business: At least 10,000 tons of daily production capacity;
2. In cases of the industrial water supply business: At least 10,000 tons of daily production capacity;
3. In cases of the tramway business: At least 50 operating cars;
4. In cases of the automobile transportation business: At least 30 operating cars;
5. In cases of the local road business: At least 50㎞ of roadway under its management or at least three toll-tunnels and bridges under its management;
6. In cases of the sewerage business: At least 10,000 tons of daily disposal capacity;
7. In cases of the housing business: At least 100,000 square meters of floor area under its management or at least 100,000 square meters of total area under its construction;
8. In cases of the land development business: At least 100,000 square meters of land under its development;
9. Deleted. <by Presidential Decree No. 19925, Mar. 9, 2007>
(2) Where any business prescribed in each subparagraph of Article 2 (1) of the Act satisfies any of the standards indicated in paragraph (1), a local government shall prescribe matters necessary for applying the Act to the business by its municipal ordinance within six months after such business start satisfying the said standards.
 Article 2-2 (Application Mutatis Mutandis of Provisions as to Fees)
(1) Businesses to which the provisions of Article 22 of the Act may be applied mutatis mutandis pursuant to Article 2 (3) of the Act shall be as follows:
1. Water supply business;
2. Industrial water supply business;
3. Sewerage business.
(2) When the head of a local government intends to apply mutatis mutandis Article 22 of the Act to the businesses referred to in paragraph (1), he shall publicly announce the titles of businesses subject thereto on the official bulletin of relevant local government.
[This Article Newly Inserted by Presidential Decree No. 17629, Jun. 19, 2002]
CHAPTER II LOCAL GOVERNMENT-DIRECTLY OPERATED ENTERPRISES
 Article 3 (Manager's Term of Office)
(1) Where the term of office of a manager of a local government-directly operated enterprise is fixed pursuant to Article 7 (2) of the Act, his term of office shall be two years, but he may be consecutively reappointed depending upon his management performance: Provided, That his management performance is excellent and he desires to do so, he may be transferred or promoted during his term of office.
(2) The scope of a local government-directly operated enterprise which is permitted to adopt the tenure of office system for managers referred to in paragraph (1) shall be prescribed by ordinance of a relevant local government with the business size of such enterprise taken into account.
 Article 3-2 (Formulation of Medium- to Long-Term Business Management Plans of Local Water Supply Business, etc.)
(1) "Local government-directly operated enterprise meeting standards prescribed by Presidential Decree" prescribed in Article 9-2 (1) of the Act means any of the following local government-directly operated enterprises as of the end of the immediately preceding fiscal year among those specified in Article 2 (1) 1, 2 and 6 of the Act: <Amended by Presidential Decree No. 28211, Jul. 26, 2017>
1. A local government-directly operated enterprise, the asset size of which is at least one trillion won;
2. A local government-directly operated enterprise, the debt size of which is at least two hundred billion won;
3. A local government-directly operated enterprise in whose case the current term net loss has occurred for at least three consecutive business years, which is designated by the Minister of the Interior and Safety as he/she deems it necessary to improve the financial structure.
(2) "Within a deadline prescribed by Presidential Decree" in Article 9-2 (1) of the Act means by no later than September 30 each year.
(3) "Matters prescribed by Presidential Decree" in Article 9-2 (2) 5 means the implementation state of the medium- to long-term business management plan prepared in the immediately preceding year.
[This Article Newly Inserted by Presidential Decree No. 27072, Mar. 30, 2016]
 Article 4 (Adjustment of Incomes or Expenses Related to More than Two or More Businesses)
Where two or more businesses are entered in one special account pursuant to proviso to Article 13 of the Act, the incomes or expenses related to the two or more businesses concerned shall be distributed on the basis of criteria such as total amount of incomes or expenses of each business in the relevant business year, and each distribution shall be readjusted as income or expense of the relevant business.
 Article 5 (Expenses to be Borne by General Accounts, etc.)
Expenses of a local government-directly operated enterprise which are to be borne by the general accounts or other special accounts of a local government in the form of its contribution, or by other means pursuant to the proviso to Article 14 (1) of the Act shall be as follows: <Amended by Presidential Decree No. 17629, Jun. 19, 2002; Presidential Decree No. 18762, Mar. 31, 2005>
1. Expenses commonly incurred for every business:
(a) Expenses incurred for free supply for public purposes;
(b) The difference between the cost and the supply price due to the supply prices, such as charges that are determined or kept below the cost for public necessity;
(c) Basic expenses incurred for prior investment in regional development, etc., the maintenance expenses for facilities covered by prior investment, and repayment of principal and interest for outside loans required by the prior investment;
2. Expenses incurred for only the relevant business:
(a) Tramway business;
(b) Sewerage business;
(c) Housing business and land development business;
(d) Deleted; <by Presidential Decree No. 21736, Sep. 21, 2009>
(e) The businesses managed by a local government-directly operated enterprise, as prescribed in Article 2 (2) of the Act.
 Article 6 (Methods of Accounting)
(1) Accounting of a local government-directly operated enterprise shall be managed according to corporate accounting principles.
(2) A local government-directly operated enterprise shall clearly separate capital transactions and profit-and-loss transactions.
(3) A local government-directly operated enterprise shall not modify or change any accounting principles or procedures without any justifiable ground.
(4) A local government-directly operated enterprise shall manage its accounts appropriately in order to maintain its sound financial status.
 Article 7 (Determination of Year to which Profits should be Attributed)
The year which the profits of a local government-directly operated enterprise should be attributed shall be the year when the profit amount is actually examined and decided in accordance with the realization principle: Provided, That it is impossible to do so, the year shall be the year when the profits originate.
 Article 8 (Determination of Year to which Expenses should be Attributed)
The year to which expenses of a local government-directly operated enterprise should be attributed shall, according to the principles of accrual accounting, be the year when the amount payable is finalized in the case of the expense to be paid, and the year when the depreciation has to be claimed in case depreciation is made: Provided, That in cases of insurance premiums, rents, etc., the year shall be the year when the source of the expense such as insurance premiums, rents exists.
 Article 9 (Determination of Year to which Increase or Decrease, or Transfer of Assets, etc. should be Attributed)
The year to which any increase and decrease, or transfer of assets of a local government-directly operated enterprise is to be attributed shall be determined as follows:
1. In cases of tangible assets and inventory assets, the year when the assets are acquired, transferred, replaced, or disposed of;
2. In cases of intangible assets, the year when the assets are acquired, transferred, depreciated, or extinguished;
3. In cases of amounts receivable or amounts payable resulting from an increase and decrease or the transfer of assets referred to in subparagraphs 1 and 2, the year to which the day belongs when the amount receivable or the amount payable accrues;
4. In cases of an increase and decrease of assets or liabilities, the year to which the day belongs when the cash is received, disbursed, or transferred, or the year to which the day belongs when the source of the credit or debt is confirmed.
 Article 10 (Classification of Account Receivable and Account Payable)
Revenues or expenditures of a local government-directly operated enterprise which are neither received nor disbursed in cash when its credit or debt is finalized shall be classified into an account receivable and account payable.
 Article 11 (Classification of Accounts)
(1) The classification of accounts prescribed in Article 16 (4) of the Act, shall be determined by the Minister of the Interior and Safety: Provided, That the classification of accounts for the business prescribed in Article 2 (2) of the Act shall be determined by the head of the relevant local government. <Amended by Presidential Decree No. 20741, Feb. 29, 2008; Presidential Decree No. 24425, Mar. 23, 2013; Presidential Decree No. 25751, Nov. 19, 2014; Presidential Decree No. 28211, Jul. 26, 2017>
(2) Where an auxiliary account is created in accordance with Article 16 (5) of the Act, the following matters shall be clarified:
1. The process of increase or decrease in assets due to construction or improvement of the facilities of the business enterprises;
2. The process of calculating expenses incurred in the production, manufacture, repair, processing, purchasing, storing or transportation, of supplies or other kinds of assets;
3. The process of substituting the expenses where any substitution of the expenses has taken place.
 Article 12 (Assets)
The assets of a local government-directly operated enterprise shall be such property rights, both tangible and intangible, the enterprises are in possession of, and they shall be divided into current assets and non-current assets, with the former subdivided into quick assets and inventory assets, and the latter subdivided into invested assets, tangible assets, intangible assets and other non-current assets. <Amended by Presidential Decree No. 24902, Dec. 4, 2013>
 Article 13 (Liabilities)
The liabilities of a local government-directly operated enterprise shall consist of local bonds and other liabilities, and be classified into current liabilities and non-current liabilities. <Amended by Presidential Decree No. 24902, Dec. 4, 2013>
 Article 14 (Capital)
The capital of a local government-directly operated enterprise shall consist of net assets, calculated by subtracting total liabilities from total assets, and be classified as paid-in capital, capital surplus, capital adjustments, accumulated other comprehensive incomes, and earned surplus. <Amended by Presidential Decree No. 24902, Dec. 4, 2013>
 Article 14-2 (Scope of Transfer of Profits into General Accounting)
“Other reasons as prescribed by Presidential Decree" in Article 17 (3) of the Act means the following reasons:
1. Subsidization of expenses to other local government-directly operated enterprise;
2. Use for the profit-making business aiming at a fiscal expansion.
[This Article Newly Inserted by Presidential Decree No. 17629, Jun. 19, 2002]
 Article 15 (Procedures for Issuing Municipal Development Bonds)
(1) If the Special Metropolitan City Mayor, Metropolitan City Mayor, Metropolitan Autonomous City Mayor, Do Governor or a Special Self-Governing Province Governor (hereinafter referred to as the "Mayor/Do Governor") or the head of a large city with a population of at least one million (hereinafter referred to as "head of a large city") which is not a Special Metropolitan City, Metropolitan City, or Metropolitan Autonomous City makes a request for approval to the council in order to issue municipal development bonds pursuant to Article 19 (2) of the Act, he/she shall submit a fund operation plan prepared as prescribed by Ordinance of the Ministry of the Interior and Safety to the council. <Amended by Presidential Decree No. 20741, Feb. 29, 2008; Presidential Decree No. 24011, Jul. 31, 2012; Presidential Decree No. 24425, Mar. 23, 2013; Presidential Decree No. 24902, Dec. 4, 2013; Presidential Decree No. 25751, Nov. 19, 2014; Presidential Decree No. 28211, Jul. 26, 2017>
(2) The fund operation plan referred to in paragraph (1) shall include a plan for fund raising and lending for each project.
(3) If a Mayor/Do Governor obtains approval for a fund operation plan submitted pursuant to paragraph (1) from the council, he/she shall, without delay, submit the fund operation plan to the Minister of the Interior and Safety. <Amended by Presidential Decree No. 20741, Feb. 29, 2008; Presidential Decree No. 24011, Jul. 31, 2012; Presidential Decree No. 24425, Mar. 23, 2013; Presidential Decree No. 24902, Dec. 4, 2013; Presidential Decree No. 25751, Nov. 19, 2014; Presidential Decree No. 28211, Jul. 26, 2017>
[This Article Wholly Amended by Presidential Decree No. 18762, Mar. 31, 2005]
 Article 16 (Advances)
Where a local government-directly operated enterprise receives advances pursuant to Article 20-2 of the Act, it shall first obtain approval from the head of the local government in order to determine the method and date of its repayment.
 Article 17 (Calculation of Costs)
(1) The cost prescribed in Article 21 of the Act shall be calculated as follows: <Amended by Presidential Decree No. 20741, Feb. 29, 2008; Presidential Decree No. 24425, Mar. 23, 2013; Presidential Decree No. 25751, Nov. 19, 2014; Presidential Decree No. 28211, Jul. 26, 2017>
1. Calculation of costs by function: To calculate operating costs from among the account titles of expenses determined by the Minister of the Interior and Safety;
2. Calculation of costs by benefit: To calculate costs occurring directly or indirectly in connection with benefits from among the account titles of expenses determined by the Minister of the Interior and Safety.
(2) A manager of a local government-directly operated enterprise shall calculate costs, selecting units by which the business operations and costs for each function can be measured.
(3) In calculating costs by benefit, the unit of benefit by project shall be determined by the Minister of the Interior and Safety. <Amended by Presidential Decree No. 20741, Feb. 29, 2008; Presidential Decree No. 24425, Mar. 23, 2013; Presidential Decree No. 25751, Nov. 19, 2014; Presidential Decree No. 28211, Jul. 26, 2017>
 Article 18 (Methods of Calculating Fees)
(1) The level of fees prescribed in Article 22 (3) of the Act shall be determined by adding the capital expenses of the local government-controlled corporation to the business expenses. <Amended by Presidential Decree No. 17629, Jun. 19, 2002>
(2) Capital expenses prescribed in paragraph (1) shall be computed by adding the paid interests to the amount obtained by multiplying the equity capital by the adequate rate of investment returns. In such cases, the methods of calculating the adequate rate of investment returns and paid interests shall be determined by the Minister of the Interior and Safety. <Amended by Presidential Decree No. 17629, Jun. 19, 2002; Presidential Decree No. 20741, Feb. 29, 2008; Presidential Decree No. 24425, Mar. 23, 2013; Presidential Decree No. 25751, Nov. 19, 2014; Presidential Decree No. 28211, Jul. 26, 2017>
 Article 19 (Matters to be Entered in Budget)
(1) The following matters shall be entered in the budget of a local government-directly operated enterprise:
1. Estimated amount of business;
2. Amount of estimated income and expenses;
3. Continuing expenditures;
4. Bearing debts;
5. Local bonds;
6. Maximum temporary loan amounts;
7. Titles of accounts of forbidden budget diversions under Article 29 of the Act;
8. Subsidies from general accounts or other special accounts;
9. Scheduled disposal of earned surplus;
10. Deleted; <by Presidential Decree No. 17629, Jun. 19, 2002>
11. Acquisition and disposal of important assets under Article 40 of the Act;
12. Estimated revenues and expenditures of revolving funds;
13. Other necessary matters.
(2) Estimated income and expenses under paragraph (1) 2 shall be classified roughly into revenue income and expenditures and capital income and expenditures, and they shall, in turn, be classified into articles and items.
 Article 20 (Presentation of Budget Bill)
“Other documents prescribed by Presidential Decree” in Article 26 (3) of the Act means as follows:
1. Deleted; <by Presidential Decree No. 17629, Jun. 19, 2002>
2. Explanation of each item of the business budget and of the capital budget;
3. Details of salary or wage payments;
4. Statements of continuing expenditures;
5. Statement for bearing debts;
6. Estimated balance sheet and statement of estimated profits and losses for the business year concerned; and estimated balance sheet and statement of estimated profits and losses for the previous business year.
 Article 21 (Execution of Budget)
(1) For the appropriate management of a local government-directly operated enterprise, the manager of the relevant enterprise shall make necessary plans for execution of the budget of the enterprise and execute the said budget.
(2) Where the manager of a local government-directly operated enterprise intends to divert portions of the expenditure budget indicated by the detailed items of the budget pursuant to Article 29 of the Act, he shall report it to the head of the relevant local government.
 Article 22 (Arrangement of Expenses in Relation to Revenue Expenditures and Capital Expenditures)
Repair expenses paid off for restoration of the non-current assets of local government-directly operated enterprises, or for maintaining efficiency shall be placed under the category of the revenue expenditures while repair expenses paid off for the extension of the service life, or for the actual increase of the worth, of the non-current assets of local government-directly operated enterprises shall be placed under the category of the capital expenditures. In such cases, when the classification of the revenue expenditures and capital expenditures is not clear, it shall be governed as prescribed by the Minister of the Interior and Safety. <Amended by Presidential Decree No. 17629, Jun. 19, 2002; Presidential Decree No. 20741, Feb. 29, 2008; Presidential Decree No. 24425, Mar. 23, 2013; Presidential Decree No. 24902, Dec. 4, 2013; Presidential Decree No. 25751, Nov. 19, 2014; Presidential Decree No. 28211, Jul. 26, 2017>
 Article 23 (Budget Control Account and Funds Operation Plans)
Payments for expenses connected to the budget requiring cash payments for projects and payments for expenses requiring cash payments for purchases of stock assets and capital budgets respectively shall be controlled according to the budget control account and the plan for operation of the funds.
 Article 24 (Application for Approval for Carrying Budget Forward to Next Term)
Where the manager of a local government-directly operated enterprise desires to obtain the approval for carrying the budget forward to the next term pursuant to Article 30 (1) of the Act, he shall attach to the application form the details of the amount of money to be carried forward to the next term. <Amended by Presidential Decree No. 17629, Jun. 19, 2002>
 Article 25 (Scope of Expenses Not Paid in Cash)
Expenses not to be paid in cash as prescribed in Article 32 (2) of the Act shall be as follows:
1. Depreciation cost;
2. Depreciation of assets;
3. Cost of sales of products and goods;
4. Deleted book value owing to the disposal or change of assets;
5. Book value of by-products, etc., at the time of their use;
6. Money included in the accounts for allowances of debt;
7. Other amounts of losses appropriated, corresponding to accounting standards based on the accrual principle.
 Article 26 (Designation of Financial Companies to be in Charge of Receipts and Disbursements of Cash)
(1) Financial companies, etc. that may be designated as financial companies capable of performing a part of affairs of cash receipts and disbursements pursuant to the proviso to Article 33 (1) of the Act (hereinafter referred to as "designated financial companies"), shall be confined to any of the financial companies, but they shall be determined by taking account of their profitability and safety: <Amended by Presidential Decree No. 17629, Jun. 19, 2002; Presidential Decree No. 18762, Mar. 31, 2005; Presidential Decree No. 23496, Jan. 06, 2012, Presidential Decree No. 24902, Dec. 4, 2013; Presidential Decree No. 27556, Oct. 25, 2016>
1. Banks authorized pursuant to Article 8 of the Banking Act;
1-2. Nonghyup Bank under the Agricultural Cooperatives Act;
1-3. The Korea Development Bank under the Korea Development Bank Act;
1-4. The Industrial Bank of Korea under the Industrial Bank of Korea Act;
1-5. Suhyup Bank under the Fisheries Cooperatives Act;
2. Post offices under the Postal Savings and Insurance Act;
3. Community credit cooperatives under the Community Credit Cooperatives Act;
4. Credit unions under the Credit Unions Act;
5. Mutual savings banks under the Mutual Savings Banks Act.
(2) Designated financial companies shall be classified into financial companies in charge of receipts and disbursements which take care of a portion of receipts and disbursements and financial companies in charge of receipts which take care of a portion of receipts, and the financial companies in charge of receipts and disbursements shall have overall control over it, but if there are at least two financial companies in charge of receipt and disbursements, the financial company in charge of receipts and disbursements, which is designated by the manager of the local government-directly operated enterprise, shall have overall control over it. <Amended by Presidential Decree No. 24902, Dec. 4, 2013>
(3) The cash receipt and disbursement services as referred to in paragraph (1) shall include the receipt and disbursement services in the method of payment by securities and by account transfer.
 Article 27 (Proper Care of Receipt and Disbursement Services of Designated Financial Institutions)
(1) Designated financial companies may not receive any revenue of a local government-directly operated enterprise without payment notice and other written documents related to receiving said payment. <Amended by Presidential Decree No. 24902, Dec. 4, 2013>
(2) Financial companies in charge of receipt and disbursement services may not disburse any expenditures for the local government-directly operated enterprise without a check or disbursement notice issued by the manager of the enterprise. <Amended by Presidential Decree No. 24902, Dec. 4, 2013>
(3) Where a designated financial company receives income from the local government-directly operated enterprise, the financial company shall deposit the said income in the deposit account of the relevant enterprise, but a designated financial company other than financial companies in charge of receipts and disbursements (where financial companies in overall charge of receipts and disbursements exist, referring to the financial companies in overall charge of receipts and disbursements; hereafter the same shall apply in this paragraph) shall deposit the amount received in the deposit account of the relevant local government-directly operated enterprise at the financial company in charge of receipts and disbursements, as prescribed by the manager of the enterprise. <Amended by Presidential Decree No. 24902, Dec. 4, 2013>
(4) When a financial company in charge of receipts and disbursements other than the financial companies in overall charge of receipts and disbursements disburses any expenditures for the local government-directly operated enterprise, it shall notify the financial companies in overall charge of receipts and disbursements, as prescribed by the manager of the enterprise. <Amended by Presidential Decree No. 24902, Dec. 4, 2013>
 Article 28 (Contracts to Take Care of Cash Receipt and Disbursement Services)
(1) Designated financial companies shall be designated on the basis of contracts with the relevant financial companies. <Amended by Presidential Decree No. 24902, Dec. 4, 2013>
(2) It shall be specified in a contract referred to in paragraph (1) that the designated financial company will take proper care of its receipt and disbursement services for the relevant local government-directly operated enterprise and will perform all necessary duties as determined by Acts and subordinate statutes, municipal ordinances and municipal rules. <Amended by Presidential Decree No. 24902, Dec. 4, 2013>
 Article 29 (Disbursement by Check)
(1) The manager of a local government-directly operated enterprise may make payment by check which he/she issues with the financial company in charge of receipt and disbursement as payer, in lieu of cash payment. <Amended by Presidential Decree No. 24902, Dec. 4, 2013>
(2) When the manager of the local government-directly operated enterprise issues a check pursuant to paragraph (1), he/she shall notify the financial company in charge of receipts and disbursements thereof. <Amended by Presidential Decree No. 24902, Dec. 4, 2013>
(3) When the financial company in charge of receipts and disbursements receives the check issued by the manager of the local government-directly operated enterprise pursuant to paragraph (1), it shall disburse the amount of money if one year has not passed since the check was issued. <Amended by Presidential Decree No. 24902, Dec. 4, 2013>
(4) When a creditor who holds the check issued by the manager of the local government-directly operated enterprise pursuant to paragraph (1) for which more than one year has passed since it was issued, requests the manager to disburse the amount of the check, the manager shall disburse the said amount as long as he/she deems it appropriate to disburse after first inspecting the check.
 Article 30 (Disbursement by Account Transfer)
In receipt of an application from a creditor having an account with the financial company in charge of receipts and disbursements, the manager of a local government-directly operated enterprise may request the relevant financial company to disburse the funds by account transfer into the creditor's account. <Amended by Presidential Decree No. 24902, Dec. 4, 2013>
 Article 31 (Payment, etc. of Ordinary Expenses)
(1) Where the following expenses are apprehended to possibly interfere with the fulfillment of business tasks if they are not paid off with cash, the enterprise cashiers of a local government-directly operated enterprise may transfer necessary funds to ordinary-expenses cashiers: <Amended by Presidential Decree No. 17629, Jun. 19, 2002; Presidential Decree No. 20919, Jul. 17, 2008>
1. Traveling expenses;
2. General operational expenses;
3. Expenses of departments which have no cashier;
4. Expenses of offices which have no fixed place of business;
5. Expenses needed for the construction work, manufacture, or afforestation which is implemented by each department;
6. Expenses needed for direct payment of small sums of money to a multiple number of people;
7. Expenses to be paid off in foreign countries;
8. Expenses for sailing vessels;
9. Expenses for repayment of the principal and interest of local bonds or loans;
10. Expenses to be paid off in regions outside the jurisdiction of the local government concerned: Provided, That in case of provinces, transportation expenses incurred outside the jurisdiction of the government of the city where the provincial government is located, shall be included;
11. Salaries and bonuses to be paid to public servants, and the remunerations, fixed-amount allowances, and fixed-amount welfare payments to be paid to people in miscellaneous positions;
12. Allowances, recompenses, and business promotion expenses;
13. Expenses needed for the purchase of subsidiary foods required by each department, or expenses for the purchase of materials for construction works, tests, or inspections.
(2) Expenses under subparagraph of paragraph (1) shall not be provided in excess of the following amounts: the expenses under paragraph (1) 2, 3, 7, 9, 11 and 12 shall not be subjected to any limitation on the amount provided: <Amended by Presidential Decree No. 17629, Jun. 19, 2002; Presidential Decree No. 20919, Jul. 17, 2008>
1. Expenses under paragraph (1) 1, 4, 6, 8 and 10: Ten million won;
2. Deleted; <by Presidential Decree No. 20919, Jul. 17, 2008>
3. Expenses under paragraph (1) 5: 20 million won.
(3) The funds under paragraph (2) shall be provided in accordance with the following standards:
1. Ordinary expenses of departments: They shall be provided once a month within the limit under paragraph (2);
2. Expenses to be provided occasionally: The amount of the necessary expenses shall be estimated in advance and shall be provided, if possible, in a piecemeal manner extended over a certain period to the extent that it does not interfere with the regular fulfillment of tasks.
(4) The manager shall appoint public officials who will perform activities that constitute the causes for the payment of the ordinary expenses under paragraph (1): this shall not apply to cases where ordinary expenses are temporarily paid off.
 Article 32 (Inspection of Designated Financial Institutions)
(1) The manager of a local government-directly operated enterprise shall inspect the receipts and disbursements of the designated financial companies related to the business of the local government-directly operated enterprise at least annually according to the contact referred to in Article 28. <Amended by Presidential Decree No. 24902, Dec. 4, 2013>
(2) Where necessary for the inspection referred to in paragraph (1), the manager of the local government-directly operated enterprise may require the designated financial companies to submit related ledgers, account books and other related materials. <Amended by Presidential Decree No. 24902, Dec. 4, 2013>
 Article 33 (Payment with Securities)
(1) A person who has a payment to make to a local government-directly operated enterprise may make the payment with securities in lieu of cash.
(2) The types, payment procedures, and other necessary matters of those securities which are payable in lieu of cash pursuant to the provisions of paragraph (1) shall be determined by municipal rules of the relevant local government concerned.
 Article 34 (Payment by Account Transfer)
A person liable for payment to a local government-directly operated enterprise may make the payment by account transfer to any designated financial company. <Amended by Presidential Decree No. 24902, Dec. 4, 2013>
 Article 35 (Public Officials in Charge of Accounts)
(1) The manager of a local government-directly operated enterprise may employ a treasurer entrusted with overall accounting services and the following public officials to be in charge of the accounts, pursuant to Article 34 (2) of the Act. In such cases, the public officials indicated in subparagraph 1 may not hold the offices of the public officials indicated in subparagraph 3 concurrently: <Amended by Presidential Decree No. 17629, Jun. 19, 2002>
1. The receiving official, the disbursing official, the asset accounting official, the general expenses accounting official, the cashier, or the official in charge of revenues and expenditures, who takes partial charge of receipts and disbursements and other accounting services taken care of by the corporate treasurer;
2. The collection official who is entrusted with the part of the business determining the collection of charges and other fees or service charges; and
3. The official who is delegated the task of taking care of doing con tracts and other activities for which expenditures are disbursed.
(2) Where it is deemed necessary, the manager of the local government-directly operated enterprise may employ a public official who shall replace the public official in charge of accounts or take partial charge of his/her service. In such cases, the criteria in which the manager has the public official replace the corporate treasurer, the receiving official, and the disbursing official, or take partial charge of their service may be determined by municipal rules of the relevant local government.
 Article 36 (Presentation of Reports on Settlement of Accounts)
(1) “Documents prescribed by Presidential Decree” prescribed in Article 35 (2) of the Act means as follows:
1. Balance sheet;
2. Statement of profits and losses;
3. Statement of appropriation of earned surplus or a statement of disposition of deficits;
4. Statement of change in financial conditions or cash flow statement;
5. Where a revolving fund is created, a statement of its operation status;
6. Detailed statements attached to the settlement of accounts.
(2) The detailed statements attached to the settlement of account prescribed in paragraph (1) 6 shall consist of the following documents: <Amended by Presidential Decree No. 17629, Jun. 19, 2002; Presidential Decree No. 24902, Dec. 4, 2013>
1. Detailed statement of incomes and expenses;
2. Detailed statement of non-current assets;
3. Detailed statement of inventory assets;
4. Detailed statement of local bonds;
5. Statement of budget diversion;
6. Statement of employment of reserve fund;
7. Statement of money forwarded over into the budget;
8. Statement of execution of continuing expenditures;
9. Report of exact calculations of continuing expenditures (limited to where the continuing years related to the continuing expenditures or the year to which it is carried forward expires);
10. Investigation of performance of bearing liabilities;
11. Statement of use of money carried forward from the previous year;
12. Statement money to be received;
13. Statement of money to be disbursed;
14. Statement of the deficits by nonpayment;
15. Statement of current amount of cash other than the revenues and expenditures;
16. Detailed statement of settlement of expenditures according to their nature;
17. Other necessary detailed statements.
 Article 37 (Appropriation of Profits)
Where there is a balance remaining after the profits earned each business year cover the deficits carried forward from the previous business year pursuant to Article 37 (1) of the Act, a local government-directly operated enterprise shall accumulate an amount equivalent to more than one tenth of the balance as a profit reserve fund, until the said amount equals to the amount equivalent to one second of the total amount of capital.
 Article 38 (Appropriation of Capital Surplus)
Where a loss is sustained by losing, or handing over, or removing, or disposing of the assets acquired with a fund to be handled as capital surplus, the capital surplus may be used to cover the loss.
 Article 39 (Disposition of Loss)
(1) Where deficits are covered pursuant to Article 38 of the Act, the grounds for and details of such deficits shall be reported to the relevant council. <Amended by Presidential Decree No. 24902, Dec. 4, 2013>
(2) Deficits shall be covered by profits carried forward from the previous business year, and where such deficits are not covered by the profits carried forward, they may be covered by a profit reserve fund.
(3) Where a profit reserve fund cannot cover the deficits fully pursuant to paragraph (2), the remaining deficits shall be carried forward to the next year: Provided, That where there is a capital surplus (excluding the part to be disposed of under Article 38; hereinafter the same shall apply), the said surplus may be used to cover the deficits if approval is given by the relevant council. <Amended by Presidential Decree No. 24902, Dec. 4, 2013>
 Article 40 (Transfer of Reserve Funds into Capital)
(1) Where local bonds are amortized by a sinking-fund reserve, an amount equivalent to the sinking-fund reserve concerned shall be transferred into paid-in capital.
(2) Where construction or improvement of a local government-directly operated enterprise is made with reserve funds for construction and improvement, an amount equivalent to the reserve fund for construction and improvements shall be transferred into paid-in capital.
 Article 41 (Acquisition and Disposal of Important Assets)
(1) “Important assets prescribed by Presidential Decree” in Article 40 (1) of the Act means as follows: Provided, That such assets as are acquired for the purpose of sale and disposal accordingly for the sake of the types of business under Article 2 (1) 7 and 8 and (2) of the Act shall be excluded from the category of the important assets:
1. Such an asset, the prearranged sale price of which is not less than 500 million won (250 million won in cases of Sis/Guns which have no Gus). In such cases, the standards for the said prearranged sale price shall be the officially assessed land prices in case of land, and the standard market values in case of buildings or other types of assets;
2. Such a piece of land which does not fall under the provisions of subparagraph 1 but total area of which is not less than 10,000 square meters (not less than 5,000 square meters in cases of Sis/Guns which have no Gus).
(2) Where a manager intends to acquire or dispose of an important asset under paragraph (1), he shall make a report on the results of the acquisition and disposal of the asset to the head of the local government concerned.
 Article 42 (Appraisal of Assets)
(1) When the head of a local government intends to organize and manage any local government-directly operated enterprise prescribed in Article 5 of the Act, he/she shall appraise its assets in order to determine its value.
(2) Detailed standards and methods of appraising the assets prescribed in paragraph (1) shall be determined by the Minister of the Interior and Safety. <Amended by Presidential Decree No. 20741, Feb. 29, 2008; Presidential Decree No. 24425, Mar. 23, 2013; Presidential Decree No. 25751, Nov. 19, 2014; Presidential Decree No. 28211, Jul. 26, 2017>
[This Article Wholly Amended by Presidential Decree No. 19925, Mar. 9, 2007]
 Article 43 Deleted. <by Presidential Decree No. 17629, Jun. 19, 2002>
 Article 44 (Public Notice, etc. of Business Management)
(1) "Other important matters concerning the business management" prescribed in Article 46 (2) of the Act means as follows: <Amended by Presidential Decree No. 18762, Mar. 31, 2005; Presidential Decree No. 20306, Oct. 4, 2007; Presidential Decree No. 20741, Feb. 29, 2008; Presidential Decree No. 21736, Sep. 21, 2009; Presidential Decree No. 24425, Mar. 23, 2013; Presidential Decree No. 25751, Nov. 19, 2014; Presidential Decree No. 28211, Jul. 26, 2017>
1. Annual budget and management plan;
2. Where a correction or improvement order is issued pursuant to Articles 33 through 34-2 of the Board of Audit and Inspection Act, or where a correction order is issued pursuant to Article 41 of the Local Autonomy Act or under Article 51 of the Enforcement Decree of the same Act, the details thereof;
3. Other important matters of business management, which are requested by the Minister of the Interior and Safety or the head of a local government.
(2) The manager of a local government-directly operated enterprise shall publicly notify its statement of settlement of accounts and financial statement on the Internet homepage of the relevant agency within five days after the settlement of accounts is approved, and other documents each time a notice is to be made, and keep records for two years in its main office. <Amended by Presidential Decree No. 17629, Jun. 19, 2002; Presidential Decree No. 21736, Sep. 21, 2009>
(3) Where any one intends to peruse or copy documents kept in accordance with paragraph (2), the manager shall provide assistance to such person. In such cases, the manager may have the person pay fees for making the copies.
 Article 44-2 (Combined Notice)
(1) The combined notice pursuant to Article 46 (3) of the Act shall satisfy the following criteria: <Amended by Presidential Decree No. 24425, Mar. 23, 2013; Presidential Decree No. 25751, Nov. 19, 2014; Presidential Decree No. 28211, Jul. 26, 2017>
1. Items of a combined notice shall include the following:
(a) Executives of a local government-directly operated enterprise and the current status of the operation of human resources;
(b) Management performance and financial status;
(c) Outcomes of internal and external audits;
(d) Outcomes of operation assessment, outcomes of operation examinations, and measures to be taken;
(e) Other matters in relation to the operation of a local government-directly operated enterprise, as prescribed by the Minister of the Interior and Safety;
2. The combined notice shall present materials for the recent five years;
3. Where the details of a combined notice are changed, the changes shall be announced within 14 days from the date when such change occurred.
(2) The Minister of the Interior and Safety shall determine the detailed items and procedures for making a combined notice (hereinafter referred to as "standards for a combined announcement") and notify them to the manager. <Amended by Presidential Decree No. 24425, Mar. 23, 2013; Presidential Decree No. 25751, Nov. 19, 2014; Presidential Decree No. 28211, Jul. 26, 2017>
(3) Where the Minister of the Interior and Safety changes any matters related to the standards for a combined announcement notified under paragraph (2), he/she shall notify the changed standards for a combined notice to the manager 14 days prior to the application of the changed standards. <Amended by Presidential Decree No. 24425, Mar. 23, 2013; Presidential Decree No. 25751, Nov. 19, 2014; Presidential Decree No. 28211, Jul. 26, 2017>
(4) The manager shall, in accordance with the standards for a combined notice prescribed in paragraphs (2) and (3), post the management information of a local government-directly operated corporation on the Internet homepage designated by the Minister of the Interior and Safety. <Amended by Presidential Decree No. 24425, Mar. 23, 2013; Presidential Decree No. 25751, Nov. 19, 2014; Presidential Decree No. 28211, Jul. 26, 2017>
[This Article Newly Inserted by Presidential Decree No. 21736, Sep. 21, 2009]
 Article 45 (Handing Over and Taking Over Business)
When the business operated by the local government comes to be governed or not governed by the Act as a local government-directly operated enterprise pursuant to Article 2 of the Act, the head of the relevant local government and the manager of the relevant enterprise shall respectively hand over and take over the business.
 Article 46 (Regulations regarding Account Management)
Necessary matters concerning account management of local government-directly operated enterprise (excluding matters concerning contract service), other than the provisions of this Chapter shall be determined by the rules of the relevant local government.
CHAPTER III LOCAL GOVERNMENT-INVESTED PUBLIC CORPORATION, LOCAL GOVERNMENT PUBLIC CORPORATION
 Article 47 (Examination, etc. of Feasibility of Establishment)
(1) The examination of feasibility prescribed in Article 49 (3) of the Act shall include the following matters, and the detailed procedures and examination standards therefor shall be determined by the Minister of the Interior and Safety: <Amended by Presidential Decree No. 28211, Jul. 26, 2017>
1. The adequacy of the business;
2. Analysis of the earnings by business;
3. Determination of demand for organization and human resources;
4. Influences on the improvement of welfare of residents;
5. Influences on the local economy and local finance.
(2) The head of a local government shall organize a deliberative committee consisting of the council members, related experts, related public officials of the relevant local government, etc. and deliberate on whether to establish a local government-invested public corporation (hereinafter referred to as "corporation") based on the outcomes of an examination of feasibility conducted by a specialized institution under Article 49 (3) of the Act and the results of a public hearing of the opinions of residents held under Article 76-2 (1) of this Decree.
(3) Matters necessary for the organization and operation of the deliberative committee referred to in paragraph (2) shall be determined by the head of the relevant local government, and at least one half of the members thereof shall be commissioned as civilian members.
(4) "Specialized institution satisfying the requirements prescribed by Presidential Decree, such as professional human resources and examination and research capability" prescribed in Article 49 (4) of the Act means an institution that meets all of the following requirements:
1. It shall have at least five persons having experience of at least three years and at least two persons having experience of at least five years in the affairs related to the examination of feasibility of business;
2. It shall have a record of research services on the examination of feasibility of business concerning a local public enterprise referred to in Article 3 of the Act or a public institution referred to in Article 4 of the Act on the Management of Public Institutions (hereinafter referred to as "public enterprise"), or concerning local finance.
[This Article Wholly Amended by Presidential Decree No. 27072, Mar. 30, 2016]
 Article 47-2 (Examination of Feasibility of Investment in other Corporations, etc.)
(1) In investing in another juristic person pursuant to Article 54 (2) of the Act, a corporation shall undergo a prior examination conducted by a specialized institution that meets the requirements prescribed in Article 47 (4) on the necessity and feasibility of investment. <Amended by Presidential Decree No. 27072, Mar. 30, 2016>
(2) A specialized institution that conducts a prior examination under paragraph (1) shall conduct the examination, taking the following matters into consideration:
1. The adequacy of the business performed by the corporation to invest in;
2. Analysis of the earnings by business performed by the corporation to invest in;
3. Methods of securing financial resources;
4. Influences of the business performed by the corporation to invest in on the regional economy.
(3) The limit of investment by a corporation in another juristic person pursuant to Article 54 (3) of the Act shall be no more than ten percent of the capital of the corporation as at the end of the immediately preceding business year.
[This Article Wholly Amended by Presidential Decree No. 24902, Dec. 4, 2013]
 Article 48 (Matters to be Included in Articles of Association)
“Other matters prescribed by Presidential Decree” in Article 56 (1) 12 of the Act means the matters concerning the organization and fixed number of a public corporation.
 Article 49 (Registration of Incorporation)
A public corporation shall register the following matters within three weeks from the day when the capital is paid in: <Amended by Presidential Decree No. 17629, Jun. 19, 2002>
1. Its purpose;
2. Its name;
3. Location of its principal office;
4. Its capital;
5. Methods of investment, if such methods have been determined;
6. Names and addresses of its executives;
7. Method of public notice.
 Article 50 (Registration of Installation of Public Corporation's Branch)
(1) Where a public corporation establishes its branch, it shall register the name and location of the said branch within two weeks at the location of its principal office, and the matters indicated in subparagraphs of Article 49 shall be registered within three weeks at the location of its branch: Provided, That if the branch is established at the time of the public corporation's incorporation, the registration for the branch's establishment shall be made concurrently with that for the public corporation's incorporation at the location of its principal office.
(2) Where a new branch is established within the jurisdiction of the registry office exercising jurisdiction over the location of the public corporation's principal office or branch office, only the name and location of the branch shall be registered within two weeks.
 Article 51 (Registration of Transfer)
(1) Where the public corporation transfers its principal office or its branch office to the jurisdiction of another registry office, it shall register the purport of the said transfer with the former registry office within two weeks and shall register the matters indicated in the subparagraphs of Article 49 with the new registry office within three weeks.
(2) Where the public corporation transfers its principal office or its branch office within the jurisdiction of the same registry office, it shall register this fact within two weeks.
 Article 52 (Alteration Registration of Alteration)
Where any matter indicated in subparagraphs of Article 49 alters, the registration of alteration shall be made within two weeks in the registry office having jurisdiction over the location of the public corporation''s principal office, and within three weeks in the registry office having jurisdiction over the location of its branch office.
 Article 53 (Application for Registration)
(1) Registrations as prescribed in Articles 49 through 52 shall be made by the president of the public corporation.
(2) Where the president of the public corporation applies for registration pursuant to the provisions of paragraph (1), he shall attach the following documents to the application for the registration:
1. In cases of registration of incorporation as prescribed in Article 49, documents concerning the articles of incorporation, the taking over of shares, investments in kind, payment for shares, and documents certifying qualifications of executive officers;
2. In cases of registration of installation of the public corporation's branch as prescribed in Article 50, documents concerning the installation of its branch;
3. In cases of registration of transfer as prescribed in Article 51, documents regarding the relocation of the public corporation's principal office or branch office;
4. In cases of registration of alteration as prescribed in Article 52, documents evidencing the altered matters.
 Article 54 (Calculation of Registration Period)
Where the matters to be registered pursuant to the provisions of this Decree must be authorized or approved by the authorities, their registration period shall be calculated beginning from the day when the written authorization or approval arrives.
 Article 55 (Directors)
(1) Directors referred to in Article 58 (1) of the Act shall be divided into standing directors and non-standing directors, as determined by the articles of association.
(2) The number of the standing directors including the president, shall be less than 50/100 of the total number of the directors.
 Article 56 Deleted. <by Presidential Decree No. 21736, Sep. 21, 2009>
 Article 56-2 (Standards for Reappointing or Dismissing President)
(1) When the head of every local government intends to reappoint or dismiss the president of the relevant corporation pursuant to Article 58 (4), he/she shall reappoint or dismiss the president according to the following standards:
1. Reappointment standards:
(a) Where the president scores high in the assessment of his/her execution of a performance-based contract prescribed in Article 58-2 of the Act, the assessment of his/her management prescribed in Article 78 (1) of the Act, and the assessment of his/her work performance prescribed in Article 78 (3) of the Act during his/her term of office;
(b) Where the outcomes of the assessment of the president are significantly better than that of the immediately preceding year in the assessment of his/her execution of a performance-based contract prescribed in Article 58-2 of the Act, the assessment of his/her management prescribed in Article 78 (1) of the Act, and the assessment of his/her work performance prescribed in Article 78 (3) of the Act during his/her term of office;
2. Dismissal standards:
(a) Where the president scores low in the assessment of his/her execution of a performance-based contract prescribed in Article 58-2 of the Act, the assessment of his/her management prescribed in Article 78 (1) of the Act, and the assessment of his/her work performance prescribed in Article 78 (3) of the Act during his/her term of office;
(b) Where the outcomes of the assessment of the president are significantly worse than that of the immediately preceding year in the assessment of his/her execution of a performance-based contract prescribed in Article 58-2 of the Act, the assessment of his/her management prescribed in Article 78 (1) of the Act, and the assessment of his/her work performance prescribed in Article 78 (3) of the Act during his/her term of office;
(c) Deleted. <by Presidential Decree No. 21736, Sep. 21, 2009>
(2) The standards for reappointing or dismissing the president under paragraph (1) shall be applied in the order of the assessment of his/her work performance prescribed in Article 78 (3) of the Act, the assessment of his/her management prescribed in Article 78 (1) of the Act, and the assessment of his/her execution of a performance-based contract prescribed in Article 58-2 of the Act.
(3) The scope of the high scores and low scores referred to in paragraph (1) and standards for determining whether the score is high or low shall be determined by the Minister of the Interior and Safety after undergoing the deliberations thereon of the policy committee for local public enterprises under Article 78-5 of the Act. <Amended by Presidential Decree No. 20741, Feb. 29, 2008; Presidential Decree No. 21736, Sep. 21, 2009; Presidential Decree No. 24425, Mar. 23, 2013; Presidential Decree No. 25751, Nov. 19, 2014; Presidential Decree No. 27072, Mar. 30, 2016; Presidential Decree No. 28211, Jul. 26, 2017>
[This Article Newly Inserted by Presidential Decree No. 19925, Mar. 9, 2007]
 Article 56-3 (Formation and Operation of Executive Officer Recommendation Committee)
(1) The committee for recommending executive officers pursuant to Article 58 (3) and (7) of the Act (hereinafter referred to as the "recommendation committee") shall be established under a corporation and shall consist of the following persons: Provided, That where a corporation is established, the committee shall consist of four persons recommended by the head of the relevant local government and three persons recommended by the relevant council: <Amended by Presidential Decree No. 21736, Sep. 21, 2009; Presidential Decree No. 24902, Dec. 4, 2013; Presidential Decree No. 27072, Mar. 30, 2016>
1. Two persons recommended by the head of the relevant local government;
2. Three persons recommended by the relevant council;
3. Two persons recommended by the board of directors of the relevant corporation.
(2) No ex officio director who is a public official of the relevant local government shall participate in the resolution of the board of directors referred to in paragraph (1) 3. <Newly Inserted by Presidential Decree No. 18762, Mar. 31, 2005>
(3) Members of the recommendation committee shall be the following persons: <Amended by Presidential Decree No. 19513, Jun. 12, 2006>
1. Professionals of business management;
2. Executive officers of economy-related organizations;
3. Persons who have retired as public officials of Grade IV or higher in their ranks or public officials in general service who belong to the Senior Civil Service;
4. Certified public accountants;
5. Persons deemed to have knowledge and experience in the management of public enterprises.
(4) Executive officers and employees of a corporation (excluding non-standing directors) and public officials of the said local government (including council members) shall not become members of the recommendation committee. <Amended by Presidential Decree No. 24902, Dec. 4, 2013>
(5) The recommendation committee shall make a decision by concurrent votes of a majority of incumbent members.
(6) The chairperson of the recommendation committee shall be elected from among its members, and the chairperson shall represent the recommendation committee and preside over its meeting.
(7) When a corporation intends to newly appoint an executive officer due to the expiration of term of office or for other grounds, it shall organize the recommendation committee without delay, and request the head of the local government and the council to recommend a member. <Amended by Presidential Decree No. 21736, Sep. 21, 2009; Presidential Decree No. 24902, Dec. 4, 2013>
(8) The recommendation committee shall continue to exist until the recommended person is appointed as an executive officer. <Amended by Presidential Decree No. 21736, Sep. 21, 2009>
(9) The recommendation committee shall prepare and keep minutes in which the details of deliberation and discussion of the meetings of recommendation committee are recorded, and disclose the minutes to the public: Provided, That where any of the subparagraphs of Article 9 (1) of the Official Information Disclosure Act is applicable, the recommendation committee shall be allowed not to disclose the minutes to the public. <Newly Inserted by Presidential Decree No. 24011, Jul. 31, 2012>
(10) Matters necessary for the formation, operation, etc. of the recommendation committee, other than those prescribed by this Decree, shall be prescribed by the articles of incorporation of a corporation. <Newly Inserted by Presidential Decree No. 21736, Sep. 21, 2009>
[This Article Newly Inserted by Presidential Decree No. 17629, Jun. 19, 2002]
 Article 56-4 (Procedures for Recommending Candidates for Executive Officers)
(1) The recommendation committee shall, where it is to publicly recruit the candidates for executive officers pursuant to Article 58 (8) of the Act, publish the notice of recruiting executive officers on the website of the relevant local government and local public enterprise, the website prescribed by the Minister of the Interior and Safety pursuant to Article 44-2 (4), and at least one daily newspapers distributed nationwide or daily newspapers mainly distributed in the area of the relevant local government, and the recruiting period shall be at least 15 days: Provided, That where it is inevitable for the swift employment, the recruiting period may be shortened after obtaining approval from the head of the local government. <Amended by Presidential Decree No. 24425, Mar. 23, 2013; Presidential Decree No. 25751, Nov. 19, 2014; Presidential Decree No. 27072, Mar. 30, 2016; Presidential Decree No. 28211, Jul. 26, 2017>
(2) The recommendation committee shall recommend, as candidates for executive officers, persons who have abundant knowledge and experiences and capability required for the performance of duties as executive officers of the corporation, from among those who apply for the public recruiting under paragraph (1).
(3) Where the recommendation committee intends to recommend candidates for executives, it shall recommend at least two persons, except in extenuating circumstances.
(4) Where the recommended candidates for executive officers have any ground for disqualification under Article 60 of the Act or are deemed significantly inappropriate for the management of the corporation, the head of the local government or the president of the corporation, who has appointing authority, may request the recommendation committee to re-recommend candidates for executives. In such cases, the recommendation committee shall re-recommend candidates for executive officers.
(5) The recommendation committee may have a specialized agency perform the affairs including recruiting, investigating, etc. of candidates for executive officers, on behalf of the committee.
[This Article Wholly Amended by Presidential Decree No. 21736, Sep. 21, 2009]
 Article 57 (Vicarious Execution by Executive whose Term of Office has Expired)
Cases where the head of the local government may have an executive officer whose term of office has expired perform his/her duties until his/her successor is appointed pursuant to Article 59 (1) of the Act shall be any of the following cases:
1. Where the procedure for his/her reappointment is in process;
2. Where the head of the local government recognizes that his/her vicarious execution is in fact necessary until his/her successor is appointed.
 Article 57-2 (Profit-Making Business of Executive Officers and Employees Prohibited from Concurrent Offices)
"Business prescribed by Presidential Decree" in Article 61 (2) of the Act means any of the following business:
1. A business in the case of which it is obvious that an executive officer or employee of a corporation personally manages a commercial, industrial, financial, or any other profit-making business to seek profit;
2. A business performed by an executive officer or employee of a corporation in the capacity of a director, auditor, general partner, manager who executes the business, promoter, or any other executive officer of a private company engaged in a commercial, industrial, financial, or any other business, the purpose of which is profit-making;
3. Investment in an enterprise of a third party who is related to the duties of the very person of executive officer or employee of the corporation;
4. Other business aimed at continuous property gains.
[This Article Newly Inserted by Presidential Decree No. 24902, Dec. 4, 2013]
 Article 57-3 (Registration of Appointment of Agents)
(1) When the president of a corporation appoints his/her agent pursuant to Article 63-4 of the Act, he/she shall register the following matters at the place of a main office, branch office or local office where his/her agent is located within two weeks after such appointment:
1. Name, resident registration number and address of an agent;
2. Main office, branch office or local office where an agent is located;
3. Details of restriction, where the authority of an agent is restricted.
(2) When the president of a corporation dismisses his/her agent, he/she shall register the intent of such dismissal at the place of a main office, branch office or local office where his/her agent is located within two weeks after such dismissal.
[This Article Newly Inserted by Presidential Decree No. 22765, Mar. 29, 2011]
 Article 57-4 (Accounting, etc.)
(1) Accounting, standards and procedures for concluding a contract, and restrictions on the eligibility for bidding, etc. under Article 64-2 (6) of the Act shall be subject to the application mutatis mutandis of Articles 2, 6, 6-2, 7 through 42, 42-2 through 42-4, 43 through 49, 51, 52, 54 through 56, 64, 66 through 71, 71-2, 71-3, 72 through 78, 78-2, 80 through 89, 89-2, 90 through 97, 97-2, 98, 98-2, 99, 100, 100-2, 101, and 103 of the Enforcement Decree of the Act on Contracts to Which a Local Government Is a Party, to the extent that does not contradict to the nature thereof. In such cases, "local government" shall be regarded as "corporation", "public official involved with accounting" as "person in charge of accounting", "affiliated pubic official" as "affiliated employee", "the head of a local government", as "the president of a public corporation", "public official" as "employee", and "related public official" as "related employee". <Amended by Presidential Decree No. 26061, Jan. 28, 2015>
(2) Notwithstanding Article 25 (1) of the Enforcement Decree of the Act on Contracts to Which a Local Government Is a Party which applies mutatis mutandis under paragraph (1), the president of a corporation or an employee who takes charge of the affairs related to contracting upon delegation or entrustment of all or part thereof by the president of a corporation (hereinafter referred to as "contracting officer") may conclude a contract by free contract in any of the following cases: <Amended by Presidential Decree No. 26061, Jan. 28, 2015; Presidential Decree No. 28586, Jan. 16, 2018>
1. Where he/she intends to conclude a contract with a subsidiary of the corporation (referring to a juristic person in which the relevant corporation holds 100/100 of the total number of issued stocks or total shares of investment; hereafter the same shall apply in subparagraph 2) or a company in which it has invested (referring to a juristic person, the total of the number of stocks or shares of investment of which held by the relevant corporation and other corporations is 100/100 of the total number of issued stocks or total shares of investment; hereafter the same shall apply in subparagraph 2) to entrust or delegate the affairs of the corporation;
2. Where he/she intends to conclude a contract inevitably with a subsidy of the corporation or a company in which it has invested, for the maintenance, etc. of facilities and equipment owned by the relevant corporation or the first-class public structures defined in subparagraph 1 of Article 7 of the Special Act on the Safety Control and Maintenance of Establishment.
[This Article Newly Inserted by Presidential Decree No. 24902, Dec. 4, 2013]
 Article 57-5 (Scope of Procurement Contracts of Urban Railway Corporation subject to International Tender)
(1) Notwithstanding Article 57-4, where a procurement contract is to be concluded in an amount which is at least the one determined and publicly notified by the Minister of the Interior and Safety in accordance with a government procurement agreement joined or concluded by the Government or international standards based thereon (hereinafter referred to as "government procurement agreement, etc."), a corporation prescribed in attached Table 1 (hereinafter referred to as "urban railway corporation") shall conclude such contract by means of international tender: Provided, That any of the following cases shall be excluded from the objects of the procurement contract with an urban railway corporation subject to an international tender: <Amended by Presidential Decree No. 28211, Jul. 26, 2017>
1. Where goods or services necessary for the production for resale or sale are procured;
2. Where goods or services are procured for resale or sale or for use in the supply of goods and services for resale or sale;
3. Where products of small and medium enterprises are manufactured and purchased according to the Act on Facilitation of Purchase of Small and Medium Enterprise-Manufactured Products and Support for Development of Their Markets;
4. Where agricultural products, fishery products or livestock products are purchased in accordance with the Grain Management Act, the Act on Distribution and Price Stabilization of Agricultural and Fishery Products, or the Livestock Industry Act;
5. Where necessary to maintain the public order and stability or to protect lives and health of humans or animals or intellectual property right;
6. Where goods produced by or services, etc. of philanthropic institutions, the disabled, or prisoners are procured;
7. Where procurement is conducted for the promotion of feeding programs;
8. Other details specified in government procurement agreements, etc. and prescribed by Ordinance of the Ministry of the Interior and Safety.
(2) Where a contract is concluded by an international tender prescribed in paragraph (1), the methods, procedures, etc. for contracting other than those prescribed in this Decree shall be subject to the application mutatis mutandis of Articles 1, 2, 4 through 25, and 39 through 46 of the Regulations on Special Cases concerning the Enforcement Decree of the Act on Contracts to Which the State Is a Party in Specific Procurement and Articles 1 through 11, 13, 14 and 17 of the Regulations on Special Cases concerning the Enforcement Decree of the Act on Contracts to Which the State Is a Party in the Procurement of Specific Goods, Etc.. In such cases, "the head of a central agency" shall be regarded as "the president of an urban railway corporation", "the Minister of Strategy and Finance" as "the Minister of the Interior and Safety", "Ordinance of the Ministry of Strategy and Finance" as "Ordinance of the Ministry of the Interior and Safety", "public official in charge of contracting" as "contracting officer", and "the State" and "the Government" as "an urban railway corporation," respectively. <Amended by Presidential Decree No. 28211, Jul. 26, 2017>
(3) Matters to be publicly announced in conducting an international tender shall be published in a publication specified in a government procurement agreement, etc.
(4) Where deemed necessary, taking into consideration the purposes, character, etc. of a contract, the president of an urban railway corporation or a contracting officer may conclude a contract by an international tender even when it is not subject to an international tender prescribed in paragraph (1).
[This Article Newly Inserted by Presidential Decree No. 26061, Jan. 28, 2015]
 Article 57-6 (Raising Objections concerning International Tender)
(1) Any person who has been disadvantaged due to any of the following matters in the process of concluding a procurement contract with an urban railway corporation by an international tender (hereinafter referred to as "person who raises an objection") may raise an objection for the cancellation or rectification of such acts to the president of the relevant urban railway corporation:
1. Matters concerning the scope of the procurement contract with the urban railway corporation by an international tender;
2. Matters concerning the qualification for participation in the tender;
3. Matters concerning the tender announcement;
4. Matters concerning the selection of a successful bidder.
(2) A person who raises an objection shall raise an objection to the president of the relevant urban railway corporation within 15 days from the date of occurrence of an act which serves as the ground for raising the objection or within 10 days from the date he/she became aware of the existence of such act.
(3) The president of the relevant urban railway corporation shall verify the objection within ten days from the date of the receipt of such objection and then notify the results thereof to the person who has raised the objection.
(4) A person dissatisfied with the results produced under paragraph (3) may request a re-examination for conciliation to the contract dispute conciliation committee of the relevant local government prescribed in Article 35 of the Act on Contracts to Which a Local Government Is a Party (hereinafter referred to as "Dispute Conciliation Committee") within 15 days from the date of receipt of such notification.
(5) The Dispute Conciliation Committee may examine or mediate the request for a re-examination under paragraph (4).
[This Article Newly Inserted by Presidential Decree No. 26061, Jan. 28, 2015]
 Article 57-7 (Formulation of Medium- to Long-Term Financial Management Plans)
The president of any of the following corporations shall submit a medium- to long-term financial management plan to the head of the local government and the council by no later than September 30 each year in accordance with Article 64-3 (1) of the Act:
1. A corporation, the debt size of which is at least 300 billion won as of the end of the immediately preceding fiscal year;
2. A corporation, the debt ratio of which is at least 200/100 as of the end of the immediately preceding fiscal year;
3. A corporation, the debt of which is larger than its asset as of the end of the immediately preceding fiscal year.
[This Article Newly Inserted by Presidential Decree No. 24902, Dec. 4, 2013]
 Article 58 (Business Plans and Budget)
(1) A business plan and budget to be presented to the board of directors by the president of the public corporation pursuant to Article 65 of the Act shall be established by reference to Articles 19 and 20.
(2) The president of the public corporation shall present each executive with the business plan and budget referred to in paragraph (1) not later than thirty days before the commencement of the board of directors: Provided, That the budget is altered under Article 65 (2) of the Act, it shall forward them by not later than seven days before the commencement of the board of directors. <Amended by Presidential Decree No. 17629, Jun. 19, 2002>
(3) Where the budget reported under Article 65 (3) of the Act is in violation of the Acts and subordinate statutes or is deemed to be in violation the common guiding principles for budget pursuant to Article 66-2 of the Act, the head of the local government may order its correction. <Amended by Presidential Decree No. 17629, Jun. 19, 2002>
(4) The president of the public corporation, in receipt of an order to make corrective measures under paragraph (3) shall promptly revise the budget and obtain a resolution of the board of directors according to such corrective order unless any special reason exists to the contrary.
 Article 58-2 (Examination of Feasibility of New Investment Business)
(1) "New investment business of a size not less than that prescribed by Presidential Decree" in Article 65-3 (1) of the Act means the following investment business: <Amended by Presidential Decree No. 27072, Mar. 30, 2016>
1. A corporation established by the Special Metropolitan City, a Metropolitan City, a Metropolitan Autonomous City, a Do or Special Self-Governing Province: A new investment business, the total operating expenses of which is at least 20 billion won;
2. A corporation established by a Si/Gun/Gu (referring to an autonomous Gu): A new investment business, the total operating expenses of which is at least 10 billion won.
(2) In examining the necessity and feasibility of a new investment business specified in subparagraphs of paragraph (1) pursuant to Article 65-3 (1) of the Act, the president of a corporation shall undergo a prior examination on the following matters by entrusting such examination to a specialized institution prescribed in paragraph (3): <Amended by Presidential Decree No. 27072, Mar. 30, 2016>
1. The adequacy of the new investment business;
2. Analysis of the earnings by new investment business;
3. Methods of securing financial resources;
4. Influences of the new investment business on the local economy.
(3) "Specialized institution satisfying the requirements prescribed by Presidential Decree, such as professional human resources, and examination and research capability" in Article 65-3 (2) of the Act means an institution that meets all the requirements prescribed in subparagraphs of Article 47 (4). <Newly Inserted by Presidential Decree No. 27072, Mar. 30, 2016>
[This Article Newly Inserted by Presidential Decree No. 24902, Dec. 4, 2013]
 Article 58-3 (Business Management in Real Names and Disclosure Thereof)
(1) With respect to a new investment business, the president of a corporation shall record and manage the following matters pursuant to the main sentence of Article 65-4 (1) of the Act: <Amended by Presidential Decree No. 28211, Jul. 26, 2017>
1. Name of the business;
2. Period of the business;
3. Major details of the business;
4. Affiliation, class and name of the person in charge;
5. Other matters determined by the Minister of the Interior and Safety.
(2) Upon finalization of a business plan, the president of a corporation shall disclose the matters prescribed in subparagraphs of paragraph (1) on the website referred to in Article 44-2 (4).
(3) Detailed matters necessary for the record and management prescribed in paragraph (1) and the disclosure prescribed in paragraph (2) shall be determined by the Minister of the Interior and Safety. <Amended by Presidential Decree No. 28211, Jul. 26, 2017>
[This Article Newly Inserted by Presidential Decree No. 24902, Dec. 4, 2013]
 Article 59 (Submittance of Statement of Settlement of Accounts)
“Documents prescribed by Presidential Decree” in Article 66 (2) of the Act means those documents under the subparagraphs of Article 36 (1) and (2).
 Article 60 (Common Criteria for Budget)
(1) The Minister of the Interior and Safety shall notify the head of the local government of the common criteria for budget prescribed in Article 66-2 (1) of the Act by no later than June 30 of the preceding year. <Amended by Presidential Decree No. 20741, Feb. 29, 2008; Presidential Decree No. 24425, Mar. 23, 2013; Presidential Decree No. 25751, Nov. 19, 2014; Presidential Decree No. 28211, Jul. 26, 2017>
(2) The head of the local government shall prepare a guiding principle for budgeting prescribed in Article 66-2 (2) of the Act and notify the head of the relevant corporation thereof by no later than July 31 of the preceding year.
[This Article Wholly Amended by Presidential Decree No. 18762, Mar. 31, 2005]
 Article 61 (Appropriation of Profits)
(1) A corporation shall accumulate at least one tenth of the profits remaining after making up for any loss carried over under Article 67 (1) 1 of the Act as a profit reserve fund until the said amount equals one half of its capital, and shall accumulate at least five tenth of the profits remaining after reserving the profit reserve fund as a reserve fund for the discharge of its liabilities: Provided, That where there is no outstanding balance of bonds of the corporation as of the end of each fiscal year, it may choose not to accumulate the reserve fund for the discharge of its liabilities.
(2) Where a corporation pays dividends pursuant to Article 67 (1) 4 of the Act, it may preferentially pay the dividends to investors (including foreigners and foreign corporations) other than the local government under Article 53 (2) of the Act, as prescribed by the articles of incorporation.
[This Article Wholly Amended by Presidential Decree No. 24902, Dec. 4, 2013]
 Article 62 (Issuance of Bonds)
(1) If a corporation intends to issue bonds prescribed in Article 68 (1) of the Act, it shall submit an application, stating the following matters, to the head of the relevant local government. This shall also apply where the head of a local government applies for approval to the Minister of the Interior and Safety pursuant to Article 68 (3) of the Act: <Amended by Presidential Decree No. 20741, Feb. 29, 2008; Presidential Decree No. 24425, Mar. 23, 2013; Presidential Decree No. 25751, Nov. 19, 2014; Presidential Decree No. 28211, Jul. 26, 2017>
1. Purpose of issuing bonds;
2. Timing for issuing bonds;
3. Gross amount of the bonds to be issued (where bonds are to be issued in several face values, gross amount of the bonds to be issued by face value);
4. Interest rate;
5. Method and deadline for redemption of the principals;
6. Method and deadline for paying the interests;
7. Method of subscription and underwriting.
(2) Limit of issuance of bonds which a public corporation may issue under Article 68 (1) of the Act shall be as follows: <Amended by Presidential Decree No. 22765, Mar. 29, 2011; Presidential Decree No. 24902, Dec. 4, 2013>
1. Not more than four times the amount of the net assets determined under Article 14 for a corporation operating a business falling under Article 2 (1) 7 and 8 of the Act;
2. Not more than two times the amount of the net assets determined under Article 14 for a corporation operating a business, other than the business falling under subparagraph 1.
(3) When a corporation intends to issue bonds for the purpose of Article 19 (1) 1 of the Act, it shall formulate and execute plans for improving its management.
(4) “Where bonds to be issued pursuant to paragraph (1) are in excess of the limit prescribed by Presidential Decree" in the former part of Article 68 (3) of the Act means any of the following cases: <Amended by Presidential Decree No. 21736, Sep. 21, 2009; Presidential Decree No. 24011, Jul. 31, 2012>
1. Where debt ratio after adding the estimated amount of bonds to be issued is at least 200/100 as at the time an application for approval for issuance of bonds is submitted;
2. Where a net loss has been reported in the last three or more consecutive years;
3. Where the estimated amount of bonds to be issued is at least 30 billion won.
(5) The bonds prescribed in Article 68 (1) of the Act shall state the following matters, and the president of the corporation shall put his/her name and seal, or sign thereon:
1. Bond number;
2. Title of the corporation;
3. Matters stipulated in paragraph (1) 3 through 6.
[This Article Wholly Amended by Presidential Decree No. 18762, Mar. 31, 2005]
 Article 63 (Bearing Expenses, etc. for Vicarious Execution)
(1) Where the public corporation intends to execute a project of the State or the local government vicariously pursuant to Article 71 (1) of the Act, it shall execute the project under contract on a commission basis.
(2) Where the public corporation performs a project of the State or local government vicariously pursuant to Article 71 (1) of the Act, the scope of any expenses which the State or the local government has to bear shall be as follows:
1. Expenses incurred in formulating a project plan, conducting a prior investigation, providing services, etc. necessary for the practical execution of the project;
2. Facility expenses, personnel expenses, and ancillary expenses required for the projects execution;
3. Expenses for management of facilities during the period from the termination of the project to the settlement of accounts or to the handing over of the facility;
4. Commissions for vicarious execution of the project;
5. Other expenses inevitably incurred for the execution of the project.
(3) Where the State or the local government bears expenses pursuant to Article 71 (1) of the Act, the public corporation shall in advance draft a plan for execution of a fund and present it to the State or local government; the State or local government shall make disbursements to the fund in preference to any other funds; where the State or local government is required to adjust the time of its disbursement, it shall first consult the public corporation.
(4) Where the public corporation has completed its vicarious execution, it shall without delay calculate expenses which the State or local government has been required to bear.
(5) Where it is particularly necessary to execute a project of the State or local government vicariously, the public corporation may allow a third person to execute part of the project with prior approval of the head of the local government.
 Article 64 (Public Notice, etc. of Business Management of Public Corporation)
With respect to the public notice, etc. of the business management of the public corporation, Articles 44 and 44-2 shall apply mutatis mutandis. In such cases, "manager" shall be deemed "president". <Amended by Presidential Decree No. 21736, Sep. 21, 2009>
 Article 65 (Payment of Allowances to Dispatched Public Officials, etc.)
The public corporation may pay the service allowance pursuant to the criteria for payments as set forth by the said corporation to the public officials who have been dispatched to the said corporation or who hold the concurrent duties pursuant to the provisions of Article 75-3 of the Act. <Amended by Presidential Decree No. 17629, Jun. 19, 2002>
 Article 66 (Establishment and Operation of Local Government Public Corporation)
Articles 47, 48 through 55, 56-2 through 56-4, 57 through 60, and 62 through 65 shall apply mutatis mutandis to the establishment and operation of a local government public corporation. In such cases, "corporation" shall be regarded as "local government public corporation", "president" as "president", and "bonds" as "bonds of the local government public corporation." <Amended by Presidential Decree No. 17629, Jun. 19, 2002; Presidential Decree No. 19925, Mar. 9, 2007; Presidential Decree No. 21736, Sep. 21, 2009>
 Article 67 (Bearing of Expenses, etc.)
Any person or entity who entrusts the local government public corporation with business and any person who is provided with service shall bear the expenses necessary for the entrusted business or the necessary commissions for the service.
CHAPTER III-2 INVESTED CORPORATION, ETC. OTHER THAN LOCAL GOVERNMENT-INVESTED PUBLIC CORPORATION AND LOCAL GOVERNMENT PUBLIC CORPORATION (Articles 67-2 and 67-3) Deleted.
CHAPTER IV MANAGEMENT EVALUATION AND MANAGEMENT DIAGNOSIS
 Article 68 (Evaluation of Management)
(1) The evaluation of management of local public enterprises prescribed in Article 78 (1) of the Act shall be conducted every year: Provided, That matters concerning the evaluation of management of local government-directly operated enterprises may be separately determined by the Minister of the Interior and Safety. <Amended by Presidential Decree No. 20741, Feb. 29, 2008; Presidential Decree No. 24425, Mar. 23, 2013; Presidential Decree No. 25751, Nov. 19, 2014; Presidential Decree No. 28211, Jul. 26, 2017>
(2) The Minister of the Interior and Safety or the head of a local government may, if deemed necessary to evaluate management prescribed in Article 78 (1) of the Act, perform evaluation by designating any of the following institutions as the institution of management evaluation: <Amended by Presidential Decree No. 17629, Jun. 19, 2002; Presidential Decree No. 20741, Feb. 29, 2008; Presidential Decree No. 24425, Mar. 23, 2013; Presidential Decree No. 25751, Nov. 19, 2014; Presidential Decree No. 27072, Mar. 30, 2016; Presidential Decree No. 28211, Jul. 26, 2017>
1. The Evaluation Institute of Regional Public Corporation prescribed in Article 78-4 of the Act;
2. Specialized institutions for management evaluation;
3. Accounting firms;
4. Other institutions recognized by the Minister of the Interior and Safety.
(3) The evaluation of management of local public enterprises shall commence when their auditing process is completed by certified public accountants pursuant to Articles 35 (3) and 66 (2) of the Act. In such cases, the evaluation of management of the public corporation or local government public corporation shall be completed within four months after the completion of their auditing process.
(4) Detailed standards for the evaluation of management shall be determined by the Minister of the Interior and Safety. <Amended by Presidential Decree No. 20741, Feb. 29, 2008; Presidential Decree No. 24425, Mar. 23, 2013; Presidential Decree No. 25751, Nov. 19, 2014; Presidential Decree No. 28211, Jul. 26, 2017>
 Article 68-2 Deleted. <by Presidential Decree No. 21736, Sep. 21, 2009>
 Article 69 (Documents to be Submitted)
"Other documents prescribed by Presidential Decree" in Article 78-2 (1) of the Act shall be as follows: <Amended by Presidential Decree No. 18762, Mar. 31, 2005; Presidential Decree No. 20741, Feb. 29, 2008; Presidential Decree No. 21736, Sep. 21, 2009; Presidential Decree No. 24425, Mar. 23, 2013; Presidential Decree No. 25751, Nov. 19, 2014; Presidential Decree No. 28211, Jul. 26, 2017>
1. Statement of settlement of accounts and auditing reports;
2. Business operation plans and business achievements reports;
3. An auditor's auditing report and where a disciplinary punishment, correction request, or improvement request, etc. prescribed in Articles 32 through 34 of the Board of Audit and Inspection Act was imposed or made, the details thereof;
4. The outcomes of the audit and inspection of a local government and where a correction request was made in accordance with Article 41 of the Local Autonomy Act and Article 51 of the Enforcement Decree of the same Act, the details thereof;
5. Other important matters concerning management, as requested by the Minister of the Interior and Safety.
 Article 70 (Objects, etc. of Management Diagnosis)
(1) "Other local public enterprises prescribed by Presidential Decree" in Article 78-2 (2) 4 of the Act means any of the followings: <Amended by Presidential Decree No. 20741, Feb. 29, 2008; Presidential Decree No. 24425, Mar. 23, 2013; Presidential Decree No. 25751, Nov. 19, 2014; Presidential Decree No. 28211, Jul. 26, 2017>
1. Local public enterprises, the management objective of which is unreasonably established;
2. Local public enterprises, the personnel and organization management of which are inefficient;
3. Local public enterprises, the financial structure of which is not sound;
4. Other local public enterprises acknowledged by the Minister of the Interior and Safety that requires management diagnosis.
(2) The Minister of the Interior and Safety in receipt of documents, such as evaluation reports on management, etc. in accordance with Article 78-2 (1) of the Act shall select enterprises for a management diagnosis within 60 days after the receipt of the said documents. <Amended by Presidential Decree No. 20741, Feb. 29, 2008; Presidential Decree No. 24425, Mar. 23, 2013; Presidential Decree No. 25751, Nov. 19, 2014; Presidential Decree No. 28211, Jul. 26, 2017>
 Article 71 (Diagnosis Team for Management of Local Public Enterprises)
(1) When necessary for conducting management diagnosis prescribed in Article 78-2 (2) of the Act, the Minister of the Interior and Safety may form and operate a diagnosis team for the management of local public enterprises (hereinafter referred to as the "management diagnosis team") consisting of people who are either commissioned or appointed from among the following persons. In such cases, the Minister of the Interior and Safety may entrust diagnosis of the management of local public enterprises to an external professional agency: <Amended by Presidential Decree No. 20741, Feb. 29, 2008; Presidential Decree No. 24425, Mar. 23, 2013; Presidential Decree No. 25751, Nov. 19, 2014; Presidential Decree No. 28211, Jul. 26, 2017>
1. Public officials in charge of business concerning local public enterprises;
2. Those who are in a position higher than the assistant professorship of a college or university, and equipped with professional knowledge in the field of management of public enterprises and other related fields;
3. Certified public accountants with at least five years of business practices in the field of accounting;
4. Other people with abundant experience and professional knowledge in the field of management of public enterprises and other related fields.
(2) The Minister of the Interior and Safety may defray, within budgetary limits, expenses incurred in relation to the organization and operation of the management diagnosis team. In such cases, the Minister of the Interior and Safety may have the relevant local public enterprise bear part of the expenses. <Amended by Presidential Decree No. 20741, Feb. 29, 2008; Presidential Decree No. 24425, Mar. 23, 2013; Presidential Decree No. 25751, Nov. 19, 2014; Presidential Decree No. 28211, Jul. 26, 2017>
(3) Where the management diagnosis team requests necessary materials to perform a management diagnosis, the relevant local public enterprise shall comply therewith, except in extenuating circumstances.
(4) The management diagnosis team shall be deemed disorganized upon the completion of its given task.
 Article 71-2 (Requisites for Demanding Dissolution of Financially-Troubled Local Public Enterprises)
"Cases prescribed by Presidential Decree" in the main sentence of Article 78-3 (1) of the Act other than each subparagraph means cases where a corporation or local government public corporation falls under any of the following cases as a result of judgment based on the data for the settlement of accounts for the immediately preceding year: <Amended by Presidential Decree No. 28211, Jul. 26, 2017>
1. Where the debt ratio is at least 400/100;
2. Where the full amount of capital is impaired;
3. Where ratio of impaired capital [referring to an amount calculated by dividing the amount obtained by deducting total stockholders equity (where any loss has occurred inevitably to perform statutory duties, referring to the amount calculated by reflecting such loss as prescribed by the Minister of Interior and Safety) from the capital by the capital] of two consecutive fiscal years exceeds 50/100.
[This Article Newly Inserted by Presidential Decree No. 27072, Mar. 30, 2016]
 Article 72 (Organization of Policy Committee for Local Public Enterprises)
(1) The chairperson of the policy committee for local public enterprises pursuant to Article 78-5 (3) of the Act (hereinafter referred to as the "policy committee") shall be the Vice Minister of the Interior and Safety, and members shall be appointed or entrusted by the Minister of the Interior and Safety, from among any of the following persons: <Amended by Presidential Decree No. 24425, Mar. 23, 2013; Presidential Decree No. 25751, Nov. 19, 2014; Presidential Decree No. 27072, Mar. 30, 2016; Presidential Decree No. 28211, Jul. 26, 2017>
1. Experts who have abundant experience in relation to management evaluation and management diagnosis;
2. Certified public accountants who have job experience of at least five years;
3. Persons who assume the position of an associate professor or higher at a school falling under any of subparagraphs 1 through 6 of Article 2 of the Higher Education Act with specialized knowledge in the management of public enterprises and any other related fields;
4. Public officials of Grade III or higher who take charge of the business affairs concerning local public enterprises, or public officials in general service who belong to the Senior Civil Service.
(2) The term of office of entrusted members shall be two years, and may be reappointed only once.
(3) The term of office of the members who are newly entrusted due to the resignation, etc. of entrusted members, shall be the remaining term of the predecessor.
[This Article Wholly Amended by Presidential Decree No. 21736, Sep. 21, 2009]
 Article 72-2 (Removal or Dismissal of Members)
Where a member referred to in any subparagraph of Article 72 (1) falls under any of the following cases, the Minister of the Interior and Safety may remove or dismiss such member from his/her office: <Amended by Presidential Decree No. 28211, Jul. 26, 2017>
1. Where he/she becomes incapable of performing his/her duties due to mental handicap;
2. Where there is any irregularity related to his/her duties;
3. Where he/she is deemed unsuitable for a member due to delinquency of duties, injury to dignity, or any other ground;
4. Where the member himself/herself discloses that it is impracticable for him/her to perform his/her duties.
[This Article Newly Inserted by Presidential Decree No. 27072, Mar. 30, 2016]
 Article 73 (Management of Policy Committee)
(1) The chairperson shall convene a meeting of the policy committee and preside over the meeting.
(2) Meetings of the policy committee shall commence with the attendance of a majority of registered members and shall make decisions by affirmative votes of a majority of members present.
(3) The chairperson of the policy committee may, when deemed necessary, have a public official of a local government, an executive officer of a local public enterprise, or other related persons attend the meeting and make a statement.
(4) A subcommittee may be established under the policy committee, in order to manage the affairs of the policy committee efficiently. In such cases, the chairperson and members of the subcommittee shall be appointed by the chairperson of the policy committee from among the members of the policy committee.
(5) The policy committee shall have one executive secretary to manage the affairs of the committee.
(6) The executive secretary shall be the director of the Ministry of the Interior and Safety who takes charge of the affairs concerning local public enterprises. <Amended by Presidential Decree No. 24425, Mar. 23, 2013; Presidential Decree No. 25751, Nov. 19, 2014; Presidential Decree No. 28211, Jul. 26, 2017>
[This Article Wholly Amended by Presidential Decree No. 21736, Sep. 21, 2009]
 Article 74 (Allowances, etc.)
(1) Allowances and traveling expenses may be paid to members, etc. of the policy committee within budgetary limits: Provided, That this shall not apply where a member who is a public official attends the policy committee in direct connection to the affairs under his/her charge.
(2) Matters necessary for the management of the policy committee, other than those prescribed by this Decree, shall be prescribed by the Minister of the Interior and Safety. <Amended by Presidential Decree No. 24425, Mar. 23, 2013; Presidential Decree No. 25751, Nov. 19, 2014; Presidential Decree No. 28211, Jul. 26, 2017>
[This Article Wholly Amended by Presidential Decree No. 21736, Sep. 21, 2009]
 Article 75 (Management Improvement Orders Issued after Management Diagnosis)
In accordance with Article 78-2 (3) of the Act, the Minister of the Interior and Safety may issue the following management improvement orders: <Amended by Presidential Decree No. 20741, Feb. 29, 2008; Presidential Decree No. 24425, Mar. 23, 2013; Presidential Decree No. 25751, Nov. 19, 2014; Presidential Decree No. 28211, Jul. 26, 2017>
1. Changes in personnel management, such as a salary reduction, layoff, etc., with respect to the executive officers and employees of the relevant local public enterprise;
2. Organizational downsizing, reorganization of enterprise set-ups, and human resources restructuring;
3. Liquidation and privatization of a corporation;
4. Other matters necessary for improvement of management.
CHAPTER V SUPPLEMENTARY PROVISIONS
 Article 76 (Contributions to Evaluation Institute of Regional Public Corporation)
(1) The chairperson of the Evaluation Institute of Regional Public Corporation established under Article 78-3 (1) of the Act (hereafter referred to as the "Evaluation Institute") shall, in accordance with the following standards, draw up a proposal for request for contributions classifying them into all and each of local governments and local public enterprises, and shall determine the size of contributions by no later than July 31 each year following consultation with the Minister of the Interior and Safety: <Amended by Presidential Decree No. 28211, Jul. 26, 2017>
1. Compilation standards of local government contributions: Fiscal capacity, number of public enterprises, etc.;
2. Compilation standards of local public enterprises: Sales amount, number of employees, assets, etc.
(2) Before holding a consultation prescribed in paragraph (1), the chairperson of the Evaluation Institute shall submit records of collection of contributions and business execution, business plan for the following year, etc. to the Minister of the Interior and Safety. <Amended by Presidential Decree No. 28211, Jul. 26, 2017>
(3) In order for the amount of contributions which has been consulted with the Minister of the Interior and Safety under paragraph (1) to be compiled in the budgets of the local government and local public enterprises, the chairperson of the Evaluation Institute shall submit a request for contributions to the relevant local government and local public enterprises by no later than August 31 each year together with the following documents: <Amended by Presidential Decree No. 28211, Jul. 26, 2017>
1. A business plan for the following fiscal year;
2. An estimated statement of financial position and an estimated profit and loss statement for the following fiscal year.
(4) Upon finalization of a budget for contributions, the head of the relevant institution, in receipt of a request for contribution paragraph (3), shall notify the Evaluation Institute thereof.
(5) Where the Evaluation Institute intends to receive contributions finalized and notified under paragraph (4), it shall submit an application for payment of contributions together with a fund implementation plan to the relevant institution.
(6) The Evaluation Institute shall use the contributions for its original business and operation expenses.
(7) The Evaluation Institute shall appropriate the surplus which has occurred after settlement of accounts to its fundamental property or operation fund.
(8) The chairperson of the Evaluation Institute shall file a report on the matters concerning the payment and use of contributions with the Minister of the Interior and Safety within two months from the end of each fiscal year. <Amended by Presidential Decree No. 28211, Jul. 26, 2017>
[This Article Wholly Amended by Presidential Decree No. 27072, Mar. 30, 2016]
 Article 76-2 (Hearing Opinions of Residents, etc.)
(1) Where the head of a local government hears opinions of residents, etc. for the ground specified in Article 78-6 (1) 1 of the Act, he/she shall hold a public hearing of the residents' opinions before holding a meeting of deliberative committee prescribed in Article 47 (2). In such cases, he/she shall, before holding a public hearing of the opinions of residents, disclose in advance the outcomes of the examination of the feasibility conducted under Article 49 (3) of the Act on the website referred to in Article 44-2 (4) and keep a copy thereof in an open place, such as a community center, for the residents to inspect it.
(2) Where the head of a local government hears opinions of residents, etc. for the ground specified in Article 78-6 (1) 2 of the Act, he/she shall hold a public hearing of residents' opinions within 60 days from the date on which he/she receives an order to improve management or a demand for dissolution from the Minister of the Interior and Safety. <Amended by Presidential Decree No. 28211, Jul. 26, 2017>
(3) Where the head of a local government intends to hold a public hearing of residents' opinions prescribed in paragraph (1) or (2), he/she shall publicly announce the purpose, scheduled date, place, etc. of the public hearing by no later than 15 days before the scheduled date thereof.
[This Article Newly Inserted by Presidential Decree No. 27072, Mar. 30, 2016]
 Article 77 Deleted. <by Presidential Decree No. 17629, Jun. 19, 2002>
 Article 78 (Reporting, etc.)
(1) Where the business operated by a local government becomes to be governed, or not governed, as a local government-directly operated enterprise pursuant to Article 2 of the Act, the head of the local government shall report such fact to the Minister of the Interior and Safety. <Amended by Presidential Decree No. 20741, Feb. 29, 2008; Presidential Decree No. 24425, Mar. 23, 2013; Presidential Decree No. 25751, Nov. 19, 2014; Presidential Decree No. 28211, Jul. 26, 2017>
(2) The head of the local government shall report, within ten days from the date the relevant reasons occurred, to the Minister of the Interior and Safety on the following matters: <Amended by Presidential Decree No. 17629, Jun. 19, 2002; Presidential Decree No. 20741, Feb. 29, 2008; Presidential Decree No. 24425, Mar. 23, 2013; Presidential Decree No. 25751, Nov. 19, 2014; Presidential Decree No. 28211, Jul. 26, 2017>
1. Matters concerning the establishment of a local government-invested public corporation and a local government public corporation prescribed in Articles 49 (1) and 76 (1) of the Act;
2. Matters concerning the joint establishment of a local government-invested public corporation and a local government public corporation prescribed in Articles 50 (1) and 76 (2) of the Act;
3. Matters concerning the alteration of the articles of association of a local government-invested public corporation and a local government public corporation prescribed in Articles 56 (3) and 76 (2) of the Act;
4. Matters concerning the appointment and dismissal of the president (chief director) and auditors of a local government-invested public corporation and a local government public corporation prescribed in Articles 58 (2) and 76 (2) of the Act;
4-2. Deleted; <by Presidential Decree No. 25621, Sep. 24, 2014>
5. Outcomes of management improvement measures taken pursuant to Article 78-2 (3) of the Act;
6. Deleted; <by Presidential Decree No. 17629, Jun. 19, 2002>
7. Other matters concerning such important changes as liquidation or privatization of a local government-invested public corporation or a local government public corporation.
(3) When the head of a Si/Gun/autonomous Gu intends to file a report prescribed in paragraphs (1) and (2) with the Minister of the Interior and Safety, he/she shall file such report via a Mayor/Do Governor who has jurisdiction over such Si/Gun/Gu. <Amended by Presidential Decree No. 20741, Feb. 29, 2008; Presidential Decree No. 24425, Mar. 23, 2013; Presidential Decree No. 25751, Nov. 19, 2014; Presidential Decree No. 28211, Jul. 26, 2017>
(4) For the purpose of local public enterprises' management pursuant to the basic principle prescribed in Article 3 of the Act, the Minister of the Interior and Safety may give advice, recommendation, or guidance thereto, and request such enterprises to submit the necessary data. <Amended by Presidential Decree No. 20741, Feb. 29, 2008; Presidential Decree No. 24425, Mar. 23, 2013; Presidential Decree No. 25751, Nov. 19, 2014; Presidential Decree No. 28211, Jul. 26, 2017>
 Article 78-2 (Methods and Procedures for Organizational Change)
(1) When the president of a corporation or the president of a local government public corporation notifies interested parties, including creditors, of the fact of the organizational change prescribed in Article 80 (4) of the Act, he/she shall publicly announce that they may file an objection, if any, to the organizational change, fixing a period of at least one month, and separately notify such fact to every creditor whom he/she knows. In such cases, such public announcement shall be made by posting it on the website, etc. as determined by the Minister of the Interior and Safety. <Amended by Presidential Decree No. 28211, Jul. 26, 2017>
(2) If any creditor has filed an objection within the period referred to in paragraph (1), the corporation or the local government public corporation shall repay the debt to him/her or provide security corresponding thereto, or entrust property corresponding thereto with a trust company for such purpose.
[This Article Newly Inserted by Presidential Decree No. 27072, Mar. 30, 2016]
 Article 78-3 (Management of Personally Identifiable Information)
The head of a local government, the president of a corporation or the president of a local government public corporation may manage data which contains resident registration numbers prescribed in subparagraph 1 of Article 19 of the Enforcement Decree of the Personal Information Protection Act, if it is unavoidable to perform the following affairs:
1. Affairs related to the transaction of a real estate necessary to perform the business specified in Article 2 (1) and (2) of the Act, and affairs related to the inspection, copies, certified copies, and issuance of the copies, of data incidental thereto;
2. Affairs related to discount, reduction or exemption of fees incidental to the business specified in Article 2 (1) and (2) of the Act;
3. Affairs related to the housing welfare business for vulnerable low-income social group among the housing business specified in Article 2 (1) 7 of the Act;
4. Affairs related to the appointment, etc. of executive officers prescribed in Article 58 of the Act (including application mutatis mutandis under Article 76 (2) of the Act);
5. Affairs related to the verification of disqualifications for executive officers prescribed in Article 60 of the Act (including application mutatis mutandis under Article 76 (2) of the Act);
6. Affairs related to the appointment and dismissal of employees prescribed in Article 63 of the Act (including application mutatis mutandis under Article 76 (2) of the Act);
7. Affairs related to the dismissal of executive officers of a financially troubled local public enterprise prescribed in Article 78-2 of the Act.
[This Article Newly Inserted by Presidential Decree No. 26061, Jan. 28, 2015]
 Article 79 (Criteria for Imposition of Fines for Negligence)
The criteria for the imposition of fines for negligence pursuant to Article 82 (1) of the Act shall be as prescribed in attached Table 2. <Amended by Presidential Decree No. 26061, Jan. 28, 2015>
[This Article Wholly Amended by Presidential Decree No. 22765, Mar. 29, 2011]
ADDENDA
(1) This Decree shall enter into force on April 1, 1999.
(2) (Transitional Measures concerning Deferred Assets, etc.) Such items which were appropriated either as deferred assets or as intangible assets in accordance with the former provisions, and at the same time, are needed to be reclassified for their accounts upon the amendment of this Decree, shall be reclassified according to the accounts classification system of this Decree. In such cases, the business-opening expenses according to the former provisions shall be reindicated as business-establishing expenses.
(3) (Application Examples concerning Juristic Person for Business Consultation) With respect to juristic persons for business consultation having been established before this Decree enters into force, the former provisions shall apply until December 31, 1999.
ADDENDA <Presidential Decree No. 17629, Jun. 19, 2002>
(1) (Enforcement Date) This Decree shall enter into force on the date of its promulgation.
(2) (Application Example concerning Computation Method of Fees) The amendments to Article 18 (2) shall apply from the first municipal ordinances to be enacted or amended after this Decree enters into force, in order to fix the fees.
(3) (Application Example concerning Plans for Management Improvement) The amendments to Article 62 (2) shall apply from the first bonds to be issued after this Decree enters into force.
ADDENDUM <Presidential Decree No. 18312, Mar. 17, 2004>
This Decree shall enter into force on the date of its promulgation.
ADDENDUM <Presidential Decree No. 18762, Mar. 31, 2005>
This Decree shall enter into force on the date of its promulgation.
ADDENDA <Presidential Decree No. 19513, Jun. 12, 2006>
Article 1 (Enforcement Date)
This Decree shall enter into force on July 1, 2006.
Articles 2 through 4 Omitted.
ADDENDA <Presidential Decree No. 19925, Mar. 9, 2007>
(1) (Enforcement Date) This Decree shall enter into force on the date of its promulgation.
(2) (Application Example concerning Standards for Reappointing and Dismissing President) The amended provisions of Article 56-2 shall apply to the president who makes any contract on or after the date when this Decree enters into force.
ADDENDA <Presidential Decree No. 20306, Oct. 4, 2007>
Article 1 (Enforcement Date)
This Decree shall enter into force on the date of its promulgation.
Articles 2 and 3 Omitted.
ADDENDA <Presidential Decree No. 20741, Feb. 29, 2008>
Article 1 (Enforcement Date)
This Decree shall enter into force on the date of its promulgation. (Proviso Omitted.)
Articles 2 through 6 Omitted.
ADDENDA <Presidential Decree No. 20919, Jul, 17, 2008>
Article 1 (Enforcement Date)
This Decree shall enter into force on the date of its promulgation.
Article 2 (Applicability to Organization of Deliberation Committee to Examine Feasibility of Establishment, Investment and Contribution)
The amended provisions of Articles 47 (6) and 67-2 (4) shall apply to the case in which the deliberation committee is organized for the first time after this Decree enters into force.
ADDENDA <Presidential Decree No. 21736, Sep. 21, 2009>
Article 1 (Enforcement Date)
This Decree shall enter into force on October 2, 2009.
Article 2 (Applicability)
The amended provisions of Article 62 (4) shall apply starting from the first bonds to be issued after this Decree enters into force.
Article 3 (Transitional Measures)
The former provisions shall apply, notwithstanding the amended provisions of Articles 56-3 and 56-4, to the recommendation of candidates for a president, the procedure of which is underway as at the time this Decree enters into force.
ADDENDA <Presidential Decree No. 22765, Mar. 29, 2011>
Article 1 (Enforcement Date)
This Decree shall enter into force on the date of its promulgation.
Article 2 (Special Cases concerning Deadline for Registration of Appointment of Agents)
Notwithstanding the amended provisions of Article 57-2, when the president of any public corporation appoints his/her agent before this Decree enters into force, he/she may register the appointment of his/her agent within two weeks after this Decree enters into force.
Article 3 (Transitional Measures concerning Limits on Bond Issuance)
Limits on bond issuance which has received approval from the heads of local governments or from the Minister of Public Administration and Security in advance pursuant to Article 68 (1) or (3) of the Act before this Decree enters into force, shall be governed by the previous provisions, notwithstanding the amended provisions of Article 62 (2) 1 and 2.
Article 4 (Transitional Measures concerning Fines for Negligence)
(1) Standards for the imposition of fines for negligence against acts committed before this Decree enters into force shall be governed by the previous provisions, notwithstanding the amended provisions of Article 79 and the attached Table.
(2) Imposition of fines for negligence against acts committed before this Decree enters into force shall not be included in the calculation of the number of violations pursuant to the amended provisions of the attached Table.
ADDENDA <Presidential Decree No. 23496, Jan. 6, 2012>
Article 1 (Enforcement Date)
This Decree shall enter into force on March 2, 2012.
Article 2 Omitted.
ADDENDA <Presidential Decree No. 24011, Jul. 31, 2011>
Article 1 (Enforcement Date)
This Decree shall enter into force on the date of its promulgation.
Article 2 (Applicability to Preparation, etc. of Minutes)
The amended provisions of Article 56-3 (9) shall begin to apply to the recommendation committee to be held after this Decree enters into force.
Article 3 (Transitional Measures concerning Expansion of Scope of Bonds or Bonds of Local Government Public Corporations Subject to Approval)
Where an application has been already submitted pursuant to the former part of Article 62 (1) (including cases in which such provisions apply mutatis mutandis as prescribed in Article 66) as at the time this Decree enters into force, the previous provisions shall apply to standards for the estimated amount of bonds or bonds of local government public corporations subject to approval from the Minister of Security and Public Administration, notwithstanding the amended provisions of Article 62 (4).
ADDENDA <Presidential Decree No. 24425, Mar. 23, 2013>
Article 1 (Enforcement Date)
This Decree shall enter into force on the date of its promulgation: Provided, That the part amending Presidential Decree which was promulgated before this Decree enters into force, but the enforcement date of which has not arrived, from among the Presidential Decrees amended pursuant to Article 6 of the Addenda, shall enter into force on the date when the relevant Presidential Decree enters into force.
Articles 2 through 6 Omitted.
ADDENDA <Presidential Decree No. 24902, Dec. 4, 2013>
Article 1 (Enforcement Date)
This Decree shall enter into force on December 5, 2013.
Article 2 (Applicability to Formulation of Medium- to Long-Term Financial Management Plans)
The amended provisions of Article 57-5 shall enter into force on the 2014 business year.
Article 3 (Transitional Measures concerning Limit of Issuance Bonds)
Notwithstanding the amended provisions of Article 62 (2) 1, the limit of issuance of bonds where the approval for the issuance of bonds is obtained or an application for the approval for the issuance of bonds is submitted to the head of a local government before this Decree enters into force shall be subject to the former provisions.
ADDENDA <Presidential Decree No. 25621, Sep. 24, 2014>
Article 1 (Enforcement Date)
This Decree shall enter into force on September 25, 2014.
Articles 2 through 5 Omitted.
ADDENDA <Presidential Decree No. 25751, Nov. 19, 2014>
Article 1 (Enforcement Date)
This Decree shall enter into force on the date of its promulgation: Provided, That the amended parts of the Presidential Decrees which were promulgated before this Decree enters into force but the enforcement dates of which have not arrived yet among the Presidential Decrees amended pursuant to Article 5 of the Addenda shall respectively enter into force on the enforcement dates of such Presidential Decrees.
Articles 2 through 5 Omitted.
ADDENDUM <Presidential Decree No. 26061, Jan. 28, 2015>
This Decree shall enter into force on the date of its promulgation: Provided, That the amended provisions of Articles 57-5, 57-6, and attached Table 1 shall enter into force on the date when the Revised Agreement on Government Procurement takes its effect upon the Republic of Korea.
ADDENDUM <Presidential Decree No. 27072, Mar. 30, 2016>
This Decree shall enter into force on the date of its promulgation: Provided, That the amended provisions of Article 78-2 shall enter into force on June 16, 2016.
ADDENDA <Presidential Decree No. 27556, Oct. 25, 2016>
Article 1 (Enforcement Date)
This Decree shall enter into force on December 1, 2016.
Article 2 Omitted.
ADDENDA <Presidential Decree No. 28211, Jul. 26, 2017>
Article 1 (Enforcement Date)
This Decree shall enter into force on the date of its promulgation: Provided, That amendments to the Presidential Decrees which were promulgated before this Decree enters into force but the enforcement dates of which have not yet arrived, among the Presidential Decrees amended by Article 8 of the Addenda, shall enter into force on the enforcement dates of the respective Presidential Decrees.
Articles 2 through 8 Omitted.
ADDENDA <Presidential Decree No. 28586, Jan. 16, 2018>
Article 1 (Enforcement Date)
This Decree shall enter into force on January 18, 2018. (Proviso Omitted.)
Articles 2 through 8 Omitted.