LOCAL EDUCATION SUBSIDY ACT
Act No. 2330, Dec. 28, 1971
Amended by Act No. 3540, Mar. 20, 1982
Act No. 3561, Apr. 3, 1982
Act No. 4047, Dec. 31, 1988
Act No. 4268, Dec. 27, 1990
Act No. 4303, Dec. 31, 1990
Act No. 4541, Mar. 6, 1993
Act No. 4687, Dec. 31, 1993
Act No. 5064, Dec. 29, 1995
Act No. 5454, Dec. 13, 1997
Act No. 5529, Feb. 28, 1998
Act No. 5651, Jan. 21, 1999
Act No. 5982, May 24, 1999
Act No. 6213, Jan. 28, 2000
Act No. 6331, Dec. 30, 2000
Act No. 6400, Jan. 29, 2001
Act No. 6522, Dec. 19, 2001
Act No. 7251, Dec. 30, 2004
Act No. 7328, Jan. 5, 2005
Act No. 8148, Dec. 30, 2006
Act No. 8540, Jul. 20, 2007
Act No. 8852, Feb. 29, 2008
Act No. 9923, Jan. 1, 2010
Act No. 10219, Mar. 31, 2010
Act No. 10221, Mar. 31, 2010
Act No. 11690, Mar. 23, 2013
Act No. 12153, Jan. 1, 2014
Act No. 12854, Dec. 23, 2014
Act No. 14157, May 29, 2016
The purpose of this Act is to make a contribution to the balanced development of education by allowing the State to provide, in whole or in part, the financial resources necessary for the establishment and operation of educational institutions and educational administrative institutions (including affiliated organizations; hereinafter the same shall apply) to the local government.
The definitions of the terms used in this Act shall be as follows: <Amended by Act No. 5064, Dec. 29, 1995>
| 1. | The term "standard amount of financial demand" means the amount of the financial demand for local education and its administrative operation, which is estimated under Article 6; |
| 2. | The term "standard amount of financial revenue" means the amount of all of the financial income with respect to education, science, technology, physical education, and other academic sciences (hereinafter referred to as the "education and academic sciences") which is estimated under Article 7; |
| 3. | The term "unit of measurement" means the unit by which the amount of each department of the local educational administration is measured; |
| 4. | The term "expense per unit" means the amount per each unit of measurement, which is established in order to estimate the standard amount of financial demand. |
| Article 3 (Kinds and Financial Resources of Subsidies) |
| (1) | The subsidies which the State grants to local governments for the purposes prescribed in Article 1 (hereinafter referred to as the "subsidies") shall be divided into general subsidies and special subsidies. |
| (2) | The financial resources of subsidies shall consist of the sum of the following amounts: <Amended by Act No. 4303, Dec. 31, 1990; Act No. 5454, Dec. 13, 1997; Act No. 5982, May 24, 1999; Act No. 6213, Jan. 28, 2000; Act No. 6400, Jan. 29, 2001; Act No. 7251, Dec. 30, 2004; Act No. 7328, Jan. 5, 2005; Act No. 8148, Dec. 30, 2006; Act No. 9923, Jan. 1, 2010; Act No. 12854, Dec. 23, 2014> |
| 1. | Deleted; <by Act No. 7251, Dec. 30, 2004> |
| 2. | The amount equivalent to 2,027/10,000 of the sum of the internal taxes in the year concerned (excluding object tax and comprehensive real estate tax, 20/100 of the total amount of individual consumption tax imposed on tobacco and the amount of tax items to be used for financial resources of the special account in accordance with other Acts; hereinafter the same shall apply); |
| 3. | The amount equivalent to the total revenues of the education tax of the year concerned in accordance with the Education Tax Act. |
| (3) | The financial resources of general subsidies shall consist of the total amount determined by paragraph (2) 3 and the amount equivalent to 96/100 of the amount determined by subparagraph 2 of the same paragraph, and the financial resources of special subsidies shall be the amount equivalent to 4/100 of the amount determined by paragraph (2) 2. <Amended by Act No. 4303, Dec. 31, 1990; Act No. 7251, Dec. 30, 2004> |
| (4) | Deleted. <by Act No. 7251, Dec. 30, 2004> |
| Article 4 (Revision of Subsidy Rates) |
| (1) | When there are any remarkable fluctuations in demand for personnel expenses in the local educational finance due to any unavoidable cause, such as increase or decrease of teachers, etc. in compulsory educational institutions, the State shall revise the subsidy rates referred to in Article 3 (2) 2 by taking account of increases, etc. in subsidies, following an increase of internal taxes. |
| (2) | Where the subsidy rates are to be revised in accordance with paragraph (1), matters necessary for the methods of subsidy, etc. shall be prescribed by Presidential Decree. |
[This Article Newly Inserted by Act No. 7251, Dec. 30, 2004]
| Article 5 (Granting of General Subsidies) |
| (1) | The Minister of Education shall grant the general subsidies in its total amount to the local government whose standard amount of financial revenue is short of the standard amount of financial demand, on the basis of the amount of the deficiency. <Amended by Act No. 8852, Feb. 29, 2008; Act No. 11690, Mar. 23, 2013> |
| (2) | Where the Minister of Education intends to grant the general subsidies in accordance with paragraph (1), he/she shall notify the heads of educational administrative institutions in the competent Special Metropolitan City, Metropolitan Cities, Dos and Special Self-Governing Provinces (hereinafter referred to as the "Cities/Dos") of the decisions of the said grants. In such cases, the Minister of Education shall prepare the basis of computation of general subsidies, particulars by local government and related data and forward them to the heads of educational administrative institutions in each City/Do. <Amended by Act No. 8148, Dec. 30, 2006; Act No. 8852, Feb. 29, 2008; Act No. 11690, Mar. 23, 2013> |
[This Article Wholly Amended by Act No. 7251, Dec. 30, 2004]
| Article 5-2 (Granting of Special Subsidies) |
| (1) | The Minister of Education shall grant the special subsidies in accordance with the classifications listed in each of the following subparagraphs: Provided, That where any remainder is expected after using the amount as referred to in subparagraph 3, the Minister of Education may use it to help pay for the activities of the local government which has an excellent record of operating the local educational administration and local educational finance: <Amended by Act No. 8148, Dec. 30, 2006; Act No. 8852, Feb. 29, 2008; Act No. 11690, Mar. 23, 2013> |
| 1. | When there is a special financial demand by formulating a financial support plan separately as the national policy project relating to education to be performed throughout the nation as referred to in Article 58 of the Local Finance Act: Amount equivalent to 60/100 of the financial resource of special subsidies; |
| 2. | When there is a pending demand for special local education which is impossible to catch by the method of computing the standard amount of financial demand: Amount equivalent to 30/100 of the financial resource of special subsidies; |
| 3. | When there is a special financial demand or a decrease of financial revenue due to a disaster occurred after the deadline for computing the general subsidies: Amount equivalent to 10/100 of the financial resource of special subsidies. |
| (2) | Where the heads of educational administrative institutions of Cities/Dos file applications for special subsidies due to causes falling under any of paragraph (1) 2 and 3, the Minister of Education shall examine them and grant the subsidies. Where the causes falling under paragraph (1) 1 occur or where the Minister of Education deems it necessary, the special subsidies may be granted by setting a specific standard, even if there is no application. <Amended by Act No. 8852, Feb. 29, 2008; Act No. 11690, Mar. 23, 2013> |
| (3) | Conditions may be attached to using the special subsidies as referred to in paragraph (1) or the uses thereof may be restricted. |
| (4) | When the heads of educational administrative institutions of Cities/Dos intend to use the special subsidies by changing the conditions or uses as referred to in paragraph (3), they shall obtain prior approval from the Minister of Education. <Amended by Act No. 8852, Feb. 29, 2008; Act No. 11690, Mar. 23, 2013> |
| (5) | Where the heads of educational administrative institutions of Cities/Dos use the special subsidies in violation of the conditions or uses as referred to in paragraph (3) or fail to use them for not less than two years, the Minister of Education may order the heads to return the subsidies or reduce the amount of the special subsidies to be granted subsequently. <Amended by Act No. 8852, Feb. 29, 2008; Act No. 11690, Mar. 23, 2013> |
| (6) | Matters necessary for the procedures, such as the criteria for choosing exemplary local governments as referred to in the proviso to paragraph (1), choosing method and the time of granting the special subsidies, shall be prescribed by Presidential Decree. |
[This Article Newly Inserted by Act No. 7251, Dec. 30, 2004]
| Article 6 (Standard Amount of Financial Demand) |
| (1) | The standard amount of financial demand shall be the total amount obtained by multiplying the expense per unit by the number of measurement unit by each measurement item. <Amended by Act No. 7251, Dec. 30, 2004> |
| (2) | The measurement items and the measurement unit shall be prescribed by Presidential Decree, and the expense per unit shall be determined by Ordinance of the Ministry of Education within the criteria prescribed by Presidential Decree, by taking account of the fluctuations in the prices of commodities. <Amended by Act No. 7251, Dec. 30, 2004; Act No. 8852, Feb. 29, 2008; Act No. 11690, Mar. 23, 2013> |
| Article 7 (Standard Amount of Financial Revenue) |
| (1) | The standard amount of financial revenue shall consist of the expected amount of income of the special account of education expenses of local governments relating to the education and academic sciences, including the transferred money from the general account under Article 11. |
| (2) | Out of the expected amount of income as referred to in paragraph (1), financial resources that derive from local taxes shall consist of the amount computed based on the standard tax rates as referred to in Article 2 (1) 6 of the Framework Act on Local Taxes, and the difference between the computed amount and the settlement amount shall be settled when the standard finance revenue of the year after the subsequent year is computed, and the method of calculating other expected amounts shall be prescribed by Presidential Decree. <Amended by Act No. 8148, Dec. 30, 2006; Act No. 10219, Mar. 31, 2010> |
[This Article Wholly Amended by Act No. 7251, Dec. 30, 2004]
| Article 8 (Adjustment, etc. of Subsidies) |
| (1) | When the subsidies have been unjustly granted due to mistakes or falsified data required for computation, the Minister of Education shall reduce the amount equivalent to the portion that exceeds the amount of subsidies receivable lawfully by the competent Cities/Dos from the subsidies to be granted subsequently. <Amended by Act No. 8852, Feb. 29, 2008; Act No. 11690, Mar. 23, 2013> |
| (2) | When the local governments have disbursed substantial expenses or neglected to collect the revenues to be secured in violation of the provisions of statutes, the Minister of Education may reduce the subsidies to be granted to the local government concerned or order it to return a part of already-paid subsidies. In such cases, the amount of subsidies to be reduced or ordered to be returned shall not exceed the amount that has been disbursed or neglected to be collected in violation of the provisions of statutes. <Amended by Act No. 8852, Feb. 29, 2008; Act No. 11690, Mar. 23, 2013> |
[This Article Wholly Amended by Act No. 7251, Dec. 30, 2004]
| Article 9 (Appropriation in Budget) |
| (1) | The State shall appropriate the subsidies under the provisions of this Act in the national budget every fiscal year. |
| (2) | Where there is any increase or decrease in internal or education taxes owing to the revised supplementary budget, the subsidies shall also be increased or decreased accordingly: Provided, That where internal or education taxes are reduced, the subsidies may be adjusted until the year after the subsequent year in consideration of matters such as conditions of the local educational finance. <Amended by Act No. 9923, Jan. 1, 2010; Act No. 14157, May 29, 2016> |
| (3) | The difference in subsidies made up of the difference between the internal, education tax budgets and the settled accounts shall be adjusted by being appropriated in the national budget of the year after the next year at the latest. <Amended by Act No. 9923, Jan. 1, 2010> |
| Article 10 (Measures Taken according to Change, etc. of Administrative Districts) |
Where Cities/Dos are abolished, divided, or merged, or the jurisdictions of the Cities/Dos are changed, the Minister of Education shall adjust the subsidies for the Cities/Dos concerned, as prescribed by Presidential Decree, and send the amount of the adjusted subsidies to them. <Amended by Act No. 6400, Jan. 29, 2001; Act No. 7251, Dec. 30, 2004; Act No. 8852, Feb. 29, 2008; Act No. 11690, Mar. 23, 2013>
[This Article Wholly Amended by Act No. 4303, Dec. 31, 1990]
| Article 11 (Expenses Borne by Local Government) |
| (1) | The expenses incurred for education and academic sciences in the Cities/Dos shall be borne by the special account for educational expenses of the local government concerned, on condition that those needed for compulsory education shall be paid in the subsidies out of the financial resources of the special account for educational expenses and the transferred money derived from the general account as referred to in paragraph (2), and the expenses relating to the education other than the compulsory education shall be appropriated by the subsidies out of the financial resources of special account for educational expenses, the transferred money from the general account as referred to in paragraph (2), tuition fees and entrance fees, etc. <Amended by Act No. 7251, Dec. 30, 2004> |
| (2) | The Cities/Dos shall appropriate the following amounts respectively in the budget of general account of every fiscal year for the establishment and operation of public schools and the improvement of educational environments, and transfer them to the special account for educational expenses. Where there is any increase or decrease due to the revised supplementary budget, the same shall also apply: <Amended by Act No. 7251, Dec. 30, 2004; Act No. 8148, Dec. 30, 2006; Act No. 8540, Jul. 20, 2007; Act No. 10219, Mar. 31, 2010; Act No. 10221. Mar. 31, 2010; Act No. 12153, Jan. 1, 2014> |
| 2. | The amount equivalent to 45/100 of the tobacco consumption taxes (excluding Dos); |
| 3. | The Seoul Special Metropolitan City shall appropriate 10/100 of the total amount of the special metropolitan city taxes (excluding the amount equivalent to the pro rata property portion and the pro rata employee portion of residential tax, among ordinary taxes prescribed in Article 8 (1) 1 of the Framework Act on Local Taxes, earmarked tax prescribed in Article 8 (1) 2 of the Framework Act on Local Taxes, and the property tax attributable to the Special Metropolitan City under Article 9 of the same Act). Metropolitan Cities and Gyeonggi-do shall appropriate the amount equivalent to 5/100 of the total amount of the metropolitan city taxes or Do taxes (excluding the amount equivalent to the earmarked tax prescribed in Article 8 (2) 2 of the Framework Act on Local Taxes). Other Dos and Special Self-Governing Province shall appropriate the amount equivalent to 36/1,000 of the total amount of the Do taxes or Special Self-Governing Province taxes. |
| (3) | The difference in transferred money due to the difference between the budget amount and the settled account shall be settled by appropriating it at the latest in the budget of the year after next. <Amended by Act No. 7251, Dec. 30, 2004> |
| (4) | Where the head of an educational administrative institution of the City/Do draws up the expenditure budget which is to be appropriated as the transferred money from the general account under the provisions of paragraphs (2) and (3), he/she shall consult in advance with the head of the local government concerned. <Newly Inserted by Act No. 5064, Dec. 29, 1995; Act No. 6331, Dec. 30, 2000> |
| (5) | Where the board of education of the Cities/Dos intends to reduce the expenditure budget drawn up under the provisions of paragraph (4), it shall consult in advance with the head of the educational administrative institution and the head of the local government concerned. <Newly Inserted by Act No. 5064, Dec. 29, 1995; Act No. 6331, Dec. 30, 2000> |
| (6) | The local government (City/Do and Si/Gun/autonomous Gu) may subsidize the educational expenses incurred for various kinds of schools equivalent to or lower than high schools under its jurisdiction under the conditions as prescribed by Presidential Decree. <Newly Inserted by Act No. 5064, Dec. 29, 1995; Act No. 6213, Jan. 28, 2000; Act No. 8148, Dec. 30, 2006> |
| (7) | The Cities/Dos may transfer the separate expenses other than each subparagraph of paragraph (2) to the special account of educational expenses, for the advancement of education and academic science within the competent areas. <Newly Inserted by Act No. 8148, Dec. 30, 2006> |
[This Article Wholly Amended by Act No. 3561, Apr. 3, 1982]
| Article 12 (Report on General Subsidies) |
The Minister of Education shall file a report on the criteria for, particulars of, amount of allotment of the general subsidies, and other important matters necessary for the operation of general subsidies to the competent Standing Committee of the National Assembly by not later than March 31 every year. <Amended by Act No. 8852, Feb. 29, 2008; Act No. 11690, Mar. 23, 2013>
[This Article Wholly Amended by Act No. 7251, Dec. 30, 2004]
| Article 13 (Formal Objection to Amount of Subsidies, etc.) |
| (1) | Where the heads of educational administrative institutions in Cities/Dos have received a notice of decisions on the general subsides as referred to in Article 5 (2), if they have an objection to the basis of computation of the amount of subsidies, etc. of the local government concerned, they may raise an objection to the Minister of Education within 30 days from the date of receipt of the notice. <Amended by Act No. 8852, Feb. 29, 2008; Act No. 11690, Mar. 23, 2013> |
| (2) | Where the Minister of Education has received an objection as referred to in paragraph (1), he/she shall examine it and notify the heads of educational administrative institutions of the local government concerned of the results thereof within 30 days from the date of receipt of the said objection. <Amended by Act No. 8852, Feb. 29, 2008; Act No. 11690, Mar. 23, 2013> |
[This Article Newly Inserted by Act No. 7251, Dec. 30, 2004]
ADDENDA
| (1) | (Enforcement Date) This Act shall enter into force on January 1, 1972. |
| (2) | (Repealed Acts) The Compulsory Education Financial Subsidy Act and the Grants for Local Education Act shall be hereby repealed. |
ADDENDA <Act No. 3540, Mar. 20, 1982>
Article 1 (Enforcement Date)
This Act shall enter into force on the date of its promulgation. (Proviso Omitted.)
Articles 2 and 3 Omitted.
ADDENDA <Act No. 3561, Apr. 3, 1982>
| (1) | (Enforcement Date) This Act shall enter into force on the same date as the enforcement date of the Act on the Abolition of the Emergency Decree concerning Economic Stability and Development. |
| (2) | (Transitional Measures) The subsidies of the year 1982 shall be determined by the national budget, notwithstanding the provisions of Articles 3, 4, and 9. |
ADDENDUM <Act No. 4047, Dec. 31, 1988>
This Act shall enter into force on January 1, 1989.
ADDENDA <Act No. 4268, Dec. 27, 1990>
Article 1 (Enforcement Date)
This Act shall enter into force on the date of its promulgation. (Proviso Omitted.)
Articles 2 through 10 Omitted.
ADDENDA <Act No. 4303, Dec. 31, 1990>
Article 1 (Enforcement Date)
This Act shall enter into force on January 1, 1991.
Article 2 Omitted.
Article 3 (Transitional Measures)
| (1) | The adjustment of the difference in the subsidies owing to the difference between the budget and the settled account of the education taxes of the year 1990 shall be governed by the previous provisions. |
| (2) | The total amount of internal taxes under the provisions of Article 3 (2) 2 shall not include the defense taxes which are collected under the provisions of Article 2 of the Addenda of the Act on the Abolition of National Defense Taxes. |
ADDENDA <Act No. 4541, Mar. 6, 1993>
Article 1 (Enforcement Date)
This Act shall enter into force on the date of its promulgation. (Proviso Omitted.)
Articles 2 through 5 Omitted.
ADDENDUM <Act No. 4687, Dec. 31, 1993>
This Act shall enter into force on January 1, 1994.
ADDENDA <Act No. 5064, Dec. 29, 1995>
| (1) | (Enforcement Date) This Act shall enter into force on January 1, 1996. |
| (2) | Deleted. <by Act No. 6213, Jan. 28, 2000> |
ADDENDUM <Act No. 5454, Dec. 13, 1997>
This Act shall enter into force on January 1, 1998. (Proviso Omitted.)
ADDENDA <Act No. 5529, Feb. 28, 1998>
Article 1 (Enforcement Date)
This Act shall enter into force on the date of its promulgation. (Proviso Omitted.)
Articles 2 through 7 Omitted.
ADDENDUM <Act No. 5651, Jan. 21, 1999>
This Act shall enter into force on the date of its promulgation.
ADDENDA <Act No. 5982, May 24, 1999>
Article 1 (Enforcement Date)
This Act shall enter into force on the date of its promulgation. (Proviso Omitted.)
Articles 2 through 6 Omitted.
ADDENDUM <Act No. 6213, Jan. 28, 2000>
This Act shall enter into force on January 1, 2001.
ADDENDUM <Act No. 6331, Dec. 30, 2000>
This Act shall enter into force on January 1, 2001.
ADDENDA <Act No. 6400, Jan. 29, 2001>
Article 1 (Enforcement Date)
This Act shall enter into force on the date of its promulgation. (Proviso Omitted.)
Articles 2 through 4 Omitted.
ADDENDUM <Act No. 6522, Dec. 19, 2001>
This Act shall enter into force on January 1, 2002.
ADDENDA <Act No. 7251, Dec. 30, 2004>
| (1) | (Enforcement Date) This Act shall enter into force on January 1, 2005. |
| (2) | Deleted. <by Act No. 8148, Dec. 30, 2006> |
ADDENDA <Act No. 7328, Jan. 5, 2005>
Article 1 (Enforcement Date)
This Act shall enter into force on the date of its promulgation.
Articles 2 through 4 Omitted.
ADDENDUM <Act No. 8148, Dec. 30, 2006>
This Act shall enter into force on January 1, 2007: Provided, That the amended provisions of Article 3 (2) 2 shall enter into force starting from the year of 2008.
ADDENDA <Act No. 8540, Jul. 20, 2007>
Article 1 (Enforcement Date)
This Act shall enter into force on the date of its promulgation. (Proviso Omitted.)
Articles 2 through 6 Omitted.
ADDENDA <Act No. 8852, Feb. 29, 2008>
Article 1 (Enforcement Date)
This Act shall enter into force on the date of its promulgation. (Proviso Omitted.)
Articles 2 through 7 Omitted.
ADDENDUM <Act No. 9923, Jan. 1, 2010>
This Act shall enter into force on January 1, 2010: Provided, That the amended provisions of Article 9 (2) and (3) shall enter into force on the date of its promulgation.
ADDENDA <Act No. 10219, Mar. 31, 2010>
Article 1 (Enforcement Date)
This Act shall enter into force on January 1, 2011.
Articles 2 through 12 Omitted.
ADDENDA <Act No. 10221, Mar. 31, 2010>
Article 1 (Enforcement Date)
This Act shall enter into force on January 1, 2011.
Articles 2 through 8 Omitted.
ADDENDA <Act No. 11690, Mar. 23, 2013>
Article 1 (Enforcement Date)
| (1) | This Act shall enter into force on the date of its promulgation. |
Articles 2 through 7 Omitted.
ADDENDA <Act No. 12153, Jan. 1, 2014>
Article 1 (Enforcement Date)
This Act shall enter into force on January 1, 2014. (Proviso Omitted.)
Articles 2 through 19 Omitted.
ADDENDA <Act No. 12854, Dec. 23, 2014>
Article 1 (Enforcement Date)
This Act shall enter into force on January 1, 2015.
Article 2 Omitted.
ADDENDUM <Act No. 14157, May 29, 2016>
This Act shall enter into force on the date of its promulgation.