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ACT ON THE MANAGEMENT OF AND SPECIAL ACCOUNT FOR PRISON LABOR

Act No. 9137, Dec. 11, 2008

Amended by Act No. 11727, Apr. 5, 2013

 Article 1 (Purpose)
The purpose of this Act is to promote the efficient and reasonable management of prison labor by prescribing matters concerning the management of prison labor and the establishment and operation of special accounts for prison labor.
 Article 2 (Definitions)
The definitions of terms used in this Act shall be as follows:
1. The term "prison labor" means labor imposed on inmates of a correctional institution;
2. The term "public institution" means an institution designated and announced pursuant to Articles 4 through 6 of the Act on the Management of Public Institutions.
 Article 3 (Application of other Acts)
Unless otherwise expressly prescribed by this Act, the Administration and Treatment of Correctional Institution Inmates Act shall apply to prison labor.
 Article 4 (Official Announcement of Prison Labor Products)
The Minister of Justice shall officially announce the kinds and quantities of products manufactured through prison labor by no later than one month prior to the beginning of each fiscal year.
 Article 5 (Preferential Purchase of Prison Labor Products)
Where products which the State, a local government, or public institution requires are those officially announced pursuant to Article 4, it shall preferentially purchase the products officially announced.
 Article 6 (Participation of Private Sector in Prison Labor)
(1) The Minister of Justice may operate prison labor by allowing private enterprises to participate in prison labor so that inmates may commute to, and work at an outside enterprise, etc. or at the place of work of an outside enterprise established in a correctional institution pursuant to Article 68 of the Administration and Treatment of Correctional Institution Inmates Act.
(2) The head of a correctional institution shall determine the details of prison labor in which a private enterprise is to participate pursuant to paragraph (1) (hereafter referred to as "private sector work" in this Article) by contract with the relevant enterprise and obtain approval of the contract from the Minister of Justice (approval from the head of a regional correctional service in cases of a renewal of such contract): Provided, That the foregoing shall not apply to a short-term contract prescribed by the Minister of Justice.
(3) Procedures for participation of private enterprises, kinds of private sector work, and other matters necessary for the management of private sector work under paragraphs (1) and (2) shall be prescribed by the Minister of Justice in consideration of Article 68 (1) of the Administration and Treatment of Correctional Institution Inmates Act.
 Article 7 (Sale of Prison Labor Products to Private Sector)
Products manufactured through prison labor may be sold directly or on a consignment basis, to private enterprises, etc.
 Article 8 (Establishment and Operation of Special Accounts for Prison Labor)
(1) Special accounts for prison labor (hereinafter referred to as "special accounts") shall be established to efficiently manage prison labor.
(2) Special accounts shall be operated and managed by the Minister of Justice.
 Article 9 (Revenue of, and Expenditure from Special Accounts)
(1) The revenue of special accounts shall be as follows:
1. Income generated from the sale of products manufactured and services provided through prison labor, and other prison labor;
2. Money transferred from general accounts under Article 10;
3. Loans under Article 11.
(2) The expenditure from special accounts shall be as follows:
1. Expenses incurred in managing prison labor, preparing, maintaining and repairing facilities related to prison labor, and operating prison labor;
4. Expenses incurred in conducting vocational training related to prison labor of inmates.
 Article 10 (Transfer from General Accounts)
Where total revenue is less than total expenditure or it is necessary to improve or expand facilities, special accounts may receive money transferred from general accounts, within budgetary limits.
 Article 11 (Temporary Loans, etc.)
(1) Where special accounts have insufficient money to spend, special accounts may obtain a temporarily loan at the cost of special accounts within the limits approved by the National Assembly or may first use cash received by public officials in charge of receipts and disbursements of income, within budgetary limits of expenditure.
(2) Temporary loans or money first used under paragraph (1) shall be repaid or paid with disbursements, within the relevant fiscal year.
 Article 11-2 (Disposition of Surplus Fund)
A surplus fund after the settlement of accounts of special accounts shall be carried forward to the revenue of the following year.
[This Article Newly Inserted by Act No. 11727, Apr. 5, 2013]
 Article 12 (Reserve Fund)
A reserve fund may be appropriated in the budget of expenditure from special accounts to make up for unforeseeable expenditure out of the budget or expenditure exceeding the budget.
ADDENDA
Article 1 (Enforcement Date)
This Act shall enter into force on January 1, 2010.
Article 2 (Repeal of other Acts)
Article 3 (Transitional Measures concerning Official Announcement of Prison Labor Products)
An official announcement of goods and materials manufactured through prison labor, made under Article 2 of the former State Uses of Prison Labor Products for the year in which the date of this Act enters into force, before this Act enters into force shall be deemed an official announcement of products manufactured through prison labor, made under Article 4 of this Act.
Article 4 (Transitional Measures concerning Act on Special Accounts for Prison Labor)
The special accounts for prison labor closed pursuant to Article 2 of Addenda shall be deemed the special accounts for prison labor established under this Act.
Article 5 Omitted.
Article 6 (Relationship to other Acts and Subordinate Statutes)
Where the former Act on the State Uses of Prison Labor Products, the former Act on the Special Accounts for Prison Labor, or any provision thereof is cited by other Acts and subordinate statutes as at the time this Act enters into force, if any provision corresponding thereto exists herein, this Act or the relevant provision of this Act shall be deemed cited in lieu of the former provision.
ADDENDUM <Act No. 11727, Apr. 5, 2013>
This Act shall enter into force on the date of its promulgation.