ACT ON LIABILITY OF ACCOUNTING PERSONNEL
Act No. 6461, Apr. 7, 2001
Amended by Act No. 6836, Dec. 30, 2002
Act No. 8050, Oct. 4, 2006
Act No. 8636, Oct. 17, 2007
Act No. 8852, Feb. 29, 2008
Act No. 9515, Mar. 25, 2009
Act No. 12687, May 28, 2014
Act No. 14197, May 29, 2016
The purpose of this Act is to clarify the responsibilities of accounting personnel, etc. and to prevent any accounting act that violates the provisions prescribed in the statutes or other relevant regulations and budget, so that the State, local governments, other organizations, etc. subject to audit by the Board of Audit and Inspection may execute accounting affairs appropriately.
[This Article Wholly Amended by Act No. 9515, Mar. 25, 2009]
For the purposes of this Act, the term "accounting personnel" means any person falling under any of the following subparagraphs: <Amended by Act No. 12687, May 28, 2014; Act No. 14197, May 29, 2016>
| (a) | Revenue collector, financial officer, disbursement official, contract official, and cash receipt and expenditure officer; |
| (b) | Official who deals with securities; |
| (c) | Officer empowered to order receipts and disbursements of funds for pre-use; |
| (d) | Person who deals with the accounting affairs of the fund; |
| (e) | Credit management officer; |
| (f) | Commodity management officer, commodity operating officer, commodity receipts and disbursements officer, and commodity use officer; |
| (g) | Property management officer; |
| (h) | Official who orders the payment of a national tax refund; |
| (i) | Official who orders the payment of a customs refund; |
| (j) | Officer in charge of accounting; |
| (k) | Any other person who deals with national accounting affairs; |
| (l) | An agent and any person partially in charge of the persons provided for in items (a) through (k) or an agent of such person partially in charge; |
| 2. | Any person who executes the accounting affairs of local governments under the statutes in which the matters related to the budget and accounting of local governments are prescribed, such as the Local Finance Act and the Local Accounting Act, and who falls under any of the following items: |
| (a) | Collector, accounting officer, disbursement officer, officer dealing with receipts and disbursements, commodity management officer, and commodity use official; |
| (b) | Any person who deals with affairs equivalent to the accounting affairs executed by persons provided for in each item of subparagraph 1 and who is not provided for in item (a); |
| 3. | Any person who executes the accounting affairs of organizations, etc. subject to audit by the Board of Audit and Inspection under the Board of Audit and Inspection Act and who falls under any of the following items: |
| (a) | Person provided for in the relevant statutes, articles of incorporation, bylaws, etc.; |
| (b) | Person appointed under the relevant statutes, articles of incorporation, bylaws, etc.; |
| (c) | Agent and person partially in charge of the person provided for in item (a) or (b) or agent of the person partially in charge; |
| 4. | An assistant to the person provided for subparagraphs 1 through 3 who partially deals with the accounting affairs. |
[This Article Wholly Amended by Act No. 9515, Mar. 25, 2009]
| Article 3 (Obligations of Accounting Personnel) |
Accounting personnel shall perform their duties faithfully, as prescribed by statutes, other relevant regulations and budget.
[This Article Wholly Amended by Act No. 9515, Mar. 25, 2009]
| Article 4 (Liability for Compensation of Accounting Personnel) |
| (1) | Where accounting personnel have caused any damage to the property of the State, local governments, organizations, etc. subject to audit by the Board of Audit and Inspection, in violation of the provisions prescribed in the statutes, other regulations, and budget intentionally or by gross negligence, they shall be liable for compensating such damage. |
| (2) | Where accounting personnel who receive and disburse or keep cash or commodities have been negligent in exercising due diligence as a good manager and cash or commodities kept by them have been lost or damaged, they shall be liable for compensating them. |
| (3) | In cases of paragraph (2), accounting personnel who receive and disburse or keep cash or commodities may not be exempted from such liability on the grounds that they have not executed such affairs voluntarily. |
| (4) | In cases of paragraphs (1) and (2), where any damage has been caused by the acts of two or more accounting personnel, they shall be liable for compensating such damage according to the degree of their act caused to the occurrence of damage. In such case, if the degree of their act caused to the occurrence of damage is not clear, it shall be deemed that such degree is the same. |
[This Article Wholly Amended by Act No. 9515, Mar. 25, 2009]
| Article 5 (Reduction or Exemption of Amount of Compensation) |
In determining the amount of compensation under Article 31 of the Board of Audit and Inspection Act, the Board of Audit and Inspection may, where any reason falling under any of the following subparagraphs exists, reduce or exempt such amount in whole or in part: Provided, That where any damage has been caused by intention, the amount of compensation shall not be reduced or exempted: | 1. | Where it is deemed that the State, local governments, and organizations, etc. subject to audit by the Board of Audit and Inspection have been partially liable for not preventing the occurrence and expansion of damage; |
| 2. | Where it is deemed inappropriate that accounting personnel are liable to compensate the entire amount of compensation, by taking into account all circumstances, such as details of accounting affairs executed, reason for occurrence of damage, degree of their negligence caused to the occurrence of damage, and their endeavor to prevent the spread of damage; |
| 3. | Where accounting personnel have usually contributed to the saving of budget or establishment of accounting order. |
[This Article Wholly Amended by Act No. 9515, Mar. 25, 2009]
| Article 6 (Liability for Compensation of Accounting Personnel prior to Determination by Board of Audit and Inspection) |
| (1) | Any person falling under any of the following subparagraphs may order accounting personnel to compensate even before the Board of Audit and Inspection determines where they are deemed to be liable for compensation under Article 4: |
| 2. | Heads of local governments; |
| 3. | Heads of supervisory agencies (applicable only to cases where such agencies are not government agencies or agencies of local governments; hereinafter the same shall apply); |
| 4. | Heads of agencies concerned (applicable only to cases where such agencies are not government agencies or agencies of local governments and no supervisory agencies exist or their identity is unclear). |
| (2) | In cases of paragraph (1), where the heads of central government agencies, local governments, or supervisory agencies deem necessary, they may have those who are in the agencies or positions concerned, take measures regarding orders for compensation within the limit of amount authorized per agency or position, as prescribed by Presidential Decree. |
| (3) | Where accounting personnel who have been subject to an order for compensation under paragraph (1) or (2) have any objection to such order, they may request the determination by the Board of Audit and Inspection by the written request for determination prescribed by the Chairman of the Board of Audit and Inspection. |
| (4) | Any person who has ordered the compensation under paragraph (1) or (2) shall, where the Board of Audit and Inspection determines that the relevant accounting personnel are not liable to compensate or has reduced or exempted the amount of compensation under Article 5, return immediately the entire amount of compensation paid by such personnel or any difference. |
| (5) | When a written order of compensation under the determination by the Board of Audit and Inspection or that under paragraph (1) or (2) has been served on the relevant accounting personnel, prescription shall be interrupted. |
[This Article Wholly Amended by Act No. 9515, Mar. 25, 2009]
| Article 7 (Responsibility to Give Notice by Heads, etc. of Central Government Agencies) |
Where any damage subject to the liability for compensation under Article 4 (1) or (2) occurs, the heads of central government agencies, local governments, supervisory agencies, or agencies concerned shall immediately report such fact to the Minister of Strategy and Finance and the Board of Audit and Inspection. [This Article Wholly Amended by Act No. 9515, Mar. 25, 2009]
| Article 8 (Liabilities of Superiors who have Instructed or Requested Illegal Accounting Acts) |
| (1) | Where any superior of accounting personnel has instructed or requested them to engage in any accounting act violating the provisions prescribed in the statutes or other relevant regulations and budget, and thus any damage has occurred the liability for compensation, such superior shall be liable for compensation under Article 4 jointly and severally with the relevant accounting personnel. |
| (2) | Where accounting personnel have been instructed or requested to engage in any accounting act violating the provisions prescribed in the statutes or other relevant regulations and budget by their superior, they shall express their intention not to engage in the relevant accounting act to the head of the competent agency by specifying the reason in writing or by another equivalent method. |
| (3) | Although accounting personnel have expressed their intention not to engage in any accounting act under paragraph (2), where their superior instructs or requests again them to engage in any accounting act violating the provisions prescribed in the statutes or other relevant regulations and budget, such superior shall be liable to compensate any damage caused by such accounting act: Provided, That if the accounting personnel deceive their superior, they shall be liable to compensate. |
| (4) | Articles 5 and 6 shall apply mutatis mutandis to cases of paragraph (1). |
[This Article Wholly Amended by Act No. 9515, Mar. 25, 2009]
| Article 9 (Subrogation of Accounting Personnel, etc.) |
Where accounting personnel or their superior have discharged liability to compensate and reserved any damage of the State, local governments, other organizations, etc. subject to audit by the Board of Audit and Inspection, they shall subrogate the State, local governments, other organizations, etc. subject to audit by the Board of Audit and Inspection with respect to the rights of a third party within the scope.
[This Article Wholly Amended by Act No. 9515, Mar. 25, 2009]
ADDENDA
Article 1 (Enforcement Date)
This Act shall enter into force on the date of its promulgation.
Article 2 (Applicability to Reduction or Exemption of Amount of Compensation and Subrogation of Accounting Personnel, etc.)
The amended provisions of Articles 5 and 9 shall apply to the first determination for compensation after this Act enters into force. Article 3 Omitted.
Article 4 (Relationship with other Statutes)
Where the previous Liability of Accounting Personnel, etc. Act or its provisions are cited by other statutes at the time this Act enters into force, if this Act includes corresponding provisions, this Act or its corresponding provisions shall be deemed to have been cited.
ADDENDA <Act No. 6836, Dec. 30, 2002>
Article 1 (Enforcement Date)
This Act shall enter into force on January 1, 2003.
Articles 2 through 7 Omitted.
ADDENDA <Act No. 8050, Oct. 4, 2006>
Article 1 (Enforcement Date)
This Act shall enter into force on January 1, 2007. (Proviso Omitted.)
Articles 2 through 12 Omitted.
ADDENDA <Act No. 8636, Oct. 17, 2007>
Article 1 (Enforcement Date)
This Act shall enter into force on January 1, 2009. (Proviso Omitted.)
Articles 2 through 4 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. 9515, Mar. 25, 2009>
This Act shall enter into force on the date of its promulgation.
ADDENDA <Act No. 12687, May 28, 2014>
Article 1 (Enforcement Date)
This Act shall enter into force six months after the date of its promulgation. (Proviso Omitted.)
Articles 2 through 22 Omitted.
ADDENDA <Act No. 14197, May 29, 2016>
Article 1 (Enforcement Date)
This Act shall enter into force six months after the date of its promulgation. (Proviso Omitted.)
Articles 2 through 4 Omitted.