Statutes of the Republic of Korea

Article 1 (Purpose)

The purpose of this Act is to promote administrative efficiency in the operation of national defense and the qualitative improvement of national defense services by providing for basic matters concerning the assignment and operation of responsible administrative agencies in the military and special exceptions to the organization, personnel management, budgeting, accounting, etc. of responsible administrative agencies in the military.

Article 2 (Definitions)

The term "responsible administrative agency in the military" in this Act means a military unit or an agency of the Armed Forces of the Republic of Korea, the head of which (hereinafter referred to as "head of an agency") shall be given autonomy in administration and finance with regard to business affairs desirable to be carried out according to the principles of competition, among business affairs that the Armed Forces of the Republic of Korea shall carry out, and shall be held responsible for the performance of its operation in order to accomplish the goals of national defense efficiently.

Article 3 (Principles of Operation)

(1)

Each responsible administrative agency in the military shall be guaranteed for its independence and autonomy necessary for accomplishing business goals set by the Minister of National Defense or the Chief of Staff of the Army, the Navy, or the Air Force (hereinafter referred to as "Chief of Staff").

(2)	Each head of agency shall take measures necessary for the innovation of business management of his/her agency.

Article 4 (Relationships with Other Acts)

If any provision of this Act conflicts with a provision of another Act with regard to the organization, personnel management, budgeting, accounting, or operation of each responsible administrative agency in the military, this Act shall take precedence over the other Act.

Article 5 (Assignment of Responsible Administrative Agencies in Military)

(1)

If the main business activities of a military unit or agency of the Armed Forces of the Republic of Korea are to provide national defense services in the nature of business and execution and it is possible to develop standards for the measurement of performance of such business activities and to measure the performance of such business activities, the Minister of National Defense may assign such a military unit or agency as a responsible administrative agency in the military, subject to consultation with the Minister of Strategy and Finance and deliberation by the Committee for the Operation of Responsible Administrative Agencies in Military under Article 13: Provided, That in the case of a military unit or an agency established by an Act or a Presidential Decree, such a military unit or an agency shall be assigned as a responsible administrative agency in the military by Presidential Decree.

(2)

Each Chief of Staff may, if he/she considers it efficient to assign a military unit or agency under his/her control as a responsible administrative agency in the military to have it carry out its business activities, recommend the Minister of National Defense to assign the military unit or agency as a responsible administrative agency in the military, subject to deliberation by the Council for the Operation of Responsible Administrative Agencies in Military under Article 12.

Article 6 (Cancellation of Assignment as Responsible Administrative Agency in Military)

(1)

The Minister of National Defense may, if he/she finds that a responsible administrative agency in the military falls under any of the following subparagraphs, cancel the assignment, subject to consultation with the Minister of Strategy and Finance and deliberation by the Committee for the Operation of Responsible Administrative Agencies in Military under Article 13: <Amended by Act No. 13776, Jan. 19, 2016>

1.	Where it is recognized that a responsible administrative agency in the military is unable to accomplish purposes of its assignment;

2.	Where it is recognized that a military unit or an agency is not competent for the operation as a responsible administrative agency in the military;

3.	Where the immediate superior agency or military unit of a responsible administrative agency in the military is assigned as a responsible administrative agency in the military;

4.	Where a responsible administrative agency in the military is merged with other agency or military unit.

(2)

Each Chief of Staff may, if he/she finds that a responsible administrative agency in the military falls under any of the subparagraphs of paragraph (1), recommend the Minister of National Defense to cancel its assignment as a responsible administrative agency in the military, subject to deliberation by the Council for the Operation of Responsible Administrative Agencies in Military under Article 12. <Amended by Act No. 13776, Jan. 19, 2016>

Article 6-2 (Formulation, etc. of Mid-Term Management Plan)

(1)	The Minister of National Defense shall formulate a basic plan for the overall management and operation of a responsible administrative agency in the military every five years (hereafter referred to as “mid-term management plan).

(2)	The mid-term management plan shall include the following:

1.	Matters concerning the basic direction-setting for operation of the system of responsible administrative agencies in the military;

2.	Matters concerning the assignment and cancellation of a responsible administrative agency in the military;

3.	Matters concerning the inspection of overall operation of responsible administrative agencies in the military and improvement of system.

(3)	The Minister of National Defense shall formulate operation guideline by year concerning operation, evaluation, etc. of responsible administrative agencies in the military (hereafter “operation guideline” in this Article) according to the mid-term management plan.

(4)	The Minister of National Defense may, if it is necessary due to changes in the environment for national defense, such as reorganization of the National Armed Forces, modify the mid-term management plan and operation guideline.

(5)	Matters necessary for the formulation and modification of mid-term management plans and operation guideline, other than those prescribed in paragraphs 1 through 4, shall be prescribed by Presidential Decree.

[This Article Newly Inserted by Act No. 13776, Jan. 19, 2016]

Article 7 (Appointment of Heads of Agencies)

(1)

A general civilian military employee in a fix-term position or military personnel (limited to cases where military personnel in active service is appointed) may be appointed as a head of an agency, from among persons who have abundant knowledge, competence, and experience related to national defense administration or business management or a task in which employment is planned through open recruitment procedures. In such cases, a head of an agency who falls under Article 20 (1) 3 of the Military Personnel Management Act shall be appointed by the President at the proposal of the Minister of National Defense, notwithstanding the same paragraph. <Amended by Act No. 10647, May 19, 2011; Act No. 14420, Dec. 20, 2016>

(2)

The head of a responsible administrative agency in the military under the control of a Chief of Staff (hereinafter referred to as "responsible administrative agency under the control of a Chief of Staff") shall be appointed by the competent Chief of Staff with the authority delegated by the Minister of National Defense.

(3)

Specific requirements for the appointment of the head of an agency pursuant to paragraphs (1) and (2) shall be determined by the Minister of National Defense: Provided, That if the head of a responsible administrative agency under the control of a Chief of Staff is appointed by the competent Chief of Staff pursuant to paragraph (2), such requirements may be determined by the competent Chief of Staff in conformity with the requirements determined by the Minister of National Defense.

(4)	The term of office for the head of an agency shall be two years, which may be extended up to five years on a year-to-year basis, if the results of evaluation of his/her performance are deemed outstanding.

(5)	Open recruitment procedures and appointment of the head of an agency, terms and conditions of a service contract, and grounds for the termination of a service contract shall be prescribed by Presidential Decree.

(6)

Where a civilian military employee retires to become the head of an agency in accordance with paragraph (1) or (2) and his/her term of office expires or his/her service contract terminates, he/she may be given priority to be specially employed as a civilian military employee in the same rank as he/she was at the time of his/her retirement: Provided, That the foregoing shall not apply where a service contract terminates because a civilian military employee is unable to perform his/her duty due to a physical or mental disorder or on any ground prescribed by Presidential Decree.

Article 8 (Responsibilities of Head of Agency)

The head of each agency shall perform terms and conditions of his/her service contract in good faith and shall endeavor to establish a system for carrying out business affairs in preparation for wartime, improve public services and efficiency in the operation of the agency, enhance economic efficiency in finance, and improve the quality of services.

Article 9 (Remuneration for Head of Agency)

Matters concerning remuneration for the heads of agencies shall be prescribed by Presidential Decree.

Article 10 (Basic Operating Regulations)

(1)

The head of each agency shall formulate basic operating regulations stipulating the organization and operation of the responsible administrative agency in the military (hereinafter referred to as "basic operating regulations"), including the following in conformity with relevant Acts and subordinate statutes:

1.	Basic matters concerning business affairs assigned in wartime and in peacetime and procedures for the execution of such business affairs;

2.

Matters concerning the establishment and operation of affiliated agencies (referring to military units and agencies under the jurisdiction of the responsible administrative agency in the military; the same shall apply hereinafter) and sub-organizations and the operation of the full number of military personnel and civilian military employees;

3.	Matters concerning the personnel management of military personnel and civilian military employees who belong to the responsible administrative agency in the military;

4.	Matters concerning educating and training military personnel and civilian military employees who belong to the responsible administrative agency in the military;

5.	Matters concerning budgeting and accounting;

6.	Other matters prescribed by Presidential Decree in relation to the organization and operation of the responsible administrative agency in the military.

(2)

When the head of a responsible administrative agency intends to formulate or amend basic operating regulations, he/she shall obtain prior approval thereof from the Minister of National Defense through the head of the superior military unit or agency: Provided, That in cases of a responsible administrative agency in the military, an intended change of the full number of personnel or organization shall be approved by the Minister of National Defense, and matters, other than such change, shall be approved by the Chief of Staff.

(3)

Notwithstanding paragraph (2), the head of a responsible administrative agency may amend matters prescribed by Presidential Decree, including the establishment or adjustment of sub-organizations within the full number of military personnel and civilian military employees, among basic operating regulations without obtaining approval from the Minister of National Defense or the Chief of Staff. In such cases, the head of a responsible administrative agency shall notify the Minister of National Defense or the Chief of Staff of the details thereof.

[This Article Wholly Amended by Act No. 10647, May 19, 2011]

Article 11 (Business Goals, Business Operation Plans, etc.)

(1)

The Minister of National Defense shall set business goals for the improvement of efficiency in the performance of business affairs assigned in wartime and in peacetime to each responsible administrative agency in the military, the improvement of the quality of services, the enhancement of economic efficiency in finance, and business rationalization and assign such goals to the head of each agency: Provided, That in the case of a responsible administrative agency under the control of a Chief of Staff, such goals shall be assigned by the competent Chief of Staff.

(2)

The head of each agency shall formulate a business operation plan for accomplishing business goals assigned pursuant to paragraph (1) and shall obtain approval thereof from the Minister of National Defense through the head of the superior military unit or agency within the period specified by Presidential Decree: Provided, That in the case of a responsible administrative agency under the control of a Chief of Staff, such a plan shall be approved by the competent Chief of Staff. The foregoing shall also apply to an intended amendment of a business operation plan.

(3)

The Minister of National Defense or a Chief of Staff shall bring each business operation plan to the Council for Operation of Responsible Administrative Agencies in the Military established under Article 12 for deliberation before he/she approves the business operation plan pursuant to paragraph (2).

(4)

The head of each agency shall formulate an annual business plan for each year (hereinafter referred to as "annual business plan") in conformity with the business operation plan and submit it to the Minister of National Defense or the competent Chief of Staff through the head of the superior military unit or agency within the period prescribed by Presidential Decree. The foregoing shall also apply to an intended amendment of an annual business plan.

(5)	Each annual business plan under paragraph (4) shall include specific objectives for business performance that the responsible administrative agency in the military shall accomplish and performance measurement indices with which performance can be measured objectively.

Article 12 (Councils for Operation of Responsible Administrative Agencies in Military)

(1)

There is hereby established a Council for Operation of Responsible Administrative Agencies in the Military (hereinafter referred to as the "Council") respectively under the jurisdiction of the Minister of National Defense and each Chief of Staff to evaluate business performance and deliberate on important matters concerning the operation of responsible administrative agencies in the military.

(2)	Each Council shall deliberate on the following:

1.	Matters concerning the establishment of business goals;

2.	Matters concerning the establishment of, and amendment to a business operation plan and an annual business plan;

3.	Matters concerning the evaluation of business performance;

4.	Matters concerning the assignment of responsible administrative agencies in the military and the cancellation of such assignment;

5.	Other matters prescribed by Presidential Decree as important matters concerning the operation of responsible administrative agencies in the military.

(3)	Each Council shall be comprised of no more than nine members (or no more than 15 members, for the Council under the jurisdiction of a Chief of Staff), including one chairperson.

(4)

The chairperson and members of each Council shall be appointed or commissioned by the Minister of National Defense, from among the following persons: Provided, That in the case of the Council established under the jurisdiction of a Chief of Staff, the chairperson and members of the Council shall be appointed or commissioned by the competent Chief of Staff: <Amended by Act No. 10647, May 19, 2011>

1.	Public officials in the position of section chief or a higher position who belong to the Ministry of National Defense;

2.	Colonels or higher-ranking officers in active service and Class-I civilian military employees;

3.	Persons who have abundant knowledge and experience related to business affairs of responsible administrative agencies in the military.

(5)	Except as otherwise provided in this Act, the composition and operation of the Councils and other necessary matters shall be prescribed by Presidential Decree.

Article 13 (Committee for Operation of Responsible Administrative Agencies in Military)

(1)

There is hereby established a Committee for Operation of Responsible Administrative Agencies in the Military (hereinafter referred to as the "Committee") under the jurisdiction of the Minister of National Defense to deliberate on and evaluate whether to assign a military unit or agency as a responsible administrative agency in the military or to cancel such assignment and important matters concerning the improvement of systems related to responsible administrative agencies in the military.

(2)	The Committee shall deliberate on and evaluate the following: <Amended by Act No. 10647, May 19, 2011; Act No. 13776, Jan. 19, 2016>

1.	Matters concerning the formulation and modification of mid-term management plan;

2.	Matters concerning whether to assign a military unit or agency as a responsible administrative agency in the military or to cancel such assignment;

3.	Matters concerning the operation and improvement of systems related to responsible administrative agencies in the military;

4.	Matters concerning the results of evaluations conducted by the Councils;

5.	Matters concerning procedures and methods for a comprehensive evaluation of a responsible administrative agency in the military;

6.	Other matters prescribed by Presidential Decree as important matters concerning the operation, etc. of responsible administrative agencies in the military.

(3)	The Committee shall be comprised of no more than 15 members, including one chairperson.

(4)	The Vice Minister of National Defense shall serve as the chairperson of the Committee.

(5)	Members of the Committee shall be appointed or commissioned by the Minister of National Defense, from among the following persons: <Amended by Act No. 10647, May 19, 2011; Act No. 14609, Mar. 21, 2017>

1.	Director Generals and higher-ranking public officials from the Ministry of National Defense and related central administrative agencies;

2.	General-grade officers in active service or Class-I civilian military employees;

3.	Persons who have abundant knowledge and experience related to business affairs of responsible administrative agencies in the military.

(6)	Except as otherwise provided in this Act, the composition and operation of the Committee, agencies subject to evaluation and other necessary matters shall be prescribed by Presidential Decree.

Article 13-2 (Comprehensive Evaluation of Responsible Administrative Agencies in Military)

(1)	The Committee shall conduct a comprehensive evaluation of a responsible administrative agency in the military to measure business performance and operation and improvement of systems of the agency, and determine the existence of the agency, etc.

(2)	The Minister of National Defense may assist the Committee in the comprehensive evaluation task referred to in paragraph (1) by organizing or designating an evaluation task force, as prescribed by Presidential Decree.

[This Article Newly Inserted by Act No. 10647, May 19, 2011]

Article 14 (Use of Results of Comprehensive Evaluation)

(1)	The head of each agency shall reflect the results of the comprehensive evaluation conducted under Article 13-2 in improving the operation of the responsible administrative agency in the military.

(2)	The Minister of National Defense shall publish the results of the comprehensive evaluation, as prescribed by Presidential Decree: Provided, That no information classified as military secrets shall be published.

(3)	The Minister of National Defense and the Chief of Staff may take measures, such as granting citations or monetary rewards to the outstanding agencies, based on the results of the comprehensive evaluation conducted under Article 13-2.

[This Article Wholly Amended by Act No. 10647, May 19, 2011]

Article 15 (Establishment of Affiliated Agencies and Sub-Organizations)

(1)	Each responsible administrative agency in the military may establish affiliated agencies pursuant to Article 15 of the Act on the Organization of National Armed Forces.

(2)	The establishment of affiliated agencies and sub-organizations and the allocation of business affairs to affiliated agencies and sub-organizations shall be prescribed by basic operating regulations.

Article 16 (Full Number of Personnel)

The maximum number of military personnel and civilian military employees for each responsible administrative agency in the military shall be determined by the Minister of National Defense, and the full number of military personnel in each branch and for each rank and the full number of each type and each rank of civilian military employees shall be prescribed by basic operating regulations. <Amended by Act No. 10647, May 19, 2011>

Article 17 (Utilization of Contract-Basis Civilian Military Employees)

(1)

If necessary in view of the nature of affairs, a general civilian military employee in a fix-term position may be appointed as the head of a responsible administrative agency in the military or an affiliated agency or a sub-organization of a responsible administrative agency in the military. <Amended by Act No. 14420, Dec. 20, 2016>

(2)	Each responsible administrative agency in the military may fill part of the full number of civilian military employees with general civilian military employees in a fix-term position, as prescribed by Presidential Decree. <Amended by Act No. 14420, Dec. 20, 2016>

Article 18 (Appointment Authority)

(1)	Notwithstanding Article 6 of the Act on the Management of Civilian Personnel in the Military Service, the Minister of National Defense shall have the authority to appoint civilian military employees who work for a responsible administrative agency in the military.

(2)	The Minister of National Defense may delegate part of his/her authority to appoint civilian military employees who work for a responsible administrative agency in the military to the head of each agency, as prescribed by Presidential Decree.

Article 19 (Employment Examinations)

(1)

Examinations for the employment of civilian military employees who work for a responsible administrative agency in the military shall be conducted by the head of each agency: Provided, That if the head of each agency has difficulties in conducting such examinations independently, the Minister of National Defense or the competent Chief of Staff may conduct the examinations, or the head of each agency may conduct the examinations jointly with the head of another agency.

(2)

When an employment examination is to be conducted, public notice about the rank to be employed in, qualification requirements for application, the planned number of persons to be selected, the method, time and place of examination, and other necessary matters shall be given for not less than the period prescribed by Presidential Decree: Provided, That the public notice of an employment examination may be omitted to the extent that such omission does not conflict with the principle of competition in cases prescribed by Presidential Decree, except for an open competitive examination for the employment of general civilian military employees. <Amended by Act No. 10647, May 19, 2011; Act No. 14420, Dec. 20, 2016>>

(3)

Educational background, career, and age eligible for application for an employment examination and other necessary qualification requirements shall be prescribed by Presidential Decree, and matters concerning testing subjects and testing method shall be prescribed by basic operating regulations. <Amended by Act No. 10647, May 19, 2011>

(4)	Testing subjects and testing method for an examination for transfer and other necessary matters concerning the conduct of an examination for transfer shall be prescribed by basic operating regulations.

Article 20 (Personnel Exchanges)

(1)	If deemed necessary to exchange civilian military employees between responsible administrative agencies in the military and other military units and agencies, the Minister of National Defense or a Chief of Staff may conduct such exchange, subject to consultation with heads of agency.

(2)

A general civilian military employee employed by a responsible administrative agency in the military pursuant to Article 19 shall successfully pass a special employment examination prescribed by the relevant statutes governing personnel management, except in cases falling under paragraph (1), if he/she desires to transfer to or be specially employed by other military unit or agency as a general civilian military employee. In such cases, the rank to be employed in shall be determined, on a case-by-case basis, with approval from the head of the military unit or agency that takes charge of enforcing the relevant Act and subordinate statutes governing personnel management. <Amended by Act No. 10647, May 19, 2011; Act No. 14420, Dec. 20, 2016>>

(3)

Paragraph (2) shall not apply to cases where a general civilian military employee who had been employed pursuant to other Acts and was transferred to or was specially employed by a responsible administrative agency in the military is re-transferred to or specially re-employed by other military units and agencies as a general civilian military employee: Provided, That only the latter part of paragraph (2) shall apply to a person who is promoted after being transferred to or specially employed by another responsible administrative agency in the military. <Amended by Act No. 10647, May 19, 2011; Act No. 14420, Dec. 20, 2016>>

(4)

If deemed necessary, the head of each agency may request the Minister of National Defense or the competent Chief of Staff to conduct personnel exchanges of military personnel or civilian military employees between the responsible administrative agency in the military and other military units or agencies.<Amended by Act No. 10647, May 19, 2011>

Article 21 (Filling Vacancies)

If a general civilian military employee who works for a responsible administrative agency in the military voluntarily suspend his/her service or is dispatched to another agency, a general civilian military employee in a fix-term position may be employed to fill the vacancy during the period of voluntary suspension of service or dispatch. <Amended by Act No. 14420, Dec. 20, 2016>

Article 22 (Evaluation of Service Performance)

(1)

The head of each agency shall evaluate the service performance of military personnel and civilian military employees and their competence for performing their duties, on a regular or occasional basis, in an objective and strictly impartial manner and shall reflect the results thereof in personnel management, such as promotion.

(2)	The elements of evaluations on the service performance, the competence for performing duties, the evaluation method, the time for evaluation, and other necessary matters shall be prescribed by basic operating regulations.

Article 23 (Promotion)

(1)

A civilian military employee's promotion to a higher rank shall be based on the evaluation of service performance, the evaluation of career, and verification of other competence: Provided, That a promotion to a Class-V general civilian military employee shall be subject to examination by the promotion examination committee, but a promotion examination may be conducted, if considered necessary for promotion.

(2)	Matters concerning the method of determining candidates for promotion, except minimum service years required for promotion to each rank and limitations on promotion, shall be prescribed by basic operating regulations.

(3)	Matters concerning the composition and operation of the promotion examination committee under paragraph (1) shall be prescribed by Presidential Decree.

Article 24 (Special Exceptions to Special Employment)

(1)	Deleted. <by Act No. 14420, Dec. 20, 2016>

(2)

Special employment pursuant to paragraph (1) and special employment as a civilian military employee in a responsible administrative agency in the military on the grounds prescribed in Article 7 (2) 1 of the Act on the Management of Civilian Personnel in the Military Service shall be limited to a person who has worked for the same responsible administrative agency in the military at the time of his/her retirement.<Amended by Act No. 10647, May 19, 2011>

Article 25 (Payment of Bonus)

The head of each agency may apply differential rates based on the results of evaluation of business performance in paying bonus to affiliated agencies, sub-organizations, or individuals, as prescribed by Presidential Decree.

Article 26 (Application of the Military Personnel Management Act and the Act on the Management of Civilian Personnel in the Military Service)

Except as otherwise provided in this Act, matters concerning the personnel management of military personnel and civilian military employees of responsible administrative agencies in the military shall be governed by the Military Personnel Management Act, the Act on the Management of Civilian Personnel in the Military Service, and other Acts and subordinate statutes governing the personnel management of military personnel and civilian military employees.

Article 27 (Principles for Management of Accounting)

Each responsible administrative agency in the military shall be accounted for in general accounts, and general accounts shall have separate items for responsible administrative agencies in the military, while their autonomy in budget management shall be guaranteed to the level equivalent to that of a responsible administrative agency special accounting institution under the Act on the Establishment and Operation of Responsible Administrative Agencies. <Amended by Act No. 10436, Mar. 8, 2011>

Article 28 (Budgeting Guidelines)

The Minister of Strategy and Finance may, when he/she prepares guidelines for formulation of budget bills pursuant to Article 29 (1) of the National Finance Act, establish separate guidelines for responsible administrative agencies in the military, hearing the opinion of the Minister of National Defense, so as to reflect characteristics of responsible administrative agencies in the military therein.

Article 29 (Re-Appropriation of Budget)

(1)	Notwithstanding Article 46 of the National Finance Act, if it is particularly necessary for budget execution, an amount appropriated for an account may be re-appropriated for another account within the extent of the total sum of each expenditure budget, as prescribed by Presidential Decree.

(2)

A head of agency shall, when he/she re-appropriates the budget pursuant to paragraph (1), forward a statement, clearly describing the amount of each account and the reasons for such re-appropriation, to the Minister of National Defense, the Minister of Strategy and Finance, and the Board of Audit and Inspection of Korea.

Article 30 (Carryover of Budget)

(1)

Expenses in the nature of ordinary expenditure, which have not been disbursed within the relevant fiscal year out of the expenditure budget for each fiscal year due to an unavoidable cause or event, may be carried over to the following fiscal year and disbursed during the following fiscal year within the extent prescribed by Presidential Decree.

(2)	Article 48 (4) and (7) of the National Finance Act shall apply mutatis mutandis to cases falling under paragraph (1).

Article 31 (Bearing of Costs and Expenses)

(1)

If a local government or a particular agency or organization gains substantial benefits from a project carried out by a responsible administrative agency in the military, the Minister of National Defense may require the person who enjoys such benefits from such project to bear some costs and expenses incurred in relation to the project.

(2)	Costs and expenses that a local government or a particular agency or organization shall bear pursuant to paragraph (1) shall be determined by an agreement between the Minister of National Defense and the local government or the particular agency or organization.

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ACT ON THE ASSIGNMENT AND OPERATION OF RESPONSIBLE ADMINISTRATIVE AGENCIES IN THE MILITARY