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STATE COMPENSATION ACT

Act No. 231, Sep. 8, 1951

Amended by Act No. 1899, Mar. 3, 1967

Act No. 2459, Feb. 5, 1973

Act No. 3235, Jan. 4, 1980

Act No. 3464, Dec. 17, 1981

Act No. 5433, Dec. 13, 1997

Act No. 6310, Dec. 29, 2000

Act No. 7584, Jul. 13, 2005

Act No. 8897, Mar. 14, 2008

Act No. 9803, Oct. 21, 2009

Act No. 14184, May 29, 2016

Act No. 14964, Oct. 31, 2017

 Article 1 (Purpose)
The purpose of this Act is to prescribe the liability of the State or local governments to compensate for damage and the procedures for such compensation.
[This Article Wholly Amended by Act No. 8897, Mar. 14, 2008]
 Article 2 (Compensation Liability)
(1) Where public officials or private persons entrusted with public duties (hereinafter referred to as “public officials”) inflict damage on other persons by intention or negligence in performing their official duties, in violation of the statutes, or where they are liable to compensate for damage under the Compulsory Motor Vehicle Liability Security Act, the State or local governments shall compensate for such damage pursuant to this Act: Provided, That where military personnel, civilian employees of the military, police officials, or reserve forces are killed or injured in the course of performing their duties in relation to any combat, training, etc., they or their bereaved family shall not claim damages under this Act and the Civil Act, if they may receive compensation, such as disaster compensation, pension for the bereaved family, disability pension, under other statutes. <Amended by Act No. 9803, Oct. 21, 2009; Act No. 14184, May 29, 2016>
(2) In cases falling under the main sentence of paragraph (1), if such damage has been caused by intention or gross negligence of a public official, the State or local governments may demand reimbursement to the relevant public official.
[This Article Wholly Amended by Act No. 8897, Mar. 14, 2008]
 Article 3 (Basis for Compensation)
(1) In applying Article 2 (1), for cases of the deprivation of another person’s life (including cases where another person has died due to damage inflicted on his/her body), compensation shall be made to the inheritor of the victim (hereinafter referred to as “bereaved family”) in accordance with the following subparagraphs:
1. Bereaved family’s compensation which amounts to monthly salary, after-tax monthly income or average wage at the time of death (in a case where death is caused by damage inflicted on the victim’s body, referring to the time of infliction of damage) multiplied by the future workable period;
2. Funeral expenses determined by Presidential Decree.
(2) In applying Article 2 (1), for cases of bodily injury of another person, compensation shall be made to the injured person in accordance with the following subparagraphs:
1. Necessary medical treatment or medical treatment expenses in lieu of medical treatment;
2. If any loss of monthly salary, after-tax monthly income, or average wage has been incurred due to medical treatment mentioned in subparagraph 1, non-duty compensation for the loss during the period of medical treatment;
3. If the injured person remains physically handicapped after the completion of treatment and therapy, physical handicap compensation shall be awarded in an amount calculated by multiplying the future workable period by monthly salary, after-tax monthly income, or average wage at the time injury was inflicted, according to the degree of loss of labor capacity resulting from the physical handicap.
(3) In the case of destruction of or damage to property owned by another person under Article 2 (1), compensation shall be made to the victim in accordance with the following subparagraphs:
1. The market price of the property at the time such damage is inflicted, the necessary repair of the property or the cost of repair in lieu of repair itself;
2. If any loss has been caused to income on account of the repair referred to in subparagraph 1, compensation shall be made to cover the loss caused during such repair.
(4) In the case of loss other than the deprivation of another person’s life, bodily injury or the damage to or the destruction of property, compensation shall be made within the scope of its proximate causal relation with the tort.
(5) The consolation money for mental distress shall be paid to the lineal ascendant, lineal descendant or the spouse of the victim who has died or has been injured, or the victim suffering bodily or other injury in consideration of the social status of the victim, the degree of negligence involved, living conditions of the bereaved family or the victim, and compensation for damage or such within the standards set by Presidential Decree.
(6) The future workable period, degree of physical handicap, and rate of loss of labor capacity as referred to in paragraphs (1) 1, and (2) 3 shall be determined by Presidential Decree.
(7) The monthly salary, after-tax monthly income, or average wage referred to in paragraphs (1) through (3) shall be ascertained by the head of a district tax office or the head of a Si/Gun/Gu (referring to the head of an autonomous Gu) that have jurisdiction over the place of address of such victim and the chief of the office of the victim or other means of credible verification, and in a case where such verification is not available, it shall be determined by Presidential Decree.
[This Article Wholly Amended by Act No. 8897, Mar. 14, 2008]
 Article 3-2 (Amount of Deduction)
(1) Where the victim makes profits and at the same time suffers losses as referred to in Article 2 (1), the amount of the profits shall be deducted from the amount of compensation for damage.
(2) Where the bereaved family compensation as referred to in Article 3 (1), injury compensation, and future medical treatment expenses under paragraph (2) of the said Article are asserted at one instance, the intermediary interest shall be deducted.
(3) The method of deducting the intermediary interest as referred to in paragraph (2) shall be prescribed by Presidential Decree.
[This Article Wholly Amended by Act No. 8897, Mar. 14, 2008]
 Article 4 (Prohibition on Assignment, etc.)
The right to seek compensation from the State for the deprivation of life and bodily injury shall not be assigned or attached.
[This Article Wholly Amended by Act No. 8897, Mar. 14, 2008]
 Article 5 (Liability for Damage Caused by Defects in Public Structures, etc.)
(1) In cases where any damage has been inflicted on another person due to defective construction or management of a road, river or any other public structures, the State or local governments shall redress such damage. In such cases, the provisions of the proviso to Article 2 (1) and Articles 3 and 3-2 shall apply mutatis mutandis.
(2) In applying paragraph (1), if there exists any other person who is to assume the liability for the cause of the damage, the State or local governments may claim indemnity from him/her.
[This Article Wholly Amended by Act No. 8897, Mar. 14, 2008]
 Article 6 (Liability of Person who Bears Expenses, etc.)
(1) In cases where the State or local governments are liable for the redress of damage under Articles 2, 3, and 5, if a person who is in charge of appointment and supervision of public officials or construction and management of public structures is not the same person as the person who is responsible for the disbursement of the salary, allowance or any other expense of public officials or the expenses of construction and management of public structures, the person responsible for such expenses shall also be liable for the redress of such damage.
(2) In cases as referred to in paragraph (1), the person who has redressed the damage may claim indemnity against the person liable for the redress of the damage on account of the special relationship between them.
[This Article Wholly Amended by Act No. 8897, Mar. 14, 2008]
 Article 7 (Liability for Alien)
This Act shall apply only in cases where a mutual guarantee with a corresponding nation exists, if a victim is an alien.
[This Article Wholly Amended by Act No. 8897, Mar. 14, 2008]
 Article 8 (Relationship with Other Acts)
Liability of the State or a local government to redress damage shall be governed by the provisions of the Civil Act, except as otherwise prescribed in this Act: Provided, That if there are different provisions in any Acts other than the Civil Act, such provisions shall prevail.
[This Article Wholly Amended by Act No. 8897, Mar. 14, 2008]
 Article 9 (Relationship between Lawsuit and Compensation Application)
A lawsuit for compensation of damage under this Act may be instituted without filing an application for compensation with the Compensation Council (hereinafter referred to as the “Council”).
[This Article Wholly Amended by Act No. 8897, Mar. 14, 2008]
 Article 10 (Compensation Council)
(1) In order to deliberate on a case of compensation application filed against the State or local governments, a Central Council shall be established in the Ministry of Justice: Provided, That a Special Council shall be established in the Ministry of National Defense in order to deliberate on a case of compensation application for damage inflicted on a person by military personnel or civilian employees of the military.
(2) The Central Council and the Special Council shall establish a District Council, as prescribed by Presidential Decree.
(3) The Central Council, Special Council and District Council shall be under the direction of the Minister of Justice.
(4) Each Council shall have its Chairperson, who exercises general control over the business affairs of the Council and represents the Council.
(5) Non-public official members, from among the members of each Council, shall be deemed public officials for the purposes of Articles 127 through 132 of the Criminal Act. <Newly Inserted by Act No. 14964, Oct. 31, 2017>
(6) Matters concerning jurisdiction, composition, operation and any other necessary matters of each Council shall be prescribed by Presidential Decree.
[This Article Wholly Amended by Act No. 8897, Mar. 14, 2008]
 Article 11 (Authority of Council at Each Level)
(1) The Central Council and Special Council shall deliberate on and deal with the following matters:
1. Cases forwarded from a District Council under Article 13 (6);
2. Cases of application for re-deliberation under Article 15-2;
3. Matters over which both the Councils has jurisdiction under other statutes.
(2) Each District Council shall deliberate on and deal with cases of compensation application for the State or local governments over which the Council has jurisdiction.
[This Article Wholly Amended by Act No. 8897, Mar. 14, 2008]
 Article 12 (Application for Compensation)
(1) Any person who desires to receive compensation under this Act shall file an application for the compensation with the District Council which has jurisdiction over the place where the person’s domicile or seat is located, or where the cause for such compensation has occurred.
(2) The head of the agency, to which the public official who has inflicted damage on a victim belongs, shall advise and encourage the victim or the bereaved family to file an application under paragraph (1).
(3) Where the Chairperson of the Council deems that an application for compensation is inappropriate but correctable, he/she shall demand the correction thereof with fixing a reasonable period.
(4) Where a correction is made pursuant to paragraph (3), it shall be deemed to be effective retroactively to the time of the initial application for compensation.
(5) The period of correction under paragraph (3) shall not be included in the period for a decision on compensation under Article 13 (1).
[This Article Wholly Amended by Act No. 8897, Mar. 14, 2008]
 Article 13 (Deliberation and Decision)
(1) Upon receipt of an application for compensation, a District Council shall, without delay, conduct an inspection of evidence, such as an examination of witnesses, appraisal, and verification, and, through deliberation of the Council, render a decision of the payment of compensation, rejection or dismissal thereof (hereinafter referred to as “decision on compensation”) within four weeks.
(2) The District Council may, if it considers the payment of expenses urgent, decide to pay in advance some of the funeral expenses, medical treatment expenses, and repair expenses under Article 3 (1) 2, (2) 1, and (3) 1. In such cases, the expenses paid in advance shall be deducted from the amount of compensation after a decision on compensation is made.
(3) Such matters as the standards, methods, and procedures, etc. for advance payment under the former part of paragraph (2) shall be prescribed by Presidential Decree.
(4) Notwithstanding paragraph (2), where there is no time to call a meeting of the District Council or there is any unavoidable reason therefor, the Chairperson of the District Council may, by authority, decide to pay in advance the compensation. In such cases, the Chairperson shall report thereon to the District Council and obtain ratification therefrom, and if he/she fails to get such ratification, the decision of such advance payment shall lose its effect.
(5) The Council shall deliberate on and determine payment of compensation under Articles 3 and 3-2.
(6) After the District Council has deliberated on a case of compensation application, it shall forward without delay case records together with any deliberative opinion to the Central or Special Council, if such case falls under any of the following subparagraphs:
1. Where the roughly estimated amount of compensation is in excess of the amount determined by Presidential Decree;
2. Where Presidential Decree requires the Central or Special Council to deliberate on and determine cases.
(7) When the Central or Special Council receives case records under paragraph (6), it shall make a decision on compensation within four weeks.
(8) The Council shall reject an application for compensation in the case falling under any of the following subparagraphs:
1. Where the applicant has previously received the decision of the payment of compensation or the dismissal thereof due to the same cause: Provided, That this shall not apply to cases where the applicant who received the decision of dismissal explains that an important piece of evidence has come to light;
2. Where the applicant has previously received, due to the same cause, the final and conclusive judgment of the payment of compensation or the rejection thereof through institution of a lawsuit for damage compensation under this Act;
3. Where an application for compensation is inappropriate and its defect is not correctable or the applicant fails to comply with the demand for correction under Article 12 (3).
[This Article Wholly Amended by Act No. 8897, Mar. 14, 2008]
 Article 14 (Service of Written Decision)
(1) The Council shall, when a decision of compensation is made, serve an authentic copy of the decision to the applicant within one week from the date on which the decision is made.
(2) The provisions of the Civil Procedure Act concerning service shall apply mutatis mutandis to the service as referred to in paragraph (1).
[This Article Wholly Amended by Act No. 8897, Mar. 14, 2008]
 Article 15 (Applicant’s Consent and Payment of Compensation)
(1) An applicant who has obtained a decision of compensation shall request, without delay, the payment of compensation, attaching consent to the decision, to the State or a local government.
(2) The procedures for payment of compensation, the agency required to pay the compensation, the time for payment and other necessary details shall be determined by Presidential Decree.
(3) If the applicant has obtained a decision of compensation and fails to request the payment of compensation, or if the relevant local government fails to pay the compensation within the period as referred to in Presidential Decree, the applicant or the relevant local government shall be considered as not having consented to the decision rendered.
[This Article Wholly Amended by Act No. 8897, Mar. 14, 2008]
 Article 15-2 (Application for Re-deliberation)
(1) An applicant whose application for compensation was dismissed (including being partially dismissed) or rejected by a District Council may apply for re-deliberation to the Central or Special Council through the relevant District Council within two weeks from the date when an authenticated copy of the decision was served.
(2) The District Council, upon receipt of an application for re-deliberation, shall forward all of the documents regarding the application for compensation to the Central or Special Council within one week.
(3) The Central or Special Council shall make, within four weeks, its decision on the application filed under paragraph (1) through deliberation on the case.
(4) Where the decision of the District Council to reject an application for compensation is in violation of any statutes, the Central or Special Council may remand the case in question to the relevant District Council.
(5) Where an applicant whose application for compensation has been rejected makes an application for re-deliberation after correction of an error in question, the Central or Special Council may remand the case in question to the relevant District Council.
(6) The provisions of Articles 14 and 15 shall apply mutatis mutandis to the decision of compensation made by the Central or Special Council on an application for re-deliberation.
[This Article Wholly Amended by Act No. 8897, Mar. 14, 2008]
 Article 16 Deleted. <by Act No. 5433, Dec. 13, 1997>
 Article 17 Deleted. <by Act No. 8897, Mar. 14, 2008>
ADDENDA
(1) (Enforcement Date) This Act shall enter into force thirty days after the date of its promulgation.
(2) (Acts to be Repealed) The State Compensation Act and the Procedural Act for Demanding State Redress are hereby repealed.
(3) (Transitional Measures) Cases pending before the court as at the time this Act enters into force shall not be subject to Article 9.
(4) (Transitional Measures) With regard to cases of demands for payment of compensation pending before a council formed under any of the previous statutes, the period prescribed in this Act shall proceed from the date of the enforcement of this Act.
ADDENDUM <Act No. 2459, Feb. 5, 1973>
This Act shall enter into force on the date of its promulgation.
ADDENDA <Act No. 3235, Jan. 4, 1980>
(1) (Enforcement Date) This Act shall enter into force on February 1, 1980.
(2) (Transitional Measures on Jurisdiction of Council) The claims pending before the Central and the Special Council when this Act becomes effective, shall be considered to be pending before the Council which has jurisdiction under this Act beginning with the date when the application for redress of damages was filed, and the claims shall be forwarded immediately to the Council which has jurisdiction.
(3) (Transitional Measures on Determination of Damages) The decision of compensation which is rendered to damages by the Central and the Special Council when this Act enters into force, shall be considered to have been rendered by the Council which has jurisdiction.
ADDENDA <Act No. 3464, Dec. 17, 1981>
(1) (Enforcement Date) This Act shall enter into force on February 1, 1982.
(2) (Transitional Measures) The application for permission pending before the Central or Special Council when this Act enters into force shall be deliberated on and decided by the Council under this Act.
ADDENDA <Act No. 5433, Dec. 13, 1997>
(1) (Enforcement Date) This Act shall enter into force on March 1, 1998.
(2) (Transitional Measures) The application for permission pending before the Central, District or Special Council when this Act enters into force shall be deliberated on and decided by the Council under the amended provisions.
ADDENDA <Act No. 6310, Dec. 29, 2000>
(1) (Enforcement Date) This Act shall enter into force on the date of its promulgation.
(2) (Transitional Measures) With respect to cases pending before the Council and cases of lawsuit for damages pending before a court as at the time this Act enters into force, the amended provisions of this Act shall apply.
ADDENDUM <Act No. 7584, Jul. 13, 2005>
This Act shall enter into force on the date of its promulgation.
ADDENDUM <Act No. 8897, Mar. 14, 2008>
This Act shall enter into force on the date of its promulgation.
ADDENDUM <Act No. 9803, Oct. 21, 2009>
This Act shall enter into force on the date of its promulgation.
ADDENDA <Act No. 14184, May 29, 2016>
Article 1 (Enforcement Date)
This Act shall enter into force six months after the date of its promulgation.
Article 2 Omitted.
ADDENDUM <Act No. 14964, Oct. 31, 2017>
This Act shall enter into force on the date of its promulgation.