ENFORCEMENT DECREE OF THE LOCAL SUBSIDY ACT
Wholly Amended by Presidential Decree No. 12446, May 7, 1988
Amended by Presidential Decree No. 13189, Dec. 31, 1990
Presidential Decree No. 13537, Dec. 31, 1991
Presidential Decree No. 13766, Dec. 1, 1992
Presidential Decree No. 14486, Dec. 31, 1994
Presidential Decree No. 15571, Dec. 31, 1997
Presidential Decree No. 16629, Dec. 28, 1999
Presidential Decree No. 17446, Dec. 31, 2001
Presidential Decree No. 18660, Dec. 31, 2004
Presidential Decree No. 19146, Nov. 30, 2005
Presidential Decree No. 19781, Dec. 27, 2006
Presidential Decree No. 20444, Dec. 13, 2007
Presidential Decree No. 20741, Feb. 29, 2008
Presidential Decree No. 21087, Oct. 20, 2008
Presidential Decree No. 21168, Dec. 17, 2008
Presidential Decree No. 21317, Feb. 6, 2009
Presidential Decree No. 21499, May 21, 2009
Presidential Decree No. 21976, Jan. 1, 2010
Presidential Decree No. 22543, Dec. 27, 2010
Presidential Decree No. 23121, Sep. 6, 2011
Presidential Decree No. 23441, Dec. 30, 2011
Presidential Decree No. 24293, Jan. 1, 2013
Presidential Decree No. 24425, Mar. 23, 2013
Presidential Decree No. 25041, Dec. 30, 2013
Presidential Decree No. 25318, Apr. 22, 2014
Presidential Decree No. 25751, Nov. 19, 2014
Presidential Decree No. 25781, Nov. 28, 2014
Presidential Decree No. 25909, Dec. 30, 2014
Presidential Decree No. 25957, Dec. 31, 2014
Presidential Decree No. 26328, jun. 22, 2015
Presidential Decree No. 26697, Dec. 10, 2015
Presidential Decree No. 27113, Apr. 28, 2016
Presidential Decree No. 28211, Jul. 26, 2017
Presidential Decree No. 28526, Dec. 29, 2017
The purpose of this Decree is to provide for matters delegated pursuant to the Local Subsidy Act, and matters necessary for the enforcement thereof. [This Article Wholly Amended by Presidential Decree No. 23441, Dec. 30, 2011]
| Article 2 (Calculation Date of Amount of Subsidies) |
Local subsidies (hereinafter referred to as "subsidies") shall be calculated as of January 1 of each year: Provided, That special subsidies under Article 9 of the Local Subsidy Act (hereinafter referred to as the "Act") shall be calculated as at the time a ground for granting such special subsidies arises. [This Article Wholly Amended by Presidential Decree No. 23441, Dec. 30, 2011]
| Article 3 (Data for Calculation of Subsidies) |
| (1) | The head of each local government shall provide the Minister of the Interior and Safety with data (limited to matters concerning the special subsidy tax under Article 9 (1) 2 of the Act and the fire safety subsidies under Article 9-4 of the Act; hereinafter the same shall apply) necessary for calculation of subsidies of the relevant local government: Provided, That a Special Metropolitan City Mayor or Metropolitan City Mayor shall incorporate such data with data from autonomous Gus under his/her jurisdiction and provide them to the Minister of the Interior and Safety. <Amended by Presidential Decree No. 24425, Mar. 23, 2013; Presidential Decree No. 25751, Nov. 19, 2014; Presidential Decree No. 25957, Dec. 31, 2014; Presidential Decree No. 28211, Jul. 26, 2017> |
| (2) | The head of a Si/Gun shall provide data for calculation of subsidies pursuant to paragraph (1) through a Metropolitan City Mayor or a Do Governor (hereinafter referred to as the "Mayor/Do Governor"), and the relevant Mayor/Do Governor shall inspect such data and provide them to the Minister of the Interior and Safety with his/her opinions attached thereto. <Amended by Presidential Decree No. 24425, Mar. 23, 2013; Presidential Decree No. 25751, Nov. 19, 2014; Presidential Decree No. 25957, Dec. 31, 2014; Presidential Decree No. 28211, Jul. 26, 2017> |
| (3) | The head of each local government shall prepare and keep the register in which details on data for calculation of subsidies under paragraph (1) are recorded. |
| (4) | If the head of a central administrative agency receives a request from the Minister of the Interior and Safety to provide data necessary for calculation of subsidies with regard to office duties under his/her supervision, he/she shall cooperate on such request. <Amended by Presidential Decree No. 24425, Mar. 23, 2013; Presidential Decree No. 25751, Nov. 19, 2014; Presidential Decree No. 25957, Dec. 31, 2014; Presidential Decree No. 28211, Jul. 26, 2017> |
[This Article Wholly Amended by Presidential Decree No. 23441, Dec. 30, 2011]
| Article 3-2 (Inspection on Data for Calculation of Subsidies) |
| (1) | The Minister of the Interior and Safety may inspect the register prepared and kept by the head of each local government (excluding an autonomous Gu) pursuant to Article 3 (3), in order to confirm whether data for calculation of subsidies provided under Article 3 (1) are compiled correctly. <Amended by Presidential Decree No. 24425, Mar. 23, 2013; Presidential Decree No. 25751, Nov. 19, 2014; Presidential Decree No. 25957, Dec. 31, 2014; Presidential Decree No. 28211, Jul. 26, 2017> |
| (2) | The Minister of the Interior and Safety may entrust the Mayor/Do Governor with an inspection on data for calculation of a Si/Gun's subsidies under paragraph (1). In such cases, the Mayor/Do Governor entrusted with the inspection shall report the results thereof to the Minister of the Interior and Safety. <Amended by Presidential Decree No. 24425, Mar. 23, 2013; Presidential Decree No. 25751, Nov. 19, 2014; Presidential Decree No. 25957, Dec. 31, 2014; Presidential Decree No. 28211, Jul. 26, 2017> |
[This Article Wholly Amended by Presidential Decree No. 23441, Dec. 30, 2011]
| Article 3-3 Deleted. <by Presidential Decree No. 19781, Dec. 27, 2006> |
| Article 4 (Basis for Calculation of General Subsidies) |
General subsidies under Article 6 (1) of the Act shall be calculated on the basis of the amount of shortage that standard amount of financial revenue supplemented and corrected under Article 8 falls short of the standard amount of financial demand supplemented and corrected under Article 7. [This Article Wholly Amended by Presidential Decree No. 23441, Dec. 30, 2011]
| Article 5 (Items for Estimate and Estimation Unit) |
| (1) | The items for estimate and the estimation unit under Article 7 (2) of the Act shall be as listed in attached Table 1. |
| (2) | The calculation standards for the estimation unit under paragraph (1) shall be as listed in attached Table 2. |
[This Article Wholly Amended by Presidential Decree No. 23441, Dec. 30, 2011]
| Article 6 (Standards for Expenses per Unit) |
The expenses per unit under Article 7 (2) of the Act shall be determined by classifying them according to a Special Metropolitan City, Metropolitan City, Special Self-Governing City, Do, Special Self-Governing Province, Si and Gun. In such cases, such expenses per unit shall be determined in consideration of the basic tax rate that is calculated pursuant to Article 8 (2) of the Act on the basis of the relevant local government's budget for the immediately preceding year, and where there are changes in any factors determining expenses per unit, such as inflation of prices and financial conditions, such changes shall be reflected in the determination of the expenses per unit. [This Article Wholly Amended by Presidential Decree No. 23441, Dec. 30, 2011]
| Article 7 (Supplementation and Correction of Standard Amount of Financial Demand) |
| (1) | The adjustment of expenses per unit, or supplementation and correction of the standard amount of financial demand, under Article 7 (3) of the Act shall be made in accordance with the specified standards or objective principles based on the calculation standards for estimation unit, expenses per unit, price index, and other matters concerning the calculation of the standard amount of financial demand. |
| (2) | "Islands and remote places prescribed by Presidential Decree" in Article 7 (3) 1 of the Act and "underdeveloped regions prescribed by Presidential Decree" in Article 7 (3) 2 of the Act mean as follows: <Amended by Presidential Decree No. 24425, Mar. 23, 2013; Presidential Decree No. 25751, Nov. 19, 2014; Presidential Decree No. 28211, Jul. 26, 2017> |
| 2. | Regions designated by the Minister of the Interior and Safety, which are located far from cities, have low accessibility due to inconvenient transportation, and whose residents have markedly low income and living standards (excluding islands under subparagraph 1). |
| (3) | In order to consider the extraordinary nature of islands or remote places and promote the balanced development of underdeveloped regions under Article 7 (3) of the Act, an increased amount in general management expenses and regional management expenses may be calculated. <Amended by Presidential Decree No. 25318, Apr. 22, 2014> |
| (4) | The standard amount of financial demand may be supplemented and corrected only in any of the following cases: |
| 1. | Where the numerical value of an estimation unit sharply increases or decreases after the base date of data preparation for calculation of subsidies; |
| 2. | Where an administrative or financial demand for newly addition or exclusion occurs after the items for estimate and the estimation unit have been determined; |
| 3. | Where project expenses to be borne by local governments increase due to the suspension of subsidization by the National Treasury, such expenses, and where project expenses indispensible for the implementation of national policies are additionally required; |
| 4. | Where it is necessary to reserve separate funds including natural disaster recovery expenditure or an amount of redemption of a municipal debt to be borne by local governments; |
| 5. | Where the expenses per estimation unit gradually increase or decrease according to the size and density of the numerical value of an estimation unit; |
| 6. | Where it is necessary to reasonably calculate the standard amount of financial demand for the purposes of the balanced development among regions and improvement of the level of social welfare and culture. |
[This Article Wholly Amended by Presidential Decree No. 23441, Dec. 30, 2011]
| Article 7-2 (Special Cases Concerning Supplementation and Correction of Standard Amount of Financial Demand of Sejong Special Self-Governing City) |
| (1) | When the Minister of the Interior and Safety supplements and corrects the standard amount of financial demand under Article 14 (2) of the Special Act on the Establishment, etc. of Sejong Special Self-Governing City, he/she shall do so by adding the amount equivalent to 25/100 of the difference between the standard amount of financial demand and the standard amount of financial revenue to the standard amount of financial demand. <Amended by Presidential Decree No. 24425, Mar. 23, 2013; President Decree No. 25318, Apr. 22, 2014; Presidential Decree No. 25751, Nov. 19, 2014; Presidential Decree No. 28211, Jul. 26, 2017> |
| (2) | In order to supplement and correct the standard amount of financial demand under paragraph (1), the Sejong Special Self-Governing City Mayor shall provide the Minister of the Interior and Safety each year with the data concerning the financial demand which is excluded from the items for estimate, or which is included in the items for estimate but requires additional financial resources. <Amended by Presidential Decree No. 24425, Mar. 23, 2013; Presidential Decree No. 25751, Nov. 19, 2014; Presidential Decree No. 28211, Jul. 26, 2017> |
[This Article Newly Inserted by Presidential Decree No. 24293, Jan. 1, 2013]
| Article 8 (Supplementation and Correction of Standard Amount of Financial Revenue) |
| (1) | The standard amount of financial revenue referred to in Article 8 (3) of the Act shall be supplemented and corrected by the real estate subsidy revenue, non-tax revenue, etc. of the relevant local government. In this case, specific revenues to be supplemented and corrected, methods of supplementation and correction, and other matters shall be prescribed by Ordinance of the Ministry of the Interior and Safety. <Amended by Presidential Decree No. 24425, Mar. 23, 2013; Presidential Decree No. 25751, Nov. 19, 2014; Presidential Decree No. 26697, Dec. 10, 2015; Presidential Decree No. 28211, Jul. 26, 2017> |
| (2) | The standard amount of financial revenue shall be supplemented and corrected in consideration of any factors influencing a change in tax revenues, on the basis of the outlook or the result, etc. of the collection of local tax and non-tax revenues. |
[This Article Wholly Amended by Presidential Decree No. 23441, Dec. 30, 2011]
| Article 9 Deleted. <by Presidential Decree No. 23441, Dec. 30, 2011> |
| Article 9-2 (Standards for Granting Special Subsidies, etc.) |
| (1) | The standards for granting special subsidies for each case under Article 9 (1) of the Act shall be as follows: <Amended by President Decree No. 25318, Apr. 22, 2014> |
| 1. | Special subsidies under Article 9 (1) 1 of the Act: It shall be granted where a special financial demand occurs due to installation of local public facilities, etc.; |
| 2. | Special subsidies under Article 9 (1) 2 of the Act: It shall be granted where a special financial demand occurs to offset the share of local expenses to be borne due to various disasters, safety control, etc.; |
| 3. | Special subsidies under Article 9 (1) 3 of the Act: It shall be granted where a special financial demand occurs to revitalize a local economy, stabilize the livelihood of residents, strengthen the local administrative function, implement policies related to national events, provide financial support for local governments with excellent performance of local administration and financial management, or implement other important policies. |
| (2) | The criteria for selecting a local government that has achieved excellent outcomes in local administration and financial management under Article 9 (1) 3 of the Act shall be as follows: <Amended by Presidential Decree No. 24425, Mar. 23, 2013; President Decree No. 25318, Apr. 22, 2014; Presidential Decree No. 25751, Nov. 19, 2014; Presidential Decree No. 28211, Jul. 26, 2017> |
| 1. | A local government that has achieved excellent performance in the appraisal conducted by the State in regard to the outcomes in the fields of administrative and financial management; |
| 2. | A local government that has achieved excellent performance in the field of resident welfare, local economy, local development, processing of civil complaints, informatization, etc.; |
| 3. | A local government recognized by the Minister of the Interior and Safety as having proactively cooperated in the promotion of State policies. |
| (3) | Special subsidies shall be granted as promptly as possible so that any project that has the relevant financial demand is carried out smoothly. |
[This Article Wholly Amended by Presidential Decree No. 23441, Dec. 30, 2011]
| Article 10 Deleted. <by Presidential Decree No. 18660, Dec. 31, 2004> |
| Article 10-2 Deleted. <by Presidential Decree No. 25957, Dec. 31, 2014> |
| Article 10-3 (Standards, etc. for Granting Real Estate Subsidies) |
| (1) | The standards for granting real estate subsidies under Article 9-3 (2) of the Act are as follows: <Amended by Presidential Decree No. 26697, Dec. 10, 2015> |
| 1. | A Special Self-Governing City, and a Si/Gun/autonomous Gu: The amount calculated according to the following criteria and percentages: |
| (a) | Financial conditions: 50/100; |
| (b) | Social welfare: 35/100; |
| (c) | Regional education: 10/100; |
| (d) | Scale of real estate holding taxes: 5/100; |
| 2. | Jeju Special Self-Governing Province: The amount equivalent to 18/1,000 of the total amount of real estate subsidies. |
| (2) | The amount adjusted owing to the difference between the estimated comprehensive real estate holding tax and the settled amount thereof pursuant to Article 5 (3) 2 of the Act shall be granted according to the standards for granting real estate subsidies that are in force as at the time such difference occurs. <Amended by President Decree No. 25318, Apr. 22, 2014> |
| (3) | Real estate subsidies shall be granted from December 16 to December 31 of each year, but may be granted prior to such period within allowable budgetary limits. |
| (4) | Detailed matters concerning the calculation of the amount of real estate subsidies granted to each local government under paragraph (1); the procedures and methods for granting the real estate subsidies; and other necessary matters shall be prescribed by Ordinance of the Ministry of the Interior and Safety. <Amended by Presidential Decree No. 24425, Mar. 23, 2013; Presidential Decree No. 25751, Nov. 19, 2014; Presidential Decree No. 28211, Jul. 26, 2017> |
[This Article Wholly Amended by Presidential Decree No. 23441, Dec. 30, 2011]
| Article 10-4 (Standards, etc. for Granting Fire Fighting Safety Subsidies) |
| (1) | Fire fighting safety subsidies referred to in Article 9-4 (1) of the Act shall be granted to the Special Metropolitan City, Metropolitan Cities, the Special Self-Governing City, Dos, and the Special Self-Governing Province (hereinafter referred to as “Cities and Dos”). In this case, fire fighting safety subsidies shall be granted to Cites and Dos having jurisdiction over a large city with the population of not less than one million that conduct affairs for fire fighting pursuant to subparagraph 6 of Article 41 of the Special Act on Decentralization and Restructuring of Local Administrative Systems, separately from the fire fighting safety subsidies to be paid to such large city. |
| (2) | Projects for which the fire fighting safety subsidies referred to in paragraph (1) may be used are as follows: |
| 1. | In the field of fire fighting: Expanding and increasing fire-fighting facilities (including fire-fighting equipment; hereinafter the same shall apply) and reinforcing fire-fighting safety management; |
| 2. | In the field of safety: Expanding and increasing safety facilities and reinforcing safety management. |
| 1. | Status of fire fighting and safety facilities, and required investment: 40/100; |
| 2. | Endeavor to prevent disasters and reinforce safety: 40/100; |
| 3. | Financial conditions: 20/100. |
| (4) | The amount adjusted owing to the difference between the budget amount equivalent to 20/100 of the total amount of individual consumption tax levied on tobacco referred to in Article 5 (3) 3 of the Act and the settled account thereof shall be granted according to the standards for granting fire fighting safety subsidies that are in force as at the time such difference occurs. |
| (5) | Procedures and methods for granting fire fighting safety subsidies; particular projects eligible for such subsidies; and standards for granting under paragraph (1) through (3), and other necessary matters shall be prescribed by Ordinance of the Ministry of the Interior and Safety. <Amended by Presidential Decree No. 28211, Jul. 26, 2017> |
[This Article Newly Inserted by Presidential Decree No. 26328, Jun. 22, 2015]
| Article 11 (Notification of Subsidies) |
The Minister of the Interior and Safety shall notify each local government of the total amount of subsidies to be granted to the relevant local government prior to the beginning of each fiscal year: Provided, That where the total amount of subsidies is changed during the fiscal year, or where the amount of subsidies of the relevant local government is changed due to any other special reason, he/she shall notify the relevant local government thereof on each occasion. <Amended by Presidential Decree No. 24425, Mar. 23, 2013; Presidential Decree No. 25751, Nov. 19, 2014; Presidential Decree No. 25957, Dec. 31, 2014; Presidential Decree No. 28211, Jul. 26, 2017>
[This Article Wholly Amended by Presidential Decree No. 23441, Dec. 30, 2011]
| Article 12 (Return or Reduction of Subsidies) |
| (1) | The following are prescribed as circumstances in which a local government makes excessive expenditures or neglects in collecting revenues as referred to in Article 11 (2) of the Act, and the scope of subsidies to be reduced or returned in such circumstances: <Amended by Presidential Decree No. 24293, Jan. 1, 2013; Presidential Decree No. 24425, Mar. 23, 2013; Presidential Decree No. 25751, Nov. 19, 2014; Presidential Decree No. 25781, Nov. 28, 2014; Presidential Decree No. 26697, Dec. 10, 2015; Presidential Decree No. 27113, Apr. 28, 2016; Presidential Decree No. 28211, Jul. 26, 2017> |
| 1. | Where the local government issues municipal bonds, without obtaining approval for issuance thereof from the Minister of the Interior and Safety or complying with the terms and conditions of approval pursuant to the proviso to Article 11 (2) of the Local Finance Act and Article 11 (3) of the said Act: Not more than the amount spent without obtaining approval or complying with the terms and conditions of approval; |
| 1-2. | Where the local government makes an investment or provides funding in violation of Article 18 of the Local Finance Act: Not more than the amount invested or funded in violation of such Article; |
| 1-3. | Where the local government grants a local subsidy as operating expenses in violation of Article 32-2 (2) of the Local Finance Act: Not more than the amount granted as operating expenses in violation of Article 32-2 (2) of such Act; |
| 1-4. | Where the local government spends a local subsidy without deliberation required under Article 32-3 of the Local Finance Act or accepting the result of deliberation: Not more than the amount spent without either deliberation or accepting the result of deliberation; |
| 1-5. | Where the local government grants a local subsidy in duplicate or to an ineligible person in violation of the duty of management referred to in Article 32-2 (5) of the Local Finance Act: Not more than the amount granted in duplicate or to the eligible person; |
| 1-6. | Where the local government that is a local government-subsidized project operator uses a local subsidy for other purpose in violation of Article 32-4 (1) of the Local Finance Act: Not more than the amount used for other purpose; |
| 1-7. | Where the local government that is a local government-subsidized project operator use a local subsidy without approval required under Article 32-4 (2) of the Local Finance Act or complying with the terms and conditions of approval in violation of Article 32-4 (2) of such Act: Not more than the amount used without approval or complying with the terms and conditions of approval; |
| 1-8. | Where the local government fails to issue an order of return upon revocation of a determination on granting a local subsidy, or an order of repayment upon the occurrence of an excess amount in violation of Article 32-8 (2) and (3) of the Local Finance Act: Not more than the amount equivalent to the revoked portion of the local subsidy or the excess amount; |
| 2. | Where the local government makes an expenditure in a financial investment project without undergoing investment appraisal referred to in Article 37 of the Local Finance Act or accepting the result of investment appraisal: Not more than the amount spent without undergoing investment appraisal or accepting the result of investment appraisal; |
| 2-2. | Where the head of a local government in financial crisis, which is designated pursuant to Article 55-2 of the Local Finance Act, compiles a budget for the issuance, etc. of municipal bonds, or compiles and spends a budget for a financial investment project not in compliance with the plan for financial soundness in violation of Article 55-4 (1) or (2) of such Act: Not more than the amount spent not in compliance with the plan for financial soundness; |
| 3. | Where the local government makes an expenditure compiled in its budget in violation of standards for compiling budgets of local governments referred to in Article 38 (2) of the Local Finance Act: Not more than the amount spent in violation of standards for compiling budgets of local governments; |
| 4. | Where the local government spends under mutual convertibility the expenses of the respective policy projects specified in its expenditure budgets in violation of Article 47 (1) of the Local Finance Act: Not more than the amount spent beyond the scope of use of budgets: |
| 5. | Where the local government diverts its budget in contravention of its diversion scope of budget referred to in Article 49 (1) of the Local Finance Act: Not more than the amount spent in contravention of its diversion scope of budget; |
| 7. | Where the local government disobeys an order to return a subsidy or an order to return an excess amount that is issued by the head of a central government agency pursuant to Article 31 (1) of the Subsidy Management Act or Article 31 (2) of such Act: Not more than the amount ordered by the head of the central government agency to be returned; |
| 8. | Where the local government fails to recover a subsidy that has been paid to a subsidy recipient and such local government must recover due to the subsidy recipient’s violation of Article 33 (1) of the Subsidy Management Act: Not more than the amount to be recovered by the local government from the subsidy recipient; |
| 9. | Where the local government makes an expenditure by establishing or changing a social security system without consultation and coordination required under Article 26 (2) and (3) of the Framework Act on Social Security or makes an expenditure without accepting the result of consultation and coordination: Not more than the amount spent without consultation and coordination or accepting the result thereof; |
| 10. | Where the local government is found to have made excessive expenditures or to have neglected in collecting revenues in violation of any statute by the auditing conducted by the Board of Audit and Inspection under Article 22 (1) of the Board of Audit and Inspection Act or the auditing conducted by the competent Minister or the Minister of the Interior and Safety under Article 16 or 171 of the Local Autonomy Act: Not more than the amount spent in violation of such statute or the amount of uncollected revenue. |
| (2) | Where the amount of subsidies is reduced or returned due to a local government’s neglect in collecting revenues under paragraph (1) 10, such amount shall be determined in consideration of how easy it was to collect such revenues. <Amended by Presidential Decree No. 24293, Jan. 1, 2013; Presidential Decree No. 26697, Dec. 10, 2015> |
| (3) | Experts in the relevant field may be asked to give advice on the reduction or return of the amount of subsidies under Article 11 (2) of the Act. |
| (4) | Where subsidies are returned in installments pursuant to Article 11 (4) of the Act, the return period shall be determined by the Minister of the Interior and Safety based on the following annual amounts of return (referring to the amount to be return annually upon issuance of an order for return on one occasion; hereafter the same shall apply in this Article): <Newly Inserted by Presidential Decree No. 26328, Jun. 22, 2015; Presidential Decree No. 28211, Jul. 26, 2017> |
| 1. | Cities/Dos: 4 billion won; |
| 2. | Sis/Guns/Autonomous Gus: 2.5 billion won. |
| (5) | Notwithstanding paragraph (4) 1 and 2, the Minister of the Interior and Safety may increase or decrease the annual amount of return by up to 30/100 thereof, if deemed necessary in consideration of the financial conditions of the local government. <Newly Inserted by Presidential Decree No. 26328, Jun. 22, 2015; Presidential Decree No. 28211, Jul. 26, 2017> |
| (6) | The amount of subsidies returned or reduced pursuant to Article 11 of the Act may be either allocated to offset the financial resources of other local governments or utilized as financial resources to promote the sound fiscal management of local governments. <Amended by Presidential Decree No. 25909, Dec. 30, 2014; Presidential Decree No. 26328, Jun. 22, 2015> |
[This Article Wholly Amended by Presidential Decree No. 23441, Dec. 30, 2011]
| Article 12-2 Deleted. <by Presidential Decree No. 21087. Oct. 20, 2008> |
| Article 13 (Cases of Changes in Jurisdictions and of Abolition, Establishment, Division and Merger of Local Governments) |
The Minister of the Interior and Safety shall, where local governments are abolished, established, divided or merged, or have changes in jurisdictions, adjust the subsidies to be granted to the relevant local government in accordance with the following classifications: <Amended by Presidential Decree No. 25957, Dec. 31, 2014; Presidential Decree No. 28211, Jul. 26, 2017>
| 1. | Where two or more local governments are merged into a new local government: The general subsidies, real estate subsidies, and fire safety subsidies which were supposed to be granted to the previous local governments shall be granted to the new local government; |
| 2. | Where the jurisdiction of a local government is changed, or where one local government is divided into two or more local governments: The general subsidies, real estate subsidies, and fire safety subsidies to be granted to the new local government shall be recalculated pursuant to Articles 6 through 8, 9-3 and 9-4 of the Act, on the basis of the general subsidies, real estate subsidies, and fire safety subsidies which were supposed to be granted to the previous local government: Provided, That if the jurisdiction change of the local government is minor or is confined to part of its jurisdiction, the general subsidies, real estate subsidies, and fire safety subsidies may be adjusted when the subsidies for the next year are calculated; |
| 3. | Where local governments are abolished, established, divided, or have changes in jurisdictions, the special subsidies to be granted to a new local government shall be recalculated in consideration of the conditions under Article 9 (1) of the Act. |
[This Article Wholly Amended by Presidential Decree No. 23441, Dec. 30, 2011]
| Article 14 (Application for Complaint against Amount of Subsidies, etc.) |
Where the Minister of the Interior and Safety deems that any application for complaint filed by a local government pursuant to Article 13 (1) of the Act is reasonable, he/she shall increase or reduce the standard amount of financial demand and the standard amount of financial revenue of the relevant local government when calculating the subsidies for the next period, and shall notify the relevant local government of the result thereof. <Amended by Presidential Decree No. 24425, Mar. 23, 2013; Presidential Decree No. 25751, Nov. 19, 2014; Presidential Decree No. 28211, Jul. 26, 2017> [This Article Wholly Amended by Presidential Decree No. 23441, Dec. 30, 2011]
| Article 15 (Disclosure of Details of Reduced Subsidies) |
The Minister of the Interior and Safety may disclose through the media, etc. the details of self-directed efforts reflected under Article 8-3 of the Act and the details of decision on return or reduction of subsidies under Article 12 (1). <Amended by Presidential Decree No. 24425, Mar. 23, 2013; Presidential Decree No. 25751, Nov. 19, 2014; Presidential Decree No. 28211, Jul. 26, 2017>
[This Article Newly Inserted by Presidential Decree No. 23441, Dec. 30, 2011]
ADDENDA
| (1) | (Enforcement Date) This Decree shall enter into force on the date of its promulgation. |
| (2) | (Transitional Measures) The subsidy subsidized under the previous provisions as at the time this Decree enters into force shall be considered to have been subsidized according to this Decree. |
ADDENDUM <Presidential Decree No. 13189, Dec. 31, 1990>
This Decree shall enter into force on January 1, 1991.
ADDENDUM <Presidential Decree No. 13537, Dec. 31, 1991>
This Decree shall enter into force on January 1, 1992.
ADDENDUM <Presidential Decree No. 13766, Dec. 1, 1992>
This Decree shall enter into force on January 1, 1993.
ADDENDUM <Presidential Decree No. 14486, Dec. 31, 1994>
This Decree shall enter into force on January 1, 1995.
ADDENDUM <Presidential Decree No. 15571, Dec. 31, 1997>
This Decree shall enter into force on January 1, 1998.
ADDENDUM <Presidential Decree No. 16629, Dec. 28, 1999>
This Decree shall enter into force on January 1, 2000.
ADDENDA <Presidential Decree No. 17446, Dec. 31, 2001>
| (1) | (Enforcement Date) This Decree shall enter into force on January 1, 2002. |
| (2) | (Application Example to Reduction or Return of Local Subsidies) The amended provisions of Article 12 (1) shall apply beginning from the first cases where a local government has spent significantly excessive expenses or neglected to collect revenues to be secured, in violation of the statutes after this Decree enters into force. |
ADDENDUM <Presidential Decree No. 18660, Dec. 31, 2004>
This Decree shall enter into force on January 1, 2005: Provided, That the amended provisions of attached Tables 1 and 2 shall enter into force on January 1, 2006.
ADDENDA <Presidential Decree No. 19146, Nov. 30, 2005>
| (1) | (Enforcement Date) This Decree shall enter into force on the date of its promulgation. |
| (2) | (Deduction of Imposition and Collection Expenses for Global Real Estate Tax) The imposition and collection expenses for global real estate tax under the provisions of paragraph (2) of the Addenda to the amended Local Subsidy Act (Act No. 7333) shall be the required expenses incurred in securing, etc. of manpower and equipment for the imposition and collection of the global real estate tax and the expenses required for the survey, etc. of individual residence prices, which have been determined by consultation with the Minister of Planning and Budget and the Minister of the Interior and Safety. |
ADDENDA <Presidential Decree No. 19781, Dec. 27, 2006>
Article 1 (Enforcement Date)
This Decree shall enter into force on the date of its promulgation.
Article 2 (Special Cases of Application in Calculation of Portions of Decrease in Tax Revenues)
Notwithstanding the amended provisions of Article 10-3 (1) through (3), the portion of decrease in tax revenues for fiscal year 2006 shall be calculated pursuant to the following paragraphs:
| (1) | The portion of decrease in tax revenues under the provisions of Article 9-3 (2) of the Act (hereafter in this Article referred to as "portion of decrease in tax revenues") shall be divided into the portion of decrease in property tax, etc. and the portion of decrease in transaction tax. |
| (2) | The portion of decrease in property tax, etc. under the provisions of paragraph (1) shall be calculated according to the following subparagraphs: |
| 1. | The portion of decrease in property tax pursuant to the enforcement of the Amended Local Tax Act (Act No. 7332) shall be computed by a Si/Gun/autonomous Gu by deducting the amount of the property tax for the relevant year from the aggregate of the levy amount of property tax for fiscal year 2004 (excluding the property tax for ships and aircraft; hereinafter the same shall apply in this Article) and the amount of comprehensive land tax for fiscal year 2004. In such cases, the levy amount of property tax shall be the tax amount computed by applying the standard tax rate of Article 188 (1) of the Local Tax Act in compatibility with the upper limit of tax burden referred to in the previous provisions of Article 195-2 of the partial Amendments to the Local Tax Act (Act No. 7972) prior to the enforcement thereof; |
| 2. | The portion of decrease in property tax and urban planning tax pursuant to fall in the upper limit of tax burden referred to in the amended provisions of Article 195-2 of the partial Amendments to the Local Tax Act (Act No. 7972) shall be computed by each local government by deducting respectively the tax amount of property tax and urban planning tax for relevant year computed by applying the upper limit of tax burden reduced pursuant to the enforcement of the said Act, from the tax amount of property tax and urban planning tax for the relevant year computed pursuant to the upper limit of tax burden prior to the enforcement of the said Act. In such cases, with respect to a Si/Gun/autonomous Gu, the tax rate of whose property tax is adjusted below the standard tax rate under the provisions of Article 188 (3) of the Local Tax Act, the portions of decrease shall be computed on the basis of the tax amount calculated by applying the tax rate. |
| (3) | The portion of decrease in transaction tax referred to in paragraph (1) (hereinafter in this Article referred to as "portion of decrease in transaction tax") shall be the aggregate of the tax amounts calculated according to the following subparagraphs by the Special Metropolitan City, a Metropolitan City, a Do, and a Special Self-Governing Province: |
| 1. | The portion of decrease in transaction tax for January through August 2006: It shall be computed by deducting the aggregate of the amounts of acquisition tax and registration tax on the housing transactions for value between individuals for January through August 2006, from the aggregate of the amounts of acquisition tax and registration tax on the housing transactions for value between individuals for January through August 2005; |
| 2. | The portion of decrease in transaction tax for September through December 2006: It shall be 4/12 of the portion of decrease in transaction tax computed by multiplying the amounts of acquisition tax and registration tax on the housing transactions for value for fiscal year 2005 by the reduced tax rate calculated pursuant to the formula provided for in each of the following items and the national average index of increased or decreased rates in the revenues of the acquisition tax and registration tax for ten years immediately preceding the relevant year (referring to the one obtained by dividing by ten the total of numbers calculated by dividing the aggregate revenue amount of the acquisition tax and registration tax for each such year by the aggregate revenue amount thereof for the preceding year), respectively: |
| (a) | The reduced tax rate of the acquisition tax on the housing transactions for value between individuals=b-a/1-a; |
| (b) | The reduced tax rate of the acquisition tax and registration tax on the housing transactions for value with corporations=b. |
a: The reduction rate of tax amount pursuant to the previous provisions of Article 273-2 of the partial Amendments to the Local Tax Act (Act No. 7972) prior to the enforcement thereof. b: The reduction rate of tax amount pursuant to the amended provisions of Article 273-2 of the partial Amendments to the Local Tax Act (Act No. 7972).
ADDENDUM <Presidential Decree No. 20444, Dec. 13, 2007>
This Decree shall enter into force on the date of its promulgation.
ADDENDA <Presidential Decree No. 20741, Feb. 29, 2008>
Article 1 (Enforcement Date)
This Decree shall enter into force on the date of its promulgation. (Proviso Omitted.)
Articles 2 through 6 Omitted.
ADDENDA <Presidential Decree No. 21087, Oct. 20, 2008>
Article 1 (Enforcement Date)
This Decree shall enter into force on the date of its promulgation. (Proviso Omitted.)
Articles 2 through 4 Omitted.
ADDENDA <Presidential Decree No. 21168, Dec. 17, 2008>
Article 1 (Enforcement Date)
This Decree shall enter into force on January 1, 2009.
Article 2 (Repeal of Other Statutes)
Article 3 (Examples of Application to Return or Reduction of Subsidies)
The amended provisions of Article 12 (1) 1 and 2 shall apply beginning with the first payment of expenses by a local government in violation of the relevant statutes after this Decree enters into force.
ADDENDUM <Presidential Decree No. 21317, Feb. 6, 2009>
This Decree shall enter into force on the date of its promulgation.
ADDENDA <Presidential Decree No. 21499, May 21, 2009>
Article 1 (Enforcement Date)
This Decree shall enter into force on the date of its promulgation.
Article 2 (Special Cases)
When the tax rates of urban planning tax of a Si/Gun pursuant to Article 237 (2), the tax rates of public facilities tax of the Special Metropolitan City, a Metropolitan City or a Do pursuant to Articles 1 (2) and 240 (3) of the same Act or the tax rates of urban planning tax or public facilities tax of a Special Self-Governing Province pursuant to Article 74 of the Special Act on the Establishment of Jeju Special Self-Governing Province and the Development of Free International City are different from the standards for urban planning tax and public facilities tax of the year 2009 recommended by the Minister of Public Administration and Security, the relevant Special Metropolitan City, Metropolitan City, Do, Special Self-Governing Province or Si/Gun shall, notwithstanding the amended provisions of Article 10-3, calculate the real estate subsidies on the assumption that there is no portion of decrease in tax revenues pursuant to Article 9-3 (2) of the Act in the year 2009.
ADDENDUM <Presidential Decree No. 21976, Jan. 1, 2010>
This Decree shall enter into force on the date of its promulgation.
ADDENDA <Presidential Decree No. 22543, Dec. 27, 2010>
Article 1 (Enforcement Date)
This Decree shall enter into force on the date of its promulgation.
Article 2 (Applicability)
The amended provisions of Article 9 (4) shall apply to the special subsidies used in violation of the conditions for grant or purposes of use on or after the date this Decree enters into force.
Article 3 (Special Cases of Application to Areas Eligible for Adjustment of Expenses per Unit or Supplementation and Correction of Standard Amount for Financial Demand)
When calculating the standard amount for financial demand for the year 2011 pursuant to Article 7 of the Act, the expenses per unit may be adjusted or the standard amount for financial demand may be supplemented and corrected based on the same remote area over which the expenses per unit was adjusted or the standard amount for financial demand was supplemented and corrected when calculating the standard amount for financial demand for the year 2010, notwithstanding the amended provisions of Article 6 (2) 2.
ADDENDA <Presidential Decree No. 23121, Sep. 6, 2011>
Article 1 (Enforcement Date)
This Decree shall enter into force on September 9, 2011. (Proviso Omitted.)
Articles 2 through 5 Omitted.
ADDENDUM <Presidential Decree No. 23441, Dec. 30, 2011>
This Decree shall enter into force on January 1, 2012: Provided, That the portion concerning a Special Self-Governing City in the amended provisions of Articles 6, 10-2 (2) and 10-3 (1) 1 shall enter into force on July 1, 2012.
ADDENDA <Presidential Decree No. 24293, Jan. 1, 2013>
Article 1 (Enforcement Date)
This Decree shall enter into force on January 1, 2013.
Article 2 (Applicability to Reduction, etc. of Subsidies)
| (1) | The amended provisions of Article 12 (1) 4 and 5 shall apply to the cases of budget spending or diversion of budget in violation of the scope of budget spending or diversion of budget after this Decree enters into force. |
| (2) | The amended provisions of Article 12 (1) 6 shall apply to the cases where significantly excessive costs have been spent or the collection for securing revenues has been neglected in violation of any statute after this Decree enters into force. |
ADDENDA <Presidential Decree No. 24425, Mar. 23, 2013>
Article 1 (Enforcement Date)
This Decree shall enter into force on the date of its promulgation. (Proviso Omitted.)
Articles 2 through 6 Omitted.
ADDENDUM <Presidential Decree No. 25041, Dec. 30, 2013>
This Decree shall enter into force on January 1, 2014.
ADDENDUM <Presidential Decree No. 25318, Apr. 22, 2014>
This Decree shall enter into force on the date of its promulgation.
ADDENDA <Presidential Decree No. 25751, Nov. 19, 2014>
Article 1 (Enforcement Date)
This Decree shall enter into force on the date of its promulgation. Provided, That the provisions of Presidential Decree amended under Article 5 of the Addenda, which were promulgated before this Decree entered into force but the enforcement date of which has not arrived, shall take into force on the enforcement date of the relevant Presidential Decree, respectively.
Articles 2 through 5 Omitted.
ADDENDA <Presidential Decree No. 25781, Nov. 28, 2014>
Article 1 (Enforcement Date)
This Decree shall enter into force on November 29, 2014. (Proviso Omitted.)
Articles 2 through 4 Omitted.
ADDENDUM <Presidential Decree No. 25909, Dec. 30, 2014>
This Decree shall enter into force on January 1, 2015. Provided, That the amended provisions under Article 12 (4) shall enter into force on January 1, 2016.
ADDENDA <Presidential Decree No. 25957, Dec. 31, 2014>
Article 1 (Enforcement Date)
This Decree shall enter into force on January 1, 2015.
Article 2 (Special Cases on Payment, etc. of General Subsidies following Change in Number of Local Governments to Which General Subsidies were Not Granted)
The Minister of the Interior and Safety shall disburse the granted subsidies calculated pursuant to Article 2 (1) of the Local Subsidy Act (Act No. 12953) to the relevant local government respectively, in cases where there exists any change in the number of local governments to which the general subsidies have not been granted under Article 2 (3) of the Addenda to the Local Subsidy Act (Act No. 12953).
ADDENDA <Presidential Decree No. 26328, Jun. 22, 2015>
Article 1 (Enforcement Date)
This Decree shall enter into force on the date of its promulgation: Provided, That amended Article 12 (4) through (6) shall enter into force on July 1, 2015.
Article 2 (Special Cases concerning Use of Fire Fighting Safety Subsidies)
Notwithstanding amended Article 10-4 (2), Cities/Dos shall use not less than 75/100 of the fire fighting safety subsidies granted pursuant to Article 9-4 of the Act for the field of fire-fighting referred to in Article 10-4 (2) 1 each year until 2017.
ADDENDA <Presidential Decree No. 26697, Dec. 10, 2015>
Article 1 (Enforcement Date)
This Decree shall enter into force on January 1, 2016: Provided, That amended Article 10-3 shall enter into force on the date of its promulgation.
Article 2 (Applicability concerning Standards for Granting Real Estate Subsidies)
Amended Article 10-3 (1) 1 (b) and (c) shall begin to apply from the first real estate subsidy to be granted on or after the enforcement date provided for in the proviso to Article 1 of the Addenda.
ADDENDA <Presidential Decree No. 27113, Apr. 28, 2016>
Article 1 (Enforcement Date)
This Decree shall enter into force on April 29, 2016. (Proviso Omitted.)
Articles 2 through 6 Omitted.
ADDENDA <Presidential Decree No. 28211, Jul. 26, 2017>
Article 1 (Enforcement Date)
This Decree shall enter into force on the date of its promulgation: Provided, That the provisions amending any Decree that was promulgated before this Decree enters into force but has yet to enter into force, among the Decrees amended pursuant to Article 8 of the Decree, shall enter into force on the respective date the relevant Decree enters into force.
Articles 2 through 8 Omitted.
ADDENDUM <Presidential Decree No. 28526, Dec. 29, 2017>
This Decree shall enter into force on January 1, 2018.