BUDGETARY INCENTIVE REGULATIONS
Presidential Decree No. 16518, Aug. 6, 1999
Amended by Presidential Decree No. 17104, Jan. 4, 2001
Presidential Decree No. 17195, Apr. 9, 2001
Presidential Decree No. 19208, Dec. 28, 2005
Presidential Decree No. 19527, jun. 15, 2006
Presidential Decree No. 19806, Dec. 29, 2006
Presidential Decree No. 20720, Feb. 29, 2008
Presidential Decree No. 21641, Jul. 27, 2009
Presidential Decree No. 23430, Dec. 30, 2011
Presidential Decree No. 24441, Mar. 23, 2013
Presidential Decree No. 25751, Nov. 19, 2014
Presidential Decree No. 26844, Dec. 31, 2015
Presidential Decree No. 26980, Feb. 12, 2016
Presidential Decree No. 27681, Dec. 27, 2016
Presidential Decree No. 27763, Jan. 6, 2017
Presidential Decree No. 27764, Jan. 6, 2017
Presidential Decree No. 28211, Jul. 26, 2017
Presidential Decree No. 28510, Dec. 29, 2017
CHAPTER I GENERAL PROVISIONS
[This Article Wholly Amended by Presidential Decree No. 23430, Dec. 30, 2011]
The terms used in this Decree shall be defined as follows:
| 1. | The term "personnel reduction” means voluntary reduction of the fixed number of personnel in an organization of office or under relevant statutes: |
| 2. | The term “personnel expenses” means salaries, annual salaries, and good attendance allowances paid to public officials as defined in Article 2 of the State Public Officials Act, and expenses determined by the Minister of Strategy and Finance; |
| 3. | The term “ordinary expenses” means expenses for the maintenance and operation of each institution or facility, determined by the Minister of Strategy and Finance; |
| 4. | The term “major business expenses” means expenses excluding personnel expenses and ordinary expenses. |
[This Article Wholly Amended by Presidential Decree No. 23430, Dec. 30, 2011]
| Article 3 (Scope of Application) |
| (2) | If bonuses, etc. are paid under the Public Officials Suggestion Regulations or other statutes (excluding the Public Officials Remuneration Regulations, the Regulations on Allowances, etc. for Public Officials, and other statutes relating to remunerating public officials), and the examination committee on budgetary incentives established under Article 5 recognizes that it is inappropriate to pay budgetary incentives under this Decree, the budgetary incentives shall not be paid for the same ground. <Amended by Presidential Decree No. 27681, Dec. 27, 2016; Presidential Decree No. 27764, Jan. 6, 2017> |
| (3) | This Decree shall apply to budgetary incentives, except as otherwise provided for in other statutes. |
[This Article Wholly Amended by Presidential Decree No. 23430, Dec. 30, 2011]
| Article 4 (Requirements for Expenditure Curtailment and Revenue Growth) |
| (1) | The achievement of savings accrued from curtailment of expenditures (hereinafter referred to as “expenditure curtailment”) that makes possible the payment of incentives under Article 49 (1) of the Act, means the achievement of either of the following cases through voluntary efforts: |
| 1. | Where the relevant agency keeps its expenses and has a budget surplus by personnel reduction, improvement in budget execution methods or systems, etc., while maintaining its work performance at or above the previous level; |
| 2. | Where the relevant agency fails to apportion or include its expected savings beforehand in its budgeting process. |
| (2) | The achievement of savings accrued from revenue growth (hereinafter referred to as “revenue growth”) that makes possible the payment of incentives under Article 49 (1) of the Act means the achievement of either of the following cases through dedicated efforts, such as creating new sources of revenue or improving relevant systems: |
| 1. | Where there is an increase in the national revenues (referring to all sources of revenue, such as national taxes, customs duties, and non-tax receipts, excluding income from the issuance of government bonds and borrowings); |
[This Article Wholly Amended by Presidential Decree No. 23430, Dec. 30, 2011]
CHAPTER II EXAMINATION COMMITTEE ON BUDGETARY INCENTIVES, ETC.
| Article 5 (Establishment) |
The examination committee on budgetary incentives (hereinafter referred to as the “Committee”) shall be established under the Minister of Strategy and Finance to review payment of budgetary incentives, etc.
[This Article Wholly Amended by Presidential Decree No. 23430, Dec. 30, 2011]
The Committee shall deliberate on the following:
| 1. | Matters on criteria and scopes to decide whether budgetary incentives are given; |
| 2. | Matters on targets for which whether budgetary incentives are given; |
| 3. | Estimating the amounts of expenditure curtailment and revenue growth; |
| 4. | Estimating the amount of budgetary incentives to be given; |
| 5. | Budgetary measures followed by the payment of budgetary incentives due to expenditure curtailment; |
| 6. | Other matters recognized by the Minister of Strategy and Finance as necessary to undergo deliberation and submitted to the Committee for deliberation. |
[This Article Wholly Amended by Presidential Decree No. 23430, Dec. 30, 2011]
| (1) | The Committee shall be comprised of not more than 12 members, including one Chairperson and one Vice-Chairperson. |
| (2) | The Vice Minister of Strategy and Finance nominated by the Minister of Strategy and Finance shall serve as the Chairperson; a public official in a position designated by the Minister of Strategy and Finance shall serve as the Vice-Chairperson; and the following persons shall serve as members: <Amended by Presidential Decree No. 24441, Mar. 23, 2013; Presidential Decree No. 25751, Nov. 19, 2014; Presidential Decree No. 27681, Dec. 27, 2016; Presidential Decree No. 28211, Jul. 26, 2017> |
| 1. | Three public officials in a position designated by the Minister of Strategy and Finance, and one public official in a position designated by the Minister of Public Administration and Security; |
| 2. | Persons commissioned by the Minister of Strategy and Finance from among those who have substantial expertise in the fields of national revenues and budget execution. |
| (3) | If deemed necessary, the Chairperson may allow the relevant public officials and experts to attend the meetings of the Committee and state opinions. <Newly Inserted by Presidential Decree No. 27681, Dec. 27, 2016> |
| (4) | Each member specified in paragraph (2) 2 shall serve a term of two years. |
[This Article Wholly Amended by Presidential Decree No. 23430, Dec. 30, 2011]
| Article 7-2 (Removal of Members) |
If a member specified in Article 7 (2) 2 falls under any of the following cases, the Minister of Strategy and Finance may remove such member: | 1. | Where he/she is unable to perform his/her duties due to a physical or mental disability; |
| 2. | Where he/she commits any unlawful act relating to his/her duties; |
| 3. | Where he/she is deemed unsuitable for membership due to negligence, demeaning behavior, or other grounds; |
| 4. | Where he/she declares him/herself that he/she cannot perform his/her duties. |
[This Article Newly Inserted by Presidential Decree 26844, Dec. 31, 2015]
| (1) | The Chairperson shall convene and preside over meetings of the Committee. |
| (2) | When the Chairperson is unable to perform his/her duties due to extenuating grounds, the Vice-Chairperson shall act for the Chairperson; and when both the Chairperson and the Vice-Chairperson are unable to perform their duties due to extenuating grounds, such member as pre-designated by the Chairperson shall act for the Chairperson. |
[This Article Wholly Amended by Presidential Decree No. 23430, Dec. 30, 2011]
A majority of the members of the Committee shall constitute a quorum, and any decision thereof shall require a concurring vote of at least a majority of those present.
[This Article Wholly Amended by Presidential Decree No. 23430, Dec. 30, 2011]
| (1) | The Committee shall have one Secretary. |
| (2) | The Secretary shall be appointed by the Chairperson from among public officials of the Ministry of Strategy and Finance. |
| (3) | The Secretary shall, by order form the Chairperson, assist the Committee on administrative affairs and the examination of budgetary incentives. |
[This Article Wholly Amended by Presidential Decree No. 23430, Dec. 30, 2011]
All members who attend the meetings of the Committee shall be entitled to the reimbursement of allowances and travel expenses within budgetary limits: Provided, That this shall not apply where members who are public officials attend the meetings of the Committee in direct relation to their duties as public officials.
[This Article Wholly Amended by Presidential Decree No. 23430, Dec. 30, 2011]
| Article 12 (Detailed Operating Rules) |
Matters necessary for operating the Committee, other than those provided for in this Decree, shall be determined by the Chairperson.
[This Article Wholly Amended by Presidential Decree No. 23430, Dec. 30, 2011]
| Article 13 (Self-Examination Committee) |
The head of each central government agency shall establish and operate a self-examination committee (hereinafter referred to as "self-committee") as determined by the Minister of Strategy and Finance, to deliberate on matters concerning formulating and implementing the plans for expenditure curtailment and revenue growth of the relevant agency, selecting the recipients of budgetary incentives, etc.
[This Article Wholly Amended by Presidential Decree No. 23430, Dec. 30, 2011]
CHAPTER III APPLICATION FOR EXAMINATION OF BUDGETARY INCENTIVES
| Article 14 (Application for Examination) |
| (1) | The head of a central government agency who intends to pay budgetary incentives shall calculate the amount of expenditure curtailment or revenue growth and request an examination of budgetary incentives to the Minister of Strategy and Finance from January 1 to January 31 or from July 1 to July 31 every year, after undergoing examination by its self-committee: Provided, That the budgetary incentive examination shall not be requested after three fiscal years have elapsed since the fiscal year in which the expenditure curtailment or revenue growth occurred, except for the specific cases determined by the Minister of Strategy and Finance. <Amended by Presidential Decree No. 28510, Dec. 29, 2017> |
| (2) | Deleted. <by Presidential Decree No. 28510, Dec. 29, 2017> |
| (3) | The head of a central government agency shall prepare the following materials and plans before undergoing examination by its self-committee under paragraph (1): <Amended by Presidential Decree No. 28510, Dec. 29, 2017> |
| 1. | Materials evidencing the relevant expenditure curtailment or revenue growth, such as improved financial statements; |
| 2. | Materials on those who contributed to relevant expenditure curtailment or revenue growth, such as main contributors or subcontributors; |
| 3. | Plans for executing budgetary incentives. |
| (4) | The head of a central government agency shall submit the materials and plans specified in the subparagraphs of paragraph (3), when he/she requests a budgetary incentive examination to the Minister of Strategy and Finance in accordance with paragraph (1). <Amended by Presidential Decree No. 28510, Dec. 29, 2017> |
[This Article Wholly Amended by Presidential Decree No. 27681, Dec. 27, 2016]
| Article 15 (Scope of Contributors to Expenditure Curtailment or Revenue Growth) |
| (1) | A person who has contributed to expenditure curtailment or revenue growth referred to in Article 49 (1) of the Act means any of the following person, who has directly contributed to the achievement of expenditure curtailment or revenue growth: <Amended by Presidential Decree No. 26980, Feb. 12, 2016; Presidential Decree No. 27764, Jan. 6, 2017> |
| 1. | A public official belonging to a central government agency in which the expenditure curtailment or revenue growth occurred, or a public official belonging to any other central government agency; |
| 4. | A person who has reported on budget waste or proposed the prevention of budget waste to the head of a central government agency; |
| 5. | If members of an organization collectively try to achieve the expenditure curtailment or revenue growth, the minimum unit of the organization. |
| (2) | A public official belonging to any central government agency, other than officials of the relevant central government agency in which expenditure curtailment or revenue growth occurred, shall obtain consent from the head of the relevant central government agency in which the expenditure curtailment or revenue growth occurred, in order to be recognized as a person who has contributed to the relevant expenditure curtailment or revenue growth. |
[This Article Wholly Amended by Presidential Decree No. 23430, Dec. 30, 2011]
| Article 15-2 (Receipt and Processing of Proposals, etc., related to Expenditure Curtailment, etc.) |
Where the Minister of Strategy and Finance receives a proposal, suggestion, or opinion related to expenditure curtailment or revenue growth from a citizen or receives a report on budget waste, etc., he/she may transfer such proposal, etc., for processing to the head of the relevant central government agency. <Amended by Presidential Decree No. 20720, Feb. 29, 2008>
[This Article Wholly Amended by Presidential Decree No. 19208, Dec. 28, 2005]
CHAPTER IV EXAMINATION AND PAYMENT OF BUDGETARY INCENTIVES
| Article 16 (Scopes of Budgetary Incentive Scheme) |
| (1) | A budgetary incentive for expenditure curtailment shall be given to a person who has contributed to such expenditure curtailment within the following limits, which shall not exceed 60 million won per person: <Amended by Presidential Decree No. 27681, Dec. 27, 2016> |
| 1. | In cases of saving personnel expenses from personnel reduction, the amount of annual personnel expenses for the reduced workforce; |
| 2. | In cases of saving ordinary expenses, 50 percent of the saved expenses; |
| 3. | In cases of major business expenses, ten percent of the saved expenses. |
| (2) | A budgetary incentive for revenue growth shall be given to a person who has contributed to such revenue growth in the range of ten percent of the amount of such growth, which shall not exceed 60 million won per person. <Amended by Presidential Decree No. 27681, Dec. 27, 2016> |
| (3) | Notwithstanding paragraphs (1) and (2), a budgetary incentive may be given in the range of 130/100 of the amount calculated under paragraphs (1) and (2), where the Committee acknowledges any of the following cases. In such cases, the maximum amount payable per person shall be 78 million won: <Amended by Presidential Decree No. 27681, Dec. 27, 2016> |
| 1. | Where the effects of expenditure curtailment or revenue growth are significantly shown as such effects are extended to similar businesses or other administrative agencies, etc.; |
| 2. | Where the effects of expenditure curtailment or revenue growth are embodied in an administrative collaboration task as defined in Article 41 of the Regulations on Promotion of Administrative Efficiency and Cooperation; |
| 4. | Where the contents of expenditure curtailment or revenue growth are embodied through a citizen suggestion under Article 15 (1) 3 or a report or proposal under Article 15 (1) 4. |
| (4) | Where a budgetary incentive is given under Article 3 (2) after a bonus, etc. has been given under other statutes than this Decree, the amount calculated under paragraphs (1) through (3) shall be given after subtracting the amount of the relevant bonus, etc. <Newly Inserted by Presidential Decree No. 27681, Dec. 27, 2016> |
[This Article Wholly Amended by Presidential Decree No. 23430, Dec. 30, 2011]
| Article 17 (Examination of Budgetary Incentives) |
In cases of conducting an examination of budgetary incentives referred to the Committee by the Minister of Strategy and Finance upon request from the head of a central government agency, the Committee shall determine the scope of the budgetary incentive scheme for each expense and the scope of the budgetary incentive scheme payable to persons who have contributed to expenditure curtailment or revenue growth, considering their contribution to the expenditure curtailment or revenue growth and improvement in the relevant system.
[This Article Wholly Amended by Presidential Decree No. 23430, Dec. 30, 2011]
| Article 18 (Payment of Budgetary Incentives) |
| (1) | The head of a central government agency shall, in accordance with the results of an examination conducted under Article 17, pay budgetary incentives within budgetary limits by the end of the fiscal year in which the expenditure curtailment or revenue growth occurred or the next fiscal year, before the date set by the Minister of Strategy and Finance. <Amended by Presidential Decree No. 27681, Dec. 27, 2016; Presidential Decree No. 28510, Dec. 29, 2017> |
| (2) | The head of a central government agency may give budgetary incentives within budgetary limits in the next fiscal year, where such agency has a lack of funds to give such budgetary incentives under paragraph (1). |
[This Article Wholly Amended by Presidential Decree No. 23430, Dec. 30, 2011]
| Article 19 (Payment of Budgetary Incentives for Retired and Deceased Persons) |
Where the payment of a budgetary incentive is allowed, the person who contributed to the expenditure curtailment or revenue growth shall be given the budgetary incentive, even if he/she retires or is deceased. In such cases, upon death of the entitled person, the budgetary incentive shall be paid to his/her heir.
[This Article Wholly Amended by Presidential Decree No. 23430, Dec. 30, 2011]
| Article 20 (Follow-Up Budgetary Measures, etc.) |
| (1) | Where budgetary incentives are given out of savings from reducing personnel expenses, ordinary expenses and major business expenses, the Minister of Strategy and Finance may, at his/her discretion, allocate budget to the priority projects of the relevant central government agency within total budgetary limits of the relevant agency, instead of reducing the amount of savings from budget for the relevant project, when allocating budget for the fiscal year proceeding the fiscal year in which the expenditure curtailment occurs, and when framing budget for the following years after the next fiscal year. |
| (2) | The head of a central government agency who has paid the amount of personnel expense savings from personnel reduction as budgetary incentives shall not make a request to create an organization or increase the number of personnel that similarly performs tasks as the reduced organization or personnel. |
| (3) | The head of a central government agency who has paid the amount of savings from ordinary expenses and major business expenses as budgetary incentives shall not make a budget request to do business similar to the budget-saved business. |
[This Article Wholly Amended by Presidential Decree No. 23430, Dec. 30, 2011]
ADDENDUM
This Decree shall enter into force on the date of its promulgation.
ADDENDA <Presidential Decree No. 17104, Jan. 4, 2001>
Article 1 (Enforcement Date)
This Decree shall enter into force on the date of its promulgation, but shall apply from January 1, 2001.
Articles 2 through 4 Omitted.
ADDENDUM <Presidential Decree No. 17195, Apr. 9, 2001>
This Decree shall enter into force on the date of its promulgation.
ADDENDUM <Presidential Decree No. 19208, Dec. 28, 2005>
This Decree shall enter into force on the date of its promulgation.
ADDENDA <Presidential Decree No. 19527, Jun. 15, 2006>
Article 1 (Enforcement Date)
This Decree shall enter into force on July 1, 2006.
Articles 2 and 3 Omitted.
ADDENDA <Presidential Decree No. 19806, Dec. 29, 2006>
Article 1 (Enforcement Date)
This Decree shall enter into force on January 1, 2007.
Articles 2 through 6 Omitted.
ADDENDA <Presidential Decree No. 20720, Feb. 29, 2008>
Article 1 (Enforcement Date)
This Decree shall enter into force on the date of its promulgation: Provided, That among the Presidential Decrees amended pursuant to Article 8 of the Addenda, the amendments to the Presidential Decrees, which were promulgated before this Decree enters into force but whose enforcement dates have not yet arrived, shall enter into force on the enforcement dates of the respective Presidential Decrees.
Articles 2 through 8 Omitted.
ADDENDA <Presidential Decree No. 21641, Jul. 27, 2009>
Article 1 (Enforcement Date)
This Decree shall enter into force on July 31, 2009. (Proviso Omitted.)
Articles 2 through 15 Omitted.
ADDENDUM <Presidential Decree No. 23430, Dec. 30, 2011>
This Decree shall enter into force on the date of its promulgation.
ADDENDA <Presidential Decree No. 24441, Mar. 23, 2013>
Article 1 (Enforcement Date)
This Decree shall enter into force on the date of its promulgation.
Articles 2 through 5 Omitted.
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 among the Presidential Decrees amended pursuant to Article 5 of the Addenda, the amendments to the Presidential Decrees, which were promulgated before this Decree enters into force but whose enforcement dates have not yet arrived, shall enter into force on the enforcement dates of the respective Presidential Decrees.
Articles 2 through 5 Omitted.
ADDENDUM <Presidential Decree No. 26844, Dec. 31, 2015>
This Decree shall enter into force on the date of its promulgation.
ADDENDA <Presidential Decree No. 26980, Feb. 12, 2016>
Article 1 (Enforcement Date)
This Decree shall enter into force on the date of its promulgation.
Articles 2 through 5 Omitted.
ADDENDUM <Presidential Decree No. 27681, Dec. 27, 2016>
This Decree shall enter into force on the date of its promulgation.
ADDENDA <Presidential Decree No. 27763, Jan. 6, 2017>
Article 1 (Enforcement Date)
This Decree shall enter into force on the date of its promulgation.
Articles 2 through 6 Omitted.
ADDENDA <Presidential Decree No. 27764, Jan. 6, 2017>
Article 1 (Enforcement Date)
This Decree shall enter into force on the date of its promulgation.
Articles 2 through 10 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 among the Presidential Decree amended pursuant to Article 8 of the Addenda, the amendments to the Presidential Decrees, which were promulgated before this Decree enters into force but whose enforcement dates have not yet arrived, shall enter into force on the enforcement dates of the respective Presidential Decrees.
Articles 2 through 8 Omitted.
ADDENDA <Presidential Decree No. 28510, Dec. 29, 2017>
Article 1 (Enforcement Date)
This Decree shall enter into force on the date of its promulgation.
Article 2 (Applicability to Application for Examination)
The amended provisions of Article 14 (1) shall also apply where the relevant expenditure curtailment or revenue growth occurred before this Decree enters into force.