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ACT ON THE EMPLOYMENT IMPROVEMENT OF CONSTRUCTION WORKERS

Act No. 5249, Dec. 31, 1996

Amended by Act No. 6848, Dec. 30, 2002

Act No. 8372, Apr. 11, 2007

Act No. 8373, Apr. 11, 2007

Act No. 8429, May 11, 2007

Act No. 8560, Jul. 27, 2007

Act No. 8694, Dec. 14, 2007

Act No. 8811, Dec. 27, 2007

Act No. 9254, Dec. 26, 2008

Act No. 10339, jun. 4, 2010

Act No. 10965, Jul. 25, 2011

Act No. 11690, Mar. 23, 2013

Act No. 13895, Jan. 27, 2016

Act No. 16620, Nov. 26, 2019

CHAPTER I GENERAL PROVISIONS
 Article 1 (Purpose)
The purpose of this Act is to promote improvement in employment and enhancement in the welfare of construction workers and to contribute to the development of the construction industry by supporting and promoting the stability of employment of construction workers and the development and elevation of their vocational abilities, and by doing welfare work, such as the payment of mutual aid money for retirement to construction workers.
[This Article Wholly Amended on Dec. 27, 2007]
 Article 2 (Definitions)
The terms used in this Act are defined as follows:
1. The term "business owner" means a person who employs workers and carries on construction business prescribed by Presidential Decree (hereinafter referred to as "construction business"), and who has obtained a license or permission or has registered pursuant to the related Acts and subordinate statutes;
2. The term "construction worker" means a worker referred to in Article 2 of the Labor Standards Act, who engages in construction business;
3. The term "original contractor" means a business owner who has contracted with a project owner for construction work;
4. The term "subcontractor" means a business owner who has contracted with the original contractor for construction work, and a business owner who has contracted with the said subcontractor for construction work;
5. The term "retirement mutual aid scheme" means that a business owner shall pay the mutual aid installments to the Mutual Aid Association for Construction Workers by making the construction workers the beneficiaries, and where the said beneficiaries retire from the construction business, the said Association shall pay mutual aid money for retirement.
[This Article Wholly Amended on Dec. 27, 2007]
 Article 3 (Formulation and Execution of Master Plans for Improvement in Employment of Construction Workers)
(1) The Minister of Employment and Labor shall formulate and execute a master plan for improvement in the employment of construction workers (hereinafter referred to as "master plan") every five years, in order to promote the stability of employment of construction workers, to promote the development and elevation of vocational abilities, and to support the enhancement of their welfare. <Amended on Jun. 4, 2010; Jan. 27, 2016>
(2) A master plan shall include the following matters: <Amended on Jan. 27, 2016; Nov. 26, 2019>
1. Matters concerning evaluation of the immediately preceding master plan;
2. Matters concerning trends in employment of construction workers;
3. Matters concerning the improvement in employment structure of construction workers;
4. Matters concerning the development and elevation of vocational abilities of construction workers, such as training of technical human resources in construction;
5. Matters concerning the promotion of welfare of construction workers;
6. Matters concerning the observance of the Labor Standards Act by construction business, such as wages, holidays, vacations and working hours;
7. Matters concerning the stability of employment of construction workers in the winter season;
8. Matters concerning the systematic management of supply and demand of human resources in the construction business.
(3) Where the Minister of Employment and Labor intends to formulate a master plan, he or she shall consult with the head of the relevant central administrative agency, and thereafter go through deliberation by the Employment Policy Deliberative Council under the Framework Act on Employment Policy. The same shall also apply when he or she intends to change important matters of the master plan, as prescribed by Presidential Decree. <Amended on Jun. 4, 2010>
(4) When the Minister of Employment and Labor formulates a master plan pursuant to paragraph (1), he or she shall report to the relevant standing committee of the National Assembly without delay. <Newly Inserted on Jan. 27, 2016>
(5) The Minister of Employment and Labor may, if deemed necessary, request the head of the relevant central administrative agency to submit the data necessary for the formulation and alteration of a master plan. <Amended on Jun. 4, 2010; Jan. 27, 2016>
[This Article Wholly Amended on Dec. 27, 2007]
 Article 4 (Recommendations)
If the Minister of Employment and Labor deems it necessary for the smooth execution of a master plan, he or she may recommend matters necessary for the following concerning construction workers for business owners, the organization of business owners, etc.: <Amended on Jun. 4, 2010>
1. Improvement in employment management;
2. Stabilization of employment;
3. Development and elevation of vocational abilities;
4. Promotion of welfare.
[This Article Wholly Amended on Dec. 27, 2007]
CHAPTER II BETTERMENT OF EMPLOYMENT OF CONSTRUCTION WORKERS
 Article 5 (Persons Responsible for Employment Management)
(1) In order to deal with the affairs of the relevant place for business pertaining to the following matters, a business owner shall designate a person responsible for employment management by place for business and file a report thereon with the Minister of Employment and Labor: Provided, That the same shall not apply to places for business which do not exceed a size prescribed by Presidential Decree: <Amended on Jun. 4, 2010; Jul. 25, 2011>
1. Matters concerning the recruitment, employment and disposition of construction workers;
2. Matters concerning the education and training provided for the improvement in technical skills of construction workers;
3. Matters concerning the installation and use of convenient facilities for construction workers;
4. Matters concerning dealing with the affairs of employment insurance, such as a report on acquisition or loss of qualifications for the insured;
5. Matters concerning the retirement mutual aid scheme, such as the subscription to the retirement mutual aid scheme and payment of mutual aid installments;
6. Other matters concerning employment management of construction workers, which are prescribed by Ordinance of the Ministry of Employment and Labor.
(2) When a business owner has designated a person responsible for employment management, he or she shall notify construction workers of the fact of such designation by posting a notice of the name of a person responsible for employment management and other matters prescribed by Ordinance of the Ministry of Employment and Labor at the relevant place for business. <Amended on Jun. 4, 2010>
(3) Detailed matters necessary for the designation of a person responsible for employment management and other necessary matters shall be prescribed by Presidential Decree. <Amended on Jul. 25, 2011>
(4) Every business owner shall endeavor to elevate the ability to perform the duties of a person responsible for employment management, such as providing education and training to him or her.
(5) A person designated by an original contractor as being responsible for employment management shall provide the necessary guidance over or assistance in handling of the affairs referred to in paragraph (1) 3 through 5 by a person designated by the subcontractor of the same place for business as being responsible for employment management. <Amended on Jul. 25, 2011>
[This Article Wholly Amended on Dec. 27, 2007]
 Article 6 (Issuance of Documents on Employment)
When a business owner has employed a construction worker, he or she shall issue documents in which the following matters are included, to the relevant construction worker, as prescribed by Ordinance of the Ministry of Employment and Labor: <Amended on Jun. 4, 2010>
1. Name of a business owner (in cases of a juristic person, referring to its representative);
2. Title and seat of a place for business (where a business owner is a juristic person, including the title and seat of the juristic person);
3. Working hours, wages and employment period;
4. Details of works;
5. Other matters determined by Ordinance of the Ministry of Employment and Labor.
[This Article Wholly Amended on Dec. 27, 2007]
 Article 7 (Improvement in Employment of Construction Workers)
(1) The Minister of Employment and Labor (including the Minister of Land, Infrastructure and Transport in the case of business referred to in subparagraph 1-3) may conduct the following business for the improvement of employment management, stabilization of employment and development and enhancement, etc. of vocational abilities of construction workers: <Amended on Jun. 4, 2010; Jul. 25, 2011; Nov. 26, 2019>
1. Vocational training and educational training which are conducted for training and improvement in technical skills of technical human resources in construction;
1-2. Surveys on the demand for the training under subparagraph 1 and the development and dissemination of training courses;
1-3. Surveys and management of the supply and demand for human resources in the construction business;
2. Installation and operation of employment supporting facilities for construction workers;
3. Implementation of programs for improving the employment of construction workers;
4. Education and training for persons responsible for employment management;
5. Other business necessary for stabilizing employment, promoting employment and improving welfare of construction workers.
(2) The Minister of Employment and Labor may entrust a part of the business to a corporation or organization deemed to have the human resources and facilities for conducting the business referred to in the subparagraphs of paragraph (1), which is prescribed by Presidential Decree, and the corporation or organization entrusted as such may re-entrust the business with approval from the Minister of Employment and Labor. <Newly Inserted on Jul. 25, 2011>
(3) In order to implement the business falling under the subparagraphs of paragraph (1), a corporation or organization entrusted or re-entrusted under paragraph (2) shall fulfill the requirements prescribed in the Act on the Development of Workplace Skills of Workers, the Employment Security Act and other Acts and subordinate statutes related to the implementation of the business. <Newly Inserted on Jul. 25, 2011>
(4) The Minister of Employment and Labor may subsidize all or part of the expenses required by persons entrusted with the business under paragraph (2). <Newly Inserted on Jul. 25, 2011>
(5) The Minister of Employment and Labor may subsidize part of mutual aid installments to be paid by a business owner who has subscribed to the retirement mutual aid scheme, as prescribed by the Employment Insurance Act. <Amended on Jun. 4, 2010; Jul. 25, 2011>
(6) In implementing the business referred to in the subparagraphs of paragraph (1), the Minister of Employment and Labor shall give preferential consideration to daily employed construction workers. <Newly Inserted on Jul. 25, 2011>
[This Article Wholly Amended on Dec. 27, 2007]
[Title Amended on Jul. 25, 2011]
 Article 7-2 (Building Convenient Facilities Related to Employment)
Business owners shall build facilities, such as lavatories, mess halls, and dressing rooms, or take measures for construction workers to use such facilities on the relevant construction field in which construction works of at least the scale prescribed by Presidential Decree are performed. In such cases, the standards for building or taking measures to use such facilities and other necessary matters shall be prescribed by Ordinance of the Ministry of Employment and Labor. <Amended on Jun. 4, 2010>
[This Article Wholly Amended on Dec. 27, 2007]
 Article 7-3 (Separate Payment of Wage Costs and Ascertainment)
(1) A person who awards a construction work contract of a size equivalent to or larger than that prescribed by Presidential Decree (including a project owner; hereinafter referred to as "contractee") shall pay the costs for the wages payable to a construction worker (hereinafter referred to as "wage cost") by a contractor (hereinafter referred to as "contractor"), separately from other construction expenses. In such cases, the wage costs shall be paid every month.
(2) Where a contractee pays the contractor for wage costs payable to construction workers pursuant to paragraph (1), the contractee shall ascertain the details of the wages paid to the construction workers in the preceding month (excluding cases in which construction works were commenced in the month where the first payment of wage costs was made).
(3) Where the details of wage payment under paragraph (2) indicate that a contractor fails to pay wages to his or her construction workers, the contractee shall notify the Minister of Employment and Labor of such fact.
(4) Matters necessary for the separate payment of wage costs and methods and procedures to ascertain the details of wage payment under paragraphs (1) through (3) shall be prescribed by Ordinance of the Ministry of Employment and Labor.
[This Article Newly Inserted on Nov. 26, 2019]
 Article 7-4 (Classification Based on Skill Levels of Construction Workers)
(1) The Minister of Land, Infrastructure and Transport may, in consultation with the Minister of Employment and Labor, calculate the levels of the skills possessed by construction workers, in accordance with standards determined by Presidential Decree, such as careers, qualifications, education and training, for the classification and management of construction workers.
(2) Where necessary for the classification and management of construction workers based on their skill levels, the Minister of Land, Infrastructure and Transport may request related institutions, corporations, organizations, etc. to submit data necessary for the verification of their careers, qualifications, education and training, etc. In such cases, the requested institutions, corporations, organizations, etc. shall comply with such request unless there is a compelling reason not to do so.
(3) The Minister of Land, Infrastructure and Transport may entrust the classification and management of construction workers based on their skill levels (including the issuance of a certificate to ascertain the skill level of a construction worker under Article 7-5) to a corporation prescribed by Presidential Decree, which has human resources and facilities to professionally classify and manage construction workers based on their skill levels.
(4) Except as provided in paragraphs (1) through (3), matters necessary for the classification and management of construction workers based on their skill levels shall be prescribed by Presidential Decree.
[This Article Newly Inserted on Nov. 26, 2019]
 Article 7-5 (Issuance of Skill Level Certificates)
(1) Upon receipt of an application filed by a construction worker, business owner or project owner, the Minister of Land, Infrastructure and Transport may issue a certificate to ascertain the skill level of a construction worker (hereinafter referred to as "skill level certificate") to the applicant as prescribed by Ordinance of the Ministry of Land, Infrastructure and Transport: Provided, That a business owner or project owner may apply for the issuance of a skill level certificate, only in circumstances prescribed by Ordinance of the Ministry of Land, Infrastructure and Transport.
(3) A person who intends to be issued with a skill level certificate under paragraph (1) shall pay fees, as prescribed by Ordinance of the Ministry of Land, Infrastructure and Transport.
[This Article Newly Inserted on Nov. 26, 2019]
CHAPTER III MUTUAL-AID BUSINESS
 Article 8 (Execution of Mutual Aid Business)
Any person who meets the standards prescribed by Presidential Decree, from among the mutual aid association and the organization of business owners related to construction business prescribed by Presidential Decree, shall jointly conduct mutual aid business for construction workers, such as business on the retirement mutual aid scheme for the stabilization of employment and promotion of welfare for construction workers.
[This Article Wholly Amended on Dec. 27, 2007]
 Article 9 (Establishment of Mutual Aid Association for Construction Workers)
(1) Any person who executes the mutual aid program for construction workers under Article 8 shall incorporate the Mutual Aid Association for Construction Workers (hereinafter referred to as the "Mutual Aid Association") with authorization from the Minister of Employment and Labor. <Amended on Jun. 4, 2010>
(2) The Mutual Aid Association shall be a juristic person.
(3) The provisions for incorporated foundations in the Civil Act shall apply mutatis mutandis to the establishment, operation, supervision, etc. of the Mutual Aid Association.
(4) Matters to be entered in the articles of association shall be prescribed by Presidential Decree, and the modification of the articles of association shall require approval from the Minister of Employment and Labor following a resolution at the board of directors. <Newly Inserted on Jul. 25, 2011>
(5) The chairperson of the Mutual Aid Association shall be elected by the board of directors. <Newly Inserted on Jul. 25, 2011>
[This Article Wholly Amended on Dec. 27, 2007]
 Article 9-2 (Business of Mutual Aid Association)
(1) The Mutual Aid Association shall conduct the following business: <Amended on Jul. 25, 2011>
1. Management and maintenance of records of business owners and beneficiaries who have subscribed to the retirement mutual aid scheme;
2. Receipt of mutual aid installments and payment of retirement mutual aid money;
3. Payment of rewards for reports pursuant to Article 16-2;
4. Loans to the beneficiaries;
5. Business for multiplication of accumulated mutual aid installments;
6. Welfare promotion business, such as the establishment and operation of welfare facilities for construction workers;
6-2. Business for stability of employment of construction workers and the development and elevation of their vocational abilities, and support for finding jobs;
7. Business entrusted by the Government, other than business referred to in subparagraphs 1 through 6 and 6-2;
8. Business attached to business falling under subparagraphs 1 through 7.
(2) The Mutual Aid Association may conduct profit-making business within the extent necessary for conducting the business referred to in paragraph (1). <Newly Inserted on Jul. 25, 2011>
(3) Expenses incurred in businesses referred to in the subparagraphs of paragraph (1) shall be financed by the following financial resources: Provided, That mutual aid money for retirement, out of mutual aid installments under subparagraph 1, shall be used only for the purpose of paying beneficiaries such money: <Newly Inserted on Nov. 26, 2019>
1. Mutual aid installments pursuant to Article 13 (2);
2. Contributions and subsidies provided by persons other than the Government;
3. Proceeds of profit-making businesses under paragraph (2);
4. Proceeds earned from operating the proceeds of the sale of retirement mutual aid certificates which are not yet recovered, among retirement mutual aid certificates for construction workers issued before January 1, 2006;
5. Other proceeds.
(4) The Mutual Aid Association may directly conduct the business referred to in paragraph (1) 6-2 or request, if necessary, related institutions to do so. In such cases, in order to implement the business, the Mutual Aid Association or requested institutions shall meet the requirements prescribed in the Act on the Development of Vocational Skills of Workers and the Employment Security Act and other Acts and subordinate statutes in relation to the implementation of such business. <Newly Inserted on Jul. 25, 2011; Nov. 26, 2019>
[This Article Wholly Amended on Dec. 27, 2007]
 Article 9-3 (Issuance of Certificates of Career)
(1) Where a construction worker makes a request to issue a certificate of career, the MultiAid Association may confirm his or her working experience and issue a certificate of career.
(2) For the issuance of a certificate of career under paragraph (1), the MultiAid Association may request related institutions prescribed by Presidential Decree to check related data.
(3) Matters necessary for the procedures, etc. for issuance of a certificate of career under paragraph (1) shall be prescribed by Ordinance of the Ministry of Employment and Labor.
[This Article Newly Inserted on Jul. 25, 2011]
 Article 9-4 (Board of Directors)
(1) The board of directors shall be established under the Mutual Aid Association to deliberate and decide on the following matters:
1. Matters concerning business plans, budget and settlement of accounts;
2. Matters relating to revisions to the articles of association;
3. Matters on election and removal of officers;
4. Matters concerning the remuneration of executive officers and employees;
5. Matters concerning the enactment or amendment of organization, accounting, remuneration, and other important regulations;
6. Matters concerning the management target and performance-based bonus of the chairperson;
7. Matters concerning the public announcement of management information;
8. Other matters that the board of directors deems necessary.
(2) The chairperson shall report the following matters to the board of directors:
1. Detailed outcomes of management of mutual aid installments;
2. Outcomes of internal and outside audits;
3. Other matters on which the board of directors requests reports from the chairperson.
(3) The board of directors shall be comprised of not more than 20 persons from among the following directors: <Amended on Mar. 23, 2013>
1. The chairperson of the Mutual Aid Association;
2. Related public officials in senior civil service belonging to the Ministry of Employment and Labor and the Ministry of Land, Infrastructure and Transport;
3. The heads of mutual aid associations and business owners' organizations related to construction business, and specialists recommended by them;
4. Specialists recommended by the Minister of Employment and Labor and the Minister of Land, Infrastructure and Transport;
5. Specialists recommended by nation-wide labor organizations;
6. Other specialists prescribed by Presidential Decree.
(4) The chairperson of the board of directors shall be elected from among directors.
(5) Detailed matters necessary for the organization of the board of directors, qualifications for directors, and other matters concerning the operation of the board of directors shall be prescribed by Presidential Decree.
[This Article Newly Inserted on Jul. 25, 2011]
 Article 9-5 (Business Plans, Budget and Settlement of Accounts)
(1) The Mutual Aid Association shall prepare a business plan and a budget bill before the commencement date of each business year, and submit it to the Minister of Employment and Labor for his or her approval following a resolution at the board of directors.
(2) The Mutual Aid Association shall, within two months after the end of each fiscal year, prepare a written report on settlement of accounts audited by a certified public accountant and submit it to the Minister of Employment and Labor following a resolution at the board of directors, and shall finalize the settlement of accounts by obtaining his or her approval.
(3) All accounts of the Mutual Aid Association shall be processed in accordance with the enterprise accounting principles on the basis of facts of occurrence so that the management outcomes and the status of revenues and expenditures can be comprehended.
[This Article Newly Inserted on Jul. 25, 2011]
 Article 10 (Subscription to Retirement Mutual Aid Scheme)
(1) Any business owner performing construction work under Article 87 (1) of the Framework Act on the Construction Industry and construction work prescribed by Presidential Decree (where the business is conducted according to a contract by passing through several stages, referring to the original contractor), shall ipso facto be a subscriber to the retirement mutual aid scheme from the date of commencement of such construction work. In such cases, where an original contractor lets his or her subcontractor take over the payment of mutual aid installments by a written contract, and where the Mutual Aid Association grants approval upon a request from the original contractor, the said subcontractor shall be deemed the business owner. <Amended on Dec. 27, 2007>
(2) As a business owner, other than a business owner who has become a subscriber to the retirement mutual aid scheme pursuant to paragraph (1), a business owner who meets the requirements prescribed by Presidential Decree may subscribe to the retirement mutual aid scheme with approval from the Mutual Aid Association. In such cases, such subscription shall be valid from the date the Mutual Aid Association grants approval for such subscription. <Amended on Dec. 27, 2007>
(3) Deleted. <Jun. 27, 2007>
(4) Matters necessary for the methods and procedures for subscription to the retirement mutual aid scheme pursuant to paragraphs (1) and (2) shall be prescribed by Ordinance of the Ministry of Employment and Labor. <Amended on Dec. 27, 2007; Jun. 4, 2010>
(5) Relationship of the retirement mutual aid scheme shall expire on the next day of the closing day of construction business by a business owner or the next day of the date of completion of construction work performed by the business owner. <Amended on Dec. 27, 2007>
[This Article Wholly Amended on Dec. 30, 2002]
 Article 10-2 Deleted. <Nov. 27, 2007>
 Article 10-3 (Cost Accounting of Expenses Incurred)
(1) Parties to the contract for construction works, liable to subscribe to the retirement mutual aid scheme under Article 10 (1), shall disclose the amount required for subscribing to the retirement mutual aid scheme in a bill of quantities for construction works and calculation statement of contract price: Provided, That in cases of construction works directly executed by a project owner, the said required expenses shall be disclosed in a cost accounting document.
(2) Where a subcontractor has subscribed to the retirement mutual aid scheme pursuant to the latter part of Article 10 (1), the original contractor shall disclose the amount required for subscribing to the retirement mutual aid scheme in a calculation statement of costs for subcontracted construction works.
[This Article Wholly Amended on Dec. 27, 2007]
 Article 10-4 (Report on Relationship of Retirement Mutual Aid Scheme)
(1) A business owner who has become a subscriber to the retirement mutual aid scheme naturally pursuant to Article 10 (1) shall report the materialization of relationship of the retirement mutual aid scheme to the Mutual Aid Association within 14 days from the date of commencement of the construction work.
(2) The business owner referred to in paragraph (1) may report the whole of business he or she runs or as classified by place of business.
[This Article Wholly Amended on Dec. 27, 2007]
 Article 11 (Scope of Beneficiaries)
Except for any of the following persons, any construction workers engaged in projects or places for business subscribed to the retirement mutual aid scheme, shall become beneficiaries of the said retirement mutual aid scheme: <Amended on Jun. 4, 2010>
1. A person whose working hours fall short of the standards prescribed by Ordinance of the Ministry of Employment and Labor;
2. A person prescribed by Presidential Decree by taking account of types of employment, period of employment, occupational category, etc.
[This Article Wholly Amended on Dec. 27, 2007]
 Article 12 Deleted. <Jul. 25, 2011>
 Article 13 (Report on Number of Working Days of Beneficiaries and Payment of Mutual Aid Installments)
(1) A business owner who has subscribed to the retirement mutual aid scheme shall file a monthly report on the working days of the beneficiaries as prescribed by Ordinance of the Ministry of Employment and Labor, and pay mutual aid installments corresponding thereto to the Mutual Aid Association. <Amended on Nov. 26, 2019>
(2) Mutual aid installments shall be the additional money necessary for the mutual aid money for retirement payable to beneficiaries and for the business, operation, etc. of the Mutual Aid Association. <Newly Inserted on Jul. 25, 2011>
(3) A beneficiary may directly file a report on his or her working days with the Mutual Aid Association as prescribed by Ordinance of the Ministry of Employment and Labor, where his or her employer fails to report or falsely report the number of working days pursuant to paragraph (1). In such cases, the Mutual Aid Association, in receipt of such report, shall ascertain the facts and notify the person who has filed the report and the business owner of the results thereof. <Newly Inserted on Nov. 26, 2019>
(4) An employer with a workplace not smaller than a particular size prescribed by Presidential Decree, who has subscribed to the retirement mutual aid scheme, shall issue an electronic card to the beneficiaries to report the number of their working days, and the beneficiaries shall make use of it. <Newly Inserted on Nov. 26, 2019>
(5) Matters necessary for the amount of mutual aid installments and the payment thereof under paragraph (1), and the issuance, use, etc. of electronic cards under paragraph (4) shall be prescribed by Presidential Decree. <Amended on Jul. 25, 2011; Nov. 26, 2019>
[This Article Wholly Amended on Dec. 27, 2007]
[Title Amended on Nov. 26, 2019]
 Article 13-2 (Special Cases concerning Payment of Mutual Aid Installments)
(1) Notwithstanding Article 13 (1), a contractee who awards a construction work contract to a business owner who has subscribed to the retirement mutual aid scheme shall pay beneficiaries' mutual aid installments to the Mutual Aid Association on behalf of the business owner, in any of the following cases. In such cases, the Mutual Aid Association shall notify the relevant contractee of the occurrence of the obligation to pay mutual aid installments:
1. Where the contractee reaches a definite agreement with the business owner to pay mutual aid installments directly to the Mutual Aid Association in writing and notifies the Mutual Aid Association of such fact, as prescribed by Ordinance of the Ministry of Employment and Labor;
2. Where the business owner is unable to pay mutual aid installments for causes prescribed by Presidential Decree, such as bankruptcy. In such cases, the amount to be paid by a contractee to the Mutual Aid Association shall be limited to the amount that the contractee has not paid to the business owner, out of the amounts required for subscribing to the retirement mutual aid scheme, as stated in a bill of quantities for construction works and calculation statement of contract price under Article 10-3;
3. Where the contractee fails to pay the amount for subscribing to the retirement mutual aid scheme as stated in a bill of quantities for construction works and calculation statement of contract price under Article 10-3 without good cause, and the business owner notifies the Mutual Aid Association of such fact, as prescribed by Ordinance of the Ministry of Employment and Labor.
(2) Matters necessary for the payment of mutual aid installments by a contractee under paragraph (1) shall be prescribed by Presidential Decree.
[This Article Newly Inserted on Nov. 26, 2019]
 Article 14 (Payment of Mutual Aid Money for Retirement)
(1) Where any of the following causes arises, the Mutual Aid Association shall pay mutual-aid money for retirement to the beneficiary or his or her bereaved family members pursuant to the standards prescribed by Presidential Decree by taking into account the number of months to which the mutual aid money is paid: <Amended on Nov. 26, 2019>
1. Where a beneficiary, who has paid mutual aid installments for at least 12 months, retires from the construction business or reaches the age of 60;
2. Where a beneficiary who has paid mutual aid installments for less than 12 months reaches the age of 65;
3. Where a beneficiary dies.
(2) The scope of bereaved family members entitled to receive mutual aid money for retirement under paragraph (1) shall be the persons in the following subparagraphs at the time of the death of an employee, and persons determined according to the following order of priority shall receive such money first: In such cases, where there are two or more bereaved family members in the same order of priority, equally divided payments shall be made to such members: <Amended on Nov. 26, 2019>
1. A spouse (including a person who is in a de facto marital relationship);
2. Children;
3. Parents;
4. Grandchildren;
5. Grandparents;
6. Siblings.
(3) Articles 63 (2), and 65 (2) and (4) of the Industrial Accident Compensation Insurance Act shall apply mutatis mutandis to the scope and priority of the bereaved family members who are entitled to receive mutual aid money for retirement, except as provided in paragraph (2). <Newly Inserted by Nov. 26, 2019>
(4) The number of months of payment of mutual aid installments under paragraph (1) shall be calculated on the basis of working days during which he or she is employed by a business owner who has subscribed to the retirement mutual aid scheme: Provided, That where the beneficiary has been employed and has worked for a business owner who has subscribed to two or more retirement mutual aid schemes, the number of months of payment shall be calculated on the basis of the total number of the respective working days. <Amended on Nov. 26, 2019>
(5) Matters necessary for the method of calculating the number of months of payment and the methods, procedures, etc. for paying mutual aid money for retirement under paragraphs (1) through (4) shall be prescribed by Ordinance of the Ministry of Employment and Labor. <Amended on Jun. 4, 2010; Nov. 26, 2019>
[This Article Wholly Amended on Dec. 27, 2007]
 Article 15 (Certification of Retirement)
(1) Any person who intends to receive mutual aid money for retirement shall submit to the Mutual Aid Association documents certifying the fact of retirement and other documents prescribed by Ordinance of the Ministry of Employment and Labor. <Amended on Jun. 4, 2010>
(2) When a beneficiary requests a necessary certification in order to receive mutual aid money for retirement, a business owner shall comply with such request.
[This Article Wholly Amended on Dec. 27, 2007]
 Article 16 (Requests for Return)
(1) The Mutual Aid Association may request any person who has received mutual aid money for retirement by false or other illegal means, to return the amount equivalent to double the mutual aid money for retirement which he or she has received: Provided, That where he or she makes a voluntary report on the fact of receipt of the mutual aid money for retirement by false or other illegal means, he or she shall return the mutual aid money for retirement paid to him or her.
(2) Where a person has received mutual aid money for retirement under paragraph (1) by false report or false certification by a business owner, such business owner shall also take responsibility jointly with a person who has received the relevant mutual aid money for retirement.
(3) When a person has not returned mutual aid money for retirement, notwithstanding a request for its return under paragraph (1), the Mutual Aid Association shall urge such obligor to make a payment within a fixed period, and when any person who has been urged to pay fails to make a payment within the time limit, it may collect it in the same manner as delinquent national taxes are collected, with approval from the Minister of Employment and Labor. <Amended on Jun. 4, 2010>
[This Article Wholly Amended on Dec. 27, 2007]
 Article 16-2 (Provision of Monetary Rewards for Reporting)
The Mutual Aid Association may pay a reward to any person who reports any of the following persons, as prescribed by Ordinance of the Ministry of Employment and Labor: <Amended on Jun. 4, 2010>
1. A person who has received mutual aid money for retirement by false or other illegal means;
2. A person who has had another person receive mutual aid money by false report or false certification.
[This Article Wholly Amended on Dec. 27, 2007]
 Article 17 Deleted. <Dec. 30, 2002>
 Article 18 (Withdrawal from Retirement Mutual Aid Scheme)
A business owner subscribed to the retirement mutual aid scheme under Article 10 (2) may withdraw from the retirement mutual aid scheme where he or she falls under any of the following: <Amended on Jun. 4, 2010>
1. Where he or she has obtained the consent of at least 3/4 of the beneficiaries;
2. Where he or she falls under the grounds prescribed by Ordinance of the Ministry of Employment and Labor, as cases where he or she has difficulty in paying mutual aid installments continuously.
[This Article Wholly Amended on Dec. 27, 2007]
 Article 19 (Notice to Workers)
(1) A business owner who has subscribed to the retirement mutual aid scheme shall post a notice of the details of retirement mutual aid scheme at places where the construction workers can readily see it, as prescribed by Ordinance of the Ministry of Employment and Labor. <Amended on Jun. 4, 2010>
(2) A business owner withdrawn from the retirement mutual aid scheme under Article 18 shall promptly notify construction workers of such fact that they have become disentitled as beneficiaries, by means of posting a notice, etc. of such fact of withdrawal at the places where construction workers can readily see it.
(3) The Mutual Aid Association shall notify the beneficiaries of the fact of subscription for the retirement mutual aid scheme, the accumulated amount of mutual aid for each person, etc., as prescribed by Ordinance of the Ministry of Employment and Labor. <Newly Inserted on Jul. 25, 2011>
[This Article Wholly Amended on Dec. 27, 2007]
[Title Amended on Jul. 25, 2011]
 Article 19-2 (Notice of Mutual Aid Money for Retirement at Time of Death of Beneficiary)
Where a beneficiary dies, the Mutual Aid Association shall notify the bereaved family members of the procedures and methods for applying for the payment of mutual aid money for retirement, etc., as prescribed by Ordinance of the Ministry of Employment and Labor.
[This Article Newly Inserted on Nov. 26, 2019]
 Article 20 (Protection of Entitlement to Insurance Benefits)
(1) Entitlement to receive mutual aid money for retirement shall not be transferred, seized or offered in security: Provided, That where a person borrows money from the Mutual Aid Association, he or she may offer such entitlement in security. <Amended on Jul. 25, 2011>
(2) Receipt of mutual aid money for retirement may be entrusted, as prescribed by Presidential Decree.
(3) A beneficiary who is a minor may individually claim mutual aid money for retirement.
[This Article Wholly Amended on Dec. 27, 2007]
 Article 21 (Prescription)
(1) Entitlement to receive mutual aid money for retirement and rights to collect return money shall be extinguished by prescription unless they are exercised within five years. <Amended on Nov. 26, 2019>
(2) Except as otherwise provided in this Act, the Civil Act shall govern the extinctive prescription referred to in paragraph (1).
[This Article Wholly Amended on Dec. 27, 2007]
Chapter IV Supplementary Provisions
 Article 22 (Preferential Treatment)
The Government may grant preferential treatment to business owners subscribed to the retirement mutual aid scheme in the assessment of construction abilities and in the execution of construction policies, as prescribed by the Acts and subordinate statutes related to construction.
[This Article Wholly Amended on Dec. 27, 2007]
 Article 22-2 (Accumulation of Reserves)
The Mutual Aid Association shall appropriate a reserve fund at every period of settlement of accounts in order to appropriate it to the retirement mutual aid money to be paid in the future, and treat it as separate accounting.
[This Article Wholly Amended on Dec. 27, 2007]
 Article 23 (Guidance and Supervision)
(1) Where the Minister of Employment and Labor deems it necessary, he or she may, as prescribed by Presidential Decree, request a project owner, a business owners and the Mutual Aid Association to file a report and to submit the data, which are required for the enforcement of this Act, or give other necessary instructions. <Amended on Jun. 4, 2010; Jul. 25, 2011; Nov. 26, 2019>
(2) The Mutual Aid Association may request a business owner who employs or employed beneficiaries, and the beneficiaries to file a report or to submit the related documents required for the mutual aid business.
(3) Where the operation of the Mutual Aid Association falls under any of the following cases, the Minister of Employment and Labor may issue an order to improve the management and services or to take other necessary measures by fixing a period: <Newly Inserted on Jul. 25, 2011>
1. Where the accounting or execution of business affairs violates any Act or subordinate statute, articles of association or other regulations of the Mutual Aid Association;
2. Where the operation of the Mutual Aid Association is obviously unreasonable;
3. Where it suspends all or part of mutual aid business without good cause.
[This Article Wholly Amended on Dec. 27, 2007]
 Article 23-4 (Request for Cooperation to Relevant Institutions)
(1) For the payment of mutual aid money for retirement under Article 14, notice under Articles 19 (3) and 19-2 and performance of other duties pursuant to this Act, the Mutual Aid Association may request the following persons for any of the following data or the use of a relevant computer network (hereinafter referred to as "provision of data, etc."). In such cases, the requested persons shall comply with such request unless there is good cause:
1. The Minister of the Interior and Safety for electronic information data of resident registration and resident registration data of beneficiaries and their bereaved family members pursuant to the Resident Registration Act;
2. The Minister of the National Court Administration and the head of a local government for computerized information data on registration of family relations, certificates of family relations and identification certificates of beneficiaries and their bereaved family members pursuant to the Act on Registration of Family Relations;
3. The Minister of Justice for the records of immigration control and data related to alien registration of beneficiaries under the Immigration Act.
(2) Any request for the provision of data, etc. under paragraph (1) shall be made in writing, stating the following matters:
1. Personal information of a beneficiary and his or her bereaved family members;
2. Purpose of use;
3. List of the requested data.
(3) No person who is or has been working with data referred to in paragraph (1) shall use the data provided under paragraph (1) or information acquired in the course of his or her duty for any purpose other than as prescribed in this Act or provide or divulge it to another person or institution.
(4) Any data to be provided to the Mutual Aid Association under paragraph (1) shall be exempted from any fees, usage fees, etc.
[This Article Newly Inserted on Nov. 26, 2019]
CHAPTER V PENALTY PROVISIONS
 Article 24 (Penalty Provisions)
(1) Any person who has used, furnished or divulged data or information in violation of Article 23-2 (3) shall be punished by imprisonment with labor for not more than five years or by a fine not exceeding 50 million won. <Amended on Nov. 26, 2019>
(2) Any person who has received mutual aid money for retirement by fraud or other improper means and any person who has submitted a false report or certification to have another person receive mutual aid money for retirement shall be punished by imprisonment with labor for not more than one year or by a fine not exceeding 10 million won. <Newly Inserted on Nov. 26, 2019>
[This Article Wholly Amended on Dec. 27, 2007]
 Article 25 (Joint Penalty Provisions)
If the representative of a juristic person or organization or an agent, employee, or other servant of a juristic person, organization, or individual commits any violation described in Article 24 in conducting the business affairs of the juristic person, organization, or individual, not only shall the violator be punished but the juristic person, organization, or individual shall also be punished by a fine prescribed in the relevant provisions: Provided, That where the juristic person, organization, or individual has not been negligent in giving considerable due care and supervision in connectin with the business in order to prevent such violation, this shall not apply.
[This Article Wholly Amended on Dec. 26, 2008]
 Article 26 (Administrative Fines)
(1) Any of the following persons shall be subject to an administrative fine not exceeding five million won: <Amended on Nov. 26, 2019>
1. A business owner responsible for building facilities, such as a lavatory, mess hall and dressing room, or for taking measures for construction workers to use such facilities pursuant to Article 7-2, but who fails to build such facilities or to take measures for construction workers to use such facilities;
2. A person who fails to file a report on the materialization of relationship of the retirement mutual aid scheme under Article 10-4 (1).
(2) Any of the following persons shall be subject to an administrative fine not exceeding three million won: <Amended on Nov. 26, 2019>
1. A person who fails to pay monthly wage costs separately from other construction expenses, in violation of Article 7-3 (1);
2. A person who fails to ascertain the details of wages, in violation of Article 7-3 (2);
3. A person who fails to notify non-payment of wages, in violation of Article 7-3 (3);
4. A person who fails to disclose, the amount required for subscribing to the retirement mutual aid scheme, in a bill of quantities for construction works and calculation statement of contract price, or cost accounting document, in violation of Article 10-3 (1);
5. A person who fails to disclose the amount required for subscribing to the retirement mutual aid scheme in a calculation statement of costs for subcontracted construction works, in violation of Article 10-3 (2);
6. A person who fails to file a monthly report on a beneficiary's working days, in violation of Article 13 (1);
7. Any person who fails to pay mutual aid installments, in violation of Article 13 (1) (excluding where a contractee has to directly pay mutual aid installments under Article 13-2);
8. A person who fails to issue an electronic card to a beneficiary, in violation of Article 13 (4);
9. A person who fails to pay mutual aid installments after being notified of the occurrence of his or her obligation to pay mutual aid installments from the Mutual Aid Association, in violation of Article 13-2.
(3) Any of the following persons shall be subject to an administrative fine not exceeding one million won: <Amended on Jul. 25, 2011>
1. Any person who has failed to file a report related to a person responsible for employment management under Article 5 (1);
2. Deleted; <Jul. 25, 2011>
3. Deleted; <Jul. 25, 2011>
4. Deleted; <Nov. 26, 2019>
5. Any person who has failed to comply with a request for certification under Article 15 (2);
6. Any person who has failed to file a report under Article 23 (1) or has filed a false report, who has failed to submit the data or has submitted the false data, who has failed to comply with corrective orders and other necessary measures referred to in Article 23 (3).
(4) Administrative fines referred to in paragraphs (1) through (3) shall be imposed and collected by the Minister of Employment and Labor, as prescribed by Presidential Decree. <Amended on Jun. 4, 2010>
(5) Deleted. <Jul. 25, 2011>
(6) Deleted. <Jul. 25, 2011>
(7) Deleted. <Jul. 25, 2011>
[This Article Wholly Amended on Dec. 27, 2007]
ADDENDA <Act No. 5249, Dec. 31, 1996>
(1) (Enforcement Date) This Act shall enter into force on January 1, 1998.
(2) (Preparation for Establishment of Mutual-Aid Association) The Minister of Labor and the Minister of Construction and Transportation may, prior to the entry into force of this Act, deal with the affairs necessary for the establishment of the Mutual-Aid Association, such as an approval for the establishment of the Mutual-Aid Association under Article 9, and supports to the affairs of establishment the Mutual-Aid Association, etc.
ADDENDA <Act No. 6848, Dec. 30, 2002>
Article 1 (Enforcement Date)
This Act shall enter into force on July 1, 2003: Provided, That Articles 5 (3) and 26 (2) 1 shall enter into force on January 1, 2004.
Article 2 (Applicability to Subscription to Retirement Mutual-Aid)
The amendment to Article 10 (1) shall apply to the first business owner of construction works commencing the relevant works after this Act enters into force.
Article 3 (Transitional Measures for Retirement Mutual-Aid for Construction Workers)
The Retirement Mutual-Aid Association for Construction Workers established under the previous provisions at the time this Act enters into force, shall be deemed the Mutual-Aid Association for Construction Workers established under this Act.
Article 4 (Transitional Measures for Retirement Mutual-Aid Contracts)
That a retirement mutual-aid contract has been concluded under the previous provisions at the time this Act enters into force, shall be deemed that subscribed to the retirement mutual-aid under the amendment to Article 10 (1).
Article 5 (Transitional Measures for Statutory Retirement Allowances)
Provisions of the previous Article 17 shall govern statutory retirement allowances to construction workers engaged for one year or more in construction works executed by a business owner who has concluded a retirement mutual-aid contract under the previous Article 10 at the time this Act enters into force, not later than the date of retiring from the relevant construction works or the completion date of the relevant construction works.
Article 6 (Transitional Measures for Fines for Negligence)
The previous provisions shall govern in any application of fines for negligence to the acts committed before this Act enters into force.
ADDENDA <Act No. 8372, Apr. 11, 2007>
Article 1 (Enforcement Date)
This Act shall enter into force on the date of its promulgation. (Proviso Omitted.)
Articles 2 through 17 Omitted.
ADDENDA <Act No. 8373, Apr. 11, 2007>
Article 1 (Enforcement Date)
This Act shall enter into force on the date of its promulgation.
Articles 2 through 7 Omitted.
ADDENDA <Act No. 8429, May 11, 2007>
Article 1 (Enforcement Date)
This Act shall enter into force on the date of its promulgation.
Articles 2 through 7 Omitted.
ADDENDA <Act No. 8560, Jul. 27, 2007>
(1) (Enforcement Date) This Act shall enter into force six months after the date of its promulgation.
(2) (Applicability to Request for Return of Mutual-aid Money for Retirement) The amended provisions of Article 16 (1) shall apply beginning with the first person who is requested to return mutual-aid money for retirement after this Act enters into force.
(3) (Transitional Measures concerning Fines for Negligence) In the application of fines for negligence to an act done before this Act enters into force, the previous provisions shall apply.
ADDENDA <Act No. 8694, Dec. 14, 2007>
Article 1 (Enforcement Date)
This Act shall enter into force on July 1, 2008. (Proviso Omitted.)
Articles 2 through 26 Omitted.
ADDENDUM <Act No. 8811, Dec. 27, 2007>
This Act shall enter into force on the date of its promulgation: Provided, That the amended provisions of Article 3 (2) 5 and 6, Article 7-2, subparagraphs 3, 7 and 8 of Article 9-2, Articles 10 (1), (2), (4) and (5), 10-4, 16 (1), 16-2 and 26 shall enter into force on January 28, 2008.
ADDENDUM <Act No. 9254, Dec. 26, 2008>
This Act shall enter into force on the date of its promulgation.
ADDENDA <Act No. 10339, Jun. 4, 2010>
Article 1 (Enforcement Date)
This Act shall enter into force one month after the date of its promulgation. (Proviso Omitted.)
Articles 2 through 5 Omitted.
ADDENDA <Act No. 10965, Jul. 25, 2011>
Article 1 (Enforcement Date)
This Act shall enter into force three months after the date of its promulgation.
Article 2 (Applicability to Reports on Designation of Persons Responsible for Employment Management)
The amended provisions of Article 5 (1) shall apply to business owners who designate persons responsible for employment management after this Act enters into force.
Article 3 (Transitional Measures concerning Administrative Fines)
Administrative fines against an act committed before this Act enters into force shall be governed by the former provisions.
ADDENDA <Act No. 11690, Mar. 23, 2013>
Article 1 (Enforcement Date)
(1) This Act shall enter into force on the date of its promulgation.
(2) Omitted.
Articles 2 through 7 Omitted.
ADDENDUM <Act No. 13895, Jan. 27, 2016>
This Act shall enter into force six months after the date of its promulgation.
ADDENDA <Act No. 16620, Nov. 26, 2019>
Article 1 (Enforcement Date)
This Act shall enter into force six months after the date of its promulgation: Provided, that the amended provisions of Articles 13 (4) and (5), and 26 (2) 8 shall enter into force one year after the date of its promulgation, and the amended provisions of Articles 7-4 and 7-5 shall enter into force one year and six months after the date of its promulgation.
Article 2 (Applicability to Formulation of Mater Plan)
The amended provisions of Article 3 (2) 8 shall begin to apply to the formulation of the first master plan after this Act enters into force.
Article 3 (Applicability to Separate Payment of Wages and Ascertainment Thereof)
The amended provisions of Article 7-3 shall begin to apply to the first construction works for which a project owner publicly announces matters concerning a tender (referring to the time of conclusion of a contract where no public announcement is made for the tender) after this Act enters into force.
Article 4 (Applicability to Special Cases Regarding Payment of Mutual Aid Installments)
The amended provisions of Article 13-2 shall begin to apply to the first mutual aid installments paid due to construction works for which a project owner publicly announces matters concerning a tender (referring to the time of conclusion of a contract where no public announcement is made for the tender) after this Act enters into force.
Article 5 (Applicability to Payment of Mutual Aid Money for Retirement)
(1) The amended provisions of Article 14 (1) 2 and 3 shall also apply where a beneficiary who has paid mutual aid installments for retirement for less than 12 months reaches the age of 65 or dies before this Act enters into force.
(2) The prescription under the amended provisions of Article 21 (1) concerning the right held by a person entitled to receive mutual aid money for retirement under paragraph (1) shall commence on the date this Act enters into force.
Article 6 (Applicability to Extinctive Prescription of Entitlement to Mutual Aid Money for Retirement)
The right to receive mutual aid money for retirement under the amended provisions of Article 21 (1) shall also apply where five years have not passed from the date on which the right to receive mutual aid money for retirement arises as at the time this Act enters into force.
Article 7 (Transitional Measures concerning Scope of Bereaved Family Members Eligible for Mutual Aid Money for Retirement)
Notwithstanding the amended provisions of Article 14 (2), the previous provisions shall govern, in cases of the occurrence of the right to claim mutual aid money for retirement pursuant to the previous provisions before this Act enters into force.