CHAPTER I GENERAL PROVISIONS
The purpose of this Act is to contribute to increasing the financial resources of local governments and enhancing the financial soundness thereof by specifying procedures for disposition for arrears of local administrative penalty charges and by prescribing matters necessary for collecting and managing local administrative penalty charges. <Amended on May 29, 2016; Mar. 24, 2020>
The terms used in this Act are defined as follows: <Amended on Nov. 19, 2014; May 29, 2016; Jul. 26, 2017; Mar. 24, 2020>
| 1. | The term “local administrative penalty charges” means any of the following, which is money other than taxes as revenue of local governments; imposed and collected (including where such money is imposed and collected under delegation or entrustment from the head of a State agency) by the head of a local government and the head of an administrative agency under its jurisdiction to achieve their administrative objectives: |
| (a) | Penalty surcharges, charges for compelling execution, other kinds of charges, and indemnities, collectable pursuant to this Act under other Acts; |
| (b) | Other money other than taxes, collectable pursuant to this Act under other Acts; |
| 1-2. | The term “local non-tax revenue” means local administrative penalty charges, and other monetary revenue determined by Ordinance of the Ministry of the Interior and Safety, such as fees and property rental revenue, which is monetary non-tax revenue of a local government imposed and collected pursuant to other Acts or municipal ordinances of such local government; |
| 2. | The term “Act concerning local administrative penalty charges” means any Act prescribing the basis for imposing and collecting local administrative penalty charges, excluding this Act; |
| 3. | The term “collecting official” means the head of a local government or a public official delegated by the head of a local government with duties concerning imposing, collecting, etc. local administrative penalty charges; |
| 4. | The term “payer” means a person obliged to pay any local administrative penalty charges pursuant to any Act concerning local administrative penalty charges; |
| 5. | The term “payer in arrears” means a person who fails to pay any local administrative penalty charges within the payment deadline; |
| 6. | The term “surcharge” means an amount collected by being added to any local administrative penalty charges pursuant to any Act concerning local administrative penalty charges when a payer fails to pay such local administrative penalty charges within the payment deadline; and an amount collected additionally to the former amount when such person fails to pay by a fixed deadline after the original payment deadline has elapsed; |
| 7. | The term “expenses for disposition for arrears” means expenses (including the fees where entrusting the sale of any property) incurred in attaching, keeping in custody, transporting and selling any property pursuant to provisions of this Act concerning dispositions in arrears; |
| 8. | The term “local administrative penalty charges to be collected” means local administrative penalty charges, surcharges and expenses for disposition in arrears; |
| 9. | The term “imposition” means an action by the head of a local government to have a payer bear local administrative penalty charges pursuant to any Act concerning local administrative penalty charges; |
| 10. | The term “collection” means an action by the head of a local government to collect local administrative penalty charges to be collected from persons obliged to pay pursuant to this Act and Acts concerning local administrative penalty charges; |
| 11. | The term “amount in arrears” means local administrative penalty charges to be collected in arrears; |
| 12. | The term “information and communications network for local non-tax revenue” means the information and communications network defined in subparagraph 10 of Article 2 of the Electronic Government Act, publicly announced by the Minister of the Interior and Safety to handle affairs of imposing, collecting and managing local non-tax revenue of local governments; |
| 13. | The term “electronic payment” means the payment of local non-tax revenue by using either the information and communications network for local non-tax revenue; or any electronic media, such as the Internet, a telephonic device and an automatic teller machine, via any method of interlinking the information and communications network for local non-tax revenue with an information and communications network of a collection agency for local non-tax revenue under Article 22 (1) 1; |
| 14. | The term “electronic services delivery” means providing services through the information and communications network for local non-tax revenue pursuant to this Act or any Act concerning local administrative penalty charges. |
| Article 3 (Scope of Application) |
This Act shall apply to local administrative penalty charges to be collected pursuant to this Act where a payer fails to pay such local administrative penalty charges by the payment deadline under any Act concerning local administrative penalty charges. <Amended on Mar. 24, 2020>
CHAPTER II COLLECTION OF LOCAL ADMINISTRATIVE PENALTY CHARGES
| Article 4 (Priority Order in Collecting Local Administrative Penalty Charges to be Collected) |
Local administrative penalty charges to be collected shall be collected in the following order:
| 1. | Expenses for a disposition for arrears; |
| 2. | Local administrative penalty charges; |
[Title Amended on Mar. 24, 2020]
| Article 5 (Request for and Use of Tax Information) |
| (1) | If necessary to collect local administrative penalty charges in arrears, the Minister of the Interior and Safety or the head of a local government may request or use tax information referred to in Article 86 (1) of the Framework Act on Local Taxes (hereinafter referred to as "tax information"). <Newly Inserted on Dec. 26, 2017; Mar. 24, 2020> |
| (2) | If necessary to collect local administrative penalty charges in arrears, the Minister of the Interior and Safety or the head of a local government may use taxation data (referring to taxation data under Article 128 of the Framework Act on Local Taxes; hereinafter the same shall apply) provided by agencies submitting taxation data referred to in each subparagraph of Article 127 of the Framework Act on Local Taxes (hereinafter referred to as “agency submitting taxation data”) pursuant to Article 129 or 130 of the same Act; or any data other than taxation data. <Amended on Nov. 19, 2014; Dec. 27, 2016; Jul. 26, 2017; Dec. 26, 2017; Mar. 24, 2020> |
| (3) | Where any data other exists than that under paragraph (2), which is necessary for collecting any local administrative penalty charges in arrears, the Minister of the Interior and Safety or the head of a local government may request the head of an agency submitting taxation data who holds such data to assist in collecting the data. In such cases, the head of the agency submitting taxation data in receipt of such request shall give assistance except in extenuating circumstances. <Amended on Nov. 19, 2014; Jul. 26, 2017; Dec. 26, 2017; Mar. 24, 2020> |
| (4) | No person who uses or is provided with any tax information, taxation data, data other than taxation data pursuant to paragraphs (1) through (3), or data referred to in paragraph (3) shall provide or reveal it to third persons or use it for other than their original purposes: Provided, That the Minister of the Interior and Safety may provide it to the extent consistent with the purpose of their use to handle affairs referred to in Article 20 (2). <Amended on Nov. 19, 2014; Jul. 26, 2017; Dec. 26, 2017> |
[Title Amended on Dec. 26, 2017]
| Article 6 (Provision of Data concerning Payment in Arrears and Disposition on Deficits) |
| (1) | If necessary for collecting local administrative penalty charges in arrears; and a credit information collection agency defined in subparagraph 6 of Article 2 of the Credit Information Use and Protection Act or any other person prescribed by Presidential Decree request data concerning the personal information and amount in arrears or written-off amount of any of the following payers in arrears or persons subject to disposition on deficits (hereinafter referred to as “data concerning payment in arrears or a disposition on deficits”), the head of a local government may provide such data: Provided, That the same shall not apply to cases prescribed by Presidential Decree; and where regarding any local administrative penalty charges in arrears, any application for objection, request for adjudication, or administrative litigation concerning any local administrative penalty charges in arrears under an Act concerning local administrative penalty charges is pending: <Amended on Dec. 26, 2017; Feb. 4, 2020; Mar. 24, 2020> |
| 1. | A payer in arrears whose total arrears that are one year overdue from the payment deadline (including written-off local administrative penalty charges with respect to which the extinctive prescription of a right to collect is not yet completed; hereafter in this Article, the same shall apply) are at least five million won; |
| 2. | A payer in arrears who has failed to pay within the payment deadline on at least three occasions in one year and whose total arrears are at least five million won; |
| 3. | Deleted. <Dec. 26, 2017> |
| (2) | The Minister of the Interior and Safety or the head of a local government may provide data concerning the personal information and amount in arrears of any of the following foreign payers in arrears to the Minister of Justice so that such data may be used in granting a sojourn-related permit prescribed by Presidential Decree, such as a permit for the extension of a period of sojourn of a foreign payer in arrears: <Newly Inserted on Jan. 5, 2021> |
| 1. | A payer in arrears whose total arrears that are one year overdue from the payment deadline are not less than one million won and are not less than the amount prescribed by Presidential Decree; |
| 2. | A payer in arrears who has failed to pay local administrative penalty charges within the payment deadline on not less than three occasions and whose total arrears are not less than 50 thousand won and are not less than the amount prescribed by Presidential Decree. |
| (3) | No person provided with data concerning payment in arrears or disposition on deficits pursuant to paragraphs (1) and (2) shall use or reveal it for other than his or her duties. <Amended on Jan. 5, 2021> |
| (4) | Matters necessary for the procedure for providing data concerning payment in arrears or disposition on deficits under paragraph (1) and (2) shall be prescribed by Presidential Decree. <Amended on Jan. 5, 2021> |
[Enforcement Date: Feb. 3, 2022] Article 6 (2)
| Article 7 (Suspension of Payment of Purchase Price) |
Out of the purchase price to be paid to a payer in arrears of at least one million won of local administrative penalty charges, the head of a local government may suspend the payment of an amount equivalent to the amount in arrears of local administrative penalty charges until such amount in arrears is fully paid.
[This Article Wholly Amended on Mar. 24, 2020]
[This Article shall remain effective until February 2, 2022 pursuant to Article 2 of the Addenda (Act No. 17091, Mar. 24, 2020)]
| Article 7-2 (Restrictions on Government-Permitted Business) |
| (1) | Where a payer who fails to pay any local administrative penalty charges without justifiable grounds prescribed by Presidential Decree files an application for permission, authorization, license or registration, or a report or renewal thereof prescribed by Presidential Decree (hereinafter referred to as "permission, etc.") regarding any business of the same kind as that subject to the imposition of such local administrative penalty charges, the head of a local government may not grant permission, etc.: Provided, That where any separate competent authority exists regarding such business, the head of a local government may require the competent authority not to grant permission, etc. <Amended on Mar. 24, 2020> |
| (2) | If a payer who runs any business with permission, etc. fails to pay any local administrative penalty charges imposed (excluding penalty surcharges) on at least three occasions, for whom one year has elapsed from the third payment deadline, and whose amount in arrears is at least 300 thousand won, the head of a local government may suspend such business or cancel such permission, etc.: Provided, That where any separate competent authority exists regarding such business, the head of a local government may require the competent authority to suspend such business or cancel such permission, etc. <Amended on Mar. 24, 2020; Jan. 5, 2021> |
| (3) | Even where suspending the business of a payer pursuant to paragraph (2), its suspension period shall not exceed the maximum suspension period of the relevant business referred to in an Act concerning local administrative penalty charges; and permission, etc. may be cancelled only where a payer evades the payment unjustly. <Amended on Mar. 24, 2020> |
| (4) | Where, regarding suspending business or cancelling permission, etc. due to payment in arrears of local administrative penalty charges, any Act concerning local administrative penalty charges expressly provides differently paragraphs (2) and (3), such provision shall prevail. <Amended on Mar. 24, 2020> |
| (5) | When the head of a local government collects the relevant local administrative penalty charges after taking a disposition or requesting under paragraph (1) or (2), he or she shall promptly withdraw such disposition or request. <Amended on Mar. 24, 2020> |
| (6) | Upon receipt of a request from the head of a local government under the proviso to paragraph (1) or (2), the competent authority shall comply with such request except in extenuating circumstances. |
[This Article Newly Inserted on May 29, 2016]
| Article 7-3 (Disclosure of List of Payers in Arrears) |
| (1) | Notwithstanding Article 5 (4), the head of a local government may disclose the personal information and amounts in arrears (hereinafter referred to as "information on payment in arrears") of payers in arrears whose amount in arrears of local administrative penalty charges exceeding one year from the date its arrears occurred (including written-off local administrative penalty charges with respect to which the extinctive prescription of a right to collect is not yet completed; hereafter the same shall apply in this Article) is at least 10 million won, following a deliberation of the local tax deliberation committee under Article 147 of the Framework Act on Local Taxes (hereinafter referred to as "local tax deliberation committee"): Provided, That this shall not apply to cases prescribed by Presidential Decree; and where regarding any local administrative penalty charges in arrears, any application for objection or adjudication, or administrative litigation concerning any local administrative penalty charges in arrears under an Act concerning local administrative penalty charges is pending. <Amended on Dec. 27, 2016; Dec. 26, 2017; Mar. 24, 2020; Jan. 5, 2021> |
| (2) | A local government may, by municipal ordinance of the local government, otherwise prescribe the minimum amount between 10 million won and 30 million won, based upon which information on payment in arrears under paragraph (1) may be disclosed. |
| (3) | The head of a local government shall, via deliberation by the local tax deliberation committee, notify prospective persons subject to disclosure on a list of payers in arrears that they are likely to be subject to disclosure; provide them with an opportunity to explain; and shall finally select those persons subject to disclosure after six months from the date of notification, following re-deliberation by the local tax deliberation committee on whether to disclose the list of payers in arrears in consideration of whether the amount in arrears has been paid and other related matters. |
| (4) | The list under paragraph (1) shall be disclosed by publishing it in the news media prescribed in subparagraph 1 of Article 2 of the Act on Press Arbitration and Remedies for Damage Caused by Press Reports, via the information and communication network operated by the Ministry of the Interior and Safety or the head of a local government, on its website or bulletin board; or in the Official Gazette or an official report. <Amended on Jul. 26, 2017> |
| (5) | Information on payment in arrears disclosed pursuant to paragraph (1) shall include the names, trade names (including the names of corporations), ages, occupations, domiciles or places of business (including the road name under subparagraph 3 of Article 2 of the Road Name Address Act, and the building numbers under subparagraph 5 of the aforesaid Article), kinds of amounts in arrears; payment deadlines; summaries of payments in arrears, etc. of payers in arrears. <Amended on Dec. 8, 2020> |
| (6) | The Special Metropolitan City Mayor, a Metropolitan City Mayor, or a Do Governor may disclose, with respect to payers in arrears whose total arrears that are one year overdue from the payment deadline are not less than 10 million won, which have been failed to be paid to the competent Special Metropolitan City, Metropolitan City, or Do or a local government within its jurisdiction, the information on payment in arrears by applying paragraphs (1) through (5) mutatis mutandis thereto. <Newly Inserted on Jan. 5, 2021> |
| (7) | Matters necessary for disclosing, etc. lists under paragraphs (1) through (6) shall be prescribed by Presidential Decree. <Amended on Jan. 5, 2021> |
[This Article Newly Inserted on May 29, 2016]
| Article 7-4 (Entrustment of Collection) |
| (1) | Where the domicile or property of a person liable to pay local administrative penalty charges to be collected pursuant to this Act or an Act concerning local administrative penalty charges is in a district under the jurisdiction of any other local government, a collecting official may entrust another collecting official having jurisdiction over his or her/its domicile or the location of property with collecting such local administrative penalty charges. <Amended on Mar. 24, 2020> |
| (2) | Where entrusting the collection pursuant to paragraph (1), a local government to which an entrusted collecting official belongs shall bear expenses for entrusted administrative affairs, remittance expenses, and expenses for disposition in arrears; but shall remit the amount calculated by subtracting the following amounts from the local administrative penalty charges to be collected to the local government to which a collecting official who entrusts the collection belongs: <Amended on Mar. 24, 2020> |
| 1. | Amount calculated by multiplying the amount obtained by subtracting expenses for disposition for arrears from the local administrative penalty charges to be collected, by the rate prescribed by Presidential Decree; |
| 2. | Expenses for disposition for arrears. |
| (3) | Local governments may conclude an agreement on mutually entrusting the collection of the local non-tax revenue amount. In such cases, the agreement concerning the entrustment of the collection shall include matters concerning the details and scope of administrative affairs concerning entrustment of the collection, expenses incurred in managing and conducting entrusted administrative affairs, bearing expenses, etc. <Amended on Mar. 24, 2020> |
[This Article Newly Inserted on May 29, 2016]
| Article 7-5 (Exemption from Collection of Small Amount) |
Where the amount to be collected as local administrative penalty charges is less than 2,000 won per notice, the head of a local government shall not collect such local administrative penalty charges. <Amended on Mar. 24, 2020>
[This Article Newly Inserted on Jan. 29, 2020]
| Article 7-6 (Submission of Payment Certificate) |
Any person who intends to be paid the price by a local government shall submit a certificate verifying that he or she has paid local administrative penalty charges (including local administrative penalty charges imposed by the head of a local government other than the head of the relevant local government), as prescribed by Presidential Decree: Provided, That this shall not apply where the payment can be verified through administrative data matching under Article 36 (1) of the Electronic Government Act. [This Article Newly Inserted on Mar. 24, 2020]
[Enforcement Date: Feb. 3, 2022] Article 7-6
| Article 7-7 (Appropriation of Local Administrative Penalty Charge Refunds) |
| (1) | Where a person who has failed to pay local administrative penalty charges has an amount to be refunded among the amount paid as local administrative penalty charges, the head of a local government may fully or partially appropriate the amount to be refunded, interest thereon, etc. for the amount in arrears, following the order prescribed by Presidential Decree. |
| (2) | Where the head of a local government requests the return of an amount already appropriated or refunded due to the revocation of a decision to refund local administrative penalty charges, a notice, urging of payment, and disposition for arrears under this Act and Act concerning local administrative penalty charges shall apply mutatis mutandis thereto. |
[This Article Newly Inserted on Jan. 5, 2021]
CHAPTER III PROCEDURE FOR DISPOSITION FOR ARREARS
| Article 8 (Urging of Payment) |
| (1) | Where a payer fails to fully pay local administrative penalty charges by the payment deadline(s), the head of a local government shall send a notice urging payment within 50 days after the payment deadline. <Amended on Mar. 24, 2020> |
| (2) | Where sending a notice urging payment under paragraph (1), the payment deadline shall be within 20 days from the date of sending such notice. <Amended on Mar. 24, 2020> |
| (3) | Where procedures for urging payment are otherwise expressly provided for in any Act concerning local administrative penalty charges, such provisions shall prevail, notwithstanding paragraphs (1) and (2). <Amended on Mar. 24, 2020> |
| Article 9 (Requirements for Attachment) |
| (1) | Where a payer in arrears fails to fully pay local administrative penalty charges and a surcharge by the designated deadline after receiving a notice urging payment pursuant to Article 8 of this Act or an Act concerning local administrative penalty charges, the head of a local government shall attach property of the payer. <Amended on Mar. 24, 2020> |
| (2) | When the head of a local government attaches property under paragraph (1), he or she shall notify the payer in arrears. |
| Article 9-2 (Effect of Attachment) |
| (2) | The attachment under paragraph (1) shall be also effective with respect to the amount in arrears of local administrative penalty charges of which payment period has arrived before the ownership of the attached property is transferred, which are determined to impose pursuant to an Act concerning local administrative penalty charges. |
| (3) | Where claims for salaries, wages, pays, annual allowances, or retirement pensions, or other similar claims arising in continuing transactions are attached pursuant to Article 9, the attachment shall be also effective with respect to claims that may arise after attachment, for not more than the amount in arrears. |
[This Article Newly Inserted on Jan. 5, 2021]
| Article 10 (Presentation of Identification Card) |
Where a collecting official conducts inquiry, inspection or search, or attaches property to take a disposition for arrears, he or she shall carry proof of his or her identity and present it to relevant persons. <Amended on Jan. 5, 2021>
| Article 11 (Right to Inquire and Right to Inspect) |
Where a collecting official intends to investigate the location and quantity of the property to be attached when executing a disposition for arrears, he or she may inspect books, documents and other items; or may question any of the following persons: <Amended on Dec. 26, 2017; Mar. 24, 2020>
| 2. | The person transacting with the payer in arrears; |
| 3. | The occupant of the property of the payer in arrears; |
| 4. | The borrower from/debtor to the payer in arrears; |
| 5. | The corporation whose partner or stockholder is the payer in arrears; |
| 6. | The partner or stockholder of the corporate payer in arrears; |
| 7. | A person who is a relative prescribed by Presidential Decree and is deemed suspected of concealing any property of a person who fails to pay any local administrative penalty charges on at least three occasions or whose amount in arrears is at least 10 million won. |
| Article 11-2 (Authority to Conduct and Methods of Conducting Search) |
| (1) | Where necessary to attach property, a collecting official may search the payer in arrears’ dwelling, warehouse, office, ship, aircraft, motor vehicle, or any other place (hereinafter referred to as “dwelling or other place”) and may order the payer in arrears to open, or may directly open, any closed door, safe, or equipment in such dwelling or other place. |
| (2) | In either of the following cases, a collecting official may search a third party’s dwelling or other place and may order the third party to open, or may directly open, any closed door, safe, or equipment in such dwelling or other place: |
| 1. | Where the payer in arrears or the third party is suspected to hide the payer in arrears’ property in the third party’s dwelling or other place; |
| 2. | Where the third party who possesses the payer in arrears’ property refuses to deliver the property. |
| (3) | A collecting official may conduct a search under paragraph (1) or (2) from sunrise until sunset: Provided, That where he or she commences the search before sunset, he or she may continue the search after sunset. |
| (4) | Notwithstanding paragraph (3), a collecting official may commence a search of an establishment where business prescribed by Presidential Decree is mainly conducted at night, even after sunset while it is open for business. |
| (5) | Where no attachable property is found as a result of a search under paragraph (1) or (2), a collecting official shall prepare a search report and shall affix his or her signature or seal on the search report, jointly with the payer in arrears or the participants under Article 12. In such cases, if the payer in arrears or the participant refuses to affix his or her signature or seal, the fact of such refusal may be written down in the search report, instead of having the payer in arrears or the participant affix his or her signature or seal thereon. |
| (6) | Where a collecting official prepares a search report pursuant to paragraph (5), he or she shall deliver a certified copy of the search report to a payer in arrears whose property, etc. have been searched or participants. |
[This Article Newly Inserted on Jan. 5, 2021]
| Article 12 (Participants in Search and Inspection) |
| (1) | When a collecting official conducts an inspection or search pursuant to Article 11 or 11-2, he or she shall have a person subject to inspection or search, his or her family member or cohabitant, secretary, or other employee participate as a witness. <Amended on Jan. 5, 2021> |
| (2) | Where no participant referred to in paragraph (1) is present; or none of them complies with a request to participate, a collecting official shall have at least two adults or a public official or police officer of a Special Metropolitan City, a Metropolitan City, a Special Self-Governing City, a Do, a Special Self-Governing Province or a Si/Gun/autonomous Gu participate as a witness or witnesses. |
[Title Amended on Jan. 5, 2021]
| Article 13 (Attachment Protocol) |
| (1) | A collecting official shall prepare an attachment protocol when he or she attaches any property of a payer in arrears pursuant to Article 9. In such cases, the collecting official shall deliver a certified copy of the attachment protocol to the payer in arrears when the attached property is any of the following: |
| 1. | Movables or securities; |
| 3. | Rights to property, other than claims and ownership. |
| (2) | A collecting official shall have participants under Article 12 sign or affix their signatures and seals on the attachment protocol; and when any participant refuses to sign or affix his or her signature and seal on the attachment protocol, the collecting official shall also state such fact in the attachment protocol. |
| (3) | When a collecting official attaches movables or securities over which a pledge is created, he or she shall issue a certified copy of the attachment protocol to the pledgee of such movables or securities. |
| (4) | When a collecting official attaches a claim, he or she shall make a statement on the attachment protocol, to the effect that it is prohibited to recover or otherwise dispose of the claim. |
| Article 14 (Requirements for Release from Attachment) |
| (1) | The head of a local government shall immediately release property from attachment in any of the following cases: <Amended on May 20, 2014; Jan. 5, 2021> |
| 1. | Where the attachment becomes unnecessary because local administrative penalty charges are paid; local administrative penalty charges are appropriated; a public auction is suspended; the imposition is cancelled; or any other ground exists; |
| 2. | Where the head of a local government deems that a third person's claim on the ownership of the attached property is reasonably well-founded; |
| 3. | Where a third person proves that he or she/it has obtained a favorable judgment in a lawsuit on the ownership instituted against the payer in arrears; |
| (2) | The head of a local government may wholly or partly release any attached property from attachment in any of the following cases: <Amended on Jan. 5, 2021> |
| 1. | Where because the price of attached property changes or other causes exist after its attachment, its price significantly exceeds the total amount in arrears collectable; |
| 2. | Where the amount in arrears related to the attachment is partially paid or appropriated; |
| 3. | Where the imposition of the relevant local administrative penalty charges is partially cancelled; |
| 4. | Where other attachable property provided by the payer in arrears is attached; |
| 5. | Where the attached property is deemed de facto destroyed as prescribed by Presidential Decree. |
| Article 15 (Notification of Release from Attachment) |
| (1) | Where the head of a local government releases any property from attachment, he or she shall notify such fact to the holders of a right thereto, garnishees or third parties to whom attachment of such property has been notified. |
| (2) | Where the head of a local government releases any property from attachment pursuant to Article 14, he or she shall entrust the relevant agency with registering the release from attachment of such property, along with an attachment release protocol. |
| (3) | Where the head of a local government requires a third party to hold any attached property in custody, he or she shall, when releasing such attached property from attachment, notify such custodian of such release from attachment; and shall return such property to the relevant payer in arrears or a legitimate holder of a right thereto. In such cases, where the head of a local government has received a certificate of custody, he or she shall return the certificate to the custodian. |
| (4) | In cases falling under paragraph (3), the head of a local government may, if deemed necessary, require a person who keeps the property in custody to deliver it to a payer in arrears or a legitimate holder of a right thereto. In such cases, the head of a local government shall notify the payer in arrears or the legitimate holder of a right thereto to obtain such attached property from the custodian. |
| (5) | Where the head of a local government returns the property which is held in custody, he or she shall obtain a receipt thereon: Provided, That the head of a local government may, in lieu of the receipt, state the fact of receiving the property in the attachment protocol; and may have the payer in arrears or a legitimate holder of a right thereto sign or affix his or her signature and seal thereon. |
| Article 16 (Suspension of Disposition for Arrears) |
| (1) | Where the total estimated value of all property subject to disposition for arrears is not anticipated to be remain after having been appropriated for claims taking priority over expenses for the disposition for arrears and local administrative penalty charges, the head of a local government shall suspend the disposition for arrears. <Amended on Mar. 24, 2020> |
| (2) | In cases falling under the cause for suspending a disposition for arrears referred to in paragraph (1), a payer in arrears (including the owner of the property subject to disposition for arrears, where the payer in arrears and the owner of such property are not the same person) may request the head of a local government to suspend disposition for arrears. |
| Article 17 (Deferment of Disposition for Arrears) |
| (1) | Where it is deemed that, if the attachment of any property or the sale of the attached property is deferred, it is possible to collect the amount in arrears because the payer in arrears becomes able to operate his or her business normally, the head of the local government may defer the attachment of the property or the sale of the attached property following a disposition for arrears, as prescribed by Presidential Decree. |
| (2) | Where the head of a local government defers the attachment or sale pursuant to paragraph (1), if deemed necessary, he or she may release from any attached property from attachment. |
| (3) | Where the head of a local government defers attaching any property pursuant to paragraph (1) or releases the attached property from attachment pursuant to paragraph (2), he or she may demand collateral equivalent to such property to be provided. In such cases, Articles 65 through 70 of the Framework Act on Local Taxes shall apply mutatis mutandis to the kinds and evaluation of collateral, procedures for providing collateral, etc. <Amended on Dec. 27, 2016> |
| (4) | Matters necessary for procedures for filing an application for, and determining and notifying, deferment under paragraph (1) shall be prescribed by Presidential Decree. |
| (5) | Article 29 of the Local Tax Collection Act shall apply mutatis mutandis to both revoking the deferment of a disposition for arrears and collecting the amount in arrears in lump sum. <Amended on Dec. 27, 2016> |
| Article 18 (Revocation of Fraudulent Act) |
Where any payer in arrears conducts a legal act regarding any property right for the purpose of evading collection of local administrative penalty charges, the head of a local government may, in executing a disposition for arrears, request a court to revoke the fraudulent act and to reinstate such property right by applying mutatis mutandis Articles 406 and 407 of the Civil Act and Article 8 of the Trust Act. <Amended on Mar. 24, 2020>
| Article 19 (Application Mutatis Mutandis of National Tax Collection Act to Procedures for Dispositions for Arrears) |
With regard to procedures for dispositions for arrears of local administrative penalty charges to be collected, except as provided in this Act, Articles 32, 33, and Chapter III, Section 2, Sub-Section 2 of the National Tax Collection Act shall apply mutatis mutandis to the property the attachment of which is prohibited; Articles 26, 27, Chapter III, Section 2, Sub-Section 3, and Article 48 (2) and (3) of the same Act to the effect of dispositions for arrears; Article 40 and Chapter III, Section 2, Sub-Sections 4 through 7 of the same Act to attachment methods by type of property, etc.; Chapter III, Section 2, Sub-Sections 9 of the same Act to a request for delivery and procedures for and effect of participation in attachment; Chapter III, Sections 3 through 5 of the same Act to procedures for sale and liquidation of attached property; and Article 106 of the Local Tax Collection Act to a disposition on deficits. <Amended on Dec. 27, 2016; Mar. 24, 2020; Dec. 29, 2020>
CHAPTER IV SUPPLEMENTARY PROVISIONS
| Article 20 (Informatization of Affairs concerning Collecting and Managing Local Non-Tax Revenue) |
| (1) | The head of a local government may handle affairs referred to in this Act or affairs concerning imposing and collecting local non-tax revenue or managing local non-tax revenue using an information and communications network for local non-tax revenue to enhance the efficiency and transparency of affairs of imposing and collecting local non-tax revenue. <Amended on May 29, 2016> |
| (2) | The Minister of the Interior and Safety shall handle the following affairs by establishing an information and communications network for local non-tax revenue for efficiently managing information on imposing and collecting local non-tax revenue, and for convenience in paying local non-tax revenue: <Amended on Nov. 19, 2014; May 29, 2016; Jul. 26, 2017> |
| 1. | Managing and providing data concerning imposing and collecting local non-tax revenue; |
| 2. | Managing and providing information on local non-tax revenue in arrears and information necessary for dispositions for arrears; |
| 3. | Providing services for convenience of payment, such as electronic payment and electronic services delivery; |
| 4. | Managing and providing information necessary for analyzing status concerning operating local non-tax revenue and for managing the statistics thereon; |
| 5. | Providing other services necessary for efficiently performing affairs of collecting and managing local non-tax revenue. |
| (3) | The Minister of the Interior and Safety may prepare and use devices for interlinking other information processing systems related to the affairs of collecting and managing local non-tax revenue with the information and communications network for local non-tax revenue to enhance the efficiency and transparency of the affairs of collecting and managing local non-tax revenue; and to secure convenience for persons obliged to pay. <Amended on Nov. 19, 2014; May 29, 2016; Jul. 26, 2017> |
| (4) | The Minister of the Interior and Safety and the heads of local governments may entrust informatization projects related to the collection and management of local non-tax revenue to the Korea Local Information Research and Development Institute under Article 72 of the Electronic Government Act to efficiently implement informatization projects related to collecting and managing local non-tax revenue, such as operation of the information and communications network for local non-tax revenue, etc. <Amended on Nov. 19, 2014; May 29, 2016; Jul. 26, 2017> |
| (5) | Matters necessary for handling procedures, standards, methods, and management systems for the matters provided for in paragraphs (1) through (4) shall be prescribed by Presidential Decree. |
[Title Amended on May 29, 2016]
| Article 20-2 (Establishment of Information and Communications Network for Local Non-Tax Revenue in Integrated Manner) |
The Minister of the Interior and Safety shall establish an information and communications network for local non-tax revenue by integrating with a local tax information and communications network under Article 135 (2) of the Framework Act on Local Taxes for the efficient handling of affairs of collecting and managing local non-tax revenue. [This Article Newly Inserted on Mar. 24, 2020]
[Enforcement Date: Feb. 3, 2022] Article 20-2
| Article 21 (Payment of Local Non-Tax Revenue by Credit Card) |
| (1) | A payer obliged to pay may pay local non-tax revenue by credit card, debit card, etc. (hereinafter referred to as “credit card, etc.”) via a collection agency for local non-tax revenue prescribed by Presidential Decree (hereinafter referred to as “local non-tax revenue collection agency”). <Amended on May 29, 2016> |
| (2) | A payer obliged to pay may automatically pay local non-tax revenue by credit card, etc. via a local non-tax revenue collection agency: Provided, That this shall not apply to local non-tax revenue the payment deadline of which has expired. <Newly Inserted on Mar. 24, 2020> |
| (3) | When paying local non-tax revenue by credit card, etc. pursuant to paragraphs (1) and (2), the date of approval set by a local non-tax revenue collection agency shall be deemed the date of payment. <Amended on May 29, 2016; Mar. 24, 2020> |
| (4) | Except as provided in paragraphs (1) through (3), matters necessary for paying local non-tax revenue by a credit card, etc. shall be prescribed by Presidential Decree. <Amended on May 29, 2016; Jan. 29, 2020; Mar. 24, 2020> |
[Title Amended on May 29, 2016]
| Article 21-2 (Exemption from Fees for Registration of Real Estate) |
Where the relevant local government files an application for registration of real estate in order for the head of a local government to collect the amount in arrears of local administrative penalty charges, it shall be exempted from a registration fee under Article 22 (3) of the Registration of Real Estate Act. [This Article Newly Inserted on Jan. 5, 2021]
| Article 22 (Establishing and Implementing Operating Plans for Information System for Receiving Local Non-Tax Revenue) |
| (1) | To enable payers obliged to pay to conveniently inquire local non-tax revenue of all local governments and to pay the same, the Minister of the Interior and Safety shall establish and implement an operating plan regarding the information system for receiving local tax payments, including the following matters: <Amended on Nov. 19, 2014; May 29, 2016; Jul. 26, 2017> |
| 1. | Interlinking the information and communications network for local non-tax revenue with an information and communications networks of a local non-tax revenue collection agency; |
| 2. | Real-time processing local tax payment, and safely managing and operating the integrated receipt processing system; |
| 3. | Improving various forms to raise convenience for paying local non-tax revenue; |
| 4. | Matters concerning nationwide inquiries into, paying, and procedures for receiving and handling of, local non-tax revenue; and concerning improving efficiency and safety; |
| 5. | Other matters necessary for establishing and implementing operation plans, such as the scope, etc. of institutions related to the information system for receiving local non-tax revenue prescribed by Presidential Decree. |
| (2) | When the Minister of the Interior and Safety establishes and implements an operating plan regarding the information system for receiving local tax payments under paragraph (1), he or she shall preferentially reflect the improvement of the convenience of payers obliged to pay; and ensure that no regional discrimination exists regarding using the information system of receipt of local non-tax revenue. <Amended on Nov. 19, 2014; May 29, 2016; Jul. 26, 2017> |
[Title Amended on May 29, 2016]
| Article 22-2 (Analysis and Diagnosis of Local Non-Tax Revenue) |
| (1) | The Minister of the Interior and Safety may analyze and diagnose the imposition and collection of local non-tax revenue every year to efficiently manage local non-tax revenue. <Amended on May 29, 2016; Jul. 26, 2017> |
| (2) | Where the Minister of the Interior and Safety may conduct analysis and diagnosis referred to in paragraph (1), he or she may disclose the outcomes thereof. <Amended on Jul. 26, 2017> |
| (3) | The Minister of the Interior and Safety may request the head of a local government to present materials necessary for analysis and diagnosis referred to in paragraph (1). In such cases, the head of a local government shall comply with such request except in extenuating circumstances. <Amended on Jul. 26, 2017> |
| (4) | If necessary for ensuring objective and specialized analysis and diagnosis referred to in paragraph (1), the Minister of the Interior and Safety may request specialized institutions prescribed by Presidential Decree to perform such analysis and diagnosis and contribute to the specialized institutions to facilitate the analysis and diagnosis. <Amended on Jul. 26, 2017; Jan. 5, 2021> |
| (5) | The Minister of the Interior and Safety may, as prescribed by Presidential Decree, grant rewards to the local governments or collecting officials that are deemed to offer distinguished service in the collection of local non-tax revenue as a result of analysis and diagnosis referred to in paragraph (1). <Amended on May 29, 2016; Jul. 26, 2017> |
| (6) | Matters necessary for methods and procedures for analysis and diagnosis under paragraph (1) shall be prescribed by Presidential Decree. |
[This Article Newly Inserted on May 18, 2015]
[Title Amended on May 29, 2016]
| Article 22-3 (Local Non-Tax Revenue Policy Council) |
| (1) | In order to consult and coordinate matters necessary for efficiently collecting, managing, etc., local non-tax revenue with related administrative agencies, etc., and to establish and promote relevant policies from a comprehensive point of view, the Local Non-Tax Revenue Policy Council (hereinafter referred to as the "Council") shall be established in the Ministry of the Interior and Safety. |
| (2) | The Vice Minister of the Interior and Safety shall be the chairperson of the Council. |
| (3) | For the efficient operation of the Council, a working-level council for non-tax revenue policy (hereinafter referred to as "working-level council") may be established and an advisory group comprised of relevant experts may be operated. |
| (4) | If deemed necessary to perform its duties, the Council may request the head of the relevant central administrative agency, the head of a local government, etc. to provide cooperation such as the submission of data or opinion or the reflection of the results of consultation and coordination. |
| (5) | Except as otherwise provided in paragraphs (1) through (4), matters necessary for the composition, operation, etc. of the Council, working-level council, and advisory group shall be prescribed by Presidential Decree. |
[This Article Newly Inserted on Dec. 26, 2017]
CHAPTER V PENALTY PROVISIONS
| Article 23 (Penalty Provisions) |
Any person who provides or divulges tax information, taxation data, data other than taxation data, or data referred to in Article 5 (3) to any third person; or uses them for other than their original purposes, in violation of Article 5 (4), shall be punished by imprisonment with labor for not more than three years; or by a fine not exceeding 30 million won. In such cases, such person may be punished by a fine and imprisonment with labor concurrently. <Amended on May 29, 2016; Dec. 26, 2017>
ADDENDA <Act No. 11998, Aug. 6, 2013>
Article 1 (Enforcement Date)
This Act shall enter into force one year after the date of its promulgation.
Article 2 (Applicability)
| (1) | The Act shall also apply to local non-tax revenue receipts the payment in arrears of which has occurred before this Act enters into force or regarding which procedures, etc. for a disposition for arrears, etc. is pending. In such cases, procedures, etc. for a disposition for arrears taken by a collecting official pursuant to any former provisions of this Act in the same manner as delinquent local taxes are collected, shall be deemed being taken pursuant to this Act, if any provisions corresponding to such former provisions exist in this Act. |
| (2) | Article 7 shall begin to apply from payment of the first purchase price the payment period of which arrives after this Act enters into force. |
Article 3 Omitted.
ADDENDA <Act No. 12617, May 20, 2014>
Article 1 (Enforcement Date)
This Act shall enter into force on July 1, 2014: Provided, That Article 15 (5) of the Addenda shall enter into force on August 7, 2014. Articles 2 through 16 Omitted.
ADDENDA <Act No. 12844, Nov. 19, 2014>
Article 1 (Enforcement Date)
This Act shall enter into force on the date of its promulgation: Provided, That among the Presidential Decrees amended pursuant to Article 6 of the Addenda, the provisions amending the Presidential Decrees dates of which enter into force have not yet arrived, shall enter into force on the dates the relevant Presidential Decrees enter into force, respectively. Articles 2 through 7 Omitted.
ADDENDUM <Act No. 13294, May 18, 2015>
This Act shall enter into force six months after the date of its promulgation.
ADDENDA <Act No. 14193, May 29, 2016>
Article 1 (Enforcement Date)
This Act shall enter into force six months after the date of its promulgation.
Article 2 (Applicability)
The amended provisions of Articles 7-2 and 7-3 shall begin to apply from the first payer who fails to pay local non-tax revenue receipts by the payment deadline after this Act enters into force.
ADDENDA <Act No. 14474, Dec. 27, 2016>
Article 1 (Enforcement Date)
This Act shall enter into force three months after the date of its promulgation.
Articles 2 through 14 Omitted.
ADDENDA <Act No. 14476, Dec. 27, 2016>
Article 1 (Enforcement Date)
This Act shall enter into force three months after the date of its promulgation. (Proviso Omitted.)
Articles 2 through 5 Omitted.
ADDENDA <Act No. 14839, Jul. 26, 2017>
Article 1 (Enforcement Date)
This Act 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 provisions amending the Presidential Decrees dates of which enter into force have not yet arrived shall enter into force on the dates the relevant Presidential Decrees enter into force, respectively. Articles 2 through 6 Omitted.
ADDENDUM <Act No. 15293, Dec. 26, 2017>
This Act shall enter into force six months after the date of its promulgation.
ADDENDA <Act No. 16885, Jan. 29, 2020>
Article 1 (Enforcement Date)
This Act shall enter into force on the date of its promulgation.
Article 2 (Applicability to Exemption from Collection of Small Amount)
The amended provisions of Article 7-5 shall begin to apply to the first case where local non-tax revenue to be notified for payment is less than 2,000 won after this Act enters into force.
ADDENDA <Act No. 16957, Feb. 4, 2020>
Article 1 (Enforcement Date)
This Act shall enter into force six months after the date of its promulgation. (Proviso Omitted.)
Articles 2 through 13 Omitted.
ADDENDA <Act No. 17091, Mar. 24, 2020>
Article 1 (Enforcement Date)
This Act shall enter into force on the date of its promulgation: Provided, That each of the amended provisions of the following Articles shall enter into force on each of the dates specified in the following categories:
| 1. | Article 4 (24) of the Addenda: April 3, 2020; |
| 2. | Article 4 (8) of the Addenda: May 1, 2020; |
| 3. | Article 4 (44) and (62) of the Addenda: August 28, 2020; |
Article 2 (Period of Validity of Suspension of Payment of Purchase Price)
The amended provisions of Article 7 shall remain effective until February 2, 2022. Article 3 (Applicability to Submission of Payment Certificate)
The amended provisions of Article 7-6 shall begin to apply to the first person who intends to be paid the purchase price after February 3, 2022. Article 4 Omitted.
Article 5 (Relationship to Other Statutes and Regulations)
Where the previous Act on the Collection of Local Non-Tax Revenue or any provision thereof is referred to in other statutes as at the time this Act enters into force, if any provision corresponding thereto exists herein, this Act or the relevant provision of this Act shall be deemed to be referred to in lieu of the previous Act on the Collection of Local Non-Tax Revenue or the provision thereof.
ADDENDA <Act No. 17574, Dec. 8, 2020>
Article 1 (Enforcement Date)
This Act shall enter into force six months after the date of its promulgation.
Articles 2 through 19 Omitted.
ADDENDA <Act No. 17758, Dec. 29, 2020>
Article 1 (Enforcement Date)
This Act shall enter into force on January 1, 2021.
Articles 2 through 26 Omitted.
ADDENDA <Act No. 17837, Jan. 5, 2021>
Article 1 (Enforcement Date)
This Act shall enter into force six months after the date of its promulgation: Provided, That the amended provisions of Article 6 (2) shall enter into force on February 3, 2022. Article 2 (Applicability to Restrictions on Government-Permitted Business)
The amended provisions of Article 7-2 (2) shall begin to apply to the first amount in arrears exceeding 300 thousand won after this Act enters into force. Article 3 (Applicability to Appropriation of Local Administrative Penalty Charge Refunds)
The amended provisions of Article 7-7, 14 (1) 1 and (2) 2 shall begin to apply to the first case where the grounds for local administrative penalty charge refund occur after this Act enters into force. Article 4 (Applicability to Exemption from Fees for Registration of Real Estate)
The amended provisions of Article 21-2 shall begin to apply to the first application for registration of real estate to collect the amount in arrears of local administrative penalty charges after this Act enters into force. Article 5 (Transitional Measures concerning Restrictions on Government-Permitted Business)
Notwithstanding the amended provisions of Article 7-2 (2), the previous provisions shall apply to a payer in arrears who has become subject to restriction on government-permitted business under the previous provisions before this Act enters into force. The same shall also apply where an amount in arrears of the payer in arrears is not less than one million won, including the amount in arrears before this Act enters into force and the amount of in arrears after this Act enters into force.