CHAPTER I GENERAL PROVISIONS
The purpose of this Act is to manage local government subsidy budgets in a transparent and appropriate manner by prescribing basic matters concerning the budgeting, application for and decision on the grant, and use of local government subsidies, thereby ensuring efficient budgeting and execution.
The definitions of terms used in this Act shall be as follows:
| 1. | The term "local government subsidy" means a subsidy granted by a local government to foster or support tasks or projects performed by another local government, corporation, organization, or individual under Acts, subordinate statutes, or municipal ordinances; excluding equity investments, contributions, and subsidies granted by a local government from State subsidy resources; |
| 2. | The term "local government subsidized project" means a project or task for which a local government subsidy is spent or granted; |
| 3. | The term "local government subsidized project operator" means a person who performs a local government subsidized project; |
| 4. | The term "recipient of local government subsidies" means a person who receives a local government subsidy from a local government or a local government subsidized project operator. |
| Article 3 (Relationship to other Acts) |
| (1) | The budgeting, execution, and management of local government subsidies shall be governed by this Act, except as otherwise provided in other Acts. |
| (2) | The protection of personal information shall be governed by the Personal Information Protection Act, except as otherwise specially provided in this Act. |
| (3) | In the application of this Act to matters concerning education, science, and physical education or to special accounts for educational finances, "head of a local government" or "Mayor/Do Governor" shall be deemed "Superintendent of Education," and "Minister of the Interior and Safety" shall be deemed "Minister of Education." |
CHAPTER II BUDGETING FOR LOCAL GOVERNMENT SUBSIDIES
| Article 4 (Standard subsidy rates for City/Do expenses) |
| (1) | Target projects to which local government subsidies are paid, items of expenses, subsidy rates, and amounts shall be determined by the budget every year; and in the case of local government subsidies to other local governments, standard subsidy rates to be applied to each local government subsidized project during application for and budgeting of local government subsidies shall be determined by municipal ordinance of a Special City, Metropolitan City, Do, or Special Self-Governing Province; provided, expenses borne by a local government under Article 22 of the Local Finance Act shall be excluded. |
| (2) | The head of a local government shall include the amount to be borne under paragraph (1) in the budget for the relevant fiscal year in preference to other projects. |
| Article 5 (Application for budgeting by persons intending to perform local government subsidized projects) |
| (1) | A person who intends to perform a local government subsidized project shall apply to the head of a local government for the budgeting of local government subsidies every year. |
| (2) | Even if no application for budgeting local government subsidies under paragraph (1) is filed, the head of a local government may include necessary local government subsidies in the budget where it is unavoidable for the policies of the relevant local government as determined by municipal ordinance. |
| (3) | When filing an application under paragraph (1), an application form stating the purpose and details of the local government subsidized project, expenses required for such project, and other necessary matters shall be submitted along with attached documents. |
| (4) | The head of a local government shall determine necessary matters such as the application form, attached documents, and submission dates for applications under paragraphs (1) through (3). |
| Article 6 (Budgeting and operation of local government subsidies) |
| (1) | The head of a local government shall budget local government subsidies in consideration of the nature of the relevant local government subsidized project and the cost-bearing capacity of the local government subsidized operator. |
| (2) | The head of a local government shall not grant local government subsidies as operating expenses, except where there is an explicit basis in Acts and subordinate statutes. In such cases, items of expenses that may be used as operating expenses shall be determined by Presidential Decree. |
| (3) | The head of a local government shall systematically manage support history to ensure that local government subsidies are not granted redundantly or to unqualified persons. |
| Article 6-2 (Notification of budget for local government subsidies) |
| (1) | Where the head of a local government submits to the local council a budget bill that includes matters concerning the grant of local government subsidies to another local government, he or she shall immediately notify the head of the other local government receiving the local government subsidies of the details of the budgeting as prescribed by Presidential Decree. |
| (2) | Where the budget bill for local government subsidies under paragraph (1) is adopted by the local council, the head of a local government shall immediately notify the head of the other local government receiving the local government subsidies of the details of the resolution as prescribed by Presidential Decree. |
| (3) | Notification under paragraphs (1) and (2) shall be made through the integrated local government subsidy management network under Article 28(1). |
[This Article Added on Apr. 11, 2023]
CHAPTER III PROCEDURES FOR GRANTING LOCAL GOVERNMENT SUBSIDIES
| Article 7 (Application for grant of local government subsidies) |
| (1) | A person who intends to receive a local government subsidy shall submit to the head of a local government, within a period designated by the head of the local government, an application form stating the purpose and details of the local government subsidized project, expenses required for such project, and other necessary matters, along with a detailed business plan for the local government subsidized project and documents determined by the head of the local government, as prescribed by Presidential Decree. <Amended on Apr. 11, 2023> |
| (2) | The head of a local government shall receive applications for the grant of local government subsidies under paragraph (1) through a public solicitation process; provided, this shall not apply to the following cases: |
| 1. | Where a different method of selecting recipients is prescribed by statutes and regulations or municipal ordinances; |
| 2. | Where a recipient is designated for a State-subsidized project; |
| 3. | Where purposes of donations have been designated; |
| 4. | Where it is deemed that the purpose of the project cannot be achieved unless the applicant performs it, in the case of a project reflected in the budget upon application by a person intending to perform the local government subsidized project; |
| 5. | Where the person intending to perform the local government subsidized project is the head of a local government; |
| 6. | Where it is deemed inappropriate to use a public solicitation process due to a natural disaster or other unavoidable grounds, other than the cases prescribed in subparagraphs 1 through 5. |
| Article 8 (Decision on grant of local government subsidies) |
| (1) | Where an application for the grant of a local government subsidy is submitted under Article 7, the head of a local government shall examine the following matters and decide whether to grant the local government subsidy without delay: |
| 1. | Suitability for the purposes of statutes and regulations, municipal ordinances, and the budget; |
| 2. | Appropriateness of the details of the local government subsidized project; |
| 3. | Existence of any error in the calculation of the amount; |
| 4. | Capacity to bear its own funds (limited to cases where the local government subsidized operator bears part of the funds). |
| (2) | Where the head of a local government receives applications for the grant of local government subsidies through a public solicitation process under Article 7(2), he or she shall undergo deliberation by the Local Government Subsidy Management Committee under Article 26 before deciding whether to grant the local government subsidies under paragraph (1). |
| Article 9 (Conditions for grant of local government subsidies) |
| (1) | When deciding to grant a local government subsidy, the head of a local government may attach conditions necessary to achieve the purpose of granting the local government subsidy prescribed by statutes and regulations, municipal ordinances, and the budget. |
| (2) | When deciding to grant a local government subsidy, the head of a local government may, where the local government subsidized operator generates substantial profits upon completion of the local government subsidized project, attach a condition to return all or part of the local government subsidy already granted to the local government within an extent that does not conflict with the purpose of granting the local government subsidy. |
| Article 10 (Notification of decision on grant of local government subsidies) |
When the head of a local government decides to grant a local government subsidy, he or she shall notify the person who applied for the grant of the local government subsidy of the details of the decision (including conditions, if any; hereinafter the same shall apply) without delay.
| Article 10-2 (Methods of granting local government subsidies) |
| (1) | Where the head of a local government deems it necessary for the efficient execution and management of local government subsidies, he or she may deposit the local government subsidies in the treasury of the relevant local government and grant them to the local government subsidized operator. |
| (2) | Matters necessary for the scope of local government subsidies to be deposited in the treasury of a local government, methods of deposit, and procedures for grant under paragraph (1) shall be determined by Presidential Decree. |
[This Article Added on Apr. 11, 2023]
| Article 11 (Cancellation of decision on grant due to change in circumstances) |
| (1) | Where the head of a local government deems it particularly necessary due to a change in circumstances occurring after a decision to grant a local government subsidy has been made, he or she may change the details of the decision or cancel all or part of the decision; provided, this shall not apply to the portion of the local government subsidized project already performed. |
| (2) | Grounds for cancelling a decision to grant a local government subsidy under paragraph (1) shall be limited to cases where it becomes unnecessary to continue all or part of a local government subsidized project due to a natural disaster or other changes in circumstances occurring after the decision to grant the local government subsidy was made, and cases determined by Presidential Decree. |
| (3) | Where the head of a Si/Gun/Autonomous Gu (hereinafter referred to as "head of a Si/Gun/Gu") intends to request a change in the details of or cancellation of a decision to grant a local government subsidy of a City/Do, he or she shall submit documents stating the following matters to the Special Metropolitan City Mayor, Metropolitan City Mayor, Special Self-Governing City Mayor, Do Governor, or Special Self-Governing Province Governor (hereinafter referred to as "Mayor/Do Governor"): |
| 1. | Grounds for the change or cancellation of the decision on grant; |
| 2. | Opinions of the relevant local government subsidized operator regarding the change or cancellation of the decision on grant; |
| 3. | Future plans for using the ungranted local government subsidy resulting from the cancellation of the decision on grant. |
| (4) | Where the head of a local government cancels a decision to grant a local government subsidy under paragraph (1), he or she shall grant a local government subsidy for tasks or projects that have become particularly necessary due to such cancellation, as prescribed by Presidential Decree. |
| (5) | Article 10 shall apply mutatis mutandis to cases where the details of a decision to grant a local government subsidy are changed or the decision is cancelled under paragraph (1). |
| Article 12 (Cancellation of decision on grant due to violation of statutes and regulations) |
| (1) | Where a local government subsidized operator falls under any of the following subparagraphs, the head of a local government may cancel all or part of the decision to grant a local government subsidy: |
| 1. | Where he or she uses a local government subsidy for any purpose other than its intended purpose; |
| 2. | Where he or she violates statutes and regulations, municipal ordinances, the details of a decision to grant a local government subsidy, or a disposition taken by the head of a local government under statutes and regulations; |
| 3. | Where he or she is granted a local government subsidy by filing a false application or by other fraudulent means; |
| 4. | Where he or she falls under any grounds determined by municipal ordinance as a case where it is difficult to perform a local government subsidized project. |
| (2) | Where a decision on grant is cancelled under paragraph (1), Article 10 shall apply mutatis mutandis. |
CHAPTER IV PERFORMANCE OF LOCAL GOVERNMENT SUBSIDIZED PROJECTS
| Article 13 (Prohibition of use of local government subsidies for other purposes) |
A local government subsidized operator shall perform a local government subsidized project with the care of a good manager in accordance with statutes and regulations, the details of a decision to grant a local government subsidy, or a disposition taken by the head of a local government under statutes and regulations, and must not use the relevant local government subsidy for any purpose other than its intended purpose.
| Article 14 (Change in details of local government subsidized projects) |
A local government subsidized operator shall obtain approval from the head of a local government to change the details of a local government subsidized project or the distribution of expenses required for a local government subsidized project due to a change in circumstances; provided, this shall not apply to minor changes in details or distribution of expenses determined by the head of a local government.
| Article 15 (Transfer of local government subsidized projects) |
A local government subsidized operator shall obtain approval from the head of a local government in advance to transfer a local government subsidized project to another operator or to suspend or discontinue such project due to a change in circumstances.
| Article 16 (Monitoring of performance of local government subsidized projects) |
| (1) | A local government subsidized operator shall report the performance status of a local government subsidized project to the head of a local government as determined by the head of the local government. |
| (2) | The head of a local government may conduct a field inspection where necessary to identify the performance status of a local government subsidized project. |
| (3) | A local government subsidized operator shall retain data related to the performance of a local government subsidized project for 5 years, and other necessary matters shall be determined by Presidential Decree. |
| (4) | Where the head of a local government deems that a local government subsidized operator fails to perform a local government subsidized project in accordance with statutes and regulations, the details of a decision to grant a local government subsidy, or a disposition taken by the head of a local government under statutes and regulations, he or she may issue an order necessary for the performance of the local government subsidized project to the local government subsidized operator. |
| (5) | Where a local government subsidized operator violates an order under paragraph (4), the head of a local government may temporarily suspend the performance of the local government subsidized project. |
| Article 17 (Report on performance of local government subsidized projects) |
| (1) | When any of the following subparagraphs applies, a local government subsidized operator shall prepare a performance report on the local government subsidized project (hereinafter referred to as "performance report") and submit it to the head of a local government by the deadline prescribed by Presidential Decree; in such cases, the performance report shall be accompanied by a settlement report clearly identifying the expenses required for the local government subsidized project by financial source and documents determined by the head of the local government; provided, where a local government subsidized operator has reported performance under Article 27 of the Act on the Management of Subsidies and there are grounds prescribed by Presidential Decree, the reporting of performance under this Act may be deemed completed: |
| 1. | When a local government subsidized project is completed; |
| 2. | When approval for the discontinuation of a local government subsidized project is obtained; |
| 3. | When a fiscal year ends. |
| (2) | A local government subsidized operator whose total amount of local government subsidies for a local government subsidized project is not less than 300 million won (excluding cases where the local government subsidized operator is a local government) shall have the appropriateness of its settlement report verified by an auditor under Article 2(7) and 9 of the Act on External Audit of Stock Companies; provided, this shall not apply where a person who performs a subsidized project or an indirectly subsidized project, the details of which include the relevant local government subsidized project, has already had the appropriateness of the settlement report verified under the latter part of Article 27(2) of the Act on the Management of Subsidies. <Amended on Apr. 11, 2023> |
| (3) | Where a local government subsidized operator fails to submit a performance report by the deadline under the former part of paragraph (1), the head of a local government may reduce the local government subsidy in accordance with the standards prescribed by Presidential Decree, in consideration of the delay in submission. In such cases, the amount of the reduction in the local government subsidy shall be within 50/100 of the local government subsidy granted for the first time after the relevant performance report is submitted. <Added on Apr. 11, 2023> |
| (4) | Matters necessary for the submission of performance reports and the verification of settlement reports under paragraphs (1) and (2) shall be determined by Presidential Decree. <Amended on Apr. 11, 2023> |
| Article 18 (Accounting audit of specific local government subsidized operators) |
| (1) | A local government subsidized operator whose total amount of local government subsidies granted by the head of a local government during the same fiscal year is not less than 1 billion won (excluding cases where the local government subsidized operator is a local government; hereinafter referred to as "specific local government subsidized operator" in this Article) shall submit an audit report prepared based on the relevant fiscal year by an auditor under Articles 2(7) and 9 of the Act on External Audit of Stock Companies. (hereinafter referred to as "audit report" in this Article) to the head of the local government that granted the local government subsidies; provided, a specific local government subsidized operator that has been granted local government subsidies for 2 or more consecutive years and submitted an audit report in the preceding fiscal year may omit the preparation and submission of an audit report for the relevant fiscal year. |
| (2) | Notwithstanding paragraph (1), where a specific local government subsidized operator is subject to an accounting audit under other Acts, it may submit an audit-related report prepared under the relevant Acts in lieu of the audit report. In such cases, the audit-related report shall include an audit opinion on the local government subsidized project. |
| (3) | Notwithstanding paragraphs (1) and (2), where the head of a local government deems it inappropriate to prepare or submit an audit report due to the nature of a local government subsidized project, he or she may exempt the relevant specific local government subsidized operator from submitting an audit report. |
| (4) | Matters necessary for the selection of auditors for specific local government subsidized operators, standards for accounting audits, and the preparation and submission of audit reports, other than the matters prescribed in paragraphs (1) through (3), shall be determined by Presidential Decree. |
| Article 19 (Determination of amounts of local government subsidies) |
| (1) | The head of a local government shall examine whether a local government subsidized project is in conformity with statutes and regulations, municipal ordinances, the details of a decision to grant a local government subsidy, or a disposition taken by the head of a local government under statutes and regulations, based on the performance report prepared by the local government subsidized operator under Article 17. In such cases, he or she may conduct a field inspection if necessary. |
| (2) | Where the head of a local government determines that the project is suitable as a result of the examination under paragraph (1), he or she shall determine the amount of the local government subsidy and notify the relevant local government subsidized operator thereof. |
| Article 20 (Correction orders for local government subsidized projects) |
Where the head of a local government receives a performance report and deems that the performance of the local government subsidized project is not in conformity with statutes and regulations, municipal ordinances, the details of a decision to grant a local government subsidy, or a disposition taken by the head of a local government under statutes and regulations, he or she may order the local government subsidized operator to take measures necessary for the correction of the local government subsidized project.
| Article 20-2 (Public disclosure of information by local government subsidized operators) |
| (1) | A local government subsidized operator (excluding local governments) who performs a local government subsidized project of a scale not less than that prescribed by Presidential Decree shall, upon the end of each fiscal year, publicly disclose the following documents through the integrated local government subsidy management network under Article 28(1) by the deadline prescribed by Presidential Decree; provided, this shall not apply where a person who performs a subsidized project or an indirectly subsidized project, the details of which include the relevant local government subsidized project, has already made a public disclosure under Article 26-10(1) of the Subsidy Management Act: |
| 1. | Application forms for the grant of local government subsidies and attached documents under Article 7(1); |
| 2. | Settlement reports on expenses for local government subsidized projects under the latter part of Article 17(1); |
| 3. | Audit reports or audit-related reports, where an audit has been conducted under Article 18(1) and (2); |
| 4. | Where an audit has been conducted by the Board of Audit and Inspection, a central administrative agency, or a local government in relation to a local government subsidized project, documents concerning the results of such audit; |
| 5. | Other important documents concerning the performance of local government subsidized projects determined by Presidential Decree. |
| (2) | With respect to a local government subsidized operator who fails to make a public disclosure by the deadline under the main clause of the part other than the subparagraphs of paragraph (1) or who discloses false facts, the head of a local government may issue a correction order, reduce the local government subsidy, or take measures necessary therefor, as prescribed by Presidential Decree. In such cases, the amount of the reduction in the local government subsidy shall be within 50/100 of the total amount of the local government subsidy scheduled to be granted in the fiscal year for which the public disclosure is made under paragraph (1). |
[This Article Added on Apr. 11, 2023]
| Article 21 (Restrictions on disposal of property) |
| (1) | A local government subsidized operator shall clarify the current value and increase or decrease of important property determined by Presidential Decree, which has been acquired with a local government subsidy or the utility of which has increased (hereinafter referred to as "important property"), as prescribed by Presidential Decree, and shall report the current status thereof to the head of a local government. |
| (2) | Where the head of a local government receives a report on the current status of important property under paragraph (1), he or she shall publicly disclose the reported status as prescribed by Presidential Decree. <Added on Apr. 11, 2023> |
| (3) | Even after completing the relevant local government subsidized project, a local government subsidized operator must not perform any of the following acts with respect to important property without the approval of the head of a local government: <Amended on Apr. 11, 2023> |
| 1. | Use for any purpose other than the purpose of the grant; |
| 2. | Transfer, exchange, or lease; |
| 3. | Provision as collateral. |
| (4) | In any of the following cases, a local government subsidized operator may perform any of the acts referred to in the subparagraphs of paragraph (3) without obtaining approval from the head of a local government: <Amended on Apr. 11, 2023> |
| 1. | Where the local government subsidized operator has returned all of the local government subsidy to the local government; |
| 2. | Where the period determined by the head of a local government has passed in consideration of the purpose of granting the local government subsidy and the useful life of the relevant property; |
| 3. | Where any other ground prescribed by Presidential Decree occurs. |
| (5) | Where a local government subsidized operator performs any of the acts referred to in the subparagraphs of paragraph (3) with respect to important property without obtaining approval from the head of a local government even after completing the relevant local government subsidized project, the head of the local government may order the return of all or part of the following amounts, as prescribed by Presidential Decree: <Amended on Apr. 11, 2023> |
| 1. | An amount corresponding to the local government subsidy used to acquire the important property; |
| 2. | An amount corresponding to the increased utility value of the important property; |
| 3. | An amount corresponding to the pecuniary interest gained through the transfer, exchange, lease, or provision of the important property as collateral. |
| Article 22 (Supplementary registration of important property) |
| (1) | When registering ownership of real estate among important property, a local government subsidized operator shall make a supplementary registration stating the matters set forth in the following subparagraphs; provided, this shall not apply to real estate acquired and managed by a local government under the Public Property and Commodity Management Act: |
| 1. | That the relevant real estate is property acquired or the utility value of which has increased through the grant of a local government subsidy; |
| 2. | That approval from the head of a local government shall be obtained to use the relevant real estate for any purpose other than the purpose of the grant, or to transfer, exchange, lease, or provide it as collateral within the period determined by the head of the local government. |
| (2) | Supplementary registration under paragraph (1) shall be made simultaneously with registration of preservation of ownership, registration of transfer of ownership, or registration of change in the description of land or buildings; provided, where the details of registration of real estate are not changed by the grant of a local government subsidy, the supplementary registration shall be made before a performance report is submitted. |
| (3) | Any use for any purpose other than the purpose of the grant, transfer, exchange, lease, or provision as collateral of important property in violation of Article 21(3) after the date of supplementary registration under paragraph (1) shall be null and void. <Amended on Apr. 11, 2023> |
| (4) | A local government subsidized operator may cancel the matters of supplementary registration under paragraph (1) in any of the following cases: |
| 1. | Where the local government subsidized operator has returned all of the local government subsidy to the local government under Article 9(2) or 31 and received confirmation of such fact from the head of the local government; |
| 2. | Where the period determined by the head of a local government has passed in consideration of the purpose of granting the local government subsidy and the useful life of the real estate. |
CHAPTER V MANAGEMENT OF LOCAL GOVERNMENT SUBSIDIES
| Article 23 Deleted. <Apr. 11, 2023> |
| Article 24 (Establishment of separate accounts) |
| (1) | A local government subsidized operator shall establish a separate account for the local government subsidies granted and conduct accounting by clearly distinguishing its own income and expenditures. |
| (2) | Where a local government subsidized operator is the head of a Si/Gun/Gu, the accounting under paragraph (1) shall be processed by distinguishing the breakdown of expenses of the City/Do and the Si/Gun/Gu required for the execution of the local government subsidized project and their respective execution performance. |
| Article 25 Deleted. <Apr. 11, 2023> |
| Article 26 (Local Government Subsidy Management Committee) |
| (1) | The Local Government Subsidy Management Committee shall be established under the jurisdiction of the head of a local government to professionally deliberate on matters concerning local government subsidies. |
| (2) | In any of the following cases, the head of a local government shall undergo deliberation by the Local Government Subsidy Management Committee in advance; provided, in cases prescribed by Presidential Decree, such deliberation may be omitted: <Amended on Apr. 11, 2023> |
| 1. | When budgeting for local government subsidies; |
| 2. | When submitting a draft municipal ordinance related to local government subsidies to the local council; |
| 3. | When deciding on matters concerning the sharing of financial resources between local government subsidies and local government subsidized operators in relation to a local government subsidized project; |
| 4. | When paying rewards for reporting under Article 36-3; |
| 5. | When an evaluation of the operation of local government subsidized projects under Article 27 has been conducted; |
| 6. | Whether to publicly announce the list under Article 30(1); |
| 7. | Other cases determined by municipal ordinance as matters necessary for the management of local government subsidies. |
| (3) | The Local Government Subsidy Management Committee under paragraph (1) shall be comprised of up to 15 persons, including 1 chairperson, with due consideration given to gender composition. |
| (4) | Members under paragraph (3) shall be appointed or commissioned from among private members (including faculty members of national or public schools under the Higher Education Act) and public officials (referring to public officials in general service under Article 2(2)1 of the Local Public Officials Act); provided, members who are public officials shall not exceed 1/4 of the total members. |
| (5) | The chairperson shall be elected from among the private members by mutual vote. |
| (6) | The term of office of private members shall be determined by municipal ordinance within 3 years, and they may be reappointed only once. |
| (7) | A member shall be excluded from the deliberation of a relevant agenda item if he or she falls under any of the following subparagraphs: |
| 1. | Where the member or a person in a kinship relationship with the member has an interest in the agenda item subject to the deliberation; |
| 2. | Where the institution to which the member belongs has an interest in the agenda item subject to the deliberation, such as performing services or providing consultations. |
| (8) | A party to an agenda item subject to deliberation by the Local Government Subsidy Management Committee may file an application for challenge against a member if there are circumstances that make it difficult to expect fair deliberation from such member, and the Local Government Subsidy Management Committee shall decide on it by a resolution. In such cases, the member who is the subject of the application for challenge shall not participate in the resolution. |
| (9) | Where a member falls under any ground for exclusion under the subparagraphs of paragraph (7), he or she shall voluntarily refrain from the deliberation of the relevant agenda item. |
| (10) | The head of a local government may dismiss or de-commission a member if he or she falls under any of the following subparagraphs: |
| 1. | Where the member becomes unable to perform his or her duties due to physical or mental disorders; |
| 2. | Where the member engages in misconduct in relation to his or her duties; |
| 3. | Where the member is deemed to be in office as member on the grounds of neglect of duty or loss of dignity, or for other reasons; |
| 4. | Where the member personally makes it clear that it is impracticable to perform his or her duties. |
| (11) | Meetings of the Local Government Subsidy Management Committee shall be opened with the attendance of a majority of the members on the register and shall resolve with the affirmative vote of a majority of the members present. |
| (12) | Matters necessary for the composition and operation of the Local Government Subsidy Management Committee, other than those prescribed in paragraphs (1) through (11), shall be determined by municipal ordinance. |
| Article 27 (Evaluation of operation of local government subsidized projects) |
| (1) | The head of a local government shall conduct a performance evaluation of local government subsidized projects every year and shall reflect the evaluation results in budgeting unless there is a special ground; provided, an exception may be made in the case of State-subsidized projects. |
| (2) | With respect to local government subsidized projects performed on a continuous basis, the head of a local government shall evaluate the necessity of maintaining such projects every 3 years and take necessary measures according to the evaluation results after undergoing deliberation by the Local Government Subsidy Management Committee. |
| Article 28 (Establishment and operation of integrated local government subsidy management network) |
| (1) | The Minister of the Interior and Safety and the head of a local government shall establish and operate an integrated local government subsidy management network (hereinafter referred to as "integrated local government subsidy management network") to smoothly perform local government subsidized projects and prevent the redundant or fraudulent receipt of local government subsidies. |
| (2) | The integrated local government subsidy management network shall include data or information on the following matters (hereinafter referred to as "local government subsidy management information"): |
| 1. | Support history of local government subsidies under Article 6(3); |
| 2. | Applications for the grant of local government subsidies under Article 7; |
| 3. | Decisions on the grant of local government subsidies under Article 8; |
| 4. | Performance status of local government subsidized projects under Article 16(1) and field inspections under paragraph (2) of that Article; |
| 5. | Performance reports by local government subsidized operators under Article 17(1) and verification of settlement reports under paragraph (2) of the same Article; |
| 6. | Current status of important property under Article 21(1); |
| 7. | Performance evaluation of local government subsidized projects under Article 27(1) and measures under paragraph (2) of that Article; |
| 8. | Other matters prescribed by Presidential Decree for the efficient execution and management of local government subsidies and local government subsidized projects. |
| (3) | Where the Minister of the Interior and Safety deems it necessary for the efficient execution and management of local government subsidies and local government subsidized projects, he or she may request the heads of relevant agencies to link the integrated local government subsidy management network with the following information systems; in such cases, the heads of the relevant agencies receiving the request shall comply with such request unless there is a special ground: |
| 1. | The integrated information network under Article 15-5(1) of the Framework Act on Employment Policy; |
| 2. | The vocational skills development information network under Article 6(1) of the National Lifelong Vocational Skills Development Act; |
| 3. | The integrated subsidy management network under Article 26-2(1) of the Subsidy Management Act; |
| 4. | The social security information system under Article 37(2) of the Framework Act on Social Security; |
| 5. | The information system under Article 6-2(1) of the Social Welfare Services Act; |
| 6. | The management system for electronic social service vouchers under Article 28(1) of the Act on the Use of Social Services and the Management of Vouchers; |
| 7. | The integrated childcare information system under Article 9-3(1) of the Child Care Act; |
| 8. | The early childhood education information system under Article 19-2(1) of the Early Childhood Education Act; |
| 9. | The education information system under Article 30-4(1) of the Elementary and Secondary Education Act; |
| 10. | Other information systems determined by Presidential Decree as information systems necessary for the efficient execution and management of local government subsidies and local government subsidized projects. |
| (4) | Where the Minister of the Interior and Safety and the head of a local government deem it necessary for identifying redundant or fraudulent receipt of local government subsidies or the details of execution, they may collect and process (referring to processing under subparagraph 2 of Article 2 of the Personal Information Protection Act; hereinafter the same shall apply in Articles 28-2 through 28-4 and 36-5) data or information related to local government subsidies through links between the integrated local government subsidy management network and other information systems under the subparagraphs of paragraph (3). |
[This Article Wholly Amended on Apr. 11, 2023]
| Article 28-2 (Requests for provision of data or information) |
| (1) | Where the Minister of the Interior and Safety and the head of a local government deem it necessary for the efficient execution and management of local government subsidies and local government subsidized projects, such as the selection and qualification management of local government subsidized operators or local government subsidy recipients (hereinafter referred to as "local government subsidized operators, etc.") and the prevention of redundant or fraudulent receipt of local government subsidies, they may request the heads of relevant agencies to provide data or information in any of the following subparagraphs; in such cases, the heads of the relevant agencies shall comply with the request unless there is a special ground: |
| 1. | Computerized information data concerning matters registered in family relations under Article 9 of the Act on the Registration of Family Relations; |
| 2. | Registration records under the Registration of Real Estate Act; |
| 3. | Resident registration computerized information data under Article 30 of the Resident Registration Act; |
| 4. | Data or information related to taxation in the following items: |
| a. | Information prescribed by Presidential Decree among tax information under Article 81-13(1) of the Framework Act on National Taxes; |
| b. | Tax payment certificates under Article 108 of the National Tax Collection Act; |
| c. | Data or information concerning business registration under Article 8 of the Value Added Tax Act; |
| d. | Electronic tax invoices or revised electronic tax invoices under Article 32(2) and (7) of the Value Added Tax Act; |
| e. | Electronic invoices under the latter part of Article 163(1) of the Income Tax Act; |
| f. | Data or information prescribed by Presidential Decree among tax information or tax data under Articles 86(1) and 132 of the Framework Act on Local Taxes; |
| g. | Tax payment certificates under Article 5 of the Local Tax Collection Act; |
| 5. | Data or information related to insurance, pensions, or benefits in the following items: |
| a. | National health insurance under the National Health Insurance Act; |
| b. | National basic living security benefits under the National Basic Living Security Act; |
| c. | National pension under the National Pension Act; |
| d. | Employment insurance under the Employment Insurance Act; |
| e. | Basic pension under the Basic Pension Act; |
| f. | Industrial accident compensation insurance under the Industrial Accident Compensation Insurance Act; |
| g. | Disability pension under the Disability Pension Act; |
| 6. | Other data or information prescribed by Presidential Decree for the efficient execution and management of local government subsidies and local government subsidized projects. |
| (2) | Where the Minister of the Interior and Safety and the head of a local government deem it necessary for the efficient analysis and management of the data or information provided under paragraph (1), they may process the relevant data or information through the integrated local government subsidy management network. |
| (3) | Matters necessary for requests for the provision of data or information to relevant agencies and the processing thereof, other than those prescribed in paragraphs (1) and (2), shall be determined by Presidential Decree. |
[This Article Added on Apr. 11, 2023]
| Article 28-3 (Requests for provision of financial information or credit information) |
| (1) | Notwithstanding Article 4(1) of the Act on Real Name Financial Transactions and Confidentiality and Article 32(2) of the Use and Protection of Credit Information Act, where necessary for the efficient execution and management of local government subsidies and local government subsidized projects, such as the selection and qualification management of local government subsidized operators, etc. and the prevention of redundant or fraudulent receipt of local government subsidies, the Minister of the Interior and Safety and the head of a local government may receive and process data or information in any of the following subparagraphs from the head of a financial institution, etc. (referring to a financial company, etc. under the Act on Real Name Financial Transactions and Confidentiality and a credit information focus institution under Article 25 of the Use and Protection of Credit Information Act; the same shall apply hereinafter in this Article) to the extent necessary. In such cases, the Minister of the Interior and Safety and the head of a local government may receive and process the relevant data or information through the integrated local government subsidy management network: |
| 1. | Data or information on the details of financial assets and financial transactions under the Act on Real Name Financial Transactions and Confidentiality (hereinafter referred to as "financial information"); |
| 2. | Credit information under the Use and Protection of Credit Information Act (hereinafter referred to as "credit information"). |
| (2) | When the Minister of the Interior and Safety and the head of a local government request the head of a financial institution, etc. to provide financial information or credit information under paragraph (1), they shall also submit a written consent of the person in whose name the relevant financial information or credit information is held for the provision of information. In such cases, the written consent may be converted into an electronic form and submitted. |
| (3) | The head of a financial institution, etc. requested to provide financial information or credit information under paragraph (1) shall provide the financial information or credit information notwithstanding Article 4 of the Act on Real Name Financial Transactions and Confidentiality and Article 32 of the Credit Information Use and Protection Act. |
| (4) | The head of a financial institution, etc. who has provided financial information or credit information under paragraph (3) shall notify the person in whose name the information is held of the fact that the financial information or credit information has been provided; provided, that if the person in whose name the information is held has given prior consent, notification may be omitted notwithstanding Article 4-2(1) of the Act on Real Name Financial Transactions and Confidentiality and Article 32(7) of the Credit Information Use and Protection Act. |
| (5) | Matters necessary for requests for provision of financial information or credit information and the processing thereof, consent of the person in whose name the information is held, and notification to such person, other than those prescribed in paragraphs (1) through (4), shall be determined by Presidential Decree. |
[This Article Added on Apr. 11, 2023]
| Article 28-4 (Protection of local government subsidy management information) |
| (1) | The Minister of the Interior and Safety and the head of a local government shall use the following data or information (hereinafter referred to as "local government subsidy management information, etc." in this Article) within the extent necessary for the purpose of efficient execution and management of local government subsidies and local government subsidized projects, and shall establish and implement necessary measures or actions to securely protect local government subsidy management information, etc.: |
| 1. | Local government subsidy management information; |
| 2. | Data or information collected under Article 28(4); |
| 3. | Data or information provided under Article 28-2; |
| 4. | Financial information or credit information provided under Article 28-3. |
| (2) | No person shall perform any of the following acts with respect to local government subsidy management information, etc. and the integrated local government subsidy management network: |
| 1. | Forging, altering, damaging, or erasing local government subsidy management information, etc. for the purpose of interfering with the processing of local government subsidy management information, etc.; |
| 2. | Using local government subsidy management information, etc. learned in the course of business for any purpose other than intended or providing or leaking it to a third party; |
| 3. | Altering or damaging the integrated local government subsidy management network without justifiable authority; |
| 4. | Processing local government subsidy management information, etc. without justifiable authority or processing local government subsidy management information, etc. in excess of allowed authority. |
| (3) | Notwithstanding paragraph (2)2, the Minister of the Interior and Safety may provide local government subsidy management information, etc. to a third party to use it for any purpose other than intended in any of the following cases; provided, that in the case of subparagraph 1, approval from the Minister of the Interior and Safety shall be obtained for its use for any purpose other than intended: |
| 1. | Where separate consent for the provision of information has been obtained from an information subject under subparagraph 3 of Article 2 of the Personal Information Protection Act; |
| 2. | Where local government subsidy management information, etc. is requested in accordance with a court's submission order or a warrant issued by a judge; |
| 3. | Where there are special provisions in other Acts regarding the provision and use of local government subsidy management information, etc. |
[This Article Added on Apr. 11, 2023]
| Article 28-5 (Destruction of local government subsidy management information) |
| (1) | Where the Minister of the Interior and Safety and the head of a local government possess local government subsidy management information, they shall immediately destroy the relevant local government subsidy management information when 5 years have passed from the date of possession; provided, data or information prescribed by Presidential Decree as cases where it is deemed necessary to continue possession to prevent redundant or fraudulent receipt of local government subsidies may be possessed for a period exceeding 5 years until the deadline for which such necessity is recognized. |
| (2) | Where the Minister of the Interior and Safety and the head of a local government possess data or information under Article 28(4), 28-2(1), or 28-3(1), they shall destroy the data or information immediately after the purpose of possessing the relevant data or information is achieved; provided, in cases where it is necessary to preserve it under other statutes and regulations or as evidence for litigation, investigation, audit, etc., it may be continuously possessed as prescribed by Presidential Decree. |
[This Article Added on Apr. 11, 2023]
| (1) | Where the head of a local government deems it necessary to promote the proper execution of the budget for local government subsidies, he or she may require a local government subsidized operator to make a report, or have his or her subordinate public officials inspect books, documents, or other property at its office or place of business or question relevant persons. |
| (2) | A public official who conducts an inspection or questioning under paragraph (1) shall carry an identification showing his or her authority and present it to the relevant persons. |
| Article 30 (Public announcement of lists) |
| (1) | The head of a local government shall publicly announce the list of persons who fall under any of the following subparagraphs, their violations, the details of dispositions, and other matters related to dispositions prescribed by Presidential Decree on the website of the relevant local government by March 31 each year: <Amended on Apr. 11, 2023> |
| 1. | A local government subsidized operator who has received a corrective order or a measure to reduce local government subsidies under the former part of Article 20-2(2) at least 3 times; |
| 2. | A local government subsidized operator who falls under any of the subparagraphs of Article 32(1); |
| 3. | A local government subsidy recipient who falls under any of the subparagraphs of Article 32(3). |
| (2) | Notwithstanding paragraph (1), the head of a local government may refrain from making the disclosure under paragraph (1) if there are grounds prescribed by Presidential Decree, such as where the disclosure is ineffective due to the death of the person subject to disclosure or where the disclosure is inappropriate. |
| (3) | Before making a public announcement under paragraph (1), the head of a local government shall notify the person subject to the public announcement of such fact and provide him or her with an opportunity to submit explanatory data or present opinions. |
| (4) | Where an objection under Article 36-2 or any other procedure for appeal against the revocation of a decision to grant local government subsidies, an order to return local government subsidies, etc., is in progress, the head of a local government shall make a public announcement under paragraph (1) after such procedure for appeal is completed. <Amended on Apr. 11, 2023> |
| (5) | Matters necessary for the methods, procedures, etc., for the public announcement of lists, other than those prescribed in paragraphs (1) through (4), shall be determined by Presidential Decree. |
CHAPTER VI RETURN OF AND SANCTIONS FOR LOCAL GOVERNMENT SUBSIDIES
| Article 31 (Return of local government subsidies) |
| (1) | Where the head of a local government revokes a decision to grant local government subsidies and the local government subsidies for the revoked part of the local government subsidized project have already been granted, he or she shall specify a period and order the return of the local government subsidies corresponding to the revoked part and the interest generated therefrom. |
| (2) | Where the head of a local government has finalized the amount of local government subsidies to be granted to a local government subsidized operator under Article 19(2), and the sum of the local government subsidies already granted and the interest generated therefrom exceeds the finalized amount, he or she shall specify a period and order the return of the excess amount; provided, that where the subsidized operator is the head of a local government, this shall not apply to interest generated due to unavoidable grounds prescribed by Presidential Decree after receiving the local government subsidies. |
| Article 32 (Exclusion from performance of local government subsidized projects) |
| (1) | Where a local government subsidized operator falls under any of the following subparagraphs, the head of a local government shall exclude the relevant local government subsidized operator from those subject to the performance of local government subsidized projects under his or her jurisdiction or restrict the grant of local government subsidies for a period not exceeding 5 years, as prescribed by Presidential Decree: <Amended on Apr. 11, 2023> |
| 1. | Where a decision to grant local government subsidies has been revoked in whole or in part at least 1 time under Article 12 on the ground that the local government subsidized operator received local government subsidies by fraud or other improper means; |
| 2. | Where a decision to grant local government subsidies has been revoked in whole or in part at least 2 times under Article 12 on the ground that the local government subsidized operator used local government subsidies for any purpose other than intended; |
| 3. | Where a decision to grant local government subsidies has been revoked in whole or in part at least 3 times under Article 12 on the ground that the local government subsidized operator violated statutes and regulations, municipal ordinances, the details of a decision to grant local government subsidies, or a disposition made by the head of a local government under statutes and regulations. |
| (2) | Notwithstanding paragraph (1), where a local government subsidized project performed by a local government subsidized operator is a project prescribed by Presidential Decree, such as a welfare project or a State-subsidized project, and is difficult to replace with another local government subsidized operator, the head of a local government may choose not to exclude the operator from those subject to the performance of local government subsidized projects or not to restrict the grant of local government subsidies after undergoing deliberation by the Local Government Subsidy Management Committee. <Added on Apr. 11, 2023> |
| (3) | Where a local government subsidy recipient falls under any of the following subparagraphs, the head of a local government shall restrict the payment of local government subsidies to the relevant local government subsidy recipient for a period not exceeding 5 years, as prescribed by Presidential Decree: <Amended on Apr. 11, 2023> |
| 1. | Where an order to return all or part of local government subsidies has been received at least 1 time under Article 34 on the ground that the local government subsidy recipient received local government subsidies by fraud or other improper means; |
| 2. | Where an order to return all or part of local government subsidies has been received at least 2 times under Article 34 on the ground that the local government subsidy recipient used local government subsidies for any purpose other than the purpose of payment; |
| 3. | Where an order to return all or part of local government subsidies has been received at least 3 times under Article 34 on the ground that the local government subsidy recipient received local government subsidies without meeting the requirements for receiving them. |
| (4) | Notwithstanding paragraph (3), the head of a local government may choose not to restrict the payment of local government subsidies where the local government subsidies received by a local government subsidy recipient fall under any of the following subparagraphs: <Added on Apr. 11, 2023> |
| 1. | Benefits under Article 7 of the National Basic Living Security Act; |
| 2. | Disability allowances under Article 49 of the Act on Welfare of Persons with Disabilities; |
| 3. | Basic pension under the Basic Pension Act; |
| 4. | Welfare benefits under Article 12 of the Single-Parent Family Support Act; |
| 5. | Other cases prescribed by Presidential Decree where it is deemed inappropriate to restrict local government subsidies paid to a local government subsidy recipient in consideration of the nature, function, etc. of the local government subsidies. |
| (5) | The head of a local government shall exclude any person whose conviction has become final for acquiring property interests by fraud or other improper means in the process of bidding for, being awarded, concluding, or performing a contract related to a local government subsidized project (hereinafter referred to as "fraudulent contractor") from those subject to the performance of local government subsidized projects under his or her jurisdiction for a period not exceeding 5 years, as prescribed by Presidential Decree. <Added on Apr. 11, 2023> |
| (6) | Where the head of a local government excludes a local government subsidized operator, etc. or a fraudulent contractor from those subject to the performance of local government subsidized projects or restricts the receipt of local government subsidies under paragraphs (1) through (5), he or she shall immediately notify other heads of local governments of such fact. <Amended on Apr. 11, 2023> |
| (7) | Other heads of local governments who receive notification under paragraph (6) shall exclude the relevant local government subsidized operator, etc. from those subject to the performance of local government subsidized projects under their jurisdiction or restrict the receipt of local government subsidies. In such cases, paragraphs (1) through (5) shall apply mutatis mutandis to the criteria for exclusion from performance and exceptions thereto, and the restriction on the receipt of local government subsidies and exceptions thereto. <Added on Apr. 11, 2023> |
| (8) | Matters necessary for the exclusion from performance of local government subsidized projects and restriction on the receipt of local government subsidies, other than those prescribed in paragraphs (1) through (7), shall be determined by Presidential Decree. <Amended on Apr. 11, 2023> |
| Article 33 (Temporary suspension of grant of other local government subsidies) |
Where a local government subsidized operator fails to return local government subsidies and interest after receiving an order to return them under Article 31(1) or (2), and there are other local government subsidies to be granted to the local government subsidized operator for the same type of office or project, the head of a local government may temporarily suspend the grant thereof or offset the local government subsidies against the amount not returned by the local government subsidized operator.
| Article 34 (Return of local government subsidies by local government subsidy recipients) |
| (1) | Where a local government subsidy recipient falls under any of the following subparagraphs, the head of a local government and a local government subsidized operator shall specify a period and order the return of all or part of the local government subsidies paid: |
| 1. | Where the recipient received local government subsidies by fraud or other improper means; |
| 2. | Where the recipient used local government subsidies for any purpose other than the purpose of payment; |
| 3. | Where it is revealed that the recipient failed to meet the requirements for receiving local government subsidies. |
| (2) | Where a local government subsidized operator orders the return of local government subsidies under paragraph (1), it shall notify the head of the local government having jurisdiction over the relevant local government subsidized project of such fact as prescribed by Presidential Decree. |
| (3) | Where a local government subsidy recipient falls under any of the subparagraphs of paragraph (1), a local government subsidized operator may choose not to pay local government subsidies for a period determined by the head of a local government. |
| (4) | Where a local government subsidy recipient falls under any of the subparagraphs of paragraph (1), the head of a local government may order a local government subsidized operator to restrict the payment of local government subsidies to the local government subsidy recipient for a certain period. |
| Article 35 (Imposition and collection of sanction surcharges and additional charges) |
| (1) | Where a local government subsidized operator, etc. falls under any of the following subparagraphs, the head of a local government shall impose and collect a sanction surcharge on the local government subsidized operator, etc. within the extent of 5 times the total amount of local government subsidies to be returned, as prescribed by Presidential Decree; provided, in cases where there are grounds prescribed by Presidential Decree, such as where a local government subsidized operator, etc. has been imposed a fine, minor fine, confiscation, additional collection, surcharge, or administrative fine under this Act or other Acts on the ground of fraudulent receipt of local government subsidies before or after the imposition of a sanction surcharge, the sanction surcharge may be exempted, reduced, changed, or revoked: <Amended on Apr. 11, 2023> |
| 1. | Where an order to return local government subsidies has been issued under Article 31(1) (limited to cases where a decision to grant local government subsidies is revoked under Article 12); |
| 2. | Where a local government subsidized operator has ordered a local government subsidy recipient to return local government subsidies under Article 34. |
| (2) | Where the head of a local government imposes a sanction surcharge on the grounds under paragraph (1)2, he or she shall impose the sanction surcharge after investigating and verifying the appropriateness of the return order issued by the local government subsidized operator under Article 34. |
| (3) | Notwithstanding paragraph (1), where local government subsidies fall under any of the following subparagraphs, sanction surcharges may not be imposed: |
| 1. | Benefits under Article 7 of the National Basic Living Security Act; |
| 2. | Disability allowances under Article 49 of the Act on Welfare of Persons with Disabilities; |
| 3. | Basic pension under the Basic Pension Act; |
| 4. | Welfare benefits under Article 12 of the Single-Parent Family Support Act; |
| 5. | Other cases prescribed by Presidential Decree where the practical benefit of imposing and collecting sanction surcharges is not significant. |
| (4) | Where a person who is liable to pay a sanction surcharge under paragraph (1) fails to pay it within the payment deadline, the head of a local government may collect an additional charge within the extent not exceeding 5/100 of the delinquent amount for the period from the day following the payment deadline to the day before the date of payment. |
| (5) | Matters necessary for the method of calculating sanction surcharges and additional charges, procedures for imposition, etc., other than those prescribed in paragraphs (1) through (4), shall be determined by Presidential Decree. |
| Article 36 (Compulsory collection) |
| (1) | The head of a local government may collect return amounts, sanction surcharges, and additional charges in accordance with the example of dispositions for arrears of local taxes or in accordance with the Act on the Collection of Local Administrative Penalty Charges, classified as follows: |
| 1. | Where a local government subsidized operator fails to pay the return amount under Article 21 or 31 within the deadline; |
| 2. | Where a local government subsidy recipient fails to pay the return amount under Article 34 within the deadline; |
| 3. | Where a local government subsidized operator, etc. fails to pay the sanction surcharge or additional charge under Article 35 within the deadline. |
| (2) | The collection of return amounts, sanction surcharges, and additional charges under paragraph (1) shall take precedence over other public charges or other claims, except for national and local taxes. |
CHAPTER VII SUPPLEMENTARY PROVISIONS
| Article 36-2 (Filing of objections) |
| (1) | Where a local government subsidized operator has an objection to a decision to grant local government subsidies, conditions for the grant, revocation of a decision to grant, an order to return or reduce local government subsidies, exclusion from performance of local government subsidized projects, restriction on the receipt of local government subsidies, imposition of sanction surcharges, or any other disposition made by the head of a local government concerning the grant of local government subsidies, the operator may file an objection in writing with the head of the local government within 20 days from the date on which the notification or disposition is received. |
| (2) | Where a local government subsidy recipient has an objection to an order to return or reduce local government subsidies, exclusion from performance of local government subsidized projects, restriction on the receipt of local government subsidies, imposition of sanction surcharges, or any other disposition made by the head of a local government concerning the grant of local government subsidies, the recipient may file an objection in writing with the head of the local government within 20 days from the date on which the notification or disposition is received. |
| (3) | Upon receipt of an objection under paragraphs (1) and (2), the head of a local government shall take necessary measures after hearing opinions from relevant persons and notify the objector of such fact. In such cases, if an objector concerning the details of a decision to grant fails to express his or her intent of acceptance within 20 days from the date on which he or she is notified of the fact, the application for the grant of the relevant local government subsidies shall be deemed withdrawn. |
[This Article Added on Apr. 11, 2023]
| Article 36-3 (Payment of rewards for reporting) |
| (1) | Within the budget, the head of a local government may pay a reward to a person who reports or denounces any of the following persons to a relevant administrative agency or investigative agency; provided, no reward shall be paid where a public official makes a report in connection with his or her duties: |
| 1. | A local government subsidized operator who falls under any of the subparagraphs of Article 12(1); |
| 2. | A local government subsidy recipient who falls under any of the subparagraphs of Article 34(1). |
| (2) | Matters necessary for the criteria, procedures, etc. for the payment of rewards under paragraph (1) shall be determined by Presidential Decree. |
[This Article Added on Apr. 11, 2023]
| Article 36-4 (Establishment of online service systems) |
The Minister of the Interior and Safety may establish and operate online service systems where necessary to disclose or provide data or information on local government subsidies and local government subsidized projects to the general public.
[This Article Added on Apr. 11, 2023]
| Article 36-5 (Entrustment of business) |
The Minister of the Interior and Safety and the head of a local government may entrust the following business to an agency prescribed by Presidential Decree:
| 1. | Operation of the integrated local government subsidy management network; |
| 2. | Processing of data or information under the subparagraphs of Article 28-4(1); |
| 3. | Operation of online service systems under Article 36-4. |
[This Article Added on Apr. 11, 2023]
| Article 36-6 (Deeming as public officials in application of penalty provisions) |
Persons who are not public officials among the executives and employees of an agency engaged in business entrusted under Article 36-5 shall be deemed public officials in applying Articles 129 through 132 of the Criminal Act.
[This Article Added on Apr. 11, 2023]
CHAPTER VIII PENALTY PROVISIONS
| Article 37 (Penalty provisions) |
Any person who falls under any of the following subparagraphs shall be punished by imprisonment with labor for not more than 10 years or by a fine not exceeding 100 million won:
| 1. | Any person who falls under any of the following subparagraphs shall be punished by imprisonment with labor for not more than 10 years or by a fine not exceeding 100 million won: |
| 2. | A person who violates Article 28-4(2)1. |
[This Article Wholly Amended on Apr. 11, 2023]
| Article 38 (Penalty provisions) |
Any person who falls under any of the following subparagraphs shall be punished by imprisonment with labor for not more than 5 years or by a fine not exceeding 50 million won: <Amended on Apr. 11, 2023>
| 1. | A person who uses local government subsidies for any purpose other than intended in violation of Article 13; |
| 2. | A person who performs a prohibited act with respect to significant property without approval from the head of a local government in violation of Article 21(3); |
| 3. | A person who violates any of the provisions of Article 28-4(2)2 through 4. |
| Article 39 (Penalty provisions) |
| (1) | Any person who violates Article 14 or 15 shall be punished by imprisonment with labor for not more than 2 years or by a fine not exceeding 20 million won. |
| (2) | Any person who falls under any of the following subparagraphs shall be punished by imprisonment with labor for not more than 1 year or by a fine not exceeding 10 million won: |
| 1. | A person who fails to preserve relevant data in violation of Article 16(3); |
| 2. | A person who violates a suspension order under Article 16(5); |
| 3. | A person who makes a false report in violation of Article 17 or 29(1). |
| Article 40 (Joint penalty provisions) |
Where the representative of a corporation or an agent, employee, or other servant of a corporation or an individual commits a violation falling under any of the provisions of Articles 37 through 39 in connection with the business of the corporation or individual, the corporation or individual shall be punished by a fine prescribed in the relevant Article, in addition to the punishment of the offender; provided, that this shall not apply where the corporation or individual has not been negligent in exercising due care and supervision over the relevant business to prevent such violation.
ADDENDA <Act No. 17892, Jan. 12, 2021>
Article 1 (Enforcement date)
This Act shall enter into force six months after the date of its promulgation.
Article 2 (Transitional measures concerning Local Government Subsidy Review Committees)
| (1) | The Local Government Subsidy Review Committee under Article 32-3 of the former Local Finance Act as of the time this Act enters into force shall be deemed the Local Government Subsidy Management Committee under this Act. |
| (2) | A member of the Local Government Subsidy Review Committee appointed or commissioned under Article 32-3 of the former Local Finance Act as of the time this Act enters into force shall be deemed to have been appointed or commissioned as a member of the Local Government Subsidy Management Committee under this Act. |
Article 3 Omitted.
Article 4 (Relation with other Acts and subordinate statutes)
Where other statutes and regulations cite the former Local Finance Act or the provisions thereof with respect to the management and operation of local government subsidies as of the time this Act enters into force, this Act or the corresponding provisions of this Act shall be deemed to have been cited in lieu of the former Local Finance Act or the provisions thereof.
ADDENDA <Act No. 19332, Apr. 11, 2023>
Article 1 (Enforcement date)
This Act shall enter into force 6 months after the date of its promulgation; provided, that the amended provisions of Articles 10-2, 28, 28-2 through 28-5, 36-4 through 36-6, 37, and subparagraph 3 of Article 38 shall enter into force on the date of its promulgation.
Article 2 (Applicability to notification of budget bills including local government subsidies)
The amended provisions of Article 6-2 shall apply from the budget bill submitted to a local council for the fiscal year following the fiscal year in which the enforcement date of this Act falls.
Article 3 (Applicability to reduction of local government subsidies due to delay in submission of performance reports)
The amended provisions of Article 17(3) shall apply from the first case where the deadline for submission of a performance report under paragraph (1) of the same Article expires after this Act enters into force.
Article 4 (Applicability to public disclosure of information by local government subsidized operators)
The amended provisions of Article 20-2 shall apply from the fiscal year following the fiscal year in which the enforcement date of this Act falls.
Article 5 (Applicability to period of exclusion from performance of local government subsidized projects by local government subsidized operators)
| (1) | The amended provisions of the part other than the subparagraphs of Article 32(1) and paragraph (2) of the same Article shall also apply to cases where a local government subsidized operator falls under any of the subparagraphs of Article 32(1) before this Act enters into force and the relevant local government subsidized operator must be excluded from the performance of local government subsidized projects or the grant of local government subsidies must be restricted after this Act enters into force. |
| (2) | The amended provisions of the part other than the subparagraphs of Article 32(3) and paragraph (4) of the same Article shall also apply to cases where a local government subsidy recipient falls under any of the subparagraphs of Article 32(3) before this Act enters into force and the payment of local government subsidies must be restricted after this Act enters into force. |
| (3) | The amended provisions of Article 32(5) shall apply from the first case where a conviction becomes final for a criminal act committed after this Act enters into force. |
| (4) | The amended provisions of Article 32(7) shall also apply to cases where a local government subsidized operator must be excluded from the performance of local government subsidized projects or the grant of local government subsidies must be restricted after this Act enters into force following a notification from the head of another local government under the former part of Article 32(6) before this Act enters into force. |
Article 6 (Transitional measures concerning verification of performance reports)
Where the grounds for submitting a performance report under the subparagraphs of Article 17(1) occur before this Act enters into force and the deadline for submitting the performance report under the part other than the subparagraphs of Article 17(1) expires after this Act enters into force, the former Article 17(2) shall apply notwithstanding the amended provisions of the proviso of Article 17(2).