Statutes of the Republic of Korea

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Article 1 (Purpose)

The purpose of this Act is to establish a system by which compensation for the death or injury of any person and the destruction or damage of any property, both of which are caused by the operation of any automobile, is guaranteed in order to protect victims and to promote the sound development of transportation by automobiles.

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Article 2 (Definitions)

The definitions of terms used in this Act shall be as follows: <Amended by Act No. 9450, Feb. 6, 2009>

1.	The term "motor vehicle" means any motor vehicle to which the Motor Vehicle Management Act applies, or any construction machinery to which the Construction Machinery Management Act applies, as prescribed by Presidential Decree;

2.	The term "operation" means to use or manage motor vehicles according to their means of use, regardless of whether they transport persons or carry items;

3.	The term "motor vehicle owner" means a person who owns a motor vehicle or a person entitled to the use of a motor vehicle, who operates the motor vehicle for personal use;

4.	The term "driver" means a person who serves as a driver, or as an assistant driver, of a motor vehicle for another person;

5.

The term "liability insurance" means a type of insurance by which any motor vehicle owner and any person who runs an insurance business after obtaining a license under the Insurance Business Act (hereinafter "insurer") enter into an agreement for the indemnification of the liability for damages from the death or injury of another person caused by the operation of any motor vehicle under this Act;

6.

The term "liability mutual aid" means a type of mutual aid by which a motor vehicle owner for business purpose and a person who runs a mutual aid business under the Passenger Transport Service Act, the Trucking Transport Business Act, and the Construction Machinery Management Act (hereinafter "person operating a mutual aid business") enter into an agreement for the indemnification for damage from the death or injury of another person caused by the operation of any motor vehicle under this Act;

7.

The term "medical fees covered by motor vehicle insurance" means the amount of expenses incurred in the medical treatment provided by a medical institution prescribed by the Medical Service Act (hereinafter "medical institution") to a patient who suffers an accident caused by the operation of a motor vehicle (hereinafter "motor vehicle accident patient"),which applies under any of the following categories:

(a)	Where it is reimbursed with the insurance payouts (including mutual aid money; hereinafter "insurance payouts, etc.") paid by an insurer (including a person operating a mutual aid business; hereinafter the "insurer, etc.");

(b)	Where it is reimbursed with the compensation paid from the business of securing motor vehicle accident compensation under Article 30;

(c)	Where a motor vehicle accident patient pays medical fees incurred from the relevant traffic accident to a medical institution after concluding compensation for a motor vehicle accident patient (including the damages under Article 30).

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Article 3 (Liability for Damage Caused by Automobiles)

In cases where any person who operates an automobile for personal use has killed or injured another person by such operation, he or she shall be liable to compensate the damages therefrom: Provided, That the same shall not be applicable to cases falling under any of the following subparagraphs:

1.

In cases of the death or injury of any person other than a passenger, when it has been proven that the person who has operated the automobile and the driver thereof were not negligent in its operation, that a victim or a third party, other than the person who has operated the automobile and the driver thereof, commits an intentional or negligent act, and that there was no defect in the structure or no trouble in the function of the automobile; and

2.	In cases of the death or injury of a passenger, when the passenger has died or been injured due to his or her intentional act or suicidal act.

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Article 4 (Application of Civil Act)

Except as otherwise prescribed by Article 3, the provisions of the Civil Act shall apply to the liability for damages caused by a person who operates an automobile for personal use.

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Article 5 (Purchase of Mandatory Insurance Policy, etc.)

(1)

Any automobile owner shall purchase a liability insurance policy or enter into a liability mutual aid agreement (hereinafter "liability insurance policy, etc.") which covers an amount prescribed by Presidential Decree that shall be paid to a third person who has died or been injured due to the operation of the automobile (referring to a person who has the right to receive indemnification for damage in cases of the death of a victim; hereinafter the same shall apply).

(2)

Any automobile owner shall, in addition to the purchase of a liability insurance policy, etc., purchase an insurance policy under the Insurance Business Act or enter into a mutual aid agreement under the Passenger Transport Service Act, the Trucking Transport Business Act and the Construction Machinery Management Act in order to assume the liability for paying an amount prescribed by Presidential Decree to a third person whose property is destroyed or damaged due to the operation of the automobile.

(3)

Any person falling under any of the following subparagraphs shall, in addition to the purchase of a liability insurance policy, etc., purchase an insurance policy under the Insurance Business Act or enter into a mutual aid agreement under the Passenger Transport Service Act, the Trucking Transport Business Act or the Construction Machinery Management Act in order to indemnify the liability for paying an amount prescribed by Presidential Decree that exceeds the upper limit on the compensation covered by liability insurance, etc. to a third person who has died or been injured due to the operation of the automobile:

1.	Passenger transport service provider who has obtained a licence or has completed registration in accordance with Article 4 (1) of the Passenger Transport Service Act;

2.	Automobile rental business operator who has completed registration in accordance with Article 28 (1) of the Passenger Transport Service Act;

3.	Trucking transport business operator and trucking transport franchiser who have obtained a license in accordance with Articles 3 and 29 of the Trucking Transport Business Act; or

4.	Construction machinery rental business operator who has completed registration in accordance with Article 21 (1) of the Construction Machinery Management Act.

(4)	The provisions of paragraphs (1) and (2) shall not apply to automobiles prescribed by Presidential Decree and automobiles operated only in places other than on a road (which means the road provided for in subparagraph 1 of Article 2 of the Road Traffic Act; hereinafter the same shall apply).

(5)	Liability insurance policies, etc. under paragraph (1) and insurance policies or mutual aid agreements under paragraphs (2) and (3) shall be effected on a separate automobile basis.

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Article 6 (Measures, etc. toward Non-Policyholder of Mandatory Insurance)

(1)

Any insurer, etc. shall notify a motor vehicle owner who has entered into a contract for insurance or mutual aid which the owner is obligated to purchase or enter into under Article 5 (1) through (3) (hereinafter "mandatory insurance") of the fact that the contract expires during the period from 75 days to 30 days, and that the period from 30 days to 10 days, before the expiration date of such contract, respectively: Provided, That where the insurance period of the contract is less than one month or the motor vehicle owner has renewed the contract with the insurer, etc. or the insurer, etc. has come to know that the motor vehicle owner has entered into a new contract with another insurer, etc., notification may be omitted. <Amended by Act No. 9450, Feb. 6, 2009>

(2)

In cases where a person who is obligated to purchase a mandatory insurance policy falls under any of the following subparagraphs, an insurer, etc. shall notify such fact to the governor of the Special Self-Governing Province or the head of a Si/Gun/Gu (referring to the head of an autonomous Gu; hereafter "the head of Si/Gun/Gu) within the period stipulated by Ministerial Decree of Land, Transport and Maritime Affairs:

1.	Where the person has entered into a contract for mandatory insurance with the said insurer, etc.;

2.	Where the person has cancelled the contract for mandatory insurance that has been entered into with the said insurer, etc. before the expiration date of such contract;

3.	Where the person who has entered into a contract for mandatory insurance with the said insurer, etc. does renew the contract for mandatory insurance with the said insurer, etc. after the expiration date of such contract.

(3)

The head of Si/Gun/Gu shall, upon receipt of notification under paragraph (2), order the motor vehicle owner who has failed to purchase a mandatory insurance policy to purchase a mandatory insurance policy and present documents verifying such purchase, fixing a period of 10 to 15 days without delay.

(4)

The head of Si/Gun/Gu may keep in custody the registration number plate of a motor vehicle (including the registration number plate of a two-wheel motor vehicle and the registration number plate of construction machinery; hereinafter the same shall apply), which is not covered by mandatory insurance.

(5)

The head of Si/Gun/Gu may, when necessary, request the head of a police station to cooperate in keeping in custody the registration number plate of a motor vehicle which is not covered by mandatory insurance pursuant to paragraph (4) In such cases, the head of the police station so requested shall comply with such request unless there exists any justifiable reason to the contrary.

(6)

In cases where the head of Si/Gun/Gu has kept in custody the registration number plate of a motor vehicle which is not covered by mandatory insurance pursuant to paragraph (4), he or she shall notify such fact to the Special Metropolitan City Mayor, a Metropolitan City Mayor, a Do governor or the Special Self-Governing Province Governor (referring to the head of Si/Gun/Gu where the duties to register motor vehicles have been delegated to the head of Si/Gun/Gu) who takes charge of registering such motor vehicle under the Motor Vehicle Management Act or the Construction Machinery Management Act, and the motor vehicle owner.

(7)

Matters necessary for the methods of and procedures for notification pursuant to paragraphs (1) and (2), the methods of, procedures for, etc. keeping in custody the registration number plates of motor vehicles pursuant to paragraph (4), and the methods of, procedures for, etc. ceasing such custody shall be prescribed by Ministerial Decree of Land, Transport and Maritime Affairs.

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Article 7 (Organization and Operation, etc. of Computer Networks for Management of Mandatory Insurance Underwriting)

(1)

The Minister of Land, Transport and Maritime Affairs may organize and operate the computer networks for the management of mandatory insurance underwriting (hereinafter referred to as "computer networks for underwriting management") which are connected to the information-processing system provided for in Article 69 (1) of the Motor Vehicle Management Act and the information-processing system managed and operated by institutions in charge of calculating insurance premium rates (hereinafter "institutions in charge of calculating insurance premium rates") provided for in Article 176 of the Insurance Business Act in order to efficiently manage owners of motor vehicles which are not covered by mandatory insurance.

(2)

The Minister of Land, Transport and Maritime Affairs may request the heads of local governments, insurers and insurance-related organizations to submit such information prescribed by Presidential Decree as may be necessary to organize and operate the computer networks for underwriting management. In such cases, persons who are requested to submit such information shall comply with such requests unless there exists any justifiable reason to the contrary. <Amended by Act No. 9450, Feb. 6, 2009>

(3)	Deleted. <by Act No. 9450, Feb. 6, 2009>

(4)	Matters necessary for the computer networks for underwriting management shall be prescribed by Presidential Decree.

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Article 8 (Restrictions on Operation)

No automobile which is not covered by mandatory insurance shall be operated on a road: Provided, That this shall not apply to automobiles prescribed by Presidential Decree pursuant to Article 5 (4).

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Article 9 (Request for Issuance of Mandatory Insurance Certificate)

Any person who has purchased a mandatory insurance policy and any person who has been insured under the relevant policy (hereinafter "policyholder, etc.") and other persons interested may, if necessary to verify their rights and duties or details of such purchase, request the insurer, etc. to issue the mandatory insurance certificate verifying such purchase.

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Article 10 (Claims for Insurance, etc.)

(1)

In cases where a liability for damage has been incurred by a policyholder, etc. pursuant to Article 3, the relevant victim may, as prescribed by Presidential Decree, file a claim for insurance payouts with the insurer, etc. so that such payouts are directly paid to him or her in accordance with Article 724 (2) of the Commercial Act. In such cases, the victim may request that the insurer, etc. pay the amount equivalent to medical fees covered by car insurance directly to the medical institution that has provided him or her with medical treatment.

(2)	In cases where a policyholder, etc. has paid damages to the relevant victim before the insurer, etc. pays insurance payouts, etc., the policyholder, etc. may request the insurer, etc. to reimburse the sum that he or she has paid to the victim to the upper limit on insurance payouts, etc.

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Article 11 (Advance Payment to Victim)

(1)

In cases where a policyholder, etc. has caused the death or injury of anotherperson due to the operation of a motor vehicle, the relevant victim may request an insurer, etc. to pay the total amount of medical fees covered by motor vehicle insurance, as prescribed by Presidential Decree, and the amount prescribed by Presidential Decree as advance payments of the insurance payouts provided for in Article 10.

(2)	Upon receipt of the request under paragraph (1), the insurer, etc. shall pay in advance the amount requested within the period set by Ministerial Decree of Land, Transport and Maritime Affairs.

(3)	In cases where the advance payment made under paragraph (2) exceeds the insurance payouts, the insurer, etc. may demand the person who has received the advance payment to refund the excess amount.

(4)	In cases where it is found that the policyholder, etc. has no liability for damages after advance payment has been made under paragraph (2), the insurer, etc. may demand the person who has received such advance payment to refund it.

(5)

In cases where the insurer, etc. has not received the refund of any advance payment even though it demands the refund in accordance with paragraphs (3) and (4), and meets the requirements prescribed by Presidential Decree, including financial resources from contributions, such insurer, etc. may file a claim for compensation with the Government of the unrefunded advance payment. <Amended by Act No. 9450, Feb. 6, 2009>

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Article 12 (Claim for and Payment of Medical Fees Covered by Motor Vehicle Insurance)

(1)

In cases where an insurer, etc. has known the occurrence of a motor vehicle accident through a claim for damage by either a policyholder, etc. or a victim of such motor vehicle accident under the latter part of Article 10 (1), or for other reasons, the insurer, etc. shall, without delay, notify the medical institution treating such motor vehicle accident patient as to whether medical fees covered by motor vehicle insurance are paid for the relavant treatment and as to the upper limit on such payment. <Amended by Act No. 9450, Feb. 6, 2009>

(2)

In cases where the medical institution has been notified as to whether the insurer, etc. pays the medical fees covered by motor vehicle insurance and as to the upper limit on the payment under paragraph (1), it may file a claim for such fees with the insurer, etc. according to the criteria publicly notified by the Minister of Land, Transport and Maritime Affairs as provided for in Article 15.

(3)	In cases where the medical institution files a claim for the medical fees covered by motor vehicle insurance with the insurer, etc. under paragraph (2), such claim shall be based upon details in medical records as referred to in Article 22 of the Medical Service Act.

(4)

In cases where the insurer, etc. has received the claim for medical fees covered by motor vehicle insurance from the medical institution under paragraph (2), it shall pay the amount claimed within 30 days: Provided, That this shall not apply in cases where a petition for review is submitted under Article 19 (1).

(5)

In cases where the medical institution can file a claim for medical fees covered by motor vehicle insurance with the insurer, etc. under paragraph (2), it shall not claim the motor vehicle accident patient (including his or her guardian) to pay such medical fees: Provided, That where any of the following grounds arises, the relevant medical fees may be claimed:

1.	When the insurer, etc. has notified that it intends not to pay such medical fees or cancelled the payment of such medical fees;

2.	When the medical institution has requested the insurer, etc. to pay the expenses which are not coverable by the indemnity for damages;

3.	When the medical institution has requested the insurer, etc. to pay medical fees in excess of the upper limit on payment as notified by such insurer, etc. under paragraph (1);

4.	When the victim has filed a claim for medical fees covered by motor vehicle insurance with the insurer, etc. so that such medical fees are directly paid to him or her under Article 10 (1) or 11 (1);

5.	When other grounds prescribed by Ministerial Decree of Land, Transport and Maritime Affairs arise.

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Article 13 (Management, etc. of Inpatients)

(1)

The medical institutions that are entitled to file a claim for medical fees covered by car insurance with the insurer, etc. pursuant to Article 12 (2) shall keep and retain records of outings and overnight lodgings by patients admitted into such medical institutions due to automobile accident (hereinafter "inpatient").

(2)	In cases where an inpatient intends to go out or stay out overnight, he or she shall obtain permission from the medical institution.

(3)

The insurer, etc. which has notified the medical institution as to whether it intends to pay medical fees covered by car insurance and as to the upper limit on such payment pursuant to Article 12 (1) may request such medical institution to offer records on outings and overnight lodgings of inpatients for the inspection. In such cases, the medical institution shall comply with such request unless there exist any justifiable grounds to the contrary.

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Article 13-2 (Instruction of Discharging and Transferring of Motor Vehicle Accident Patient)

(1)

A medical institution may instruct a motor vehicle accident patient to discharge himself or herself, if he or she needs not to be hospitalized any more thanks to his or her improvement of conditions after undergoing medical care such as an operation, medical treatments, etc. and to transfer to another medical institution, if it falls under the cases prescribed by Presidential Decree, including cases where it is necessary for him or her to receive medical treatments at his or her base of living. In such cases, the medical institution shall notify the relevant reason and date without delay to the relevant patient and the relevant insurer, etc. that has notified its intention to pay for the medical fees covered by motor vehicle insurance under Article 12 (1).

(2)

Where a medical institution has instructed a motor vehicle accident patient to transfer to another medical institution under paragraph (1) and receives a request from the latter medical institution or from a doctor in charge of such patient for the provision of his or her information on medical care such as access to or delivery of medical records, clinical opinions, therapy records, the former medical institution shall comply therewith without delay.

[This Article Added by Act No. 9450, Feb. 6, 2009]

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Article 14 (Inspection of Details in Medical Records)

(1)

When an insurer, etc. has received a claim for medical fees from a medical institution under Article 12 (2), the insurer, etc. may request the medical institution to offer details in medical records for the inspection. In such cases, the medical institution shall comply with such request unless there exist any justifiable grounds to the contrary.

(2)	No person who has been engaged or is engaged in insurance business shall reveal the confidential information on another person he or she has become aware of in the course of the inspection of medical records pursuant to paragraph (1).

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Article 14-2 (Application Mutatis Mutandis where Exceeding Upper Limit on Payouts of Liability Insurance Policy, etc)

In cases where a motor vehicle owner who has entered into a contract for insurance or mutual-aid compensating for damages exceeding the upper limit on payouts of liability insurance policy, etc., Articles 10 through 13, 13-2 and 14 shall also apply mutatis mutandis to the cases where the victim files a claim for medical fees covered by motor vehicle insurance, the amount of which is within the upper limit on payouts of the insurance or mutual-aid which pays for the damages to the upper limit of payouts of liability insurance policy, etc. or exceeding it.

[This Article Added by Act No. 9450, Feb. 6, 2009]

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Article 15 (Medical Fees Covered by Motor Vehicle Insurance, etc.)

(1)

The Minister of Land, Transport and Maritime Affairs may establish the Rules of Medical Fees Covered by Motor Vehicle Insurance (hereinafter the "Rules of Medical Fees Covered by Motor Vehicle Insurance") and issue public notice thereof in order to ensure appropriate medical treatment for motor vehicle accident patients and to prevent disputes over medical fees between insurers, etc. or medical institutions and motor vehicle accident patients. <Amended by Act No. 9450, Feb. 6, 2009>

(2)	The Rules of Medical Fees Covered by Motor Vehicle Insurance shall include the scope of allowable medical fees covered by motor vehicle insurance, procedure for claims and payment therefor, and other matters prescribed by Ministerial Decree of Land, Transport and Maritime Affairs.

(3)

In cases where the Minister of Land, Transport and Maritime Affairs intends to establish or modify the Rules of Medical Fees Covered by Motor Vehicle Insurance, he or she shall consider the opinion of the Dispute Settlement Committee over Medical Fees Covered by Motor Vehicle Insurance under Article 17.

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Article 16 (Surveys and Research on Repair Costs)

(1)

The Minister of Land, Transport and Maritime Affairs shall conduct surveys and research on affordable repair costs (including standard working hours and repairmen's wages, etc.) and publish findings of such surveys and research in order to prevent any dispute over repair costs between an insurer, etc. and an automobile repair shop operator.

(2)	Necessary matters concerning the scope of and procedures for surveys and research under paragraph (1) shall be prescribed by Presidential Decree.

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Article 17 (Dispute Settlement Committee over Medical Fees Covered by Car Insurance)

(1)

Insurers, etc. and medical institutions shall set up the Dispute Settlement Committee over Medical Fees Covered by Car Insurance (hereinafter the "Committee") mandated to perform the duties falling under any of the following subparagraphs by mutual agreement in order to prevent and speedily settle any dispute over medical fees covered by car insurance:

1.	Examination and mediation of any dispute over medical fees covered by car insurance;

2.	Recommendations on the adjustment of the Rules of Medical Fees Covered by Car Insurance; and

3.	Surveys and research related to duties under subparagraphs 1 and 2.

(2)	The Committee shall be composed of 18 members, including one Chairperson.

(3)	The Minister of Land, Transport and Maritime Affairs shall commission members, of whom six shall be recommended by the organization of insurers, etc., six shall be recommended by the organization of medical institutions, and six shall meet the requirements prescribed by Presidential Decree.

(4)	The Committee shall select a Chairperson from among its members.

(5)	Members of the Committee shall serve a two-year term, and may be recommissioned: Provided, That any member filling a vacancy shall serve for the remainder of his or her predecessor's term of office.

(6)	Necessary matters concerning the composition, operation, etc. of the Committee shall be prescribed by Presidential Decree.

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Article 18 (Operational Expenses)

Expenses incurred in operating the Committee shall be reimbursed by insurers, etc. and medical institutions.

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Article 19 (Petition for Review of Medical Fees Covered by Car Insurance)

(1)

When it is found that a claim for payment under the provisions of Article 12 (2) is based upon the wrongful application of the Rules of Medical Fees Covered by Car Insurance, the relevant insurer, etc. may file a petition for review on the claim in question with the Committee within 60 days after the date of such claim.

(2)

In cases where the insurer, etc. files a petition for review with the Committee under paragraph (1), it shall pay in advance the amount prescribed by Presidential Decree and later pay out the balance with interest in compliance upon the decision of the Committee. In such cases, where the amount of advance payment exceeds the amount of medical fees settled upon the decision on review by the Committee, the medical institution that has received the amount in advance shall pay back any excess amount thereof with due interest.

(3)

In cases where the insurer, etc. which has received the claim for medical fees covered by car insurance pursuant to Article 12 (2) fails to file a petition for review with the Committee within the period described in paragraph (1), it shall be deemed that the insurer, etc. has agreed on the details of the claim filed by the relevant medical institution on the date when such period expires.

(4)	No insurer, etc. shall reduce the amount claimed by the medical institution pursuant to Article 12 (2) without filing a petition for review under paragraph (1).

(5)	The interest rate as referred to in paragraph (2) shall be determined by Presidential Decree.

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Article 20 (Procedure for Review and Decisions)

(1)

In cases where any petition for review is filed under Article 19 (1), the Committee shall review and decide thereupon in accordance with the Rules of Medical Fees Covered by Car Insurance: Provided, That where the review and decision on such petition is beyond the reach of the Rules of Medical Fees Covered by Automobile Accident Insurance, the Committee may advise the relevant parties to settle the case upon the basis of conciliation.

(2)	Necessary matters concerning the procedure for review and decision by the Committee shall be determined by the Committee subject to approval from the Minister of Land, Transport and Maritime Affairs.

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Article 21 (Effect, etc. of Review and Decision)

(1)	In cases where the Committee has made a decision on the petition for review as provided for in Article 19 (1), it shall notify the petitioner thereof without delay.

(2)

If having accepted the decision by the Committee, the petitioner who has been notified under paragraph (1) shall be deemed to reach agreement on the same terms as the content of the said decision on the day of their explicit acceptance, and if neither having explicitly accepted the said decision nor having raised a lawsuit thereagainst within 30 days from the date of receipt of the notification, he or she shall be deemed to reach such agreement on the day immediately after the period of 30 days has lapsed.

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Article 22 (Authority of Committee)

The Committee may, if deemed necessary for review and decision under Article 20 (1), request insurers, etc., medical institutions, insurers' organizations or medical institutions' associations to submit necessary documents, give their opinions or file reports, or entrust the relevant experts with medical diagnosis and examination.

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Article 23 (Notification, etc. of Violation of Law)

In cases where it is found, in the process of review or in performing other duties, that the relevant parties and the persons interested have been involved in any violation of law, the Committee shall notify the relevant authorities thereof.

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Article 24 (Obligation to Conclude Contract)

(1)	In cases where an automobile owner intends to enter into a contract for insurance or mutual aid provided for in Article 5 (1) through (3), the relevant insurer, etc. shall not refuse to conclude such contract unless any ground as provided by Presidential Decree arises.

(2)

Notwithstanding paragraph (1), in cases where an automobile owner gives rise to any ground prescribed by Ministerial Decree of Land, Transport and Maritime Affairs, such as high probability of causing automobile accidents, etc., multiple insurers may jointly conclude a contract for insurance or mutual aid under Article 5 (1) through (3) with such automobile owner. In such cases, the relevant insurers shall inform the automobile owner of the procedures for conclusion of joint contract and premiums according thereto.

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Article 25 (Cancellation, etc. of Insurance Contract)

No policyholder and insurer, etc. shall cancel or terminate a contract for mandatory insurance, unless:

1.	cancellation registration for the relevant automobile is complete in accordance with Article 13 of the Automobile Management Act or Article 6 of the Construction Machinery Management Act;

2.	the status of the relevant automobile is changed to any other as referred to in Article 5 (4);

3.	the policyholder intends to cancel or terminate one of the two mandatory insurance contracts because the relevant automobile is insured under contracts with two different insurers;

4.	the relevant automobile is transferred;

5.	the policyholder verifies that the relevant automobile is unable to be continuously operated due to any natural disaster, traffic accident, fire, theft or for some other reason; or

6.	other grounds as prescribed by Ministerial Decree of Land, Transport and Maritime Affairs arise.

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Article 26 (Succession to Mandatory Insurance Contract)

(1)

In cases where an automobile covered by mandatory insurance has been transferred, the transferee shall, notwithstanding Article 726-4 of the Commercial Act, succeed to rights and duties of the transferor in respect of mandatory insurance contract for a period from the transfer date of the automobile (referring to the date when the transferee has actually acquired the automobile after the payment of purchase price) until the expiration date of the term of application for registration of automobile ownership transfer under Article 12 of the Automobile Management Act (or, if the transferee has entered into a contract for new liability insurance, etc. before the expiry of the term of application for registration of automobile ownership transfer, until the date when the said contract is entered into).

(2)	In cases of paragraph (1), the transferor may have a claim against the transferee for the refund of such amount of premium of mandatory insurance (or, in cases of a mutual aid contract, mutual aid contributions; hereinafter the same shall apply) as corresponds to the period of succession.

(3)	In cases where the transferee has refunded the transferor such an amount as corresponds to the period of his or her succession to mandatory insurance in accordance with paragraph (2), the transferee shall be exempted from the payment of the premium to the extent of the amount of his or her refund.

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Article 27 (Separate Accounting of Mandatory Insurance Business)

Any insurer, etc. shall perform accounting on the mandatory insurance business, separately from other insurance business, other mutual aid business or any other business.

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Article 28 (Prior Consultation)

In cases where the Financial Services Commission intends to modify the standards prescribed by itself under Article 127 (2) of the Insurance Business Act (limited to the standards for clauses which apply only to liability insurance from among the standards for insurance terms and conditions for motor vehicle insurance under Article 4 (1) 2 (c) of the same Act), it shall consult in advance with the Minister of Land, Transport and Maritime Affairs.

[This Article Wholly Amended by Act No. 9450, Feb. 6, 2009]

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Article 29 (Payment, etc. of Insurance Payouts, etc.)

(1)

When an insurer, etc. pays insurance payouts, etc. to a third person who has died or been injured or whose property is destroyed or damaged due to violation of the prohibition on driving while intoxicated under Article 44 (1) of the Road Traffic Act or on other grounds prescribed by Presidential Decree, the insurer, etc. may make a claim for the compensation of an amount set by Ministerial Decree of Land, Transport and Maritime Affairs against any person who is legally liable for damage compensation.

(2)

In cases where a Presidential Decree regarding the change of insurance payouts of liability insurance, etc. as provided for in Article 5 (1) is revised, such revision may, if the revised provisions become favorable to policy-holders, etc., include the following provisions in order to compel insurers, etc. to pay the revised insurance payouts, etc., regardless of the terms of contract concluded before such revision:

1.	Provisions to prescribe that insurers, etc. are compelled to regard former insurance payouts, etc. of the contract already concluded as the revised insurance payouts, etc. without renewing the former contract; and

2.	Other provisions accompanied by the revision of the insurance payouts, etc., or provisions necessary for the payment of the revised insurance payouts, etc.

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Article 30 (Guarantee of Automobile Accident Compensation Business)

(1)	In cases where any of the following situations arises, the Government shall, upon the claim of a victim, pay damages to the victim to the extent of an amount coverable by liability insurance:

1.	Where a victim has died or been injured due to an accident caused by the operation of an automobile the owner of which is unidentified; or

2.	Where a person other than a policyholder, etc. has been liable to compensate damages under Article 3: Provided, That this shall not apply to any accident caused by the operation of the automobile referred to in Article 5 (4).

(2)

The Government may render aid to the children and the dependent family members of a person killed due to the operation of an automobile or of a person handicapped with serious sequelae in order to settle the problem of hardship, such as giving up studies, etc. owing to economic difficulties, and to help the person handicapped with serious sequelae to recover.

(3)	The Government shall, upon the claim of an insurer, etc., pay damages in accordance with Article 11 (5).

(4)	Matters necessary for objects, criteria, amount, method and procedure of the Government's compensation or aid as provided for in paragraphs (1) through (3) shall be prescribed by Presidential Decree.

(5)	The Minister of Land, Transport and Maritime Affairs shall perform the duties with respect to compensation business of the Government as provided for in paragraphs (1) through (3) (hereinafter "guarantee of automobile damage compensation business").

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Article 31 (Assistance to Rehabilitation of Persons Handicapped with Sequelae)

(1)

The Minister of Land, Transport and Maritime Affairs may perform such projects (hereinafter "rehabilitation project") in the following subparagraphs as may be necessary for the rehabilitation of persons handicapped with sequelae from automobile accidents by installing medical rehabilitation facilities and occupational rehabilitation facilities (hereinafter "rehabilitation facilities") in order to assist their rehabilitation:

1.	Medical rehabilitation projects and projects incidental thereto, which are prescribed by Presidential Decree; and

2.	Occupational rehabilitation projects (including occupational rehabilitation counselling) and projects incidental thereto, which are prescribed by Presidential Decree.

(2)

Financial resources necessary for the installation of rehabilitation facilities, and for management, operation, etc. of rehabilitation facilities and rehabilitation projects pursuant to Article 32 (1) shall be the amount prescribed by Presidential Decree from among the contributions to guarantee of automobile accident compensation business pursuant to Article 37.

(3)	Buildings, land, other structures, etc. being constructed or created for the purpose of rehabilitation facilities shall belong to the State.

(4)	In cases where the Minister of Land, Transport and Maritime Affairs installs rehabilitation facilities, he or she shall hear opinions of the organization of the persons handicapped with sequelae from automobile accidents on important matters regarding the scale, design, etc. thereof.

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Article 32 (Designation as Operator of Rehabilitation Facilities)

(1)

The Minister of Land, Transport and Maritime Affairs may entrust the management and operation of rehabilitation facilities or of rehabilitation projects to a person designated by the Minister of Land, Transport and Maritime Affairs from among the persons who meets the requirements pursuant to the classifications set forth in the following subparagraphs: <Amended by Act No. 9738, May 27, 2009>

1.

Medical rehabilitation facilities and rehabilitation projects in accordance with Article 31 (1) 1: A person who is operating a general hospital under Article 3 (3) of the Medical Service Act and sets up a clinical department relating to medical rehabilitation after obtaining permission for establishment of a medical institution under Article 33 of the same Act:

2.

Vocational rehabilitation facilities and rehabilitation projects in accordance with Article 31 (1) 2: A corporation that meets the requirements prescribed by Presidential Decree and obtains permission from the Minister of Land, Transport and Maritime Affairs pursuant to Article 32 of the Civil Act and the Act on the Establishment and Operation of Public-Service Corporations from among organizations of persons handicapped with sequelae from motor vehicle accidents.

(2)	A person who intends to be designated pursuant to paragraph (1) shall file an application with the Minister of Land, Transport and Maritime Affairs as prescribed by Presidential Decree. <Amended by Act No. 9738, May 27, 2009>

(3)

In cases where a person who has been designated pursuant to paragraph (1) (hereinafter "operator of rehabilitation facilities") performs, as the person entrusted with the management and operation of rehabilitation facilities or rehabilitation projects, duties concerning the management and operation of rehabilitation facilities or rehabilitation projects, he or she shall perform accounting by setting up a separate account and separating it from other businesses. <Amended by Act No. 9738, May 27, 2009>

(4)	Matters necessary for the designation procedure for and supervision over operators of rehabilitation facilities, and other necessary matters shall be prescribed by Presidential Decree.

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Article 33 (Cancellation of Designation as Operator of Rehabilitation Facilities)

(1)

In cases where an operator of rehabilitation facilities falls under any of the following subparagraphs, the Minister of Land, Transport and Maritime Affairs may cancel his or her designation: Provided, That where the operator of rehabilitation facilities falls under subparagraph 1 or 2, such designation shall be cancelled:

1.	Where the operator has been designated by fraudulent or other unlawful means;

2.	Where the operator has ceased to meet the requirements described in each subparagraph of Article 32 (1);

3.	Where the operator has failed to perform accounting separately from other businesses in violation of Article 32 (3);

4.	Where the operator has failed to comply with the order of correction pursuant to Article 43 (4) on not less than three occasions without any justifiable grounds; or

5.	Where it is impossible for the operator to continuously perform duties concerning the management and operation of rehabilitation facilities or rehabilitation projects due to changes in circumstances, such as the liquidation of corporation.

(2)

In cases where the Minister of Land, Transport and Maritime Affairs has cancelled the designation of an operator of rehabilitation facilities pursuant to paragraph (1) and both of the following situation arise, he or she may allow the person whose designation has been cancelled to continue performing duties concerning the management and operation of rehabilitation facilities or rehabilitation projects by specifying a period and conditions thereof until a new operator of rehabilitation facilities is designated. In such cases, the person whose designation has been cancelled shall be deemed an operator of rehabilitation facilities to the extent that he or she continues to perform such duties:

1.	Where it is impossible to select a new operator of rehabilitation facilities who can commence such duties on the date when the designation was cancelled; and

2.	Where it is necessary to continue the management and operation of rehabilitation facilities or rehabilitation projects.

(3)

No person whose designation has been cancelled in accordance with paragraph (1) shall be redesignated as an operator of rehabilitation facilities within 2 years from the date when the designation was cancelled (or, if the duties have been continuously performed pursuant to paragraph (2), the date when such duties were terminated).

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Article 34 (Rehabilitation Facility Deliberative Committee)

(1)

In order to deliberate on the matters in the following subparagraphs regarding the installation of rehabilitation facilities, operation of rehabilitation projects, etc., a Rehabilitation Facility Deliberative Committee (hereinafter the "Deliberative Committee") shall be established under the control of the Minister of Land, Transport and Maritime Affairs:

1.	Matters regarding the installation and management of rehabilitation facilities;

2.	Matters regarding the operation of rehabilitation projects;

3.	Matters regarding designation as an operator of rehabilitation facilities and cancellation thereof;

4.	Matters regarding business plans and budget of operators of rehabilitation facilities; and

5.	Other matters regarding the management and operation of rehabilitation facilities and rehabilitation projects, prescribed by Presidential Decree.

(2)	Matters necessary for the composition, operation, etc. of the Deliberative Committee shall be prescribed by Presidential Decree.

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Article 35 (Provisons to be Applied Mutatis Mutandis)

(1)

The provisions of Articles 10 through 13, 13-2 and 14 shall apply mutatis mutandisto claims of victims for compensation under Article 30 (1). In such cases, the term "insurer, etc." shall be deemed a "person operating the business of securing motor vehicle accident compensation", and the term "insurance payouts, etc." as "compensation." <Amended by Act No. 9450, Feb. 6, 2009>

(2)

The provisions of Articles 19 and 20 shall apply mutatis mutandis to petitions for review of medical fees for victims from among the compensation under Article 30 (1). In such cases, the term "insurer, etc." shall be deemed as a "person operating the business of securing motor vehicle accident compensation".

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Article 36 (Adjustment of Compensation, etc. under Other Acts)

(1)

In cases where a victim is compensated for damage under Article 30 (1) pursuant to the State Compensation Act, the Industrial Accident Compensation Insurance Act or other Acts prescribed by Presidential Decree, the Government shall be exempted from liability for compensation under Article 30 (1) to the extent of the amount of compensation the victim has received.

(2)	In cases where a victim is compensated for damage under Article 30 (1) by the person who is liable for damage pursuant to Article 3, the Government shall be exempted from such liability for damage under Article 30 (1) to the extent of the amount of compensation the victim has received.

(3)	In cases where a person who is supposed to receive aid under Article 30 (2) has been aided for the same reason under any other Act, the Government shall not be required to render aid under Article 30 (2) to the extent of any aid the person has received.

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Article 37 (Contributions to Guarantee of Automobile Accident Compensation Business)

(1)

Any person who is obliged to purchase a liability insurance policy, etc. under Article 5 (1) and any owner of the automobile, prescribed by Presidential Decree, which is provided for in Article 5 (4) shall pay the Government a contribution to the guarantee of automobile accident compensation business.

(2)

In cases where a person who is obliged to purchase a liability insurance policy in accordance with Article 5 (1) pays a contribution in accordance with paragraph (1), an insurer, etc. that intends to enter into a contract for liability insurance with such person shall collect the contribution at the time when the contract is concluded and pay the contribution to the Government.

(3)	The contributions described in paragraph (1) shall be employed as separate from the Government's revenue and expenditure budget and necessary matters with respect to the amount, the method of payment, and the management of contributions shall be prescribed by Presidential Decree.

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Article 38 (Disposition Taken to Collect Contributions in Arrears)

(1)	In cases where a person has not paid the contribution under Article 37 by the payment deadline, the Minister of Land, Transport and Maritime Affair shall urge him or her to pay the contribution by specifying a deadline within ten days.

(2)

In cases where the person who has been urged to pay the contribution pursuant to paragraph (1) fails to pay it by the specified deadline, the Minister of Land, Transport and Maritime Affair shall collect it in accordance with the precedents of dispositions taken to collect national taxes in arrears.

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Article 39 (Subrogation of Right to Claims, etc.)

(1)

In cases where the Government has paid damages to a victim in accordance with Article 30 (1), the Government may exercise in subrogation the victim's right to claim compensation for such damages against the person who is liable for damage under Article 3 up to the extent of the amount it has paid to the victim.

(2)	In cases where the Government compensates an insurer, etc. in accordance with Article 30 (3), the Government may exercise in subrogation the right of the insurer, etc. to claim the refund against any person who has been paid the advance payment in accordance with Article 11 (3) and (4).

(3)

In cases where it falls under any of the following subparagraphs, the Government may discontinue the exercise in subrogation of the right to claims under paragraphs (1) and (2) in accordance with a decision of the Credit Settlement Committee for the Business of Securing Motor Vehicle Accident Compensation under Article 39 (2) and dispose of deficits of the credits for the recourse amount or unrefunded advance payment, etc. <Added by Act No. 9450, Feb. 6, 2009>:

1.	The cases where the extinctive prescription of the relevant right is completed;

2.	The cases prescribed by Presidential Decree from among the cases which are deemed to be impossible to collect the receivables.

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Article 39-2 (Credit Settlement Committee for Business of Securing Motor Vehicle Accident Compensation)

(1)

In order to resolve matters related to dispositions of deficits of the receivables under Article 39 (1) and (2), the Minister of Land, Transport and Maritime Affairs shall establish the Credit Settlement Committee for the business of securing motor vehicle accident compensation (hereinafter referred to as "Credit Settlement Committee").

(2)	Matters necessary for the organization, operation, etc. of the Credit Settlement Committee shall be prescribed by Presidential Decree.

[This Article Added by Act No. 9450, Feb. 6, 2009]

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Article 40 (Prohibition on Seizure, etc.)

The right to claims under Article 10 (1), 11 (1), or 30 (1) shall not be subject to seizure or alienation.

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Article 41 (Prescription)

In cases where the claim under Article 10, 11 (1), 29 (1) or 30 (1) is not exercised within three years, its prescription shall expire. <Amended by Act No. 9450, Feb. 6, 2009>

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Article 42 (Prohibition on Disposition of Registration, etc. of Non-Policyholder of Mandatory Insurance)

(1)

In cases where an application or a report is filed or submitted with respect to a registration, permission and inspection provided for in Articles 8, 12, 27, 43 (1) 2, 43-2 (1) and 48 (1) of the Motor Vehicle Management Act or Articles 3 and 13 (1) 2 of the Construction Machinery Management Act for any motor vehicle having mandatory insurance in accordance with Article 5 (1) through (3), the competent administrative agency (or any person who is entrusted with the relevant duties; hereinafter the same shall apply) shall accept the registration, grant the permission, conduct the inspection, or receive the report only after confirming that the motor vehicle has mandatory insurance. In such cases, when a motor vehicle is newly registered under Article 8 of the Motor Vehicle Management Act, the relevant vehicle shall be deemed to have mandatory insurance only when the insurance which covers the liability for damages occurring after the expiration of the period for which temporary operation permission is granted under Article 27 of the same Act has been purchased for such motor vehicle. <Amended by Act No. 9450, Feb. 6, 2009>

(2)	Matters necessary for the methods and procedures to confirm whether mandatory insurance is purchased under paragraph (1) shall be prescribed by Ministerial Decree of Land, Transport and Maritime Affairs.

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Article 43 (Inspection, Question, etc.)

(1)

The Minister of Land, Transport and Maritime Affairs may, where deemed necessary, have public officials under his or her control visit rehabilitation facilities, medical institutions which have filed claims for medical fees covered by motor vehicle insurance or offices, etc. of the persons entrusted with authority pursuant to Article 45 (1) through (4) to conduct any of the following acts: Provided, That only the acts set forth in subparagraphs 1 and 3 shall be applicable in cases of the medical institutions which have filed claims for medical fees covered by motor vehicle insurance: <Amended by Act No. 9738, May 27, 2009>

1.	An inspection of papers, such as documents regarding the processing status of the duties prescribed by this Act;

2.	An act of receiving reports on matters of relevant duties, accounting, and property;

3.	An inquiry into relevant persons.

(2)

The Minister of Land, Transport and Maritime Affairs may request the relevant central administrative agency, the relevant local government, or the Financial Supervisory Service, etc. to submit such data as may be necessary to ascertain the processing status of duties concerning the insurance business prescribed by this Act or to efficiently operate the business of securing motor vehicle accident compensation. In such cases, the relevant central administrative agency, the relevant local government, or the Financial Supervisory Service, etc. which has been requested to submit the data shall comply with such request unless there exists any justifiable reason to the contrary.

(3)	Any public officials who conduct an inspection or inquiry in accordance with paragraph (1) shall carry a certificate to demonstrate their authority and show it to relevant persons.

(4)

In cases where there is found to be against Acts and subordinate statutes or to have details of unreasonable conduct as a result of inspection or report pursuant to paragraph (1), the Minister of Land, Transport and Maritime Affairs may order the operator of rehabilitation facilities or the person who has been entrusted with authority to take corrective action.

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Article 44 (Delegation of Authority)

The Minister of Land, Transport and Maritime Affairs may, as prescribed by Presidential Decree, delegate part of authority granted by this Act to the Mayor of Special Metropolitan City, Mayor of Metropolitan City, Governor of Do, Governor or Special Self-Governing Province, or the head of Si/Gun/Gu.

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Article 45 (Entrustment of Duties)

(1)	The Minister of Land, Transport and Maritime Affairs may, as prescribed by Presidential Decree, entrust an insurer, etc. or an insurance-related organization with the following duties. In such cases, he or she shall consult with the Financial Services Commission with regard thereto:

1.	Duties concerning compensation as provided for in Article 30 (1);

2.	Duties concerning performing the rights and duties of a person operating the business of securing motor vehicle accident compensation in consequence of the fact that the person operating the guarantee of automobile accident compensation business is regarded as an insurer, etc. under Article 35;

3.	Duties concerning the receipt, management and use of contributions under Article 37;

4.	Duties concerning enforcing a subrogation claim for damages under Article 39 (1).

(2)

The Minister of Land, Transport and Maritime Affairs may, as prescribed by Presidential Decree, entrust the Korea Transportation Safety Authority established under the Korea Transportation Safety Authority Act with the duties to render aid pursuant to Article 30 (2) and duties to install rehabilitation facilities.

(3)	The Minister of Land, Transport and Maritime Affairs may entrust any institution in charge of calculating insurance premium rates with the duties to organize and operate the computer networks for underwriting management provided for in Article 7.

(4)	The Minister of Land, Transport and Maritime Affairs may entrust any insurance-related organization or any special corporation established under any special Act with the duties concerning compensation provided for in Article 30 (3) and claim for refund provided for in Article 39 (2).

(5)	The Government may provide subsidies to a person entrusted with the duties provided for in paragraph (1) or (2) within budgetary limits in order to appropriate such subsidies for the compensation or aid money he or she has to pay.

(6)	Any person who is entrusted with the duties under the provisions of paragraphs (1) through (4) shall be deemed as a public official in the application of provisions of Articles 129 through 132 of the Criminal Act. <Added by Act No. 9450, Feb. 6, 2009>

(7)	The Government may provide subsidies to persons entrusted with the duties provided for in paragraphs (1) through (4) for the expenses necessary for performance of the entrusted duties from the contribution under Article 37. <Added by Act No. 9450, Feb. 6, 2009>

(8)	Matters necessary for the scope of subsidies and persons entitled thereto pursuant to paragraph (7) shall be prescribed by Presidential Decree. <Added by Act No. 9450, Feb. 6, 2009>

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Article 45-2 (Provision and Management of Information)

(1)

In cases where an institution in charge of calculating insurance premium rates which is entrusted with the duties under Article 45 (3) is requested by a person entrusted with the duties under paragraph (1) of the same Article, it may provide him or her with information managed by the computer networks for underwriting management within the scope prescribed by Presidential Decree, such as the contents of the information to be furnished.

(2)

In cases where information is provided under paragraph (1), an institution in charge of calculating insurance premium rates which is entrusted with the duties under Article 45 (3) shall, for three years, keep materials wherein the person whose information is furnished, the contents of the information provided, the person who has requested the information, and the purpose of providing information are recorded.

[This Article Added by Act No. 9450, Feb. 6, 2009]

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Article 45-3 (Obligation of Person Utilizing Information)

No institution entrusted in charge of calculating insurance premium rates which is entrusted with the duties under Article 45 (3) nor any person provided with the information under Article 45-2 (1) shall disclose any information discovered during the duties performed by him or her or use such information for unjustifiable purposes such as to furnish it for another person's use.

[This Article Added by Act No. 9450, Feb. 6, 2009]

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Article 46 (Penal Provisions)

(1)

Any person who falls under any of the following subparagraphs shall be punished by imprisonment for not more than three years or by a fine not exceeding ten million Won: Provided, That a person falling under subparagraph 1 may be indicted only when a victim affected by the leakage of his or her confidential information lodges a complaint against the offender: <Amended by Act No. 9450, Feb. 6, 2009>

1.	Persons who have divulged any confidential information of other persons discovered during the inspection of medical records conducted in violation of Article 14 (2);

2.	Insurers, etc. which have failed to perform accounting tasks for a mandatory insurance business separate from those for other businesses in violation of Article 27;

3.	Operators of rehabilitation facilities who have failed to perform their accounting tasks separate from those for other businesses in violation of Article 32 (3);

4.	Persons who have disclosed any information or furnished such information to another persons' use in violation of Article 45-3.

(2)	If a motor vehicle owner who has operated the motor vehicle without having mandatory insurance in violation of the main sentence of Article 8, he or she shall be punished by imprisonment for not more than one year or by a fine not exceeding five million Won.

(3)

Any medical institution that has filed a claim for medical fees covered by motor vehicle insurance falsely stating the details in medical records, or that has prepared false medical records in order to make a misleading claim in violation of Article 12 (3) shall be punished by a fine not exceeding fifty million Won.

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Article 47 (Joint Penal Provisions)

In the event that a representative of a corporation, or an agent, an employee or other workers of a corporation or an individual, has committed a violation described in Article 46 with respect to the business of the corporation, or of the individual, the corporation, or the individual, shall be punished by a fine under the relevant provisions, in addition to the punishment of the person who has committed such violation: Provided, That the same shall not apply in cases where the corporation or the individual has paid careful attention to the relevant business and has not negligently supervised the relevant business in order to prevent the violation.

[This Article Wholly Amended Act No. 9450, Feb. 6, 2009]

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Article 48 (Fines for Negligence)

(1)	Any insurer, etc. which has reduced the amount of a claim filed by a medical institution under Article 12 (2) without filing a petition for review thereof under Article 19 (1) in violation of Article 19 (4) shall be punished by a fine for negligence not exceeding fifty million Won.

(2)	Any person falling under any of the following subparagraphs shall be punished by a fine for negligence not exceeding twenty million won:

1.	Any insurer, etc. who has refused to pay the advance payment claimed by any victim in violation of Article 11 (2);

2.	Any founder of a medical institution who has filed a claim for medical fees covered by motor vehicle insurance with a victim (or his or her guardian) in violation of Article 12 (5);

3.	Any insurer, etc. which has refused to enter into a contract for insurance or mutual aid provided for in Article 5 (1) through (3) with a person applying for such contract in violation of Article 24 (1);

4.	Any insurer, etc. which has cancelled or terminated a contract for mandatory insurance in violation of Article 25.

(3)	Any person falling under any of the following subparagraphs shall be punished by a fine for negligence not exceeding three million Won: <Amended by Act No. 9738, May 27, 2009>

1.	Any person who has failed to purchase a mandatory insurance policy provided for in Article 5 (1) through (3);

2.	Any insurer, etc. who has failed to issue a notice in violation of Article 6 (1) or (2);

3.	Any founder of a medical institution who has failed to keep and retain records of outings and sleep-overs by inpatients in violation of Article 13 (1), or has kept and retained them fraudulently;

3-2. Any person who has failed to comply with a request for an inspection of records in violation of Article 13 (3);

3-3. Any person who has failed to comply with inspections, requests for reports or questions under Article 43 (1) or who has impeded or avoided them without justifiable grounds.

4.	A person who fails to comply with a corrective order under Article 43 (4).

(4)	Fines for negligence as provided for in paragraphs (1) through (3) shall be imposed and collected by the head of Si/Gun/Gu, as prescribed by Presidential Decree. <Added by Act No. 9450, Feb. 6, 2009>

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Article 49 Deleted.<by Act No. 9450, Feb. 6, 2009>

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Article 50 (Common Provisions)

(1)	The term "offenses" in this Chapter means offenses corresponding to crimes under Article 46 (2), and details thereof shall be prescribed by Presidential Decree.

(2)	The term "offender" in this Chapter means any person who has committed an offense and does not fall under any of the following subparagraphs:

1.	A person who habitually commits offenses;

2.	A person whose crime is deemed not to be pertinent to notice disposition in view of the motives, means, results, etc. of committing the crime.

(3)	The term "penalty" in this Chapter means the money to be paid by offenders to the treasury of the Special Self-governing Province or Si/Gun/Gu (meaning an autonomous Gu) that has taken notice disposition under Article 51.

(4)

Investigations on offenses shall be exclusively conducted by any prosecutor and the public official designated under subparagraph 35 of Article 5 of the Act on the Persons Performing the Duties of Judicial Police Officials and the Scope of their Duties (hereinafter "special judicial police officials"): Provided, That an investigation on a person who has caused a motor vehicle accident by operating a motor vehicle without contracting an mandatory insurance shall be carried out exclusively by prosecutors and judicial police officials. <Amended by Act No. 9450, Feb. 6, 2009>

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Article 51 (Notice Disposition)

(1)	The head of Si/Gun/Gu may notify the person deemed as an offender of the payment of penalty, by means of a notice for payment of penalty, clarifying the reasons therefor: Provided, That this shall not apply to persons falling under any of the following subparagraphs:

1.	A person whose name or address is uncertain; and

2.	A person who refuses to receive a notice for payment of penalty.

(2)	The amount of penalty to be notified under paragraph (1) shall be prescribed by Presidential Decree within the amount of fines described in Article 46 (2) in view of the relevant kind of automobiles and the level of offenses.

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Article 52 (Payment of Penalties)

(1)

Any person who has received a notice for the payment of penalty under Article 51 shall pay the penalty to the receiving agency designated by the head of Si/Gun/Gu within ten days from the date he or she has received the notice: Provided, That in cases where he or she is unable to pay the penalty within the relevant period due to force majeure or other unavoidable reasons, he shall pay it within five days from the day on which such reasons have ceased to exist.

(2)	Any person who is dissatisfied with a notice for payment of penalty under paragraph (1) may file an objection with the head of Si/Gun/Gu by the deadline for the relevant payment.

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Article 53 (Effect of Notice Disposition)

(1)	Any person who has paid the penalty under Article 51 (1) shall not be punished twice for the same offense.

(2)	In the event that any one of the following cases occurs, a special judicial police official shall without delay transfer the case to the competent District Public Prosecutor's Office or District Public Prosecutor's Branch Office:

1.	Where any case described in each subparagraph of Article 50 (2) occurs;

2.	Where any case described in each subparagraph of Article 51 (1) occurs;

3.	Where the penalty is not paid within the time limit for payment under Article 52 (1); and

4.	Where an objection is filed pursuant to Article 52 (2).