Article 31-2(Exclusion from implementation of subsidy programs) #
(1) Where a subsidy program operator or an indirect subsidy program operator falls under any of the following cases, the head of a central government agency shall exclude the relevant subsidy program operator or indirect subsidy program operator from those eligible to implement a subsidy program or an indirect subsidy program under his or her jurisdiction or shall restrict the granting of a subsidy or an indirect subsidy to him or her for a period of up to 5 years from the date such fact is confirmed, as prescribed by Presidential Decree; provided, where the relevant subsidy program or indirect subsidy program is implemented instead of a welfare project or government policy project and thus it is impracticable to replace the relevant subsidy program operator or indirect subsidy program operator by other subsidy program operator or indirect subsidy program operator, the head of the central government agency need not exclude him or her from those eligible to implement the subsidy program or indirect subsidy program nor restrict the granting of a subsidy or an indirect subsidy to him or her in consultation with the Minister of Planning and Budget: <Amended on Jun. 15, 2021; Oct. 1, 2025>
1. Where a decision to grant subsidies to him or her is revoked on at least one occasion pursuant to Article 30, on the grounds that he or she has received the subsidies or indirect subsidies by fraud or other improper means;
2. Where a decision to grant subsidies to him or her is revoked on at least two occasions pursuant to Article 30, on the grounds that he or she has used the subsidies or indirect subsidies for any other unspecified purpose;
3. Where a decision to grant subsidies to him or her is revoked on at least three occasions pursuant to Article 30, on the grounds that he or she has violated statutes or regulations, the details of a decision to grant subsidies, or the disposition taken by the head of a central government agency under statutes or regulations.
(2) If a subsidy recipient falls under any of the following cases, the head of a central government agency shall restrict the payment of a subsidy or an indirect subsidy to the relevant subsidy recipient for a period of up to 5 years from the date on which such fact is confirmed, as prescribed by Presidential Decree: <Amended on Jun. 15, 2021>
1. Where he or she is ordered to fully or partially return subsidies or indirect subsidies on at least one occasion pursuant to Article 33, on the grounds that he or she has received the subsidies or indirect subsidies by fraud or other improper means;
2. Where he or she is ordered to fully or partially return subsidies or indirect subsidies on at least two occasions pursuant to Article 33, on the grounds that he or she has used the subsidies or indirect subsidies for purposes other than the purpose of the payment thereof;
3. Where he or she is ordered to fully or partially return subsidies or indirect subsidies on at least three occasions pursuant to Article 33, on the grounds that he or she has received the subsidies or indirect subsidies without having met requirements for receiving the subsidies or indirect subsidies.
(3) The head of a central government agency shall exclude a person (hereinafter referred to as "contractor, etc. involved in improper receipt") who has been found guilty of acquiring financial gains by fraud or other improper means in the course of a tendering procedure, successful tender, or conclusion or performance of a contract related to a subsidy program or an indirect subsidy program, from those eligible for the implementation of the relevant subsidy program or indirect subsidy program under his or her jurisdiction, for a period of up to 5 years from the date on which the judgment becomes final and conclusive, as prescribed by Presidential Decree. <Added on Jun. 15, 2021>
(4) If the head of a central government agency excludes a subsidy program operator, etc. or a contractor, etc. involved in improper receipt from implementing a subsidy program or indirect subsidy program or from receiving a subsidy or indirect subsidy in accordance with paragraphs (1) through (3), he or she shall immediately notify the Minister of Economy and Finance and the head of another central government agency of such fact. In such cases, the heads of other central government agencies in receipt of such notice shall exclude the relevant subsidy program operator, etc. or contractor, etc. involved in improper receipt from implementing a subsidy program or indirect subsidy program or from receiving a subsidy or indirect subsidy in accordance with paragraphs (1) through (3); provided, the head of a central administrative agency in receipt of such notice shall comply with special provisions if such provisions exist in other statutes with respect to the exclusion from those eligible for implementation or the receipt restriction period in connection with a subsidy program or an indirect subsidy program under his or her jurisdiction. <Amended on Jan. 4, 2017; Jun. 15, 2021; Oct. 1, 2025>
(5) Notwithstanding paragraphs (2) and (4), if a subsidy or an indirect subsidy falls under any of the following cases, the payment of such subsidy or indirect subsidy may not be restricted: <Added on Jun. 15, 2021>
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 pensions 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 actual benefits of restricting the payment of subsidies or indirect subsidies are not significant.
(6) Except as provided in paragraphs (1) through (5), matters necessary for specific methods of and standards for exclusion from those eligible to implement a subsidy program or an indirect subsidy program and restrictions on receiving a subsidy or an indirect subsidy, and integration, management, etc. of information related thereto shall be prescribed by Presidential Decree. <Amended on Jun. 15, 2021>
[This Article Added on Jan. 28, 2016]