ACT ON THE ESTABLISHMENT OF ASSOCIATIONS BY PERSONS OF DISTINGUISHED SERVICE TO THE STATE

Article 1(Purpose) #

The purpose of this Act is to help persons who have performed distinguished services for the State and their bereaved families improve their capabilities of self-support through mutual aid and support, enhance the national spirit, following up the will of deceased patriots and soldiers killed in action for the national defense, promote the patriotism of the nation, and contribute to the protection of liberal democracy, the peaceful unification of our homeland, and the maintenance of international peace by establishing the Korea Disabled Veterans Organization, the Korea War Veterans Bereaved Families Association, the Korea War Widows Association, the Korea Liberation Association, the April 19 Revolution Association, the Association of Bereaved Families of the April 19 Revolution Victims, the Association of Persons of Distinguished Services in the April 19 Revolution, the Association of Korean Student Volunteer Soldiers from Japan, and the Korea Military Merit Awardees Association.

[This Article Wholly Amended on Jul. 14, 2011]

Article 2 #

Deleted. <Aug. 2, 1984>

Article 3(Membership) #

The following organizations (hereinafter referred to as "organization by persons, etc. of distinguished service to the State") may admit persons classified as follows as their members: <Amended on Sep. 15, 2011; Jun. 8, 2021>

1. The Korea Disabled Veterans Organization: A person falling under Article 4 (1) 4 and 6 of the Act on the Honorable Treatment of and Support for Persons of Distinguished Service to the State;

2. The Korea War Veterans Bereaved Families Association: A person who receives compensation (excluding persons falling under subparagraph 3 and minors), from among the bereaved families of persons falling under Article 4 (1) 3 and 5 of the Act on the Honorable Treatment of and Support for Persons of Distinguished Service to the State or persons falling under subparagraphs 4 and 6 of the same paragraph: Provided, That where there is no bereaved family member who receives compensation, any person who takes priority under the subparagraphs of Article 5 (1) of the Act on the Honorable Treatment of and Support for Persons of Distinguished Service to the State shall be the member, and, where there are two or more persons who are in the same order, a senior person shall take precedence over others;

3. The Korea War Widows Association: The wife, one of bereaved families, who receives compensation, from among the bereaved families of persons falling under Article 4 (1) 3 and 5 of the Act on the Honorable Treatment of and Support for Persons of Distinguished Service to the State or bereaved families falling under Article 4 (1) 4 and 6 of the Act;

4. The Korea Liberation Association: A person who receives compensation under the Act on the Honorable Treatment of Persons of Distinguished Service to Independence, from among the bereaved families of persons falling under subparagraph 2 of Article 4 of the same Act and persons falling under subparagraphs 1 and 2 of the same Article, respectively: Provided, That where there is no bereaved family member who receives compensation, a person who is a senior in age shall be the member, from among persons who take priority under the subparagraphs of Article 5 (1) or Article 12 (3) of the Act on the Honorable Treatment of Persons of Distinguished Service to Independence, and, where there is no person prescribed under the subparagraphs of Article 5 (1) of the same Act, one senior person shall be the member, from among the closest lineal descendants of persons falling under subparagraph 1 or 2 of Article 4 of the same Act, but, when one person is designated by an agreement between the bereaved families, such person shall be the member;

5. The April 19 Revolution Association: A person who falls under Article 4 (1) 12 of the Act on the Honorable Treatment of and Support for Persons of Distinguished Service to the State;

Article 3-2(Rights and Duties of Members) #

Each organization by persons, etc. of distinguished service to the State shall have the provisions of rights and duties of the members in the articles of incorporation. <Amended on Jun. 8, 2021>

[This Article Newly Inserted on Jul. 16, 2013]

Article 4(Juristic Personality) #

(1) Each organization by persons, etc. of distinguished service to the State shall be a corporation. <Amended on Jun. 8, 2021>

(2) The provisions of the Civil Act concerning an incorporated association shall apply mutatis mutandis to each organization by persons, etc. of distinguished service to the State, except as otherwise prescribed by this Act. <Amended on Jun. 8, 2021>

[This Article Wholly Amended on Jul. 14, 2011]

Article 5(Organization) #

(1) Each organization by persons, etc. of distinguished service to the State shall have its headquarters, chapters, sub-chapters, and special sub-chapters. <Amended on Jun. 8, 2021>

(2) Each organization shall have its headquarters in Seoul Special Metropolitan City, a chapter in Seoul Special Metropolitan City, a Metropolitan City, Do and a Special Self-Governing Province (hereinafter referred to as "City/Do"), a sub-chapter in a Si (including an administrative city under Article 10 (2) of the Special Act on the Establishment of Jeju Special Self-Governing Province and the Development of Free International City; hereinafter the same shall apply) Gun and Gu (referring to an autonomous Gu; hereinafter the same shall apply), and a special sub-chapter in an area where persons who performed distinguished services to the State reside collectively: Provided, That the Association of Korean Student Volunteer Soldiers from Japan may have chapters in Japan. <Amended on Jul. 24, 2015>

(3) The Minister of Patriots and Veterans Affairs (hereinafter referred to as the "Minister") may, if he or she considers it necessary in view of the number of members, geographic conditions, and other factors, require an organization to integrate Cities/Dos or Sis/Guns/Gus in order to establish a single chapter or sub-chapter.

(4) Each organization by persons, etc. of distinguished service to the State shall have a general assembly and a board of directors. <Amended on Jun. 8, 2021>

[This Article Wholly Amended on Jul. 14, 2011]

Article 6(Executive Officers) #

(1) The headquarters of each organization by persons, etc. of distinguished service to the State shall have the following executive officers: Provided, That the number of directors shall be stipulated by the articles of incorporation: <Amended on Jul. 16, 2013; Jun. 8, 2021>

1. One chairperson;

2. Two vice-chairpersons;

3. Directors;

4. Two auditors.

(2) Each organization by persons, etc. of distinguished services to the State shall have one secretary general. <Amended on Jun. 8, 2021>

(3) The chairperson, vice chairpersons, directors, and auditors shall be elected at the general assembly meeting.

(4) The secretary shall be appointed by the chairperson from among directors, subject to approval from the board of directors.

(5) The chairperson shall represent each organization by persons, etc. of distinguished services to the State and shall have overall control over the affairs of such organization. <Amended on Jun. 8, 2021>

(6) The vice chairperson shall assist the chairperson, and, where the chairperson is unable to perform his or her duties due to unavoidable grounds, the vice chairperson designated by the chairperson shall act as a chairperson on his or her behalf.

(7) Auditors shall audit the accounting of organizations by persons, etc. of distinguished service to the State and business affairs related to accounting. <Amended on Jun. 8, 2021>

(8) The secretary general shall handle the administrative affairs of each organization by persons, etc. of distinguished service to the State in compliance with the orders of the chairperson. <Amended on Jun. 8, 2021>

(9) The chairperson, vice chairpersons, auditors, and secretary general shall be members of the organization.

[This Article Wholly Amended on Jul. 14, 2011]

Article 6-2(Heads of Chapter or Sub-Chapter) #

(1) Each chapter or sub-chapter of an organization by persons, etc. of distinguished service to the State shall have one head of chapter or sub-chapter, and the method of appointment of a head of chapter or sub-chapter shall be stipulated by the articles of incorporation of such organization. <Amended on Jun. 8, 2021>

(2) The head of a chapter or sub-chapter under paragraph (1) (excluding the head of a special sub-chapter under the direct control of the headquarters of the Korea Disabled Veterans Organization) shall not hold concurrent office as a representative.

[This Article Wholly Amended on Jul. 14, 2011]

Article 7(Articles of Incorporation) #

(1) The articles of incorporation of each organization by persons, etc. of distinguished service to the State shall include the following: <Amended on Jun. 8, 2021>

1. Purpose;

2. Name;

3. Location of the office;

4. Matters concerning business;

5. Matters concerning the general meeting and the board of directors;

6. Matters concerning the name and organization of the headquarters, a chapter, a branch and a special branch;

7. Matters concerning the acquisition and loss of membership;

8. Matters concerning dues and assets;

9. Matters concerning regulations and operation;

10. Matters concerning dissolution.

(2) When each organization by persons, etc. of distinguished service to the State intends to revise the articles of incorporation, it shall obtain authorization from the Minister. <Amended on Jun. 8, 2021>

[This Article Wholly Amended on Jul. 14, 2011]

Article 7-2 #

Deleted. <Feb. 3, 2015>

Article 8 #

Deleted. <Jan. 29, 1999>

Article 9(Establishment of Each Organization by Persons of Distinguished Service to the State) #

Each organization by persons, etc. of distinguished service to the State shall be established at the time it registers such establishment at the location of its main office. <Amended on Jun. 8, 2021>

[This Article Wholly Amended on Jul. 14, 2011]

[Title Amended on Jun. 8, 2021]

Article 10(General Assembly) #

(1) The general assembly of each organization by persons, etc. of distinguished service to the State shall consist of the chairperson, vice-chairpersons, directors, secretary general, heads of chapters, and representatives: Provided, That if the number of its members is less than 300 persons, an organization by persons, etc. of distinguished service to the State may set different rules regarding representatives in its articles of incorporation. <Amended on Jun. 8, 2021>

(2) Matters concerning convocation of general assembly meetings, matters subject to resolution, the method of meeting, and other relevant matters shall be stipulated by the articles of incorporation.

[This Article Wholly Amended on Jul. 14, 2011]

Article 11(Representatives) #

The full number of representatives of each organization by persons, etc. of distinguished service to the State, the method of appointment of representatives, and other relevant matters shall be stipulated by articles of incorporation. <Amended on Jun. 8, 2021>

[This Article Wholly Amended on Jul. 14, 2011]

Article 12(Board of Directors) #

(1) The board of directors shall be made up of the chairperson, vice chairpersons and directors. <Amended on Jul. 16, 2013>

(2) When the chairperson deems that it is highly difficult to convoke a general meeting due to natural disasters or other emergencies, he or she may allow the board of directors to exercise the authority of the general meeting after obtaining approval from the Minister. In such cases, matters to be resolved shall require approval from the next general meeting.

(3) Matters concerning the board of directors shall be prescribed by the articles of incorporation.

[This Article Wholly Amended on Jul. 14, 2011]

Article 13(Subsidies) #

The State or local governments may provide subsidies, within the budget, to each organization by persons, etc. of distinguished service to the State to help with its operation and other activities. <Amended on May 29, 2016; Jun. 8, 2021>

[This Article Wholly Amended on Jul. 14, 2011]

Article 13-2(Preferential Sale of State-Owned or Public Property) #

(1) If deemed necessary for the operation and welfare programs of each organization by persons, etc. of distinguished service to the State, the State or a local government may sell preferentially, loan, or grant a license to use or profit from, state-owned or public property in return for consideration or without consideration to such organization, notwithstanding the State Property Act or the Public Property and Commodity Management Act. <Amended on Jun. 8, 2021>

(2) If deemed necessary for the operation and welfare programs of each organization by persons, etc. of distinguished service to the State, the State or a local government may grant a concession for the commodities under Article 2 (1) of the Commodity Management Act or commodities under subparagraph 2 of Article 2 of the Public Property and Commodity Management Act without consideration, or may lend such commodities with or without consideration, notwithstanding the Commodity Management Act or the Public Property and Commodity Management Act. <Amended on Mar. 13, 2018; Jun. 8, 2021>

(3) Where the State or a local government sells, loans, or grants a license to use or profit from, state-owned or public property to each organization by persons, etc. of distinguished service to the State under paragraph (1), the Minister may request the head of the relevant central administrative agency and the head of a local government (including persons to whom business affairs related to the management and disposal of state-owned or public property is delegated or entrusted under statutes) to submit data on contracts, permission, or approval with regard thereto. In such cases, the head of agency requested to submit data shall comply with such request unless there is good reason. <Newly Inserted on Jun. 8, 2021>

(4) Where an organization by persons, etc. of distinguished service to the State intends to dispose of property purchased under paragraph (1) (referring to the transfer of the ownership of such property by means of sale, exchange, concession, trust, investment in kind, etc.; hereafter in this paragraph, the same shall apply), it shall report matters prescribed by Presidential Decree, such as the details, terms, and conditions of a contract for such disposal to the Minister before the contract is concluded, as prescribed by Ordinance of the Prime Minister. <Newly Inserted on Jun. 8, 2021>

[This Article Wholly Amended on Jul. 14, 2011]

Article 14(Prohibition against Political Activities) #

(1) No organization by persons, etc. of distinguished service to the State is allowed to support or oppose the party platforms of specific political parties or candidates for public office or engage in other political activities. <Amended on Jun. 8, 2021>

(2) No organization by persons, etc. of distinguished service to the State is allowed to collect political funds from its members and appropriate funds of each organization by persons, etc. of distinguished service to the State for political funds. <Amended on Jun. 8, 2021>

[This Article Wholly Amended on Jul. 14, 2011]

Article 15 #

Deleted. <Feb. 3, 2015>

Article 16(Retention of Documents) #

Each organization by persons, etc. of distinguished service to the State shall retain the following documents: <Amended on Jun. 8, 2021>

1. List of members;

2. Account books and documents regarding finance;

3. Minutes of meetings.

[This Article Wholly Amended on Jul. 14, 2011]

Article 17(Profit-Making Business Conducted by Organizations by Persons of Distinguished Service to the State) #

(1) An organization by persons, etc. of distinguished service to the State established under this Act may directly engage in profit-making business within the extent necessary to achieve the objectives of its establishment under Article 1. <Amended on Jun. 8, 2021>

(2) Where the State, local governments, and other public organizations purchase goods directly produced by, among organizations by persons, etc. of distinguished service to the State that engage in profit-making business pursuant to paragraph (1), an organization by persons, etc. of distinguished service to the State whose members are disabled soldiers, directly sell or lease goods to such organization, or enter into a service contract with it, they may do so under a private contract. <Amended on Jun. 8, 2021>

[This Article Newly Inserted on Feb. 3, 2015]

[Title Amended on Jun. 8, 2021]

[Previous Article 17 moved to Article 26 <Feb. 3, 2015>]

Article 18(Approval of Profit-Making Business) #

(1) An organization by persons, etc. of distinguished service to the State that intends to engage in profit-making business pursuant to Article 17 (1) shall obtain approval of the relevant profit-making business from the Minister following deliberation or resolution by the Welfare Services Deliberative Committee established under Article 19. <Amended on Jun. 8, 2021>

(2) Where an organization by persons, etc. of distinguished service to the State that has obtained approval of profit-making business under paragraph (1) intends to change approved matters, it shall obtain approval for such change from the Minister: Provided, That any change is to be made to minor matters prescribed by Ordinance of the Prime Minister, such change shall be reported to the Minister. <Amended on Jun. 8, 2021>

(3) An organization by persons, etc. of distinguished service to the State that intends to obtain approval of profit-making business under paragraph (1) shall meet all of the following requirements: <Newly Inserted on Jun. 8, 2021>

1. A business category or item of profit-making business shall be deemed appropriate for each organization by persons, etc. of distinguished services to the State, in consideration of its financing capacity, ability to perform the business, and the scale of investment, the current status of conducting other profit-making business, etc.;

2. Each organization by persons, etc. of distinguished service to the State shall directly produce goods or directly provide services by furnishing facilities, human resources, etc. for profit-making business;

3. Where any profits accrue from profit-making business, the relevant profits shall be used only for the purpose of establishing the relevant organization by persons, etc. of distinguished services to the State.

(4) No organization by persons, etc. of distinguished services to the State, approval of profit-making business of which is revoked pursuant to Article 23 (1), shall obtain approval of the relevant profit-making business for one year from the date of such revocation. <Newly Inserted on Jun. 8, 2021>

(5) Except as provided in paragraphs (1) through (4), matters necessary for procedures for approving profit-making business, changes in approved matters, requirements for approval, etc. shall be prescribed by Ordinance of the Prime Minister. <Newly Inserted on Jun. 8, 2021>

[This Article Newly Inserted on Feb. 3, 2015]

Article 18-2(Effective Period of Approval) #

(1) The effective period of approval of profit-making business under Article 18 (1) shall be three years from the date the approval is obtained.

(2) Where an organization by persons, etc. of distinguished service to the State which has obtained approval of profit-making business pursuant to Article 18 (1) intends to continue such business even after its effective period expires, it may file an application for extending the effective period by up to three years before such period expires. The same shall also apply where the extended effective period is to be re-extended.

(3) Matters necessary for applications for extending the effective period, etc. under paragraph (2) shall be prescribed by Ordinance of the Prime Minister.

[This Article Newly Inserted on Jun. 8, 2021]

Article 18-3(Prohibition of Lending Name) #

(1) No organization by persons, etc. of distinguished service to the State which has obtained approval of profit-making business pursuant to Article 18 (1) shall lend its name to any third person to allow such person to engage in profit-making business.

(2) No person other than each organization by persons, etc. of distinguished service to the State shall use its name to engage in profit-making business.

[This Article Newly Inserted on Jun. 8, 2021]

Article 19(Establishment of Welfare Services Deliberative Committee) #

(1) Any organization by persons, etc. of distinguished service to the State that engages in profit-making business (including organizations by persons, etc. of distinguished service to the State that intend to engage in profit-making business; hereafter in this Article, the same shall apply) shall establish a welfare services deliberative committee for deliberation on matters concerning the operation of such profit-making business (hereinafter referred to as "Deliberative Committee"). <Amended on Jun. 8, 2021>

(2) The Deliberative Committee shall deliberate on and determine the following:

1. Matters concerning the establishment, suspension, or closure of profit-making business;

2. Matters concerning decision on the scale of investment in profit-making business;

3. Matters concerning a plan to use profits and change of such plan under Article 21;

4. Matters concerning the results of a financial audit and the appropriateness of the profit-making business under Article 22;

5. Other important matters concerning the operation of profit-making business.

(3) The Deliberative Committee shall be comprised of at least five and not more than 10 members including one chairperson, and the following persons shall serve as members: <Amended on Jun. 8, 2021>

1. Two executive officers or employees appointed by the chairperson of the relevant organization by persons, etc. of distinguished service to the State;

2. The following persons appointed or commissioned by the Minister. In such cases, no person falling under items (b) through (d) may be appointed or commissioned from among public officials belonging to the Ministry of Patriots and Veterans Affairs or persons belonging to the relevant organization by persons, etc. of distinguished service to the State:

(a) One public official belonging to the Ministry of Patriots and Veterans Affairs;

(b) At least one attorney-at-law;

(c) At least one certified public accountant;

(d) Other persons with professional knowledge of and extensive experience in the relevant profit-making business, who are deemed necessary by the Minister.

(4) The chairperson of the Deliberative Committee shall be elected by the Deliberative Committee from among its members.

Article 20(Operation of Deliberative Committee) #

(1) The chairperson shall represent the Deliberative Committee and preside over its affairs.

(2) Where the chairperson is unable to perform any of his or her duties due to extenuating circumstances, a member designated by the Deliberative Committee shall perform the duties of the chairperson on his or her behalf.

(3) The Deliberative Committee shall hold its meetings with a majority of its incumbent members present, and pass resolutions with the consent of a majority of the members present.

(4) In addition to the matters provided for in paragraphs (1) through (3), matters necessary for the operation of the Deliberative Committee shall be prescribed by Ordinance of the Prime Minister.

[This Article Newly Inserted on Feb. 3, 2015]

[Previous Article 20 moved to Article 28 <Feb. 3, 2015>]

Article 21(Use of Profits) #

(1) Profits from profit-making business shall be used for the welfare of members of the relevant organization by persons, etc. of distinguished service to the State, its operation, and the objectives of its establishment, but welfare services for members shall take priority over other uses. <Amended on Jun. 8, 2021>

(2) An organization by persons, etc. of distinguished service to the State that engages in profit-making business shall submit a plan to use profits for the following year to the Deliberative Committee for deliberation not later than 30 days before the commencement of each fiscal year, and where it intends to amend the plan, such amendment shall be deliberated on by the Deliberative Committee in advance. <Amended on Jun. 8, 2021>

(3) Where the Deliberative Committee deems that a plan to use profits under paragraph (2) fails to fulfill the objectives of the use of profits under paragraph (1), it may present its opinion thereon.

[This Article Newly Inserted on Feb. 3, 2015]

Article 22(Financial Audits) #

(1) An organization by persons, etc. of distinguished service to the State that engages in profit-making business shall undergo a financial audit for any profit-making business whose scale exceeds that prescribed by Ordinance of the Prime Minister to be conducted by an accounting corporation designated by the Deliberative Committee (hereafter in this Article referred to as "certified accounting agency") among accounting corporations under Article 23 of the Certified Public Accountant Act, within three months after the end of each fiscal year. <Amended on Jun. 8, 2021>

(2) A certified accounting agency shall conduct a financial audit under paragraph (1) within the period prescribed by Ordinance of the Prime Minister and submit the results thereof to the organization by persons, etc. of distinguished service to the State that engages in profit-making business. In such cases, the organization by persons, etc. of distinguished service to the State that engages in profit-making business shall submit the results of the financial audit to the Deliberative Committee within 15 days after the financial audit is completed. <Amended on Jun. 8, 2021>

(3) The Deliberative Committee may present its opinion on the operation of profit-making business in consideration of the results of a financial audit under paragraph (2).

(4) Every year, the Minister shall direct public officials under his or her jurisdiction to conduct regular inspections and audits of profit-making business conducted by organizations by persons, etc. of distinguished service to the State pursuant to Article 17 (1). <Amended on Jun. 8, 2021>

[This Article Newly Inserted on Feb. 3, 2015]

Article 22-2(Fact-Finding Surveys) #

(1) The Minister may conduct fact-finding surveys regarding the operation of profit-making business to ensure that each organization by persons, etc. of distinguished service to the State conducts such business in a sound manner.

(2) Where necessary for fact-finding surveys under paragraph (1), the Minister may request the head of the relevant central administrative agency, the head of a local government, or the head of a public institution under the Act on the Management of Public Institutions (hereinafter referred to as the "head of the relevant agency") to submit data. In such cases, the head of the relevant agency requested to submit data shall comply with such request unless there is good cause.

(3) Matters necessary for methods for a fact-finding survey under paragraph (1) and other necessary matters shall be prescribed by Ordinance of the Prime Minister.

[This Article Newly Inserted on Jun. 8, 2021]

Article 22-3(Disclosure of Information or Data on Profit-Making Business) #

(1) The Minister shall disclose the following information or data on organizations by persons, etc. of distinguished service to the State that have obtained approval of profit-making business on the website of the Ministry of Patriots and Veterans Affairs within 180 days after the end of each fiscal year, as prescribed by Ordinance of the Prime Minister:

1. Data on the results of financial audits under Article 22 (2);

2. Financial and accounting data prepared in compliance with the financial and accounting standards prescribed in Article 27-2;

3. Other information or data prescribed by Ordinance of the Prime Minister in relation to the current status, etc. of the operation of profit-making business.

(2) Where necessary to disclose information or data pursuant to paragraph (1), the Minister may request the head of the relevant agency to submit data on organizations by persons, etc. of distinguished service to the State that have obtained approval of profit-making business pursuant to Article 18 (1). In such cases, the head of the relevant agency requested to submit data shall comply with such request unless there is good cause.

[This Article Newly Inserted on Jun. 8, 2021]

Article 23(Suspension or Revocation of Approval of Profit-Making Business) #

(1) Where an organization by persons, etc. of distinguished service to the State that has obtained approval of profit-making business under Article 18 (1) falls under any of the following cases, the Minister may order it to suspend the relevant profit-making business for up to six months or may revoke approval of such business: Provided, That in cases falling under subparagraph 1, 2, or 5, the approval shall be revoked:

1. Where it has obtained approval of the profit-making business or approval for change thereof under Article 18 (1) or (2) by fraud or other improper means;

2. Where it closes the profit-making business approved under Article 18 (1);

3. Where it ceases to conduct the profit-making business approved under Article 18 (1) for at least two years;

4. Where it fails to meet the requirements for approval prescribed in Article 18 (3);

5. Where it lends its name to any third person to allow such person to engage in profit-making business, in violation of Article 18-3 (1);

6. Where it refuses, obstructs, or evades a financial audit under Article 22 (1) or a regular inspection and audit under Article 22 (4);

7. Where it refuses, obstructs, or evades a fact-finding survey under Article 22-2 (1);

8. Where it fails to comply with corrective measures prescribed in Article 25;

9. Where it refuses, obstructs, or evades an inspection or examination conducted under Article 26 (1);

10. Where it refuses to file a report or to submit documents or data prescribed in Article 27, or files a false report or submits false documents or data;

11. Where it conducts the profit-making business during the period of business suspension;

12. Where it is subject to restrictions on qualifications for participation in tendering procedures under Article 27 of the Act on Contracts to Which the State Is a Party;

13. Where it is subject to restrictions on qualifications for participation in tendering procedures under Article 31 of the Act on Contracts to Which a Local Government Is a Party;

14. Where it falls under Article 11 (2) 1 or 3 of the Act on Facilitation of Purchase of Small and Medium Enterprise-Manufactured Products and Support for Development of Their Markets.

Article 24(Hearings) #

Where the Minister intends to suspend profit-making business or revoke approval thereof under Article 23 (1), he or she shall hold a hearing. <Amended on Jun. 8, 2021>

[This Article Newly Inserted on Feb. 3, 2015]

Article 25(Corrective Measures) #

Where any organization by persons, etc. of distinguished service to the State that engages in profit-making business falls under any of the following, the Minister may order it to take corrective measures: <Amended on Jun. 8, 2021>

1. Where it violates any Act, or engages in profit-making business in a way incompatible with the objectives of its establishment;

2. Where it uses profits contrary to a plan to use profits;

3. Where it violates this Act, or instruction issued under any Act or subordinate statute prescribed by Ordinance of the Prime Minister, or its articles of incorporation.

[This Article Newly Inserted on Feb. 3, 2015]

Article 26(Inspection by Administrative Agencies) #

(1) Where the Minister deems it necessary, he or she may require relevant public officials to inspect the accounting conditions of each organization by persons, etc. of distinguished service to the State or examine other necessary documents. <Amended on Jun. 8, 2021>

(2) In cases falling under paragraph (1), a relevant public official shall carry an identification indicating his or her authority and present it to the relevant persons.

[This Article Wholly Amended on Jul. 14, 2011]

[Moved from Article 17 <Feb. 3, 2015>]

Article 27(Requests for Reporting or Submission of Data) #

The Minister may request each organization by persons, etc. of distinguished service to the State to file a report or submit documents or other data with regard to matters necessary for the enforcement of this Act, such as approval of profit-making business under Article 18, fact-finding surveys under Article 22-2, and disclosure of information on profit-making business under Article 22-3 (1).

[This Article Wholly Amended on Jun. 8, 2021]

Article 27-2(Compliance with Financial and Accounting Standards) #

Each organization by persons, etc. of distinguished service to the State shall manage budgets or accounts in compliance with the standards concerning finance and accounting prescribed by Ordinance of the Prime Minister.

[This Article Newly Inserted on Jun. 8, 2021]

Article 28(Grounds for Dissolution) #

Each organization by persons, etc. of distinguished service to the State shall be dissolved on any of the following grounds: <Amended on Jun. 8, 2021>

1. Where any ground for dissolution prescribed by its articles of incorporation exists;

2. Where a resolution for its dissolution is adopted at its general meeting.

[This Article Wholly Amended on Jul. 14, 2011]

[Moved from Article 20 <Feb. 3, 2015>]

Article 29(Prohibition of Use of Similar Names) #

No person other than an organization by persons, etc. of distinguished service to the State under this Act shall use the name of an organization by persons, etc. of distinguished service to the State or a name similar thereto.

[This Article Newly Inserted on Jun. 8, 2021]

Article 30(Penalty Provisions) #

Any of the following persons shall be punished by imprisonment with labor for up to one year or by a fine not exceeding 10 million won:

1. A person who obtains approval of profit-making business or approval for change thereof or who allows other persons to obtain such approval under Article 18 (1) and (2) by fraud or other improper means;

2. A person who lends the name of each organization by persons, etc. of distinguished service to the State to any third person to allow him or her to engage in profit-making business in violation of Article 18-3 (1) or who engages in profit-making business under the name of each organization by persons, etc. of distinguished service to the State in violation of paragraph (2) of the same Article.

[This Article Newly Inserted on Jun. 8, 2021]

Article 31(Joint Penalty Provisions) #

If the representative of an organization by persons, etc. of distinguished service to the State or an agent, employee of, or any other person employed by, such organization or an individual commits an offense specified in Article 30 in conducting the business affairs of the organization or individual, not only shall the offender be punished but the organization or individual shall be punished by a fine provided in the relevant Article: Provided, That the same shall not apply where such organization or individual has not been negligent in giving due attention and supervision concerning the relevant business affairs to prevent such offense.

[This Article Newly Inserted on Jun. 8, 2021]

Article 32(Administrative Fines) #

(1) Any of the following persons shall be subject to an administrative fine not exceeding five million won:

1. A person who fails to file a report under Article 13-2 (4) or files a false report;

2. A person who conducts profit-making business without obtaining approval under Article 18 (1);

3. A person who fails to obtain approval for change under Article 18 (2);

4. A person who refuses, obstructs, or evades a financial audit under Article 22 (1) or a regular inspection and audit under paragraph (4) of the same Article;

5. Where it refuses, obstructs, or evades a fact-finding survey conducted under Article 22-2 (1);

6. Where it refuses, obstructs, or evades an inspection or examination conducted under Article 26 (1);

7. A person who fails to comply with the financial and accounting standards under Article 27-2.

(2) Any of the following persons shall be subject to an administrative fine not exceeding three million won:

1. A person who refuses to file a report or to submit documents or data under Article 27 without reasonable grounds, or files a false report or submits false documents or data;

2. A person who uses the name of an organization by persons, etc. of distinguished service to the State or a name similar thereto, in violation of Article 29.

(3) Administrative fines under paragraphs (1) and (2) shall be imposed and collected by the Minister, as prescribed by Presidential Decree.

[This Article Newly Inserted on Jun. 8, 2021]