Article 1(Purpose) #
The purpose of this Decree is to provide for matters delegated pursuant to the Local Subsidy Act, and matters necessary for the enforcement thereof.
[This Article Wholly Amended on Dec. 30, 2011]
Article 2(Calculation Date of Amount of Subsidies) #
Local subsidies (hereinafter referred to as "subsidies") shall be calculated as of January 1 of each year: Provided, That special subsidies under Article 9 of the Local Subsidy Act (hereinafter referred to as the "Act") shall be calculated as at the time a ground for granting such special subsidies arises.
[This Article Wholly Amended on Dec. 30, 2011]
Article 3(Data for Calculation of Subsidies) #
(1) The head of each local government shall provide the Minister of the Interior and Safety with data (limited to matters concerning the special subsidy tax under Article 9 (1) 2 of the Act and the fire safety subsidies under Article 9-4 of the Act; hereinafter the same shall apply) necessary for calculation of subsidies of the relevant local government: Provided, That a Special Metropolitan City Mayor or Metropolitan City Mayor shall incorporate such data with data from autonomous Gus under his/her jurisdiction and provide them to the Minister of the Interior and Safety. <Amended on Mar. 23, 2013; Nov. 19, 2014; Dec. 31, 2014; Jul. 26, 2017>
(2) The head of a Si/Gun shall provide data for calculation of subsidies pursuant to paragraph (1) through a Metropolitan City Mayor or a Do Governor (hereinafter referred to as the "Mayor/Do Governor"), and the relevant Mayor/Do Governor shall inspect such data and provide them to the Minister of the Interior and Safety with his/her opinions attached thereto. <Amended on Mar. 23, 2013; Nov. 19, 2014; Dec. 31, 2014; Jul. 26, 2017>
(3) The head of each local government shall prepare and keep the register in which details on data for calculation of subsidies under paragraph (1) are recorded.
(4) If the head of a central administrative agency receives a request from the Minister of the Interior and Safety to provide data necessary for calculation of subsidies with regard to office duties under his/her supervision, he/she shall cooperate on such request. <Amended on Mar. 23, 2013; Nov. 19, 2014; Dec. 31, 2014; Jul. 26, 2017>
[This Article Wholly Amended on Dec. 30, 2011]
Article 3-2(Inspection on Data for Calculation of Subsidies) #
(1) The Minister of the Interior and Safety may inspect the register prepared and kept by the head of each local government (excluding an autonomous Gu) pursuant to Article 3 (3), in order to confirm whether data for calculation of subsidies provided under Article 3 (1) are compiled correctly. <Amended on Mar. 23, 2013; Nov. 19, 2014; Dec. 31, 2014; Jul. 26, 2017>
(2) The Minister of the Interior and Safety may entrust the Mayor/Do Governor with an inspection on data for calculation of a Si/Gun's subsidies under paragraph (1). In such cases, the Mayor/Do Governor entrusted with the inspection shall report the results thereof to the Minister of the Interior and Safety. <Amended on Mar. 23, 2013; Nov. 19, 2014; Dec. 31, 2014; Jul. 26, 2017>
[This Article Wholly Amended on Dec. 30, 2011]
Article 3-3 #
Deleted. <Dec. 27, 2006>
Article 4(Basis for Calculation of General Subsidies) #
General subsidies under Article 6 (1) of the Act shall be calculated on the basis of the amount of shortage that standard amount of financial revenue supplemented and corrected under Article 8 falls short of the standard amount of financial demand supplemented and corrected under Article 7.
[This Article Wholly Amended on Dec. 30, 2011]
Article 5(Items for Estimate and Estimation Unit) #
(1) The items for estimate and the estimation unit under Article 7 (2) of the Act shall be as listed in attached Table 1.
(2) The calculation standards for the estimation unit under paragraph (1) shall be as listed in attached Table 2.
[This Article Wholly Amended on Dec. 30, 2011]
Article 6(Standards for Expenses per Unit) #
The expenses per unit under Article 7 (2) of the Act shall be determined by classifying them according to a Special Metropolitan City, Metropolitan City, Special Self-Governing City, Do, Special Self-Governing Province, Si and Gun. In such cases, such expenses per unit shall be determined in consideration of the basic tax rate that is calculated pursuant to Article 8 (2) of the Act on the basis of the relevant local government's budget for the immediately preceding year, and where there are changes in any factors determining expenses per unit, such as inflation of prices and financial conditions, such changes shall be reflected in the determination of the expenses per unit.
[This Article Wholly Amended on Dec. 30, 2011]
Article 7(Supplementation and Correction of Standard Amount of Financial Demand) #
(1) The adjustment of expenses per unit, or supplementation and correction of the standard amount of financial demand, under Article 7 (3) of the Act shall be made in accordance with the specified standards or objective principles based on the calculation standards for estimation unit, expenses per unit, price index, and other matters concerning the calculation of the standard amount of financial demand.
(2) "Islands and remote places prescribed by Presidential Decree" in Article 7 (3) 1 of the Act and "underdeveloped regions prescribed by Presidential Decree" in Article 7 (3) 2 of the Act mean as follows: <Amended on Mar. 23, 2013; Nov. 19, 2014; Jul. 26, 2017; Jun. 22. 2021>
1. Islands designated by the Minister of the Interior and Safety under Article 4 (2) of the Islands Development Promotion Act;
2. Regions designated by the Minister of the Interior and Safety, which are located far from cities, have low accessibility due to inconvenient transportation, and whose residents have markedly low income and living standards (excluding islands under subparagraph 1).
(3) In order to consider the extraordinary nature of islands or remote places and promote the balanced development of underdeveloped regions under Article 7 (3) of the Act, an increased amount in general management expenses and regional management expenses may be calculated. <Amended by Apr. 22, 2014>
(4) The standard amount of financial demand may be supplemented and corrected only in any of the following cases:
1. Where the numerical value of an estimation unit sharply increases or decreases after the base date of data preparation for calculation of subsidies;
2. Where an administrative or financial demand for newly addition or exclusion occurs after the items for estimate and the estimation unit have been determined;
3. Where project expenses to be borne by local governments increase due to the suspension of subsidization by the National Treasury, such expenses, and where project expenses indispensible for the implementation of national policies are additionally required;
4. Where it is necessary to reserve separate funds including natural disaster recovery expenditure or an amount of redemption of a municipal debt to be borne by local governments;
5. Where the expenses per estimation unit gradually increase or decrease according to the size and density of the numerical value of an estimation unit;
Article 7-2(Special Cases Concerning Supplementation and Correction of Standard Amount of Financial Demand of Sejong Special Self-Governing City) #
(1) When the Minister of the Interior and Safety supplements and corrects the standard amount of financial demand under Article 14 (2) of the Special Act on the Establishment, etc. of Sejong Special Self-Governing City, he/she shall do so by adding the amount equivalent to 25/100 of the difference between the standard amount of financial demand and the standard amount of financial revenue to the standard amount of financial demand. <Amended on Mar. 23, 2013; Apr. 22, 2014; Nov. 19, 2014; Jul. 26, 2017>
(2) In order to supplement and correct the standard amount of financial demand under paragraph (1), the Sejong Special Self-Governing City Mayor shall provide the Minister of the Interior and Safety each year with the data concerning the financial demand which is excluded from the items for estimate, or which is included in the items for estimate but requires additional financial resources <Amended on Mar. 23, 2013; Nov. 19, 2014; Jul. 26, 2017>
[This Article Newly Inserted on Jan. 1, 2013]
Article 8(Supplementation and Correction of Standard Amount of Financial Revenue) #
(1) The standard amount of financial revenue referred to in Article 8 (3) of the Act shall be supplemented and corrected by the real estate subsidy revenue, non-tax revenue, etc. of the relevant local government. In such cases, specific revenues to be supplemented and corrected, methods of supplementation and correction, and other matters shall be prescribed by Ordinance of the Ministry of the Interior and Safety. <Amended on Mar. 23, 2013; Nov. 19, 2014; Dec. 10, 2015; Jul. 26, 2017>
(2) The standard amount of financial revenue shall be supplemented and corrected in consideration of any factors influencing a change in tax revenues, on the basis of the outlook or the result, etc. of the collection of local tax and non-tax revenues.
[This Article Wholly Amended on Dec. 30, 2011]
Article 9 #
Deleted. <Dec. 30, 2011>
Article 9-2(Standards for Granting Special Subsidies, etc.) #
(1) The standards for granting special subsidies for each case under Article 9 (1) of the Act shall be as follows: <Amended on Apr. 22, 2014>
1. Special subsidies under Article 9 (1) 1 of the Act: It shall be granted where a special financial demand occurs due to installation of local public facilities, etc.;
2. Special subsidies under Article 9 (1) 2 of the Act: It shall be granted where a special financial demand occurs to offset the share of local expenses to be borne due to various disasters, safety control, etc.;
3. Special subsidies under Article 9 (1) 3 of the Act: It shall be granted where a special financial demand occurs to revitalize a local economy, stabilize the livelihood of residents, strengthen the local administrative function, implement policies related to national events, provide financial support for local governments with excellent performance of local administration and financial management, or implement other important policies.
(2) The criteria for selecting a local government that has achieved excellent outcomes in local administration and financial management under Article 9 (1) 3 of the Act shall be as follows: <Amended on Mar. 23, 2013; Apr. 22, 2014; Nov. 19, 2014; Jul. 26, 2017>
1. A local government that has achieved excellent performance in the appraisal conducted by the State in regard to the outcomes in the fields of administrative and financial management;
2. A local government that has achieved excellent performance in the field of resident welfare, local economy, local development, processing of civil complaints, informatization, etc.;
3. A local government recognized by the Minister of the Interior and Safety as having proactively cooperated in the promotion of State policies.
(3) Special subsidies shall be granted as promptly as possible so that any project that has the relevant financial demand is carried out smoothly.
[This Article Wholly Amended on Dec. 30, 2011]
Article 10 #
Deleted. <Dec. 31, 2004>
Article 10-2 #
Deleted. <Dec. 31, 2014>
Article 10-3(Standards, etc. for Granting Real Estate Subsidies) #
(1) The standards for granting real estate subsidies under Article 9-3 (2) of the Act shall be as follows: <Amended on Dec. 10, 2015>
1. A Special Self-Governing City, and a Si/Gun/autonomous Gu: The amount calculated according to the following criteria and percentages:
(a) Financial conditions: 50/100;
(b) Social welfare: 35/100;
(c) Regional education: 10/100;
(d) Scale of real estate holding taxes: 5/100;
2. Jeju Special Self-Governing Province: The amount equivalent to 18/1,000 of the total amount of real estate subsidies.
(2) The amount adjusted owing to the difference between the estimated comprehensive real estate holding tax and the settled amount thereof pursuant to Article 5 (3) 2 of the Act shall be granted according to the standards for granting real estate subsidies that are in force as at the time such difference occurs. <Amended on Apr. 22, 2014>
(3) Real estate subsidies shall be granted from December 16 to December 31 of each year, but may be granted prior to such period within allowable budgetary limits.
(4) Detailed matters concerning the calculation of the amount of real estate subsidies granted to each local government under paragraph (1); the procedures and methods for granting the real estate subsidies; and other necessary matters shall be prescribed by Ordinance of the Ministry of the Interior and Safety. <Amended on Mar. 23, 2013; Nov. 19, 2014; Jul. 26, 2017>
[This Article Wholly Amended on Dec. 30, 2011]
Article 10-4(Standards, etc. for Granting Firefighting Safety Subsidies) #
(1) Firefighting safety subsidies referred to in Article 9-4 (1) of the Act shall be granted to the Special Metropolitan City, Metropolitan Cities, the Special Self-Governing City, Dos, and the Special Self-Governing Province (hereinafter referred to as “Cities and Dos”). In such cases, firefighting safety subsidies shall be granted to Cites and Dos having jurisdiction over a large city with the population of not less than one million that conduct affairs for firefighting pursuant to subparagraph 4 of Article 59 of the Special Act on Local Autonomy, Decentralization, and Balanced Regional Development, separately from the firefighting safety subsidies to be paid to such large city. <Amended on May 21, 2018; Jul. 7, 2023>
(2) Projects for which firefighting safety subsidies referred to in paragraph (1) may be used shall be as follows: <Amended on Mar. 10, 2020>
1. In the field of firefighting services: The following projects:
(a) Operating firefighting personnel;
(b) Expanding firefighting facilities (including firefighting equipment; hereinafter the same shall apply) and strengthening fire safety management;
2. In the field of safety: Expanding safety facilities and strengthening safety management.
(3) The standards for granting firefighting safety subsidies under Article 9-4 (2) of the Act shall be as follows: <Amended on Mar. 10, 2020>
1. The amount specified in the proviso of Article 9-4 (2) of the Act among the firefighting safety subsidies: Supplementing firefighting personnel;
2. Firefighting safety subsidies, other than the amount specified in subparagraph 1: The ratio specified in the following detailed criteria:
(a) Status of firefighting and safety facilities, and required investment: 40/100;
(b) Endeavor to prevent disasters and reinforce safety: 40/100;
(c) Financial conditions: 20/100.
(4) The amount adjusted owing to the difference between the budget amount equivalent to 45/100 of the total amount of individual consumption tax levied on tobacco referred to in Article 5 (3) 3 of the Act and the settled account thereof shall be granted according to the standards for granting firefighting safety subsidies that are in force as at the time such difference occurs.
Article 11(Notification of Subsidies) #
The Minister of the Interior and Safety shall notify each local government of the total amount of subsidies to be granted to the relevant local government prior to the beginning of each fiscal year: Provided, That where the total amount of subsidies is changed during the fiscal year, or where the amount of subsidies of the relevant local government is changed due to any other special reason, he/she shall notify the relevant local government thereof on each occasion. <Amended on Mar. 23, 2013; Nov. 19, 2014; Dec. 31, 2014; Jul. 26, 2017>
[This Article Wholly Amended on Dec. 30, 2011]
Article 12(Return or Reduction of Subsidies) #
(1) The following are prescribed as circumstances in which a local government makes excessive expenditures or neglects in collecting revenues as referred to in Article 11 (2) of the Act, and the scope of subsidies to be reduced or returned in such circumstances: <Amended on Jan. 1, 2013; Mar. 23, 2013; Nov. 19, 2014; Nov. 28, 2014; Dec. 10, 2015; Apr. 28, 2016; Jul. 26, 2017; Jul. 13, 2021; Dec. 16, 2021>
1. Where the local government issues municipal bonds, without obtaining approval for issuance thereof from the Minister of the Interior and Safety or complying with the terms and conditions of approval pursuant to the proviso to Article 11 (2) of the Local Finance Act and Article 11 (3) of the said Act: Not more than the amount spent without obtaining approval or complying with the terms and conditions of approval;
1-2. Where the local government makes an investment or provides funding in violation of Article 18 of the Local Finance Act: Not more than the amount invested or funded in violation of such Article;
1-3. Where the local government grants a local subsidy as operating expenses in violation of the proviso of Article 6 (2) of the Act on the Management of Local Government Subsidies: Not more than the amount granted as operating expenses in violation of the proviso of that Article;
1-4. Where the local government spends a local subsidy without deliberation required under Article 26 (2) of the Act on the Management of Local Government Subsidies or accepting the result of deliberation: Not more than the amount spent without either deliberation or accepting the result of deliberation;
1-5. Where the local government grants a local subsidy in duplicate or to an ineligible person in violation of the duty of management referred to in Article 6 (3) of the Act on the Management of Local Government Subsidies: Not more than the amount granted in duplicate or to the eligible person;
1-6. Where the local government that is a local government-subsidized project operator uses a local subsidy for other purpose in violation of Article 13 of the Act on the Management of Local Government Subsidies: Not more than the amount used for other purpose;
1-7. Where the local government that is a local government-subsidized project operator use a local subsidy without approval required under Article 14 of the Act on the Management of Local Government Subsidies or complying with the terms and conditions of approval in violation of that Article: Not more than the amount used without approval or complying with the terms and conditions of approval;
Article 12-2 #
Deleted. <Jul. 20, 2008>
Article 13(Cases of Changes in Jurisdictions and of Abolition, Establishment, Division and Merger of Local Governments) #
The Minister of the Interior and Safety shall, where local governments are abolished, established, divided or merged, or have changes in jurisdictions, adjust the subsidies to be granted to the relevant local government in accordance with the following classifications: <Amended on Dec. 31, 2014; Jul. 26, 2017>
1. Where two or more local governments are merged into a new local government: The general subsidies, real estate subsidies, and fire safety subsidies which were supposed to be granted to the previous local governments shall be granted to the new local government;
2. Where the jurisdiction of a local government is changed, or where one local government is divided into two or more local governments: The general subsidies, real estate subsidies, and fire safety subsidies to be granted to the new local government shall be recalculated pursuant to Articles 6 through 8, 9-3 and 9-4 of the Act, on the basis of the general subsidies, real estate subsidies, and fire safety subsidies which were supposed to be granted to the previous local government: Provided, That if the jurisdiction change of the local government is minor or is confined to part of its jurisdiction, the general subsidies, real estate subsidies, and fire safety subsidies may be adjusted when the subsidies for the next year are calculated;
3. Where local governments are abolished, established, divided, or have changes in jurisdictions, the special subsidies to be granted to a new local government shall be recalculated in consideration of the conditions under Article 9 (1) of the Act.
[This Article Wholly Amended on Dec. 30, 2011]
Article 14(Filing Objections to Amount of Subsidies) #
Where the Minister of the Interior and Safety deems that any application for complaint filed by a local government pursuant to Article 13 (1) of the Act is reasonable, he/she shall increase or reduce the standard amount of financial demand and the standard amount of financial revenue of the relevant local government when calculating the subsidies for the next period, and shall notify the relevant local government of the result thereof. <Amended on Mar. 23, 2013; Nov. 19, 2014; Jul. 26, 2017>
[This Article Wholly Amended on Dec. 30, 2011]
Article 15(Disclosure of Details of Reduced Subsidies) #
The Minister of the Interior and Safety may disclose through the media, etc. the details of self-directed efforts reflected under Article 8-3 of the Act and the details of decision on return or reduction of subsidies under Article 12 (1). <Amended on Mar. 23, 2013; Nov. 19, 2014; Jul. 26, 2017>
[This Article Newly Inserted on Dec. 30, 2011]