Article 1(Purpose) #
The purpose of this Act is to ensure fairness and transparency in the use of charges with the aims to minimize inconvenience to citizens and to facilitate economic activities of enterprises by prescribing basic matters concerning the establishment, management and use of charges.
[This Article Wholly Amended on Mar. 31, 2010]
Article 2(Definition) #
The term "charges" used in this Act means financial obligations other than taxes (excluding those having the character of deposit or security money to secure performance of a particular obligation), such as share of expenses, dues, contributions or under whatever title, imposed by a person authorized to impose financial burden under Acts (hereinafter referred to as "person authorized to impose charges"), such as the heads of central administrative agencies, local governments or public organizations, corporations, etc. entrusted with administrative authority, as prescribed by Acts in connection with a specific public benefit project irrespective of the provision of goods or services.
[This Article Wholly Amended on Mar. 31, 2010]
Article 3(Restrictions on creation of charges) #
No charge shall be created unless it complies with Acts prescribed in the Appendix.
[This Article Wholly Amended on Mar. 31, 2010]
Article 4(Requirements for imposition of charges) #
Acts serving as the basis for imposing charges shall specifically and clearly prescribe matters such as persons imposing and collecting charges, purpose of creating charges, requirements for imposition, standards for calculation, methods of calculation, rate of imposition, etc. (hereinafter referred to as "requirements for imposition, etc."); provided, the detailed requirements for imposition, etc. may be prescribed by Presidential Decree, Ordinance of the Prime Minister, Ministerial Ordinance, municipal ordinance or municipal rule, as delegated to such extent specifically prescribed by relevant Acts.
[This Article Wholly Amended on Mar. 31, 2010]
Article 5(Principles for imposition of charges) #
(1) Charges shall be imposed to a minimum extent necessary to fulfill the purpose of creation so that impartiality and transparency are secured, and no charges shall be imposed twice on the same subject of imposition unless any extraordinary grounds exist.
(2) Where a person authorized to impose charges imposes such charges, he or she shall, in advance, notify a person obligated to pay charges of the following: <Amended on Dec. 29, 2015>
1. The person obligated to pay charges;
2. Legal grounds for the imposition of charges, amounts of payment, grounds for calculation and measures to be taken in cases of default;
3. Requirements for reduction and exemption of charges and methods thereof;
4. Use of charges;
5. The fact that opinions may be submitted in relation to subparagraph 2 and remedies for non-submission;
6. Name and address of the institutions that receive opinions;
7. Deadline for submitting opinions;
8. Other matters necessary for the imposition and payment of charges.
(3) If the person authorized to impose charges recognizes that the opinions submitted by a person obligated to pay charges as prescribed in paragraph (2)5 are reasonable, he or she shall reflect such opinions.
(4) The person authorized to impose charges may elect not to notify the persons obliged to pay charges of the matters referred to in paragraph (2) in any of the following cases:
1. Where an urgent disposition is needed for public safety or welfare; provided, it shall be limited to cases prescribed by relevant statutes or regulations;
2. Where appropriate reasons exist to recognize that hearing opinions is substantially impracticable or obviously unnecessary, in light of the nature of the relevant disposition;
3. Where relevant statutes or regulations prescribe the base date for imposition, period of imposition, deadline for payment, etc., of charges, and charges are imposed regularly on an annual basis, including matters referred to in the subparagraphs of paragraph (2); provided, this shall not apply to cases where charges are first imposed on a person obligated to pay charges, and where there have been changes in the requirements for imposition of charges, such as an increase in the rate of imposition, changes in the subject of imposition, etc.
Article 5-2(Establishment of period of existence of charges) #
(1) Where charges are newly created or the subjects of imposition are expanded, the term of existence of such charges shall be specified in statutes or regulations; provided, this shall not apply where obvious reasons exist to continue such charges.
(2) The term of existence prescribed in paragraph (1) shall be set up at a minimum period necessary to achieve the purpose of charges, and such period shall not exceed 10 years.
[This Article Added on Mar. 31, 2010]
Article 5-3(Additional charges) #
(1) Where a person obligated to pay charges fails to do so by the deadline for payment, additional charges, etc. may be imposed and collected, as prescribed by relevant statutes or regulations.
(2) Where provisions imposing additional charges, etc. are to be prescribed in the relevant statutes or regulations pursuant to paragraph (1), the additional charges, etc. shall not exceed the following amounts: <Amended on Dec. 29, 2015; Jun. 15, 2021>
1. Additional charges, etc. imposed, where charges are not fully paid by the deadline: An amount equivalent to 3/100 of the charges in arrears;
2. Charges, etc. added to the additional charges, etc. originally imposed under subparagraph 1, where the charges in arrears are not paid: An amount equivalent to 25/100000 of the charges in arrears per day during the default period.
[This Article Added on Mar. 31, 2010]
Article 5-4(Procedures for legal remedy) #
Appropriate procedures for legal remedies shall be clearly prescribed by relevant statutes or regulations to enable a person obligated to pay charges to file an objection, etc. where his or her right or interest has been infringed upon by the imposition and collection of unlawful or unreasonable charges.
[This Article Added on Mar. 31, 2010]
Article 6(Examination concerning creation or modification of charges) #
(1) Where the heads of central administrative agencies intend to create charges (including expansion of the subjects of imposition and raising the rate of imposition; hereinafter the same shall apply) with regard to the duties under their jurisdiction, they shall request the Minister of Planning and Budget to examine the validity of creating charges, before giving an advance notice of legislation of the relevant bill, or before creating or modifying the charges in question. <Amended on Dec. 29, 2015; Oct. 1, 2025>
(2) The heads of central administrative agencies shall, when requesting the examination under paragraph (1), submit a plan on the creation or modification of charges (hereinafter referred to as "plan"). <Amended on Dec. 29, 2015>
(3) Upon receipt of a request for examination under paragraph (1), the Minister of Planning and Budget shall order the Charges Operation Deliberative Committee established under Article 9 to deliberate on whether the creation or modification of charges complies with the following standards: <Amended on Dec. 29, 2015; Oct. 1, 2025>
1. The creation of charges shall have clear purposes;
2. The requirements for the imposition of charges shall be specified in a concrete and clear manner;
3. The necessity for raising financial resources from charges and purposes of use thereof shall be fair and transparent;
4. No charge to be created shall overlap with existing charges;
5. The imposition of charges shall be more appropriate than taxes;
6. That the term of existence of charges is set at a minimum period necessary to fulfill the purpose thereof; provided, where obvious reasons exist to continue such charges, this shall not apply.
(4) Where the Minister of Planning and Budget deems that, upon examination under paragraph (3), the creation or modification of charges fails to fulfill the standards prescribed under any subparagraph of the same paragraph, he or she may request the heads of central administrative agencies who have submitted the plans to reexamine or modify such plans. <Amended on Dec. 29, 2015; Oct. 1, 2025>
[This Article Wholly Amended on Mar. 31, 2010]
[Title of This Article Amended Dec. 29, 2015]
Article 6-2(Submission of comprehensive plans for operation of charges to National Assembly) #
(1) The head of the competent central administrative agency in control of the Acts that prescribe matters in relation to charges (hereinafter referred to as "head of the competent administrative agencies in control of charges") shall formulate plans, every year, for the operation of charges, including plans for the imposition of charges and use of collected charges for the following year and plans for implementing the evaluation results of operation of charges under Article 8, and submit such plans to the Minister of Planning and Budget. <Amended on Mar. 31, 2020; Oct. 1, 2025>
(2) Upon receipt of plans for the operation of charges in accordance with paragraph (1), the Minister of Planning and Budget shall prepare comprehensive plans for the operation of charges based thereon, and submit such comprehensive plans to the National Assembly 120 days before the commencement of each fiscal year. <Amended on May 28, 2013; Oct. 1, 2025>
(3) Matters necessary for the formulation and submission of plans for the operation of charges and comprehensive plans for the operation of charges under paragraphs (1) and (2) shall be prescribed by Presidential Decree.
[This Article Added on Dec. 18, 2012]
Article 7(Submission of comprehensive reports on operation of charges to National Assembly) #
(1) The head of the competent central administrative agency in control of charges shall prepare, every year, reports on the operation of charges, including the records of imposition of charges during the previous year, detailed statements on the use of charges, and the records of implementing the evaluation results of operation of charges under Article 8, and submit such reports to the Minister of Planning and Budget. <Amended on Dec. 18, 2012; Mar. 31, 2020; Oct. 1, 2025>
(2) Upon receipt of the reports on the operation of charges in accordance with paragraph (1), the Minister of Planning and Budget shall prepare comprehensive reports on the operation of charges on the basis of the reports he or she has received, and submit such comprehensive reports to the National Assembly not later than May 31 of each year. <Amended on Oct. 1, 2025>
(3) Matters necessary for the formulation and submission of reports on the operation of charges or comprehensive reports on the operation of charges shall be prescribed by Presidential Decree.
[This Article Wholly Amended on Mar. 31, 2010]
Article 8(Evaluating operation of charges) #
(1) The Minister of Planning and Budget shall verify and evaluate the purposes of imposing charges, imposition status, sound use of charges, procedural justice for the imposition of charges, and need for the retention of charges on a continual basis, to ensure appropriate operation of the charges. In such cases, the need for retaining each charge shall be reviewed and evaluated once every 3 years, and comprehensive reports on the operation of charges under Article 7(2) shall include such results to be submitted to the National Assembly. <Amended on Dec. 29, 2015; Oct. 1, 2025>
(2) Where the Minister of Planning and Budget deems, upon evaluation under paragraph (1), that the operation of charges is inappropriate or there is no need to maintain such charges, he or she may request the heads of the competent central administrative agencies in control of charges to improve systems with the aims of abolishing the relevant charges, etc. <Amended on Oct. 1, 2025>
(3) The heads of the competent central administrative agencies in control of charges who have received requests in accordance with paragraph (2) shall prepare measures, such as measures to amend statutes or regulations to abolish charges or establishment of systems that can substitute the charges, and consult with the Minister of Planning and Budget, unless there is a compelling reason not to do so. <Amended on Oct. 1, 2025>
(4) The Minister of Planning and Budget may operate a task force for evaluation of the operation of charges, in order to check and evaluate the actual status of operating charges, conduct specialized or technological research on the system of charges or seek advice. <Amended on Oct. 1, 2025>
(5) Matters necessary for the composition and operation of a task force for evaluating the operation of charges under paragraph (4) shall be prescribed by Presidential Decree.
[This Article Wholly Amended on Mar. 31, 2010]
Article 9(Charges Operation Deliberative Committee) #
(1) The Charges Operation Deliberative Committee (hereinafter referred to as the "Committee") shall be established under the Minister of Planning and Budget to deliberate on major policies concerning charges and direction for their operation. <Amended on Oct. 1, 2025>
(2) The Committee shall deliberate on the following matters:
1. Matters concerning the establishment, modification or abolishment of charges;
2. Results of the evaluation of charges by an evaluation task force under Article 8(4) and matters relating to requests for the improvement of systems;
3. Matters deemed to require the Committee’s deliberation and submitted for a meeting by the Chairperson;
4. Other matters prescribed by Presidential Decree.
(3) The Committee shall be comprised of the following persons: <Amended on Mar. 23, 2013; Nov. 19, 2014; Jul. 26, 2017; Oct. 1, 2025>
1. The Vice Minister of Planning and Budget;
2. Persons prescribed by Presidential Decree, from among public officials in general service in the Ministry of Finance and Economy, the Ministry of Interior and Safety, the Ministry of Planning and Budget, the Office for Government Policy Coordination or the Senior Executive Service of the competent central administrative agencies in control of charges;
3. Up to ten members from the private sector, who are commissioned by the Minister of Planning and Budget, from among persons with extensive knowledge and experience.
(5) Except as provided for in paragraphs (1) through (4), matters necessary for the composition and operation of the Committee shall be prescribed by Presidential Decree.
[This Article Wholly Amended on Mar. 31, 2010]
Article 10(Hearing of opinions on improvement of system of charges) #
(1) The Minister of Planning and Budget shall hear, and endeavor to reflect, opinions on the establishment, modification or abolishment of charges or the improvement of systems from relevant experts, economic organizations, non-profit and non-governmental organizations under Article 2 of the Assistance for Non-Profit, Non-Governmental Organizations Act or interested parties. <Amended on Dec. 29, 2015; Oct. 1, 2025>
(2) The Minister of Planning and Budget may hold a public hearing where it is deemed necessary to hear opinions. <Amended on Oct. 1, 2025>
(3) Matters regarding the methods or procedures for presenting opinions under paragraph (1) shall be prescribed by Presidential Decree.
[This Article Wholly Amended on Mar. 31, 2010]