Article 1(Purpose) #
The purpose of this Act is to support the preferential purchase of products manufactured in vocational rehabilitation facilities, etc. employing persons with severe disabilities, who are unlikely to be employed through competition, thereby helping persons with severe disabilities with vocational rehabilitation and contributing to the development of the national economy.
Article 2(Definitions) #
(1) The term "persons with severe disabilities" means the following persons suffering from substantial chronic impediment to vocational life due to physical or mental impairment significantly restricting their daily lives, among persons falling under the types and standards of disability defined in Article 2(2) of the Act on Welfare of Persons with Disabilities: <Amended on Aug. 4, 2011; Nov. 26, 2019>
1. Deleted; <Nov. 26, 2019>
2. Deleted; <Nov. 26, 2019>
3. Deleted; <Nov. 26, 2019>
4. Deleted; <Nov. 26, 2019>
5. Deleted. <Nov. 26, 2019>
(2) The term "products manufactured by persons with severe disabilities" means products manufactured in production facilities (hereinafter referred to as "production facilities for products manufactured by persons with severe disabilities") designated by the Minister of Health and Welfare pursuant to Article 9 or services, such as labor services, provided by the aforesaid production facilities, from among the following facilities or organizations: <Amended on Jan. 18, 2010; Aug. 4, 2011; May 20, 2014; May 29, 2016>
1. Vocational rehabilitation facilities for persons with disabilities under Article 58(1)3 of the Act on Welfare of Persons with Disabilities;
2. Welfare organizations for persons with disabilities under Article 63 of the Act on Welfare of Persons with Disabilities;
3. Rehabilitation training facilities under Article 27(1)2 of the Act on the Improvement of Mental Health and the Support for Welfare Services for Mental Patients.
(3) The term "public institutions" means public institutions defined in subparagraph 2 of Article 2 of the Act on Facilitation of Purchase of Small and Medium Enterprise-Manufactured Products and Support for Development of Their Markets. <Amended on May 21, 2009>
Article 3(Responsibilities of the State and local governments) #
The State and local governments shall provide support and implement policies necessary for promoting the preferential purchase of products manufactured by persons with severe disabilities in a comprehensive and effective manner.
Article 4(Formulation of plans to promote preferential purchase of products manufactured by persons with severe disabilities) #
(1) The Minister of Health and Welfare shall formulate and implement plans to promote the preferential purchase of products manufactured by persons with severe disabilities (hereinafter referred to as "plans to promote preferential purchase"), following deliberation by the Policy Coordination Committee for Persons with Disabilities under Article 11 of the Act on Welfare of Persons with Disabilities, at the beginning of each year. <Amended on Jan. 18, 2010; Jan. 9, 2024>
(2) Plans to promote preferential purchase shall include the following: <Amended on Aug. 4, 2011>
1. Basic objectives and directions to promote the preferential purchase of products manufactured by persons with severe disabilities;
2. Matters concerning the improvement and support of systems to promote the preferential purchase of products manufactured by persons with severe disabilities;
3. Matters concerning the procurement of products manufactured by persons with severe disabilities;
4. Matters concerning the operation of production facilities for products manufactured by persons with severe disabilities;
5. Other matters prescribed by Presidential Decree to promote the preferential purchase of products manufactured by persons with severe disabilities.
Article 5 #
Deleted. <Jan. 9, 2024>
Article 5-2(Investigations into actual conditions) #
(1) The Minister of Health and Welfare shall periodically investigate the actual conditions of the production facilities for products manufactured by persons with severe disabilities to formulate and implement a policy for promoting the preferential purchase of products manufactured by persons with severe disabilities, and incorporate the result in the plans to promote preferential purchase.
(2) The Minister of Health and Welfare may request a public institution or other related organization or institution to provide cooperation, such as the submission of necessary data, in investigating actual conditions pursuant to paragraph (1). In such cases, the public institution, etc. in receipt of such request shall comply therewith, unless there is a compelling reason not to do so.
(3) Matters necessary for methods, etc. for investigating actual conditions pursuant to paragraph (1) shall be prescribed by Decree of the Ministry of Health and Welfare.
[This Article Added on Mar. 13, 2018]
Article 6(Support for preferential purchase of products manufactured by persons with severe disabilities) #
(1) When public institutions are engaged in unreasonable and discriminatory practices or systems in purchasing products manufactured by persons with severe disabilities, the Minister of Health and Welfare shall request such institutions to take corrective measures. <Amended on Jan. 18, 2010>
(2) The Minister of Health and Welfare may request public institutions to preferentially purchase products manufactured by persons with severe disabilities, in order to promote the purchase of such products, and the relevant public institutions shall comply with such requests. <Amended on Jan. 18, 2010>
(3) The State and local governments shall subsidize expenses incurred in establishing or operating production facilities for products manufactured by persons with severe disabilities, as prescribed by Presidential Decree. <Amended on Aug. 4, 2011>
Article 7(Promoting purchases by public institutions) #
(1) The heads of public institutions shall promote the preferential purchase of products manufactured by persons with severe disabilities.
(2) The heads of public institutions shall submit the purchase plans for products manufactured by persons with severe disabilities and the results of purchases thereof in the preceding year to the Minister of Health and Welfare, as prescribed by Presidential Decree. <Amended on Aug. 4, 2011; Jan. 26, 2012; Feb. 6, 2024>
(3) The head of a public institution shall specify the following matters in the purchase plan to be submitted pursuant to paragraph (2); in such cases, when setting the purchase target under subparagraph 2, the scope of products and services, such as labor services, to be included in the total purchase amount may be otherwise determined, in consultation with the Minister of Health and Welfare, taking into account the characteristics of the public institution: <Added on Feb. 6, 2024>
1. The types and quantities of products or services to be purchased preferentially by public institutions;
2. A purchase target for products manufactured by persons with severe disabilities, at a rate, not less than the percentage determined by the Minister of Health and Welfare, within the limit of 2/100 of the total amount of purchases by each public institution (referring to the total amount of purchases of products and services such as labor services, excluding construction works).
(4) Public institutions may place separate orders for products manufactured by persons with severe disabilities. <Added on Mar. 13, 2018; Feb. 6, 2024>
(5) Public institutions may purchase products manufactured by persons with severe disabilities by negotiated contract, and an organization conducting affairs related to products manufactured by persons with severe disabilities under Article 11(1) or any similar institution prescribed by Presidential Decree may enter into such contract on behalf of the public institutions. <Amended on Aug. 4, 2011; May 20, 2014; Mar. 13, 2018; Feb. 6, 2024>
(6) The procedures and methods for concluding a negotiated contract under paragraph (5) shall be governed by relevant statutes, including the Act on Contracts to Which the State Is a Party. <Amended on Aug. 4, 2011; May 20, 2014; Mar. 13, 2018; Feb. 6, 2024>
(7) The head of a public institution shall include the purchase records of products manufactured by persons with severe disabilities, when conducting an evaluation of the institutions under his or her jurisdiction. <Amended on Aug. 4, 2011; Mar. 13, 2018; Feb. 6, 2024>
Article 7-2(Establishment and operation of preferential purchase management system of products manufactured by persons with severe disabilities) #
(1) The Minister of Health and Welfare may establish and operate preferential purchase management system of products manufactured by persons with severe disabilities in order to efficiently collect, manage, and provide plans to purchase products manufactured by persons with severe disabilities and records of purchasing such products in the previous year, and information concerning such products and manufacturing facilities thereof.
(2) The Minister of Health and Welfare shall ensure no use of information from the system under paragraph (1) for any purpose other than efficient preferential purchase and no infringement upon personal secrecy.
(3) The Minister of Health and Welfare may request the heads of public institutions and those of manufacturing facilities of products manufactured by persons with severe disabilities to provide information, if necessary for the establishment of the system referred to in paragraph (1). In such cases, the heads requested to provide information shall comply with such request except in extenuating circumstances.
[This Article Added on Feb. 3, 2016]
Article 7-3(Publication of purchase plans and results of products manufactured by persons with severe disabilities) #
(1) The Minister of Health and Welfare shall publish the purchase plans of products manufactured by persons with severe disabilities and the results of purchases thereof in the preceding year submitted pursuant to Article 7(2).
(2) Matters necessary for the standards, methods, procedures, etc. for publication pursuant to paragraph (1) shall be prescribed by Decree of the Ministry of Health and Welfare.
[This Article Added on Mar. 13, 2018]
Article 8(Quality certification of products manufactured by persons with severe disabilities) #
(1) The Minister of Health and Welfare may grant quality certification of products manufactured by persons with severe disabilities, in order to promote the sale of such products and improve the quality thereof. <Amended on Jan. 18, 2010>
(2) The Minister of Health and Welfare may designate a certifying institution to perform the duties of quality certification provided for in paragraph (1). <Amended on Jan. 18, 2010>
(3) Necessary matters concerning quality certification, such as quality certification procedures and standards and the designation of a certification institution, shall be prescribed by Presidential Decree.
Article 9(Designation of production facilities for products manufactured by persons with severe disabilities) #
(1) Anyone who intends to be designated as a production facility for products manufactured by persons with severe disabilities shall obtain designation from the Minister of Health and Welfare after meeting the requirements for production facilities, employment rate for persons with severe disabilities, and quality requirements prescribed by Presidential Decree for the period prescribed by Presidential Decree. In such cases, he or she may be re-designated, as prescribed by Presidential Decree, after the designated period expires. <Amended on Jan. 18, 2010; Aug. 4, 2011; May 20, 2014>
(2) No one shall use the title "production facility for products manufactured by persons with severe disabilities," without being designated as such facility pursuant to paragraph (1). <Amended on Aug. 4, 2011>
(3) No one who has been designated pursuant to paragraph (1) shall lend the name of a production facility for products manufactured by persons with severe disabilities to any other person. <Amended on Aug. 4, 2011>
[Title Amended on Aug. 4, 2011]
Article 10(Revocation of designation as production facility for products manufactured by persons with severe disabilities) #
(1) When any production facility for products manufactured by persons with severe disabilities falls under any of the following subparagraphs, the Minister of Health and Welfare may revoke the designation of such facility or order the suspension of its business by up to six months or the improvement of its equipment; provided, in cases of subparagraph 3 or 5, such designation shall be revoked: <Amended on Jan. 18, 2010; Aug. 4, 2011; Feb. 3, 2016; Jun. 12, 2018>
1. Where a facility ceases to meet designation requirements under Article 9(1);
2. Where a facility violates its duties to ensure quality or fails to execute a contract;
3. Where a facility is designated as a production facility for products manufactured by persons with severe disabilities or receives subsidies by fraud or other improper means or uses the subsidies for purposes, other than the intended purposes;
4. Where a facility files a request for revocation of designation with the Minister of Health and Welfare, along with the relevant documents because the facility cannot continue normal production activities on unavoidable management grounds;
5. Where a facility allows any other person to use the name "production facility for products manufactured by persons with severe disabilities" in violation of Article 9(3);
6. Where a facility refuses, interferes with, or evades guidance or supervision provided for in Article 18.
(2) The Minister of Health and Welfare shall not designate a facility whose designation is revoked pursuant to paragraph (1) or a facility deemed to be the same with the aforementioned facility because they have the same representative as a production facility for products manufactured by persons with severe disabilities within a year after such disposition of revocation of designation is made. <Added on Feb. 3, 2016>
(3) Matters necessary for detailed standards for administrative disposition pursuant to paragraph (1) and for standards for a facility with substantial sameness pursuant to paragraph (2) shall be prescribed by Presidential Decree. <Amended on Feb. 3, 2016; Jun. 12, 2018>
[Title Amended on Aug. 4, 2011; Feb. 3, 2016]
Article 10-2(Penalty surcharges) #
(1) Where the Minister of Health and Welfare has to order business suspended pursuant to Article 10(1)1, 2 or 6, if the suspension of business might be prejudicial to the employment stability of the disabled employees in a production facility for products manufactured by persons with severe disabilities, he or she may impose a penalty surcharge of up to 30/100 of the sales related to the violation in lieu of the disposition of business suspension.
(2) The calculation of sales and the standards for imposing penalty surcharges pursuant to paragraph (1), and other necessary matters, shall be prescribed by Presidential Decree.
(3) If a person on whom a penalty surcharge is imposed under paragraph (1) fails to pay the penalty surcharge by the prescribed deadline, it shall be collected in accordance with the practices of dispositions on default of national taxes.
[This Article Added on Jun. 12, 2018]
Article 11(Designation of institutions performing affairs related to products manufactured by persons with severe disabilities) #
(1) The Minister of Health and Welfare shall designate an institution or organization meeting the requirements prescribed by Presidential Decree, such as an organization and human resources, as an institution to perform affairs related to products manufactured by persons with severe disabilities (hereinafter referred to as "performing institution"), in order to provide employment opportunities to persons with severe disabilities who are not likely to be employed under general conditions, and efficiently perform projects to support products manufactured by persons with severe disabilities. <Amended on Jan. 18, 2010; Aug. 4, 2011>
(2) The State and local governments may provide necessary funds and other support in relation to the operation of a performing institution.
(3) No one shall use the name of a performing institution without being designated as such pursuant to paragraph (1). <Added on Aug. 4, 2011>
(4) No one who has been designated pursuant to paragraph (1) shall lend the name of a performing institution to any other person. <Added on Aug. 4, 2011>
(5) Necessary matters concerning the designation of a performing institution shall be prescribed by Presidential Decree. <Amended on Aug. 4, 2011>
Article 12(Affairs of performing institutions) #
Performing institutions shall conduct the following affairs: <Amended on Jan. 18, 2010; Aug. 4, 2011; May 20, 2014; Mar. 13, 2018; Feb. 6, 2024>
1. Supporting the formulation of plans to promote preferential purchase;
2. Conducting investigations and research to expand a line of products manufactured by persons with severe disabilities;
3. Acting on behalf of public institutions in entering into contracts for products manufactured by persons with severe disabilities, such as negotiated contracts under Article 7(5);
4. Supporting projects pursuant to Article 9;
5. Supporting technology development for production facilities for products manufactured by persons with severe disabilities;
6. Supporting sales promotion for production facilities for products manufactured by persons with severe disabilities;
7. Education or training for employees of production facilities for products manufactured by persons with severe disabilities;
8. Projects entrusted by the Minister of Health and Welfare for the purchase of products manufactured by persons with severe disabilities;
9. Supporting the quality certification of products manufactured by persons with severe disabilities;
10. Supporting the development of packing and design of containers for products manufactured by persons with severe disabilities;
11. Consulting services for production facilities for products manufactured by persons with severe disabilities;
12. Publicity activities to increase the understanding of products manufactured by persons with severe disabilities;
13. Other projects to promote the purchase of products manufactured by persons with severe disabilities.
Article 13(Revocation of designation as executing institutions) #
(1) When anyone designated as a performing institution falls under any of the following subparagraphs, the Minister of Health and Welfare may revoke such designation or order him or her to suspend all or part of his or her business for a fixed period of up to six months; provided, in cases of falling under subparagraph 1, the designation shall be revoked:
1. Where he or she is designated by fraud or other wrongful means;
2. Where he or she receives financial support by fraud or other wrongful means or uses the received funds for purposes, other than the intended purposes;
3. Where he or she fails to meet the requirements for designation as performing institution provided for Article 11(1);
4. Where he or she refuses, obstructs, or evades guidance and supervision pursuant to Article 18 without any justifiable ground.
(2) Detailed standards for administrative disposition under paragraph (1) shall be prescribed by Presidential Decree.
[This Article Added on Aug. 4, 2011]
[Previous Article 13 moved to Article 16 <Aug. 4, 2011>]
Article 14(Education) #
(1) In order to promote the purchase of products manufactured by persons with severe disabilities, the Minister of Health and Welfare may provide education to purchasing managers, etc. of public institutions, as prescribed by Presidential Decree; provided, where the purchase performance of the preceding year submitted by the head of a public institution pursuant to Article 7(2) fall short of the percentage referred to in paragraph (3)2 of that Article, such education shall be provided to the purchasing managers, etc. of the relevant public institution, as prescribed by Presidential Decree. <Amended on Feb. 6, 2024>
(2) Where the Minister of Health and Welfare provides education pursuant to the proviso of paragraph (1), the purchasing managers, etc. of the relevant public institution shall undergo such education unless there is good cause. <Added on Feb. 6, 2024>
[This Article Added on Aug. 4, 2011]
[Previous Article 14 moved to Article 17 <Aug. 4, 2011>]
Article 15(Rewards) #
The Minister of Health and Welfare may grant a reward to any of the following persons, as prescribed by Presidential Decree: <Amended on Feb. 3, 2016>
1. A public institution which has excellent records of purchasing products manufactured by persons with severe disabilities or has contributed to promoting the purchase of such products;
2. A production facility for products manufactured by persons with severe disabilities which has contributed to promoting the sale of products manufactured by persons with severe disabilities or improving the quality of such products;
3. Other persons who have contributed to promoting the preferential purchase of products manufactured by persons with severe disabilities.
[This Article Added on Aug. 4, 2011]
[Previous Article 15 moved to Article 18 <Aug. 4, 2011>]
Article 16(Taxation support) #
(1) The Government may provide tax support, as prescribed by the Restriction of Special Taxation Act, the Restriction of Special Local Taxation Act, or other tax-related Acts, to proactively help production facilities for products manufactured by persons with severe disabilities increase economic strength and secure their social competitiveness. <Amended on Mar. 31, 2010; Aug. 4, 2011>
(2) The Government may provide taxation support to performing institutions and their major projects, as prescribed by the Restriction of Special Taxation Act.
(3) The Government may include property or funds invested or contributed for the operation of performing institutions in expenses or pecuniary losses, as prescribed by the Income Tax Act or the Corporate Tax Act.
[Moved from Article 13; previous Article 16 moved to Article 19 <Aug. 4, 2011>]
Article 17(Free lease of State or public property) #
(1) The State or local governments may lend State or public property or commodities free of charge to performing institutions pursuant to the State Property Act and the Public Property and Commodity Management Act, when necessary for the operation of performing institutions.
(2) When performing institutions fail to conduct their business with proper purposes until two years elapse from the date on which they leased the relevant property or commodities pursuant to paragraph (1), the State or local governments may cancel or terminate the relevant lease contract.
[Moved from Article 14; previous Article 17 moved to Article 20 <Aug. 4, 2011>]
Article 18(Guidance and supervision) #
(1) The Minister of Health and Welfare may provide guidance on and supervision of the affairs of production facilities for products manufactured by persons with severe disabilities or performing institutions. <Amended on Jan. 18, 2010; Aug. 4, 2011>
(2) Where the Minister of Health and Welfare deems it necessary for guidance and supervision provided for in paragraph (1), he or she may request production facilities for products manufactured by persons with severe disabilities or institutions conducting affairs for the aforesaid production facilities to submit necessary data, etc., or to cause public officials under his or her jurisdiction to enter the relevant facility or institution for investigation or inquiry. In such cases, production facilities for products manufactured by persons with severe disabilities or institutions conducting affairs for the aforesaid production facilities shall submit the required data and shall not refuse, obstruct, or evade the investigation or inquiry, except in extenuating circumstances. <Amended on Jan. 18, 2010; Aug. 4, 2011; May 20, 2014; Feb. 3, 2016>
(3) Any person who enters the relevant facility for investigation or inquiry pursuant to paragraph (2) shall carry documents indicating his or her authority and stating matters prescribed by Decree of the Ministry of Health and Welfare, such as the period and scope of investigation, investigator, and relevant statutes, and produced them to the relevant persons. <Added on Feb. 3, 2016>
[Moved from Article 15; previous Article 18 moved to Article 21 <Aug. 4, 2011>]
Article 19(Delegation and entrustment of authority) #
(1) Part of the authority of the Minister of Health and Welfare under this Act may be delegated to the head of a local government, as prescribed by Presidential Decree.
(2) Part of the duties of the Minister of Health and Welfare under this Act may be entrusted to performing institutions, as prescribed by Presidential Decree.
[This Article Wholly Amended on Feb. 3, 2016]
Article 20(Relationship to other statutes) #
This Act shall prevail over the following provisions, with regard to the preferential purchase of products manufactured by persons with severe disabilities: <Amended on May 21, 2009; May 20, 2014; Nov. 11, 2025>
1. Formulation of purchase plans pursuant to Article 5 of the Act on Facilitation of Purchase of Small and Medium Enterprise-Manufactured Products and Support for Development of Their Markets and the preferential purchase of products manufactured with developed technology pursuant to Article 17 of the same Act;
2. Preferential purchase by public institutions pursuant to Article 9 of the Act on Support for Female-Owned Businesses;
3. Preferential purchase of products manufactured in standardized workplaces for persons with disabilities pursuant to Article 22-4 of the Act on the Employment Promotion and Vocational Rehabilitation of Persons with Disabilities.
[Moved from Article 17 <Aug. 4, 2011>]
Article 21(Hearings) #
The Minister of Health and Welfare shall hold hearings, when he or she intends to impose any of the following dispositions: <Amended on Jun. 12, 2018>
1. Suspension of business and revocation of designation of production facilities for products manufactured by persons with severe disabilities pursuant to Article 10;
2. Revocation of designation of performing institutions pursuant to Article 13.
[This Article Wholly Amended on Aug. 4, 2011]
[Moved from Article 18 <Aug. 4, 2011>]
Article 21-2(Legal fiction as public officials for purposes of applying penalty provisions) #
The executive officers and employees of a performing institution engaged in duties entrusted by the Minister of Health and Welfare pursuant to Article 19(2) shall be deemed public officials for purposes of applying the penalty provisions under Articles 129 through 132 of the Criminal Act.
[This Article Wholly Amended on Jan. 9, 2024]
Article 22(Penalty provisions) #
Any of the following persons shall be punished by imprisonment with labor for not more than one year or by a fine not exceeding 10 million won: <Amended on Feb. 3, 2016>
1. A person who uses or lends the name of production facilities for products manufactured by persons with severe disabilities, in violation of Article 9(2) or (3);
2. A person who uses or lends the name of performing institutions, in violation of Article 11(3) or (4);
3. A person who obtains designation as a production facility for products manufactured by persons with severe disabilities or a performing institution by fraud or other wrongful means.
[This Article Wholly Amended on Aug. 4, 2011]
[Moved from Article 19 <Aug. 4, 2011>]
Article 23(Administrative fines) #
(1) Any person who fails to submit data, etc., submits false documents, etc., or refuses, obstructs, or evades investigation or inquiry, in violation of the latter part of Article 18(2), shall be punished by an administrative fine of not more than three million won. <Amended on Feb. 3, 2016>
(2) The Minister of Health and Welfare shall impose and collect administrative fines referred to in paragraph (1), as prescribed by Presidential Decree.
[This Article Added on May 20, 2014]