ACT ON THE OPERATION OF LOCAL GOVERNMENT-INVESTED OR -FUNDED INSTITUTIONS

CHAPTER I GENERAL PROVISIONS

Article 1(Purpose) #

The purpose of this Act is to provide for matters necessary for the operation of local government-invested or -funded institutions to justify the management of such institutions and increase transparency in their operation, thereby expanding services to local residents.

Article 2(Scope of application) #

(1) This Act shall apply to local government-invested and -funded institutions established by a local government, and designated and publicly notified as a local government-invested or -funded institution pursuant to Article 5 (hereinafter referred to as "local government-invested and funded institution"). In such case, a local government-invested institution shall be where ownership (referring to the methodology and calculation criteria provided for by Presidential Decree) of the local government exceeds 10/100.

(2) This Act shall not apply to any of the following institutions: <Amended on Dec. 3, 2019>

1. The following local public enterprises provided for by Article 2 and Chapters 3 and 4 of the Local Public Enterprise Act (hereinafter referred to as "local public enterprise"):

(a) A local government-directly operated enterprise;

(b) A local government-invested public corporation;

2. A public institution designated by the Minister of Economy and Finance pursuant to Article 6 of the Act on the Management of Public Institutions;

3. An institution whose members are local governments or public officials affiliated with the local governments, which is established with an objective of developing relationship between local governments and increasing welfare, etc. of public officials affiliated with the local governments;

4. An incorporated association under the Civil Act.

(3) Articles 9, 10-3, 11, 12, 14, 15, 15-2, 15-3, 16, 17, 17-2, 17-3, 18 (3) and (4), 19, and 22 (1) shall not apply to a local government-invested institution, in which the ownership by the local government is less than 50/100; provided, in any of the following cases, an exception shall be provided: <Amended on May 29, 2016; Dec. 3, 2019; Jun. 9, 2020>

ACT ON THE OPERATION OF LOCAL GOVERNMENT-INVESTED OR -FUNDED INSTITUTIONS

Article 1(Purpose) #

Article 2(Scope of application) #

Article 2-2(Application of matters concerning local government-invested or -funded institutions established with special account for educational expenses) #

Article 3(Basic principles of management) #

Article 4(Investments and funds by local governments, projects qualified for investments and funds) #

Article 5(Designation as local government-invested or -funded institution, and public notification thereof) #

Article 6(Operational deliberation committees of local government-invested or -funded institution) #

Article 7(Examination of validity of establishment and operation of local government-invested or -funded institution, consultation before establishment) #

Article 8(Articles of incorporation) #

Article 9(Executive officers) #

Article 10(Grounds for disqualification for executive officers) #

Article 10-2(Separate sentence of punishment of fines) #

Article 10-3(Restrictions on dual office holding by executive officers and employees) #

Article 11(Performance contracts with heads of local governments) #

Article 12(Recruitment of employees) #

Article 13(Education and training of executive officers and employees) #

Article 14(Remuneration for executive officers and employees) #

Article 15(Operation of organization, and quota of staff) #

Article 15-2(Measures against persons who commit misconduct) #

Article 15-3(Personnel audit) #

Article 16(Fiscal year) #

Article 17(Principles of accounting) #

Article 17-2(Submission of pledge of integrity) #

Article 17-3(Cancellation, and termination of contract upon breach of pledge of integrity) #

Article 18(Preparation of budget) #

Article 19(Settlement of accounts) #

Article 20(Financial support) #

Article 21(Bearing expenses for projects performed by proxy) #

Article 22(Issuing bonds by local government-invested institutions) #

Article 23(Exercise of stockholders right by local governments) #

Article 24(Requests for dissolution of local government-invested or -funded institution) #

Article 25(Guidance and supervision) #

Article 26(Inspections and reports) #

Article 27(Notification of operational guidelines) #

Article 28(Evaluation of business performance) #

Article 29(Institutions to be excluded from evaluation of business performance and coordination of time for evaluation) #

Article 30(Implementation of management diagnosis) #

Article 31(Enactment of municipal ordinance relating to evaluation of business performance and management diagnosis) #

Article 32(Management disclosure) #

Article 33(Integrated disclosure) #

Article 34(Legal fiction as public officials for purposes of applying penalty provisions) #

Article 34-2(Notification of initiation or completion of investigation by investigation agencies) #

Article 35(Cooperation in submission of relevant documents) #

Article 36(Reporting to National Assembly) #

Article 37(Application of the Commercial Act and Civil Act with necessary modifications) #