Article 1(Purpose) #
The purpose of this Decree is to prescribe matters delegated by the Local Government Subsidy Management Act and matters necessary for the enforcement thereof.
Article 2(Application of matters concerning education, science, physical education) #
In this Decree, with respect to matters concerning education, science, and physical education, or the special account for educational finance, "head of a local government" shall be deemed "superintendent of education," "Minister of the Interior and Safety" shall be deemed "Minister of Education," and "Decree of the Ministry of the Interior and Safety" shall be deemed "Decree of the Ministry of Education."
Article 3(Items of expenses for operating costs) #
Where local government subsidies are granted as operating costs based on statutes and regulations under the former part of Article 6(2) of the Local Government Subsidy Management Act (hereinafter referred to as the "Act"), the items of expenses that may be used as operating costs shall be as follows; provided, cases where the expenses of each subparagraph are directly incurred in performing a local government subsidized project shall be excluded:
1. Personnel expenses;
2. Administrative expenses;
3. Rents;
4. Other expenses recognized by the head of a local government as particularly necessary for the basic operation of an office or project performed by another local government, corporation, organization, or individual.
Article 4(History management of local government subsidies) #
(1) The head of a local government shall manage the support history of local government subsidies by each local government subsidized project under Article 6(3) of the Act.
(2) The support history of local government subsidies under paragraph (1) shall include the following matters:
1. Name of the project;
2. Name or trade name and address of the local government subsidized operator (in cases of a corporation or organization, the name and address of the corporation or organization);
3. Status of local government subsidies received by the local government subsidized operator over the past 5 years;
4. Results of the performance evaluation under Article 27(1) of the Act.
(3) Matters necessary for the management of support history of local government subsidies, other than those prescribed in paragraphs (1) and (2), shall be determined by Decree of the Ministry of the Interior and Safety.
Article 4-2(Notification of budget concerning local government subsidies) #
When the head of a local government notifies the head of another local government of the details of the compilation or resolution of a budget bill for local government subsidies under Article 6-2(1) and (2) of the Act, such notification shall be made separately for each local government subsidized project. In such cases, the head of a local government shall also notify the total amount of local government subsidies.
[This Article Added on Oct. 4, 2023]
Article 5(Application for grant of local government subsidies) #
The application for the grant of local government subsidies under Article 7(1) of the Act shall include the following matters:
1. Name, trade name, and address of the applicant (in cases of a corporation or organization, the name and address of the corporation or organization);
2. Purpose and details of the local government subsidized project;
3. Expenses incurred in the local government subsidized project and the amount of local government subsidies to be granted;
4. Amount to be borne by the applicant;
5. Scheduled commencement date and scheduled completion date of the local government subsidized project;
6. Other matters necessary for the grant of local government subsidies as determined by the head of a local government.
Article 5-2(Deposit and grant of local government subsidies) #
(1) Local government subsidies that may be deposited in and granted from the treasury of a local government under Article 10-2(1) of the Act shall be those that do not fall under any of the following subparagraphs:
1. Local government subsidies granted by the head of a local government to the head of another local government who is a local government subsidized operator;
2. Local government subsidies granted to perform a project subsidized by the State treasury.
(2) Where the head of a local government deposits local government subsidies in the treasury of the local government under Article 10-2(1) of the Act, such subsidies shall be deposited into a dedicated account opened in the name of the relevant local government and used for the purpose of granting local government subsidies.
(3) Where a local government subsidized operator requests the grant of local government subsidies deposited in the treasury of a local government under Article 10-2(1) of the Act, any of the following data shall be submitted to the head of the local government through the integrated local government subsidy management network under Article 28(1) of the Act (hereinafter referred to as the "integrated local government subsidy management network"):
1. Electronic invoices under the latter part of Article 163(1) of the Income Tax Act;
2. Electronic tax invoices under Article 32(2) of the Value Added Tax Act;
3. Transaction approval statements of credit cards or debit cards created for the purpose of using local government subsidies;
4. Other data capable of proving the execution of local government subsidies.
[This Article Added on May 16, 2023]
Article 6(Revocation of decision to grant due to change in circumstances) #
(1) "Cases prescribed by Presidential Decree" in Article 11(2) of the Act means any of the following cases:
1. Where land or major facilities, etc. necessary for the performance of a local government subsidized project become unavailable for use or access due to reasons not attributable to the local government subsidized operator;
2. Where expenses other than the portion covered by local government subsidies among the expenses incurred in a local government subsidized project (excluding expenses borne by the local government subsidized operator) cannot be procured due to reasons not attributable to the local government subsidized operator.
(2) Local government subsidies to be granted under Article 11(4) of the Act shall be the following expenses:
1. Expenses necessary for the removal of machinery, equipment, or temporary buildings related to the local government subsidized project and for the handling of other remaining business;
2. Indemnities to be paid in cases of terminating a contract concluded to perform the local government subsidized project.
Article 7(Preservation of data related to local government subsidized projects) #
Data to be preserved by a local government subsidized operator under Article 16(3) of the Act shall be as follows:
1. Invoices: Documents summarizing the execution performance of accounting business handled by a local government subsidized operator by period;
2. Evidentiary documents: Documents proving the details of the invoices under subparagraph 1;
3. Attached documents: Documents necessary to explain the details of the invoices under subparagraph 1 or the evidentiary documents under subparagraph 2.
Article 8(Suspension of performance of local government subsidized projects) #
(1) Where the head of a local government causes the performance of a local government subsidized project to be temporarily suspended under Article 16(5) of the Act, he or she shall set a period and require the local government subsidized operator to take measures suitable for the details of the decision to grant the relevant local government subsidies or for the order under paragraph (4) of the same Article.
(2) When requiring measures to be taken under paragraph (1), the head of a local government shall notify the local government subsidized operator that all or part of the decision to grant the relevant local government subsidies may be revoked under Article 12(1) of the Act if the local government subsidized operator fails to take such measures.
Article 9(Submission of performance reports of local government subsidized projects) #
(1) "The period prescribed by Presidential Decree" in the former part of the part other than the subparagraphs of Article 17(1) of the Act means within 2 months from the date on which any ground under the subparagraphs of the same paragraph occurs.
(2) "Cases where there are grounds prescribed by Presidential Decree" in the proviso of the part other than the subparagraphs of Article 17(1) of the Act means cases where a local government subsidized operator, as a subsidized operator or indirect subsidized operator under subparagraph 3 or 6 of Article 2 of the Act on the Management of Subsidies, submits a performance report to the head of the relevant local government through the integrated subsidy management network under Article 26-2(1) of that Act. <Amended on Oct. 4, 2023>
(3) When preparing a performance report of a local government subsidized project (hereinafter referred to as "performance report") under the former part of the part other than the subparagraphs of Article 17(1) of the Act, a local government subsidized operator shall clearly distinguish and prepare the details of use according to the details of the decision to grant the relevant local government subsidies and the return amount.
(4) Where the head of a local government reduces local government subsidies under Article 17(3) of the Act, the reduction shall be made within the scope according to the following classifications based on the amount of local government subsidies granted for the first time after the performance report is submitted: <Added on Oct. 4, 2023>
1. Where the period of delay in submission of the performance report is not less than 3 months but less than 6 months: Not more than 10/100;
2. Where the period of delay in submission of the performance report is not less than 6 months but less than 12 months: More than 10/100 but not more than 20/100;
3. Where the period of delay in submission of the performance report is not less than 12 months: More than 20/100 but not more than 50/100.
Article 10(Verification of settlement reports) #
(1) Where an auditor under subparagraph 7 of Article 2 and Article 9 of the Act on External Audit of Stock Companies (hereinafter referred to as "auditor") verifies the appropriateness of a settlement report under the main clause of Article 17(2) of the Act (hereinafter referred to as "settlement report"), he or she shall prepare a relevant report. <Amended on Oct. 4, 2023>
(2) Matters necessary for the format, preparation method, items, and submission procedures of settlement reports and reports related to verification under paragraph (1) shall be determined by Decree of the Ministry of the Interior and Safety. <Amended on Oct. 4, 2023>
[Title Amended on Oct. 4, 2023]
Article 11(Selection of auditors by specific local government subsidized operators) #
(1) A specific local government subsidized operator under the main clause of Article 18(1) of the Act (hereinafter referred to as "specific local government subsidized operator") shall select an auditor within 3 months from the date on which he or she receives notification of the decision to grant local government subsidies.
(2) The standards for an auditor selected under paragraph (1) to perform an accounting audit shall be in accordance with the accounting audit standards under Article 16 of the Act on External Audit of Stock Companies.
(3) The preparation of an audit report under the main clause of Article 18(1) of the Act (hereinafter referred to as "audit report") shall be in accordance with Article 18 of the Act on External Audit of Stock Companies; provided, matters necessary for specific preparation methods, such as the preparation format of documents concerning matters to be attached to an audit report, shall be determined by Decree of the Ministry of the Interior and Safety.
(4) A specific local government subsidized operator shall submit an audit report to the head of the local government that granted the local government subsidies within 4 months from the end of the relevant fiscal year.
(5) Matters necessary for the procedures for selecting auditors, other than those prescribed in paragraph (1), shall be determined by Decree of the Ministry of the Interior and Safety.
Article 11-2(Public disclosure of information by local government subsidized operators) #
(1) "Local government subsidized projects of a scale not less than that prescribed by Presidential Decree" in the main clause of the part other than the subparagraphs of Article 20-2(1) of the Act means local government subsidized projects where the total amount of local government subsidies granted by the head of a local government during the same fiscal year is 5 million won or more; provided, where it is necessary to differently determine the scale subject to public disclosure in consideration of the characteristics of a local government subsidized project, it shall be a local government subsidized project of an amount not less than the amount determined and publicly notified by the Minister of the Interior and Safety.
(2) "The period prescribed by Presidential Decree" in the main clause of the part other than the subparagraphs of Article 20-2(1) of the Act means within 4 months from the end of the relevant fiscal year.
(3) "Documents prescribed by Presidential Decree" in Article 20-2(1)5 of the Act means the following documents:
1. In cases falling under the main clause of Article 17(2) of the Act, documents on the results of verification of the appropriateness of the settlement report thereunder;
2. Financial statements or closing reports of the local government subsidized operator;
3. Other documents determined and publicly notified by the Minister of the Interior and Safety to enhance the transparency of local government subsidized projects.
(4) Where the head of a local government issues a corrective order to a local government subsidized operator under Article 20-2(2) of the Act, it shall be made in writing, specifying the details and period thereof.
(5) Where the head of a local government reduces local government subsidies under Article 20-2(2) of the Act, the reduction shall be made within the scope according to the following classifications based on the total amount of local government subsidies to be granted for the fiscal year in which public disclosure is made under the main clause of paragraph (1) of the same Article:
1. Where a corrective order under paragraph (4) is not complied with once: Not more than 10/100;
2. Where a corrective order under paragraph (4) is not complied with twice: More than 10/100 but not more than 20/100;
3. Where a corrective order under paragraph (4) is not complied with 3 times or more: More than 20/100 but not more than 50/100.
Article 12(Property subject to restriction on disposal) #
(1) "Important property prescribed by Presidential Decree" in Article 21(1) of the Act means any of the following property (hereinafter referred to as "important property"):
1. Real estate and the appurtenances thereof;
2. Vessels, buoys, floating piers (referring to structures floating on water to moor vessels or allow them to come alongside a wharf), floating docks (referring to floating facilities for constructing or repairing vessels or loading and unloading cargo), and their appurtenances;
3. Aircraft;
4. Other property recognized and publicly notified by the head of a local government as particularly necessary to achieve the purpose of granting local government subsidies.
(2) A local government subsidized operator shall record and maintain the current value and increase or decrease of important property in a ledger in a manner determined by the head of a local government under Article 21(1) of the Act, and shall report the status of important property to the head of the relevant local government on a semi-annual basis, accompanied by documents necessary for the management of the relevant important property.
(3) The head of a local government shall publicly disclose the status of important property through the Internet website, etc. of the relevant local government.
(4) When the head of a local government orders a local government subsidized operator to return all or part of the amounts under the subparagraphs of Article 21(5) of the Act pursuant to the part other than the subparagraphs of the same paragraph, he or she shall notify the operator in writing of the amount to be returned, the details of calculation thereof, the deadline for payment, etc. <Amended on Oct. 4, 2023>
(5) When calculating the amounts under Article 21(5)2 and 3 of the Act, if the current value of important property reported by a local government subsidized operator under paragraph (2) is deemed significantly lower than the current value considering market conditions, etc., the head of a local government shall evaluate the current value of the relevant important property through an appraisal corporation under Article 29 of the Act on Appraisal and Certified Appraisers. <Amended on Oct. 4, 2023>
Article 13(Cases not subject to restriction on disposal of property) #
"Cases where grounds prescribed by Presidential Decree occur" in Article 21(4)3 of the Act means cases where a local government, as a local government subsidized operator, acquires property with an amount less than 50/100 of the local government subsidies granted by another local government. <Amended on Oct. 4, 2023>
Article 14 #
Deleted. <Oct. 4, 2023>
Article 15(Exclusion from deliberation by Local Government Subsidy Management Committees) #
"Cases prescribed by Presidential Decree" in the proviso of the part other than the subparagraphs of Article 26(2) of the Act means any of the following cases: <Amended on Dec. 16, 2021>
1. Where a budget for local government subsidies is compiled according to the sharing of financial resources for a project subsidized by the State treasury or a project for which a Special City, Metropolitan City, Special Self-Governing City, Do, or Special Self-Governing Province (hereinafter referred to as "City/Do") grants subsidies under Article 23(2) of the Local Finance Act;
2. Where a revised budget bill is submitted to a local council under Article 142(4) of the Local Autonomy Act;
3. Where a supplementary revised budget bill is compiled under Article 145(1) of the Local Autonomy Act by reducing the unexpended balance of the budget for local government subsidies for the relevant year.
Article 16(Performance evaluation and management of local government subsidized projects) #
The head of a local government shall register and manage the results of performance evaluation (hereinafter referred to as "performance evaluation") under Article 27(1) of the Act in the integrated local government subsidy management network. <Amended on May 16, 2023>
Article 16-2(Establishment and operation of integrated local government subsidy management network) #
(1) Where the Minister of the Interior and Safety deems it necessary for the systematic and efficient operation of the integrated local government subsidy management network under Article 28(1) of the Act, he or she may prepare and implement detailed operating standards for the relevant integrated local government subsidy management network.
(2) "Matters prescribed by Presidential Decree" in Article 28(2)8 of the Act means the following matters:
1. Revocation of a decision to grant local government subsidies under Article 12 of the Act;
2. Public disclosure of the list of fraudulent recipients of local government subsidies under Article 30 of the Act;
3. Exclusion from performance of local government subsidized projects and restriction on the grant of local government subsidies under Article 32 of the Act;
4. Recovery of local government subsidies under Article 34 of the Act;
5. Imposition and collection of punitive surcharges and late payment penalties under Article 35 of the Act;
6. Verification of whether local government subsidies have been received redundantly or fraudulently;
7. Information by unit of a local government subsidized project for performing the following tasks:
a. Grant, execution, and settlement of local government subsidies;
b. Verification of whether local government subsidized projects are similar or redundant;
c. Provision of customized services for the public regarding local government subsidized projects.
[This Article Added on May 16, 2023]
Article 16-3(Request for provision of data or information) #
(1) "Information prescribed by Presidential Decree" in Article 28-2(1)4a of the Act means the following information:
1. Statements of the value of supply of real estate leases under Article 55(2) of the Value Added Tax Act;
2. Statements of financial position, statements of comprehensive income, statements of appropriation of retained earnings, or statements of disposition of deficits under Article 60(2)1 of the Corporate Tax Act;
3. Statements of changes in shareholdings, etc. under Article 119(1) of the Corporate Tax Act;
4. Amount of global income under Article 14(2) of the Income Tax Act;
5. Amount of total revenue under Article 24(1) of the Income Tax Act;
6. Data submitted in payment statements under Article 164(1) of the Income Tax Act.
(2) "Data or information prescribed by Presidential Decree" in Article 28-2(1)4(f) of the Act means the following data or information:
1. Taxation data for acquisition tax under Article 7 of the Local Tax Act;
2. Taxation data for property tax under Article 105 of the Local Tax Act;
3. Taxation data for automobile tax under Article 125 of the Local Tax Act.
(3) "Data or information prescribed by Presidential Decree" in Article 28-2(1)6 of the Act means the data or information in Appendix 1.
(4) Where the Minister of the Interior and Safety deems it necessary for the efficient provision of data or information requested under Article 28-2(1) of the Act, he or she may, in consultation with the heads of relevant agencies, promote the linkage between the integrated local government subsidy management network and the information systems related to the relevant data or information.
[This Article Added on May 16, 2023]
Article 16-4(Request for provision of financial or credit information) #
(1) Where the Minister of the Interior and Safety and the head of a local government request the head of a financial institution, etc. (referring to a financial company, etc. under the Act on Real Name Financial Transactions and Confidentiality and a credit information collection agency under Article 25 of the Credit Information Use and Protection Act; hereinafter the same shall apply in this Article) to provide financial information under Article 28-3(1)1 of the Act (hereinafter referred to as "financial information") or credit information under subparagraph 2 of the same paragraph (hereinafter referred to as "credit information") pursuant to Article 28-3(1) of the Act, such request shall be made in a document including the following matters:
1. Name and resident registration number of the holder of the financial or credit information (in cases of a corporation, the name of the corporation, the name of its representative, and its corporate registration number);
2. Scope of financial or credit information, the base date for inquiry, and the period of inquiry.
(2) When providing financial or credit information under Article 28-3(3) of the Act, the head of a financial institution, etc. shall provide financial or credit information including the following matters:
1. Name and resident registration number of the holder of the financial or credit information (in cases of a corporation, the name of the corporation, the name of its representative, and its corporate registration number);
2. Name of the financial institution, etc. providing the financial or credit information;
3. Name of the financial product and account number related to the financial or credit information;
4. Details of the financial or credit information.
(3) Where the Minister of the Interior and Safety and the head of a local government deem it necessary for the efficient provision of financial or credit information, they may request the head of a financial institution, etc. to provide the financial or credit information through the information and communications network of an association, federation, or central society to which the relevant financial institution, etc. belongs.
[This Article Added on May 16, 2023]
Article 16-5(Exceptions to destruction of local government subsidy management information) #
(1) "Data or information prescribed by Presidential Decree" in the proviso of Article 28-5(1) of the Act means data or information concerning the following matters:
1. Disposal of important property under Article 21 of the Act;
2. Matters under Article 16-2(2)1 through 6.
(2) Where the Minister of the Interior and Safety and the head of a local government continue to possess data or information under the proviso of Article 28-5(2) of the Act, such data or information shall be stored and managed separately from other data or information.
[This Article Added on May 16, 2023]
Article 17(Methods of public disclosure of lists) #
(1) "Matters prescribed by Presidential Decree" in the part other than the subparagraphs of Article 30(1) of the Act means the following matters:
1. Name, trade name, age, and address of the local government subsidized operator or local government subsidy recipient subject to public disclosure (hereinafter referred to as "local government subsidized operator, etc.") (in cases where a local government subsidized operator, etc. is a corporation or organization, the name and address of the corporation or organization and the name, age, and address of its representative);
2. Details of the violation committed by the local government subsidized operator, etc. subject to public disclosure;
3. Details of the return of local government subsidies and the imposition of punitive surcharges following the violation by the local government subsidized operator, etc.;
4. Other matters recognized by the Local Government Subsidy Management Committee under Article 26 of the Act (hereinafter referred to as the "Committee") as necessary for the effectiveness of the public disclosure of the list.
(2) The period of public disclosure under Article 30(1) of the Act shall be 1 year. In such cases, if the head of a local government deems that the violation by a local government subsidized operator, etc. is serious, he or she may extend the period of public disclosure within the limit of 1 year through deliberation by the Committee.
(3) "Cases where grounds prescribed by Presidential Decree exist, such as where public disclosure is not effective or appropriate due to the death of the person subject to public disclosure" in Article 30(2) of the Act means any of the following cases:
1. Where the person subject to public disclosure has died;
2. Where the person subject to public disclosure has been declared missing under Article 27 of the Civil Act;
3. Other cases where the head of a local government recognizes, through deliberation by the Committee, that there is no practical benefit in disclosing the list, etc.
(4) Where the head of a local government intends to provide an opportunity for explanation under Article 30(3) of the Act, he or she shall notify the person subject to public disclosure of the matters under the subparagraphs of paragraph (1) in writing before holding a meeting of the Committee.
Article 18(Return of local government subsidies) #
"Interest generated by inevitable reasons prescribed by Presidential Decree" in the proviso of Article 31(2) of the Act means interest falling under any of the following subparagraphs:
1. Interest generated by the amount of local government subsidies executed within 1 month from the date the local government subsidies were received;
2. Interest generated during a period in which a local government subsidized project is delayed due to a natural disaster or other equivalent reasons;
3. Where the method of execution needs to be improved due to an amendment of statutes, etc. after receiving local government subsidies, interest generated during the period of such improvement;
4. Interest generated by reasons recognized by the head of a local government as inevitable in consideration of the characteristics of the local government subsidized project.
Article 19(Methods and procedures for exclusion from performance of local government subsidized projects) #
(1) The period of exclusion from performance of local government subsidized projects under one's jurisdiction or the period of restriction on the grant of local government subsidies for a local government subsidized operator under Article 32(1) of the Act shall be according to the following classifications; provided, that where a violation falling under subparagraph 2 or 3 is recognized as being caused by minor negligence or error, the period may be reduced within the scope of 1/2: <Added on Oct. 4, 2023>
1. In cases falling under Article 32(1)1 of the Act: 5 years;
2. In cases falling under Article 32(1)2 of the Act: 3 years;
3. In cases falling under Article 32(1)3 of the Act: 2 years.
(2) "Projects prescribed by Presidential Decree, such as welfare projects or projects subsidized by the State treasury" in Article 32(2) of the Act means the following projects: <Added on Oct. 4, 2023>
1. Welfare projects;
2. Projects subsidized by the State treasury;
3. Other projects of a public-interest nature that contribute to the convenience of local residents or regional development, as determined by the rules of the relevant local government.
(3) The period of restriction on the payment of local government subsidies to a local government subsidy recipient under Article 32(3) of the Act shall be according to the following classifications; provided, that where a violation falling under subparagraph 2 or 3 is recognized as being caused by minor negligence or error, the period may be reduced within the scope of 1/2: <Added on Oct. 4, 2023>
1. In cases falling under Article 32(3)1 of the Act: 5 years;
2. In cases falling under Article 32(3)2 of the Act: 3 years;
3. In cases falling under Article 32(3)3 of the Act: 1 year.
(4) The period of exclusion from performance of local government subsidized projects for a fraudulent contracting entity under Article 32(5) of the Act (hereinafter referred to as "fraudulent contracting entity") shall be according to the following classifications: <Added on Oct. 4, 2023>
1. Where a sentence of imprisonment with labor or imprisonment without labor for more than 1 year is rendered: 5 years;
Article 20(Notification of facts of order to return local government subsidies) #
Where a local government subsidized operator orders a local government subsidy recipient to return local government subsidies under Article 34(1) of the Act, he or she shall notify the head of the local government in charge of the relevant local government subsidized project of the fact of the return order and the following matters in writing within 10 days from the date the return order was issued:
1. Name, trade name, age, and address of the local government subsidy recipient who received the return order (in cases where the local government subsidy recipient is a corporation or organization, the name and address of the corporation or organization and the name, age, and address of its representative);
2. Specific grounds for the return order;
3. Amount of local government subsidies to be returned by the local government subsidy recipient who received the return order;
4. Other matters recognized by the head of a local government as necessary in connection with the execution of the order to return local government subsidies.
Article 21(Standards for imposition and collection of punitive surcharges and late payment penalties) #
(1) Standards for the imposition of punitive surcharges under Article 35(1) of the Act shall be as set forth in Appendix 2. <Amended on May 16, 2023>
(2) "Cases where grounds prescribed by Presidential Decree exist, such as where a fine, minor fine, confiscation, additional collection, surcharge, or administrative fine has been imposed under this Act or other Acts" in the proviso of the part other than the subparagraphs of Article 35(1) of the Act means cases where a fine, minor fine, confiscation, additional collection, surcharge, or administrative fine (hereinafter referred to as "administrative fines, etc." in this Article) has been imposed under the Act or other Acts.
(3) Where the head of a local government imposes and collects a punitive surcharge from a local government subsidized operator, etc. under Article 35(1) of the Act, he or she shall state the type of violation, the amount of the punitive surcharge, etc., and notify the operator, etc. in writing to pay the same.
(4) The head of a local government shall ensure that the sum of the administrative fines, etc. under paragraph (2) and the punitive surcharge does not exceed 5 times the total amount of local government subsidies to be returned by the local government subsidized operator, etc.
(5) A local government subsidized operator, etc. who receives a notification under paragraph (3) shall pay the punitive surcharge to a receiving institution determined by the head of the local government within 30 days from the date of receipt of such notification; provided, if the punitive surcharge cannot be paid within such period due to inevitable reasons such as a natural disaster, war, or armed conflict, it shall be paid within 7 days from the date such reasons cease to exist.
(6) A receiving institution that has received a punitive surcharge under paragraph (5) shall issue a receipt to the local government subsidized operator, etc. who paid the punitive surcharge, and notify the head of the relevant local government of the fact that the punitive surcharge has been received without delay.
(7) "Cases prescribed by Presidential Decree" in Article 35(3)5 of the Act means cases where the costs incurred in the imposition and collection of a punitive surcharge are greater than the punitive surcharge to be imposed and collected.
(8) Late payment penalties under Article 35(4) of the Act shall be calculated according to the following classifications:
Article 21-2(Standards for payment of rewards for reporting) #
(1) Where a report or accusation is filed under Article 36-3(1) of the Act, the head of a local government shall investigate the relevant facts, determine whether to pay a reward according to the results of the handling thereof, and notify the person who filed the report or accusation of the details of the decision.
(2) The notification under paragraph (1) shall be made after the revocation of a decision to grant local government subsidies under Article 12(1) of the Act or after an order to return local government subsidies under Articles 31(1) and 34(1) of the Act has been issued.
(3) The head of a local government shall pay the reward to the person who filed the report or accusation within 60 days from the date the notification under paragraph (1) is made.
(4) The standard for the payment of a reward under paragraph (3) shall be 30 percent of the amount for which the decision to grant has been revoked or the amount for which the return has been ordered; provided, that where it is necessary to pay a reward different from the reward under the main clause (hereinafter referred to as "original reporting reward") in consideration of the degree of contribution of the person who filed the report or accusation, the reward may be paid according to the following classifications:
1. Where it is necessary to pay an amount reduced from the original reporting reward: The reward shall be paid within the range of not less than 20 percent but less than 30 percent of the amount for which the decision to grant has been revoked or the amount for which the return has been ordered;
2. Where it is necessary to pay an amount exceeding the original reporting reward (limited to cases where it is less than 5 million won): The minimum amount of the reward necessary to be paid (hereinafter referred to as "minimum payment amount") shall be determined, and the relevant minimum payment amount shall be paid only if the original reporting reward is less than the minimum payment amount. In such cases, the minimum payment amount shall be not more than 5 million won.
(5) No reward shall be paid to a person who files a report or accusation with the same details after a report or accusation has been filed under Article 36-3(1) of the Act, and where two or more persons jointly file a report or accusation, the reward shall be paid to a designated representative.
(6) Matters necessary for the standards, methods, and procedures for the payment of rewards, other than those prescribed in paragraphs (1) through (5), shall be determined by ordinance of the relevant local government.
Article 21-3(Entrustment of business) #
The Minister of the Interior and Safety and the head of a local government shall entrust the following business to the Korea Local Information Research and Development Institute under Article 72 of the Electronic Government Act, pursuant to Article 36-5 of the Act:
1. Operation of the integrated local government subsidy management network;
2. Processing of data or information under the subparagraphs of Article 28-4(1) of the Act;
3. Operation of the online service system under Article 36-4 of the Act.
[This Article Added on May 16, 2023]
[Moved from Article 21-2 <Oct. 4, 2023>]
Article 22(Processing of personally identifiable information) #
Where inevitable to perform the following affairs, the head of a local government may process data containing resident registration numbers, passport numbers, driver's license numbers, or alien registration numbers under Article 19 of the Enforcement Decree of the Personal Information Protection Act: <Amended on Oct. 4, 2023>
1. Affairs concerning restrictions on the disposal of property under Article 21 of the Act;
2. Deleted; <Oct. 4, 2023>
3. Affairs concerning the public disclosure of lists, etc. under Article 30 of the Act;
4. Affairs concerning the exclusion from performance of local government subsidized projects, etc. under Article 32 of the Act;
5. Affairs concerning the recovery of local government subsidies from local government subsidy recipients under Article 34 of the Act;
6. Affairs concerning the imposition and collection of punitive surcharges and late payment penalties under Article 35 of the Act;
7. Affairs concerning compulsory collection under Article 36 of the Act;
7-2. Affairs concerning the payment of rewards for reporting under Article 36-3 of the Act;
8. Affairs concerning the establishment, operation, and management of the integrated local government subsidy management network and the management of local government subsidies using such network.