Using Daycare Center Income for Personal Use Can Lead to Imprisonment... Administrative Sanctions Including Disqualification and Closure Possible

[Asia Economy Reporter Choi Dae-yeol] A bill to impose imprisonment or fines and even closure measures if a daycare center’s property or income is found to be used for purposes other than childcare is being pushed again. Previously, it was discarded as it was not processed in the 20th National Assembly.

The Ministry of Health and Welfare announced on the 23rd at the Cabinet meeting that the "Partial Amendment to the Infant and Toddler Care Act" containing such provisions was approved. The amendment basically clarifies the principle that the property or income of daycare centers must not be used improperly for purposes other than childcare and newly includes related penalty provisions. Currently, even if the daycare operator personally uses the childcare fees supported by the state or the expenses borne by parents, there was no legal basis for measures other than returning the costs.

If caught for improper use, the operator can be punished with imprisonment of up to one year or a fine of up to 10 million won. In addition, administrative measures such as orders to return subsidies, suspension or closure of daycare center operations, disqualification of the director, and public announcement of violations can be imposed.

The amendment also allows for the closure of daycare facilities if the driver of the daycare center’s school vehicle or the accompanying childcare teacher fails to confirm whether infants and toddlers have disembarked, resulting in death or serious injury. Currently, for a first violation, only correction or change orders can be issued, and if these orders are violated, suspension of operations for up to three months is possible.

Administrative sanctions have also been strengthened, allowing up to five years of disqualification for directors and childcare teachers. Currently, in case of vehicle safety accidents, disqualification is limited to a maximum of one year, and for child abuse, up to two years.

Additionally, when a daycare center first receives childcare fees, it is mandated to explain to guardians the contents of childcare services provided by the daycare, the purpose and usage plan of childcare fees and necessary expenses, and precautions when using the daycare. Park In-seok, Director of Childcare Policy at the Ministry of Health and Welfare, said, "If this amendment passes the National Assembly, it will greatly contribute to increasing the accounting transparency of daycare centers and preventing school vehicle accidents."

This amendment was previously submitted to the National Assembly as a government bill in October last year but was discarded due to the expiration of the 20th National Assembly’s term. The government plans to resubmit the amendment to the National Assembly at the end of this month.

This content was produced with the assistance of AI translation services.