Fines Imposed Based on Violation Period of Mandatory Enrollment in Loss Insurance for Labor Consultants and Others

Amendments to Six Presidential Decrees Including the Enforcement Decree of the Certified Labor Consultant Act Passed at the Cabinet Meeting

[Sejong=Asia Economy Reporter Moon Chaeseok] In the future, if labor attorneys and youth training facility managers fail to comply with the mandatory subscription to liability insurance or mutual aid, fines will be imposed in proportion to the violation period. The government expects that this revision of related regulations will improve the practice of deliberately delaying subscription.

On the 23rd, the Ministry of Legislation announced that six presidential decrees related to fines under the jurisdiction of five ministries, including the Ministry of Employment and Labor, were collectively amended and passed at the Cabinet meeting.

With this revision, if labor attorneys or youth training facility managers violate the obligation to subscribe to liability insurance or mutual aid for clients or users, fines will be imposed proportionally to the violation period. Under current regulations, violations of this obligation result in a uniform fine of 2 million KRW for youth training facilities and 1 to 2 million KRW depending on the number of violations for labor attorney guarantee insurance.

There was no enforcement measure to compel subscription even if violations continued, such as deliberately not subscribing to insurance or mutual aid for a long period or failing to subscribe after paying fines. Because of this, it has been difficult to eradicate the practice of paying only the fines and neglecting the subscription obligation for a long time.

From now on, a method of increasing fines in proportion to the violation period will be applied. For example, fines will be set at 3 million KRW for violations under one month, 5 million KRW for violations between one month and less than three months, and 7 million KRW for violations between three months and less than six months. A Ministry of Legislation official said, "(With the amendment of the enforcement decree) it is expected not only to actively encourage subscription to insurance and mutual aid but also to enhance the effectiveness and fairness of fines imposed for violations of subscription obligations."

Lee Kangseop, head of the Ministry of Legislation, said, "With this collective amendment, it has become possible to impose fines reasonably considering the reasons for violating the obligation to subscribe to liability insurance or mutual aid," and added, "The Ministry of Legislation will continue to actively identify and correct inconvenient and unreasonable elements in laws closely related to citizens' lives."

List of six presidential decrees revised related to the imposition of fines. (Source: Ministry of Government Legislation)

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