Occupational Safety and Health Act — Article 161 (Penalty surcharges imposed for breach of obligation, such as ban on contracting)

(1) Where a business owner falls under any of the following cases, the Minister of Employment and Labor may impose and collect a penalty surcharge not exceeding one billion won:

1. Where he or she awards a contract in violation of Article 58(1);

2. Where he or she awards a contract without approval in violation of Article 58(2)2 or 59(1);

3. Where he or she subcontracts a contract awarded with approval in violation of Article 60.

(2) Where the Minister of Employment and Labor imposes a penalty surcharge under paragraph (1), the following matters shall be taken into account:

1. The contract amount, duration, frequency, etc.;

2. The extent of efforts to implement measures necessary to prevent industrial accidents involving employees of a relevant contractor;

3. Whether an industrial accident has occurred.

(3) Where a person obliged to pay a penalty surcharge referred to in paragraph (1) fails to pay it by the payment deadline, the Minister of Employment and Labor shall collect an additional charge prescribed by Presidential Decree, in an annual amount of up to 6/100 of the unpaid penalty surcharge, for a period from the day following the payment deadline to the day before the date the penalty surcharge is paid. In such cases, the period of collecting an additional charge shall not exceed 60 months.

(4) Where a person obliged to pay a penalty surcharge referred to in paragraph (1) fails to pay it by the payment deadline, the Minister of Employment and Labor shall demand the payment by determining a payment period; and where the person fails to pay the penalty surcharge referred to in paragraph (1) and an additional charge referred to in paragraph (3) within such period, the Minister of Employment and Labor shall collect the amount in the same manner as delinquent national taxes.

(5) The collection of penalty surcharges and additional charges referred to in paragraphs (1) and (3), the procedures for dispositions on delinquency referred to in paragraph (4), and other necessary matters shall be prescribed by Presidential Decree.