Main Elements

of the Employment Permit System for Foreigners

Dec. 25, 2003

The Ministry of Labor, Republic of Korea

Ⅰ. Overview

□ On August 16, 2003, □"Act on the Foreign Workers Employment, etc." was legislated, which stipulates introduction of the Employment Permit System for Foreign Workers and measure of illegal foreign workers legalizing.

□ Accordingly, employers who have failed to hire native workers will be legally allowed to hire foreign workers from August next year.

- Foreigners from sending nations will be legally entitled to work in Korea under the Employment Permit System.

※ The Employment Permit System for Foreigners will be enforced in parallel with the Industrial Trainee System.

□ Also, among illegally staying foreigners, 190,000 people who have stayed in Korea for less than 4 years were granted the status of sojourn eligible for employment according some formal procedures from Sep 1 to Nov 15 this year.

Ⅱ. Main Elements in the Employment Permit System for foreigners

1. Definition

□ The Employment Permit System allows employers who have failed to hire native workers to legally hire an adequate number of foreign workers and is an system that the government uses to introduce and manage foreign workers in Korea in an organized manner.

- With an introduction of the Employment Permit System, small and medium businesses are able to minimize labor shortages and foreign workers will enjoy basic rights under labor relations laws fully applied to them.

2. Main elements

□ Deciding industries subject to and size of inflow of foreign workers

□ The industries subject to and size of inflow of foreign workers and sending country under the Employment Permit System, and etc, are to be deliberated and decided in the latter half of the year at the  □Foreign Workforce Policy Committee□(FWPC, Chairman : the Minister of the Office for Government Policy Coordination) and adjusted every year.

□ The concerned industries would be mostly manufacturing, construction, and service business where it is difficult to attract enough native workers, and particularly small and medium business with less than 300 workers suffering from severe labor shortages.

□ The size of the inflow of foreign workers will be determined at an adequate level, taking into account the trends in the supply&demand.  To avoid having employers relying too much on foreign workers, ceilings will be set for each workplace.

□ Sending countries will be selected by the FWPC based on the rate of illegally staying workers, preference by employers, etc and MOU will be signed first with country that accept all the requirements of Korea such as infrastructure of workers to be sent, fair selection, and post-management capability, etc.

- Designation of sending countries for the Employment Permit System will proceed, independently of those of the current Industrial Trainee System.

- The sending countries for the Employment Permit System are going to be restricted to an appropriate number.

□ Every year, rate of illegally staying foreign workers, preference by employers,  irregularities in regard to sending or receiving foreign workers will be taken into considerations to adjust the quotas for each countries and  if certain level is crossed, designation of sending country can be cancelled.

□ Selection of Sending country and introduction of foreign workers

□ The sending countries designated by the FWPC and the Korean government (Ministry of Labor) sign MOU on sending and receiving foreign workers.

- Selection and introduction of foreign job-seekers are to be done by public organizations of both Korea and sending countries. Private sending agencies are not allowed to intervene.

- For Korea, job-searching and employment management for foreign workers will be conducted by the Employment Security Centers of the Labor Ministry, and bringing foreign workers to Korea will be the responsibility of the Human Resources Development Service of Korea(HRD Service Korea).

□ For the Industrial Trainee System, private sending agencies performed recruiting and selecting industrial trainees, which is leading to problems such as irregularities in sending and receiving foreign workers which served as causes for workers' leaving their workplace arranged.

□ Government and public organizations of sending countries shall make a list of foreign job-seekers three to five folds of the quota for the Employment Permit System in accordance with criteria such as educational background, experience, and Korean language test stated in the MOU and send it to the public organization of Korea(the HRD Service Korea).

□ Korean Language Test will be mandatory from August 2005 to be used as a criterion for selecting foreign workers.

□ For employers that have made efforts but failed to hire native workers for one month through the Employment Security Center of the Ministry of Labor, hiring foreign workers will be permissible.

- Korean employers having been acknowledged to have labor shortage may select right persons from the list of foreign workers at the Employment Security Centers and sign a standard labor contract with  them.

< Key details of MOU (proposal) >

□ Recruiting of foreign workers who want to seek jobs in Korea shall be done only through government and public organizations

□ Sending countries shall present various criteria to make a list of foreign workers in an objective manner(educational background·experience·Korean Language Test, exclusion of ex-convicts, etc)

□ It is important to note that being in the list of foreign workers does not guarantee employment in Korea.

□ Every two year, adjustment of quota and renewal of MOU are to be made depending on irregularities related with sending and receiving foreign workers, the rate of illegally staying foreigners, false information about foreign workers, preference of employers, etc

□ Aggressive efforts such as training for the prevention of runways without notice shall be made

□ Sending countries will manage basic items to manage foreign workers in Korea

□ Foreign workers are being invited to Korea on the condition that illegally staying foreigners are returned home

□ Employment Management of Foreign Workers

□ Working period is set at maximum three years to prevent settlement of foreign workers in Korea, and employers and foreign workers are to decide every year whether to renew the labor contract.

- Foreigners who left Korea after having worked in Korea under the Employment Permit System can not be employed again under the same System unless they have stayed outside of Korea for more than one year since their departure.

□ Considering that the working period is short(3 years) under the Employment Permit System, accompanying family is banned.

□ Employers and foreign workers shall sign a labor contract using the standard labor contract to clarify working conditions such as the wage and their working condition.

□ Foreign workers are supposed to work at the workplace where they signed labor contract for the first time.

- But, in the case of inevitable circumstances such as close-down or suspension of business, legitimate withdrawal from the labor contract, workers can be replaced to other businesses through the Employment Security Center.

□ Employers shall subscribe to a "departure guarantee insurance" with a view to ensure a severance pay for foreign workers who leave Korea after having worked faithfully,

- and foreign workers shall subscribe to a "return cost insurance" in order to finance costs of returning their home country.

□ Protection of rights according to the Korean law

□ Foreign workers under the Employment Permit System shall have the status of worker from the beginning and have their basic rights protected equally as Koreans for the three working years according to labor relations laws such as the Labor Standards Act.

- It is possible to differentiate the wage level if it is due to gaps in productivity or experiences between Korean and foreign workers, but it is impossible to unfairly discriminate against foreign workers just because they are not Korean.

□ The Ministry of Labor will step up to monitor businesses that hire foreign workers to prevent industrial accidents, wage dues, and etc.

□ Measures to prevent illegal foreign workers after the introduction of the Employment Permit System

□ The introduction of the Employment Permit System for Foreigners lays an institutional grid that enables foreign workers to work legally in Korea. Accordingly, continuous and adamant crack-down and stricter punishment will be reinforced against illegal workers and their employers.

3. Procedures in Selecting and Receiving Foreign Workers

1. Deciding main policies such as the number of foreign workers to receive and sending countries		□ Important matters related with foreign workforce such as occupations, numbers, and sending countries will be deliberated and decided by the FWPC in OGPC
2. Signing MOUs on sending workforce between the Korean government and a government of a sending country		□ Signing a MOU with a country accepting recruitment procedures of Korea to prevent irregularities related with sending foreign workers. □ Evaluating on a regular basis the implementation of MOU to decide renewing the MOU
3. Preparing a list of job-seeking foreigners ( the government of sending countriesthe →Korean government )		□ Public authorities of sending countries will form a pool of job seekers which will double the size of the selection number based on objective standards such as results of the Korean language test, skills' level or drawing by computers. □ They will regularly send a list of foreign job seekers they prepared to the HRD Korea.
4. Permitting employment of foreigners by issuing a confirmation document for workforce shortages (companies □ the MOL)		□ The MOL will issue a confirmation document for workforce shortages to employers who failed to find workers despite their efforts for one month to hire domestic workers through Employment Stability Centers. This measures is intended to protect employment opportunities of domestic workers. □ Employers issued with the confirmation document for workforce shortages may apply for the employment permit of foreign workers by stating job requirements.

5. Selecting foreign workers to be received (companies □ the MOL)			□ ESC will recommend a few candidates out of a list of foreign job-seekers. □ Employers will select out of the recommended candidates the most optimal foreign worker.
6. Signing a labor contract (companies □ Foreign Workers)			□ Employers will sign the standard labor contract with foreign workers they chose. - The contract will specify the term of contract and working conditions such as wages, working hours, holidays and working place. □ Employer may directly sign labor contracts with foreign workers or by entrust the matter to the HRD Service Korea. By doing this, employers have to cooperate with public authorities of sending countries. □ Foreign workers who concluded the working contract will be provided with the employment manuals.
7. Issuing of the visa issuance certificate (Companies □ the MOJ)			□ Employers will submit the confirmation document for labor shortages and the standard labor contract and be issued with the visa issuance certificate. They may entrust the HRD Service Korea with application work for the issuance of the visa issuance certificate.
8. Receiving foreign workers (Companies □ Foreign Workers)			□ Employers will send foreign workers with the the visa issuance certificate and foreign workers will be issued with the working visa from Korean embassies to their countries, and enter Korea. This work may also be done by the HRD Service Korea when entrusted. □ Foreign workers who entered Korea will complete pre-employment education conducted by the HRD Service Korea and others within the set period.

Flow Chart of the Implementation

of the Employment Permit System for Foreigners

□□□□□□□□□□□□□□□□□□□□□□□□□□□□□□□□□□□□□□□□□□□□□□□□□□□□□□□□□□□□□□□□□□□□□

				FWPC (Chairman :the Minister of the Office of Government Policy Coordination)										①Deciding number of foreign workers to receive and sending countries
MOJ					MOL (Committee on Employment of Foreign Workers)						② Signing the MOU
	⑨Applying for the approval of the visa issuance ·Notifying the results of the application for the approval of the visa issuance				ESC of the MOL (The Central Employment Information Center will be in charge of ③)						③ Preparing and sending a list of candidate workers
				⑤ Issuing the confirmation on workforce shortages ⑦ Recommending workers to be received out of a list (Employment permit)				④Registering to offer a job and making efforts to hire domestic workers ⑥Applying for the employment permit
													Governments of Sending Countries (Public authorities)
			Being able to conduct works of ⑧ ∼ ⑬ when entrusted		Employer
						⑧ Signing the working contract			⑩Issuing the approval of visa issuance			·Registering to seek jobs
			HRD Service Korea
Korean mission to sending countries			⑪Applying for visa issuance			Foreign job seeker
			⑫Issuing the
			visa
											⑬ Entry and Registration

□ Annex

Act on the Foreign Workers Employment, etc.

Act No. 6967, Aug. 16, 2003

Chapter 1

General Provisions

Article 1 (Purpose)

The purpose of this Act is to achieve a smooth supply and demand of manpower and a balanced development of the national economy by systematically introducing and managing foreign workers.

Article 2 (Definition of Foreign Worker)

The term "foreign worker" in this Act refers to a person who does not have a Korean nationality and works or intends to work in business or workplace located in Korea with the purpose of earning wages: provided, that among foreigners who are granted the status of sojourn eligible for employment pursuant to Article 18 ① of the Immigration Control Act, the Presidential Decree may exclude some foreign workers in consideration of the employment sector, period of stay, etc.

Article 3 (Application Scope, etc.)

① This Act shall apply to foreign workers and business or workplace which employ, or intend to employ foreign workers: provided, that this provision shall not apply to seamen who work on board any ship under the Seamen Act and do not have a Korean nationality and a ship owner who employs, or intends to employ the said seamen.

② The matters not prescribed in this Act regarding the entry, stay, departure, etc. of foreign workers shall be governed by the Immigration Control Act.

Article 4 (Foreign Workforce Policy Committee)

① To deliberate and decide on matters concerning the employment management and protection of foreign workers, the Foreign Workforce Policy Committee (hereinafter referred to as "the□Policy Committee") shall be established under the control of the Prime Minister.

② The Policy Committee shall deliberate and decide on matters falling under the following subparagraphs:

1. Matters concerning the establishment of basic plans on foreign workers;

2. Matters concerning the types and size of business eligible for the introduction of foreign workers;

3. Matters concerning the designation and cancellation of a country entitled to send foreign workers (hereinafter referred to as "the□sending country"); and

4. Other matters determined by the Presidential Decree.

③ The Policy Committee shall be comprised of not more than twenty members including one chairperson.

④ The chairpersonship of the Policy Committee shall be assumed by the Minister of the Office for Government Policy Coordination, and the Committee membership by the Vice Minister of Finance and Economy; the Vice Minister of Foreign Affairs and Trade; the Vice Minister of Justice; the Vice Minister of Commerce, Industry and Energy; the Vice Minister of Labor; the head of the Small and Medium Business Administration; and other Vice Ministers of central administrative agencies determined by the Presidential Decree.

⑤ To effectively operate the Policy Committee, a Foreign Workforce Employment Committee (hereinafter referred to as the □Employment Committee□) which deliberates in advance matters concerning the operation of the foreign worker employment system and the protection of the rights and interests of foreign workers shall be established under the Ministry of Labor.

⑥ The Presidential Decree shall determine other necessary matters concerning the organization, function and operation of the Policy Committee and the Employment Committee.

Article 5 (Foreign Workers Introduction Plan)

① The Minister of Labor shall establish a foreign workers introduction plan including matters falling under the following subparagraphs of Article 4 ② after deliberation and decision by the Policy Committee and announce the plan by October 1 every year according to the methods determined by the Presidential Decree.

② Notwithstanding the provisions of paragraph ①, the Minister of Labor may, if necessary to change the foreign workers introduction plan under paragraph ① due to drastic changes in domestic employment situations such as unemployment increases, change the plan after deliberation and decision by the Policy Committee.  In this case, the provisions of paragraph ① shall apply mutatis mutandis to the methods of announcing the changed plan.

③ The Minister of Labor may, if necessary, conduct a survey or research project in order to support foreign worker-related work and necessary matters concerning this shall be determined by the Presidential Decree.

Chapter 2

Employment Procedures for Foreign Workers

Article 6 (Efforts for Hiring Native Workers)

① An employer who intends to hire a foreign worker shall first submit an employment announcement seeking native workers to a Employment Security Center(hereinafter referred to as "Employment Security Center") prescribed in Article 4 ① of the Employment Security Act.

② A head of an Employment Security Center shall, upon receiving an employment announcement seeking nationals for vacant posts under paragraph ①, provide counseling and support to enable the employer to present adequate job requirements, and actively provide job placement services in a way to give priority in hiring to qualified native workers.

③ A head of an Employment Security Center shall issue a confirmation letter stating labor shortages following the conditions determined by the Presidential Decree and the procedures prescribed by the Ordinance of the Ministry of Labor, in case the applicant under paragraph ① fails to hire workers notwithstanding the placement effort prescribed in Paragraph ②.

④ The confirmation letter stating labor shortages issued pursuant to Paragraph ③ shall be valid for three months and its validity may be extended one time under the conditions prescribed by the Presidential Decree.

Article 7 (Job Rosters for Foreign Workers)

① In pursuant to Article 4 ② 3, the Minister of Labor shall prepare a job roster for foreign workers in consultation with a designated sending country under the conditions prescribed by the Presidential Decree.

② When preparing a job roster of foreign job seekers pursuant to Paragraph ①, the Minister of Labor shall administer a Korean Language Proficiency Test (hereinafter referred to as the "Korean Language Proficiency Test") to use the test as the criteria for selecting qualified foreign job seekers.

③ The Presidential Decree shall determine a selection of an agency responsible for administering the Korean Language Proficiency Test pursuant to Paragraph 2, testing methods and other necessary matters concerning the execution of the Korean Language Proficiency Test.

Article 8 (Employment Permit for Foreign Workers)

① An employer who has obtained a document confirming labor shortages pursuant to Article 6 shall apply for permission to employ foreign workers to an Employment Security Center under the conditions prescribed by the Ordinance of the Ministry of Labor.

② Upon receiving the application pursuant to Paragraph ①, a head of an Employment Security Center shall recommend qualified candidates among those registered in the roster of foreign job seekers under Article 7 ①.

③ A head of an Employment Security Center shall immediately issue an employment permit bearing the name of the selected foreign worker to the employer who has selected among the qualified candidates recommended pursuant to Paragraph ②.

④ The Presidential Decree shall determine other necessary matters concerning issuance and management of the foreign worker employment permit under paragraph ③.

⑤ No one other than the Employment Security Center shall be involved in the process of hiring foreign workers including the selection and placement thereof.

Article 9 (Labor Contract)

① In case an employer intends to employ the foreign worker selected pursuant to Article 8 ③, the employer shall sign a labor contract with the foreign worker by using the standard labor contract form prescribed by the Ordinance of the Ministry of Labor.  In this case, the Presidential Decree shall determine other necessary matters concerning the procedures for and effective date of the labor contract.

② The term of the labor contract shall not exceed one year: provided, that the labor contract may be renewed up to the period prescribed in Article 18 ①, in which case the term of each renewed contract shall not exceed one year.

Article 10 (Certificate for Visa Issuance)

An employer who has signed a labor contract with a foreign worker pursuant to Article 9 ① may apply for a certificate for visa issuance to the Minister of Justice on behalf of the foreign worker concerned pursuant to Article 9 ② of the Immigration Control Act.

Article 11 (Employment Training for Foreign Workers)

① Foreign workers shall receive training (hereinafter referred to as "the employment training for foreign workers")which is provided by organizations determined by the Presidential Decree to learn matters necessary for employment, within the period determined by the Ordinance of the Ministry of Labor after entering Korea.

② An employer shall enable foreign workers to receive the employment training for foreign workers.

③ An Ordinance of the Ministry of Labor shall determine the hours and contents of a employment training for foreign workers and other matters necessary to provide a employment training for foreign workers.

Article 12 (Special Cases in Employing Foreign Workers)

① A business or employer of workplace falling under the following subparagraphs may employ foreigners who have entered after obtaining a visa determined by the Presidential Decree and are willing to be employed in Korea:

1. Construction business or workplace determined by the Policy Committee in respect to situation of labor market for daily workers, the prospect of undermining employment opportunity for native workers, and the size of workplace; and

2. Service business or workplace determined by the Policy Committee in respect to the industry-specific characteristics.

② A foreigner prescribed in Paragraph ①, who are willing to be employed in the businesses or workplaces falling under any of Subparagraphs of Paragraph ①, shall submit an employment announcement to an Employment Security Center after completing the employment training for foreign workers and the Minister of Labor shall manage these foreign workers by including them in a job roster for foreign workers.

③ The provisions of Articles 6, 8 and 9 shall apply mutatis mutandis to matters concerning the employment procedures of foreign workers pursuant to Paragraph ①: provided, that the Presidential Decree shall determine business or workplace prescribed in Paragraph ① 1.

④ The head of the Employment Security Center shall issue an Employment Permit Certificate under the conditions prescribed by the Ordinance of the Ministry of Labor to foreign workers who qualify for the criteria set forth by the Presidential Decree and are willing to be employed in the businesses or workplaces prescribed in Paragraph ① 1, among those who have submitted an employment announcement pursuant to Paragraph ②.

⑤ Foreign workers who have either made a labor contract with the employers of the businesses or workplaces prescribed in Paragraph ① 2, or obtained an Employment Permit Certificate pursuant to Paragraph ④ shall obtain permission to change their status of sojourn into one eligible for employment pursuant to Articles 18 ① and 24 of the Immigration Control Act.

⑥ The provisions of Article 21 of the Immigration Control Act shall not be applied to foreign workers who have obtained permission for a change in status of sojourn after receiving a Work Permit Certificate pursuant to Article 4.

Chapter 3

Employment Management of Foreign Workers

Article 13 (Departure Guarantee Insurance and Trust)

① A business or employer of workplace hiring foreign workers(hereinafter referred to as "employer") shall subscribe to a departure guarantee insurance or departure guarantee lump-sum trust with the foreign workers as the insured or beneficiaries.

② If an employer subscribes a departure guarantee insurance or departure guarantee lump-sum trust pursuant to Paragraph ①, the employer shall be deemed to have put in place a severance pay system pursuant to Article 34 of the Labor Standards Act.

③ The Presidential Decree shall determine other necessary matters concerning employers required to subscribe to a departure guarantee insurance or lump-sum trust, subscription methods, contents, management and payment.

Article 14 (Health Insurance)

In applying the National Health Insurance Act, an employer and a foreign worker employed by the employer shall be regarded as the employer under Article 3 of the Act and the workplace-based policyholder under Article 6 ① of the Act, respectively.

Article 15 (Return Cost Insurance and Trust)

① A	foreign worker shall subscribe to a return cost insurance or trust in order to finance costs of returning to his/her home country.

② The Presidential Decree shall determine other necessary matters concerning the subscription methods, contents, management and payment of the returning cost insurance and trust prescribed in Paragraph ①.

Article 16 (Measures Necessary for Return)

An employer shall take necessary measures, such as paying back money and other valuables such as wages, etc. if foreign workers return to their home country due to termination of employment relationships, expiration of period of sojourn, etc.

Article 17 (Employment Management of Foreign Workers)

① An employer shall, when a foreign worker begins to work after entering Korea, or when there are other reasons prescribed by the Presidential Decree such as a change in employment-related matters, report this to the Minister of Labor under the conditions prescribed by the Ordinance of the Ministry of Labor.

② The Presidential Decree shall determine other necessary matters concerning an appropriate employment management of foreign workers.

Article 18 (Restrictions on Employment)

① A foreign worker may work for three years period from the date of their entry.

② A foreigner who left the country after having been employed in Korea shall not be reemployed in pursuant to this Act for one year after the date of his/her departure.

Article 19 (Cancellation of Foreign Worker Employment Permit)

① In case an employer falls under any of the following subparagraphs, the Minister of Labor may order to cancel a foreign worker employment permit under Article 8 under the conditions prescribed by the Presidential Decree:

1. In case an employer has violated wages and other labor conditions promised through contract before the entry;

2. In case the maintenance of labor contract is considered difficult due to overdue wages and the employer's violation of other labor-related laws; or

3. In case employment permit is obtained in false or other fraudulent ways.

② An employer subject to the cancellation of foreign worker employment permit under Paragraph ① shall terminate labor contract with the foreign worker concerned within fifteen days from the date of receiving the order.

Article 20 (Restrictions on Employment of Foreign Workers)

① The Minister of Labor may restrict employers who fall under any of the following subparagraphs from employing foreign workers for three years from the date of incident:

1. Those who employ foreign workers without obtaining an employment permit pursuant to Article 8 ③;

2. Those whose employment permit has been cancelled pursuant to Article 19 ①;

3. Those who have been punished for violating the Immigration Control Act; or

4. Those who fall under the reasons determined by the Presidential Decree.

② In case of restricting the employment of foreign workers pursuant to Paragraph ①, the Minister of Labor shall give a notice to the employer concerned under the conditions prescribed by the Ordinance of the Ministry of Labor.

Article 21 (Implementation of Projects Related to Foreign Workers)

The Minister of Labor shall carry out the following projects with a view to facilitating the employment of foreign workers and effectively managing their employment:

1. A project supporting entry and departure of foreign workers;

2. A project educating foreign workers and their employers;

3. A project on promoting cooperation with related public agencies of sending countries and private groups related to foreign workers;

4. A project on offering services such as counseling to foreign workers and their employers;

5. A project publicizing foreign worker employment system; or

6. Other projects concerning the employment management of foreign workers determined by the Presidential Decree.

Chapter 4

Protection of Foreign Workers

Article 22 (Prohibition of Discrimination)

An employer shall not give unfair and discriminatory treatment to foreign workers on grounds of their status.

Article 23 (Subscription to Guarantee Insurance, etc.)

① A business or employer of workplace determined by the Presidential Decree in consideration of business size and industry-specific characteristics shall subscribe to guarantee insurance to cover their foreign workers against overdue wages.

② A foreign workers employed in the businesses or workplaces determined by the Presidential Decree in consideration of industry-specific characteristics shall subscribe to casualty insurance to cover themselves against any illness or death.

③ The Presidential Decree shall determine other necessary matters concerning the subscription methods, contents, management and payment of the guarantee insurance and casualty insurance under paragraphs ① and ②.

Article 24 (Support for Foreign Workers related Organization, etc.)

① The government may support an organization or group which offer foreign workers counseling, education and other services determined by the Presidential Decree a part of the necessary costs of providing the services within the limit of available budgets.

② The Presidential Decree shall determine other necessary matters concerning application requirements, criteria, procedures, etc. in accordance with paragraph ①.

Article 25 (Permission for Change of Business or Workplace)

① In case a foreign worker is difficult to continue his/her normal labor relationship in the business or workplace due to the situations falling under any of the following subparagraphs, the foreign worker may apply to an Employment Security Center for a transfer to other businesses or workplaces under the conditions prescribed by the Ordinance of the Ministry of Labor:

1. In case an employer intends to cancel labor contract during the contract period or to reject the renewal of contract after expiration for justifiable reasons;

2. In case it is deemed impossible to continue to work in the workplace because of shutdown, business closure and other reasons not attributable to foreign worker;

3. In case an employment permit is cancelled or any restriction is imposed on employment of foreign workers pursuant to Article 19 ① and Article 20 ①, respectively; and

4. In case there are other reasons determined by the Presidential Decree.

② The Provisions of Articles 6, 8 and 9 shall apply mutatis-mutandis to the procedures and methods of re-employment of a foreign worker after he/she applies for a change of business or workplace pursuant to Paragraph ①.

③ In case a foreign worker has failed either to obtain a permission to change his/her workplace pursuant to Article 21 of the Immigration Control Act within two months after applying for a change of business or workplace pursuant to Paragraph ①, or to apply for a change of business or workplace within one month after the termination of labor contract with his/her employer, the foreign worker shall depart from the country.

④ A foreign worker shall not make the transfer to other businesses or workplaces as prescribed in Paragraph ①, in principle, more than three times during the period of sojourn prescribed in Article 18 ①: provided, that this shall not apply in case there are inevitable reasons determined by the Presidential Decree.

Chapter 5

Supplementary Provisions

Article 26 (Report and Investigation, etc.)

① The Minister of Labor may, if deemed necessary, order employers, foreign workers or the foreign workers-related groups supported under Article 24 ① to make a report, submit related documents and do other necessary things, and have the public official concerned ask questions to interested persons or investigate or inspect related books, documents, etc.

② The public official who conducts investigation or inspection pursuant to paragraph ① shall carry a certificate indicating his/her authority and show it to the interested person.

Article 27 (Collection of Fees)

The Minister of Labor may, if necessary to carry out projects related to foreign workers pursuant to Article 21, collect fees and other necessary expenses under the conditions prescribed by the Ordinance of the Ministry of Labor.

Article 28 (Delegation and Entrustment of Authority)

In accordance to the conditions prescribed by the Presidential Decree, the Minister of Labor my delegate the authority to a head of regional labor office or entrusted to the Human Resources Development Service of Korea under the Act on Human Resources Development Service of Korea or to the person determined by the Presidential Decree under the conditions prescribed by the Presidential Decree.

Chapter 6

Penal Provisions

Article 29 (Penal Provisions)

A person who falls under any of the following subparagraphs shall be punished by imprisonment for up to one year or a fine not exceeding 10 million won:

1. A person who is involved in the selection, placement and hiring of foreign workers in violation of Article 8 ①;

2. A person who fails to take necessary measures required for foreign workers to return to home country in violation of Article 16;

3. A person who fails to terminate labor contract with foreign workers in violation of Article 19 ②; and

4. A person who obstructs the change of business or workplace prescribed in Article 25.

Article 30 (Penal Provisions)

A person who falls under any of the following subparagraphs, shall be punished by fine not exceeding 5 million won:

1. A person who fails to sign a labor contract using the standard labor contract form in violation of Article 9 ①;

2. A person who fails to subscribe to a departure guarantee insurance or lump-sum trust in violation of Article 13 (1); and

3. A person who fails to subscribe to the guarantee insurance or casualty insurance prescribed in Article 23.

Article 31 (Joint Penal Provisions)

If a representative of a corporation, an agent, an employee or any other hired person of a corporation or individual commits an offense as prescribed in Articles 29 and 30 in connection with affairs of the corporation or individual, the fine prescribed in the respective Articles shall be imposed on the corporation or individual, in addition to punishment of the offender.

Article 32 (Fine for Negligence)

① A person who falls under any of the following subparagraphs shall be punished by a fine for negligence not exceeding 1 million won:

1. A person who violates the provisions of Article 11 ②;

2. A person who fails to subscribe to insurance or trust in violation of Article 15 ①;

3. A person who either fails to report or makes a false report in violation of Article 17 ①; and

4. A person who, not complying with the provisions of Article 26 ①, fails to report or makes a false report, fails to submit related documents or submits false documents, or refuses, obstructs or avoids the questions, investigation or inspection prescribed in the same Paragraph.

② The fine for negligence prescribed in paragraph ① shall be imposed and collected by the Minister of Labor under the conditions prescribed by the Presidential Decree.

③ Any person who makes an appeal of dissatisfaction with the disposition of a fine for negligence prescribed in Paragraph ② may raise objection to the Minister of Labor within thirty days from the date of notifying the person of the disposition.

④ If a person who is subject to the disposition of a fine for negligence prescribed in Paragraph ② raises an appeal pursuant to paragraph ③, the Minister of Labor shall, without delay, notify the competent court, which shall, upon receiving the notification, bring the case of fine for negligence to trial under the Non-Contentious Case Litigation Procedure Act.

⑤ If no appeal is raised and no fine for negligence is paid within the period referred to in paragraph ③, the said fine for negligence shall be collected according to the examples of the disposition of national taxes in arrears.

Chapter 7

Addenda

Article 1 (Enforcement Date)

This Act shall enter into force one year after its promulgation: provided that the provisions of Articles 4, 5 and 7 ① of the Act and Article 2 of the Addenda shall take effect on the date of promulgation and the provisions of Article 7 ② and ③ shall take effect two years after its promulgation.

Article 2 (Special Cases Concerning Illegal Foreign Workers)

① A foreign worker who stays in Korea in violation of Article 17 ① or 18 ① of the Immigration Control Act but meets the following criteria shall be permitted to be engaged in employment in the businesses or workplaces for up to two years, as long as the total period of stay does not exceed five years, and the Minister of Justice shall grant the foreign worker the status of sojourn eligible for employment prescribed in Article 18 ① of the Immigration Control Act:

1. A person who had stayed in Korea for less than three years as of March 31, 2003;

2. A person employed in the types of business determined and announced by the Minister of Labor and has received an employment confirmation letter from an Employment Security Center; and

3. A person who has reported his/her stay in Korea following a procedure determined by the Minister of Justice.

② If a foreign worker who stays in Korea in violation of Article 17 ① or 18 ① of the Immigration Control and meets the following criteria voluntarily leave the country within the period determined by the Minister of Justice, the provisions of Articles 95 ⑤ and 102 of the Immigration Control Act shall not be applied; the foreign worker shall be permitted to engage in employment in the business or workplace where he/she was originally employed prior to departure from the country, as long as the total period of his/her stay including that before departure does not exceed five years; and the Minister of Justice shall grant this foreign worker the status of sojourn eligible for employment prescribed in Article 18 ① of the Immigration Control Act:

1. A person who had stayed in Korea for more than three years, but less than four years as of March 31, 2003;

2. A person employed in the types of business determined and announced by the Minister of Labor and has received a document confirming his/her employment from an Employment Security Center; and

3. A person who has reported his/her stay in Korea following the procedures determined by the Minister of Justice.

③ The provisions of Articles 6 through 13, 15, 18 ①, and 23 shall not apply to foreign workers employed in Korea pursuant to Articles 1 and 2.

④ Those who violate the provisions of Articles 17 ① and 18 ① of the Immigration Control Act but do not fall under Paragraphs ① and ② shall voluntarily leave the country within the period determined by the Minister of Justice, in which case the provisions of Articles 94 ⑤ and 102 of the Immigration Control Act shall not be applied to those who have voluntarily left the country.

Article 3 (Revision of Other Acts)

The Act on Human Resources Development Service of Korea shall be amended as follows:

The Item 10-2 of Article 6 shall be newly inserted as follows :

10-2	Mandate entrusted to the HRD Service of Korea under Article 28 of the Act on the Employment, etc. of Foreign Workers