Jan 17, 2012

Return of Fraudulently Obtained Subsidies by Employer in Korea (Employer Urgent Update)

The Seoul Administrative Court ruled, late in 2011, that the provision of the Enforcement Decree of the Employment Insurance Act (article 56(2)) requiring the return by an employer to the Korean government of all fraudulently obtained vocational training funds (and other like funds) collected by the Korean employer was unconstitutional (2011 gu-hap 14852).  The law required, in most cases, the return of all vocational training funds received if any funds were received fraudulently.

The holding of the Administrative Court of Korea noted that the "“Article 56(2) of the Enforcement Decree of the Employment Insurance Act, before amendment, has failed to properly apply to the matter the concepts of "minimal intrusion" and "balance of legal interests,"" violating the Constitution because it unduly infringes the ‟property rights” of companies obtaining fraudulent funds.

If your company has been required to return subsidies for any reasons, please contact an attorney immediately.   You may be able to receive a refund from the Korean government.
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SeanHayes@ipglegal.com