BUDGET AND ACCOUNTS ACT
Wholly Amended
Amended
Amended
Amended
Amended
Amended
Amended
Amended
Amended
Amended
Amended
CHAPTER I
Mar.
Nov.
Dec.
Dec.
Dec.
Jan.
Dec.
Jan.
Feb.
May
Dec.
31,
30,
27,
31,
31,
5,
12,
21,
5,
24,
31,
1989
1991
1991
1991
1993
1995
1996
1999
1999
1999
1999
Act
Act
Act
Act
Act
Act
Act
Act
Act
Act
Act
No.
No.
No.
No.
No.
No.
No.
No.
No.
No.
No.
4102
4408
4445
4461
4659
4868
5170
5662
5742
5982
6075
GENERAL PROVISIONS
Article 1 (Purpose)
(1) The purpose of this Act is to provide for the national budget and accounting and the
fundamental matters related thereto.
(2) The management and accounting of goods and national property shall be subject to
such conditions as prescribed separately by other Acts, but matters for which no special
provision is made by such Acts shall be subject to such conditions as provided for in this
Act.
Article 2 (Fiscal Year) The fiscal year of the State shall commence on the lst of January and
end on the 31st of December every year.
Article 3 (Principle of Independence of Fiscal Year) The expenditures of each
shall be appropriated with the revenues of the same fiscal year.
fiscal year
Article 4 (Term of Receipts and Disbursements, and Division by Fiscal Year to which They
Belong)
(1) Affairs related to receipts and disbursements of the revenues and expenditures which
belong to one fiscal year shall be completed by the 10th of March of the following calendar
year.
(2) Division of revenues and expenditures by the fiscal year to which they belong shall be
determined by the Presidential Decree.
Article 5 (Financial Resources for Annual Expenditure of State) The financial resources of
the annual expenditure of the State shall be the revenue other than state bonds or
borrowings (including loan funds introduced from foreign countries, international cooperative
organizations and foreign corporations; hereinafter the same shall apply): Provided, That in an
unavoidable case, it may be met with state bonds or borrowings in an amount, the limit of
which is approved by the National Assembly.
Article 6 (Treasury Bills and Temporary Borrowings)
(1) When it is necessary for receipts and disbursements of national funds, the State may
issue treasury bills or borrow funds from the Bank of Korea on a temporary basis.
(2) The treasury bills as referred to in paragraph (1) may be redeemed within one year from
the date of issuance.
(3) The treasury bills and temporary borrowings as referred to in paragraphs (1) and (2)
shall be redeemed with the revenue of the fiscal year concerned.
(4) The issuance of the treasury bills and the maximum amount of the temporary
borrowings shall be approved each fiscal year by the National Assembly by each account in
need of them.
Article 7 (Establishment of Fund)
(1) The State may establish a special fund by an Act only when it is required to operate a
certain fund for a specified purpose.
(2) The fund as referred to in paragraph (1) may be operated without conforming to the
budgets of revenues and expenditures.
(3) through (7) Deleted. <by Act No. 4461, Dec. 31, 1991>
Article 8 (Budget and Management of Subsidies) Matters concerning the budget and
management of the State subsidies shall be determined separately by an Act.
Article 9 (Division of Accounts)
(1) The accounts of State shall be divided into general and special accounts.
(2) Special accounts shall be established by an Act, when the State operates special
enterprises, when the State holds and operates special funds, or when specified revenues are
appropriated to specified expenditures and it is deemed necessary to account for distinctly
from the general accounts.
Article 10 (Principle of Enterprise Accounting) Enterprises operated by the Government under
the special accounts may be administered on the principle of enterprise accounting in such a
manner as may be prescribed separately by an Act.
Article 11 (Budget and Accounting of Government-Invested Institutions) Matters concerning
the budget and accounting of government-invested institutions shall be determined
separately by an Act.
Article 12 (Claim and Obligation of State)
(1) The whole or partial exemption or alteration of effect of the claims held by the State
shall be made in accordance with the provisions of any Act.
(2) Except as otherwise provided by any Act or contract, the State shall not delay the
fulfillment of its obligation.
Article 13 (Disposal of State Property)
(1) Except as otherwise provided by any Act, no property of the State shall be used for any
exchange, concession, loan, contribution or means of payment.
(2) The property as referred to in paragraph (1) shall be all property other than cash.
Article 14 (Definition of Heads of Central Government Agencies and Prohibition of Direct Use
of Revenues)
(1) For the purpose of this Act, the term "heads of central government agencies" means the
Speaker of the National Assembly, the Chief Justice of the Supreme Court, the President of
the Constitutional Court, the Chairman of the National Election Commission, and heads of
central administrative agencies established under the Constitution, the Government
Organization Act or other Acts.
(2) The Speaker of the National Assembly, the Chief Justice of the Supreme Court, the
President of the Constitutional Court and the Chairman of the National Election Commission
may delegate their duties as prescribed by this Act to the Secretary-General of the National
Assembly, the Director of the Office of Court Administration of the Supreme Court, the
Secretary-General of the Constitutional Court and the Secretary-General of the National
Election Commission. In this case, the Secretary-General of the National Assembly, the
Director of the Office of Court Administration of the Supreme Court, the Secretary-General of
the Constitutional Court and the Secretary-General of the National Election Commission shall
be considered as heads of central government agencies as referred to in paragraph (1) to the
extent of delegation. <Amended by Act No. 4408, Nov. 30, 1991; Act No. 4659, Dec. 31,
1993>
(3) When the Speaker of the National Assembly, the Chief Justice of the Supreme Court, the
President of the Constitutional Court, and the Chairman of the National Election Commission
delegate their duties under paragraph (2), they shall notify the Minister of Finance and
Economy, the Minister of Planning and Budget and the Board of Audit and Inspection thereof.
<Amended by Act No. 4408, Nov. 30, 1991; Act No. 4659, Dec. 31, 1993; Act No. 5742, Feb.
5, 1999; Act No. 5982, May 24, 1999>
(4) Except as otherwise provided by other Acts, the head of each central government
agency shall pay the revenues under his jurisdiction to the National Treasury, and shall not
use them directly.
Article 15 (Control over Affairs concerning Budget and Accounting)
(1) Affairs concerning Acts and subordinate statutes related to the budget shall be
controlled by the Minister of Planning and Budget and those concerning Acts and subordinate
statutes related to accounting, by the Minister of Finance and Economy. <Amended by Act
No. 5742, Feb. 5, 1999; Act No. 5982, May 24, 1999>
(2) Deleted. <by Act No. 4659, Dec. 31, 1993>
Article 16 (Establishment, etc. of Medium- and Long-Term Plan)
(1) If it is deemed necessary to estimate the financial demand and available resources for
several years for the purpose of the efficiency and soundness of the financial operation, the
Minister of Planning and Budget may establish a medium-and long-term financial operation
plan. <Amended by Act No. 5742, Feb. 5, 1999; Act No. 5982, May 24, 1999>
(2) When the head of each central government agency establishes a medium-and longterm plan accompanied by the budget, he shall, in advance, consult with the Minister of
Planning and Budget. <Amended by Act No. 5742, Feb. 5, 1999; Act No. 5982, May 24,
1999>
(3) When a local government establishes a plan of projects to be carried out by the
financial support of the State, it shall obtain a prior approval of the head of related central
government agency before the fiscal year begins.
(4) When the head of a central government agency grants an approval as referred to in
paragraph (3), he shall also consult with the Minister of Planning and Budget in advance.
<Amended by Act No. 5742, Feb. 5, 1999; Act No. 5982, May 24, 1999>
Article 17 Deleted. <by Act No. 4659, Dec. 31, 1993>
CHAPTER II
SECTION 1
BUDGET
General Provisions
Article 18 (Definition of Revenue and Expenditure and Principle of Incorporation into Budget)
(1) All revenues in a fiscal year shall be the annual revenue, and all expenditures shall be
the annual expenditure.
(2) All revenues and expenditures shall be incorporated into the budget: Provided, That if
the State makes a contribution in kind or induces foreign loans and re-lends them, they may
be disposed of apart from the budget of revenues and expenditures.
(3) In case of foreign loans for purchase of goods, if the annual revenue exceeds the
budget due to an unavoidable transfer of the predetermined portion to be drawn in the
preceding year or a fluctuation of the exchange rate, the disbursement may be made in
excess of the estimated expenditures concerned.
Article 19 (Contents of Budget) The budget shall refer generally to the general budget rules,
revenue and expenditure budgets, continuing expenditure, specified carry-over funds and
action of Treasury to bear liability.
Article 20 (Division of Budget)
(1) The revenue and expenditure budgets may, if necessary, be divided into accounts.
(2) The revenue and expenditure budgets shall be divided by organization of the central
government agencies.
(3) The contents of the revenue budget shall be divided into subchapters and sections by
nature, and those of the expenditure budget, into chapters, subchapters and sections by
function, nature or agency, in accordance with the division under paragraph (2).
Article 21 (Reserve Fund) In order to meet unforeseeable extra-budgetary expenditures or
expenditures in excess of the budget, the Government may appropriate such sum as deemed
proper as reserve fund in the budget of revenue and expenditure.
Article 22 (Continuing Expenditure)
(1) The total expenditure and yearly installments of construction works or manufactures and
research and development projects the completion of which demands several years shall be
determined and may be disbursed over several years within the limit approved in advance by
the National Assembly.
(2) The period in which the State may make disbursements under paragraph (1), shall be
not more than five years from the fiscal year concerned: Provided, That if it is deemed
necessary to extend such period, it may be extended through an approval of the National
Assembly.
Article 23 (Specified Carry-Over Funds) If a disbursement of any item in the expenditure
budget is not expected to be completed within the fiscal year due to its nature, such effect
shall be specified in the budget of revenue and expenditure, and it may be carried over to
and used in the following fiscal year with the prior approval of the National Assembly.
Article 24 (Act to Which Liabilities are Borne from Treasury)
(1) If the State bears liabilities other than those as prescribed by Acts or included within the
limit of the annual expenditure amount or the total of continuing expenditure, it shall be
approved in advance as a budget by the National Assembly.
(2) The State may, if necessary for natural disaster relief other than those as referred to in
paragraph (1), do any act bearing liabilities in each fiscal year within the limit approved by the
National Assembly. <Newly Inserted by Act No. 4659, Dec. 31, 1993>
(3) When the State has done any act bearing liabilities under paragraph (2), it shall submit a
report thereof to the National Assembly not later than one hundred and twenty days before
the next fiscal year commences. <Newly Inserted Act No. 4659, Dec. 31, 1993>
SECTION 2 Compilation of Budget Bill
Article 25 (Guideline for Compilation of Budget Bill and Term of Submission of Written
Request for Budget)
(1) The head of each central government agency shall submit an operation plan for new
projects in the following year and major continuing projects as determined by the Minister of
Planning and Budget to the Minister of Planning and Budget by the end of February every
year. <Amended by Act No. 5742, Feb. 5, 1999; Act No. 5982, May 24, 1999>
(2) The Minister of Planning and Budget shall notify the head of each central government
agency of the guidelines for compilation of the budget bill of the following year, which is
approved by the President through a deliberation of the State Council not later than the 31st
of March every year. <Amended by Act No. 5742, Feb. 5, 1999; Act No. 5982, May 24, 1999>
(3) The head of each central government agency shall prepare a written request for the
revenue and expenditure budgets, continuing expenditure, specified carry-over funds and
acts to which liabilities are borne from Treasury (hereinafter referred to as the "written request
for budget") of the following year, which are under his jurisdiction, according to the guidelines
for compilation of the budget bill as referred to in paragraph (2), and submit it to the Minister
of Planning and Budget not later than the 31st of May every year. <Amended by Act No. 5742,
Feb. 5, 1999; Act No. 5982, May 24, 1999>
(4) A written request for budget as referred to in paragraph (3) shall be accompanied by
documents necessary for the compilation of the budget and the application of budget
management rules under the Presidential Decree.
Article 26 (Budgetary General Provisions) The budgetary general provisions shall, in addition
to the general provisions concerning the revenue and expenditure budgets, continuing
expenditure, specified carry-over funds and acts to which liabilities are borne from Treasury,
include the following matters:
1.The maximum amount of national bonds or borrowing funds under the proviso of Article
5;
2.The issuance of treasury bills and the maximum amount of temporary borrowing funds
under Article 6; and
3.Other matters necessary for the execution of budget.
Article 27 (Causes for Acts to Which Liabilities are Borne from Treasury and Amount thereof)
For an act to which liabilities are borne from Treasury, the cause thereof shall be specified for
each matter, and the year in which the act is performed, the redemption year and the amount
of liability to be borne shall be indicated.
Article 28 (Compilation of Budget Bill) The Minister of Planning and Budget shall compile the
budget bill on the basis of a written request for budget under Article 25, and obtain the
approval of the President through a deliberation of the State Council. <Amended by Act No.
5742, Feb. 5, 1999; Act No. 5982, May 24, 1999>
Article 29 (Budget of Independent Institutions) If the requested amount of the annual
expenditure budget of the National Assembly, the Supreme Court, the Constitutional Court,
the Board of Audit and Inspection, and the National Election Commission (hereinafter referred
to as "independent institutions") is to be reduced, an opinion of the head of the independent
institution concerned shall be sought by a meeting of the State Council.
Article 30 (Submission of Budget Bill to National Assembly) The Government shall submit the
budget bill as prescribed in Article 28 to the National Assembly at least ninety days before the
fiscal year begins.
Article 31 (Documents Appended to Budget Bill) The budget bill submitted to the National
Assembly shall be accompanied by the following documents:
1.The guidelines for compilation of the budget bill under Article 25 (2);
2.The item-by-item explanation of the revenue and expenditure budgets;
3.The explanation of acts to which liabilities are borne from Treasury;
4.The gross and net accounts of the revenue and expenditure budgets;
5.The statement on the actual results of the redemption of the national bonds and
borrowing funds at the end of the year before the preceding year, the present amount thereof
presumed at the end of the preceding and current years, and the annual redemption
schedules;
6.For acts to which liabilities are borne from Treasury continuously after the following year,
the statement on the amount or presumed amount of the expenditure by the end of the
preceding year and the predetermined amount of the expenditure after the current year;
7.For the continuing expenditure, the statement on the amount or presumed amount of the
expenditure until the end of the preceding year, the predetermined amount of the expenditure
after the current year, the overall project plans and the situation of progress thereof;
8.The table of fixed number of personnel on the budget and the base unit price for
compilation of the budget bill;
9.The statement on the present amount of the State property at the end of the year before
the preceding year, and the presumption of the present amount thereof at the end of each of
the preceding and current years;
10.If the budgetary amount requested by an independent institution is reduced, reasons of
such reduction and opinions of the head of the independent institution concerned; and
11.Other documents clarifying the financial situation and contents of the budget bill.
Article 32 (Revision of Budget Bill Submitted to National Assembly) When the Government
wishes to partially revise the budget bill due to any inevitable reason after submitting it to the
National Assembly, it may submit a revised budget bill to the National Assembly with the
approval of the President through a deliberation of the State Council.
Article 33 (Revised Supplementary Budget Bill)
(1) If it is required to modify the already approved budget due to any cause which has
taken place after the budget enters into force, the Government may compile a revised
supplementary budget bill and submit it to the National Assembly.
(2) If a revised budget bill or revised supplementary budget bill is submitted under Article 32
(1), all or part of documents appended to the budget bill under Article 31 may be omitted.
Article 34 (Execution of Budget Pending Approval)
(1) If a budget bill is not approved by the National Assembly for any inevitable reason
before the fiscal year begins, the Government shall execute the budget pursuant to Article 54
(3) of the Constitution.
(2) The budget executed under paragraph (1) shall, when the budget of the year concerned
is approved, be considered to be executed under such approved budget.
SECTION 3
Execution of Budget
Article 35 (Allocation of Budget)
(1) When the budget enters into force, the head of each central government agency shall
submit a written request for budget allocation including the budget of revenue and
expenditure, continuing expenditure and act to which liabilties are borne from Treasury to the
Minister of Planning and Budget. <Amended by Act No. 5742, Feb. 5, 1999; Act No. 5982,
May 24, 1999>
(2) The Minister of Planning and Budget shall prepare a quarterly budget allocation plan on
the basis of a written request for budget allocation as referred to in paragraph (1) and a
monthly financing plan as prescribed in Article 57 (2), and obtain the approval of the
President through a deliberation of the State Council together with the monthly financing plan
submitted by the Minister of Finance and Economy: Provided, That if it is required to revise
the monthly financing plan submitted by the Minister of Finance and Economy in preparing
the annual expenditure budget allocation plan, the Minister of Planning and Budget shall
consult with the Minister of Finance and Economy. <Amended by Act No. 5742, Feb. 5, 1999;
Act No. 5982, May 24, 1999>
(3) When the Minister of Planning and Budget allocates the budget to the head of each
central government agency, he shall notify the Minister of Finance and Economy and the
Board of Audit and Inspection thereof. <Amended by Act No. 5742, Feb. 5, 1999; Act No.
5982, May 24, 1999>
(4) The Minister of Planning and Budget may, if necessary, allocate the budget before the
fiscal year begins under the Presidential Decree. <Amended by Act No. 5742, Feb. 5, 1999;
Act No. 5982, May 24, 1999>
(5) With respect to a project the budget of which is appropriated in total amount, and which
is prescribed in the Presidential Decree, the head of each central government agency shall
establish an execution program of the project, and consult with the Minister of Planning and
Budget thereon, before the budget is allocated. <Newly Inserted by Act No. 4659, Dec. 31,
1993; Act No. 5742, Feb. 5, 1999; Act No. 5982, May 24, 1999>
Article 36 (Prohibition of Use of Budget for Unauthorized Purpose, and Transfer of Budget)
(1) The head of each central government agency may neither use the expenditure budget
for any purpose not specified in the budget, nor transfer it between agencies or chapters,
sections or paragraphs as specified in the budget: Provided, That if it is approved in advance
as a budget by the National Assembly under the necessity of executing the budget, it may be
transferred and used with the approval of the Minister of Planning and Budget. <Amended by
Act No. 5742, Feb. 5, 1999; Act No. 5982, May 24, 1999>
(2) If any change in function and competence is caused by an enactment, revision or
repeal of Acts and subordinate statutes relating to the organization, etc. of the Government,
the Minister of Planning and Budget may, upon a request of the head of the central
government agency concerned, divert and transfer the budget to each other. <Amended by
Act No. 5742, Feb. 5, 1999; Act No. 5982, May 24, 1999>
(3) When the Minister of Planning and Budget diverts or transfers the budget under the
proviso of paragraphs (1) and (2), he shall notify the head of the central government agency
concerned, the Minister of Finance and Economy and the Board of Audit and Inspection
thereof. <Amended by Act No. 5742, Feb. 5, 1999; Act No. 5982, May 24, 1999>
Article 36-2 (Payment of Incentive Allowance from Budget)
(1) If revenues are increased or expenditures are retrenched due to the improvement of a
budget execution method or system, the head of each central government agency may pay a
person contributing thereto an incentive allowance from part of such increased or retrenched
budget or appropriate it for any other project.
(2) If the head of each central government agency intends to pay an incentive allowance
from part of increased or retrenched budget or appropriate it to any other project under
paragraph (1), he shall do so via the deliberation of the Budget Incentive Allowance
Deliberation Committee.
(3) Necessary matters concerning the payment of an incentive allowance, appropriation to
any other project, and organization and operation of the Budget Incentive Allowance
Deliberation Committee under paragraphs (1) and (2) shall be prescribed by the Presidential
Decree. [This Article Newly Inserted by Act No. 5742, Feb. 5, 1999]
Article 37 (Diversion of Budget)
(1) The head of each central government agency may divert the amount of each
subparagraph or item with the approval of the Minister of Planning and Budget under the
Presidential Decree. <Amended by Act No. 5742, Feb. 5, 1999; Act No. 5982, May 24, 1999>
(2) Notwithstanding the provisions of paragraph (1), the head of each central government
agency may divert each fiscal year the amount of each subparagraph or clause within the limit
as determined by the Minister of Planning and Budget. <Amended by Act No. 5742, Feb. 5,
1999; Act No. 5982, May 24, 1999>
(3) When the Minister of Planning and Budget approves the diversion under paragraph (1),
he shall deliver a statement as to such diversion to the head of the central government
agency concerned, the Minister of Finance and Economy and the Board of Audit and
Inspection, and when the head of each central government agency makes a diversion under
paragraph (2), he shall deliver a statement specifying the amount of each diverted item and a
reason thereof to the Minister of Finance and Economy, the Minister of Planning and Budget
and the Board of Audit and Inspection. <Amended by Act No. 5742, Feb. 5, 1999; Act No.
5982, May 24, 1999>
(4) The amount of budget diverted under paragraph (1) or (2) shall be specified on a
written settlement report of revenue and expenditure accounts in which a reason thereof is
stated.
Article 38 (Carry-Over of Expenditure Budget)
(1) The expenditure budget of each fiscal year shall not be carried over and used in the
following year: Provided, That the following expenses in the expenditure budget may be
carried over and used in the following fiscal year: <Amended by Act No. 4659, Dec. 31, 1993;
Act No. 5742, Feb. 5, 1999>
1.Specified carry-over fund;
2.Expenses for which an act causing disbursement is performed in the year, but the act of
disbursement is not performed in the year by any inevitable reason, and those incidental to
them, for which no act causing disbursement is performed;
3.In a case where a long time is required until an act causing disbursement is performed
after a public notice on a tender, expenses notified publicly for a tender to do the act
responsible for disbursement and prescribed by the Presidential Decree;
4.Compensations for losses necessary for the execution of any project for public interests
or other public services, which are prescribed by the Presidential Decree; and
5. Ordinary expenditures prescribed by the Presidential Decree.
(2) Notwithstanding the provisions of paragraph (1), the amount of yearly installments of
the continuing expenditure, which is not disbursed in the year concerned, may be carried
over and used gradually by the year in which the project of the continuing expenditure is
completed.
(3) When the head of each central government agency carries over the budget under
paragraphs (1) and (2), he shall prepare a carry-over statement under the Presidential Decree,
and deliver it to the Minister of Finance and Economy, the Minister of Planning and Budget
and the Board of Audit and Inspection not later than the 31st of January of the following year.
<Amended by Act No. 5742, Feb. 5, 1999; Act No. 5982, May 24, 1999>
(4) When the head of each central government agency carries over the budget under
paragraphs (1) and (2), the amount carried over by item shall be considered to be allocated
as a carry-over budget in the following year.
(5) The Minister of Planning and Budget may, if deemed necessary in consideration of the
revenue collection situation, etc., take a prior measure to restrict any carry-over and use of
the expenditure budget under paragraphs (1) and (2) after consulting with the Minister of
Finance and Economy. <Amended by Act No. 5742, Feb. 5, 1999; Act No. 5982, May 24,
1999>
Article 39 (Control and Use of Reserve Fund)
(1) The reserve fund shall be controlled by the Minister of Planning and Budget. <Amended
by Act No. 5742, Feb. 5, 1999; Act No. 5982, May 24, 1999>
(2) In a case where it is required to use the reserve fund, the head of each central
government agency shall prepare a statement specifying the reason therefor, amount and
base of estimate, and submit it to the Minister of Planning and Budget: Provided, That he may,
if necessary for prompt relief from large-scale natural disasters, demand the reserve fund by
making a rough estimate of amounts required for emergency disaster aid and relief on the
basis of a report on situation of damage as prescribed in Article 52 of the Countermeasures
against Natural Disasters Act. <Amended by Act No. 5742, Feb. 5, 1999; Act No. 5982, May
24, 1999>
(3) The Minister of Planning and Budget shall, if deemed necessary after examining the
request as referred to in paragraph (2), coordinate it, prepare a statement of use of the
reserve fund, and obtain the approval of the President through a deliberation of the State
Council. <Amended by Act No. 5742, Feb. 5, 1999; Act No. 5982, May 24, 1999>
(4) The reserve fund of the general accounts may, if necessary, be transferred to the
special accounts as revenue, and used as the expenditure of the special accounts.
Article 40 (Preparation of Reserve Fund Use Statement and Submission to National Assembly)
(1) The head of each central government agency shall prepare a statement of the amount
used as the reserve fund and submit it to the Minister of Finance and Economy. <Amended
by Act No. 5742, Feb. 5, 1999>
(2) The Minister of Finance and Economy shall prepare an all-inclusive table of the amount
used as the reserve fund on the basis of the statement as referred to in paragraph (1), and
obtain the approval of the President through a deliberation of the State Council. <Amended by
Act No. 5742, Feb. 5, 1999>
(3) The Minister of Finance and Economy shall submit the all-inclusive table as referred to
in paragraph (2) to the Board of Audit and Inspection. <Amended by Act No. 5742, Feb. 5,
1999>
(4) The Government shall submit the all-inclusive table of the amount used as the reserve
fund to the National Assembly to be approved one hundred twenty days before the following
fiscal year after the next one begins.
Article 41 (Revenue Substitute Expenses)
(1) Notwithstanding the provisions of Articles 14 (4) and 52, the head of each central
government agency may directly disburse expenses which are related to revenue accruing
from the provision of services and facilities and which are prescribed by the Presidential
Decree (hereinafter referred to as "revenue substitute expenses") to the extent that such
revenue is secured: Provided, That if the revenue exceeds or is expected to exceed the
budget, the excess revenue may be disbursed in excess, to expenses directly related to such
excess revenue and expenses accompanied thereby under the Presidential Decree.
<Amended by Act No. 5742, Feb. 5, 1999>
(2) The head of each central government agency may appoint a public official in charge of
the revenue substitute expenses for the purpose of separate accounting of such revenue
substitute expenses as referred to in paragraph (1).
CHAPTER III
SETTLEMENT OF ACCOUNTS
Article 42 (Preparation and Submission of Settlement of Accounts, etc.) The head of each
central government agency shall prepare each fiscal year a settlement of revenue and
expenditure accounts, a settlement of continuing expenditure accounts and a statement of
accounts as to the obligation of the State, which are under his jurisdiction, under the
conditions as prescribed by the Presidential Decree, and submit them to the Minister of
Finance and Economy by the end of February the following year. <Amended by Act No. 5742,
Feb. 5, 1999>
Article 43 (Preparation of Closing Accounts of Revenue and Expenditure)
(1) The Minister of Finance and Economy shall prepare a closing account of revenues and
expenditures on the basis of the settlement of revenue and expenditure accounts, and obtain
the approval of the President through a deliberation of the State Council. <Amended by Act
No. 5742, Feb. 5, 1999>
(2) The closing account of revenues and expenditures shall be prepared by the same
division as the revenue and expenditure budgets, and the following matters shall be specified
therein: <Amended by Act No. 4659, Dec. 31, 1993>
1.Revenues:
(a) Amount of the revenue budget;
(b) Amount increased or decreased due to transfer, etc.;
(c) Amount of the current balance of the revenue budget;
(d) Amount decided to be collected;
(f) Amount of the revenue received;
(g) Amount of unpaid deficits; and
(h) Amount of the revenue not collected.
2.Expenditures:
(a) Amount of the expenditure budget;
(b) Amount carried over from the preceding year;
(c) Amount of the reserve fund used;
(d) Amount increased or decreased due to diversion, etc.;
(e) Amount disbursed in excess under the proviso of Article 41 (1);
(f) Amount of the current balance of expenditure budget;
(g) Amount of expenditure disbursed;
(h) Amount carried over to the following year; and
(i) Amount unused.
Article 44 (Submission and Delivery of Closed Revenue and Expenditure Accounts)
(1) The Minister of Finance and Economy shall submit the closed revenue and expenditure
accounts to the Minister of Planning and Budget and the Board of Audit and Inspection with
statements as to settlement of revenue and expenditure accounts, settlement of continuing
expenditure accounts and statement of accounts as to any obligation of the State not later
than the 10th of June of the following year. <Amended by Act No. 5742, Feb. 5, 1999; Act No.
5982, May 24, 1999>
(2) The Board of Audit and Inspection shall examine the settlement of revenue and
expenditure accounts as referred to in paragraph (1), and deliver its report to the Minister of
Finance and Economy not later than the 20th of August of the following year. <Amended by
Act No. 5742, Feb. 5, 1999>
Article 45 (Submission of Closed Revenue and Expenditure Accounts to National Assembly)
The Government shall submit a closed revenue and expenditure account as examined by the
Board of Audit and Inspection to the National Assembly every fiscal year one hundred twenty
days before the following fiscal year after the next one begins.
Article 46 (Documents Appended to Closed Revenue and Expenditure Accounts) The closed
revenue and expenditure accounts transmitted to the National Assembly by the Government
shall be accompanied by the statements as to settlement of revenue and expenditure
accounts, settlement of continuing expenditure accounts, and statement of accounts as to
obligation of the State.
Article 47 (Disposal of Annual Settlement Surplus)
(1) Any surplus resulted from a settlement of revenue and expenditure accounts in each
fiscal year (hereinafter referred to as the "annual settlement surplus") shall be counted in the
revenue of the following year as the resource for the amount of expenditure budget carried
over under Article 38.
(2) Of annual settlement surpluses, those prescribed by other Acts and a balance after
deducting the amount carried over under paragraph (1) may be used for the following
purposes with the approval of the President through a deliberation of the State Council,
regardless of the expenditure budget in the current fiscal year until the year following the year
in which the annual settlement surplus accrues:
1.Redemption of the principal and interest of the state bonds or borrowing funds; and
2.Payment of national indemnities fixed under the State Compensation Act.
(3) The balance obtained by deducting the amount as referred to in paragraphs (1) and (2)
from the annual settlement surplus shall be counted in the revenue of the following year.
Article 47-2 (Exception to Disposal of Annual Settlement Surplus in General Accounts)
(1) Notwithstanding the provisions of Article 47 (3), the annual settlement surplus in general
accounts may be used for the following with the approval of the President through a
deliberation of the State Council up to the year following the year in which such annual
settlement surplus is produced, regardless of the estimated expenditures of the general
accounts: <Amended by Act No. 4659, Dec. 31, 1993; Act No. 5170, Dec. 12, 1996; Act No.
5662, Jan. 21, 1999; Act No. 6075, Dec. 31, 1999>
1.Redemption of debts under the Grain Bonds Act;
2.Redemption of the principal and interest of loans (including the amount received in
advance) under the Act on the Special Accounts on Treasury Loans; or
3.Redemption of the principal and interest of state bonds issued under the main sentence
of Article 3 (1) of the State Bonds Act.
(2) If it is required to repay the principal and interest with the annual settlement surplus
under paragraph (1), the Minister of Finance and Economy shall consult with the Minister of
Planning and Budget regarding the scale, etc. of the repayment of principal and interest.
<Amended by Act No. 5742, Feb. 5, 1999; Act No. 5982, May 24, 1999> [This Article Newly
Inserted by Act No. 4445, Dec. 27, 1991]
CHAPTER IV
REVENUES
Article 48 (Principle of Collection and Receipt of Revenue) Taxes and other revenues shall be
collected and received under the conditions as prescribed by Acts and subordinate statutes.
Article 49 (General Control over Revenue) The Minister of Finance and Economy shall control
general affairs concerning the collection and receipt of revenues, and the head of each
central government agency shall take charge of affairs concerning the collection and receipt
of revenues under his jurisdiction. <Amended by Act No. 5742, Feb. 5, 1999>
Article 50 (Delegation, etc. of Revenue Collection Affairs)
(1) The head of each central government agency may delegate affairs concerning the
collection of revenue under his jurisdiction to a public official under his control under the
conditions as prescribed by the Presidential Decree.
(2) No person other than a public official to whom affairs concerning the collection of the
revenue are delegated under paragraph (1) (hereinafter referred to as the "revenue collector")
may collect taxes and other revenues.
(3) The head of each central government agency may substitute the delegation of affairs
concerning collection of the revenue under paragraph (1) by designating an official position
established in the agency.
Article 51 (Method of Collection of Revenue) When a revenue collector intends to collect
taxes and other revenues, he shall conduct an investigation, make a decision and give notice
of payment to a person liable for tax payment and other obligors.
Article 52 (Receiving Organs)
(1) Taxes and other revenues shall be received only by accounting officials: Provided, That
this shall not apply in case of entrusting the Bank of Korea or postal agencies with receiving
affairs.
(2) When an accounting official receives taxes and other revenues, he shall pay the amount
received to the Bank of Korea or postal agencies without delay.
(3) Postal agencies shall, upon receiving taxes and other revenues under paragraph (2),
pay them to the Bank of Korea without delay.
Article 53 (Separation of Collection and Receiving Organs) No revenue collector shall
concurrently perform functions related to the disbursement and receipt of cash: Provided,
That if there is any special reason, any exception may be prescribed by the Presidential
Decree.
Article 54 (Refund of Revenue and Expenditure in Preceding Fiscal Year) Revenues pertaining
to a fiscal year for which disbursements and receipts have been concluded, and other extrabudgetary revenues shall be incorporated into the revenue for the current fiscal year: Provided,
That the amount disbursed as annual expenditure may be refunded to the corresponding
items of disbursed expenditure under the conditions as prescribed by the Presidential Decree.
Article 55 (Refund of Erroneously Received Revenue) If any revenue is received erroneously,
such revenue may be refunded to the revenue of the current fiscal year under the conditions
as prescribed by the Presidential Decree, regardless of the expenditure budget.
CHAPTER V
SECTION 1
EXPENDITURES
General Provisions
Article 56 (General Control of Expenditure) The Minister of Finance and Economy shall control
general affairs concerning the expenditure, and the head of each central government agency
shall take charge of affairs concerning acts causing expenditure and expenditures under his
jurisdiction. <Amended by Act No. 5742, Feb. 5, 1999>
Article 57 (Notification of Limits on Expenditure)
(1) When the budget is approved, the head of each central government agency shall submit
a monthly revenue collection plan and a monthly expenditure disbursement plan to the
Minister of Finance and Economy on the basis of a written request for allocation of budget
under Article 35 (1). <Amended by Act No. 5742, Feb. 5, 1999>
(2) The Minister of Finance and Economy shall prepare a monthly financing plan on the
basis of a plan as referred to in paragraph (1) and submit it to the Minister of Planning and
Budget. <Amended by Act No. 5742, Feb. 5, 1999; Act No. 5982, May 24, 1999>
(3) The Minister of Finance and Economy shall notify the head of each central government
agency and the Bank of Korea of the limits on annual expenditure budget on the basis of a
monthly financing plan approved by the President under Article 35 (2). <Amended by Act No.
5742, Feb. 5, 1999>
(4) The head of each central government agency shall, upon receiving a notification of the
limit on expenditure under paragraph (3), instruct the limit on expenditure to each disbursing
official under his control, and notify the Minister of Finance and Economy and the Bank of
Korea thereof. <Amended by Act No. 5742, Feb. 5, 1999>
SECTION 2
Acts Causing Expenditure
Article 58 (Rules for Acts Causing Expenditures) Any act causing expenditure shall be done
by the head of each central government agency within the limit of the budgetary amount
allocated under Acts and subordinate statutes or Article 35 of this Act.
Article 59 (Entrustment with Act Causing Expenditure)
(1) The head of each central government agency may entrust any public official under his
control with an act causing expenditure under the conditions as prescribed by the Presidential
Decree.
(2) The provisions of Article 50 (3) shall be applicable mutatis mutandis to any case as
referred to in paragraph (1).
Article 60 (Act Causing Expenditure of Specified Carry-Over Funds through Following Year)
(1) If there is any inevitable reason in the execution of budget with respect to the specified
carry-over funds, the head of each central government agency may do an act causing
expenditure to disburse through the following year within the limit of the amount as approved
by the Minister of Planning and Budget with the reason and amount thereof specified.
<Amended by Act No. 5742, Feb. 5, 1999; Act No. 5982, May 24, 1999>
(2) When the Minister of Planning and Budget approves an act causing expenditure to
disburse through the following year under paragraph (1), he shall notify the Minister of
Finance and Economy. <Amended by Act No. 5742, Feb. 5, 1999; Act No. 5982, May 24,
1999>
SECTION 3
Disbursement
Article 61 (Procedure for Disbursement)
(1) When the head of each central government agency or any public official entrusted
under Article 59 (hereinafter referred to as the "financial officer") intends to make a
disbursement on the basis of the expenditure budget under his jurisdiction, he shall deliver
documents related to the acts causing expenditure to a public official appointed by the head
of the central government agency to which he belongs (hereinafter referred to as the
"disbursing officer") under the conditions as prescribed by the Presidential Decree.
(2) The appointment of a disbursing officer under paragraph (1) may be substituted with a
designation of an official position established in the agency by the head of each central
government agency.
(3) Matters necessary for disbursement of national funds other than the annual expenditure
shall be prescribed by the Presidential Decree.
Article 62 (Joint Disbursement)
(1) The head of each central government agency may have joint disbursement officers
pursuant to the Presidential Decree in order to jointly disburse national funds of two or more
agencies under his control (hereinafter referred to as the "joint disbursement").
(2) The head of each central government agency shall appoint joint disbursement officers
from among public officials under his control. In this case, the provisions of Article 61 (2)
shall apply mutatis mutandis to the appointment of a joint disbursement officer.
(3) In order to assist joint disbursement officers, the head of each central government
agency may establish disbursement confirmation officers in an agency under his control.
(4) Notwithstanding the provisions of Article 57 (4), the head of each central government
agency may have joint disbursement officers deliver funds necessary for the management of
an agency under his control to disbursement confirmation officers.
(5) If a joint disbursement officer or a disbursement confirmation officer intends to make
any disbursement on the basis of an act causing expenditure, he may make any transfer
payment in an deposit account of an obligee pursuant to the Presidential Decree,
notwithstanding the provisions of Article 63.
(6) A joint disbursement officer and a disbursement confirmation officer shall perform
duties of a disbursing officer under this Act in connection with the joint disbursement. In this
case, a "disbursing officer" as referred to in Articles 61 (1) and (2), 65 (1) and (2), 68, 69 and
106, a "disbursing officer" as referred to in Article 66 (1), a "disbursing officer" as referred to
in Article 108, and a "disbursing officer" as referred to in Articles 113 (2) and 114 (1) shall be
deemed to be a "joint disbursement officer and disbursement confirmation officer", a "joint
disbursement officer", a "joint disbursement officer or disbursement confirmation officer", and
a "disbursement confirmation officer" respectively.
(7) Necessary matters concerning duties of a joint disbursement officer and a disbursement
confirmation officer and procedures for joint disbursement, shall be prescribed by the
Presidential Decree. [This Article Wholly Amended by Act No. 5742, Feb. 5, 1999]
Article 63 (Issuance of Check) If a disbursing officer intends to make a disbursement on the
basis of an act causing expenditure, he shall, in lieu of payment in cash, issue a check the
payer of which is the Bank of Korea: Provided, That in case of transfer of national funds
between government accounts, an order for transfer payment of national funds may be
substituted for the said check. [This Article Wholly Amended by Act No. 5742, Feb. 5, 1999]
Article 64 (Restriction on Issuance of Check) No disbursing officer shall issue a check without
designating the creditor as payee: Provided, That this shall not apply in a case where he
delivers funds to an accounting official, the Bank of Korea or a postal agency.
Article 65 (Payment of Ordinary Expenses of Agency)
(1) In a case where the fulfillment of duties might be impeded, if the ordinary expenses of
an agency and other expenses as prescribed by the Presidential Decree are not paid in cash,
the head of each central government agency or a public official entrusted by him may have
an accounting official receive the necessary funds from a disbursing officer and make a
disbursement.
(2) The head of each central government agency or a public official entrusted by him may
have an accounting official receive necessary funds from a disbursing officer and make a
disbursement before the fiscal year begins only for such expenses as referred to in paragraph
(1).
(3) With respect to funds to be delivered before the fiscal year begins under paragraph (2),
the Minister of Finance and Economy may temporarily borrow such funds within the limit of
the maximum amount of the temporary borrowing funds in the fiscal year. <Amended by Act
No. 5742, Feb. 5, 1999>
Article 66 (Delivery of Funds to Bank of Korea, etc.)
(1) The head of each central government agency may have a disbursing officer deliver
necessary funds to the Bank of Korea or a postal agency under the conditions as prescribed
by the Presidential Decree.
(2) In a case as referred to in paragraph (1), the head of each central government agency
shall consult with the Minister of Finance and Economy. <Amended by Act No. 5742, Feb. 5,
1999>
Article 67 Deleted. <by Act No. 5742, Feb. 5, 1999>
Article 68 (Advance and Estimate Payments) The disbursing officer may pay in advance or by
estimate any fare, charterage, travel expense, cost of construction work, manufacturing or
service contract, or other expenses as prescribed by the Presidential Decree and that, if not
doing so, might cause by nature any impediment in affairs or business. <Amended by Act No.
4659, Dec. 31, 1993>
Article 69 (Contract Expenses) A disbursing officer may pay as contract expenses all or part
of the necessary expenses for postal agencies, diplomatic establishments abroad and other
agencies requiring special accounting under the conditions as prescribed by the Presidential
Decree.
Article 70 (Separation of Disbursing and Accounting Organs) Duties of a financial officer, a
disbursing officer (including a joint disbursement officer) and a cashier shall not be
performed concurrently: Provided, That a disbursement confirmation officer as prescribed in
Article 62 (3) may perform duties of a cashier concurrently pursuant to the Presidential
Decree. <Amended by Act No. 5742, Feb. 5, 1999>
Article 71 (Disbursement for Past Fiscal Year) The fixed amount of liability which was incurred
in the past fiscal year and not disbursed, shall be disbursed from the expenditure budget in
the current year, and it shall not exceed the unused amount of the amount of each item of the
year to which the expenses belong: Provided, That this shall not apply in a case where the
expenses belong by nature to supplementary purposes as prescribed by the Presidential
Decree.
SECTION 4
Payment
Article 72 (Payment Period of Check)
(1) When a person presents a check issued by a disbursing officer, the Bank of Korea shall
pay it unless one year has passed after the check is issued.
(2) Deleted. <by Act No. 5742, Feb. 5, 1999>
CHAPTER VI Deleted.
Articles 73 through 95 Deleted. <by Act No. 4868, Jan. 5, 1995>
CHAPTER VII STATUTE OF LIMITATION
Article 96 (Extinctive Prescription of Pecuniary Obligation)
(1) Any right of the State, the object of which is a pecuniary benefit, and the statute of
limitation of which is not provided for in other Acts, shall be extinguished by the statute of
limitation unless it is exercised within five years.
(2) The provisions of paragraph (1) shall also apply to a right to the State the object of
which is a pecuniary benefit.
Article 97 (Interruption and Suspension of Statute of Limitation) With respect to a right of the
State the object of which is a pecuniary benefit, if there is no provisions of other Acts
applicable to an interruption or suspension of the statute of limitation and other matters, the
provisions of the Civil Act shall be applicable mutatis mutandis. This provisions shall also
apply to a right to the State, the object of which is a pecuniary benefit.
Article 98 (Effect of Statute of Limitation) Any notice of payment issued by the State pursuant
to the provisions of Acts and subordinate statutes shall have an effect of interrupting the
statute of limitation.
CHAPTER VIII
NATIONAL FUNDS AND SECURITIES
Article 99 (Restriction on Holding of Cash and Securities) The head of each central
government agency may not have the custody of any public or private-owned cash or
securities unless it is provided for by Acts and subordinate statutes.
Article 100 (Receipt and Disbursement of National Funds by Bank of Korea)
(1) The Bank of Korea shall take charge of affairs concerning receipt and disbursement of
the national funds under the conditions as prescribed by the Presidential Decree.
(2) The national funds received by the Bank of Korea under paragraph (1) shall be deposits
of the State under the conditions as prescribed by the Presidential Decree.
Article 101 (Management of Securities by Bank of Korea or Financial Institutions) The State
may order the Bank of Korea or financial institutions as prescribed by the Presidential Decree
(hereinafter referred to as "financial institutions") to manage securities owned by or in custody
of the State.
Article 102 (Inspection to Bank of Korea) The Bank of Korea shall be subject to any
inspection of the Board of Audit and Inspection with respect to receipt and disbursement of
the national funds managed by it, receipts of revenue derived from issuing national bonds,
balance of funds as delivered under Article 66 or 67, or receipts and payments of securities
which it has managed under Article 101.
Article 103 (Liability for Indemnification of Bank of Korea) If the Bank of Korea has caused
any damage to the State in connection with receipts, disbursements and safekeeping of cash
or securities managed by it on behalf of the State, the Civil Act and the Commercial Act shall
be applicable to the liability for indemnification of the Bank of Korea.
CHAPTER IX
ACCOUNTING OFFICIALS
Article 104 (Function of Accounting Official) Accounting officials shall disburse, receive and
have the custody of cash under the conditions as prescribed by Acts and subordinate
statutes.
Article 105 (Appointment of Accounting Officials)
(1) Accounting officials shall be appointed by the head of each central government agency
or a public official entrusted by him.
(2) The appointment of accounting officials under paragraph (1) may be substituted by a
designation of an official position established in the agency to which the head of each central
government agency or a public official entrusted by him belongs.
CHAPTER X
RECORD AND REPORT
Article 106 (Keeping of Books) The Minister of Finance and Economy, the Minister of Planning
and Budget, the head of each central government agency, revenue collectors, financial
officers, disbursing officers, accounting officials and the Bank of Korea shall keep books and
record necessary matters therein under the conditions as prescribed by the Presidential
Decree: Provided, That they may, if necessary, be recorded and kept in any manner other
than documents with the approval of the Minister of Finance and Economy and the Board of
Audit and Inspection. <Amended by Act No. 5742, Feb. 5, 1999; Act No. 5982, May 24,
1999>
Article 107 (Financial and Operational Reports)
(1) The head of each central government agency shall submit the following financial reports
to the Minister of Finance and Economy under the conditions as prescribed by the
Presidential Decree: <Amended by Act No. 4659, Dec. 31, 1993; Act No. 5742, Feb. 5, 1999>
1.Report on acts by which disbursements are caused;
2.Report on revenues and expenditures; and
3.Report on other accounts.
(2) The Minister of Finance and Economy shall put each quarter reports as referred to in
paragraph (1) together, and submit it to the Minister of Planning and Budget. <Amended by
Act No. 5742, Feb. 5, 1999; Act No. 5982, May 24, 1999>
(3) The head of each central government agency shall submit each quarter reports on the
execution of projects and on the budget to the Minister of Planning and Budget under the
conditions as prescribed by the Presidential Decree. <Amended by Act No. 5742, Feb. 5,
1999; Act No. 5982, May 24, 1999>
(4) The Minister of Planning and Budget may analyze the contents of the reports as referred
to in paragraph (3), and if necessary, take proper measures. <Amended by Act No. 5742, Feb.
5, 1999; Act No. 5982, May 24, 1999>
Article 108 (Submission of Reports and Account Statements)
(1) Revenue collectors, financial officers, disbursing officers, accounting officials, the Bank
of Korea and postal agencies shall prepare reports and account statements under the
conditions as prescribed by the Presidential Decree, and submit them to the head of each
central government agency, the Minister of Finance and Economy and the Board of Audit and
Inspection. <Amended by Act No. 5742, Feb. 5, 1999>
(2) Accounting officials, the Bank of Korea and postal agencies shall report on such
revenues and expenditures as they have received or disbursed, to revenue collectors or
disbursing officers under the conditions as prescribed by the Presidential Decree.
Article 109 (Report on Financial Status) The Government shall, immediately after the budget is
approved, inform the public of the budget, settlement of accounts for the preceding year, the
present balance of State bonds, borrowings and State property, and other general matters
related to finance by means of printed matter or in an other adequate manner.
CHAPTER XI
SUPPLEMENTARY PROVISIONS
Article 110 (Act bearing Liability for Guarantee)
(1) If the State intends to bear a liability for guarantee, it shall obtain the prior consent of
the National Assembly.
(2) Necessary matters for the management of the liability for guarantee as referred to in
paragraph (1) shall be prescribed by the Presidential Decree.
Article 111 (Consultation on Acts and Subordinate Statutes Relating to Budget and
Accounting) When the head of each central government agency drafts Acts and subordinate
statutes relating to the budget and accounting, he shall consult with the Minister of Planning
and Budget in case of Acts and subordinate statutes relating to the budget, and with the
Minister of Finance and Economy in case of those relating to accounting. <Amended by Act
No. 5742, Feb. 5, 1999; Act No. 5982, May 24, 1999>
Article 112 (Consultation on Other Acts and Subordinate Statutes) The provisions of Article
111 shall also be applicable mutatis mutandis if the head of each central government agency
intends to provide for the contents of the budget and accounting in Acts and subordinate
statutes other than those relating to the budget and accounting.
Article 113 (Representation and Share of Responsibility of Public Officials in Charge of
Accounting)
(1) The head of each central government agency may, if deemed necessary, have a public
official under his control carry out on his behalf the whole of, or share the responsibility for
part of, the affairs of revenue collectors and financial officers. <Amended by Act No. 4868,
Jan. 5, 1995>
(2) The head of each central government agency or a public official entrusted by him may,
if deemed necessary, appoint a public official to carry out on his behalf the whole of, or to
share the responsibility for part of, the affairs of disbursing officers or accounting officials.
(3) The provisions of Article 50 (3), 59 (2), 61 (2), or 105 (2) shall be applicable mutatis
mutandis in cases as referred to in paragraphs (1) and (2). <Amended by Act No. 4868, Jan.
5, 1995>
Article 114 (Special Cases of Appointment of Public Official in Charge of Accounting)
(1) The head of each central government agency may, if deemed necessary, entrust any
public official under the control of another central government agency with the affairs of a
revenue collector, financial officer or appoint such public official as a disbursing officer or
accounting official under the conditions as prescribed by the Presidential Decree. <Amended
by Act No. 4868, Jan. 5, 1995>
(2) The provisions of Article 50 (3), 59 (2), 61 (2), or 105 (2) shall be applicable mutatis
mutandis in the case as referred to in paragraph (1). <Amended by Act No. 4868, Jan. 5,
1995>
Article 115 (Holding of Funds) The State may hold any special fund only in a case where it is
prescribed by Acts.
Article 116 (Exceptional Provisions for Special Accounts) If it is required for each special
account, the provisions different from those of this Act may be prescribed by an Act.
Article 117 (Supervision over Execution of Budget) In order to ensure proper management of
the budget and accounting, the Minister of Planning and Budget and the Minister of Finance
and Economy may have their subordinate public officials conduct on-the-spot investigations,
and if necessary, give the head of each central government agency instructions as to the
budget and accounting with the approval of the President through a deliberation of the State
Council. <Amended by Act No. 5742, Feb. 5, 1999; Act No. 5982, May 24, 1999>
Article 118 (Internal Control) In order to analyze and evaluate the effectiveness of financial
management, the propriety of use of revenue source and the reliability of data reported in the
course of execution, the head of each central government agency shall have a public official
under his control carry out an internal control as to necessary matters.
Article 119 (Entrustment of Accounting Affairs to Local Government, etc.)
(1) The State may have public officials of local governments or officers and personnel of
government-invested institutions or financial institutions take charge of affairs concerning the
annual revenues and expenditures, and cash other than the annual revenues and
expenditures, under the conditions as prescribed by the Presidential Decree.
(2) With respect to public officials of local governments and officers and personnel of
government-invested institutions or financial institutions, who take charge of affairs
concerning the annual revenues and expenditures, and cash other than such annual revenues
and expenditures under paragraph (1), the provisions of this Act or other Acts and
subordinate statutes relating to the accounting, concerning the management of such affairs
shall be applicable mutatis mutandis.
Article 120 (Entrustment of Affairs as to Contract and Disbursement)
(1) The head of each central government agency may entrust another agency with affairs
concerning disbursements under his jurisdiction under the conditions as prescribed by the
Presidential Decree. <Amended by Act No. 4868, Jan. 5, 1995>
(2) Any public official taking charge of the accounting who is to execute affairs entrusted
under paragraph (1) shall be appointed by the Minister of Finance and Economy under the
conditions as prescribed by the Presidential Decree. <Amended by Act No. 5742, Feb. 5,
1999>
Article 121 (Disbursement of National Funds Other than Annual Expenditures) The provisions
of Article 63 shall also be applicable mutatis mutandis in a case where an accounting official
disburses the national funds other than those based on the annual expenditures.
Article 122 (Responsibility of Public Officials taking Charge of Accounting)
The responsibility of public officials taking charge of accounting shall be prescribed
separately by an Act.
Article 123 (Financial Guarantee of Public Officials taking Charge of Accounting) No revenue
collector, financial officer, disbursing officer (including a joint disbursement officer and a
disbursement confirmation officer) and accounting official may take charge of their duties
without providing any financial guarantee under the conditions as prescribed by the
Presidential Decree. <Amended by Act No. 4868, Jan. 5, 1995; Act No. 5742, Feb. 5, 1999>
Article 124 (Education for Public Officials taking Charge of Accounting) The Government may
conduct any education for improving the quality of public officials taking charge of
accounting under the conditions as prescribed by the Presidential Decree.
ADDENDA
(1) (Enforcement Date) This Act shall enter into force on the date of its promulgation:
Provided, That the provisions of Articles 7 (7), 40 (4), 42, 44, 45, 76 and 81 (3) shall enter
into force on January 1, 1990.
(2) (Relation with Other Acts and Subordinate Statutes) Any citation of previous provisions in
other Acts and subordinate statutes at the time this Act enters into force shall be considered
to cite the corresponding provisions of this Act.
ADDENDA <Act No. 4408, Nov. 30, 1991>
Article 1 (Enforcement Date) This Act shall enter into force on the date of its promulgation.
Articles 2 and 3 Omitted.
ADDENDA <Act No. 4445, Dec. 27, 1991>
(1) (Enforcement Date) This Act shall enter into force on the date of its promulgation.
(2) Deleted. <by Act No. 4659, Dec. 31, 1993>
ADDENDA <Act No. 4461, Dec. 31, 1991>
Article 1 (Enforcement Date) This Act shall enter into force on January 1, 1992. (Proviso
Omitted.)
Articles 2 and 3 Omitted.
ADDENDUM <Act No. 4659, Dec. 31, 1993>
This Act shall enter into force on January 1, 1994.
ADDENDA <Act No. 4868, Jan. 5, 1995>
Article 1 (Enforcement Date) This Act shall enter into force six months after the date of its
promulgation. (Proviso Omitted.)
Articles 2 through 4 Omitted.
ADDENDA <Act No. 5170, Dec. 12, 1996>
Article 1 (Enforcement Date) This Act shall enter into force on January 1, 1997.
Articles 2 through 6 Omitted.
ADDENDA <Act No. 5662, Jan. 21, 1999>
Article 1 (Enforcement Date) This Act shall enter into force on January 1, 2000.
Articles 2 through 4 Omitted.
ADDENDUM <Act No. 5742, Feb. 5, 1999>
This Act shall enter into force on the date of its promulgation.
ADDENDA <Act No. 5982, May 24, 1999>
Article 1 (Enforcement Date) This Act shall enter into force on the date of its promulgation.
(Proviso Omitted.)
Articles 2 through 6 Omitted.
ADDENDA <Act No. 6075, Dec. 31, 1999>
Article 1 (Enforcement Date) This Act shall enter into force on April 1, 2000. Articles 2 through
4 Omitted.