Center on Philanthropy at the Beautiful Foundation had surveyed the current laws as the basis for government’s fundraising activities in the private sector. This survey is performed by Ko, Euna, and Choi, Euna, who were graduate students of Yonsei University’s Graduate School of Social Welfare, during their internship for the summer vacation of 2019. We would like to express our gratitude to them on this page.

The Current Laws on Government’s Fundraising from Private Sector in South Korea

In this article, “government’s fundraising from the private sector” must be based on the provision of laws and include all of the following activities by the governments :

  • Allowing private financial resources to be included in the public funds
  • Becoming fundraisers by themselves or Receiving contributions, donations, etc.
  • Supporting or cooperating with private fundraising

출처: pixabay.com

1. Government’s fundraising from the private sector under the current laws

A. Ground Rules

Government’s fundraising from the private sector – collecting or accepting private donations – is prohibited in principle(Article 5(1) of the ACT ON COLLECTION AND USE OF DONATIONS). However, it is exceptionally possible to receive money and valuables voluntarily donated by the private sector through the Deliberative Committee on Donations(기부심사위원회)(the subparagraph 1 of Article 5(2) of the same act).

B. Funds under Article 5 of the NATIONAL FINANCE ACT

Article 5(1) and attached Table 2 of the NATIONAL FINANCE ACT stipulate a total of 68 funds that can be financed by government contributions or private levies. Among them, a total of 39 statutes stipulate private charges, and collecting activities are also allowed for two funds – “Patriots and Veterans Fund” and “Fund for International Exchanges.” (See Table 1 for details.)

2. Supporting or cooperating with private fundraising by the governments under the current laws

The government may support or cooperate with private fundraising activities according to the following acts:

  • DISASTER RELIEF ACT
  • COMMUNITY CHEST OF KOREA ACT
  • TUBERCULOSIS PREVENTION ACT
  • ORGANIZATION OF THE REPUBLIC OF KOREA NATIONAL RED CROSS ACT
  • SUPPORT OF THE SAEMAUL MOVEMENT ORGANIZATION ACT
  • ACT ON THE NATIONAL TRUST OF CULTURAL HERITAGES AND NATIONAL ENVIRONMENT ASSETS
  • ACT ON ENCOURAGING THE DONATION OF FOOD, ETC.
  • NORTH KOREAN REFUGEES PROTECTION AND SETTLEMENT SUPPORT ACT, etc.
    ※ See Table 2 for details.
Table 1. Provisions on Private Levies in Article 5(1) and attached Table 2 of the NATIONAL FINANCE ACT
No. Basis Act Relevant Provision Name of Fund Expressions of Private Levies
(as financial resources of the fund)		 Allowing Collecting Activities
Y/N Relevant Provisions
1 FRAMEWORK ACT ON SCIENCE AND TECHNOLOGY Article 22(2) Science and Technology Promotion Fund
  • Contributions by those, other than the Government
  • Donations by individuals, corporations, or organizations
 N  
2 NATIONAL SPORTS PROMOTION ACT Article 20 National Sports Promotion Fund
  • Contributions by persons other than the Government
  N  
3 FRAMEWORK ACT ON LABOR WELFARE Article 88(1) Labor Welfare Promotion Fund
  • Cash, goods, and other property contributed by an entity other than the State or a local government
  • Donations by a business owner and a business owners’ association
  • Contributions or subsidies by persons other than the Government
 N  
4 ACT ON WATER MANAGEMENT AND RESIDENT SUPPORT IN THE GEUM RIVER BASIN Article 32 Fund for Management of Geum River Basin
  • Cash, goods, and other property contributed by a person other than the State
 N  
5 KOREA TECHNOLOGY FINANCE CORPORATION ACT Article 13(1) Korea Technology Finance Corporation
  • Contributions from financial companies, etc.
  • Contributions from persons other than financial companies, etc. or Government
 N  
6 ACT ON WATER MANAGEMENT AND RESIDENTS SUPPORT IN THE NAKDONG RIVER BASIN Article 34 Nakdong River Basin Management Fund
  • Cash, goods, and other property contributed by a person other than the State
 N  
7 INTER-KOREAN COOPERATION FUND ACT Article 4 Inter-Korean Cooperation Fund
  • Contributions by entities other than the Government
 N  
8 ACT ON THE CREDIT GUARANTEE FOR FARMERS AND FISHERS Article 4(1) Credit Guarantee Fund for Farmers and Fishers
  • Contributions by the financial institutions
  • Contributions by the agricultural, forestry and fishery organizations
 N  
9 AGRICULTURAL AND FISHERY DISASTER INSURANCE ACT Article 22(1) Agricultural and Fishery Disaster Re-insurance Fund
  • Contributions from any person other than the Government
 N  
10 FOREIGN ECONOMIC COOPERATION FUND ACT Article 4 Foreign Economic Cooperation Fund
  • Contributions by public institutions or economic organizations
 N  
11 CULTURE AND ARTS PROMOTION ACT Article 17(1) Culture and Arts Promotion Fund
  • Donations collected from individuals or corporations
  • Contributions from a building owner(A building owner may contribute the amount at a certain ratio of the construction cost to the fund for the promotion of culture and arts, instead of using it for installing art works)
 N  
12 FRAMEWORK ACT ON BROADCASTING COMMUNICATIONS DEVELOPMENT Article 25(1) Broadcasting Communications Development Fund
  • Contributions by broadcasting business entities
 N  
13 PATRIOTS AND VETERANS FUND ACT Article 3(2) Patriots and Veterans Fund
  • Donations made to promote the self-support and welfare of the persons, etc. of distinguished service to the State
  • Other money or property donated for the purposes of compensating and supporting the persons, etc. of distinguished service to the State
  • Money or property donated by companies, etc. financed by the Korean Veterans Association for the purposes of supporting the business activities of the Korean Veterans Association
  • Money or property donated for the purposes of supporting the business activities under Article 4 of the Act on Honorable Treatment of War Veterans and Establishment of Related Associations
 Y
  • Article 4-2 of the same Act
  • Subparagraph 3 of Article 3 of the ACT ON COLLECTION AND USE OF DONATIONS
14 ACT ON PUBLIC-PRIVATE PARTNERSHIPS IN INFRASTRUCTURE Article 31(1) Infrastructure Credit Guarantee Fund
  • Investment from entities other than the Government and local governments
 N  
15 INDUSTRIAL ACCIDENT COMPENSATION INSURANCE ACT Article 95(2) Industrial Accident Compensation Insurance and Prevention Fund
  • Contributions and donations from any person other than the Government
 N  
16 TRADE INSURANCE ACT Article 31(1) Trade Insurance Fund
  • Contributions from banks
 N  
17 ACT ON THE PROMOTION OF NEWSPAPERS, ETC. Article 34(2) Press Development Fund
  • Contributions and donations from individuals and juristic persons
 N  
18 CREDIT GUARANTEE FUND ACT Article 6(1) Korea Credit Guarantee Fund
  • Contributions from financial companies, etc.
  • Contributions from enterprises
  • Contributions from persons other than the Government, financial companies, etc., or enterprises
 N  
19 FRAMEWORK ACT ON FISHERIES AND FISHING VILLAGES DEVELOPMENT Article 47 Fishery Development Fund
  • Contribution or donation from those persons, other than the Government
 N  
20 FRAMEWORK ACT ON GENDER EQUALITY Article 42 Gender Equality Fund
  • Contributions or donations by persons other than the State
 N  
21 ACT ON WATER MANAGEMENT AND RESIDENT SUPPORT IN THE YEONGSAN AND SEOMJIN RIVER BASINS Article 32 Yeongsan and Seomjin River Systems Management Fund
  • Cash, goods, and other property contributed by persons, other than the State
 N  
22 INDUSTRIAL TECHNOLOGY INNOVATION PROMOTION ACT Article 37-5 Fund for Promotion of Development and Commercialization of Industrial Technology in the Account for the Rational Use of Specific Substances
  • Contributions from corporations or private individuals
 N  
23 EMERGENCY MEDICAL SERVICE ACT Article 20 Emergency Medical Service Fund
  • Contributions and donations by institutions and organizations related to emergency medical services
 N  
24 SPECIAL ACT ON ASSISTANCE TO FARMERS, FISHERS, ETC. FOLLOWING THE CONCLUSION OF FREE TRADE AGREEMENTS Article 14 Support Fund for Implementation of Free Trade Agreements
  • Contributions or donations from any person other than the Government
 N  
Article 18-2 Agricultural and Fishing Villages Collaborative Cooperation Fund
  • Contributions from persons other than the Government, goods, or other property
 N  
25 ACT ON THE EMPLOYMENT PROMOTION AND VOCATIONAL REHABILITATION OF PERSONS WITH DISABILITIES Article 69 Employment Promotion and Vocational Rehabilitation Fund for Persons with Disabilities
  • Contributions or donations from any nongovernmental entity
 N  
26 SMALL AND MEDIUM ENTERPRISES PROMOTION ACT Article 64 Fund for Establishment and Promotion of Small and Medium Enterprises
  • Capital contribution from those other than the Government or local governments
 N  
27 SPECIAL ACT ON ASSISTANCE TO LOCAL NEWSPAPERS DEVELOPMENT Article 13 Local Newspapers Development Fund
  • Donations from individuals or corporations
 N  
28 FRAMEWORK ACT ON JUVENILES Article 54 Youth Nurture Fund
  • Money, goods or other property contributed by individuals, corporations, or organizations
 N  
29 ACT ON THE IMPROVEMENT OF WATER QUALITY AND SUPPORT FOR RESIDENTS OF THE HAN RIVER BASIN Article 21 Han River Watershed Management Fund
  • Cash, goods, and other property contributed by a person other than the State
 N  
30 KOREA FOUNDATION ACT Article 14 Fund for International Exchanges
  • Contributions and endowments of those other than the Government
  • International Exchange Endowments (국제교류기여금) from persons to whom passports are issued
 Y
  • Article 16 of the same Act
  • Subparagraph 5 of Article 3 of the ACT ON COLLECTION AND USE OF DONATIONS
31 KOREA FOUNDATION FOR THE PROMOTION OF PRIVATE SCHOOL ACT Article 18 Private Schools Promotion Fund
  • Donations by juristic persons, groups or individuals
 N  
32 KOREA HOUSING FINANCE CORPORATION ACT Article 56 Housing Finance Credit Guarantee Fund
  • Contributions from financial institutions
  • Contributions from persons other than the Government and financial institution
 N  
33 PROMOTION OF THE MOTION PICTURES AND VIDEO PRODUCTS ACT Article 24 Motion Picture Development Fund
  • Contributions from private individuals and legal entities
 N  
34 RADIOACTIVE WASTE MANAGEMENT ACT Article 29 Radioactive Waste Management Fund
  • Contributions and donations by any person other than the Government
 N  
35 CULTURAL HERITAGE PRESERVATION FUND ACT Article 4 Cultural Heritage Protection Fund
  • Contributions, cash, articles or other property contributed or donated by persons other than the Government
 N  
36 ASBESTOS INJURY RELIEF ACT Article 24 Asbestos Injury Relief Fund
  • Contributions and donations from any person other than the Government
 N  
37 CRIME VICTIM PROTECTION FUND ACT Article 4 Crime Victim Protection Fund
  • Cash, articles and other property contributed or donated by persons, other than the Government
 N  
38 ACT ON THE PROTECTION OF AND SUPPORT FOR MICRO ENTERPRISES Article 20 Market Promotion Fund for Micro Enterprises
  • Cash, goods, and other properties contributed by any person other than the Government or local governments
 N  
39 DEPOSIT ACT Article 29 Judicial Service Promotion Fund
  • Cash, articles and other property contributed or donated by persons other than the Deposited Funds Custodial Committee(공탁금관리위원회)
 N  
Table 2. Highlights related to supporting or cooperating with private fundraising by the governments
No. Basis Act Supported organization(s) Supporting Authorities Expression of the Supporting or Cooperating Role Relevant Provisions
1 COMMUNITY CHEST OF KOREA ACT Community Chest of Korea State or local governments
  • May subsidize expenses incurred in collecting donations and managing and operating the Community Chest of Korea.
 Article 33(1)
2  TUBERCULOSIS PREVENTION ACT   Korean Tuberculosis Association   Commissioner of the Korea Disease Control and Prevention Agency
  • May subsidize all or some expenses to be incurred for the Korean Tuberculosis Association where deemed necessary for the Association to conduct investigations and research on tuberculosis and its prevention and eradication projects.
 Article 23
State
  • May permit the Korean Tuberculosis Association to gratuitously use national property and earn profit therefrom, where the State deems it necessary for the Association to conduct projects referred to in Article 21.
 Article 24
Any Government agency,
public organization, or corporation
determined by Presidential Decree
  • Shall cooperate in the Christmas seal fund-raising or other fund-raising activities.
 Article 25(3)
3   ORGANIZATION OF THE REPUBLIC OF KOREA NATIONAL RED CROSS ACT      The Republic of Korea National Red Cross      State or local governments
  • May provide cooperation where the Republic of Korea National Red Cross(hereinafter “the Red Cross”) makes a request relating to the performance of its activities
 Article 8(4)
President of the Republic of Korea, National Assembly, Mayor of Seoul City, Mayors of Metropolitan Autonomous Cities, and Governors of DO
  • Shall appoint of the representatives, from among the members of the Red Cross.
 Article 10(2)
Minister of Strategy and Finance, Minister of Education, Minister of Foreign Affairs, Minister of Unification, Minister of Justice, Minister of National Defense, Minister of the Interior and Safety, and Minister of Health and Welfare
  • Shall become members of the Central Committee of the Red Cross.
 Article 11(2)
President and the Prime Minister of the Republic of Korea
  • Shall be the Honorary President and the Honorary Vice President, respectively.
 Article 14(2)
State or local governments
  • May provide financial support to help the Red Cross to cover the expenses incurred in providing such services, such as the expansion of relevant facilities and equipment, where the Red Cross provides health care services under the subparagraphs of Article 7(1) of the Public Health and Medical Services Act.
 Article 22(2)
State or local governments
  • May lease the State or public property to the Red Cross without compensation, if necessary to fulfill the purposes of the activities of the Red Cross.
 Article 23
4 SUPPORT OF THE SAEMAUL MOVEMENT ORGANIZATION ACT Saemaul Movement Organization State or local governments
  • May grant the Saemaul Movement Organization contributions and subsidies to cover expenses involved in the operation of such Organization.
  • May subsidize all or part of expenses necessary in carrying out Saemaul Movement overseas cooperation projects of Saemaul Movement Organization.
 Article 3
Government
  • Shall extend tax reduction and exemption to the Saemaul Movement Organization, as prescribed by the Restriction of Special Taxation Act.
  • Shall apply special cases concerning taxation to any property contributed or donated to the Saemaul Movement Organization under Article 3(3), as prescribed by the Restriction of Special Taxation Act.
 Article 5
5 ACT ON THE NATIONAL TRUST OF CULTURAL HERITAGES AND NATIONAL ENVIRONMENT ASSETS National Trust Corporation (National Trust of Cultural Heritage, National Trust of Natural Environment) State or local governments
  • May reduce or exempt taxes for the national trust corporation and property invested or donated to the national trust corporation, in accordance with Acts related to taxes.
 Article 15
National Trust Corporation, etc. State or local governments
  • May subsidize some of expenses incurred in conserving or managing conservation property for the national trust corporation or corporations and organizations which have concluded conservation agreements with the national trust corporation under Article 19.
 Article 16
6 ACT ON ENCOURAGING THE DONATION OF FOOD, ETC. Providers or Business Operators with Donated Food, etc. State or local governments
  • May fully or partly subsidize operating expenses or business expenses necessary for business of providing donated food, etc. to providers or business operators.
 Article 7(2)
State, local governments and public agencies
  • May provide providers and business operators with some food, etc., in their possession, if necessary.
 Article 7(3)

 

APPENDIX 1. Names of Acts Above Mentioned in Korean
Source: Korean Law Information Center(law.go.kr), Ministry of Government Legislation
in English in Korean
ACT ON COLLECTION AND USE OF DONATIONS 기부금품모집및사용에관한법률
ACT ON ENCOURAGING THE DONATION OF FOOD, ETC. 식품등기부활성화에관한법률
ACT ON PUBLIC-PRIVATE PARTNERSHIPS IN INFRASTRUCTURE 사회기반시설에대한민간투자법
ACT ON THE CREDIT GUARANTEE FOR FARMERS AND FISHERS 농림수산업자신용보증법
ACT ON THE EMPLOYMENT PROMOTION AND VOCATIONAL REHABILITATION OF PERSONS WITH DISABILITIES 장애인고용촉진및직업재활법
ACT ON THE IMPROVEMENT OF WATER QUALITY AND SUPPORT FOR RESIDENTS OF THE HAN RIVER BASIN 한강수계상수원수질개선및주민지원등에관한법률
ACT ON THE NATIONAL TRUST OF CULTURAL HERITAGES AND NATIONAL ENVIRONMENT ASSETS 문화유산과자연환경자산에관한국민신탁법
ACT ON THE PROMOTION OF NEWSPAPERS, ETC. 신문등의진흥에관한법률
ACT ON THE PROTECTION OF AND SUPPORT FOR MICRO ENTERPRISES 소상공인보호및지원에관한법률
ACT ON WATER MANAGEMENT AND RESIDENT SUPPORT IN THE GEUM RIVER BASIN 금강수계물관리및주민지원등에관한법률
ACT ON WATER MANAGEMENT AND RESIDENT SUPPORT IN THE YEONGSAN AND SEOMJIN RIVER BASINS 영산강·섬진강수계물관리및주민지원등에관한법률
ACT ON WATER MANAGEMENT AND RESIDENTS SUPPORT IN THE NAKDONG RIVER BASIN 낙동강수계물관리및주민지원등에관한법률
AGRICULTURAL AND FISHERY DISASTER INSURANCE ACT 농어업재해보험법
ASBESTOS INJURY RELIEF ACT 석면피해구제법
COMMUNITY CHEST OF KOREA ACT1) 사회복지공동모금회법
CREDIT GUARANTEE FUND ACT 신용보증기금법
CRIME VICTIM PROTECTION FUND ACT 범죄피해자보호기금법
CULTURAL HERITAGE PRESERVATION FUND ACT 문화재보호기금법
CULTURE AND ARTS PROMOTION ACT 문화예술진흥법
DEPOSIT ACT 공탁법
DISASTER RELIEF ACT 재해구호법
EMERGENCY MEDICAL SERVICE ACT 응급의료에관한법률
FOREIGN ECONOMIC COOPERATION FUND ACT 대외경제협력기금법
FRAMEWORK ACT ON BROADCASTING COMMUNICATIONS DEVELOPMENT 방송통신발전기본법
FRAMEWORK ACT ON FISHERIES AND FISHING VILLAGES DEVELOPMENT 수산업·어촌발전기본법
FRAMEWORK ACT ON GENDER EQUALITY 양성평등기본법
FRAMEWORK ACT ON JUVENILES 청소년기본법
FRAMEWORK ACT ON LABOR WELFARE 근로복지기본법
FRAMEWORK ACT ON SCIENCE AND TECHNOLOGY 과학기술기본법
INDUSTRIAL ACCIDENT COMPENSATION INSURANCE ACT 산업재해보상보험법
INDUSTRIAL TECHNOLOGY INNOVATION PROMOTION ACT 산업기술혁신촉진법
INTER-KOREAN COOPERATION FUND ACT 남북협력기금법
KOREA FOUNDATION ACT 한국국제교류재단법
KOREA FOUNDATION FOR THE PROMOTION OF PRIVATE SCHOOL ACT 한국사학진흥재단법
KOREA HOUSING FINANCE CORPORATION ACT 한국주택금융공사법
KOREA TECHNOLOGY FINANCE CORPORATION ACT 기술보증기금법
NATIONAL FINANCE ACT 국가재정법
NATIONAL SPORTS PROMOTION ACT 국민체육진흥법
NORTH KOREAN REFUGEES PROTECTION AND SETTLEMENT SUPPORT ACT 북한이탈주민의보호및정착지원에관한법률
ORGANIZATION OF THE REPUBLIC OF KOREA NATIONAL RED CROSS ACT 대한적십자사조직법
PATRIOTS AND VETERANS FUND ACT 보훈기금법
PROMOTION OF THE MOTION PICTURES AND VIDEO PRODUCTS ACT 영화및비디오물의진흥에관한법률
RADIOACTIVE WASTE MANAGEMENT ACT 방사성폐기물관리법
RESTRICTION OF SPECIAL TAXATION ACT 조세특례제한법
SMALL AND MEDIUM ENTERPRISES PROMOTION ACT 중소기업진흥에관한법률
SPECIAL ACT ON ASSISTANCE TO FARMERS, FISHERS, ETC. FOLLOWING THE CONCLUSION OF FREE TRADE AGREEMENTS 자유무역협정체결에따른농어업인등의지원에관한특별법
SPECIAL ACT ON ASSISTANCE TO LOCAL NEWSPAPERS DEVELOPMENT2) 지역신문발전지원특별법
SUPPORT OF THE SAEMAUL MOVEMENT ORGANIZATION ACT 새마을운동조직육성법
TRADE INSURANCE ACT 무역보험법
TUBERCULOSIS PREVENTION ACT 결핵예방법

Note
1. From Community Chest of Korea website, because its English translations are not in the source.
2. Arbitrarily translated, because its English translations are not in the source.

 

APPENDIX 2. Names of Funds Above Mentioned in Korean
Source: Korean Law Information Center(law.go.kr), Ministry of Government Legislation
in English in Korean
Science and Technology Promotion Fund 과학기술진흥기금
National Sports Promotion Fund 국민체육진흥기금
Fund for International Exchanges 국제교류기금
Labor Welfare Promotion Fund 근로복지진흥기금
Fund for Management of Geum River Basin 금강수계관리기금
Korea Technology Finance Corporation 기술보증기금
Nakdong River Basin Management Fund 낙동강수계관리기금
Inter-Korean Cooperation Fund 남북협력기금
Credit Guarantee Fund for Farmers and Fishers 농림수산업자신용보증기금
Agricultural and Fishery Disaster Re-insurance Fund 농어업재해재보험기금
Agricultural and Fishing Villages Collaborative Cooperation Fund 농어촌상생협력기금
Foreign Economic Cooperation Fund 대외경제협력기금
Trade Insurance Fund 무역보험기금
Culture and Arts Promotion Fund 문화예술진흥기금
Cultural Heritage Protection Fund 문화재보호기금
Radioactive Waste Management Fund 방사성폐기물관리기금
Broadcasting Communications Development Fund 방송통신발전기금
Crime Victim Protection Fund 범죄피해자보호기금
Patriots and Veterans Fund 보훈기금
Judicial Service Promotion Fund 사법서비스진흥기금
Private Schools Promotion Fund 사학진흥기금
Infrastructure Credit Guarantee Fund 산업기반신용보증기금
Fund for Promotion of Development and Commercialization of Industrial Technology in the Account for the Rational Use of Specific Substances 산업기술진흥및사업화촉진기금–특정물질사용합리화계정
Industrial Accident Compensation Insurance and Prevention Fund 산업재해보상보험 및 예방 기금
Asbestos Injury Relief Fund 석면피해구제기금
Market Promotion Fund for Micro Enterprises 소상공인시장진흥기금
Fishery Development Fund 수산발전기금
Korea Credit Guarantee Fund 신용보증기금
Gender Equality Fund 양성평등기금
Press Development Fund 언론진흥기금
Yeongsan and Seomjin River Systems Management Fund 영산강ㆍ섬진강수계관리기금
Motion Picture Development Fund 영화발전기금
Emergency Medical Service Fund 응급의료기금
Support Fund for Implementation of Free Trade Agreements 자유무역협정이행지원기금
Employment Promotion and Vocational Rehabilitation Fund for Persons with Disabilities 장애인고용촉진및직업재활기금
Housing Finance Credit Guarantee Fund 주택금융신용보증기금
Fund for Establishment and Promotion of Small and Medium Enterprises 중소벤처기업창업및진흥기금
Local Newspapers Development Fund 지역신문발전기금
Youth Nurture Fund 청소년육성기금
Han River Watershed Management Fund 한강수계관리기금

 

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