Act No.10174, 22. Mar, 2010, Partial Amendment
 
The purpose of this Act is to contribute to the stabilization of national living by preventing any loss of human life and property caused by fire, rapidly restoring the disaster and properly compensating any damage to human life.
 
The terms to be used in this Act shall be defined as follows:<Amended by Act No. 4069, Dec. 31, 1988; Act No. 5258, Jan. 13, 1997; Act No. 6891, May 29, 2003; Act No. 10174, Mar. 22, 2010>
1. The term "non-life insurance company" means a company which has obtained the permission of the fire insurance business in accordance with Article 4 of the Insurance Business Act;

2. The term "fire insurance bearing special agreement on indemnity for physical damage" means an insurance to cover any damage to a building caused by a fire and any liability for loss mentioned in Article 4(1);

3. the term "specific building " means State-owned buildings, educational institutions, departments, markets, medical facilities, entertainment places, accommodations, factories, apartment houses, and other building prescribed in the PD(Presidential Decree), which many persons enter or leave, or in which many person work or reside.
 
The area to which this Act applies shall be determined by Presidential Decree.
 
(1) Even if the owner of a special building commits no fault, if another person dies or suffers any injury because of a fire against the relevant building, he/she shall be liable for compensating for the damage within the limit of the insurance amount prescribed in Article 8. The forgoing shall also apply where the owner commits a slight fault, regardless of the provisions of the Act on Civil Liability for Fire Caused by Negligence.

(2) The indemnity liability of the owner of a special building for damage compensation shall be governed by the provisions of the Civil Act in addition to those of this Act.
 
(1) For the purpose of discharging his liability for damage compensation as prescribed in Article 4 (1), any owner of a special building shall effect a fire insurance bearing special agreement on indemnity for physical damage (hereinafter referred to as the ¡°fire insurance-cum-special agreement¡±) carried on by a non-life insurance company: Provided, That if he has effected the industrial accident compensation insurance for his employees under the Industrial Accident Compensation Insurance Act, he need not effect the insurance covering the liability for damage compensation as prescribed in Article 4 (1) for the employees.

(2) In addition to the fire insurance-cum-special agreement as referred to in paragraph (1), the owner of a special building may effect any insurance covering damage caused by wind or flood disaster or by collapse, etc.

(3) No non-life insurance company shall refuse to conclude an insurance contract as referred to in paragraphs (1) and (2).

(4) The owner of a special building shall effect the fire insurance- cum-special agreement within thirty days after the building passes the completion test or he acquires its ownership.

(5) The owner of a special building shall renew the fire insurance contract-cum-special agreement as referred to in paragraph (1) each year.
 
The provisions of Articles 4 and 5 shall not apply to the special buildings falling under any of the following subparagraphs:
1.Buildings owned by ambassadors, ministers and other equivalent envoys of foreign countries dispatched to the Republic of Korea;

2.Buildings owned by organizations of the United Nations and their employees (limited to only foreigners) dispatched to the Republic of Korea;

3.Buildings owned by foreign armed forces stationed in the Republic of Korea;

4.Buildings for military use and those owned by foreigners which are prescribed by Presidential Decree.
 
(1)If a person obliged to effect the insurance as prescribed in Article 5 fails to do so, the Financial Services Commission may request the relevant administrative agency to take necessary measures against the obligor such as the cancellation of approval or permission, the suspension of business or restriction on the use of the building. <Amended by Act No. 5505, Jan. 13, 1998; Act No. 8863, Feb. 29, 2008>

(2) The administrative agency shall, upon receiving the request as referred to in paragraph (1), comply with it unless there is any justifiable reason.
 
(1)The amount of insurance effected under Article 5 shall be any of the following ones:
1.In case of the fire insurance, the amount equivalent to the market price of the special building concerned;
2.In case of death covered under the physical damage liability insurance, the amount as determined by Presidential Decree, which shall be not less than 500 thousand won for each dead person;
3.In case of injury covered under the physical damage liability insurance, the amount as determined by Presidential Decree with the limit of the insurance amount for each dead person.
(2)The criterion for determination of the market price as referred to in paragraph (1) 1 shall be determined by Ordinance of the Prime Minister. <Amended by Act No. 5505, Jan. 13, 1998; Act No. 5697, Jan. 29, 1999; Act No. 8863, Feb. 29, 2008>
 
Where a liability for damage compensation referred to in Article 4 (1) arises, any victim may make a request to the non-life insurance company for the payment of the amount insured as referred to in Article 8 under the conditions as prescribed by Presidential Decree.
 
The claim for the physical damage liability insurance among insurance claims under this Act shall not be seized.
 
The non-life insurance companies shall establish the Korean Fire Protection Association (hereinafter referred to as the ¡°Association¡±) which carries out tasks such as safety inspection of fire prevention and fire-fighting equipment, research and enlightenment thereon, etc., upon permission from the Financial Services Commission as prescribed by Presidential Decree. <Amended by Act No. 5505, Jan. 13, 1998; Act No. 5697, Jan. 29, 1999; Act No. 5982, May 24, 1999; Act No. 8863, Feb. 29, 2008>
 
(1)The Association shall be a corporate juristic person.
(2)The provisions of the Civil Act concerning the corporate juristic person except those prescribed by this Act shall be applicable mutatis mutandis to the Association.
 
No person other than the Association as prescribed by this Act shall use the title ¡°Korean Fire Protection Association¡±, or other similar titles..
 
The non-life insurance companies shall contribute expenses required for the establishment and operation of the Association under the conditions as prescribed by Presidential Decree.
 
The Association shall conduct the following tasks: <Amended by Act No. 5505, Jan. 13, 1998; Act No. 8863, Feb. 29, 2008>
1.Safety inspection of fire prevention and fire-fighting equipment;

2.Assessment of discount grade on premium rate in the fire insurance on the basis of fire-fighting equipment;

3.Survey, research and enlightenment on materials concerning fire prevention and fire-fighting equipment;

4.Recommendation to administrative agencies and relevant organizations on the prevention of fire;

5.Other tasks authorized by the Financial Services Commission.
 

(1)The Association shall conduct a safety inspection of fire prevention and fire-fighting equipment of the relevant special buildings whenever insurance contracts are concluded or renewed: Provided, That a special building falling under the following subparagraphs may be exempted from safety inspections for a fixed period, as prescribed by Presidential Decree: <Amended by Act No. 6106, Jan. 12, 2000; Act No. 10174, Mar. 22, 2010>
1.A special building having a low fire risk index (referring to the fire risk index determined by an insurance premium rate calculation institution pursuant to Article 176 of the Insurance Business Act) which is determined by Ordinance of the Prime Minister as a result of safety inspections;

2.A special building having a low fire risk index which is determined by Ordinance of the Prime Minister as a building, a safety improvement plan of which needs to be prepared pursuant to Article 13-2 (1) of the High-Pressure Gas Safety Control Act;

3.A special building having a low fire risk index which is determined by Ordinance of the Prime Minister as a building, a process safety report of which needs to be prepared pursuant to Article 49-2 (1) of the Occupational Safety and Health Act.


(2)If it is deemed necessary, the Association may conduct a safety inspection of fire prevention and fire-fighting equipment for any special building for which a fire insurance-cum-special agreement is effected. In such cases, the proviso to paragraph (1) shall apply mutatis mutandis. <Amended by Act No. 6106, Jan. 12, 2000>

(3)Any owner of a special building shall comply with the safety inspection as referred to in paragraphs (1) and (2) unless there is any justifiable ground. <Amended by Act No. 6106, Jan. 12, 2000>

(4)If the owner of a special building fails to comply with a safety inspection as referred to in paragraphs (1) and (2), the Association may request the chief of the fire station to conduct the safety inspection thereof.

(5)The Association shall, in conducting a safety inspection under paragraphs (1) and (2), not collect expenses on any pretext.


(6)The safety inspection as referred to in paragraphs (1) and (2) shall be conducted under the conditions as prescribed by Presidential Decree.

 
If it is deemed necessary in view of the result of the safety inspection under Article 16, the Association shall recommend the administrative agency concerned to take measures necessary for improving fire-fighting equipment.
 
donate fire-fighting equipment to administrative and other relevant organizations, or lend funds required for improving fire-fighting equipment to the owner of a special building, under the articles of incorporation. <Amended by Act No. 5505, Jan. 13, 1998; Act No. 5697, Jan. 29, 1999>

(2)Any non-life insurance company or the Association may install a manufacturing factory of fire-fighting equipment, or lend necessary funds to any person who manufactures such equipment, under the articles of incorporation. <Amended by Act No. 5505, Jan. 13, 1998; Act No. 5697, Jan. 29, 1999>
 

(1)The Association shall prepare an operational plan of each business year and submit it to the Financial Services Commission before the corresponding year commences. <Amended by Act No. 5505, Jan. 13, 1998; Act No. 5697, Jan. 29, 1999; Act No. 8863, Feb. 29, 2008>

(2)When the Financial Services Commission receives the operational plan as referred to in paragraph (1), it shall notify the Administrator of the National Emergency Management Agency. <Amended by Act No. 5505, Jan. 13, 1998; Act No. 5697, Jan. 29, 1999; Act No. 7186, Mar. 11, 2004; Act No. 8863, Feb. 29, 2008>
(3)The provisions of paragraphs (1) and (2) shall apply mutatis mutandis in case of modifying the operational plan as referred to in paragraph (1).

 
(1) A person who is ineligible for election as an officer of an insurer under the provisions of Article 13 of the Insurance Business Act shall not be an officer of the Association. <Amended by Act No. 5697, Jan. 29, 1999; Act No. 6891, May 29, 2003>

(2)If any officer who is engaged in routine affairs desires to do other affairs, he shall obtain approval therefor from the Financial Services Commission. <Amended by Act No. 5505, Jan. 13, 1998; Act No. 8863, Feb. 29, 2008>

(3)If any officer of the Association falls under any of the following subparagraphs, the Financial Services Commission may order the Asso- ciation to dismiss him: <Amended by Act No. 5505, Jan. 13, 1998; Act No. 5697, Jan. 29, 1999; Act No. 8863, Feb. 29, 2008>
2.Where he is adjudged guilty for a criminal case;
3.Where he is declared bankrupt;
4.Where he commits an act detrimental to the public interest;
5.Where it is difficult for him to carry out his duties because of any physical or mental disability; and
6.Where causes under paragraph (1) occur or he turns out to have fallen under paragraph (1) at the time of his election.
 
(1)If it is deemed necessary for an efficient operation of the Association, the Financial Services Commission may order the Association to modify the Association¡¯s articles of incorporation or operational methods, or issue any order necessary for the supervision. <Amended by Act No. 5505, Jan. 13, 1998; Act No. 8863, Feb. 29, 2008>

(2)The Administrator of the National Emergency Management Agency may issue any order necessary for the supervision on tasks of subparagraphs 1 and 3 among tasks of the Association prescribed in Article 15. <Amended by Act No. 5697, Jan. 29, 1999; Act No. 7186, Mar. 11, 2004>
 
(1) The Financial Services Commission may, if necessary, on a regular basis or at any time, order the Association to submit a report on its activities, or have the Governor of the Financial Services Service inspect operational conditions of the Association, books, documents or other necessary things. <Amended by Act No. 5505, Jan. 13, 1998; Act No. 8863, Feb. 29, 2008>

(2) The provisions of paragraph (1) shall apply mutatis mutandis in case the Administrator of the National Emergency Management Agency deems it necessary for the tasks of the Association as prescribed in subparagraphs 1 and 3 of Article 15. <Amended by Act No. 5697, Jan. 29, 1999; Act No. 7186, Mar. 11, 2004>

(3)Any person who conducts the inspection under paragraphs (1) and (2) shall show to the interested persons a certificate indicating his competence to do so. <Amended by Act No. 5697, Jan. 29, 1999>
 
Any person who violates the provisions of Article 5 (1) shall be punished by a fine not exceeding five million won.
 
Any person who violates the provisions of Article 13 shall be punished by a fine for negligence not exceeding three million won. <Amended by Act No. 6106, Jan. 12, 2000>
 
Matters necessary for the enforcement of this Act shall be determined by Presidential Decree..
 
 
ADDENDA
(Law No.2482 on February 6, 1973)
 

(1) (Enforcement Date) This Act shall enter into force on the date of its promulgation.
(2) (Transitional Measures) The owners of special buildings who fall under Article 5 at the time this Act enters into force or where time-limit regarding effecting insurance as prescribed in Article 5 arrives between the enforcing date of this Act and June 30, 1974 shall effect the fire insurance-cum special agreement under this Act: Provided, That with respect to any State-owned building, the Minister of Finance may adjust the time of effecting insurance with the limit of the Budget after consulting the Minister of Economic Planning Board.
(3) (Idem) Any non-life insurance company falling under subparagraph 1 of Article 2 at the time this Act enters into force shall establish the Association under Article 11 not later than June 30, 1973.

 
ADDENDA
<Act No. 4069, Dec. 31, 1988>
 
Article 1 (Enforcement Date)
This Act shall enter into force on April 1, 1989. (Proviso Omitted.)
Articles 2 through 15 Omitted.
 
ADDENDA
<Act No. 5258, Jan. 13, 1997>
 
This Act shall enter into force on the date of its promulgation.


 
ADDENDA
<Act No. 5505, Jan. 13, 1998>
 

(1) (Enforcement Date) This Act shall enter into force on April 1, 1998. (Proviso Omitted.)
(2) (Transitional Measures relating to Dispositions) At the time of the entry into force of this Act, authorization or other actions taken by administrative agencies, or various reports or other actions submitted to administrative agencies under the previous provisions, shall be deemed to be actions taken by or submitted to administrative agencies under this Act.
(3) through (5) Omitted.

 
ADDENDA
<Act No. 5697, Jan. 29, 1999>
 

(1) (Enforcement Date) This Act shall enter into force on the date of its promulgation.
(2) (Transitional Measures relating to Officers) The amended provisions of Article 20 shall apply to officers elected on after the date of the entry into force of this Act.

 
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. 6106, Jan. 12, 2000>
 

(1) (Enforcement Date) This Act shall enter into force three months after the date of its promulgation.
(2) (Transitional Measures relating to Penal Provisions) The application of the penal provisions to any act committed before this Act enters into force shall be governed by the previous provisions.

 
ADDENDA
<Act No. 6891, May 29, 2003>
 

Article 1 (Enforcement Date)
This Act shall enter into force three months after the date of its prom- ulgation. (Proviso Omitted.)
Articles 2 through 34 Omitted.

 
ADDENDA
<Act No. 7186, Mar. 11, 2004>
 
Article 1 (Enforcement Date)
This Act shall enter into force on the date of its promulgation. (Proviso Omitted.)
Articles 2 through 5 Omitted.
 
ADDENDA
<Act No. 8863, Feb. 29, 2008>
 
Article 1 (Enforcement Date)
This Act shall enter into force on the date of its promulgation.
Articles 2 through 5 Omitted.
 
ADDENDA
<Act No. 10174, Mar. 22, 2010>
 
Article 1 (Enforcement Date)
(1) (Enforcement Date) This Act shall enter into force three months after the date of its promulgation: Provided, That the amended provisions of subparagraph 3 of Article 2 shall enter into force on January 1, 2011.
(2) (Applicability concerning Exemption of Safety Inspections) The amended provisions of Article 16 (1) 1 shall apply to a special building that takes the first safety inspection after this Act enters into force..