Article 17-4 (Scope of Welfare Benefits)

① In Article 12, subparagraph 3, item (f) of the Act, "benefits of a welfare nature prescribed by Presidential Decree" refers to the following. 1. The benefit obtained by a person falling under any of the following items by being provided with a company residence prescribed by the Minister of Economy and Finance: a. Executives who are not shareholders or investors. b. Executives who are small shareholders prescribed by the Minister of Economy and Finance. c. Employees who are not executives (including employees of non-profit corporations or individuals). d. Persons receiving earned income from the State or local governments. 2. The benefit obtained by an employee of a small and medium-sized enterprise as defined in Article 2 of the Enforcement Decree of the 「Restriction of Special Taxation Act」 by receiving a loan at a low or no interest rate for the purchase or lease of a house (including land appurtenant to the house). Provided, that the benefit obtained by an employee shall be excluded if the employee falls under the relationship specified in any of the following items with the small and medium-sized enterprise: a. Where the small and medium-sized enterprise is a sole proprietorship: Kinship as defined in Article 1-2(1) of the Enforcement Decree of the 「Framework Act on National Taxes」. b. Where the small and medium-sized enterprise is a corporation: The relationship of a major shareholder, etc., as defined in Article 43(7) of the Enforcement Decree of the 「Corporate Tax Act」 (including persons in a kinship relationship as defined in Article 1-2(1) of the Enforcement Decree of the 「Framework Act on National Taxes」 or a management control relationship as defined in Article 1-2(3) of the same Decree with such major shareholder, etc.). 2. In cases where an employer installs and operates a workplace daycare center or entrusts childcare services pursuant to Article 14 of the 「Infant and Child Care Act」, and bears the costs thereof pursuant to Article 37 of the same Act and Article 25 of the same Act's Enforcement Decree, the benefit obtained by an employee of the workplace. 3. Insurance premiums, trust installments, or mutual aid installments (hereinafter referred to as "insurance premiums, etc." in this subparagraph) borne by the employer in relation to insurance, trusts, or mutual aid plans where an employee is the contractor, or where an employee or their spouse and other family members are the beneficiaries, among the following insurance premiums, etc.: a. Premiums for insurance (hereinafter referred to as "group pure protection insurance") that covers the death, injury, or illness of an employee as the cause for benefit payment, with the employee as the insured and beneficiary, and does not refund the paid premiums upon maturity, and premiums for insurance (hereinafter referred to as "group refunding protection insurance") that refunds within the scope not exceeding the paid premiums upon maturity, up to 700,000 won per year. b. Premiums for insurance where the cause for benefit payment is the compensation for damages arising from the official acts of executives and employees not due to their intentional (including gross negligence) acts, and the executives and employees are the insured. 4. The amount of prize money and awards received by a public official from the State or a local government in relation to the performance of public duties, up to 2,400,000 won per year.