[Plaintiff, Appellant] Plaintiff
[Defendant, Appellee] Korea Workers' Compensation and Welfare Service
[Judgment Below] Busan High Court Decision 97Gu4982 delivered on December 11, 1997
[Order]
The judgment below is reversed, and the case is remanded to the Busan High Court.
[Reasoning]
We examine the grounds of appeal.
According to the reasoning of the judgment below, the court below found the following facts: Nonparty 1 established and operated ○○○○ Industrial Co. (it appears that "○△○○ Industrial Co." in the judgment below is a clerical error) on March 15, 1987; when a certain stock company for whose debts he had provided joint and several guarantee went bankrupt around October 1995, in order to transfer the nominal representative of the said Industrial Co. to a third party, he obtained the consent of his cousin, the deceased Nonparty 2, who had been engaged in forklift operation and production work at the said Industrial Co. since June 1, 1987, and around October 1995 filed a formal report of business closure with the competent tax office, and on the 21st of the same month registered the business again with the same location and trade name but with only the representative changed to the said deceased; thereafter, he filed with the Defendant the 1995 final insurance premium report and the 1996 estimated insurance premium report, listing the said deceased as the reporting person (business owner). However, the said Industrial Co. was in fact still operated by the said Nonparty 1, and the said deceased continued to engage mainly in forklift operation and production work in accordance with the direction and orders of the said Nonparty 1. The court below further found that around 18:10 on April 20, 1996, while the said deceased was driving a forklift on a sloped road to unload raw materials, the forklift struck a retaining wall on the right side of the road and overturned, causing the deceased to die of a ruptured heart and ruptured liver. Based on these facts, the court below determined that although the said deceased was, internally within the said Industrial Co., merely an employee of the said Nonparty 1 who provided labor for the purpose of receiving wages, externally he was the representative and business owner of the said Industrial Co., and, in particular, in relation to the Defendant, he was clearly the business owner of the said Industrial Co. and the insured person under the Industrial Accident Compensation Insurance, and therefore the internal relationship of the said Industrial Co. could not be invoked to claim insurance benefits under the Industrial Accident Compensation Insurance Act on the premise that he was an employee. Accordingly, the court below held that the Defendant's decision denying payment of survivor benefits and funeral expenses claimed by the Plaintiff, the wife of the said deceased, was lawful.
The Industrial Accident Compensation Insurance Act (hereinafter referred to as the "Industrial Accident Insurance Act") contains no other provisions besides the provision that an employee who may receive insurance benefits under the Act refers to an "employee under the Labor Standards Act (근로기준법)." Therefore, whether a person is an employee eligible for insurance benefits is determined solely by whether he or she falls under the category of "employee under the Labor Standards Act," and such determination must be made, in substance, according to whether the person provided labor to an employer in a subordinate relationship for the purpose of wages in a business or workplace (see Supreme Court Decision 98Da6084 delivered on May 8, 1998). Accordingly, this determination is made not in relation to the Korea Workers' Compensation and Welfare Service, but in relation to the employer who is the counterpart in the employment relationship. Furthermore, Articles 5, 7, and 10 of the Industrial Accident Insurance Act provide that, except in exceptional cases prescribed by Presidential Decree, the business owner of every business becomes, as a matter of course, an insured person under the Industrial Accident Compensation Insurance (hereinafter referred to as "Industrial Accident Insurance"), and that the industrial accident insurance relationship arises on the date the business commences or the date on which the business owner comes to fall under a business for which enrollment as an insured person is mandatory. Therefore, it is reasonable to hold that, in such cases, the parties to the insurance relationship, such as the insured person, or any change thereof, is determined not according to the content of the report made to the Korea Workers' Compensation and Welfare Service, but according to the substance of the relevant facts, irrespective of such report.
However, according to the facts found by the court below and the record, it can be seen that ○○○○ Industrial Co. was a business whose business owner became a mandatory insured person under the Industrial Accident Insurance, since it had continuously employed 5 or more employees even before the business registration was made in the name of the said deceased; and even after the report of business closure, the business registration in the name of the said deceased, and the insurance premium reports, etc. were made, the said Industrial Co., contrary to the content of such reports, continued without interruption to be operated by the said Nonparty 1 just as before, and the said deceased provided labor to the said Nonparty 1 in a subordinate relationship for the purpose of wages from the time he joined the company until his death. Therefore, in light of the legal principles set forth above, since the deceased was an employee under the Labor Standards Act, he falls under the category of a person eligible for insurance benefits, and it cannot be said that there was any change in the insurance relationship in which the said Nonparty 1 was the insured person.
Nevertheless, the court below, while recognizing that the said deceased was in substance an employee under the Labor Standards Act, nonetheless held that, because he had been reported to the Defendant as the business owner of the said Industrial Co., he fell under the category of insured person in relation to the Defendant, and thus could not be a person eligible for insurance benefits. This constitutes an error of law that misapprehended the legal principles concerning persons eligible for industrial accident insurance benefits or insured persons of a business subject to mandatory application of industrial accident insurance, and such error affected the judgment. The ground of appeal pointing this out is well-founded.
Therefore, the judgment below is reversed, and the case is remanded to the court below. This Decision is rendered in accordance with the unanimous opinion of the Justices participating in the adjudication, as stated in the Order.
Justice Chun Kyung-song (Presiding Justice), Justice Ji Chang-kwon, Justice Shin Seong-taek (Justice in Charge), Justice Song Jin-hoon