Act On The Measures For The Admission To International Financial Institutions


Published: 2014-12-30

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 Article 1 (Purpose)   print
The purpose of this Act is to empower the Republic of Korea to take necessary measures to implement agreements with international financial institutions as a member of such international financial institutions.
[This Article Wholly Amended by Act No. 12863, December 30, 2014]
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 Article 2 (Investment-related Institutions and Investment Funds)   print
(1) The term "international financial institution" in this Act means any of the following institutions:
1. International Monetary Fund;
2. International Bank for Reconstruction and Development;
3. International Development Association;
4. International Finance Corporation;
5. Asian Development Bank;
6. African Development Fund;
7. African Development Bank;
8. Common Fund for Commodities;
9. Multilateral Investment Guarantee Agency;
10. European Bank for Reconstruction and Development;
11. Bank for International Settlements;
12. Inter-American Development Bank;
13. Inter-American Investment Corporation;
14. Multilateral Investment Fund.
(2) Where the Government intends to make investments (including contribution; hereinafter the same shall apply) in an international financial institution, a resolution by the National Assembly shall be obtained in advance: Provided, That the same shall not apply to any of the following cases:
1. Where the Government invests in the Bank for International Settlements in which the Bank of Korea invests;
2. Where the Bank of Korea pays investment funds pursuant to paragraph (3).
(3) The Government shall endeavor to include investment funds in the budget, and where it is impracticable to do so due to a flexible response to financial circumstances and demand for investment, it may require the Bank of Korea to provide such investment funds.
(4) Where the Government requires the Bank of Korea to provide investment funds pursuant to paragraph (3), it shall report the following matters to the National Assembly by September, 30 of each year:
1. An investment plan for the following year;
2. Investment records of the relevant year;
3. Other important matters concerning investment in international financial institutions.
(5) Necessary details, such as amounts of investment, under paragraphs (2) and (3) shall be prescribed by Presidential Decree.
[This Article Wholly Amended by Act No. 12863, December 30, 2014]
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 Article 3 (Method of Investment)   print
(1) In making investments in international financial institutions, the Minister of Strategy and Finance may, with the approval of the President after deliberation by the State Council, make full payment, or payment in installments, in United States dollars, other convertible currencies, gold, ingot gold, or Korean currency, as prescribed by the provisions of the relevant agreement with each international financial institution.
(2) Where making investments with Korean currency under paragraph (1), the Minister of Strategy and Finance may, with the approval of the President after deliberation by the State Council, make the all or part of investments with securities denominated in Korean currency.
(3) No interest shall be paid on securities issued in accordance with paragraph (2), and no person may acquire such securities from the relevant international financial institutions, except for the Bank of Korea that may purchase the securities in accordance with Article 4 (2).
(4) Paragraphs (1) and (2) shall apply mutatis mutandis where the Bank of Korea pays investment funds pursuant to Article 2 (3).
(5) Paragraph (3) shall apply mutatis mutandis to securities issued when the Bank of Korea pays investment funds pursuant to Article 2 (3) and (4).
[This Article Wholly Amended by Act No. 12863, December 30, 2014]
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 Article 4 (Payment for Securities)   print
(1) Upon request by any international financial institution to pay an amount equivalent to all or part of securities previously subscribed in accordance with Article 3, the Minister of Strategy and Finance or the Governor of the Bank of Korea shall pay without delay.
(2) Upon request for payment in accordance with paragraph (1), if there is any shortage of financial resources to fully or partially pay the requested amount, the Minister of Strategy and Finance may, with approval from the President following deliberation by the State Council, pay it with loans from the Bank of Korea or permit the Bank of Korea to purchase securities in the equivalent amount from the relevant international financial institutions.
(3) Notwithstanding Article 3 (3), the Government shall pay interest on securities purchased by the Bank of Korea in accordance with paragraph (2) from the date of purchase to the date of redemption.
[This Article Wholly Amended by Act No. 12863, December 30, 2014]
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 Article 5 (Delegates)   print
(1) The Minister of Strategy and Finance shall be the primary delegate of the Republic of Korea to each international financial institution, and the Governor of the Bank of Korea shall be a proxy delegate thereto: Provided, That in cases of the Bank for International Settlements, the Governor of the Bank of Korea shall be the primary delegate.
(2) Under the direction of the Minister of Strategy and Finance, the Governor of the Bank of Korea shall represent the Government in dealings, negotiations, and transactions with each international financial institution.
[This Article Wholly Amended by Act No. 12863, December 30, 2014]
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 Article 6 (Depositary)   print
The Bank of Korea shall be the depositary of Korean currency or other assets owned by each international financial institution in accordance with the relevant agreement with each such international financial institution.
[This Article Wholly Amended by Act No. 12863, December 30, 2014]
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 Article 7 Deleted. <by Act No. 7342, Jan. 27, 2005>   print
ADDENDA
(1) (Enforcement Date) This Act shall enter into force on the date of its promulgation.
(2) (Acts to be Repealed) The following Acts shall be repealed:
1. Act No. 362, "Act on Special Measures for Membership of International Monetary Fund and International Bank for Reconstruction and Development";
2. Act No. 527, "Act on the Increase of Quotas for International Monetary Fund and International Bank for Reconstruction and Development";
3. Act No. 585, "Act on Measures for Membership of International Development Association".
(3) (Transitional Measures) Actions taken under previous Acts before the enforcement of this Act shall be to have been duly taken under this Act.
ADDENDUM <Act No. 1553, Dec. 16, 1963>
This Act shall enter into force on the enforcement date of the Amended Constitution promulgated on December 26, 1962.
ADDENDUM <Act No. 1732, Dec. 30, 1965>
This Act shall enter into force on the date of its promulgation.
ADDENDUM <Act No. 1787, Apr. 25, 1966>
This Act shall enter into force on the date of its promulgation.
ADDENDUM <Act No. 1987, Mar. 7, 1968>
This Act shall enter into force on the date of its promulgation.
ADDENDA <Act No. 2311, Nov. 16, 1971>
(1) (Enforcement Date) This Act shall enter into force on the date of its promulgation.
(2) (Transitional Measures) The amount of securities purchased by the Bank of Korea from each international financial institution (excluding the amount redeemed by the Government) in accordance with the provisions of Article 4 (2) before the enforcement of this Act, and the investment which the Bank of Korea made in lieu of the Government, shall be deemed to be an investment of the Bank of Korea in each international financial institution in accordance with the provisions of this Act.
ADDENDUM <Act No. 2340, Aug. 17, 1972>
This Act shall enter into force on the date of its promulgation.
ADDENDUM <Act No. 2470, Feb. 5, 1973>
This Act shall enter into force on the date of its promulgation.
ADDENDUM <Act No. 2696, Dec. 21, 1974>
This Act shall enter into force on the date of its promulgation.
ADDENDA <Act No. 2778, Jul. 25, 1975>
(1) (Enforcement Date) This Act shall enter into force on the date of its promulgation.
(2) (Transitional Measures) Investments in each international financial institution under the previous provisions before the enforcement of this Act shall be deemed to have been duly made under this Act.
ADDENDUM <Act No. 3192, Dec. 28, 1979>
This Act shall enter into force on the date of its promulgation: Provided, That Article 2 (1) 6 shall apply on the date on which the Convention Establishing the African Development Fund enters into effect in the Republic of Korea, and subparagraph 7 shall apply on the date on which the Convention Establishing the African Development Bank enters into force for the Republic of Korea.
ADDENDUM <Act No. 3428, Apr. 13, 1981>
This Act shall enter into force on the date of its promulgation: Provided, That the provisions for the Common Fund for Commodities, under Article 2 (1) 8, shall be effective on the date on which the Convention Establishing the Common Fund for Commodities enters into force for the Republic of Korea.
ADDENDUM <Act No. 3880, Dec. 31, 1986>
This Act shall enter into force on the date on which the Agreement Establishing the Multilateral Investment Guarantee Agency enters into force for the Republic of Korea.
ADDENDUM <Act No. 4289, Dec. 31, 1990>
This Act shall enter into force on the date on which the Agreement Establishing the European Bank for Reconstruction and Development enters into force for the Republic of Korea.
ADDENDUM <Act No. 5172, Dec. 12, 1996>
This Act shall enter into force on the date of its promulgation.
ADDENDUM <Act No. 7342, Jan. 27, 2005>
This Act shall enter into force on the date of its promulgation.
ADDENDA <Act No. 8852, Feb. 29, 2008>
Article 1 (Enforcement Date)
This Act shall enter into force on the date of its promulgation. (Proviso Omitted.)
Articles 2 through 7 Omitted.
ADDENDUM <Act No. 11379, Mar. 21, 2012>
This Act shall enter into force three months after the date of its promulgation.
ADDENDUM <Act No. 12863, Dec. 30, 2014>
This Act shall enter into force on the date of its promulgation.