Public Capital Management Fund Act


Published: 2011-04-08

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 Article 1 (Purpose)   print
The purpose of this Act is to establish a public capital management fund in order to integrate and manage surplus funds, etc., to utilize them for public purposes, such as treasury loans, and to efficiently manage the issuance, repayment, etc. of State bonds, and to prescribe necessary matters for the management and operation thereof.
[This Article Wholly Amended by Act No. 10568, Apr. 8, 2011]
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 Article 1-2 (Definitions)   print
The terms used in this Act shall be defined as follows:
1. The term "loan" means lending of funds by the Government for the purpose of improving national welfare and providing support for major industries;
2. The term "treasury loan fund" means funds introduced by the Government as a borrower in accordance with a public loan agreement entered into with an international economic cooperation organization, foreign government or foreign corporation (hereinafter referred to as "public loan agreement"), and funds generated from the management thereof.
[This Article Wholly Amended by Act No. 10568, Apr. 8, 2011]
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 Article 2 (Establishment of Fund)   print
The Government shall establish a public capital management fund to secure and provide necessary funds for public purposes, such as treasury loans, and to efficiently manage the issuance, repayment, etc. of State bonds (hereinafter referred to as the "Management Fund").
[This Article Wholly Amended by Act No. 10568, Apr. 8, 2011]
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 Article 2-2 (Classification of Accounts of Management Fund)   print
The Management Fund shall be sub-divided into an omnibus account, treasury loan account, and loan account.
[This Article Wholly Amended by Act No. 10568, Apr. 8, 2011]
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 Article 3 (Resources and Use of Omnibus Account)   print
(1) The resources of the omnibus account shall be as follows:
1. Funds deposited pursuant to Article 6 or transferred from other accounts of the Management Fund (hereinafter referred to as "deposit received");
2. Money transferred from other accounts and funds or other accounts of the Management Fund;
3. Contributions from general accounting;
4. Proceeds of principal and interest of funds transferred to other accounts and funds or other accounts of the Management Fund (hereinafter referred to as "deposit");
5. Proceeds of principal and interest of securities, including State bonds, municipal bonds or bonds issued in accordance with a special Act by a corporation established under the relevant special Act (hereinafter referred to as "State and municipal bonds");
6. Proceeds of the issuance of State bonds;
7. Budget surplus;
8. Revenues of commissions from bearing guarantee obligations under Article 92 of the National Finance Act (hereinafter referred to as "guarantee obligation");
9. Claims as a result of the exercise of indemnity rights to guarantee obligation, if fulfilled;
10. Other management profit of the omnibus account.
(2) The omnibus account shall be managed for the following purposes:
1. Deposit to other accounts or funds;
2. Deposit to other accounts of the Management Fund;
3. Transfer to other accounts of the Management Fund;
4. Acquisition or purchase of securities, including State or municipal bonds, etc.;
5. Repayment of principal and interest of State bonds;
6. Repayment of principal and interest on deposits received;
7. Fulfillment of guarantee obligation;
8. Expenses incurred in managing State bonds;
9. Other purposes prescribed by Presidential Decree as necessary to create, operate or manage omnibus accounts.
[This Article Wholly Amended by Act No. 10568, Apr. 8, 2011]
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 Article 4 (Resources and Use of Treasury Loan Account)   print
(1) The resources of the treasury loan account shall be as follows:
1. Deposits received (excluding funds deposited pursuant to Article 6; hereafter the same shall apply in this Article);
2. Money transferred from general accounting or other accounts of the Management Fund;
3. Proceeds of principal and interest of counterpart funds;
4. Proceeds of principal and interest on amount loaned;
5. Proceeds of principal and interest of deposits (limited to deposits to other accounts of the Management Fund, but including deposits received from other accounts or other funds by the treasury loan account under the former Act on the Special Accounts for Treasury Loans (referring to the same Act before it is repealed by amended Act (Act No. 8135) of the Public Capital Management Fund Act; the same shall apply hereinafter) on and before December 31, 2006);
6. Proceeds of principal and interest of State or municipal bonds (limited to those held in the treasury loan account under the former Act on the Special Accounts for Treasury Loans on and after December 31, 2006);
7. Other management profits of the treasury loan account.
(2) The treasury loan account shall be managed for the following purposes:
1. Treasury loans for projects eligible for treasury loans;
2. Repayment of principal and interest of deposit received;
3. Deposit to other accounts of the Management Fund;
4. Transfer to other accounts of the Management Fund;
5. A variety of expenses incurred in managing the treasury loan account.
[This Article Wholly Amended by Act No. 10568, Apr. 8, 2011]
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 Article 5 (Resources and Use of Loan Account)   print
(1) The resources of the loan account shall be as follows:
1. Treasury loan funds;
2. Deposits received (excluding funds deposited pursuant to Article 6; hereafter the same shall apply in this Article);
3. Money transferred from other accounts of the Management Fund;
4. Proceeds of principal and interest on deposits;
5. Other management profits of the loan account.
(2) The loan account shall be managed for the following purposes:
1. Repayment of principal and interest on treasury loans (including various charges);
2. Deposits into other accounts of the Management Fund;
3. Transfers to other accounts of the Management Fund;
4. Repayment of principal and interest of deposit received;
5. Other expenses incurred in managing the loan account.
[This Article Wholly Amended by Act No. 10568, Apr. 8, 2011]
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 Article 5-2 (Management of Treasury Loan Fund)   print
(1) The treasury loan fund shall be managed in accordance with a public loan agreement.
(2) The scope of money deposited into other accounts of the Management Fund from the loan account shall not exceed the amount calculated by subtracting, from the estimated amount of revenues of each business year, estimated amount of repayment of principal and interest and expenses incurred in managing the relevant funds.
[This Article Wholly Amended by Act No. 10568, Apr. 8, 2011]
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 Article 6 (Deposit to Management Fund)   print
(1) Each manager of an account, deposit, accounting or fund falling under any of the following subparagraphs (hereinafter referred to as "funds, etc.") may deposit surplus funds to the Management Fund, notwithstanding the Acts related to the establishment of the relevant funds, etc.:
1. Account for management of national funds under Article 34 (6) of the Management of the National Funds Act;
2. Postal savings under the Postal Savings and Insurance Act;
3. Special accounting;
(2) The Minister of Strategy and Finance may request that each manager of funds, etc. deposit surplus funds to the Management Fund.
(3) The grounds that the Minister of Strategy and Finance may request any manager of funds, etc. to deposit pursuant to paragraph (2) and the scope of funds, etc. shall be prescribed by Presidential Decree.
[This Article Wholly Amended by Act No. 10568, Apr. 8, 2011]
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 Article 7 (Term of Deposits and Interest Rate, etc.)   print
(1) The term of deposit received shall not be less than one month.
(2) With respect to deposits received, interest shall, in principle, be paid at the rate prescribed by the Committee for Management of Public Capital Management Fund under Article 10, based on the level of the interest rates of State or municipal bonds issued at the market interest rate on an open market, return on the management of financial assets, etc. of the funds, etc.: Provided, That the Committee for Management of Public Capital Management Fund may specify separate interest rate for deposit received, taking into account the characteristics of the funds, etc. and soundness of the Management Fund.
(3) If money deposited by funds, etc. is repaid pursuant to a request for repayment under Article 15 before the expiration of the term of deposit, with respect to the amount for such early repayment, interest may be paid at a rate lower than that prescribed in paragraph (2), as prescribed by the Committee for Management of Public Capital Management Fund.
[This Article Wholly Amended by Act No. 10568, Apr. 8, 2011]
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 Article 8 (Management and Operation of Management Fund)   print
(1) The Management Fund shall be managed and operated by the Minister of Strategy and Finance.
(2) The Minister of Strategy and Finance may entrust administrative affairs for the management and operation of the Management Fund to the Governor of the Bank of Korea established under the Bank of Korea Act (hereinafter referred to as the "Bank of Korea"), as prescribed by Presidential Decree.
(3) When any surplus fund accrues in the course of operating the Management Fund, purchase securities, including State or municipal bonds, etc., the Minister of Strategy and Finance may deposit it in a financial institution or lend it to a financial institution.
(4) Necessary matters on the management and operation of the Management Fund or each account thereof other than those prescribed in paragraphs (1) through (3) shall be prescribed by Presidential Decree.
[This Article Wholly Amended by Act No. 10568, Apr. 8, 2011]
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 Article 9 (Plan for Managing Management Fund)   print
(1) The Minister of Strategy and Finance shall establish a plan for managing the Management Fund pursuant to Article 66 of the National Finance Act (hereinafter referred to as "plan for managing the Management Fund") for each fiscal year. <Amended by Act No. 5416, Dec. 13, 1997; Act No. 5696, Jan. 29, 1999; Act No. 8050, Oct. 4, 2006; Act No. 8852, Feb. 29, 2008; Act No. 10568, Apr. 8, 2011>
(2) When the Minister of Strategy and Finance establishes a plan for managing the Management Fund, he/she shall hear opinions from managers of funds, etc. and other related parties. <Amended by Act No. 5416, Dec. 13, 1997; Act No. 5696, Jan. 29, 1999; Act No. 8852, Feb. 29, 2008; Act No. 10568, Apr. 8, 2011>
(3) Deleted. <by Act No. 8135, Dec. 30, 2006>
(4) The Minister of Strategy and Finance may request that any manager of funds, etc. submit data related to the current status of the management of surplus funds, if necessary for establishing the plan for managing the Management Fund. <Amended by Act No. 5416, Dec. 13, 1997; Act No. 5696, Jan. 29, 1999; Act No. 8135, Dec. 30, 2006; Act No. 8852, Feb. 29, 2008; Act No. 10568, Apr. 8, 2011>
(5) Where the head of a central agency managing accounting or fund intends to receive a deposit from the Management Fund, he/she shall submit a request for deposit for the next fiscal year to the Minister of Strategy and Finance, by no later than May 31, each year. <Newly Inserted by Act No. 6079, Dec. 31, 1999; Act No. 8135, Dec. 30, 2006; Act No. 8852, Feb. 29, 2008; Act No. 10568, Apr. 8, 2011>
(6) The head of a central agency intending to execute a project by borrowing loans from the treasury loan account of the Management Fund shall file an application for loan for the next fiscal year with the Minister of Strategy and Finance by no later than March 31, each year. <Newly Inserted by Act No. 8135, Dec. 30, 2006; Act No. 8852, Feb. 29, 2008; Act No. 10568, Apr. 8, 2011>
(7) The Minister of Strategy and Finance shall reflect the contents of the application for loan filed pursuant to paragraph (6) to a management plan for treasury loan account under the plan for managing the Management Fund for the next fiscal year. <Amended by Act No. 8852, Feb. 29, 2008; Act No. 10568, Apr. 8, 2011>
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 Article 10 (Establishment of Committee for Management of Public Capital Management Fund)   print
(1) A Committee for Management of Public Capital Management Fund (hereinafter referred to as the "Committee") shall be established to deliberate or pass resolutions o the following matters for the purposes of the management and operation of the Management Fund:
1. Major policies on the management and operation of the Management Fund;
2. Establishment and amendments (applicable only to amendments to the amount of expenditure on the matters under Articles 3 (2) 1 and 4 and 4 (2) 1) of the plan for managing the Management Fund;
3. Statement of settlement of accounts of the Management Fund;
4. Determination of the interest rate and term of deposit received or deposit money or the changes thereon;
5. Determination of the interest rate and term of amount of loans or the changes therein;
6. Others referred by the Chairperson of the Committee as deemed necessary.
(2) The Committee shall be comprised of 15 members, including one Chairperson.
(3) The Minister of Strategy and Finance shall be the Chairperson and the following persons shall be its members:
1. The Minister of Education, Science and Technology;
2. The Minister of Public Administration and Security;
3. The Minister of Culture, Sports and Tourism;
4. The Minister for Food, Agriculture, Forestry and Fisheries;
5. The Minister of Knowledge Economy;
6. The Minister of Health and Welfare;
7. The Minister of Employment and Labor;
8. The Minister of Land, Transport and Maritime Affairs;
9. The Governor of the Bank of Korea;
10. Others commissioned by the head of a central administrative agency prescribed by Presidential Decree and the Chairperson.
(4) Except as otherwise provided in paragraphs (1) through (3), matters necessary for the composition and operation of the Committee shall be prescribed by Presidential Decree.
[This Article Wholly Amended by Act No. 10568, Apr. 8, 2011]
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 Article 11 Deleted.<by Act No. 8135, Dec. 30, 2006>   print
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 Article 12 (Establishment of Fund Account)   print
The Minister of Strategy and Finance shall establish the account for the Management Fund at the Bank of Korea to ensure transparency in revenues and expenditures of the Management Fund.
[This Article Wholly Amended by Act No. 10568, Apr. 8, 2011]
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 Article 13 (Accounting Authorities of Management Fund)   print
(1) The Minister of Strategy and Finance shall appoint a fund revenue collector, a fund treasurer, a fund disbursement officer, and a fund cashier-officer, from among officials under his/her control, to conduct administrative affairs related to revenues and expenditures of the Management Fund.
(2) When entrusting the Governor of the Bank of Korea with operation and management of the Management Fund pursuant to Article 8 (2), the Minister of Strategy and Finance may appoint a Deputy Governor in charge of revenues of the Fund and a Deputy Governor in charge of expenditures of the Fund from among the Deputy Governors of the Bank of Korea, and a fund disburser and a fund cashier from among employees of the Bank of Korea, respectively. In such cases, the Deputy Governor in charge of revenues of the Fund shall perform the duties of a fund revenue collector, the Deputy Governor in charge of expenditures of the Fund the duties of a fund treasurer, the fund disburser the duties of a fund disbursement officer, and the fund cashier the duties of a fund cashier-officer, respectively.
[This Article Wholly Amended by Act No. 10568, Apr. 8, 2011]
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 Article 14 (Treatment of Profit and Loss of Management Fund)   print
(1) Profits accrued as a result of the settlement of accounts of the Management Fund, if any, shall be accumulated in full.
(2) When losses are incurred from the settlement of accounts of the Management Fund, such losses shall be covered by the reserve under paragraph (1) and the Government may compensate for the losses from the general accounting, if the reserve falls short of the losses.
(3) Losses incurred from fulfilling the obligations by the Management Fund pursuant to Article 3 (2) 7 shall be accrued in the general accounting of the next fiscal year.
[This Article Wholly Amended by Act No. 10568, Apr. 8, 2011]
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 Article 15 (Request for Early Repayment of Funds Deposited by Funds, etc.)   print
When any unavoidable ground exists in the operation of the funds, etc., a manager of funds may request the repayment of the funds deposited to the Management Fund even before the expiration of the term of deposit. In such cases, the manager shall request the repayment to the Minister of Strategy and Finance by no later than 15 days prior to the date on which the repayment shall be made.
[This Article Wholly Amended by Act No. 10568, Apr. 8, 2011]
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 Article 16 (Temporary Borrowing of Management Fund)   print
(1) The Minister of Strategy and Finance may temporarily borrow funds at the expenses of the Management Fund, if necessary for the management of the Management Fund.
(2) Temporary borrowing under paragraph (1) shall be repaid within the relevant fiscal year.
[This Article Wholly Amended by Act No. 10568, Apr. 8, 2011]
ADDENDA
Article 1 (Enforcement Date)
This Act shall enter into force on January 1, 1994.
Article 2 (Transitional Measures on Deposit to Management Fund)
Funds corresponding to the deposit money appropriated to the revenue budget of special account on treasury investment and loan of the fiscal year 1994 among the funds, etc. under Article 5 and the surplus fund of the funds under Article 6 shall, notwithstanding the provisions of Articles 5 and 6, be deposited to the special account on treasury investment and loan. In such cases, the interest on the same deposit money shall be paid at the rate specified by this Act.
Article 3 (Special Cases concerning Establishment of Plan for Managing Management Fund)
The Minister of Treasury shall establish a plan for managing the Management Fund of the fiscal year 1994 subject to consultation with the Minister of Economy Planning Board within three months from the date on which this Act enters into force and then obtain the approval from the President, following deliberation by the State Council.
Article 4 (Special Cases concerning Creation of Management Fund)
(1) The Management Fund may receive the funds created through the issuance of bonds by a financial institution as resource, in order to induce non-real name assets under Article 5 of the Presidential Financial and Economic Emergency Order on Real Name Financial Transactions and Confidentiality.
(2) Funds deposited to the Management Fund pursuant to paragraph (1) shall be repaid at a time the maturity of the bonds issued for creating such funds arrives.
(3) Interest rates on the funds deposited to the Management Fund pursuant to paragraph (1) shall be prescribed by the Minister of Finance, notwithstanding the provisions of Article 7.
ADDENDA<Act No. 5170, Dec. 12, 1996>
Article 1 (Enforcement Date)
This Act shall enter into force on January 1, 1997.
Articles 2 through 6 Omitted.
ADDENDA<Act No. 5416, Dec. 13, 1997>
(1) (Enforcement Date) This Act shall enter into force on the date of its promulgation.
(2) (Special Cases concerning Bonds Issued by Korea Telecommunications Corporation) Bonds issued by the Korea Telecommunications Corporation, which is converted into a stock company under the Commercial Act in accordance with the repealed Korea Telecommunications Corporation Act shall be deemed State or municipal bonds until the ratio to stocks of the Korea Telecommunications Corporation held by the Government becomes not more than 50/100 of the total number of outstanding voting stocks for the first time after this Act enters into force.
ADDENDA<Act No. 5696, Jan. 29, 1999>
(1) (Enforcement Date) This Act shall enter into force on the date of its promulgation.
(2) (Special Cases concerning Compulsory Deposit of Surplus of National Pension Fund) The surplus fund of the National Pension Fund shall, notwithstanding the amended provisions of Article 5 (1) 1, be deposited to the Management Fund under Article 5 by not later than December 31, 2000. In such cases, the ratio of surplus funds deposited to the Management Fund to the surplus funds of the relevant year shall not exceed 65/100 in 1999 and 40/100 in 2000.
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. 6062, Dec, 28, 1999>
Article 1 (Enforcement Date)
This Act shall enter into force on March 1, 2000.
Articles 2 and Article 3 Omitted.
ADDENDA<Act No. 6079, Dec. 31, 1999>
(1) (Enforcement Date) This Act shall enter into force on April 1, 2000.
(2) (Relationship with other Acts and Subordinate Statutes) Any citation of the State Bond Management Fund under the former State Bond Act by other Acts and subordinate statutes as at the time this Act enters into force shall be deemed a citation of the Public Capital Management Fund under this Act.
ADDENDA<Act No. 6124, Jan. 12, 2000>
Article 1 (Enforcement Date)
This Act shall enter into force on the date of its promulgation.
Articles 2 through 6 Omitted.
ADDENDA<Act No. 6400, Jan. 29, 2001>
Article 1 (Enforcement Date)
This Act shall enter into force on the date of its promulgation. (Proviso Omitted.)
Articles 2 through 4 Omitted.
ADDENDA<Act No. 6836, Dec. 30, 2002>
Article 1 (Enforcement Date)
This Act shall enter into force on January 1, 2003.
Articles 2 through 7 Omitted.
ADDENDUM<Act No. 7028, Dec. 31, 2003>
This Act shall enter into force on January 1, 2004.
ADDENDA<Act No. 7347, Jan. 27, 2005>
Article 1 (Enforcement Date)
This Act shall enter into force on July 1, 2005.
Articles 2 through 4 Omitted.
ADDENDA<Act No. 8050, Oct. 4, 2006>
Article 1 (Enforcement Date)
This Act shall enter into force on January 1, 2007. (Proviso Omitted.)
Articles 2 through 12 Omitted.
ADDENDA<Act No. 8135, Dec. 30, 2006>
Article 1 (Enforcement Date)
This Act shall enter into force on January 1, 2007.
Article 2 (Repealed Act)
The Act on the Special Accounts for Treasury Loans is hereby repealed.
Article 3 (Transitional Measures on Settlement of Accounts)
(1) The settlement of accounts under the special accounts for treasury loans for the fiscal year 2006 shall be governed by the former Act on the Special Accounts for Treasury Loans.
(2) Surplus after the settlement of account of the fiscal year 2006 in the treasury loan account and loan account of the special accounts for treasury loans under the former Act on the Special Accounts for Treasury Loans shall be carried over to the treasury loan account and the loan account of the Management Fund of the next fiscal year, respectively.
Article 4 (Succession to Assets, etc.)
Assets and liabilities in the treasury loan account and the loan account in the special accounts for treasury loans under the former Act on the Special Accounts for Treasury Loans shall be inherited as a whole by the treasury loan account and the loan account of the Management Fund, respectively.
Article 5 (Transitional Measures on Compensation for Losses in Treasury Loan Account in Special Accounts for Treasury Loans)
Losses (referring to amounts calculated by subtracting liabilities in the treasury loan account from assets) in the treasury loan account in the special accounts for treasury loans under the existing Act on the Special Accounts for Treasury Loans shall, notwithstanding the provisions of Article 14 (2), be covered in the general accounting, taking into account the financial status.
Article 6 (Transitional Measures on Treasury Loans, etc.)
(1) Treasury loans or deposit under the former Act on the Special Accounts for Treasury Loans shall be deemed treasury loans or deposit under this Act.
(2) Interest rates on the amount of loans, deposit received and deposit money specified by the Minister of Finance and Economy subject to deliberation by the Deliberation Committee on Management of Treasury Funds under the former Act on the Special Accounts for Treasury Loans shall be deemed undergone deliberation and resolution by the Committee for Management of Public Capital Management Fund under the amended provisions of Article 10.
Article 7 (Transitional Measures on Fund Deposit Money)
(1) The Fund deposit money prior to this Act entering into force shall be deemed the deposit received under the amended provisions of Article 3 (1) 1.
(2) Re-deposit prior to this Act entering into force shall be deemed deposit under the amended provisions of Article 3 (1) 4.
Article 8 Omitted.
Article 9 (Relationship with other Acts and Subordinate Statutes)
Any citation of the former Act on the Special Accounts for Treasury Loans by other Acts and subordinate statutes as at the time this Act enters into force shall be deemed a citation of this Act or corresponding provisions hereof in lieu of the former provisions, if such corresponding provisions exists herein.
ADDENDA<Act No. 8852, February, 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.
ADDENDA<Act No. 9932, Jan. 18, 2010>
Article 1 (Enforcement Date)
This Act shall enter into force two months after the date of its promulgation. (Proviso Omitted.)
Articles 2 through 5 Omitted.
ADDENDA<Act No. 10339, Jun. 4, 2010>
Article 1 (Enforcement Date)
This Act shall enter into force one month after the date of its promulgation. (Proviso Omitted.)
Articles 2 through 5 Omitted.
ADDENDUM<Act No. 10568, Apr. 8, 2011>
This Act shall enter into force on the date of its promulgation.