Factory And Mining Assets Mortgage Act


Published: 2013-03-23

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CHAPTER I GENERAL PROVISIONS
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 Article 1 (Purpose)   print
The purpose of this Act is to devise plans for the preservation and sound development of enterprises, development of underground resources and growth of industries by properly regulating the structure of factory foundations or mining foundations, and the legal relationship of establishment, registration, etc. of mortgages over each foundation so that the owners of factories or mining rights holders may secure funds.
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 Article 2 (Definitions)   print
For the purposes of this Act, the definitions of the terms used in this Act shall be as follows:
1. The term "factory" means a place used for manufacturing, processing, printing, photographing, broadcasting or supplying electricity or gas for business purposes;
2. The term "factory foundation" means a pool of enterprise property comprised of specific business property which belongs to the factory and becomes the object of ownership and mortgage under this Act;
3. The term "mining foundation" means a pool of enterprise property comprised of all kinds of equipment to dig and collect minerals and of the equipment for businesses annexed thereto, which becomes the object of ownership and mortgage under this Act.
CHAPTER II FACTORY FOUNDATION
SECTION 1 Mortgage over Land and Building of Factory
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 Article 3 (Mortgage over Land of Factory)   print
A mortgage established by the owner of a factory over land belonging to the factory shall have effect on the things attached to the land, on the machinery and apparatus installed on the land, and on other preparations of the factory: Provided, That where there is a special agreement on the establishment of a mortgage, or the creditor can annul the debtor's acts under Article 406 of the Civil Act, this shall not apply.
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 Article 4 (Mortgage over Factory Building)   print
Article 3 shall apply mutatis mutandis to a mortgage established by the owner of a factory over a building belonging to the factory. In such cases, "land" shall be deemed "building".
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 Article 5 (Registration of Special Agreements)   print
When a registration officer registers establishment of a mortgage, and there is a special agreement under the proviso to Article 3 in the grounds for registration, he/she shall record items of such agreement therein.
[This Article Wholly Amended by Act No. 11297, Feb. 10, 2012]
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 Article 6 (List of Objects of Mortgage)   print
(1) If an application to register the establishment of a mortgage over land or a building belonging to a factory is to be filed, a list of machinery and apparatus installed on the land or in the building, and other preparations of the factory which are the objects of the mortgage in accordance with Articles 3 and 4 shall be submitted.
(2) Articles 36, 42 and 43 shall apply mutatis mutandis to the list referred to in paragraph (1). <Amended by Act No. 11297, Feb. 10, 2012>
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 Article 7 (Extension Effect of Mortgage)   print
Even if a thing which has become the object of a mortgage under Articles 3 and 4 is delivered to a third party, the mortgagee may exercise the mortgage thereover: Provided, That where the provisions of Articles 249 through 251 of the Civil Act are applied, this Article shall not apply.
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 Article 8 (Scope of Effect of Seizure, etc.)   print
(1) Seizure, provisional seizure or provisional disposition on land or a building, which is the object of a mortgage, shall have effect on the things which become the object of a mortgage in accordance with Articles 3 and 4.
(2) Nothing which becomes the object of a mortgage in accordance with Articles 3 and 4 shall be the object of seizure, provisional seizure, or provisional disposition unless together with the land or building concerned.
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 Article 9 (Separation of Objects of Mortgage)   print
(1) If the owner of a factory removes certain things attached to land or a building from such land or building, with the consent of the mortgagee, the mortgage over such things shall be extinguished.
(2) If the owner of a factory removes machinery, apparatus installed on land or in a building and other preparations of the factory with the consent of the mortgagee, the mortgage thereover shall be extinguished.
(3) If the owner of a factory requests for consent stipulated in paragraph (1) or (2) with justifiable grounds for the benefit of the mortgagee before seizure, provisional seizure or provisional disposition on the land, building or things which are the object of a mortgage as referred to in Article 3 or 4, the mortgagee shall not refuse to grant consent.
SECTION 2 Mortgages over Factory Foundations
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 Article 10 (Establishment of Factory Foundations)   print
(1) The owner of a factory may establish a factory foundation with one factory, or two or more factories, and may make them the object of a mortgage. The same shall apply where two or more factories belong to the factory foundation and the owner of each factory is different.
(2) The constituent element of a factory foundation shall not belong to another factory foundation at the same time.
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 Article 11 (Registration of Initial Ownership of Factory Foundation)   print
(1) A factory foundation shall be established by having registration of initial ownership made in the register of the factory foundation.
(2) Registration of initial ownership of a factory foundation under paragraph (1) shall cease to be effective unless the establishment of a mortgage is registered within ten months from the date of registration of initial ownership.
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 Article 12 (Unity, etc. of Factory Foundation)   print
(1) A factory foundation shall be deemed one piece of real property.
(2) No factory foundation shall become the object of any right other than ownership and mortgage: Provided, That where the mortgagee agrees, it may be the object of lease.
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 Article 13 (Constituent Elements of Factory Foundations)   print
(1) What constitutes a factory foundation fully or partially shall be enumerated as follows: <Amended by Act No. 10629, May 19, 2011>
1. Land, buildings and other structures belonging to a factory;
2. Machinery, apparatus, electric poles, electric wires, installed pipes, rails and other appurtenances;
3. Movables that may be registered at a registration office or an administrative agency, such as aircraft, vessels, automobiles, etc.;
4. Superficies and rights of lease on a deposit basis;
5. Rights of lease where a lessor grants consent;
6. Intellectual property rights.
(2) If any land or building belonging to a factory has not been registered, registration of initial ownership thereof shall be made before a factory foundation is established.
(3) Neither of the following may constitute a factory foundation:
1. Object of any right of a third party;
2. Object of seizure, provisional seizure or provisional disposition.
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 Article 14 (Prohibition of Transfer, etc. of Constituent Elements of Factory Foundations)   print
No constituent elements of a factory foundation shall be transferred after being separated from the factory foundation, nor shall they become the object of any right other than ownership, seizure, provisional seizure, or provisional disposition: Provided, That where the mortgagee agrees, they may become the object of lease.
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 Article 15 (Prohibition of Transfer, etc. of Prearranged Constituent Elements of Factory Foundation)   print
(1) Neither of those registered and prearranged to constitute a factory foundation may be transferred nor become the object of any right other than ownership, after the fact has been recorded in the register that an application for registration of initial ownership of the factory foundation under Article 32 (1) was filed. <Amended by Act No. 11297, Feb. 10, 2012>
(2) No movables prearranged to constitute a factory foundation may be transferred after the report of any right under Article 33 (1) was announced publicly, nor may become the object of any right other than ownership.
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 Article 16 (Deferment of Decision on Permission for Sale)   print
(1) No decision may be made on permission for sale of those registered and prearranged to constitute a factory foundation, as long as an application for registration of initial ownership of the factory foundation is not dismissed or such registration of initial ownership does not cease to be effective, after the fact has been recorded in the register that an application for registration of initial ownership of the foundation under Article 32 (1) was filed. <Amended by Act No. 11297, Feb. 10, 2012>
(2) The provision of paragraph (1) shall apply mutatis mutandis to movables prearranged to constitute a factory foundation where the movables have been seized after the report of any right under Article 33 (1) was announced publicly.
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 Article 17 (Effect of Registration of Seizure, etc. after Application for Indefeasible Registration)   print
(1) As for those registered and prearranged to constitute a factory foundation, registration of seizure, provisional seizure or provisional disposition made after the fact has been recorded in the register that an application for registration of initial ownership of the factory foundation under Article 32 (1) was filed shall lose its effect if the establishment of a mortgage over the factory foundation is registered. <Amended by Act No. 11297, Feb. 10, 2012>
(2) If a registration of seizure, provisional seizure or provisional disposition loses its effect as prescribed in paragraph (1), the court shall revoke such seizure, provisional seizure or order of provisional disposition at the request of interested parties or ex officio.
(3) As for movables prearranged to constitute a factory foundation, the seizure, provisional seizure or provisional disposition made after the report of any right under Article 33 (1) was announced publicly shall lose its effect if the establishment of a mortgage over the factory foundation is registered.
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 Article 18 (Division and Merger of Factory Foundations)   print
(1) The owner of factories may divide one factory foundation which is established over several factories into several factory foundations: Provided, That only where the mortgagee of a factory foundation has consented, may the factory foundation which is the object of mortgage be divided.
(2) The owner of factories may have several factory foundations merged with each other to form one factory foundation: Provided, That one factory foundation may not be formed in either of the following cases: <Amended by Act No. 11297, Feb. 10, 2012>
1. Where registration other than the registration of ownership or mortgage has been included in the registration record of the factory foundation proposed for merger;
2. Where a mortgage has been already established over two or more factory foundations from among those proposed for merger.
(3) Division under paragraph (1) or merger under paragraph (2) shall take effect after registering.
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 Article 19 (Effect of Division and Merger)   print
(1) Where a factory foundation over which a mortgage has been established is divided and part of it is made into another factory foundation, the mortgage over such factory foundation shall be extinguished.
(2) Where several factory foundations merge, the mortgage over a factory foundation preceding the merger shall have effect on the whole of the factory foundation after merger.
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 Article 20 (Separation of Constituent Elements of Factory Foundations)   print
(1) Where the owner of a factory separates a constituent element of a factory foundation from the factory foundation with the consent of the mortgagee, the mortgage over such separated constituent element shall be extinguished.
(2) Article 9 (3) shall apply mutatis mutandis to the cases of paragraph (1).
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 Article 21 (Extinguishment of Factory Foundations)   print
A factory foundation shall be extinguished where it falls under any of the following subparagraphs:
1. Where a new mortgage is not established within ten months after the mortgage established over the factory foundation is extinguished;
2. Where registration of extinguishment under Article 48 has been complete.
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 Article 22 (Jurisdiction over Seizure, etc. of Factory Foundations)   print
(1) Seizure, provisional seizure or provisional disposition of a factory foundation shall be subject to the jurisdiction of the district court or branch court in which such factory is located.
(2) Article 28 of the Civil Procedure Act shall apply mutatis mutandis to cases where a factory is located in an area under the jurisdiction of several district courts or branch courts, or where several factories constituting a factory foundation are located in the jurisdiction of several district courts or branch courts.
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 Article 23 (Individual Auctions and Bidding of Factories)   print
Where a factory foundation is comprised of several factories, the court may order that each factory constituting the factory foundation be made the object of auction or bidding individually at the request of the mortgagee.
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 Article 24 (Provisions to be Applied Mutatis Mutandis)   print
(1) Where land or a building belongs to a factory foundation over which a mortgage is established, Articles 3 and 4 of this Act, and Articles 359, 365 and 366 of the Civil Act shall apply mutatis mutandis thereto.
(2) Where a land benefiting easement belongs to a factory foundation over which a mortgage is established, Article 292 of the Civil Act shall apply mutatis mutandis thereto.
(3) Where superficies or rights of a lease on a deposit basis belong to a factory foundation over which mortgage is established, Article 371 (2) of the Civil Act shall apply mutatis mutandis thereto.
SECTION 3 Registration of Factory Foundations
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 Article 25 (Competent Registration Office)   print
(1) As for the registration of factory foundations, the district court, branch court or registration office (hereinafter referred to as "registration office") in which the factory is located shall be the competent registration office.
(2) Where a factory is located in the jurisdiction of several registration offices, or where the several factories constituting a factory foundation are located in the jurisdiction of several registration offices, the head of the immediately higher court which has jurisdiction over the registration offices shall designate a competent registration office upon request.
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 Article 26 (Change in Jurisdiction following Division of Factory Foundation)   print
Where a factory foundation newly established through the division of a factory foundation has no factory in the jurisdiction of a registration office, the registration office shall take measures necessary to transfer, by using the electronic data processing system, its authority over the registration record to a registration office which has jurisdiction over the factory foundation in accordance with Article 25 without delay after registering the division. <Amended by Act No. 11297, Feb. 10, 2012>
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 Article 27 (Merger of Factory Foundations and Competent Registration Office)   print
(1) Where several registration offices exercise jurisdiction over a factory foundation proposed for merger, Article 25 (2) shall apply mutatis mutandis thereto: Provided, That where any factory foundation in which the establishment of mortgage has already been registered exists from among those proposed for merger, a registration office which has jurisdiction over the registration of such factory foundation shall be the competent registration office.
(2) In cases falling under paragraph (1), the competent registration office shall, upon receipt of an application for merger registration, give notice of the purport to other registration offices.
(3) A registration office shall, upon receipt of notice under paragraph (2), without delay take measures necessary to transfer its authority over the registration record on the factory foundation proposed for merger to the competent registration office by using the electronic data processing system: Provided, That this shall not apply where registration other than registration of ownership has been entered in the registration record, but notice of such fact shall be given to the competent registration office without delay. <Amended by Act No. 11297, Feb. 10, 2012>
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 Article 28 (Realfolium)   print
In formulating a factory foundation register, one registration record shall be assigned for each factory foundation.
[This Article Wholly Amended by Act No. 11297, Feb. 10, 2012]
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 Article 29 (Formulation of Registration Record)   print
Each registration record shall be comprised of the title page for recording matters marked about a factory foundation, Section A for recording ownership-related matters, and Section B for recording mortgage-related matters.
[This Article Wholly Amended by Act No. 11297, Feb. 10, 2012]
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 Article 30 (Matters to be Registered in Title Page)   print
A registration officer shall record each of the following matters in the title page of the registration record for a factory foundation:
1. Indication number;
2. Date of application receipt;
3. Name of factory;
4. Location of factory;
5. Principal place of business;
6. Type of business;
7. Name of the factory owner. This shall apply only where a factory foundation is comprised of two or more factories and the owner of each factory differs;
8. Serial number of the list of a factory foundation;
9. Serial number of the floor plan of a factory.
[This Article Wholly Amended by Act No. 11297, Feb. 10, 2012]
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 Article 31 Deleted. <by Act No. 11297, Feb. 10, 2012>   print
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 Article 32 (Application for Registration of Initial Ownership of Factory Foundation)   print
(1) Upon receipt of an application for registration of initial ownership of a factory foundation, a registration officer shall record ex officio in the relevant section of the registration record, concerning the established registration of constituent elements prearranged for the factory foundation, the fact that an application for registration of initial ownership of the foundation which is to belong to the factory foundation has been filed, along with the date of receipt and the receipt number. <Amended by Act No. 11297, Feb. 10, 2012>
(2) Where matters to be recorded as prescribed in paragraph (1) fall under the jurisdiction of another registration office, such matters shall be notified without delay to the competent registration office. <Amended by Act No. 11297, Feb. 10, 2012>
(3) Upon receipt of notice given as prescribed in paragraph (2), the competent registration office shall record items as prescribed in paragraph (1) and send a certificate of register entries thereof to the registration office which has given notice as prescribed in paragraph (2). In such cases, matters relating to cancellation shall not be recorded in the certificate of register entries. <Amended by Act No. 11297, Feb. 10, 2012>
(4) Paragraphs (1) through (3) shall apply mutatis mutandis where an intellectual property right belongs to a factory foundation: Provided, That notice under paragraph (2) shall be given to the Korean Intellectual Property Office. <Amended by Act No. 10629, May 19, 2011>
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 Article 33 (Reporting of Rights by Interested Parties)   print
(1) When a registration officer receives an application for registration of initial ownership of a factory foundation, he/she shall make announcement in the official gazette that those who have a right to the movables proposed to belong to the factory foundation, or the creditors of seizure, provisional seizure or provisional disposition, report their right within a certain period. In such cases, the period of reporting of rights shall be not less than one month but not more than three months.
(2) When an application for registration of initial ownership of a factory foundation is dismissed before the period of reporting of rights under paragraph (1) ends, a registration officer shall cancel the announcement in paragraph (1) without delay.
(3) If no report of rights is made within the period of reporting of rights under paragraph (1), the rights shall be deemed as nonexistent, and seizure, provisional seizure or provisional disposition shall lose its effect: Provided, That where the application for registration of initial ownership of a factory foundation is dismissed or such registration of initial ownership of a factory foundation loses its effect, the foregoing shall not apply.
(4) If any person has reported, within the period of reporting of rights under paragraph (1), that he/she has a right, a registration officer shall notify the fact to the applicant for registration of initial ownership.
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 Article 34 (Dismissal of Application for Indefeasible Registration of Ownership)   print
(1) An application for registration of initial ownership of a factory foundation shall also be dismissed in any of the following cases in addition to those prescribed in Article 29 of the Registration of Real Estate Act: <Amended by Act No. 11297, Feb. 10, 2012>
1. Where it is clear from the registration record, the certificate of register entries, or any certified copy of the original folio on the record that any property which is to belong to a factory foundation is the object of right of a third party or of seizure, provisional seizure or provisional disposition;
2. Where any entries made in the list of a factory foundation are inconsistent with the registration record, the certificate of register entries, or any certified copy of the original folio on the record;
3. Where those who have a right to the movables which are to belong to the factory foundation, or the creditors of seizure, provisional seizure or provisional disposition, report their right, and such report of right is not revoked within one week after the period for the report of rights under Article 33 (1) ends or it is not verified that the report of right is groundless.
(2) Where a registration officer has dismissed an application for registration of initial ownership of a factory foundation, any record created in accordance with Article 32 (1) shall be deleted. <Amended by Act No. 11297, Feb. 10, 2012>
(3) In cases falling under paragraph (2), a registration office which notified other registration offices or the Korean Intellectual Property Office that an application for registration of initial ownership of a factory foundation has been filed shall notify without delay the fact that the application has been dismissed.
(4) A registration office or the Korean Intellectual Property Office shall, upon receipt of notice under paragraph (3), delete the record under Article 32 (3) and (4). <Amended by Act No. 11297, Feb. 10, 2012>
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 Article 35 (Registration on Belonging to Factory Foundation)   print
(1) When a registration officer makes registration of initial ownership of a factory foundation, he/she shall record in the relevant section of the registration record on the constituent elements of the factory foundation the fact that they belong to the factory foundation. <Amended by Act No. 11297, Feb. 10, 2012>
(2) Article 32 (2) through (4) shall apply mutatis mutandis to cases falling under paragraph (1): Provided, That a certificate of register entries or any certified copy of the original folio on the record need not be sent. <Amended by Act No. 11297, Feb. 10, 2012>
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 Article 36 (Effect of List of Factory Foundation)   print
Once registration of initial ownership of a factory foundation is made, the list of a factory foundation shall be deemed part of the register, and the entries recorded therein shall be deemed to have been registered. <Amended by Act No. 11297, Feb. 10, 2012>
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 Article 37 Deleted. <by Act No. 11297, Feb. 10, 2012>   print
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 Article 38 Deleted. <by Act No. 11297, Feb. 10, 2012>   print
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 Article 39 Deleted. <by Act No. 11297, Feb. 10, 2012>   print
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 Article 40 (Dismissal of Establishment Registration of Mortgage)   print
Applications for registration of establishment of mortgage over a factory foundation shall be dismissed when the period under Article 11 (2) ends other than cases prescribed in Article 29 of the Registration of Real Estate Act. <Amended by Act No. 11297, Feb. 10, 2012>
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 Article 41 (Measures following Registration of Establishment of Mortgage)   print
(1) Where a registration officer has registered the establishment of mortgage over a factory foundation, any registration which ceases to be effective in accordance with Article 17 (1) shall be deleted.
(2) Article 32 (2) through (4) shall apply mutatis mutandis to cases falling under paragraph (1): Provided, That a certificate of register entries or any certified copy of the original folio on the record need not be sent. <Amended by Act No. 11297, Feb. 10, 2012>
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 Article 42 (Application for Registration for Alteration)   print
(1) If any alterations are made to those recorded in the list of a factory foundation, the owner shall, without delay, apply for registration for alteration to the list of a factory foundation. <Amended by Act No. 11297, Feb. 10, 2012>
(2) When applying for registration for alteration in accordance with paragraph (1), a mortgagee’s consent thereto shall be made. <Amended by Act No. 11297, Feb. 10, 2012>
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 Article 43 (Registration for Alteration and Change in Jurisdiction)   print
When registration for alteration is made under Article 42 (1), Article 26 shall apply mutatis mutandis where a factory constituting a factory foundation has ceased to be located in the jurisdiction of the registration office.
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 Article 44 Deleted. <by Act No. 11297, Feb. 10, 2012>   print
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 Article 45 Deleted. <by Act No. 11297, Feb. 10, 2012>   print
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 Article 46 (Registration for Alteration, Prohibition of Disposal, etc.)   print
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 Article 47 (Registration for Alteration, Destruction of Constituent Elements of Factory Foundation, etc.)   print
(1) Where an application for registration for alteration has been filed because an item registered as one of the constituent elements of a factory foundation was destroyed or ceased to belong to the foundation, a registration officer shall record such fact in the relevant section of its registration record and delete those recorded pursuant to Articles 32 and 35. <Amended by Act No. 11297, Feb. 10, 2012>
(2) Where an item to be recorded under paragraph (1) falls under the jurisdiction of another registration office, notice of its destruction or of the fact that it has ceased to belong to the foundation shall be given to the competent registration office without delay. <Amended by Act No. 11297, Feb. 10, 2012>
(3) The registration office shall, upon receipt of notice under paragraph (2), insert or delete the record as prescribed in paragraph (1). <Amended by Act No. 11297, Feb. 10, 2012>
(4) Paragraphs (1) through (3) shall apply mutatis mutandis where intellectual property rights belonging to a factory foundation have lapsed or have ceased to belong to the factory foundation. In such cases, notice under paragraph (2) shall be given to the Korean Intellectual Property Office. <Amended by Act No. 10629, May 19, 2011>
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 Article 48 (Registration of Extinguishment of Factory Foundation)   print
Where a mortgage established over a factory foundation lapses, the owner may apply for registration of extinguishment of the factory foundation: Provided, That the foregoing shall not apply where any registration other than registration of ownership exists in the registration record of such factory foundation. <Amended by Act No. 11297, Feb. 10, 2012>
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 Article 49 (Entrusting Registration of Extinguishment due to Auction)   print
Where registration is to be entrusted in accordance with Article 144 of the Civil Execution Act, if a mortgage over a factory foundation lapses after an auction, the court shall concurrently entrust the competent registration office or the Korean Intellectual Property Office with the deletion of the entries recorded pursuant to Articles 32 and 35 regarding the constituent elements of a factory foundation, and with the affair of registering the rights obtained by a successful bidder. <Amended by Act No. 11297, Feb. 10, 2012>
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 Article 50 (Closure of Registration Record of Factory Foundation)   print
(1) The registration record of a factory foundation shall be closed, when registration of initial ownership of the factory foundation ceases to be effective, or the factory foundation lapses in accordance with Article 21. <Amended by Act No. 11297, Feb. 10, 2012>
(2) Article 47 shall apply mutatis mutandis to cases falling under paragraph (1).
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 Article 51 (Application Mutatis Mutandis of the Registration of Real Estate Act)   print
The Registration of Real Estate Act shall apply mutatis mutandis to registration of factory foundations, except as prescribed otherwise in this Act or Article 24 (1) 2 of the Registration of Real Estate Act. <Amended by Act No. 11297, Feb. 10, 2012>
CHAPTER III MINING FOUNDATIONS
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 Article 52 (Establishment of Mining Foundations)   print
A mining rights holder may establish a mining foundation and may have it the object of a mortgage.
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 Article 53 (Composition of Mining Foundation)   print
A mining foundation may be comprised of mining rights and all or part of those enumerated as follows, which belong to the identical mining rights holder in relation to the mining industry: <Amended by Act No. 10629, May 19, 2011>
1. Land, buildings and other structures;
2. Machinery, apparatus, and other appurtenances;
3. Movables that may be registered at a registration office or an administrative agency, such as aircraft, vessels, automobiles, etc.;
4. Superficies or other rights to use land;
5. Rights of lease where the lessor consents;
6. Intellectual property rights.
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 Article 53-2 (Matters to be Entered in Title Page)   print
A registration officer shall record each of the following matters in the title page of the registration record for a mining foundation:
1. Indication number;
2. Date of application receipt;
3. Location of mining lots;
4. Size of mining lots;
5. Name of minerals;
6. Registration number of a mining right;
7. Place of an office for a mining business;
8. Serial number of the list of a mining foundation;
9. Serial number of a floor plan.
[This Article Newly Inserted by Act No. 11297, Feb. 10, 2012]
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 Article 54 (Application Mutatis Mutandis of Provisions concerning Factory Foundations)   print
Provisions concerning factory foundations in Chapter II shall apply mutatis mutandis to mining foundations, unless otherwise expressly prescribed in this Chapter. In such cases, "factory foundation" shall be deemed "mining foundation". <Amended by Act No. 11297, Feb. 10, 2012>
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 Article 55 (Revocation of Mining Rights and Mortgages)   print
(1) When the Minister of Trade, Industry and Energy registers a revocation of mining rights under the Mining Industry Act, he/she shall notify the mortgagee thereof without delay. <Amended by Act No. 11690, Mar. 23, 2013>
(2) When the mortgagee is notified as prescribed in paragraph (1), he/she may exercise the right immediately. In such cases, he/she shall take such steps within six months from the receipt of such notification.
(3) The mining right shall be deemed to exist within the extent of the objective of exercise of mortgage until the applicable deadline in the following subparagraphs:
1. By the time six months pass from the date of receipt of such notification of revocation of mining rights in paragraph (1);
2. By the time the exercise of mortgage is finished.
(4) Mining rights a purchaser has acquired in accordance with the exercise of rights under paragraph (2) shall be deemed to have been acquired on the date of registration of a revocation of mining rights.
(5) The provisions under paragraphs (1) through (4) shall not apply to the revocation of mining rights on the grounds of public interest under Article 34 of the Mining Industry Act.
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 Article 56 (Business Closure of Mining Rights Holders and Mortgages)   print
Where a mining rights holder closes down a mining business, Article 55 shall apply mutatis mutandis.
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 Article 57 (Participation in Auction by Unincorporated Juristic Person)   print
(1) Where a person who intends to incorporate a juristic person in accordance with the Acts of the Republic of Korea, which aims at a mining right being the object of auction participates in the auction, he/she shall report to the executing court the purport simultaneously with the application for auction.
(2) Any person who participates in the auction prescribed in paragraph (1) shall be jointly responsible for the application for auction.
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 Article 58 (Procedures where Unincorporated Juristic Person is Purchaser)   print
(1) Any person who participated in an auction under Article 57 (1) and has purchased a mining foundation at such auction (hereinafter referred to as "purchaser") shall incorporate a juristic person within three months after a decision of permission for sale becomes final, and shall report it to the executing court.
(2) The purchaser shall pay the purchase price into the executing court within one week from the date of incorporation of a juristic person: Provided, That where the purchaser in paragraph (1) is a creditor, he/she shall pay the balance calculated after subtracting the amount of claim from sale proceeds.
(3) The juristic person incorporated by the purchaser shall obtain the ownership of the mining foundation which is the object of auction when it pays the purchase price as prescribed in paragraph (2).
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 Article 59 (Reauction)   print
(1) If a purchaser fails to report the incorporation of a juristic person within the period in Article 58 (1) or fails to pay the purchase price within the period in paragraph (2) of the same Article, the executing court shall order reauction of the mining foundation ex officio.
(2) Article 138 of the Civil Execution Act shall apply mutatis mutandis to reauctions under paragraph (1).
CHAPTER IV PENALTY PROVISIONS
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 Article 60 (Penalty Provisions on Disposal of Objects)   print
(1) Where the owner of a factory or a mining rights holder has transferred any movables constituting the factory foundation or mining foundation which is subject to a mortgage under this Act, or has delivered them to any third party for the purpose of establishing a right of pledge, he/she shall be punished by imprisonment with labor for not more than three years or by a fine not exceeding ten million won.
(2) If the representative of a juristic person, or an agent, employee or worker of a juristic person or individual commits any violation under paragraph (1) in connection with the business of such juristic person or individual, not only shall the violator be punished, but the juristic person or individual shall be punished by a fine prescribed in the relevant Article: Provided, That where the juristic person or individual has not been negligent in giving due attention and supervision regarding the relevant business in order to prevent violation, this shall not apply.
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 Article 61 (Complaints)   print
The crime under Article 60 shall only be prosecuted on the complaint of a complainant.
ADDENDA
Article 1 (Enforcement Date)
This Act shall enter into force on the date of its promulgation.
Article 2 (Repeal of other Acts)
The Mining Foundation Mortgage Act shall be repealed.
Article 3 (Transitional Measures)
(1) Factory foundations, mining foundations and other matters under the former Factory Mortgage Act and the former Mining Foundation Mortgage Act at the time when this Act enters into force shall be deemed as existing pursuant to this Act.
(2) When penalty provisions are applied to a violation of the former Factory Mortgage Act and the former Mining Foundation Mortgage Act before this Act enters into force, the Factory Mortgage Act and the former Mining Foundation Mortgage Act shall govern.
Article 4 (Relationship to other Statutes)
Where the former Factory Mortgage Act, the former Mining Foundation Mortgage Act or any provision thereof is cited in other statutes at the time when this Act enters into force, this Act or the relevant provisions of this Act shall be deemed to have been cited in place of the former provision if such provisions corresponding thereto exists in this Act.
ADDENDA <Act No. 10629, May 19, 2011>
Article 1 (Enforcement Date)
This Act shall enter into force two months after the date of its promulgation. (Proviso Omitted.)
Article 2 Omitted.
ADDENDUM <Act No. 11297, Feb. 10, 2012>
This Act shall enter into force six months after the date of its promulgation.
ADDENDA <Act No. 11690, Mar. 23, 2013>
Article 1 (Enforcement Date)
(1) This Act shall enter into force on the date of its promulgation.
(2) Omitted.
Articles 2 through 7 Omitted.