Korea Foundation Act


Published: 2009-12-30

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 Article 1 (Purpose)   print
The purpose of this Act is to contribute to encouraging a better understanding of Korea and to promoting international friendship in the international community, by establishing the Korea Foundation to carry out various projects for exchange between the Republic of Korea and foreign countries.
[This Article Wholly Amended by Act No. 9878, Dec. 30, 2009]
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 Article 2 (Juristic Personality)   print
The Korea Foundation (hereinafter referred to as the "Foundation") shall be a juristic person.
[This Article Wholly Amended by Act No. 9878, Dec. 30, 2009]
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 Article 3 (Incorporation)   print
(1) The Foundation shall come into existence by making a registration of incorporation at the seat of its principal office.
(2) Matters to be included in the registration of incorporation under paragraph (1) shall be as follows:
1. Object;
2. Title;
3. Principal office;
4. Names and addresses of executives;
5. Methods of public notices.
(3) With respect to registrations other than the registration of incorporation, the provisions of the Civil Act concerning the registration of an incorporated foundation shall apply mutatis mutandis.
[This Article Wholly Amended by Act No. 9878, Dec. 30, 2009]
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 Article 4 (Office)   print
(1) The seat of the principal office of the Foundation shall be determined by the articles of association.
(2) The Foundation may, if necessary, establish branches in Korea and foreign countries with the approval from the Minister of Foreign Affairs and Trade.
[This Article Wholly Amended by Act No. 9878, Dec. 30, 2009]
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 Article 5 (Articles of Association)   print
(1) The articles of association of the Foundation shall include the following matters:
1. Object;
2. Title;
3. Matters concerning the principal office and branches;
4. Matters concerning projects;
5. Matters concerning the International Exchange Fund;
6. Matters concerning the property and accounting;
7. Matters concerning executives and employees;
8. Matters concerning the board of directors;
9. Matters concerning the amendment to the articles of association;
10. Matters concerning the public notice.
(2) If the Foundation intends to amend the articles of association, it shall obtain the authorization from the Minister of Foreign Affairs and Trade.
[This Article Wholly Amended by Act No. 9878, Dec. 30, 2009]
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 Article 6 (Projects)   print
(1) The Foundation shall carry out the following projects in order to achieve the purposes of this Act:
1. Hosting, supporting and participating in various events for international exchanges;
2. Dispatching and inviting the persons for international exchanges;
3. Supporting overseas research on Korea and disseminating the research results;
4. Promoting a better understanding of Korea in the international community;
5. Promoting international goodwill and friendship through exchanges and cooperations with major international exchange institutions of foreign countries;
6. Supporting the activities of the organizations related with the Korean residents abroad in order to enhance the status of Korea in the international community and to arouse national consciousness;
7. Other projects necessary for achieving the purposes of this Act;
8. Projects incidental to those referred to in subparagraphs 1 through 7.
(2) The Foundation may, with the approval by the Minister of Foreign Affairs and Trade, implement any profit-making project necessary for attaining the purpose prescribed in Article 1 in addition to those referred to in paragraph (1).
[This Article Wholly Amended by Act No. 9878, Dec. 30, 2009]
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 Article 7 (Executives)   print
(1) The Foundation shall have not more than nine directors including a chairperson, and an auditor.
(2) Executives other than the chairperson and full-time directors prescribed by the articles of association, shall work part-time.
(3) The chairperson shall be appointed by the President upon the proposal by the Minister of Foreign Affairs and Trade.
(4) Directors shall be appointed by the Minister of Foreign Affairs and Trade on the recommendation by the chairperson.
(5) The auditor shall be appointed by the Minister of Foreign Affairs and Trade.
(6) The term of office of the chairperson and directors shall be three years, and that of the auditor, two years, but it is renewable only once.
[This Article Wholly Amended by Act No. 9878, Dec. 30, 2009]
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 Article 8 (Disqualification for Executives)   print
Any person who falls under any of the following subparagraphs shall not be appointed as an executive of the Foundation:
1. A person who is not a national of the Republic of Korea;
2. A minor;
3. An incompetent or quasi-incompetent person;
4. A person who was declared bankrupt and is not yet reinstated;
5. A person who was sentenced to imprisonment without prison labor or more severe punishment, and for whom three years have not passed after the execution of such sentence is terminated, or non-execution becomes definite;
6. A person who is disqualified, or whose qualification is suspended, pursuant to a judgment of the court or under other Acts.
[This Article Wholly Amended by Act No. 9878, Dec. 30, 2009]
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 Article 9 (Duties of Executives)   print
(1) The chairperson shall represent the Foundation, take charge of general affairs, and direct and control the employees.
(2) Full-time directors shall take partial charge of affairs of the Foundation as prescribed by the articles of association and, if the chairperson is not able to perform his/her duties due to any inevitable grounds, full-time directors shall act on the behalf of the chairperson in such order prescribed by the articles of association.
(3) The auditor shall superintend and audit operations and accounts of the Foundation.
[This Article Wholly Amended by Act No. 9878, Dec. 30, 2009]
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 Article 10 (Restriction on Holding of Concurrent Positions by Executives and Employees)   print
(1) Any executive (excluding part-time directors and the auditor; hereafter the same shall apply in this Article) or employee of the Foundation shall not engage in any profit-making activity other than their duties.
(2) Any executive of the Foundation shall not hold concurrently other positions without permission of the Minister of Foreign Affairs and Trade, and employees shall not do so without permission of the chairperson.
[This Article Wholly Amended by Act No. 9878, Dec. 30, 2009]
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 Article 11 (Board of Directors)   print
(1) In order to deliberate and decide important matters pertaining to its activities, the Foundation shall have the board of directors.
(2) The board of directors shall be composed of directors.
(3) The chairperson shall convene and preside over meetings of the board of directors.
(4) The auditor may attend the board of directors and state his/her opinion.
[This Article Wholly Amended by Act No. 9878, Dec. 30, 2009]
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 Article 12 (Appointment and Dismissal of Employees)   print
Any employee of the Foundation shall be appointed and dismissed by the chairperson as prescribed by the articles of association.
[This Article Wholly Amended by Act No. 9878, Dec. 30, 2009]
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 Article 13 (Creation and Operation of Fund)   print
(1) Fund for International Exchanges (hereinafter referred to as the "Fund") shall be established at the Foundation to be appropriated to the funds necessary for the operation of the Foundation and its projects.
(2) The Fund shall be operated and managed by the Foundation.
(3) The Foundation may, with a part of the Fund, make a contribution to or subsidize a project of the Overseas Koreans Foundation under the Overseas Koreans Foundation Act.
(4) Matters necessary for the operation and management of the Fund shall be prescribed by Presidential Decree.
[This Article Wholly Amended by Act No. 9878, Dec. 30, 2009]
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 Article 14 (Financial Resources of Fund)   print
The financial resources of the Fund shall be as follows:
1. Contributions and endowments of the Government or others;
2. International exchange endowments prescribed in Article 16;
3. Borrowed money prescribed in Article 18;
4. Proceeds accruing from the operation of the Fund;
5. Other revenue.
[This Article Wholly Amended by Act No. 9878, Dec. 30, 2009]
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 Article 15 (Contributions)   print
(1) In order to meet expenses incurred in the establishment and operation of the Foundation and the Fund, the Government may grant contributions to the Foundation within budget limits.
(2) Matters necessary for the grant, use, etc. of contributions referred to in paragraph (1) shall be determined by Presidential Decree.
[This Article Wholly Amended by Act No. 9878, Dec. 30, 2009]
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 Article 16 (Fund-Raising)   print
(1) The Foundation may, if necessary to raise its funds, receive international exchange endowments from persons who are eligible for the issuance of passports, etc. pursuant to the Passport Act, with the approval by the Minister of Foreign Affairs and Trade, notwithstanding the Act on the Collection and Use of Donations.
(2) The limit of funds to be raised under paragraph (1) shall be up to fifteen thousand won and necessary matters concerning the subject matters, amount, etc. of fund-raising shall be prescribed by Presidential Decree.
[This Article Wholly Amended by Act No. 9878, Dec. 30, 2009]
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 Article 17 (Gratuitous Lending, etc. of National Property, etc.)   print
If it is necessary for the establishment and operation of the Foundation, the Government may, without consideration, lend any state property to the Foundation or allow the Foundation to use it or to make any profit from it.
[This Article Wholly Amended by Act No. 9878, Dec. 30, 2009]
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 Article 18 (Borrowing of Funds)   print
(1) The Foundation may borrow money needed for projects prescribed in Article 6 (including borrowing of funds from international organizations, foreign governments or foreigners).
(2) If the Foundation intends to borrow money under paragraph (1), it shall obtain approval thereof from the Minister of Foreign Affairs and Trade.
[This Article Wholly Amended by Act No. 9878, Dec. 30, 2009]
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 Article 19 (Business Year)   print
The business year of the Foundation shall coincide with the fiscal year of the Government.
[This Article Wholly Amended by Act No. 9878, Dec. 30, 2009]
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 Article 20 (Approval of Business Plan and Draft Budget)   print
The Foundation shall prepare the business plan and draft budget for each business year as prescribed by Presidential Decree, and obtain approval thereof from the Minister of Foreign Affairs and Trade. The same shall also apply where the Foundation intends to modify them.
[This Article Wholly Amended by Act No. 9878, Dec. 30, 2009]
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 Article 21 (Submission of Financial Statement)   print
The Foundation shall prepare a statement of revenue and expenditure accounts for each business year, and submit it to the Minister of Foreign Affairs and Trade by not later than the end of February in the following business year.
[This Article Wholly Amended by Act No. 9878, Dec. 30, 2009]
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 Article 22 (Confidentiality)   print
No person who is or was an executive or employee of the Foundation, shall divulge any confidential information which he/she has become aware of in the course of performing his/her duties.
[This Article Wholly Amended by Act No. 9878, Dec. 30, 2009]
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 Article 23 (Prohibition of Use of Similar Title)   print
No person, other than the Foundation prescribed by this Act, may use the title "Korea Foundation" or similar thereto.
[This Article Wholly Amended by Act No. 9878, Dec. 30, 2009]
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 Article 24 (Application Mutatis Mutandis of Civil Act)   print
Except as provided by this Act, the provisions of the Civil Act concerning incorporated foundations shall apply mutatis mutandis to the Foundation.
[This Article Wholly Amended by Act No. 9878, Dec. 30, 2009]
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 Article 25 (Legal Fiction as Public Officials in Application of Penal Provisions)   print
Executives and employees of the Foundation shall be deemed as public officials in application of Articles 129 through 132 of the Criminal Act.
[This Article Wholly Amended by Act No. 9878, Dec. 30, 2009]
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 Article 26 (Penal Provisions)   print
Any person who violates Article 22, shall be punished by imprisonment for not more than two years or by a fine not exceeding five million won.
[This Article Wholly Amended by Act No. 9878, Dec. 30, 2009]
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 Article 26-2 (Fines for Negligence)   print
(1) A person who violates Article 23 shall be punished by a fine for negligence not exceeding two million won.
(2) Fines for negligence under paragraph (1) shall be imposed and collected by the Minister of Foreign Affairs and Trade, as prescribed by Presidential Decree.
[This Article Wholly Amended by Act No. 9878, Dec. 30, 2009]
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 Article 27 Deleted.<by Act No. 9878, Dec. 30, 2009>   print
ADDENDA
Article 1 (Enforcement Date)
This Act shall enter into force on the date of its promulgation.
Article 2 (Preparation for Establishment)
(1) The Minister of Foreign Affairs shall entrust the establishment committee composed of five or less members with affairs concerning the establishment of the Foundation within thirty days after this Act enters into force.
(2) The establishment committee shall prepare the articles of association of the Foundation to obtain the authorization of the Minister of Foreign Affairs.
(3) The establishment committee shall, upon obtaining the authorization as referred to in paragraph (2), make without delay the establishment registration of the Foundation under a joint signature.
(4) The establishment committee shall transfer official duties to the chairperson of the Foundation immediately after the establishment of the Foundation is registered.
(5) When the transfer of official duties under paragraph (4) is completed, the establishment committee shall be considered to be released from the commission.
(6) Expenses disbursed for the establishment of the Foundation until the Foundation is established, shall be borne by the Korea International Culture Association which is an incorporated association (hereinafter referred to as the "Association").
Article 3 (Transitional Measures for Association)
(1) In case where a general meeting of members resolves that all property, right and obligations should be succeeded to by the Foundation to be established under this Act, the Association existing at the time when this Act enters into force shall be considered to have been dissolved regardless of the provisions of the Civil Act concerning the dissolution and liquidation of a juristic person, and all property, rights and obligations which belong to the Association, shall be succeeded to by the Foundation.
(2) The value of the property to be succeeded to by the Foundation under paragraph (1) shall be the book value on the day immediately before the establishment of the Foundation is registered.
Article 4 (Transitional Measures concerning Approval on Operation Plan, etc.)
Notwithstanding Article 20, the Foundation shall, immediately after the establishment of the Foundation, prepare an operation plan and a bill of budget for the first business year to obtain the approval from the Minister of Foreign Affairs.
ADDENDA<Act No. 5639, Jan. 21, 1999>
(1) (Enforcement Date) This Act shall enter into force on the date of its promulgation
(2) (Transitional Measures for Penal Provisions) The application of penal provisions to any act of violating Article 23 before this Act enters into force, shall be subject to the previous provisions.
ADDENDA<Act No. 6589, Dec. 31, 2001>
Article 1 (Enforcement Date)
This Act shall enter into force on January 1, 2002. (Proviso Omitted.) <Amended by Act No. 7058, Dec. 31, 2003>
Articles 2 through 8 Omitted.
ADDENDA<Act No. 6590, Dec. 31, 2001>
Article 1 (Enforcement Date)
This Act shall enter into force on March 1, 2002. (Proviso Omitted.) <Amended by Act No. 7059, Dec. 31, 2003>
Articles 2 through 6 Omitted.
ADDENDA<Act No. 7058, Dec. 31, 2003>
Article 1 (Enforcement Date)
This Act shall enter into force on January 1, 2004.
Article 2 Omitted.
ADDENDA<Act No. 7059, Dec. 31, 2003>
Article 1 (Enforcement Date)
This Act shall enter into force on January 1, 2004.
Articles 2 through 5 Omitted.
ADDENDUM<Act No. 7400, Mar. 24, 2005>
This Act shall enter into force on the date of its promulgation.
ADDENDA<Act No. 7428, Mar. 31, 2005>
Article 1 (Enforcement Date)
This Act shall enter into force one year after the date of its promulgation.
Articles 2 through 6 Omitted.
ADDENDA<Act No. 7908, Mar. 24, 2006>
Article 1 (Enforcement Date)
This Act shall enter into force six months after the date of its promulgation.
Articles 2 through 5 Omitted.
ADDENDUM<Act No. 8168, Jan. 3, 2007>
This Act shall enter into force three months after the date of its promulgation.
ADDENDUM<Act No. 9878, Dec. 30, 2009>
This Act shall enter into force on the date of its promulgation.