CHAPTER I GENERAL PROVISIONS
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| Article 1 (Purposes) |
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The purpose of this Act is to facilitate the financing of enterprises by establishing the Korea Credit Guarantee Fund and causing the Fund to guarantee the liabilities of enterprises which lack security solvency, and to contribute to the balanced development of the national economy by establishing sound credit order through efficient management and use of credit information.
[This Article Wholly Amended by Act No. 10689, May 19, 2011]
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| Article 2 (Definitions) |
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The terms used in this Act shall be defined as follows: <Amended by Act No. 11844, May 28, 2013>
| 1. |
The term "enterprise" means an individual or juristic person who runs a business, and an organization formed by such individuals or juristic persons; |
| 2. |
The term "credit guarantee" means a guarantee provided by the Korea Credit Guarantee Fund (hereinafter referred to as the "Fund") for any of the following liabilities borne by enterprises: |
| (a) |
Monetary liabilities borne by an enterprise to finance companies, etc. by receiving a loan of fund or other benefits, etc. from such finance companies, etc.; |
| (b) |
Monetary liabilities under which an enterprise shall comply with a claim for indemnity in compensation for discharging guaranteed liabilities by a financial company if such financial company guarantees the enterprise's liabilities; |
| (d) |
Other monetary liabilities prescribed by Presidential Decree, among the liabilities of enterprises. |
| 3. |
The term "financial company, etc." means any of the following institutions: |
| (f) |
Others prescribed by Presidential Decree, who run the business of financing enterprises; |
| 4. |
The term "creditor" means a creditor of liabilities, for which the Fund provides a credit guarantee; |
| 5. |
The term "fundamental property" means property created by the Fund as its financial base by means of contributions or other ways to achieve the purpose of this Act; |
| 7. |
The term "re-guarantee" means a guarantee by the Fund to indemnify an original guarantor up to the amount of liabilities discharged by the original guarantor under a guarantee referred to in Article 23-2 (1) (hereinafter referred to as "original guarantee"); |
| 8. |
The term "guarantee for a special purpose company" means that the Fund provides a guarantee for liabilities borne by a special purpose company established under the Asset-Backed Securitization Act (hereinafter referred to as "special purpose company") referred to in Article 23-3 (1); |
| 9. |
The term "guarantee-linked investment" means that the Fund underwrites an enterprise's securities pursuant to Article 23-4 (1). |
[This Article Wholly Amended by Act No. 10689, May 19, 2011]
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| Article 3 (Preferential Guarantee) |
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| (1) |
The Fund shall provide preferential credit guarantees to small and medium enterprises which lack security solvency and funds corresponding to objectives prescribed by Presidential Decree, as prescribed by Presidential Decree. |
[This Article Wholly Amended by Act No. 10689, May 19, 2011]
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| Article 4 (Juristic Personality, etc.) |
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| (1) |
The Fund shall be a juristic person. |
| (2) |
The Fund shall be operated, as prescribed by this Act, orders issued under this Act and the articles of incorporation of the Fund. |
[This Article Wholly Amended by Act No. 10689, May 19, 2011]
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| Article 5 (Head Office, Branches, Sub-Branches and Agencies) |
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| (1) |
The Fund shall have its head office in Seoul Special Metropolitan City. |
| (2) |
The Fund may establish branches, sub-branches or agencies wherever necessary, as stipulated in the articles of incorporation. |
[This Article Wholly Amended by Act No. 10689, May 19, 2011]
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| Article 6 (Acquisition of Fundamental Property) |
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| (1) |
The fundamental property of the Fund shall consist of the following: |
| 1. |
Contributions from the Government; |
| 2. |
Contributions from financial companies, etc.; |
| 3. |
Contributions from enterprises; |
| 4. |
Contributions from persons other than those referred to in subparagraphs 1 through 3. |
| (2) |
The budget of contributions from the Government under paragraph (1) 1 shall be under the jurisdiction of the Small and Medium Business Administration. |
| (3) |
Financial companies, etc. shall contribute to the Fund an amount at a rate prescribed by Ordinance of the Prime Minister, within 0.3 percent per annum of their loans. |
| (4) |
The scope of loans, the methods and timing of making contributions, and other matters necessary for contributions under paragraph (3) shall be prescribed by Ordinance of the Prime Minister. |
[This Article Wholly Amended by Act No. 10689, May 19, 2011]
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| Article 7 (Articles of Incorporation) |
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| (1) |
The following matters shall be stated in the articles of incorporation of the Fund: |
| 3. |
Matters pertaining to the head office, branches, sub-branches and agencies; |
| 4. |
Matters pertaining to the fundamental property; |
| 5. |
Matters pertaining to the board of policy under Article 10; |
| 6. |
Matters pertaining to the board of directors; |
| 7. |
Matters pertaining to executives and employees; |
| 8. |
Matters pertaining to business and the execution thereof; |
| 9. |
Matters pertaining to accounting; |
| 10. |
Matters pertaining to the method of giving public notices; |
| 11. |
Matters pertaining to the amendments to the articles of incorporation; |
| 12. |
Other matters prescribed by Presidential Decree. |
| (2) |
Where the Fund intends to amend the articles of incorporation, it shall obtain authorization from the Financial Services Commission, following a resolution thereon by the board of policy under Article 10. |
[This Article Wholly Amended by Act No. 10689, May 19, 2011]
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| Article 8 (Registration) |
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| (1) |
The Fund shall be registered, as prescribed by Presidential Decree. |
| (2) |
The Fund shall be established upon completing the registration of incorporation at the location of its head office. |
| (3) |
Matters to be registered under paragraph (1) shall not oppose to a third party until after they are registered. |
[This Article Wholly Amended by Act No. 10689, May 19, 2011]
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| Article 9 (Prohibition of Use of Similar Names) |
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No person other than the Fund under this Act or other Acts shall use the "Korea Credit Guarantee Fund" or any other name similar thereto.
[This Article Wholly Amended by Act No. 10689, May 19, 2011]
CHAPTER II BOARD OF POLICY
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| Article 10 (Establishment, etc. of Board of Policy) |
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| (1) |
A board of policy (hereinafter referred to as "board of policy") shall be established under the Fund. |
| (2) |
The board of policy shall formulate basic policies on the business operations of the Fund, as prescribed by this Act, orders issued under this Act, and the articles of incorporation of the Fund. |
[This Article Wholly Amended by Act No. 10689, May 19, 2011]
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| Article 11 (Composition of Board of Policy) |
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| (1) |
The board of policy shall be comprised of the following 12 members: |
| 1. |
The president of the Fund; |
| 2. |
One person nominated by the Financial Services Commission, from among the public officials belonging thereto; |
| 3. |
One person nominated by the Minister of Strategy and Finance, from among the public officials belonging thereto; |
| 4. |
One person nominated by the Administrator of Small and Medium Business Administration, from among the public officials belonging thereto; |
| 5. |
One person nominated by the Governor of the Bank of Korea under the Bank of Korea Act, from among the executives belonging thereto; |
| 6. |
One person nominated by the president of the Industrial Bank of Korea under the Industrial Bank of Korea Act, from among the officers belonging to the Industrial Bank of Korea; |
| 7. |
One person nominated by the head of a bank under Article 2 (1) 2 of the Banking Act, that is designated by the Financial Services Commission and is involved in a banking and financing business for the general public and small-sized enterprises, from among the executives belonging thereto; |
| 8. |
Three persons, from among the executives or executive officers of financial companies, etc.; |
| 9. |
Two persons, from among the representatives of associations of enterprises. |
| (2) |
Members referred to in paragraph (1) 8 and 9 shall be nominated by the Financial Services Commission: Provided,That members referred to in subparagraph 9 shall be nominated by the Financial Services Commission through consultation with the Minister of Trade, Industry and Energy. <Amended by Act No. 11690, Mar. 23, 2013> |
| (3) |
The president of the Fund shall become the chairperson of the board of policy. |
| (4) |
Members referred to in paragraph (1) l and 5 through 8 may designate any executive or employee of the relevant institution as their deputy members to perform duties on behalf of them. |
[This Article Wholly Amended by Act No. 10689, May 19, 2011]
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| Article 12 (Term of Office of Members) |
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The term of office of members referred to in Article 11 (1) 8 and 9 shall be two years:Provided,
That the term of office of a supplementary member shall be the remaining term of his/her predecessor.
[This Article Wholly Amended by Act No. 10689, May 19, 2011]
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| Article 13 (Operation of Board of Policy) |
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Matters necessary for the operation of the board of policy shall be prescribed by Presidential Decree.
[This Article Wholly Amended by Act No. 10689, May 19, 2011]
CHAPTER III EXECUTIVES AND EMPLOYEES
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| Article 14 (Executives) |
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The Fund shall have, as its executives, one president, one managing director, not more than seven directors, and one auditor.
[This Article Wholly Amended by Act No. 10689, May 19, 2011]
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| Article 15-2 (Board of Directors) |
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| (1) |
A board of directors shall be established under the Fund. |
| (2) |
The board of directors shall be comprised of the president, the managing director and directors. |
| (3) |
The board of directors shall pass a resolution on important matters pertaining to the business of the Fund. |
| (4) |
The president shall call meetings of the board of directors and serve as a chairperson. |
| (5) |
A meeting of the board of directors shall commence by the attendance of a majority of its members, and resolutions shall be adopted by the affirmative vote of a majority of those present. |
| (6) |
The auditor may attend and present his/her opinion at any meeting of the board of directors. |
[This Article Wholly Amended by Act No. 10689, May 19, 2011]
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| Article 16 (Appointment of Executives) |
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| (1) |
The president and the auditor shall be appointed by the Financial Services Commission. |
| (2) |
The managing director and the directors shall be appointed by the Financial Services Commission upon the recommendation of the president of the Fund. |
[This Article Wholly Amended by Act No. 10689, May 19, 2011]
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| Article 17 (Term of Office of Executives) |
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The term of office of an executive shall be three years.
[This Article Wholly Amended by Act No. 10689, May 19, 2011]
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| Article 18 (Dismissal of Executives) |
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The Financial Services Commission shall dismiss an executive of the Fund if the executive falls under any of the following cases:
| 1. |
When he/she violates this Act, orders issued under this Act or the articles of incorporation of the Fund; |
| 2. |
When he/she is adjudged guilty in a criminal case; |
| 3. |
When he/she is declared bankrupt; |
| 4. |
When he/she becomes unable to perform his/her duties due to a mental or physical disability. |
[This Article Wholly Amended by Act No. 10689, May 19, 2011]
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| Article 19 (Responsibility, etc. of Prohibition of Concurrent Office) |
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| (1) |
No executives of the Fund shall engage in any other business without permission of the Financial Services Commission. |
| (2) |
No current or former executives and employees of the Fund shall disclose confidential information that they came to know in the course of their duties. |
[This Article Wholly Amended by Act No. 10689, May 19, 2011]
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| Article 20 Deleted. <by Act No. 10689, May 19, 2011> |
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| Article 21 (Appointment and Dismissal of Employees) |
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The employees of the Fund shall be appointed or dismissed by the president of the Fund.
[This Article Wholly Amended by Act No. 10689, May 19, 2011]
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| Article 22 (Appointment of Representative) |
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The president of the Fund may appoint a representative duly empowered to do all judicial or extrajudicial acts in connection with the business of the Fund, from among the managing director, directors and employees of the Fund.
[This Article Wholly Amended by Act No. 10689, May 19, 2011]
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| Article 23 (Business) |
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| (1) |
In order to achieve the purposes of this Act, the Fund shall perform the following: <Amended by Act No. 11844, May 28, 2013> |
| 1. |
Management of its fundamental property; |
| 2-2. |
Guarantee-linked investment; |
| 3. |
Business administration guide; |
| 4. |
Credit investigations and comprehensive management of credit information; |
| 5. |
Exercise of the right to indemnity; |
| 6. |
Investigations and research of the credit guarantee system; |
| 7. |
Any business incidental to the business provided for in subparagraphs 1 through 6 and approved by the Financial Services Commission. |
| (2) |
The Fund may perform business of providing a re-guarantee and a guarantee for a special purpose company, in addition to business referred to in paragraph (1). |
[This Article Wholly Amended by Act No. 10689, May 19, 2011]
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| Article 23-2 (Re-Guarantee) |
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| (1) |
Where the Fund intends to provide a re-guarantee, it shall enter into a contract with any credit guarantee foundation established under the Regional Credit Guarantee Foundation Act (hereinafter referred to as "original guarantor"). |
| (2) |
A contract under paragraph (1) shall stipulate matters pertaining to the ceiling amount, period, requirements, etc. of the re-guarantee and the contract shall be executed in an umbrella agreement form re-guaranteeing the original guarantee which meets the requirements of re-guarantee, within the ceiling amount and the period of the re-guarantee stipulated under the re-guarantee contract. |
| (3) |
The amount of re-guarantee of the Fund shall be calculated by multiplying the amount of original guarantee by a rate prescribed by Presidential Decree (hereinafter referred to as "re-guarantee rate"). |
| (4) |
Where an original guarantor has subrogated for the Fund, the amount of compensation to be paid by the Fund shall be calculated by multiplying the amount not recovered by exercising the right to indemnity, out of the amount of subrogated by the original guarantor, by the re-guarantee rate. |
| (5) |
If the original guarantor recovers the amount of subrogation by exercising the right to indemnity under the original guarantee, he/she shall return the amount calculated by multiplying such recovered amount by the re-guarantee rate to the Fund. |
| (6) |
A claim for discharging re-guaranteed liabilities shall be made at the expiration of a period prescribed by Presidential Decree from the date of subrogation by the original guarantor, and other matters necessary for making a claim for discharging the re-guaranteed liabilities shall be prescribed by Presidential Decree. |
| (7) |
Other matters necessary for the relation between the Fund and the original guarantor in connection with the operation of re-guarantee shall be prescribed by Presidential Decree. |
[This Article Wholly Amended by Act No. 10689, May 19, 2011]
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| Article 23-3 (Guarantee, etc. for Special Purpose Companies) |
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| (1) |
Where a special purpose company pools and repackages corporate bonds (including convertible bonds and bonds with warrant) of enterprises, loans or property rights prescribed by Presidential Decree into securitized assets, the Fund may guarantee the liabilities to be borne by the special purpose company in any of the following cases: |
| 1. |
Issuing securitized bonds; |
| 2. |
Granting credits to a special purpose company by financial companies, etc., the National Agricultural Cooperative Federation under the Agricultural Cooperatives Act and the National Federation of Fisheries Cooperatives under the Fisheries Cooperatives Act. |
| (2) |
The maximum limit of securitized assets an asset holder (referring to the person under subparagraph 2 of Article 2 of the Asset-Backed Securitization Act) can underwrite from the same enterprise in connection with the operation of guarantee for a special purpose company by the Fund shall be prescribed by Presidential Decree. |
| (4) |
Where the Financial Services Commission deems it necessary for efficiently operating the Fund and appropriately diversifying risks, it may establish separate guidelines and give notice thereon. |
[This Article Wholly Amended by Act No. 10689, May 19, 2011]
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| Article 23-4 (Guarantee-Linked Investment) |
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| (1) |
The Fund may underwrite only the following securities, from among the securities of an enterprise with which it has established the relationship of a credit guarantee: |
| (2) |
A ceiling on the aggregate of guarantee-linked investments by the Fund shall be determined by Presidential Decree, within the extent not exceeding 10/100 of the sum of fundamental property of the Fund and the profits carried forward. |
| (3) |
A ceiling on guarantee-linked investments which the Fund may provide to the same enterprise shall be determined by Presidential Decree. |
| (4) |
If deemed necessary for efficiently operating the Fund and appropriately diversifying risks, the Financial Services Commission may establish separate guidelines and give notice thereon. |
[This Article Newly Inserted by Act No. 11844, May 28, 2013]
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| Article 24 (Operational Manual) |
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The Fund shall prepare an operational manual stating the following matters necessary for performing its business and undergo a resolution thereon by the board of policy. The same shall also apply to any amendment to such operational manual: <Amended by Act No. 11844, May 28, 2013>
| 1. |
The following matters concerning credit guarantee: |
| (a) |
Methods of providing a guarantee; |
| (b) |
Types of business for which guarantee is restricted; |
| (e) |
Discharge of guaranteed liabilities; |
| 2. |
Exercise of the right to indemnity; |
| 3. |
The following matters concerning re-guarantee: |
| (a) |
Methods of providing a re-guarantee; |
| (b) |
Period of re-guarantee; |
| (c) |
Types of business for which re-guarantee is restricted; |
| 4. |
The following matters concerning guarantee for special purpose companies: |
| (a) |
Liabilities subject to guarantee; |
| (b) |
Assets subject to securitization; |
| (c) |
Risk management plans; |
| (d) |
Maximum ceiling of securitized assets underwritable from the same enterprise under Article 23-3 (2); |
| 4-2. |
Matters concerning guarantee-linked investment; |
| 5. |
Other matters necessary for performing business of the Fund. |
[This Article Wholly Amended by Act No. 10689, May 19, 2011]
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| Article 25 (Ceiling of Guarantee, etc.) |
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| (1) |
A ceiling on the aggregate of a credit guarantee, re-guarantee and a guarantee for a special purpose company by the Fund shall be prescribed by Presidential Decree within twenty times the sum of the fundamental property of the Fund and the profits carried forward. |
| (2) |
A maximum ceiling on a credit guarantee or re-guarantee the Fund may provide to the same enterprise shall be prescribed by Presidential Decree. |
[This Article Wholly Amended by Act No. 10689, May 19, 2011]
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| Article 26 (Business Plans) |
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| (1) |
The Fund shall prepare a business plan for each fiscal year and obtain approval therefor from the Financial Services Commission, following a resolution thereon by the board of policy. |
| (2) |
Where the Fund intends to obtain approval under paragraph (1), it shall submit it to the Financial Services Commission by no later one month prior to the commencement of the relevant year. |
| (3) |
Any amendment to business plans shall be approved by the Financial Services Commission, following a resolution thereon by the board of policy. |
| (4) |
When the Fund prepares or amends the business plan, it shall expressly state matters concerning a preferential guarantee it intends to provide under Article 3. |
[This Article Wholly Amended by Act No. 10689, May 19, 2011]
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| Article 27 (Duties to Conduct Investigations) |
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Where the Fund intends to provide a credit guarantee (including guarantee for a special purpose company; the same shall apply hereinafter) under in Article 23 (1) 2 or to conduct a credit investigation under subparagraph 4 of the same paragraph, it shall fairly and sincerely investigate the management status, business prospects, credit standing, etc.
[This Article Wholly Amended by Act No. 10689, May 19, 2011]
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| Article 28 (Establishment, etc. of Guarantee Relationship) |
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| (1) |
Where the Fund has decided to provide a credit guarantee for an enterprise, it shall give notice to that effect to the relevant enterprise and any prospective creditor of such enterprise: Provided, That where the Fund guarantees debentures under subparagraph 2 (c) of Article 2 and liabilities borne by a special purpose company following issuance of securitized bonds pursuant to Article 23-3 (1) 1, it need not give notice to the underwriters of the debentures or securitized bonds. |
| (2) |
The relationship of a credit guarantee shall take effect only when a principal obligation comes into effect between the relevant enterprise and its creditors, following receipt of the notice under paragraph (1). |
| (3) |
No relationship of a credit guarantee shall take effect, unless the primary obligation comes into effect within 60 days from the date on which the notice under paragraph (1) is given to interested parties. |
[This Article Wholly Amended by Act No. 10689, May 19, 2011]
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| Article 29 (Discharge of Guaranteed Liabilities) |
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| (1) |
A creditor may request the Fund to discharge guaranteed liabilities if grounds prescribed by Presidential Decree arise. |
| (2) |
Upon receipt of a request for the discharge of guaranteed liabilities under paragraph (1), the Fund shall discharge both primary obligation and subordinate liabilities prescribed by Presidential Decree. |
[This Article Wholly Amended by Act No. 10689, May 19, 2011]
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| Article 30 (Exercise, etc. of Right to Indemnity) |
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| (1) |
Where the Fund has discharged its guaranteed liabilities, the relevant creditor shall send all documents necessary for the Fund to exercise its right to indemnity to the Fund, and shall fully cooperate with the Fund in exercising such right to indemnity. |
| (2) |
Where any enterprise for which the Fund has subrogated falls under any of the following cases, the Fund may suspend the exercise of the right to indemnity against such enterprise, following a resolution thereon by the board of directors: |
| 1. |
Where it is deemed improbable that the property of the enterprise will, after being appropriated for the expenses incidental to the exercise of right to indemnity, still leave a balance; |
| 2. |
Where it is deemed probable that the debt-servicing ability of the enterprise will be enhanced by the suspension of the exercise of right to indemnity. |
| (3) |
Where the Fund has suspended the exercise of the right to indemnity under paragraph (2) 2, it may dispatch its executives or employees to the relevant enterprise to participate in the management thereof. |
[This Article Wholly Amended by Act No. 10689, May 19, 2011]
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| Article 30-2 (Sale of Claims for Indemnity) |
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If deemed necessary for efficiently recovering and managing claims for indemnity, the Fund may sell its claims for indemnity to any of the following persons, through a resolution of the board of directors:
| 3. |
Korea Asset Management Corporation established in accordance with the Act on the Efficient Disposal of Non-Performing Assets, etc. of Financial Institutions and the Establishment of Korea Asset Management Corporation; |
| 5. |
Other persons prescribed by Presidential Decree who specialize in the purchase, sale and management of non-performing loans. |
[This Article Newly Inserted by Act No. 11844, May 28, 2013]
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| Article 30-3 (Reduction of and Exemption from Joint Guarantee Obligations) |
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Where a creditor is the Fund, if the principal debt is reduced or exempt at the time approval for rehabilitation plans for a small and medium enterprise is obtained or immunity is granted after adjudication of bankruptcy, joint guarantee obligations shall also be reduced or exempt at the same rate, notwithstanding Articles 250 (2), 567 and 625 (3) of the Debtor Rehabilitation and Bankruptcy Act.
[This Article Newly Inserted by Act No. 11844, May 28, 2013]
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| Article 31-2 (Delegation Provisions concerning Comprehensive Management, etc. of Credit Information) |
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Matters necessary for affairs such as comprehensive management of credit information, credit analysis and evaluations, etc. shall be prescribed by Presidential Decree.
[This Article Wholly Amended by Act No. 10689, May 19, 2011]
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| Article 32 (Entrustment of Business) |
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| (1) |
The Fund may entrust part of its business to financial companies, etc., the Korea Asset Management Corporation under the Act on the Efficient Disposal of Non-Performing Assets, etc. of Financial Companies and the Establishment of the Korea Asset Management Corporation, or credit information companies under the Use and Protection of Credit Information Act (hereafter referred to as "credit information company" in this Article), as prescribed by Presidential Decree: Provided, That credit information companies shall be only entrusted with the business permitted under the Use and Protection of Credit Information Act. |
| (2) |
Any person entrusted with the business under paragraph (1) may do all judicial or extrajudicial acts in connection with such business on behalf of the Fund: Provided, That credit information companies shall act on behalf of the Fund only in the extrajudicial area. |
[This Act Wholly Amended by Act No. 10689, May 19, 2011]
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| Article 33 (Guarantee Fees, etc.) |
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| (1) |
The Fund shall collect a guarantee fee for the amount of guarantee from an enterprise provided with a credit guarantee, considering a credit rating, etc., as prescribed by Presidential Decree. In such cases, where an enterprise provided with a credit guarantee achieves remarkable business performance, the Fund may collect performance-based guarantee fee from such enterprise under a separate agreement, as prescribed by Presidential Decree. |
| (2) |
The Fund shall collect a re-guarantee fee for the amount of re-guarantee from persons provided with a re-guarantee, as prescribed by Presidential Decree. |
| (3) |
When an enterprise provided with a credit guarantee fails to pay the guarantee fee by due date, the Fund shall collect an overdue guarantee for the unpaid guarantee fee, as prescribed by Presidential Decree. |
[This Article Wholly Amended by Act No. 10689, May 19, 2011]
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| Article 33-2 (Fees) |
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The Fund may charge a fee for the performance of the business referred to in Article 23 (1) 3, 3-2 and 6, as prescribed by Presidential Decree.
[This Article Newly Inserted by Act No. 10689, May 19, 2011]
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| Article 34 (Penalties) |
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Where the Fund is not relieved from its responsibility to discharge guaranteed liabilities since an enterprise provided with a guarantee fails to discharge its liabilities by the due date, the Fund is entitled to collect a penalty from the relevant enterprise for the amount in default out of the guaranteed liabilities, as prescribed by Presidential Decree.
[This Article Wholly Amended by Act No. 10689, May 19, 2011]
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| Article 35 (Damages) |
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Where the Fund discharges a guaranteed liability, it shall collect damages from the relevant enterprise at a rate not exceeding 25 percent per annum of the amount of paid by the Fund.
[This Article Wholly Amended by Act No. 10689, May 19, 2011]
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| Article 36 (Accounting Principles) |
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| (1) |
The accounting of the Fund shall be in accordance with business accounting standards. |
| (2) |
The fundamental property of the Fund shall be assessed as capital in the accounting. |
[This Article Wholly Amended by Act No. 10689, May 19, 2011]
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| Article 37 (Fiscal Year) |
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The fiscal year of the Fund shall coincide the fiscal year of the Government.
[This Article Wholly Amended by Act No. 10689, May 19, 2011]
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| Article 38 (Budgets) |
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| (1) |
The Fund shall compile a budget indicating the total income and expenditure of each business year and it shall obtain approval therefor from the Financial Services Commission, following a resolution by the board of policy. |
| (2) |
Where the Fund intends to obtain approval under paragraph (1), it shall submit the budget bill to the Financial Services Commission by no later than one month prior to the commencement of the relevant fiscal year. |
| (3) |
Where the Fund intends to revise its budget, it shall obtain approval therefor from the Financial Services Commission, following a resolution by the board of policy. |
[This Article Wholly Amended by Act No. 10689, May 19, 2011]
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| Article 39 (Settlement of Accounts) |
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The Fund shall prepare a statement of accounts, a balance sheet, a profit and loss statement and a statement of fundamental property for each fiscal year and submit them to the Financial Services Commission within two months after the end of the relevant year, following a resolution thereon by the board of policy.
[This Article Wholly Amended by Act No. 10689, May 19, 2011]
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| Article 40 (Utilization of Fundamental Property) |
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| (1) |
The fundamental property of the Fund shall be appropriated for the expenditure incurred in the business operations of the Fund and the reserve funds shall be managed in any of the following methods: Provided, That in cases under subparagraphs 3 and 4, approval of the Financial Services Commission shall be obtained: |
| 1. |
Deposit with financial companies, etc.; |
| 2. |
Purchase of State bonds, local government bonds, and bonds, the payment of which is guaranteed by the Government, a local government, financial companies, etc.; |
| 3. |
Underwriting or purchase of stocks (including investment certificates), debentures and other securities; |
| 4. |
Other methods necessary for the achievement of the objective, for which the Fund is established. |
| (2) |
Notwithstanding the provisions of paragraph (1), the Fund may contribute part of its fundamental property to the Small Business Corporation established under the Small and Medium Enterprises Promotion Act. In such cases, the Fund shall consult with the Minister of Strategy and Finance thereabout and obtain approval therefor from the Financial Services Commission. |
[This Article Wholly Amended by Act No. 10689, May 19, 2011]
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| Article 41 (Coverage of Losses) |
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| (1) |
Where any profit is realized at the book-closing of the Fund, the total amount of such profit shall be reserved. |
| (2) |
Where any loss is incurred at the book-closing of the Fund, it shall be covered by the reserves under paragraph (1), and if the relevant reserves are insufficient to cover such loss, the Government shall cover it. |
[This Article Wholly Amended by Act No. 10689, May 19, 2011]
CHAPTER VI SUPPLEMENTARY PROVISIONS
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| Article 42 (Supervision) |
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The Financial Services Commission may supervise the business of the Fund and issue orders necessary for supervising the Fund.
[This Article Wholly Amended by Act No. 10689, May 19, 2011]
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| Article 43 (Reports and Inspections) |
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| (1) |
If it is deemed necessary to achieve the purposes of this Act, the Financial Services Commission may request the Fund, financial companies, etc. entrusted by the Fund with the business thereof (hereinafter referred to as "trustee") or financial companies, etc. making contributions to the Fund to submit reports, or cause public officials affiliated therewith to inspect the status of operations, books and documents or other necessary matters: Provided,That in cases of a trustee, such reporting and inspection shall be limited to the entrusted matters, and in cases of financial companies, etc. making contributions to the Fund, such reporting and inspection shall be limited to contribution-related matters. |
[This Article Wholly Amended by Act No. 10689, May 19, 2011]
law view
| Article 43-2 (Request for Provision of Data and Cooperation) |
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| (2) |
The Fund may request cooperation from enterprises to efficiently perform the comprehensive management of credit information under Article 23 (1) 4. |
| (3) |
Any person in receipt of a request for data or cooperation under paragraphs (1) and (2) shall comply therewith except in extenuating circumstances. |
[This Article Wholly Amended by Act No. 10689, May 19, 2011]
law view
| Article 44 (Liability of Compensation) |
|
| (1) |
Where any executive of the Fund violates Acts and subordinate statutes or the articles of incorporation of the Fund or neglects his/her duties, he/she shall be jointly and severally liable to the Fund for any loss resulting therefrom. |
| (2) |
Where any person engaged in the credit guarantee business of the Fund, incurs any loss to the Fund, intentionally or by gross negligence, in connection with his/her duties, he/she shall be liable for compensated for such loss. In such cases, such liability may be mitigated, except in cases where a loss is intentionally incurred. |
[This Article Wholly Amended by Act No. 10689, May 19, 2011]
law view
| Article 45 Deleted. <by Act No. 4953, Aug. 4, 1995> |
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| Article 46 (Prohibition of Guarantee) |
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The Fund shall not provide a guarantee to any of the following enterprises (excluding a guarantee to recover an existing guarantee) within three years from the date on which the Fund has discharged the guaranteed liabilities: Provided,
That this shall not apply where the Fund suspends the exercise of the right to indemnity under Article 30 (2) 2, or provides a guarantee to collect its claims for indemnity upon a resolution by the board of directors:
| 1. |
An enterprise from which the Fund fails to collect its claims for indemnity after it has discharged guaranteed liabilities for such enterprise; |
| 2. |
An enterprise which is operated or represented by a person prescribed by Presidential Decree, among the directors or executives officers of an enterprise referred to in subparagraph 1. |
[This Article Wholly Amended by Act No. 10689, May 19, 2011]
law view
| Article 47 Deleted. <by Act No. 6561, Dec. 31, 2001> |
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law view
| Article 48 Deleted. <by Act No. 10689, May 19, 2011> |
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| Article 48-2 (Legal Fiction as Public Officials in Application of Penal Provisions) |
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Any executive of the Fund shall be deemed a public official for the purpose of penal provisions under the Criminal Act or any other Act.
[This Article Newly Inserted by Act No. 10689, May 19, 2011]
CHAPTER VII PENAL PROVISIONS
law view
| Article 49 (Penal Provisions) |
|
| (1) |
Any person who discloses confidential information, in violation of Article 19 (2) shall be punished by imprisonment for not more than two years, or by a fine not exceeding ten million won. |
| (2) |
Any person who uses the Korea Credit Guarantee Fund or any other name similar thereto, in violation of Article 9 shall be punished by a fine not exceeding five million won. |
[This Article Wholly Amended by Act No. 10689, May 19, 2011]
ADDENDA
Article 1 (Enforcement Date)
This Act shall enter into force on March 1, 1975.
Article 2 (Abrogation of Acts)
The Small and Medium Enterprises Credit Guarantee Act and the Exporters Credit Guarantee Act shall be abrogated as at the time this Act enters into force.
Article 3 (Preparations for Establishment of Fund)
| (1) |
The Minister of Finance shall appoint commissioners for the establishment of the Fund and cause him to administer business pertaining to the establishment of the Fund. |
| (2) |
The commissioners for the establishment of the Fund, shall prepare the articles of incorporation of the Fund, and shall obtain authorization from the Minister of Finance. |
| (3) |
The commissioners for the establishment of the Fund shall, upon the approval as provided for in paragraph (2), effect registration without delay as provided in the provisions of Article 8. |
| (4) |
The commissioners for the establishment of the Fund shall, upon completing the registration as provided in paragraph (3), transfer its business without delay to the president of the Fund. |
Article 4 (Succession of Rights and Obligations)
| (1) |
The rights and obligations of the Funds established under Chapter 4 of the Emergency Order for Economic Stability and Growth and the Small and Medium Enterprises Credit Guarantee Act at the time when this Act enters into force, shall be succeeded by the Fund as prescribed by this Act. |
| (2) |
The property succeeded by the Fund as provided in paragraph (1) shall be deemed to be its fundamental property as provided in Article 6. |
Article 5 Deleted. <by Act No. 6324, Dec. 30, 2000>
Article 6 (Vicarious Execution of Business)
| (1) |
The Industrial Bank of Korea (hereinafter referred to as the "Agent") shall act for the Fund, until the Fund is established as prescribed by this Act. |
| (2) |
The Agent may, with the approval of the Minister of Finance, entrust the business of the Fund to the financial institutions as provided in Article 2 (3) 1 through 8. |
| (3) |
Necessary matters pertaining to such entrustment as provided in paragraph (2) shall be prescribed by the Minister of Finance. |
Article 7 (Transitional Measures)
The contributions to the funds, issuance of credit guarantees and other legal relationships already effected under Chapter 4 of the Emergency Order for Economic Stability and Growth, the Small and Medium Enterprises Credit Guarantee Act and the Exporters Credit Guarantee Act at the time when this Act enters into force shall be regarded to have been effected under this Act.
ADDENDUM <Act No. 3190, Dec. 28, 1979>
This Act shall enter into force on January 1, 1980.
ADDENDUM <Act No. 3748, Aug. 7, 1984>
This Act shall enter into force on the date of its promulgation:Provided, That the revised provisions of Article 33 shall enter into force on the sixtieth date following the day of its promulgation.
ADDENDUM <Act No. 4287, Dec. 31, 1990>
This Act shall enter into force on the date of its promulgation.
ADDENDA <Act No. 4541, Mar. 6, 1993>
Article 1 (Enforcement Date)
This Act shall enter into force on the date of its promulgation. (Proviso Omitted.)
Articles 2 through 5 Omitted.
ADDENDA <Act No. 4953, Aug. 4, 1995>
| (1) |
(Enforcement Date) This Act shall enter into force on the date of its promulgation. |
| (2) |
(Transitional Measures Concerning Joint and Several Liability of Directors, etc. of Juristic Person) Those who are liable jointly and severally for discharging an obligation to which the Fund has given guarantee as provided in previous Article 45, at the time this Act enters into force, shall be subject to the previous provisions. |
ADDENDUM <Act No. 5187, Dec. 30, 1996>
This Act shall enter into force on the date of its promulgation.
ADDENDA <Act No. 5403, Aug. 30, 1997>
Article 1 (Enforcement Date)
This Act shall enter into force on the date of its promulgation.
Articles 2 through 8 Omitted.
ADDENDA <Act No. 5505, Jan. 13, 1998>
| (1) |
(Enforcement Date) This Act shall enter into force on April 1, 1998. (Proviso Omitted.) |
| (2) |
(Transitional Measures relating to Dispositions) At the time of the entry into force of this Act, authorization or other actions taken by administrative agencies, or various reports or other actions submitted to administrative agencies under the previous provisions, shall be deemed to be actions taken by or submitted to administrative agencies under this Act. |
| (3) |
(Transitional Measures relating to Term of Office of Auditor) At the time of the entry into force of this Act, the tenure of the auditor of the Technol- ogy Credit Guarantee Fund, the Credit Guarantee Fund, the Korea Long- term Credit Bank, or the Export-Import Bank of Korea shall be two years, notwithstanding the amended provisions of Articles 10, 11, 16 and 21. |
ADDENDA <Act No. 6022, Sep. 7, 1999>
Article 1 (Enforcement Date)
This Act shall enter into force on March 1, 2000.
Articles 2 and 3 Omitted.
ADDENDA <Act No. 6073, Dec. 31, 1999>
Article 1 (Enforcement Date)
This Act shall enter into force on the date of its promulgation.
Articles 2 and 3 Omitted.
ADDENDA <Act No. 6324, Dec. 30, 2000>
| (1) |
(Enforcement Date) This Act shall enter into force on the date of its promulgation. |
| (2) |
(Application Example to Composition of Committee) The amendments to Article 11 (1) 5 and 6 shall be applicable to the members commissioned under the same amendments on and after the enforcement of this Act. |
ADDENDA <Act No. 6561, Dec. 31, 2001>
Article 1 (Enforcement Date)
This Act shall enter into force on the date of its promulgation.
Article 2 Omitted.
ADDENDA <Act No. 8234, Jan. 11, 2007>
| (1) |
(Enforcement Date) This Act shall enter into force on the date of its promulgation. |
| (2) |
(Application Example concerning Contribution to Small Business Corporation) Part of the fundamental property that the Fund can contribute to the Small Business Corporation pursuant to the amended provisions of Article 40 (2) shall be limited to the contribution that the Fund received from the Small Business Corporation in April 2001. |
ADDENDA <Act No. 8635, Aug. 3, 2007>
Article1(Enforcement Date)
This Decree shall enter into force one and half years after the date of its promulgation. (Proviso Omitted.)
Articles2 through 44Omitted.
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.
ADDENDA <Act No. 8863, Feb. 29, 2008>
Article 1 (Enforcement Date)
This Act shall enter into force on the date of its promulgation.
Articles 2 through 5 Omitted.
ADDENDUM <Act No. 9458, Feb. 6, 2009>
This Act shall enter into force three months after the date of its promul- gation.
ADDENDA <Act No. 9617, Apr. 1, 2009>
Article 1 (Enforcement Date)
This Act shall enter into force six months after the date of its promulgation.
Articles 2 through 13 Omitted.
ADDENDA <Act No. 9685, May 21, 2009>
Article 1 (Enforcement Date)
This Act shall enter into force six months after the date of its promulgation.
Articles 2 through 8 Omitted.
ADDENDA <Act No. 10303, May 17, 2010>
Article 1 (Enforcement Date)
This Act shall enter into force six months after the date of its promulgation. (Proviso Omitted.)
Articles 2 through 10 Omitted.
ADDENDA <Act No. 10689, May 19, 2011>
Article 1 (Enforcement Date)
This Act shall enter into force on the date of its promulgation. (Proviso Omitted.)
Article 2 Omitted.
ADDENDA <Act No. 11690, Mar. 23, 2013>
Article 1 (Enforcement Date)
| (1) |
This Act shall enter into force on the date of its promulgation. |
Articles 2 through 7 Omitted.
ADDENDA <Act No. 11844, May 28, 2013>
Article 1 (Enforcement Date)
This Act shall enter into force three months after the date of its promulgation: (Proviso Omitted.)
Article 2 (Applicable Cases concerning Reduction of and Exemption from Joint Guarantee Obligations)
The amended provisions of Article 30-3 shall apply, starting from the joint guarantee obligation the principal debt of which is reduced or exempt after approval for rehabilitation plans is obtained or immunity is granted following adjudication of bankruptcy for the first time after the same amended provisions enter into force.
