CHAPTER I GENERAL PROVISIONS
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| Article 1 (Purpose) |
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The purpose of this Act is to contribute to the economic development of local communities by enhancing the economic and social status of the members of credit unions through healthy growth of credit unions based on common bond, and also providing the residents of local communities with convenience in banking transactions.
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| Article 2 (Definitions) |
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The terms used in this Act are defined as follows: <Amended by Act No. 5739, Feb. 1, 1999; Act No. 6256, Jan. 28, 2000; Act No. 8863, Feb. 29, 2008>
| 1. |
The term "credit union (hereafter referred to as "union")" refers to a non-profit legal entity established under this Act in order to achieve the purpose articulated in Article 1; |
| 2. |
The term "National Credit Union Federation of Korea (hereafter referred to as the "National Federation")" refers to a non-profit legal entity established under this Act with an objective of pursuing the common interest of unions; |
| 3. |
The term "common bond" means a unit that determines the qualification for the establishment of a union and the membership thereof; |
| 4. |
The term "union member" means a person who is qualified for the membership as provided in Article 11 (1) and thus admitted to a union as provided in the articles of association of the union; |
| 5. |
The term "illegal or non-performing loan" means the money disbursed by a union as a loan or discount of notes (hereafter referred to as "loan, etc."), or as provisional payment (hereafter referred to as "provisional payment"), falling under either of the following items: |
| (b) |
A loan or a provisional payment considered difficult or impossible to collect and falling under the criteria prescribed by the Financial Services Commission (hereafter referred to as "non-performing loan"); |
| 6. |
The term "standard articles of association" refers to the articles of association established by the National Federation to provide matters necessary for the establishment and management of unions in detail and apply them to all unions uniformly; |
| 7. |
The term "standard regulations" means the regulations established by the National Federation to provide matters necessary for the management of unions in detail and apply them to all unions uniformly; |
| 8. |
The term "local union" means a union established on the basis of a common bond of the same administrative district, economic zone, or life boundary; |
| 9. |
The term "equity capital" means the aggregate of the capital, reserves, other retained earnings, etc. in the amount specified by Presidential Decree. |
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| Article 3 (Name, etc.) |
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| (1) |
Each union shall include the word "credit union" or "sin-hyeob" in its name. <Amended by Act No. 5739, Feb. 1, 1999> |
| (2) |
No one else but unions and the National Federation may use the words "credit union" or any similar word in its name. |
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| Article 4 (Registration) |
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| (1) |
Unions and the National Federation are duly formed only upon the completion of the registration of their establishment with the competent authority having jurisdiction over their principal place of business. |
| (2) |
The registration office shall keep the "credit union register" separately. |
| (3) |
Matters necessary for the registration of unions and the National Federation shall be prescribed by Presidential Decree, in addition to the provisions of this Act. |
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| Article 5 (Cooperation with Other Unions and Cooperatives) |
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| (1) |
The National Federation shall strive to promote reciprocal cooperations, enhance mutual interests, and develop joint projects, together with cooperatives and unions under other Acts. |
| (2) |
The National Federation may organize and run a council jointly with cooperatives and unions under any other Act, if necessary for accomplishing the purpose articulated in paragraph (1). |
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| Article 6 (Relations to Other Acts) |
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| (1) |
The provisions of the Insurance Business Act shall not apply to the mutual aid service of unions and the National Federation. |
| (4) |
In case of applying Article 45-2 of the Act on the Efficient Disposal of Non-Performing Assets, etc. of Financial Companies and the Establishment of Korea Asset Management Corporation, a union shall be deemed to be the person governed by the same Article. <Amended by Act No. 10682, May 19, 2011> |
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| Article 7 (Establishment) |
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| (1) |
In order to establish a union, 30 or more promoters who belong to the common bond of the union shall prepare the articles of association with resolution of its organizational general meeting, and shall obtain an authorization of the Financial Services Commission through the Chairperson of the National Federation (hereafter referred to as the "National Federation Chairperson"), as prescribed by Presidential Decree. <Amended by Act No. 5739, Feb. 1, 1999; Act No. 5982, May 24, 1999; Act No. 8863, Feb. 29, 2008> |
| (2) |
The resolution of the inaugural general meeting shall require the presence of a majority of the persons who have submitted to the representative of the promoters their written consent to the establishment of the union no later than the day before the opening day of the meeting and the affirmative vote of at least 2/3 of those present at the meeting. |
| (3) |
Any person who intends to obtain the authorization under paragraph (1) shall submit an application to the Financial Services Commission as prescribed by Presidential Decree. <Newly Inserted by Act No. 6256, Jan. 28, 2000; Act No. 8863, Feb. 29, 2008> |
| (4) |
The Financial Services Commission may attach a condition to the authorization under paragraph (1). <Newly Inserted by Act No. 6256, Jan. 28, 2000; Act No. 8863, Feb. 29, 2008> |
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| Article 8 (Requirements for Authorization) |
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| (1) |
Any person who intends to obtain an authorization for establishment of a union under Article 7 (1) shall meet the following requirements: <Amended by Act No. 6256, Jan. 28, 2000> |
| 1. |
He/she shall meet the requirements set forth in each subparagraph of Article 14 (4); |
| 2. |
He/she shall have professional human resources and physical facilities including an electronic computer system enough to protect the union members and carry out the union's business; |
| 3. |
The business plan shall be feasible and sound; |
| 4. |
The promoters shall have sufficient ability to invest, sound financial standing and good social credibility. |
| (2) |
The Financial Services Commission shall, upon receiving an application for establishment of a union, notify the applicant of whether to authorize it within a period of time prescribed by Presidential Decree. In such cases, the ground for rejection shall be clearly stated if the application is rejected. <Amended by Act No. 5739, Feb. 1, 1999; Act No. 5982, May 24, 1999; Act No. 8863, Feb. 29, 2008> |
| (3) |
Matters necessary for the detailed requirements for the authorization under paragraph (1) shall be prescribed by Presidential Decree. <Newly Inserted by Act No. 6256, Jan. 28, 2000> |
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| Article 8-2 (Public Notification of Authorization, etc.) |
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When the Financial Services Commission grants the authorization in accordance with Article 7 (1) or revokes the authorization in accordance with Article 85, it shall publish the details of such authorization or revocation in an official gazette without delay, and publicly notify them to the general public through computer telecommunications system and the like. <Amended by Act No. 8863, Feb. 29, 2008>
[This Article Newly Inserted by Act No. 6256, Jan. 28, 2000]
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| Article 9 (Common Bond and Place of Business) |
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| (1) |
The common bond of a union shall be prescribed by the articles of association mainly based on its administrative district, economic zone, life zone, workplace, organization, and so forth. In such cases, matters concerning the scope, type, and change of common bond shall be prescribed by Presidential Decree. |
| (2) |
A union's principal place of business shall be prescribed by its articles of association. |
| (3) |
A union may have branch offices with an approval from the National Federation Chairperson. |
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| Article 10 (Mandatory Descriptions of the Articles of Association) |
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The articles of association of each union shall contain the following descriptions: <Amended by Act No. 5739, Feb. 1, 1999>
| 3. |
Address of the principal place of business; |
| 4. |
Matters concerning common bond; |
| 5. |
Matters concerning qualification, admission, withdrawal, expulsion of union members; |
| 6. |
Value per invested share, and the method and term for the payment for shares; |
| 7. |
Matters concerning the rights and duties of union members; |
| 8. |
Matters concerning the scope of business and accounting; |
| 9. |
Matters concerning executives and organs; |
| 10. |
Matters concerning dissolution; |
| 11. |
Method of public notice; |
| 12. |
Matters concerning transfer of investments; |
| 13. |
Other matters necessary for management of the general meeting and so forth. |
SECTION 2 UNION MEMBER AND INVESTMENT
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| Article 11 (Eligibility for Membership) |
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| (1) |
A person shall be eligible for membership of a union, if he/she belongs to the union's common bond and has paid the first installment of his/her investment. |
| (2) |
Notwithstanding paragraph (1), a union may admit persons specified by Presidential Decree as its members from among those who do not belong to its common bond within the extent not deviating from its purpose of establishment or hindering its efficient management. <Amended by Act No. 5739, Feb. 1, 1999> |
| (3) |
The number of union members of a union shall be not less than 100 persons. |
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| Article 12 Deleted. <by Act No. 5739, Feb. 1, 1999> |
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| Article 13 (Capital) |
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The capital of a union shall be the aggregate amount of the investments paid by its members.
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| Article 14 (Share in Investments, etc.) |
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| (1) |
Each union member shall own at least one share of the investment. |
| (2) |
The value per share shall be prescribed by the articles of association. |
| (3) |
The maximum number of shares held by a union member may not exceed 10/100 of total number of outstanding shares. |
| (4) |
The minimum limit of the aggregate amount of the investments shall be as follows: <Amended by Act No. 6256, Jan. 28, 2000> |
| 1. |
In case of a local union, the amount set forth in one of the following items, depending upon the location of its principal place of business: |
| (a) |
The Special Metropolitan City or a Metropolitan City: 300 million won; |
| (c) |
Gun (including Eup and Myeon located within a Metropolitan City or Si; the same shall apply hereafter): 50 million won; |
| 2. |
In case of a workplace union: 40 million won; |
| 3. |
In case of an organization union, the amount set forth in one of the following items depending upon the location of its principal place of business: |
| (a) |
The Special Metropolitan City or a Metropolitan City: 100 million won; |
| (5) |
The investment shall be paid in cash, and shall not be set off against a claim receivable from the union. |
| (6) |
The shares in investments paid by union members may not be subject to a pledge right. <Newly Inserted by Act No. 6957, Jul. 30, 2003> |
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| Article 15 (Transfer) |
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| (1) |
A union member may transfer his/her share to another member in accordance with the provisions of the articles of association. <Amended by Act No. 5739, Feb. 1, 1999> |
| (2) |
A transferee of shares shall succeed to the rights and duties of the transferor. |
| (3) |
No union member may own a share jointly or in common with another member. |
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| Article 16 (Withdrawal) |
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| (1) |
A union member may notify of the union his/her intention to withdraw in advance to withdraw from the union in accordance with the provisions of the articles of association. |
| (2) |
A union member shall be deemed to be withdrawn from his/her union, when one of the following events or causes occurs: <Amended by Act No. 6957, Jul. 30, 2003> |
| 1. |
Forfeiture of qualification for membership; |
| 5. |
Dissolution of the legal entity, if the union member is a legal entity. |
| (3) |
Matters concerning the forfeiture of qualification for membership under paragraph (2) 1 shall be provided by the articles of association. <Amended by Act No. 5739, Feb. 1, 1999> |
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| Article 17 (Refund of the Investment to the Withdrawing Union Member) |
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A union shall refund the investments, deposits, and installment savings to its member without delay when the member withdraws from the union. In such cases, the dividend for the investment may be paid in distributing dividends to other members.
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| Article 18 (Expulsion) |
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| (1) |
A union may expel a union member by a resolution of the general meeting, if he/she falls under any of the following subparagraphs: <Amended by Act No. 6256, Jan. 28, 2000> |
| 1. |
If the union member fails to pay his/her investment or perform his/her obligation to the union; |
| 2. |
If the union member violates any provision of this Act or an order issued under this Act, or breaches any provision of the articles of association; |
| 3. |
If the union member does not use the service set forth in item (a), (b), or (f) of Article 39 (1) 1 for two years or longer; |
| 4. |
If the value of the share held by the union member has been less than one share for six months or longer. |
| (2) |
A union shall, if it intends to expel its member in accordance with paragraph (1), notify the member of the ground for expulsion at least ten days earlier than the opening date of the general meeting, and shall give him/her an opportunity to make a statement at the general meeting. |
| (3) |
A resolution adopted by the general meeting to expel a union member without giving the member an opportunity to make a statement under paragraph (2) shall not be valid or effective against the member. |
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| Article 19 (Voting Right, Elective Right, etc.) |
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| (1) |
Each union member shall have an equal right to vote and elect, regardless of the number of shares held by him/her: Provided, That a union member's rights to vote and elect may be limited, if the member is a minor or has not maintained his/her membership of the union properly for at least three months. <Amended by Act No. 6256, Jan. 28, 2000> |
| (2) |
Union members may be allowed to exercise their rights to vote and elect by proxy: Provided, That the members of a union established on the basis of a common bond of locality or an organization may not allow its members to exercise their right to vote or elect by proxy. |
| (3) |
The number of union members that one proxy is allowed to represent pursuant to paragraph (2) shall be provided by the articles of association. |
| (4) |
The proxy under paragraph (2) shall submit to the union a document certifying his/her proxy. |
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| Article 21 Deleted. <by Act No. 5739, Feb. 1, 1999> |
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| Article 22 (Request for Revocation of Resolution, etc.) |
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| (1) |
Any union member who has an objection to the effect of a resolution by the general meeting or an election of an executive may request the National Federation Chairperson to revoke the resolution or the election result with the consent from at least 1/10 of the union members within one month of the date of resolution or election. |
| (2) |
Upon receiving the request under paragraph (1), the National Federation Chairperson shall notify the requesting union member of the results of the measures taken within three months. |
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| Article 23 (General Meeting) |
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| (1) |
A union shall have the general meeting. |
| (2) |
The general meeting shall be composed of the union members, and the annual general meeting shall be called by the president of the union once every business year, while an extraordinary general meeting may be called, as specified in the articles of association, if the union president considers it necessary or upon a request of the union members or auditors pursuant to Article 26. <Amended by Act No. 6957, Jul. 30, 2003> |
| (3) |
The union president shall take the chair of the general meeting. |
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| Article 24 (Matters subject to Resolution of General Meeting, etc.) |
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| (1) |
The following matters shall be subject to resolution of the general meeting: |
| 1. |
Amendment of the articles of association; |
| 2. |
Final decision on business plan and budget; |
| 3. |
Election and dismissal of executives; |
| 4. |
Approval of the report on the settlement of accounts (including the business report, the balance sheet, the income statement, and the retained earnings appropriation plan or the deficit disposition plan; the same shall apply hereafter); |
| 5. |
Approval of the auditor's report; |
| 6. |
Dissolution, merger, split-off, or suspension of operations of the union; |
| 7. |
Expulsion of a union member; |
| 8. |
Establishment, amendment, or repeal of bylaws; |
| 9. |
Other necessary matters as specified by the articles of association. |
| (2) |
An amendment of the articles of association under paragraph (1) 1 shall be registered after obtaining approval from the National Federation Chairperson: Provided, That an amendment made due to the standard articles of association in accordance with Article 75 (1) 1 does not require the approval from the National Federation Chairperson. |
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| Article 25 (Opening and Resolution of General Meeting) |
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| (1) |
The general meeting shall be duly formed to open with the presence of a majority of the registered union members, and shall adopt a resolution with the affirmative vote of a majority of the union members present at the meeting, unless there is any provision otherwise in this Act: Provided, That the due formation of the general meeting of a union that has more than five hundred registered union members requires the presence of at least 251 union members, and a resolution thereof requires the affirmative vote of a majority of the union members present at the meeting. <Amended by Act No. 5739, Feb. 1, 1999> |
| (2) |
A resolution concerning matters specified in subparagraphs 1 and 6 of Article 24 (1) shall be adopted with the affirmative vote of at least 2/3 of the union members present at the meeting. |
| (3) |
With respect to an issue on which a conflict of interest exists between the union and its members, the interested union members may not participate in the proceedings for the resolution of the issue. <Newly Inserted by Act No. 6256, Jan. 28, 2000> |
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| Article 26 (Request for Calling General Meeting) |
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| (1) |
A union member may request the union president to call the general meeting by submitting a written request stating the purpose of the meeting and the reason for calling the meeting with the consent from at least 1/5 of the union members. |
| (2) |
The auditor may request the union president to call the general meeting by submitting a written request stating the purpose of the meeting and the reason for calling the meeting, if a wrong or fraud discovered after his/her audit pursuant to Article 37 needs to be reported to the general meeting promptly. <Amended by Act No. 6957, Jul. 30, 2003> |
| (3) |
The union president shall, upon receiving the request under paragraph (1) or (2), hold the general meeting within fifteen days. <Amended by Act No. 6957, Jul. 30, 2003> |
| (4) |
If there is no person who has an authority to call the general meeting, or the union president fails to hold the general meeting within the period of time prescribed in paragraph (3) without a justifiable ground, the auditor shall call the meeting without delay. In such cases, the auditor shall take the chair of the general meeting on behalf of the union president. <Amended by Act No. 6957, Jul. 30, 2003> |
| (5) |
If the auditor fails to call the general meeting in accordance with paragraph (4) upon the union members' request to call the meeting under paragraph (1), the representative of the union members requesting the general meeting under paragraph (1) shall call the meeting. In such cases, the representative of the union members shall take the chair of the general meeting on behalf of the union president. <Amended by Act No. 6957, Jul. 30, 2003> |
| (6) |
When the general meeting is called under paragraph (4) or (5), it shall be reported to the National Federation Chairperson in advance. <Amended by Act No. 6957, Jul. 30, 2003> |
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| Article 27 (Executives) |
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| (1) |
A union shall have no less than five, but no more than nine directors, including one president and one vice-president, and two or three auditors as its executives. |
| (2) |
The executives shall be elected by the general meeting as provided by the articles of association (a by-election to fill a vacancy of an executive shall be conducted as separately provided by the articles of association), and at least 2/3 of the executives including the union president shall be the members of the union. <Amended by Act No. 6957, Jul. 30, 2003> |
| (3) |
Any candidate for the offices of the union president or vice-president shall be elected if he/she successfully acquires the greatest number of votes from a majority of the electors, while candidates for the executives other than the aforementioned offices shall be elected in the order of votes from a majority of the electors. In such cases, the proviso to Article 25 (1) shall apply mutatis mutandis. |
| (4) |
The union president shall have overall control over the business affairs of the union, and shall represent the union. |
| (5) |
If the union president is unable to perform his/her duties because of an inevitable cause, the vice-president or one of directors in the order enumerated in the articles of associations shall act on behalf of the president. |
| (6) |
The office of executives, excluding standing executives, shall be honorary, but executives may be entitled to reimbursement for actual expenses as stipulated by the articles of association: Provided, That the office of president of a union prescribed by Presidential Decree in consideration of its size of assets, financial structure, etc. shall be standing. <Amended by Act No. 6256, Jan. 28, 2000; Act No. 11545, Dec. 11, 2012> |
| (7) |
A union prescribed by Presidential Decree in consideration of its size of assets, financial structure, etc., shall have the standing executive, not as union president. In such cases, the standing executive shall be elected by the general meeting after resolution by the board of directors, from among persons who have abundant expertise and experience in the business of unions. <Newly Inserted by Act No. 11545, Dec. 11, 2012> |
| (8) |
The remuneration for the standing union president under paragraph (6) and the standing executive under paragraph (7) shall be determined by the general meeting in accordance with the standards determined by the National Federation Chairperson. <Newly Inserted by Act No. 11545, Dec. 11, 2012> |
| (9) |
Matters necessary for the standards and requirements for the appointment of the standing executive under paragraph (7), not as union president, shall be prescribed by Presidential Decree. <Newly Inserted by Act No. 11545, Dec. 11, 2012> |
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| Article 27-2 (Restriction on Election Campaign for Executives) |
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No one shall commit any of the following conducts with intent to make him/herself or a certain person win or lose in an election for an executive of a union:
| 1. |
Offering, expressing intent to offer, or promising to offer, money, goods, entertainment, any benefit in property, or a job, private or public, to an elector; |
| 2. |
Committing any conduct set forth in subparagraph 1 toward a person who is willing to come forward as a candidate or has already come forward as a candidate with intent to prevent him/her from coming forward as candidate or pressing him/her to resign from the candidacy; |
| 3. |
Accepting any benefit or job set forth in subparagraph 1 or 2, or accepting an offer for such benefit or job. |
[Newly Inserted by Act No. 6957, Jul. 30, 2003]
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| Article 28 (Restriction on Qualification for Executives, etc.) |
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| (1) |
Any of the following persons shall not be qualified for an executive or promoter of a union: <Amended by Act No. 5739, Feb. 1, 1999, Act No. 6256, Jan. 28, 2000; Act No. 6957, Jul. 30, 2003; Act No. 11545, Dec. 11, 2012> |
| 1. |
A person declared incompetent or quasi-incompetent or a person declared bankrupt but not yet reinstated; |
| 2. |
A person in whose case three years have not passed since a sentence of imprisonment without labor or any heavier punishment imposed upon him/her by a court was completely executed (including a case where it is deemed that such sentence has been completely executed), or discharged; |
| 3. |
A person who is under the suspension of the execution of a sentence imposed upon him/her; |
| 4. |
A person who is under the suspension of the sentence of imprisonment without labor or a heavier punishment; |
| 4-2. |
A person in whose case five years have not passed since a sentence of a fine or any heavier punishment imposed upon him/her for the violation of this Act or any finance-related statute prescribed by Presidential Decree (hereafter referred to as "finance-related statute" in this Article) was completely executed (including a case where it is deemed that such sentence has been completely executed) or discharged; |
| 5. |
A person who forfeits his/her qualification or whose qualification is suspended by court judgment or operation of any other Act; |
| 6. |
Deleted; <By Act No. 6256, Jan. 28, 2000> |
| 7. |
A person in whose case five years have not passed since he/she was dismissed from office or was punished by disciplinary dismissal under this Act or any other finance-related statute (including a case where an executive is replaced by another person under Article 84 (1) 1; hereafter the same shall apply in this Article); |
| 7-2. |
A person in whose case five years have not passed since the corporation or company for which he/she had worked as an executive or employee had the permission, authorization, or registration for its business revoked under this Act or any other finance-related statute (limited to persons prescribed by Presidential Decree as those directly or substantially liable for the occurrence of the cause of revocation); |
| 7-3. |
A person in whose case the period prescribed by Presidential Decree has not passed yet since he/she was punished by the disciplinary measure of suspension from office, suspension of performance of service, or any heavier discipline prescribed by Presidential Decree under this Act or any other finance-related statute; |
| 8. |
A person in whose case, as a retired executive or resigned employee, five years (or seven years since the date of retirement or resignation, if the five years since the date of notice exceeds seven years since the date of retirement or resignation) have not passed since he/she was notified that he/she would have been punished by a demand for dismissal or disciplinary dismissal under this Act or any other finance-related statute if he/she had been the incumbent; |
| 9. |
A person in whose case, as a retired executive or resigned employee, the period specified by Presidential Decree (or six years since the date of retirement or resignation, if the period beginning on the date of notice exceeds six years after the date of retirement or resignation) has not passed since he/she was notified that he/she would have been punished by the disciplinary measure of suspension from office, suspension of performance of service, or any heavier discipline specified by Presidential Decree under this Act or any other finance-related statute if he/she had been the incumbent; |
| 10. |
A person whose qualification shall be restricted on any other ground stipulated by the articles of association. |
| (2) |
An executive shall be dismissed immediately once a cause set forth in paragraph (1) (excluding subparagraph 7-3) is discovered or occurs. <Amended by Act No. 6957, Jul. 30, 2003> |
| (3) |
An act in which an executive dismissed under paragraph (2) was involved before his/her dismissal shall not become invalid or ineffective. |
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| Article 29 Deleted. <by Act No. 5739, Feb. 1, 1999> |
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| Article 30 (Executive Officers) |
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| (1) |
A union may have a general manager or a manager as an executive officer. |
| (2) |
The criteria for unions that may have a general manager or a manager as an executive officer and the guidelines for the appointment and dismissal of such an executive officer shall be prescribed by the National Federation Chairperson. |
| (3) |
A general manager or a manager shall carry out the financial and accounting affairs of the union, and shall be responsible for the preservation of evidencing documents relating to finance and accounting, and the receipts, disbursements and safekeeping of cash. |
| (4) |
A general manager or a manager shall be appointed and dismissed by the union president after resolution by the board of directors from among the persons who have qualification acceptable to the National Federation Chairperson. |
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| Article 30-2 (Prohibition of Bribery, etc.) |
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No executive or employee of a union may demand, receive, or promise a gift or any bribery regardless of whether it is directly or indirectly related to his/her job.
[This Article Newly Inserted by Act No. 6957, Jul. 30, 2003]
law view
| Article 31 (Term of Office, etc.) |
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| (1) |
The term of office of each executive shall be four years but may be renewed consecutively: Provided, That the union president may be re-elected for two consecutive terms. <Amended by Act No. 6957, Jul. 30, 2003; Act No. 11545, Dec. 11, 2012> |
| (2) |
The term of office of executives elected at a by-election shall be the remaining term of his/her predecessor. |
| (3) |
Notwithstanding paragraph (1), the term of office of executives at the time of the establishment shall be prescribed by the articles of association within the period not exceeding four years. <Amended by Act No. 6957, Jul. 30, 2003> |
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| Article 32 (Sanction against an Executive for Failure in Performance of Obligations) |
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The board of directors may suspend an executive from his/her execution of office, if the executive fails to perform his obligation to the union within three months.
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| Article 34 (Board of Directors) |
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| (1) |
A union shall have the board of directors consisting of directors. |
| (2) |
The union president shall take the chair of the directors' meeting. |
| (3) |
A director may not participate in the proceedings of the directors' meeting for the issue on which a conflict exists between the union's interest and his/her personal interest. |
| (4) |
The board of directors shall oversee the business affairs executed by the union president and executive officers in connection with the matters resolved pursuant to Article 36 (1), and may demand them to report necessary matters to the board of directors. <Newly Inserted by Act No. 6957, Jul. 30, 2003> |
law view
| Article 39 (Types of Business, etc.) |
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| (1) |
A union shall engage in the following business activities in order to accomplish its purpose: <Amended by Act No. 5739, Feb. 1, 1999; Act No. 8145, Dec. 30, 2006> |
| (a) |
Receiving and disbursing deposits and installment savings to and from its members; |
| (b) |
Lending loans to its members; |
| (d) |
Providing service commissioned by the State, a public organization, the National Federation or a financial institution; |
| (e) |
Safekeeping securities, precious metals, and valuable goods for its members; |
| (g) |
Issuance and management of electronic means for debit payment and the settlement of such payments as prescribed by the Electronic Financial Transactions Act (in such cases, the foregoing shall apply only to the unions that jointly engage in the business of the National Federation under Article 78 (1) 5 (g)); |
| (h) |
Issuance, management, and sale of electronic means for advance payment and the settlement of such payments as prescribed by the Electronic Financial Transactions Act (in such cases, the foregoing shall apply only to the unions that jointly engage in the business of the National Federation under Article 78 (1) 5 (h)); |
| 3. |
Mutual aid service for its members; |
| 4. |
Educational activities for enhancing economic and social status of its members; |
| 5. |
Business activities commissioned by the National Federation; |
| 6. |
Business activities commissioned by the State or a public organization, and business activities prescribed by other statutes as the business activities of the union; |
| 7. |
Business activities incidental to the business activities set forth in subparagraphs 1 through 6. |
| (2) |
Matters necessary for the scope of welfare services under paragraph (1) 2 and the implementation of such service shall be prescribed by Presidential Decree. |
| (3) |
The Financial Services Commission may publicly notify the work process for the deposits, installment savings, or loans in connection with the credit service provided by unions under paragraph (1) 1. <Newly Inserted by Act No. 5739, Feb. 1, 1999; Act No. 8863, Feb. 29, 2008> |
law view
| Article 41 (Borrowing of Loans) |
|
| (1) |
A union may borrow the fund within the limit of the amount equivalent to 5/100 of its total assets or the amount of its equity capital, whichever is greater, for the purpose of executing its business activities under Article 39, as prescribed by Presidential Decree. |
| (2) |
Notwithstanding paragraph (1), a union may borrow the fund exceeding the limit of the amount equivalent to 5/100 of its total assets or the amount of its equity capital, whichever is greater, if it obtains approval from the National Federation Chairperson in accordance with the guidelines prescribed by the Financial Services Commission. <Amended by Act No. 8863, Feb. 29, 2008> |
[This Article Wholly Amended by Act No. 6957, Jul. 30, 2003>
law view
| Article 42 (Limit of Loans, etc. per Person) |
|
A union shall not grant one person a loan, etc. exceeding the limit prescribed by Presidential Decree within the limit of the amount equivalent to 20/100 of its equity capital or 1/100 of its total assets, whichever is greater, except as approved by the National Federation Chairperson in accordance with the guidelines prescribed by the Financial Services Commission. In such cases, all loans, etc. granted in the name of other person but on a principal's account shall be deemed to be the loans, etc. granted to the principal. <Amended by Act No. 6256, Jan. 28, 2000; Act No. 6957, Jul. 30, 2003; Act No. 8863, Feb. 29, 2008>
law view
| Article 43 (Reserve for Repayment) |
|
| (1) |
A union shall, as the reserve for repayment, keep at least 10/100 of the balance of deposits and installment savings as of the end of the preceding month as prescribed by Presidential Decree, and shall deposit part of the reserve for repayment with the National Federation in accordance with the rate and method prescribed by Presidential Decree. <Amended by Act No. 5739, Feb. 1, 1999; Act No. 6256, Jan. 28, 2000> |
| (2) |
Matters necessary for the management of the reserve for repayment deposited with the National Federation under paragraph (1) and the disposition of gains from the management thereof shall be prescribed by Presidential Decree. <Amended by Act No. 5739, Feb. 1, 1999; Act No. 6256, Jan. 28, 2000; Act No. 6957, Jul. 30, 2003> |
law view
| Article 44 (Investment and Management of Spare Cash) |
|
A union shall invest and manage its spare cash in one of the following manners: <Amended by Act No. 5739, Feb. 1, 1999; Act No. 6256, Jan. 28, 2000; Act No. 6957, Jul. 30, 2003>
| 1. |
Deposit with the National Federation; |
| 2. |
Deposit with a financial institution specified by Presidential Decree; |
| 3. |
Purchase of national bonds, public bonds, or securities of the types and within the limit specified by Presidential Decree. |
law view
| Article 45 (Limit to Possession of Real Property) |
|
| (1) |
A union may not own real property, except as necessary for its business or inevitable for the recovery of its claims. <Amended by Act No. 5739, Feb. 1, 1999> |
| (2) |
Deleted. <by Act No. 5739, Feb. 1, 1999> |
law view
| Article 46 (Business Year) |
|
The business year of a union shall be prescribed by its articles of association.
law view
| Article 47 (Accounting and Settlement of Accounts) |
|
| (1) |
The accounts of a union shall be classified into general accounts and special accounts, and the business divisions by accounts shall be prescribed by the articles of association. |
| (2) |
Matters necessary for the accounting standards and the settlement of accounts for a union shall be prescribed by the Financial Services Commission: Provided, That the detailed matters including the titles of accounts and the forms of accounting books may be prescribed separately by the National Federation Chairperson. <Amended by Act No. 6957, Jul. 30, 2003; Act No. 8863, Feb. 29, 2008> |
| (3) |
Deleted. <by Act No. 5739, Feb. 1, 1999> |
| (4) |
A union shall submit to the National Federation Chairperson the report on the settlement of accounts as of the end of each business year within 30 days after it obtains approval on the report from the general meeting. |
| (5) |
A union whose total assets as of the end of the preceding year reach or exceed the reference amount prescribed by Presidential Decree shall undergo the audit every year by an auditor defined by Article 3 of the Act on External Audit of Stock Companies, if the Financial Services Commission concludes it necessary to conduct an external audit for the protection of members of the union and thus requests an auditor to conduct such an audit: Provided, That the foregoing shall not apply to the union that has undergone the inspection conducted by the Financial Services Commission in the corresponding year. <Amended by Act No. 6957, Jul. 30, 2003; Act No. 8863, Feb. 29, 2008> |
| (6) |
The National Federation Chairperson may demand a union to replace its auditor with a person nominated by the Chairperson or appoint such a person as its auditor, if the union subject to the audit under paragraph (5) falls under any of the grounds prescribed by Presidential Decree. <Newly Inserted by Act No. 6957, Jul. 30, 2003> |
| (7) |
The provisions of the first sentence of Article 4 (1), paragraphs (4) and (5) of the same Article, Articles 4-4, 4-5, 5 (1), 6, 7, 8 (1), 9 through 11, 14, 15-2, 16-2, and 17 through 17-4 of the Act on External Audit of Stock Companies shall apply mutatis mutandis to unions and auditors. In such cases, the "Securities and Futures Commission" referred to in Articles 4-4, 4-5, 8 (1), 14, 15-2 and 16-2 of the same Act shall be construed as the "Governor of Financial Supervisory Service," and the "general meeting of shareholders" referred to in Articles 10 and 11 of the same Act as the "general meeting". <Newly Inserted by Act No. 6957, Jul. 30, 2003> |
law view
| Article 48 (Business Plan and Budget) |
|
| (1) |
A union shall prepare its business plan and budget (including cases of drawing up a revised supplementary budget) every business year in compliance with the guidelines for business planning and budgeting established by the National Federation Chairperson, and shall obtain approval from the general meeting: Provided, That the foregoing shall not apply to the revision of the business plan and budget due to an inevitable cause such as an increase in interest expense. |
| (2) |
Deleted. <by Act No. 5739, Feb. 1, 1999> |
law view
| Article 49 (Legal Reserve) |
|
| (1) |
A union shall set aside for legal reserve at least 10/100 of its income every business year until the amount reaches twice as much as the total amount of its capital. <Amended by Act No. 6957, Jul. 30, 2003> |
| (2) |
A union shall not use the reserve under paragraph (1) or appropriate it for dividends except where the union becomes split off or dissolved. |
law view
| Article 50 (Voluntary Reserve) |
|
A union may set aside a portion of its income for business reserve every business year.
law view
| Article 51 (Special Reserve) |
|
A union may accumulate some amount every business year as a special reserve in order to cover losses and appropriate it for the damages sustained due to a theft, robbery, fire, and any other disaster or accident beyond its control, as provided by its articles of association.
law view
| Article 52 (Disposition of Loss) |
|
| (1) |
The loss incurred to a union during its business year shall be set off with the unappropriated retained earnings, special reserve, and voluntary reserve in the enumerated order, while the remaining loss, if any, shall be carried forward to the following business year. |
| (2) |
If a union ends up with a loss for several business years consecutively and there is no reserve for setting off such losses with, the union may reduce its capital after resolution by the affirmative vote of at least 2/3 of its members present at the general meeting and then with an approval from the National Federation Chairperson to the effect that the capital invested by each union member shall decrease proportionately. |
law view
| Article 53 (Disposition of Income) |
|
| (1) |
A union may not dispose of its income unless and until it sets off its loss completely. |
| (2) |
The income left over after setting off with the reserves pursuant to Articles 49 through 51 shall be distributed to union members in proportion to the shares in the investments after resolution by the general meeting. In such cases, the dividends may be distributed simultaneously with the dividends proportionate to each union member's performance of the use of the services of the union, as provided by the articles of association. |
SECTION 6 DISSOLUTION, SPLIT-OFF, AND MERGER
law view
| Article 54 (Dissolution) |
|
| (1) |
A union shall be dissolved if any of the following events or causes occurs: |
| 1. |
If a cause for dissolution prescribed by the articles of association occurs; |
| 2. |
If the general meeting resolves to dissolve the union; |
| 3. |
If it is merged or bankrupt; |
| 4. |
If the authorization for its establishment is revoked. |
| (2) |
When dissolution is resolved by the general meeting under paragraph (1) 2, it shall be reported to the National Federation without delay. |
| (3) |
A union dissolved pursuant to paragraph (1) shall file for the registration of dissolution within fourteen days: Provided, That the surviving union shall file for the registration of change, in case where a union is merged into another union. |
law view
| Article 55 (Merger and Split-Off) |
|
| (1) |
A union may be merged or split off by a resolution of the general meeting. In such cases, the provisions of Articles 7 through 10 and the proviso of Article 25 (1) shall apply mutatis mutandis. |
| (2) |
The Government or the National Federation may provide a financial aid, etc. within the limit of its budget, if considered necessary to promote a merger of unions. |
| (3) |
The surviving union or the newly established union as a consequence of a merger or split-off shall succeed to the common bond, rights and obligations of the union disappearing subsequent to the merger or split-off. |
law view
| Article 56 (Supervision over Liquidation Affairs) |
|
The affairs relating to the liquidation of a union shall be supervised by the National Federation Chairperson.
law view
| Article 57 (Liquidator) |
|
| (1) |
The union president shall become the liquidator in the dissolution of the union, except for bankruptcy: Provided, That the foregoing shall not apply, where the National Federation Chairperson appoints other liquidator in accordance with the provisions of Presidential Decree. |
| (2) |
The liquidator shall register the ground for dissolution, the date of dissolution, the name and address of the liquidator, and the restrictions on the liquidators' power to represent, if any, with the competent authorities having jurisdiction over the union's principal place of business and its branch offices respectively. The foregoing shall also apply to a change, if any, in the registered records. |
law view
| Article 58 (Residual Property after Dissolution) |
|
The residual property left over after liquidation, if any, after fully performing the obligations of the dissolved union shall be disposed of in accordance with the provisions of the articles of association.
law view
| Article 60 (Application Mutatis Mutandis of the Civil Act, etc.) |
|
CHAPTER III NATIONAL FEDERATION
SECTION 1 ESTABLISHMENT AND CAPITAL
law view
| Article 61 (Establishment) |
|
| (1) |
The National Federation composed of unions shall be established to guide and oversee the business of the unions and promote the enhancement of their common interest and the healthy growth. |
| (2) |
The provisions of Articles 7 and 8 shall apply mutatis mutandis to the National Federation. |
law view
| Article 62 (Membership) |
|
All unions shall become members of the National Federation.
law view
| Article 63 (Capital and Investment) |
|
| (1) |
The National Federation shall be capitalized by the investments paid by unions. |
| (2) |
Each union shall invest in at least one share of the capital. |
| (3) |
The value per share and the guidelines for the payment shall be prescribed by the articles of association, and the liability of each union shall be limited to the amount of the investment paid by it. |
| (4) |
The investment in the National Federation by a union shall be paid in cash, and shall not set off against any of the union's claims against the National Federation. |
| (5) |
A union's shares invested in the National Federation may be transferred to another union with an approval from the National Federation Chairperson. In such cases, the transferee shall succeed to the rights and obligations of the transferor. |
| (6) |
Where a union is dissolved, the National Federation Chairperson shall refund the investment to the union to reduce the capital by the amount equivalent to the share invested by the union or may allow the dissolving union to transfer its share to another union. |
law view
| Article 64 (Entries in the Articles of Association) |
|
The articles of association of the National Federation shall contain the following descriptions:
| 3. |
Address of its principal place of business; |
| 4. |
Matters concerning the details of its business and accounting; |
| 5. |
Value per share of the capital and the method and time for the payment for the shares; |
| 6. |
Matters concerning imposition and collection of membership fee; |
| 7. |
Matters concerning its organs and executives; |
| 8. |
Method of public notice; |
| 9. |
Other necessary matters. |
law view
| Article 65 (Business Districts, Offices, etc.) |
|
| (1) |
The National Federation composed of credit unions shall be only one throughout the country, and it shall cover the whole territory of the Republic of Korea as its business district. |
| (2) |
The National Federation shall have its principal office as prescribed by the articles of association, and may have regional offices as necessary. |
| (3) |
A regional office under paragraph (2) may establish and run a council in order to exchange information for the development of the unions and give assistance to the unions for the efficient management of their business affairs. |
| (4) |
Matters concerning the organization and management of the council under paragraph (3) and other necessary matters shall be provided by the articles of association. |
law view
| Article 66 (Membership Fees) |
|
The National Federation may charge and receive membership fees from unions by a resolution of the general meeting.
law view
| Article 67 (Dissolution) |
|
The matters concerning the dissolution of the National Federation shall be prescribed by an Act.
law view
| Article 68 (General Meeting) |
|
| (1) |
The National Federation shall have the general meeting. |
| (2) |
The general meeting shall be composed of the National Federation Chairperson and the representatives from the unions, and shall be classified into an annual general meeting and a special general meeting. |
| (3) |
The annual general meeting shall be called by the National Federation Chairperson once every year, while a special meeting shall be called when the National Federation Chairperson considers it necessary or at the request of the representative of the unions under Article 26, which shall apply mutatis mutandis under paragraph (4), as prescribed by the articles of association, and the National Federation Chairperson shall take the chair of the meeting. |
| (4) |
The provisions of the main sentence of Article 19 (1), the main sentence of Article 25 (1), and Article 26 (1) through (5) shall apply mutatis mutandis to the general meeting of the National Federation. In such cases, the term "auditor" in Article 26 shall be construed as the "representative of the Audit Committee under Article 76 (3)". <Amended by Act No. 6957, Jul. 30, 2003> |
law view
| Article 69 (Matters subject to Resolution of General Meeting) |
|
| (1) |
The following matters shall be subject to resolution of the general meeting, except as otherwise provided in this Act: <Amended by Act No. 6256, Jan. 28, 2000> |
| 1. |
Amendment of the articles of association; |
| 2. |
Establishment, amendment, and repeal of the bylaws; |
| 3. |
Method for imposing membership fee and determining the amount; |
| 4. |
Approval of the business plan, budget, and the report on the settlement of accounts; |
| 5. |
Approval of auditor's report; |
| 6. |
Matters concerning appointment and dismissal of executives; |
| 7. |
Other matters brought up by a resolution of the board of directors or the consent of at least one-fifths of all unions. |
| (2) |
An amendment to the articles of association under paragraph (1) 1 shall be registered without delay after obtaining approval from the Financial Services Commission. <Amended by Act No. 8863, Feb. 29, 2008> |
law view
| Article 71 (Fixed Number of Executives) |
|
| (1) |
The National Federation shall have no less than 15, but no more than 25 directors as executives including one Chairperson, one President for credit and mutual aid services, and Director for inspection and supervision. |
| (2) |
The Chairperson, the President for credit and mutual aid services, and the Director for inspection and supervision among directors shall be standing executives. |
| (3) |
The executives other than the standing executives under paragraph (2) shall be non-standing, but may be entitled to reimbursement for actual expenses as prescribed by the articles of association. |
[This Article Wholly Amended by Act No. 6957, Jul. 30, 2003]
law view
| Article 71-2 (Appointment of Executives and Requirements for Qualification) |
|
| (1) |
The executives shall be elected at the general meeting as prescribed by the articles of association, and at least 1/3 of the executives including the President for credit and mutual aid services and the Director for inspection and supervision shall be elected from among the persons who are not an executive or a senior officer of a union. |
| (2) |
The National Federation Chairperson shall be a member of a union. |
| (3) |
The President for credit and mutual aid service, the Director for inspection and supervision, and the directors who are not executives or senior officers of unions (hereafter referred to as "professional directors") shall be elected from among persons who have good expertise and experience in the area of finance and meet the requirements prescribed by Presidential Decree. |
| (4) |
A union president shall, if elected to the National Federation Chairperson, shall resign from his/her current office before inauguration. |
| (5) |
The matters concerning the method of election of executives, etc. shall be prescribed by the articles of association, if there is no relevant provision in this Act. |
| (6) |
The provision of Article 28 shall apply mutatis mutandis to the executives of the National Federation. |
[This Article Newly Inserted by Act No. 6957, Jul. 30, 2003]
law view
| Article 73 (Employees) |
|
| (1) |
Employees shall be appointed and dismissed by the National Federation Chairperson: Provided, That the employees who engage in the business affairs assigned to the President of credit and mutual aid services under Article 72 (2) shall be appointed and dismissed by the National Federation Chairperson after consultation with the President for credit and mutual aid services. <Amended by Act No. 6957, Jul. 30, 2003> |
| (2) |
Deleted. <Amended by Act No. 6957, Jul. 30, 2003> |
law view
| Article 74 (Board of Directors) |
|
| (1) |
The National Federation shall have the board of directors. |
| (2) |
The directors' meeting formed with directors shall be convened by the National Federation Chairperson as prescribed by the articles of association, and the National Federation Chairperson shall take the chair of the meeting. |
| (3) |
The National Federation Chairperson shall, upon the request of five or more directors, convene the directors' meeting without delay. <Amended by Act No. 6957, Jul. 30, 2003> |
| (4) |
The National Federation may have a committee composed of three or more directors within the board of directors for deliberation on a specialized business such as credit service as prescribed by the articles of association. <Amended by Act No. 6957, Jul. 30, 2003> |
law view
| Article 75 (Matters subject to Resolution of the Board of Directors) |
|
| (1) |
The following matters shall be subject to resolution of the board of directors: <Amended by Act No. 6256, Jan. 28, 2000> |
| 1. |
Establishment, amendment, and repeal of the standard articles of association for unions; |
| 2. |
Establishment, amendment, and repeal of the standard regulations for unions; |
| 3. |
Establishment, amendment, and repeal of regulations; |
| 4. |
Deleted; <Amended by Act No. 6957, Jul. 30, 2003> |
| 5. |
Acquisition and disposition of fundamental assets; |
| 6. |
Maximum limit of borrowed loans; |
| 7. |
Matters delegated by the general meeting and matters to be brought up before the general meeting; |
| 7-2. |
Matters considered necessary by the National Federation Chairperson or at least 1/3 of directors; |
| 8. |
Important matters other than those within the authority of the general meeting under any provision of a statute or the articles of association. |
| (2) |
The Financial Services Commission may demand the board of directors to revise the standard articles of association or the standard regulations, if it finds that any provision of the standard articles of association or the standard regulations is unlawful or might hinder the sound management of unions. In such cases, the board of directors shall respond accordingly to such a demand. <Amended by Act No. 8863, Feb. 29, 2008> |
| (3) |
The provisions of Article 34 (3) and Article 36 (2) and (3) shall apply mutatis mutandis to the National Federation. |
| (4) |
The board of directors shall supervise the business affairs executed by the standing executives in connection with the matters resolved under paragraph (1), and may demand them to report necessary matters to the board of directors. <Newly Inserted by Act No. 6957, Jul. 30, 2003> |
law view
| Article 76 (Audit Committee) |
|
| (1) |
The National Federation shall establish a committee within the board of directors for auditing the business performance, accounting, etc. of the National Federation (hereafter referred to as the "Audit Committee"). |
| (2) |
The Audit Committee shall be composed of three or more directors, while at least 2/3 of all committee members shall be comprised of professional directors. |
| (3) |
The Audit Committee shall, by a resolution, select a person who shall represent the committee. |
| (4) |
If the composition of the Audit Committee fails to conform to the requirements under paragraph (2) due to resignation or death of a member, or any other reason, the general meeting initially convened after occurrence such an event or cause shall take a measure to make the composition of the Audit Committee to conform to the requirements under paragraph (2). |
[This Article Wholly Amended by Act No. 6957, Jul. 30, 2003]
law view
| Article 76-3 (Guidelines for Internal Control, etc.) |
|
| (1) |
The National Federation shall comply with statutes, and shall establish basic procedures and guidelines with which its executives and employees shall comply in performing their duties (hereafter referred to as "guidelines for internal control"). |
| (2) |
The National Federation shall have one compliance officer responsible for monitoring whether the guidelines for internal control are complied with, conducting an investigation of a violation of the guidelines for internal control, if such a violation occurs, and then reporting the results of his/her investigation to the Audit Committee (hereafter referred to as the "compliance officer"). |
| (3) |
The appointment and dismissal of the compliance officer by the National Federation Chairperson shall be subject to resolution of the board of directors. |
| (4) |
The compliance officer shall meet the following requirements for qualification: <Amended by Act No. 8852, Feb. 29, 2008; Act No. 8863, Feb. 29, 2008; Act No. 10866, Jul. 21, 2011> |
| 1. |
He/she shall be a person who has any of the following career experience: |
| (b) |
Any person who holds a master's degree in finance-related area and has a career of at least five years as a researcher, or an assistant professor or higher at a research institute, university or college; |
| (c) |
Any person who is licensed as a lawyer or certified public accountant and has career experience of engaging in a business relating to such license at least five years; |
| (d) |
Any person who has career experience of working for the Ministry of Strategy and Finance, the Financial Services Commission or the Financial Supervisory Service at least five years and in whose case five years have passed since his/her retirement or resignation from the agency or institution; |
| 2. |
Any person who does not fall under any subparagraph of Article 28 (1); |
| 3. |
There shall be no record that he/she has ever been subject to a measure corresponding to a demand for caution or warning from the Financial Services Commission or the Governor of the Financial Supervisory Service due to a violation of a finance-related statute during the latest five years. |
| (5) |
Matters necessary for guidelines for internal control and the compliance officer shall be prescribed by Presidential Decree. |
[This Article Newly Inserted by Act No. 6957, Jul. 30, 2003]
law view
| Article 76-4 (Appointment of Representative) |
|
The National Federation Chairperson and the President for credit and mutual aid services may appoint a representative who shall have an authority to do all acts on behalf of them within or without a trial in connection with the business affairs of the National Federation from among the Director for inspection and supervision or employees, as prescribed by the articles of association. <Amended by Act No. 6957, Jul. 30, 2003>
[This Article Newly Inserted by Act No. 6204, Jan. 28, 2000]
[Moved from Article 76-2]
law view
| Article 77 (Training Center) |
|
| (1) |
The National Federation may have a training center. |
| (2) |
Matters necessary for the establishment and organization of the training center shall be prescribed by the articles of association. |
law view
| Article 78 (Types of Business, etc.) |
|
| (1) |
The National Federation shall carry out the following business activities in order to achieve its purpose of business: <Amended by Act No. 5739, Feb. 1, 1999; Act No. 8145, Dec. 31, 2006; Act No. 8635, Aug. 3, 2007> |
| 1. |
Guidance, coordination, survey, research, and public relations relating to the business of unions; |
| 2. |
Educational programs for the union members and the executives and employees of unions; |
| 3. |
Inspection and supervision over unions; |
| 4. |
Supports to the business of unions; |
| (a) |
Receipt and management of deposits, installment savings, repayment reserve, etc. from unions; |
| (b) |
Lending funds to unions; |
| (c) |
Domestic and foreign exchange services for unions and their members; |
| (d) |
Vicarious execution of the business of the State, a public organization or a financial institution; |
| (e) |
Payment guarantee for unions and discount of notes for unions; |
| 6. |
Mutual aid service for unions and their members; |
| 7. |
Business commissioned or subsidized by the State or a public organization; |
| 8. |
Business incidental to the business activities under subparagraph 1 through 7, and |
| 9. |
Other businesses necessary for the achievement of its purpose. |
| (2) |
The National Federation may borrow funds for carrying on its business activities under paragraph (1). <Amended by Act No. 5739, Feb. 1, 1999> |
| (3) |
The National Federation may invest in other legal entity, if necessary for carrying on the business activities under paragraph (1). <Amended by Act No. 5739, Feb. 1, 1999> |
| (4) |
The union members' use of the services shall be deemed to be the use by the unions themselves. |
| (5) |
The National Federation shall, whenever it intends to borrow a fund (excluding the cases prescribed by Presidential Decree, considering the purpose, size, etc. of loan) or invest a fund (excluding the cases prescribed by Presidential Decree, considering the purpose, size, etc. of investment), obtain approval from the Financial Services Commission in advance. <Newly Inserted by Act No. 6957, Jul. 30, 2003; Act No. 8863, Feb. 29, 2008> |
law view
| Article 78-2 (Use of Service by Non-Unions) |
|
| (1) |
The National Federation may allow persons who are not unions to use the service under Article 78 (1) 5 (b) (applicable only to the portion of loans not lendable by a union due to the limit of loan to one person under Article (42) or the service under subparagraph 6 of the said paragraph. In such cases, the terms "unions" in Article 78 (1) 5 (b) and "unions and their members" shall be construed as "persons who are not unions". |
| (2) |
The loan size, the limit of loan to one person, etc. in lending a loan under paragraph (1) shall be prescribed by Presidential Decree. |
[This Article Newly Inserted by Act No. 6957, Jul. 30, 2003]
law view
| Article 79 (Investment and Management of Fund) |
|
| (1) |
The National Federation shall invest and manage the fund including the deposits, installment savings, repayment reserve, etc. received from unions under Article 78 (1) 5 (a) in any of the following manners: |
| 1. |
Lending loans to unions; |
| 2. |
Purchase of national bonds, public bonds, corporate bonds, and other securities; |
| 3. |
Deposit with a financial institution specified by Presidential Decree; |
| 4. |
Other manners prescribed by Presidential Decree. |
| (2) |
The classes and limit of securities that the National Federation may purchase under paragraph (1) 2 shall be prescribed by Presidential Decree. |
[This Article Newly Inserted by Act No. 6957, Jul. 30, 2003]
law view
| Article 80 (Establishment of Personnel Management Committee) |
|
| (1) |
The National Federation may have the personnel management committee for personnel exchange, etc. between unions. |
| (2) |
Matters concerning the organization and management of the personnel management committee shall be prescribed by the bylaws of the National Federation. |
SECTION 4 CREDIT UNION DEPOSITORS PROTECTION FUND
law view
| Article 80-2 (Establishment, etc. of the Credit Union Depositors Protection Fund) |
|
| (1) |
The National Federation shall establish and manage the fund for protection of credit union depositors (hereafter referred to as the "fund") at the National Federation in order to guarantee the refund of deposits and installment savings paid by union members (including non-union members under Article 40; hereafter referred to as "members, etc." in this Section), special deposits to clear cashier's checks of the National Federation, etc. (hereafter referred to as "deposits, etc.") up to the amount prescribed by Presidential Decree and promote the healthy growth of unions. <Amended by Act No. 8840, Jan. 17, 2008> |
| (2) |
Any union and the National Federation shall join the fund under paragraph (1). <Amended by Act No. 8840, Jan. 17, 2008> |
| (3) |
The National Federation shall have the Fund Management Committee for deliberation and decision-making on important matters concerning the management of fund. |
| (4) |
The National Federation shall pay deposits, etc. under paragraph (1) in subrogation of a union or other accounts of the National Federation as prescribed by Presidential Decree, if the union or other such accounts are unable to pay such deposits, etc. to its members, etc. <Amended by Act No. 8840, Jan. 17, 2008> |
| (5) |
Matters necessary for the organization, management, etc. of the Fund Management Committee under paragraph (3) shall be prescribed by Presidential Decree. |
[This Article Newly Inserted by Act No. 6957, Jul. 30, 2003]
law view
| Article 80-3 (Raising, Management, etc. of Fund) |
|
| (1) |
The fund shall be raised from the following sources: <Amended by Act No. 8840, Jan. 17, 2008> |
| 1. |
Contributions paid by unions; |
| 2. |
Funds contributed, transferred and borrowed from other accounts of the National Federation; |
| 3. |
Borrowed loans prescribed by Presidential Decree; |
| 4. |
Gains accrued from management of the fund; |
| (2) |
Matters necessary for the raising and management of the fund under each subparagraph of paragraph (1) shall be prescribed by Presidential Decree. |
| (3) |
A union and other accounts of the National Federation may not claim the refund of the contribution paid in accordance with paragraph (1) 1 and 2. <Amended by Act No. 8840, Jan. 17, 2008> |
[This Article Newly Inserted by Act No. 6957, Jul. 30, 2003]
law view
| Article 80-4 (Acquisition of Claims, etc.) |
|
| (1) |
The National Federation shall, if it pays by subrogation under Article 80-2 (4), acquire the rights held by the members, etc. of the union within the extent of the amount paid. |
| (2) |
The National Federation may, on behalf of the members, etc. of a union, set off the claims held by such members, etc. for deposits, installment savings, etc. (excluding the claims put as security for the members themselves or others) against their obligations (excluding obligations of surety), as of the public notification date of the payment. |
| (3) |
The National Federation may withhold the payment for the amount prescribed by Presidential Decree for obligations of surety owed by the members, etc. to the union, notwithstanding Article 80-2 (4). |
[This Article Newly Inserted by Act No. 6957, Jul. 30, 2003]
law view
| Article 80-5 (Exercise of Right to Claim Damages, etc.) |
|
| (1) |
The National Federation may, if it makes a payment by subrogation under Article 80-2 (4), demand the union to claim damages against the executives and employees, former or incumbent, of the union, who are found liable for the insolvency of the union (including its legal entity in liquidation or bankruptcy for the purpose of this Article only), a person who falls under any of subparagraphs of Article 401-2 (1) of the Commercial Act, or any other third party. |
| (2) |
The National Federation may claim damages in subrogation of a union immediately, if the union does not follow its demand under paragraph (1). |
| (3) |
The National Federation may conduct an investigation into the business affairs and the status of assets of a union, if necessary for demanding to compensate for damages and exercising by subrogation the right to claim for damages under the provisions of paragraphs (1) and (2). |
| (4) |
If a judgment is given in favor of the National Federation as a result of its exercise by subrogation of a right to claim for damages under paragraph (2), the union concerned shall pay all expenses incurred therefrom. |
[This Article Newly Inserted by Act No. 6957, Jul. 30, 2003]
law view
| Article 81 (Business Budget, Settlement of Accounts, etc.) |
|
| (1) |
The National Federation shall prepare the business plan and budget in writing every business year, and shall obtain approval from the general meeting. |
| (3) |
The National Federation shall submit the report on the settlement of accounts for each business year, the audit report by the Audit Committee, and the auditor's report by an external auditor for approval within three months after the end of the corresponding business year. |
| (4) |
The National Federation shall submit the report on the settlement of accounts and the auditor's report approved under paragraph (3) to the Financial Services Commission within two weeks after the closing of its annual general meeting. <Amended by Act No. 8863, Feb. 29, 2008> |
[This Article Wholly Amended by Act No. 6957, Jul. 30, 2003]
law view
| Article 82 (Reduction of Invested Capital) |
|
The National Federation may reduce the amount of its capital with a resolution of the general meeting, if it suffers losses continuously over several business years and there is no reserve available for offset.
law view
| Article 83 (Supervision by the Financial Services Commission, etc.) |
|
| (1) |
The Financial Services Commission shall supervise the business affairs of unions and the National Federation, and may issue an order necessary for supervision. <Amended by Act No. 8863, Feb. 29, 2008> |
| (2) |
The Governor of the Financial Supervisory Service may assign an employee of the agency to conduct an inspection into the business affairs or assets of a union or the National Federation. <Amended by Act No. 6204, Jan. 28, 2000> |
| (3) |
The Governor of the Financial Supervisory Service may demand a union or the National Federation to submit a report or data relating to its business affairs or assets, dispatch a person concerned to appear before the Service to state his/her opinion, if the Governor considers it necessary for the inspection under paragraph (2). <Amended by Act No. 6204, Jan. 28, 2000> |
| (4) |
Any person who conducts the inspection under paragraph (2) shall present a certificate showing his/her authority to the persons concerned. <Newly Inserted by Act No. 6204, Jan. 28, 2000> |
| (5) |
The union or the National Federation that undergoes the inspection of the Financial Supervisory Service shall reimburse the expenses as alloted for such inspection to the Financial Supervisory Service. |
| (6) |
Matters necessary for the rate and limit of the alloted expenses and the reimbursement for such expenses under paragraph (5) shall be prescribed by Presidential Decree. <Amended by Act No. 6204, Jan. 28, 2000> |
law view
| Article 83-2 (Public Notice of Business Management) |
|
Each union shall publicly notify the important information and data concerning its business management status as prescribed by the Financial Services Commission. <Amended by Act No. 8863, Feb. 29, 2008>
[This Article Newly Inserted by Act No. 5739, Feb. 1, 1999]
law view
| Article 83-3 (Guidelines for Soundness in Business Management) |
|
| (1) |
Each union and the National Federation shall comply with the guidelines for soundness in business management established by the Financial Services Commission pursuant to the provisions of Presidential Decree concerning the following matters in order to maintain soundness in their business management and prevent a fraud or an accident in financial transactions: <Amended by Act No. 8863, Feb. 29, 2008> |
| 1. |
Matters concerning soundness in financial structure; |
| 2. |
Matters concerning soundness in assets; |
| 3. |
Matters concerning accounting and settlement of accounts; |
| 4. |
Matters concerning risk management; |
| 5. |
Other matters necessary for securing the soundness in business management. |
| (2) |
When the Financial Services Commission finds that the soundness in business management of the National Federation is likely to be severely impaired because of its failure in meeting the guidelines for soundness in business management under paragraph (1) or any other cause, it may issue an order to take a measure for improving the state of its business management by increasing its capital, reducing its assets, etc. <Newly Inserted by Act No. 6957, Jul. 30, 2003; Act No. 8863, Feb. 29, 2008> |
[This Article Newly Inserted by Act No. 6204, Jan. 28, 2000]
law view
| Article 83-4 (Submission of Business Report) |
|
| (1) |
Each union shall submit a monthly report with the details of business affairs in the form prescribed by the Governor of the Financial Supervisory Service to the National Federation Chairperson by the end of next month. |
| (2) |
The report under paragraph (1) shall be signed or sealed by the representative and the officer in charge or their deputies. |
| (3) |
The provisions of paragraphs (1) and (2) shall apply mutatis mutandis to the National Federation. In such cases, the term "National Federation Chairperson" in paragraph (1) shall be construed as the "Governor of the Financial Supervisory Service". |
[This Article Newly Inserted by Act No. 6957, Jul. 30, 2003]
law view
| Article 83-5 (Openness in Management) |
|
| (1) |
The union president shall keep the articles of association, minutes of general meetings, minutes of directors' meetings, a list of union members, and reports on the settlement of accounts at the principal place of business: Provided, That a report on settlement of accounts shall be made available by no later than one week before the opening date of the pertinent annual general meeting. |
| (2) |
Any union member or creditor of a union may inspect minutes of directors' meetings (limited to union members) and other documents specified in paragraph (1) or may request the union to deliver copies of such documents at any time during business hours. In such cases, a union member or creditor shall pay fees prescribed by the union therefor. |
| (3) |
Union members may, with consent from at least 100 members or at least 3/100 of all members, request the union to permit them to inspect the union's accounting books and documents or to deliver copies thereof. |
| (4) |
No union shall reject a request made pursuant to paragraph (3), unless there exists any special reason, and a union that intends to reject such request shall notify the requesting person of the reasons therefor in writing. |
[This Article Newly Inserted by Act No. 11545, Dec. 11, 2012]
law view
| Article 84 (Administrative Dispositions against Executives and Employees) |
|
| (1) |
The Financial Services Commission may require a union or the National Federation to take any of the following measures against an executive or an employee of a union or the National Federation who fails to follow a procedure or perform his/her duty in compliance with this Act, an order issued under this Act, the articles of association or a regulation: <Amended by Act No. 6204, Jan. 28, 2000; Act No. 8863, Feb. 29, 2008> |
| 1. |
Re-election, suspension of performance of duties, or censure, in case of an executive; |
| 2. |
Disciplinary dismissal, suspension from office, salary reduction, or censure, in case of an employee; |
| 3. |
Caution or warning, in case of an executive or an employee. |
| (2) |
Where a union or the National Federation is required to take a measure of re-election or disciplinary dismissal against an executive or employee under the provisions of paragraph (1) and Article 89 (7) 1, the executive or employee concerned shall be subject to the suspension from office from the date when such request is made until the measure against him/her is determined. <Newly Inserted by Act No. 6204, Jan. 28, 2000; Act No. 6957, Jul. 30, 2003> |
| (3) |
If there is no executive who can execute the business affairs of a union or the National Federation, the Financial Services Commission may appoint an ad hoc executive. <Amended by Act No. 6957, Jul. 30, 2003; Act No. 8863, Feb. 29, 2008> |
| (4) |
When an ad hoc executive is appointed under paragraph (3), the union or the National Federation shall register the appointment without delay: Provided, That the Financial Services Commission may request the registration office having jurisdiction over the address of the principal place of business of the union or the National Federation to make such registration, if the union or the National Federation neglects to file for the registration. <Amended by Act No. 5739, Feb. 1, 1999; Act No. 6957, Jul. 30, 2003; Act No. 8863, Feb. 29, 2008> |
law view
| Article 84-2 (Notice of Measures Taken to Retired Executives, etc.) |
|
| (1) |
Where the Financial Services Commission (including the Governor of the Financial Supervisory Service and the National Federation Chairperson, to whom the authority for any of the measures specified in subparagraphs of Article 84 (1) is entrusted pursuant to Article 96) finds that an executive or employee retired or resigned from a union or the National Federation would have been punished by any of the measures specified in subparagraphs of Article 84 (1) if he/she had been the incumbent, it shall notify the union or the National Federation of the details of such measure. |
| (2) |
Upon receipt of the notice given under paragraph (1), a union or the National Federation shall notify the executive or employee involved thereof and shall enter and keep records thereof. |
[This Article Newly Inserted by Act No. 11545, Dec. 11, 2012]
law view
| Article 85 (Administrative Dispositions against Union, etc.) |
|
| (1) |
Where the Financial Services Commission finds that the soundness in business management of a union or the National Federation is likely to be impaired because of its violation of this Act or an order issued under this Act, it may take a measure falling under one of the following subparagraphs: <Amended by Act No. 8863, Feb. 29, 2008> |
| 1. |
Caution or warning to the union or the National Federation; |
| 2. |
Corrective Order for such violation; |
| 3. |
Partial suspension of its business for a period of time not exceeding six months. |
| (2) |
Where a union falls under one of the following subparagraphs, the Financial Services Commission may order the suspension of the entire business of the union within a prescribed period of not exceeding six months or revoke the authorization of its establishment: <Amended by Act No. 8863, Feb. 29, 2008> |
| 1. |
Where it has obtained the authorization of its establishment by any fraud or other wrongful means; |
| 2. |
Where it violates or breaches a provision or a condition of the authorization; |
| 3. |
Where it continues its business during the period of suspension of business; |
| 4. |
Where it fails to follow the corrective order issued under paragraph (1) 2; |
| 5. |
Where the number of its members fails to reach 100 persons continuously for one year or longer; |
| 6. |
Where the aggregate amount of investments in the union fails to reach the amount prescribed by categories under subparagraphs of Article 14 (4) continuously for one year or longer; |
| 7. |
Where it fails to continue its business for one year or longer without a justifiable ground; |
| 8. |
Where it fails to file for the registration of its establishment pursuant to Article 4 within six months after the authorization of its establishment is given. |
| (3) |
Where the Financial Services Commission issues an order for the suspension of the entire business of a union or revokes the authorization of establishment of a union under paragraph (2), it shall hear the opinion of the National Federation Chairperson. <Amended by Act No. 8863, Feb. 29, 2008> |
[This Article Wholly Amended by Act No. 6204, Jan. 28, 2000>
law view
| Article 86 (Management under Administratorship) |
|
| (1) |
The Financial Services Commission may appoint an administrator for management of a union, if the union falls under any of the following subparagraphs and thus is highly anticipated to cause serious damages to its members' interest: <Amended by Act No. 5739, Feb. 1, 1999; Act No. 6204, Jan. 28, 2000; Act No. 6957, Jul. 30, 2003; Act No. 8863, Feb. 29, 2008> |
| 1. |
Where it is anticipated after the inspection conducted under Article 83 (2) that its equity capital is likely to be impaired completely because the union has illegal or non-performing loans as prescribed by Presidential Decree, but it is difficult for it to recover them within a short period of time by an ordinary way: |
| (a) |
and (b) Deleted; <by Act No. 6204, Jan. 28, 2000> |
| 2. |
Where it is anticipated difficult for the union to promote to normalize its business on its own due to a loss in its assets caused by an unlawful or wrongful conduct of an executive or an employee of the union; |
| 3. |
Where there is a rush of demands for withdrawal of the deposits and installment savings in the union, or where the union is in a condition of insolvency because of a significant danger of bankruptcy or an unlawful or wrongful conduct of its executive or employee; |
| 4. |
Where it is found after the inspection under Article 83 (2) that it falls within the criteria as prescribed by Presidential Decree, when the appropriateness of its capital, the soundness of its assets, etc. are considered, although it does not falls under any of subparagraphs 1 through 3; |
| 5. |
Where the National Federation Chairperson recommends, after the analysis and evaluation of its business performance or the inspection conducted under Article 89 (3) and (6), that it is necessary to subject it to the management under administratorship; in such cases, the Financial Services Commission shall verify if it falls under one of subparagraphs 1 through 4. |
| (2) |
Once the management under administratorship referred to in paragraph (1) commences, the Financial Services Commission shall suspend the payment for obligations or suspend the performance of executives' duties for a period of time not exceeding six months, and shall require the administrator to inspect the current status of assets of the union (hereafter referred to as "asset inspection") without delay. <Amended by Act No. 5739, Feb. 1, 1999; Act No. 6204, Jan. 28, 2000; Act No. 8863, Feb. 29, 2008> |
| (3) |
Deleted. <by Act No. 6204, Jan. 28, 2000> |
| (4) |
The Financial Services Commission may request the head of a central administrative agency to furnish it with the data necessary for the measures under Article 86-2. In such cases, the head of the central administrative agency shall, upon the receipt of such a request, respond to such a request properly unless there is an extraordinary circumstance otherwise. <Amended by Act No. 6204, Jan. 28, 2000; Act No. 8863, Feb. 29, 2008> |
| (5) |
The Financial Services Commission may remove the suspension under paragraph (2) completely or partially, if there is a ground as prescribed by Presidential Decree such as a possibility of normalizing the management of the union. <Newly Inserted by Act No. 5739, Feb. 1, 1999; Act No. 6204, Jan. 28, 2000; Act No. 8863, Feb. 29, 2008> |
| (6) |
When a union becomes subject to the management under administratorship pursuant to paragraph (1), it shall publicly notify the substance of such measure, without delay, as prescribed by Presidential Decree. <Newly Inserted by Act No. 6204, Jan. 28, 2000> |
| (7) |
Matters necessary for the management under administratorship under the provisions of paragraphs (1) and (2), the methods, period of time, and procedure of the suspension of payments for obligations or the suspension of performance of executives' duties, and so forth shall be prescribed by Presidential Decree. <Amended by Act No. 5739, Feb. 1, 1999; Act No. 6204, Jan. 28, 2000> |
law view
| Article 86-2 (Qualification, Authority, etc. of Administrator) |
|
| (1) |
Any person who has interest in or a special relationship with a union as prescribed by Presidential Decree may not be appointed as the administrator of the union under Article 86 (1) or 86-4 (5) (hereafter referred to as the "administrator"). <Amended by Act No. 8145, Dec. 30, 2006> |
| (2) |
The administrator shall have an authority to execute the business affairs of the union subjected to the management under administratorship and manage and dispose of its assets in accordance with the purpose of the appointment or an authority to manage and dispose of the assets, liabilities, etc. of the union within the scope of the business affairs relating to a decision made on the assignment of contracts. In such cases, the administrator may not assert his/her authority to a third party in doing a legal act such as disposition of assets of the union, unless he/she completes the registration under Article 86-3 or 86-4 (6). <Amended by Act No. 8145, Dec. 30, 2006> |
| (3) |
The administrator shall search for the assets of executives or employees found liable for illegal or non-performing loans (including former executives or employees) or debtors, and shall take necessary measures including an application for provisional seizure, if necessary for securing the claims for the illegal or non-performing loan. |
| (4) |
The Financial Services Commission has an authority to dismiss an administrator, if considered necessary. <Amended by Act No. 8863, Feb. 29, 2008> |
| (5) |
The provisions of Article 35 (1) of the Civil Act, Article 11 (1) of the Commercial Act, and Article 30 and Articles 360 through 362 of the Debtor Rehabilitation and Bankruptcy Act shall apply mutatis mutandis to the administrator. In such cases the term "court" in Articles 30, 360, and 362 of the Debtor Rehabilitation and Bankruptcy Act shall be construed as the "Financial Services Commission". <Amended by Act No. 6957, Jul. 30, 2003; Act No. 7428, Mar. 31, 2005; Act No. 8863, Feb. 29, 2008> |
[This Article Newly Inserted by Act No. 6204, Jan. 28, 2000]
law view
| Article 86-3 (Notification and Registration of Management under Administratorship) |
|
| (1) |
When the management under administratorship commences in accordance with Article 86, the Financial Services Commission shall, without delay, notify the district count having jurisdiction over the address of the principal place of business of the union subject to the management under administratorship of the purport of such measure, and shall request the registration office having jurisdiction over the addresses of the principal place of business of the union and its branch offices to complete the registration of such measure. <Amended by Act No. 8863, Feb. 29, 2008> |
| (2) |
The registration office shall, upon receiving such a request under paragraph (1), complete the registration without delay. |
[This Article Newly Inserted by Act No. 6204, Jan. 28, 2000]
law view
| Article 86-4 (Decision on Assignment of Contracts) |
|
| (1) |
Where a union falls under any of subparagraphs of Article 86 (1), the Financial Services Commission may decide to assign the contracts (hereafter referred to as "assignment of contracts") relating to the business of the union concerned (hereafter referred to as "insolvent union") after hearing the opinion of the Fund Management Committee under Article 80-2 (3). <Amended by Act No. 8863, Feb. 29, 2008> |
| (2) |
In making a decision on the assignment of contracts under paragraph (1), the Financial Services Commission shall determine the scope, terms, and conditions of contracts to be assigned and the union to whom the contracts shall be assigned (hereafter referred to as the "assignee-union") as necessary. In such cases, the Commission shall obtain the consent of the assignee-union in advance. <Amended by Act No. 8863, Feb. 29, 2008> |
| (3) |
The National Federation may propose to the assignee-union the amount and conditions of its financial aid on the premise that the assignee-union shall perform its obligations under the assignment of contracts. |
| (4) |
When the assignee-union convenes the general meeting to resolve to consent under the latter part of paragraph (2), the National Federation shall notify the members of the assignee-union in advance of the matters relating to such resolution of the general meeting including the degree of insolvency of the insolvent union and the measures to be taken in relation to the assignment of contracts. |
| (5) |
The Financial Services Commission shall appoint an administrator to the insolvent union against which a decision is made to assign its contracts in accordance with paragraph (1). <Amended by Act No. 8863, Feb. 29, 2008> |
| (6) |
When the Financial Services Commission appoints an administrator under paragraph (5), it shall notify the district court having jurisdiction over the address of the principal place of business of the insolvent union of the purport of its appointment without delay, and shall request the registration office having jurisdiction over the union's principal place of business and its branch offices to register the appointment. <Amended by Act No. 8863, Feb. 29, 2008> |
| (7) |
The assignment of contracts made in accordance with the decision to that effect under paragraph (1) does not require a resolution of the board of directors or the general meeting of the insolvent union. |
[This Article Newly Inserted by Act No. 8145, Dec. 30, 2006]
law view
| Article 86-5 (Effect of the Decision on Assignment of Contracts) |
|
| (1) |
Where a decision is made to assign contracts to another union under Article 86-4 (1), the assignee-union shall succeed to the rights, obligations, and common bond of the insolvent union, as included in the scope of the decision, as of the time when such a decision is made. |
| (2) |
Where a decision is made to assign contracts to another union under Article 86-4 (1), the insolvent union and the assignee-union shall jointly announce the substance of such decision and the assignment of contracts through two or more daily newspapers without delay. |
| (3) |
When a public notification is made under paragraph (2), the assignee-union shall succeed to the insolvent union's legal relations with the creditors, debtors, and guarantors who have pledged their property and other interested parties who have interests in the assignment of contracts (hereafter referred to as "creditors, etc.") on the same terms and conditions as before: Provided, That the creditors, etc. may assert their rights and claims against the assignee-union on the ground of an event or cause that has occurred between the insolvent union and them before the public notification. |
| (4) |
When a public notification is made under paragraph (2), it shall be deemed that such a public notification satisfies the requisites for asserting the assignment of a nominative claim against the obligor under Article 450 of the Civil Act: Provided, That creditors, etc. may assert their rights and claims against the assignee-union on the ground of an event or cause that has occurred between the insolvent union and them before the public notification. |
| (5) |
Where a decision is made to assign contracts under Article 86-4 (1), the assignee-union shall acquire the rights relating to and interests in the real property, transfer of which requires registration, as of the time when an public notification is made under paragraph (2). |
| (6) |
Where The Financial Services Commission shall require the insolvent union and the assignee-union to preserve and keep safe the materials relating to the assignment of contracts and make them available to creditors, etc. for inspection. In such cases, the guidelines and procedure necessary for preserving, safekeeping, and making such materials available for inspection shall be prescribed by the Financial Services Commission. <Amended by Act No. 8863, Feb. 29, 2008> |
[This Article Newly Inserted by Act No. 8145, Dec. 30, 2006]
law view
| Article 87 Deleted. <by Act No. 6204, Jan. 28, 2000> |
|
law view
| Article 88 (Application for Bankruptcy) |
|
The Financial Services Commission may file an application for bankruptcy of a union with the district court having jurisdiction over the address of the union's principal place of business, if it is found, after the actual inspection of the assets of a union subjected to the management under administratorship under Article 86, that it is unable to perform its obligations fully with its own assets and if it falls under either of the following subparagraphs or if the contracts of the insolvent union is completely assigned in accordance with the decision on the assignment of such contracts: <Amended by Act No. 6256, Jan. 28, 2000; Act No. 8145, Dec. 30, 2006; Act No. 8863, Feb. 29, 2008>
| 1. |
If it is difficult to protect members of the union because there is no union that desires to acquire the union through a merger; |
| 2. |
If the National Federation concludes that it is difficult for the union to normalize its business within three years even if a loan is granted to the union. |
law view
| Article 88-2 (Bankruptcy Trustee) |
|
[This Article Newly Inserted by Act No. 6256, Jan. 28, 2000]
law view
| Article 89 (Guidance and Supervision by the National Federation) |
|
| (1) |
In order to perform the business activities under Article 78 (1), the National Federation may guide and supervise unions, provide them with guidelines necessary for such activities, and demand them to submit data, dispatch persons concerned to appear before the Federation or make a statement. |
| (2) |
A union shall, upon the receipt of the demand for submission of data, appearance of persons concerned, or a statement under paragraph (1), respond to the request accordingly without delay. |
| (3) |
The National Federation Chairperson may analyze and evaluate the data submitted by a union in accordance with paragraph (1) in a manner prescribed by the Financial Services Commission, and may require the union to publicly notify the results thereof. <Amended by Act No. 5739, Feb. 1, 1999; Act No. 6256, Jan. 28, 2000; Act No. 8863, Feb. 29, 2008> |
| (4) |
The National Federation Chairperson shall recommend a union to merge with another union or take a measure to improve its financial state through disposition of its own assets, downsizing of its organization, or any other way, if it is anticipated difficult, after the analysis and evaluation conducted pursuant to paragraph (3), for the union to conduct sound management because the union falls under the criteria prescribed by the Financial Services Commission pursuant to the provisions of Presidential Decree. <Newly Inserted by Act No. 6256, Jan. 28, 2000; Act No. 6957, Jul. 30, 2003; Act No. 8863, Feb. 29, 2008> |
| (5) |
If a union fails to take the measures to improve its financial state earnestly under paragraph (4), the Financial Services Commission shall conduct an inspection pursuant to Article 83 (2) to determine whether the union falls under the requirements for the management under administratorship under Article 86 (1). <Newly Inserted by Act No. 6957, Jul. 30, 2003; Act No. 8863, Feb. 29, 2008> |
| (6) |
The National Federation Chairperson may assign an employee of the Federation to conduct an inspection of the business affairs of a union, if considered necessary. |
| (7) |
The National Federation Chairperson may order a union to take a necessary measure including correction, or may take any of the following measures him/herself, according to the results of the inspection under paragraph (6): <Amended by Act No. 5739, Feb. 1, 1999; Act No. 6256, Jan. 28, 2000; Act No. 8145, Dec. 30, 2006> |
| 1. |
Demand to take a measure against an executive or employee involved under Article 84 (1); |
| 2. |
Appointment of an ad hoc executive under Article 84 (3); |
| 3. |
Request for the registration of an ad hoc executive under the proviso of Article 84 (4); |
| 5. |
Suspension of the entire business under Article 85 (2). |
| (8) |
The National Federation Chairperson shall report to the Financial Services Commission the matters necessary for imposition of a fine for negligence, if he/she discovers an act subject to imposition of a fine for negligence under any of Article 101 (1) after the inspection conducted to a union under paragraph (6). <Newly Inserted by Act No. 6957, Jul. 30, 2003; Act No. 8863, Feb. 29, 2008> |
law view
| Article 89-2 (Request for Inspection from Union Members or Unions) |
|
| (1) |
Union members who suspect that their union executes its business affairs in violation of the procedure or in breach of its duties prescribed by this Act, an order issued under this Act, the articles of association, or a regulation may request the National Federation to conduct an inspection of the union, if they obtain the consent of at least 1/100 of all union members, or the Governor of the Financial Supervisory Service to conduct it, if they obtain the consent of at least 3/100 of all union members. |
| (2) |
Unions that suspect that the National Federation executes its business affairs in violation of the procedure or in breach of its duties prescribed by this Act, an order issued under this Act, the articles of association, or a regulation may request the Governor of the Financial Supervisory Service to inspect the National Federation to with the consent of at least 3/100 of all member unions. |
| (3) |
The Governor of the Financial Supervisory Service or the National Federation Chairperson shall, upon the receipt of the request for inspection under paragraph (1) or (2), conduct an inspection without delay. |
[This Article Newly Inserted by Act No. 6957, Jul. 30, 2003]
law view
| Article 90 Deleted. <by Act No. 6957, Jul. 30, 2003> |
|
CHAPTER V SUPPLEMENTARY PROVISIONS
law view
| Article 91 Deleted. <by Act No. 5739, Feb. 1, 1999> |
|
law view
| Article 93 (Prohibition of Involvement in Politics) |
|
Neither a union nor the National Federation may do any act to involve in politics.
law view
| Article 94 (Contracts with Foreign Institutions) |
|
The National Federation may enter into insurance agreements, etc. with international organizations in connection with its business to manage its fund safely.
law view
| Article 95 (Special Exceptions to the Agricultural Cooperatives, etc.) |
|
| (1) |
The following legal entities shall be deemed to be credit unions under this Act when they engage in the business activities set forth in Article 39 (1) 1 through 6: <Amended by Act No. 6018, Sept. 7, 1999; Act No. 6187, Jan. 21, 2000; Act No. 6204, Jan. 28, 2000> |
| 1. |
Local agricultural cooperatives and local livestock cooperatives (including commodity cooperatives that provide credit service) established under the Agricultural Cooperatives Act; |
| 2. |
Local fisheries cooperatives (including the cooperatives that provide credit service under Article 5 of Addenda of the Amendment to the Fisheries Cooperatives Act (Act No. 4820)) established under the Fisheries Cooperatives Act; |
| 3. |
Deleted; <by Act No. 6018, Sep. 7, 1999> |
| 4. |
Forestry cooperatives established under the Forestry Cooperatives Act; |
| 5. |
Deleted. <by Act No. 6018, Sep. 7, 1999> |
| (2) |
In case of paragraph (1), the business of the National Federation (in cases of the National Federation of the Agricultural Cooperatives, business prescribed in Article 78 (1) 6 shall be excluded) shall be carried out by the national federations established under the Acts set forth in subparagraphs of paragraph (1) respectively (including the National Forestry Cooperatives Federation; the same shall apply hereafter for the purpose of this Article). <Amended by Act No. 6187, Jan. 21, 2000; Act No. 10522, Mar. 31, 2011> |
| (3) |
Each cooperative and the National Federation under the provisions of paragraphs (1) and (2) shall separate the business of credit union from other business, when they engage in the business of credit union. |
| (4) |
This Act excluding the provisions of Article 6 (3) and (4), Article 39 (1) 1 and 6, Articles 42, 43, 45, 78 (1) 5, 83, 83-2, 83-3, 84, 89 (3), and 96 shall not apply to the business of the cooperatives and their National Federations under the provisions of paragraphs (1) and (2). <Amended by Act No. 5739, Feb. 1, 1999; Act No. 6018, Sep. 7, 1999; Act No. 6204, Jan. 28, 2000; Act No. 6957, Jul. 30, 2003> |
law view
| Article 96 (Delegation of Authority) |
|
| (1) |
The authority of the Financial Services Commission under this Act may be delegated entirely or partially to the Governor or the Financial Supervisory Service or the National Federation Chairperson as prescribed by Presidential Decree. <Amended by Act No. 8863, Feb. 29, 2008> |
| (2) |
The Governor of the Financial Supervisory Service may delegate to the National Federation Chairperson his/her authority under this Act or the authority delegated from the Financial Services Commission under paragraph (1) in part, as prescribed by Presidential Decree, if considered necessary to do so. <Amended by Act No. 6204, Jan. 28, 2000; Act No. 8863, Feb. 29, 2008> |
law view
| Article 97 (Mutual Aid Service) |
|
| (1) |
Unions and the National Federations shall prepare the regulation on mutual aid service to obtain an authorization from the Financial Services Commission, if they engage in mutual aid service. <Amended by Act No. 8863, Feb. 29, 2008> |
| (2) |
The mutual aid regulation under paragraph (1) shall provide the method of providing such a service, the mutual aid agreement, the mutual aid fee, etc. <Amended by Act No. 5739, Feb. 1, 1999; Act No. 6204, Jan. 28, 2000; Act No. 8863, Feb. 29, 2008> |
| (3) |
An amendment or repeal of the mutual aid regulation under paragraph (1) requires a prior authorization of the Financial Services Commission. <Amended by Act No. 8863, Feb. 29, 2008> |
law view
| Article 98 (Hearings) |
|
The Financial Services Commission shall hold a hearing, when it intends to revoke an authorization for establishment under Article 85 (2). <Amended by Act No. 5739, Feb. 1, 1999; Act No. 5982, May 24, 1999; Act No. 6204, Jan. 28, 2000; Act No. 8863, Feb. 29, 2008>
CHAPTER VI PENAL PROVISIONS
law view
| Article 99 (Penal Provision) |
|
| (1) |
When any executive, employee, or liquidator of a union or the National Federation commits one of the following conducts, he/she shall be punished by imprisonment for not more than three years, a fine not exceeding 20 million won, or both: <Amended by Act No. 5739, Feb. 1, 1999> |
| 1. |
When he/she uses the fund for any purpose other than the purpose of business of the union or the National Federation, or inflict a damage upon the union or the Federation by disposing of or misappropriating any of its assets; |
| 2. |
When he/she obtains the authorization for establishment in violation of Article 7. |
| (2) |
When any executive, employee or liquidator of a union or the National Federation commits one of the following conducts, he/she shall be punished by imprisonment for not more than two years or a fine not exceeding 10 million won: <Amended by Act No. 6204, Jan. 28, 2000; Act No. 6957, Jul. 30, 2003; Act No. 8863, Feb. 29, 2008> |
| 1. |
When he/she holds a registration by falsity; |
| 2. |
When he/she grants loans, etc. to a person exceeding the limit for one person in violation of Article 42; |
| 4. |
When he/she prepares a false financial statement to obtain approval from the general meeting in violation of the accounting standards or the guidelines for the settlement of accounts prescribed by the Financial Services Commission in accordance with Article 47 (2); |
| 5. |
When he/she violates the provision of Article 81 (3) or (4); |
| 6. |
When he/she does not accede to the management under administratorship under Article 86 (1); |
| 7. |
When he/she refuses to submit data, appear, make a statement in violation of Article 89 (2) or submits false data or makes a misrepresentation; |
| 8. |
When he/she rejects, obstructs, or avoids the inspection conducted by a supervisory institution. |
| (3) |
Any person who violates the provision of Article 3 (2), 27-2 (including the cases to which the said provision shall apply mutatis mutandis pursuant to Article 72 (7)) or 93 shall be punished by imprisonment for not more than one year or a fine not exceeding five million won. <Amended by Act No. 6957, Jul. 30, 2003> |
| (4) |
Any person who fails to make a public notice or makes a false public notice in violation of Article 83-2 shall be punished by imprisonment for not more than one year or a fine not exceeding five million won. <Newly Inserted by Act No. 5739, Feb. 1, 1999> |
law view
| Article 100 (Joint Penal Provision) |
|
Where the representative, an agent, an employee, or other workers of a union or the National Federation commits an offense prescribed in Article 99 (1) or (2) in connection with the business of the union or the National Federation, not only shall the wrongdoer be punished accordingly, but the union or the National Federation shall be punished by a fine under the same paragraph of the said Article: Provided
, That the same shall not apply where such union or the National Federation has not been negligent in giving due attention and supervision concerning the relevant duties to prevent such violation.
[This Article Wholly Amended by Act No. 11039, Aug. 4, 2011]
law view
| Article 101 (Fine for Negligence) |
|
| (1) |
When a union or the National Federation falls under one of the following subparagraphs, it shall be punished by a fine for negligence not exceeding ten million won: <Amended by Act No. 8145, Dec. 30, 2006> |
| 1. |
When it amends the articles of association in violation of Article 24 (2); |
| 2. |
When it fails to submit the report on the settlement of accounts to the National Federation Chairperson in violation of Article 47 (4); |
| 3. |
When it fails to undergo the accounting audit by an auditor under Article 47 (5) or 81 (2) without a justifiable ground; |
| 4. |
When it fails to submit the report under Article 83-4 or submits a false report; |
| 5. |
When it fails to make a public notification in violation of Article 86-5 (2); |
| 6. |
When it fails to preserve or manage the materials relating to the assignment of contracts or make them available to creditors, etc. for inspection in violation of Article 86-5 (6). |
| (2) |
The fine for negligence under paragraph (1) shall be imposed and collected by the Financial Services Commission as prescribed by Presidential Decree. <Amended by Act No. 8863, Feb. 29, 2008> |
| (3) |
Any person, who is dissatisfied with a disposition of fine for negligence under paragraph (2), may raise an objection to the Financial Services Commission within 30 days after he/she is notified of the disposition. <Amended by Act No. 8863, Feb. 29, 2008> |
| (4) |
If any person, who is subject to a disposition of fine for negligence under paragraph (2), raises an objection under paragraph (3), the Financial Services Commission shall, without delay, notify the competent court; and the court shall, in turn, proceed to a trial on the fine for negligence pursuant to the Non-Contentious Case Litigation Procedure Act. <Amended by Act No. 8863, Feb. 29, 2008> |
| (5) |
If neither an objection is raised nor is a fine for negligence paid within such period specified in paragraph (3), the said fine for negligence shall be collected by referring to the practices of dispositions on default of national taxes. |
[This Article Newly Inserted Act No. 957, Jul. 30, 2003]
ADDENDA
Article 1 (Enforcement Date)
This Act shall enter into force on April 1, 1998: Provided, That the preparatory actions necessary for the abolition of the National Association may be done before this Act enters into force.
Article 2 (Transitional Measures concerning Transfer of Security Fund)
| (1) |
The authorizations, permissions, and other acts done by the National Federation in connection with the security fund under the former provisions as of the time when this Act enters into force shall be deemed to be the acts done by Korea Deposit Insurance Corporation pursuant to this Act. |
| (2) |
The reports, payments, and other acts done by unions to the National Federation in connection with the security fund under the former provisions as of the time when this Act enters into force shall be deemed to be the acts done to Korea Deposit Insurance Corporation pursuant to this Act. |
| (3) |
The security fund as of the time this Act enters into force shall be transferred to Korea Deposit Insurance Corporation. |
| (4) |
Korea Deposit Insurance Corporation shall succeed to all the rights and obligations of the National Federation in connection with the security fund as of the time when this Act enters into force. |
| (5) |
The titles of the National Federation recorded in the registers and indicated in various kinds of certificates, etc. in connection with the security fund as of the time this Act enters into force shall be deemed to be those of Korea Deposit Insurance Corporation. |
| (6) |
The National Federation and Korea Deposit Insurance Corporation shall prepare the list of assets, accounting books, data, etc. relating to the security fund before this Act enters into force to obtain approval from the Minister of Finance and Economy, and shall prepare for transferring them to Korea Deposit Insurance Corporation. |
Article 3 (Transitional Measures concerning the Establishment and Management of the Security Fund)
The legal entities specified in each subparagraph of Article 95 (1) may establish and manage the security fund in accordance with the former provision of Article 83-18 (10), notwithstanding the amendment of this Act.
Article 4 (Transitional Measures Following Abolition of the National Association)
| (1) |
The member unions of the National Credit Union Association under former provisions as of the time when this Act enters into force shall be deemed to be the members of the National Federation. |
| (2) |
The National Credit Union Association under former provisions as of the time this Act enters into force shall be deemed to be dissolved as of the enforcement date of this Act, notwithstanding former provisions concerning dissolution and liquidation, and the National Federation shall succeed to all rights and obligations of the National Credit Union Association and the employment relations with its employee comprehensively. |
| (3) |
The titles of the National Credit Union Association to the property and rights recorded in the registers or indicated in various kinds of certificates shall be deemed to be those of the National Federation. |
| (4) |
The value of the assets to which the National Federation shall succeed under paragraph (2) shall be the book value as of the day before the enforcement date of this Act. |
| (4) |
The assets to which the National Federation shall succeed under paragraph (2) shall be deemed to be the investments by the unions in the National Federation. |
Article 5 (Transitional Measures Following Establishment of General Meeting)
A resolution adopted by the representatives' meeting of the National Federation before the enforcement date of this Act shall be deemed to be the resolution by the general meeting of the National Federation.
Article 6 (Amendment of the Articles of Association)
The unions and the National Federation shall amend their articles of association respectively in accordance with this Act within three months of the enforcement date of this Act.
Article 7 (Transitional Measures concerning Terms of Executives and Representatives)
| (1) |
The terms of the executives of the unions and the National Federation already elected under the former provisions at the time when this Act enters into force shall be governed by the former provisions: Provided, That the term of the executives of the unions and the National Federation elected during the period from January 1, 1998 through March 31, 1998 shall be governed by this Act. |
| (2) |
The terms of the representatives elected during the period from January 1, 1998 through March 31, 1998 shall end on the opening date of the general meeting held first after the enforcement date of this Act. |
| (3) |
The term of the representatives elected first after the enforcement date of this Act shall end on the opening date of the general meeting held in 2002. |
Article 8 (Relation to Other Statutes)
A citation of the "National Credit Union Association" in any other statute enforceable at the time when this Act enters into force shall be deemed to be the citation of the "National Credit Union Federation".
Article 9 Omitted.
ADDENDUM <Act No. 5739, Feb. 1, 1999>
This Act shall enter into force on the date of its promulgation.
ADDENDA <Act No. 5982, May 24, 1999>
Article 1 (Enforcement Date)
This Act shall enter into force on the date of its promulgation.
Articles 2 through 6 Omitted.
ADDENDA <Act No. 6018, Sep. 7, 1999>
Article 1 (Enforcement Date)
This Act shall enter into force on July 1, 2000.
Articles 2 through 21 Omitted.
ADDENDA <Act No. 6187, Jan. 21, 2000>
Article 1 (Enforcement Date)
This Act shall enter into force on May, 1, 2000.
Articles 2 through 14 Omitted.
ADDENDA <Act No. 6204, Jan. 28, 2000>
Article 1 (Enforcement Date)
This Act shall enter into force three months after the date of its promulgation: Provided, That the provisions of Article 95 as amended shall enter into force on July 1, 2000, but preparatory works for the enforcement of this Act including the preparation and amendment of the articles of association necessary for the enforcement of this Act and the appointment and dismissal of the executives of unions and the National Federation may be processed before this Act enters into force.
Article 2 (Applicability to and Transitional Measures concerning the Standing President of Unions)
| (1) |
The proviso to Article 27 (6) as amended shall be applicable to the standing union presidents elected first after this Act enters into force and afterwards. |
| (2) |
A union that shall have a standing president under the proviso to Article 27 (6) as amended, but whose incumbent president still has the remaining term of two or more years as of the time when this Act enters into force shall elect the standing president under the amended provision within one year after this Act enters into force. In such cases, the term of the president under the former provision shall be deemed to have expired. |
| (3) |
The term of the union president elected to the standing president under paragraph (2) shall be the remaining term of his/her predecessor, and a person who serves as the union president incumbent as of the time when this Act enters into force and then is newly elected again shall not be deemed to be elected for another term consecutively under Article 31. |
Article 3 (Transitional Measures concerning the Grounds of Disqualification for Executives, etc.)
If an executive, etc. of a union falls under any of the grounds for disqualification under Article 28 (1) as amended (including the cases to which said provision shall apply mutatis mutandis
pursuant to Article 72 (5)) due to a cause that occurred before this Act enters into force, the former provision shall apply notwithstanding the amended provision.
Article 4 (Transitional Measures concerning the Standing Executives of the National Federation)
| (1) |
The National Federation Chairperson shall appoint the standing directors under Article 71 as amended within three months after this Act enters into force; |
| (2) |
Matters concerning the National Federation Chairperson under the amended provision of Article 72 shall be applicable to the National Federation Chairperson elected first after this Act enters into force and afterwards. |
Article 5 (Transitional Measures concerning the Union subject to Management under Administratorship)
As to the unions subject to the management under administratorship in accordance with former provisions as of the time when this Act enters into force, the former provisions shall apply notwithstanding the amended provisions of Article 86.
ADDENDA <Act No. 6256, Jan. 28, 2000>
Article 1 (Enforcement Date)
| (1) |
This Act shall enter into force on July 1, 2000. |
Articles 2 through 14 Omitted.
ADDENDA <Act No. 6957, Jul. 30, 2003>
Article 1 (Enforcement Date)
This Act shall enter into force three months after the date of its promulgation: Provided
, That the provisions of Section 4 of Chapter III, Article 86-2 (5), and Article 90 as amended shall enter into force on January 1, 2004.
Article 2 (Applicability to Prohibition against Putting Investments in Pledge)
The provision of Article 14 (6) as amended shall not be applicable, for the period of time of three years after this Act enters into force, to the pledge rights already established in investments before this Act enters into force.
Article 3 (Applicability to Term of Executives)
The provision of Article 31 (3) as amended shall be applicable to the executives elected first after this Act enters into force and afterwards.
Article 4 (Transitional Measures concerning Appointment of Executives of the National Federation)
| (1) |
The National Federation shall elect the President for credit and mutual aid services, the Director for inspection and supervision, and professional directors under the provisions of Article 71-2 as amended at the general meeting held first after this Act enters into force. |
| (2) |
The National Federation Chairperson and the persons who serve as the executives of the National Federation under former provisions at the time when this Act enters into force shall be deemed to be the National Federation Chairperson and directors elected at the general meeting under the provisions of Article 71-2 as amended: Provided, That the term of the National Federation Chairperson and the directors shall end on the expiry of the term under the former provisions. |
Article 5 (Transitional Measures concerning Establishment of the Audit Committee)
The National Federation shall establish the Audit Committee under the provisions of Article 76 as amended at the general meeting convened first after this Act enters into force.
Article 6 (Transitional Measures concerning the Establishment of Guidelines for Internal Control and Appointment of the Compliance Officer)
The National Federation shall establish the guidelines for internal control under Article 76-3 within three months after this Act enters into force, and shall appoint the compliance officer.
Article 7 (Transitional Measures concerning Qualification for Executives)
If a person who serves as an incumbent executive of a union or the National Federation at the time when this Act enters into force falls under any ground for disqualification under Article 28 (1) as amended (including a case to which said provision shall apply pursuant to Article 71-2 (6)) due to a cause that occurred before this Act enters into force, the former provisions shall apply notwithstanding the amended provision.
Article 8 (Transitional Measures concerning Borrowings and Investment of the National Federation)
The funds borrowed and invested in other legal entities by the National Federation before this Act enters into force shall be deemed to have obtained approval from the Financial Supervisory Commission under Article 78 (5) as amended.
Article 9 (Transitional Measures concerning Appointment of Administrator)
The administrators appointed for the management under administratorship before this Act enters into force shall be governed by the former provisions notwithstanding Article 86-2 (5) as amended.
Article 10 (Transitional Measures concerning Penal Provisions)
The conducts committed before this Act enters into force shall be governed by the former penal provisions.
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.
ADDENDUM <Act No. 8145, Dec. 30, 2006>
This Act shall enter into force on the date of its promulgation.
ADDENDA <Act No. 8635, Aug. 3, 2007>
Article 1 (Enforcement Date)
This Act shall enter into force one year and six months after the date of its promulgation.
Articles 2 through 44 Omitted.
ADDENDA <Act No. 8840, Jan. 17, 2008>
This Act shall enter into force on the date of its promulgation.
ADDENDA <Act No. 8852, Feb. 29, 2008>
Article 1 (Enforcement Date)
This Act shall enter into force on the date of its promulgation. (Proviso Omitted)
Articles 2 through 7 Omitted.
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.
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. 10522, May 19, 2011>
Article 1 (Enforcement Date)
This Act shall enter into force on March 2, 2012. (Proviso Omitted)
Articles 2 through 28 Omitted.
ADDENDA <Act No. 10682, May 19, 2011>
Article 1 (Enforcement Date)
This Act shall enter into force on the date of its promulgation.
Articles 2 through 3 Omitted.
ADDENDA <Act No. 10866, Jul. 21, 2011>
Article 1 (Enforcement Date)
This Act shall enter into force on the date of its promulgation. (Proviso Omitted)
Articles 2 through 4 Omitted.
ADDENDUM <Act No. 11039, Aug. 4, 2011>
This Act shall enter into force on the date of its promulgation.
ADDENDA <Act No. 11545, Dec. 11, 2012>
Article 1 (Enforcement Date)
This Act shall enter into force six months after the date of its promulgation: Provided
, That the amended provisions of Article 31 (1) shall enter into force on the date of its promulgation.
Article 2 (Applicability to Appointment of Standing Executive of Unions)
A union which shall elect the standing executive, not as union president, pursuant to the amended provision of Article 27 (7) shall elect such standing executive, not as union president, by no later than the date of the general meeting initially convened for the appointment of executives after this Act enters into force.
Article 3 (Applicability to Restriction on Qualification for Executives, etc.)
The amended provision of Article 28 (1) (including cases to which the aforesaid paragraph shall apply mutatis mutandis
pursuant to Articles 71-2 (6) and 76-3 (4)) shall apply to persons whose qualification as an executive or promoter of a union or as an executive or compliance office of the National Federation shall be restricted due to a cause or event that occurs after this Act enters into force.
