law view
| Article 1 (Purpose) |
 |
The purpose of this Decree is to provide for matters delegated by the Credit Unions Act and those necessary for the enforcement thereof. <Amended by Presidential Decree No. 20230, Aug. 22, 2007>
law view
| Article 1-2 (Equity Capital) |
|
"Amount specified by Presidential Decree" in subparagraph 9 of Article 2 of the Credit Unions Act (hereafter referred to as the "Act") means an amount calculated by adding or subtracting the amount of errors made on the settlement of accounts to or from the aggregate of capital, reserves, other surplus earnings, etc. of a credit union (hereafter referred to as "union"). <Amended by Presidential Decree No. 20230, Aug. 22, 2007>
[This Article Newly Inserted by Presidential Decree No. 16857, Jun. 27, 2000]
law view
| Article 2 (Registration of Establishment of Unions and National Federation) |
|
| (1) |
Each union or the National Credit Union Federation of Korea (hereafter referred to as the "National Federation") shall complete registration of the following matters within three weeks from the day on which the authorization letter is issued. <Amended by Presidential Decree No. 16857, Jun. 27, 2000; Presidential Decree No. 18113, Nov. 4, 2003> |
| 4. |
Date of establishment; |
| 5. |
Grounds for dissolution, if such grounds are stipulated; |
| 6. |
Value per share of the investment and method for payment of such investment; |
| 7. |
Names, national identification numbers, and addresses of the union president or the Chairperson of the National Federation (hereafter referred to as the "National Federation Chairperson") and the President for credit and mutual aid services; |
| 8. |
Names and national identification numbers of executives, except the union president or the National Federation Chairperson and the President for credit and mutual aid services; |
| 9. |
Method of public notification; |
| 10. |
Details of restriction on directors' power of representation, if such restriction exists. |
| (2) |
The application for registration of establishment that shall be filed in accordance with paragraph (1) shall be accompanied by a copy of the authorization letter for establishment, a copy of the articles of association, documents certifying appointment of directors, and copies of letters of acceptance of appointment as an executive. |
law view
| Article 3 (Registration of Establishment of Branch Offices) |
|
Each union or the National Federation shall, when it establishes a branch office or a local chapter (hereafter referred to as "branch office"), register the following matters with each of the competent authorities stated below:
| 1. |
The address of the branch office and the date of establishment with the registration office having jurisdiction over its principal place of business within two weeks; |
| 2. |
The matters under Article 2 (1) 1, 3, and 7, the address of the branch office, and the date of establishment with the registration office having jurisdiction over the address of the branch office. |
law view
| Article 4 (Registration of Changes, etc.) |
|
| (1) |
Whenever any change occurs in the matters registered in accordance with subparagraphs of Article 2 (1), an application for registration of such change shall be filed with the registration office having jurisdiction over the principal place of business. along with a document certifying such change, within two weeks. Whenever any change occurs in the matters registered in accordance with subparagraph 2 of Article 3, an application for registration of such change shall be filed also with the registration office having jurisdiction over the branch office within three weeks. |
| (2) |
When a union or the National Federation relocates its place of business to any place over which another registration office has jurisdiction, it shall, within two weeks, complete the registration of the relocation with the registration office having jurisdiction over the former place of business and the registration of the matters under subparagraphs of Article 2 (1) or the matters under subparagraph 2 of Article 3 with the registration office having jurisdiction over the new place of business. |
law view
| Article 5 (Registration of Merger or Split-off) |
|
When a union is merged or split off in accordance with Article 55 of the Act, it shall complete the registration of the merger or split-off with the registration office having jurisdiction over its principal place of business within two weeks and the registration of the change of the union surviving the merger or split-off, the registration of dissolution of the union dissolving upon the merger, or the registration of the union newly established by the merger or split-off within the registration office having the address of each branch office within three weeks. <Amended by Presidential Decree No. 16857, Jun. 27, 2000>
law view
| Article 6 (Registration of Dissolution or Closing of Liquidation) |
|
| (1) |
When a union is dissolved, it shall complete the registration of the dissolution with the registration office having jurisdiction over its principal place of business within two weeks and also with the registration office having jurisdiction over each branch office within three weeks. |
| (2) |
An application filed for the registration of dissolution in accordance with paragraph (1) shall be accompanied by the following documents: |
| 1. |
Documents proving the ground for dissolution; |
| 2. |
Documents certifying the qualification of the applicant for registration if the president is not the liquidator. |
| (3) |
When liquidation proceeding of a union is completed, it shall complete the registration of the closing of liquidation with the registration office having jurisdiction over its principal place of business within two weeks from the date on which its general meeting approves the report on settlement of accounts in accordance with Article 59 of the Act and with the registration office having jurisdiction over each branch office within three weeks from the above-stated date. |
| (4) |
Deleted. <by Presidential Decree No. 16249, Apr. 19, 1999> |
law view
| Article 7 (Change and Registration of Trade Name) |
|
| (1) |
It shall be deemed that a union's name recorded in the register for a union established on the basis of the common bond of a workplace (hereafter referred to as "workplace union") is changed when the trade name of the workplace is changed. |
| (2) |
When the change under paragraph (1) occurs, the union concerned shall notify the competent registration office of the change forthwith, and the registration office shall, upon receiving such notice, record such change in the register. |
law view
| Article 8 (Counting Period of Registration) |
|
Where an authorization or approval by the Financial Services Commission or the National Federation Chairperson is required by any provision of this Act to register a matter, the period of such registration shall be counted from the day on which the letter of authorization or approval is delivered to the applicant for registration. <Amended by Presidential Decree No. 16323, May 24, 1999; Presidential Decree No. 20653, Feb. 29, 2008>
law view
| Article 9 (Applicants, etc. for Registration) |
|
| (1) |
An application for the registration under any provision of Articles 2 through 5 shall be filed by the union president for a union or the Chairperson for the National Federation. |
| (2) |
For the registration of dissolution in cases where such dissolution ensues from the Financial Services Commission's revocation of authorization for establishment, the Financial Services Commission may designate an employee of the National Federation as the registration applicant to authorize him/her to carry out such registration on behalf. <Amended by Presidential Decree No. 16323, May 24, 1999; Presidential Decree No. 20653, Feb. 29, 2008> |
law view
| Article 10 (Application for Authorization for Establishment) |
|
| (1) |
A person who intends to file an application for authorization for establishment of a union in accordance with Article 7 (1) of the Act shall file such application in the form prescribed by the Financial Services Commission with the Financial Services Commission via the National Federation Chairperson along with the following documents: <Amended by Presidential Decree No. 16323, May 24, 1999; Presidential Decree No. 16857, Jun. 27, 2000; Presidential Decree No. 20653, Feb. 29, 2008> |
| 1. |
Articles of association; |
| 2. |
Minutes of the inaugural general meeting; |
| 4. |
Resumes of the representative of promoters and executives; |
| 5. |
List of persons who have submitted a letter of consent to the establishment in accordance with Article 7 (2) of the Act; |
| 6. |
Location map of the place of business; |
| 7. |
Minutes of the promoters' meeting; |
| 8. |
Other documents describing matters relating to the establishment of the union. |
| (2) |
Where a union is established by the split-off under Article 55 (1) of the Act, the minutes of the inaugural general meeting under paragraph (1) 2 may be substituted with the minutes of the general meeting at which the split-off was resolved. In such cases, the minutes of the general meeting at which the split-off was resolved shall contain the resolution on the rights and obligations to which the union newly established shall succeed. |
| (3) |
The National Federation Chairperson shall, upon receiving an application for authorization for establishment pursuant to paragraph (1), forward it to the Financial Services Commission within 30 days along with a written statement on his/her opinion attached thereto. <Amended by Presidential Decree No. 16323, May 24, 1999; Presidential Decree No. 16857, Jun. 27, 2000; Presidential Decree No. 20653, Feb. 29, 2008> |
| (4) |
The time limit for the notice under Article 8 (2) of the Act on whether an approval is granted shall not be more than 60 days from the day on which the Financial Services Commission receives documents for application authorization submitted by the National Federation. <Amended by Presidential Decree No. 16323, May 24, 1999; Presidential Decree No. 16857, Jun. 27, 2000; Presidential Decree No. 20653, Feb. 29, 2008> |
law view
| Article 11 (Detailed Requirements for Authorizations) |
|
| (1) |
The detailed requirements for human resources, physical facilities, and business plan among the requirements for authorization for establishment of a union under Article 8 (1) of the Act are as follows: <Amended by Presidential Decree No. 16857, Jun. 27, 2000> |
| (a) |
Neither a promoter (applicable only if a promoter is a private individual) nor an executive shall fall under the disqualifications as an executive, as provided in Article 28 of the Act; |
| (b) |
Executives shall complete the training course conducted by the National Federation Chairperson as necessary for establishment of a union; |
| (a) |
Each union shall have an office with a floor area of not less than 30 square meters; |
| (b) |
Each union shall have an electronic computer system compatible with that of the National Federation's; |
| (a) |
The business plan shall be proper for carrying on business continuously and the estimated financial statements and forecasted income for three years after commencement of the business shall be feasible; |
| (b) |
The method of raising a fund including the capital required for the promotion of the business plan shall be suitable. |
| (2) |
A merger of unions established on the basis of an administrative district, an economic zone, or a habitate boundary as its common bond (hereafter referred to as "local unions") shall be permitted only in cases where the unions subject to the merger have the common bond of the same Si/Gun/Gu (Si shall be limited to those in which there is no Gu established; the same shall apply hereafter) or in cases where a union exists in a Si/Gun/Gu adjoining another Si/Gun/Gu in which another union is. <Amended by Presidential Decree No. 16249, Apr. 19, 1999; Presidential Decree No. 18113, Nov. 4, 2003> |
law view
| Article 12 (Extent, etc. of Common Bond) |
|
| (1) |
The extent of a common bond under Article 9 (1) of the Act is as follows: <Amended by Presidential Decree No. 16249, Apr. 19, 1999; Presidential Decree No. 18113, Nov. 4, 2003; Presidential Decree No. 20653, Feb. 29, 2008> |
| 1. |
Local unions: Eup/Myeon/Dong within the same Si/Gun/Gu: Provided, That any Eup/Myeon/Dong that is not within the same Si/Gun/Gu may also be included within the extent of a common bond in cases where it is recognized and approved by the Financial Services Commission that unions are within the extent of a common bond because their habitate boundaries or economic zones are close one another and their administrative districts adjoin each other; |
| 2. |
Workplace unions: The same workplace; in such cases, branch offices, subsidiary companies, and subordinate institutions of the workplace concerned may be included in the extent of a common bond; |
| 3. |
Organization unions: The following organizations or legal entities: |
| (a) |
Religious organizations, including churches and temples; |
| (b) |
Market merchants' organizations; |
| (c) |
Incorporated associations the members of which have a close cooperative relationship with one another; |
| (d) |
Trade organizations comprised of members who hold a qualification or license officially recognized by the State and authorized by a relevant statute. |
| (2) |
A religious organization falling under paragraph (1) 3 (a) may form a common bond with another religious organization in the same Si/Gun/Gu, notwithstanding paragraph (1). <Amended by Presidential Decree No. 16249, Apr. 19, 1999; Presidential Decree No. 18113, Nov. 4, 2003> |
| (3) |
Deleted. <by Presidential Decree No. 16249, Apr. 19, 1999> |
| (4) |
Deleted. <by Presidential Decree No. 16249, Apr. 19, 1999> |
| (5) |
In cases where a local union's common bond changes because of a change in administrative district, the former common bond shall be deemed common bond of the local union, notwithstanding paragraph (1) 1. |
law view
| Article 13 (Persons Eligible for Membership) |
|
| 1. |
For a local union: A person (or an organization or a legal entity) whose residence or abode within the common bond is stipulated by the articles of association or a person who engages in his/her business within the common bond; |
| 2. |
For a workplace union or an organization union: A person (or an organization or a legal entity) who belongs to a workplace or organization stipulated by the articles of association. |
| (2) |
The term "persons specified by Presidential Decree" in Article 11 (2) of the Act means the following persons: <Amended by Presidential Decree No. 16249, Apr. 19, 1999; Presidential Decree No. 20230, Aug. 22, 2007> |
| 1. |
A family member of a member (which means his/her spouse, lineal ascendant or descendant within the same household; the same shall apply hereafter); |
| 1-2. |
A person who is no longer within the common bond of a union because of a merger or split-off of that union under Article 55 of the Act, the assignment of contracts under Article 86-4 of the Act, or the adjustment of extent of the common bond or the conversion of type of the common bond of the union; |
| 2. |
An employee of the office of an organization or his/her family member; |
| 3. |
An employee of a union or his/her family member; |
| 4. |
An employer to which the union belongs (or an organization within the employer); |
| 5. |
An employee of a business that a union member runs in connection with a specific trade, in cases where a union that is based on a common bond of an organization for the specific trade. |
law view
| Article 14 (Unions Required to Appoint Standing President) |
|
Unions which shall have the standing president under the proviso to Article 27 (6) of the Act shall be local unions and organization unions whose total assets calculated by the average balance as of the immediately preceding business year amount to 30 billion or more: Provided
, That an organization union under Article 12 (1) 3 (d) may not have the standing president.
[This Article Wholly Amended by Presidential Decree No. 16857, Jun. 27, 2000]
law view
| Article 15 (Scope, etc. of Finance-Related Statutes) |
|
| (1) |
"Finance-related statute prescribed by Presidential Decree" under Article 28 (1) 4-2 of the Act means each of the following statutes: <Amended by Presidential Decree No. 20230, Aug. 22, 2007; Presidential Decree No. 20947, Jul. 29, 2008> |
| 3. |
The Long-Term Credit Bank Act; |
| 5. |
through 8. Deleted; <by Presidential Decree No. 20947, Jul. 29, 2008> |
| 14. |
The Agricultural Cooperatives Act; |
| 15. |
The Fisheries Cooperatives Act; |
| 16. |
The Forestry Cooperatives Act; |
| (2) |
"Persons prescribed by Presidential Decree" in Article 28 (1) 7-2 of the Act mean any of the following executives or employees who was incumbent at the time when the cause or event occurred that led to the revocation of a permit or license for, or the registration of, business (or an executive or employee incumbent at the time when the cause or event occurred that led to the timely corrective measures under Article 10 of the Act on the Structural Improvement of the Financial Industry, in cases where a permit or license of a corporation or company was revoked pursuant to Article 14 of the said Act): <Amended by Presidential Decree No. 20230, Aug. 22, 2007> |
| 1. |
An auditor or a member of an audit committee; |
| 2. |
An executive subject to a caution, a warning, a censure, suspension of performance of duties, a demand for removal, or other disciplinary measure pursuant to this Act or any of the finance-related statutes enumerated in paragraph (1) on account of his/her illegal or wrongful conduct in connection with the occurrence of a cause or event that led to such revocation of permit or license; |
| 3. |
An employee subject to a measure equivalent to or heavier than a demand for suspension from office pursuant to this Act or any of the finance-related statutes enumerated in paragraph (1) on account of his/her illegal or wrongful act in connection with the occurrence of a cause or event that led to the revocation of a permit, license, or registration; |
| 4. |
A person subject to a disciplinary measure under subparagraph 2 or 3, who had retired or resigned from his/her office before he was punished by such measure. |
| (3) |
"Disciplinary measure of suspension from office, suspension of performance of service, or any heavier discipline prescribed by Presidential Decree" in Article 28 (1) 7-3 of the Act means the suspension of performance of duties, suspension from office, or suspension of performance of service, while "period prescribed by Presidential Decree" in the said subparagraph means four years from the termination date of the disciplinary measure or heavier punishment. <Newly Inserted by Presidential Decree No. 18113, Nov. 4, 2003> |
[This Article Newly Inserted by Presidential Decree No. 16859, Jun. 27, 2000]
law view
| Article 16 (Scope, etc. of Business) |
|
| (1) |
The scope of welfare services prescribed in Article 39 (2) of the Act is as follows: <Amended by Presidential Decree No. 23356, Dec. 8, 2011> |
| 1. |
Social welfare services: Services of establishing and running child-care centers, welfare facilities for elderly or disabled persons and similar services; |
| 2. |
Cultural welfare services: The following services and similar services; |
| (a) |
Services of establishing and operating social education facilities, such as homemakers' colleges or hobby classes; |
| (b) |
Services of establishing and operating community sports facilities, such as table tennis courts, tennis courts, and fitness clubs; |
| (c) |
Services of establishing and operating community convenience facilities, such as wedding halls, reading rooms, restaurants, and public baths; |
| 3. |
Local community development projects: Services of collaborative purchasing and sales, warehouse services, funeral services, and similar services. |
| (2) |
Deleted. <by Presidential Decree No. 16249, Apr. 19, 1999> |
| (3) |
The fund for the operation of welfare services shall be limited to the smaller of the following amounts. In such cases, funds provided without consideration by the State, a local government, a public organization shall not be included in such limit: <Amended by Presidential Decree No. 16249, Apr. 19, 1999; Presidential Decree No. 16859, Jun. 27, 2000> |
| 1. |
The equity capital under subparagraph 9 of Article 2 of the Act: Provided, That if the equity capital has been reduced to less than the maximum limit on the total capital under Article 14 (4) of the Act due to losses incurred, the applicable amount shall be the minimum limit on total capital; |
| 2. |
An amount equivalent to 10/100 of assets as of the end of the immediately preceding business year. |
| (4) |
Notwithstanding paragraph (3), a workplace union under Article 12 (1) 2 or an organization union under subparagraph 3 (d) of the said paragraph may appropriate an amount equivalent to twice its equity capital as funds for provision of welfare services, subject to prior approval of the National Federation Chairperson. <Newly Inserted by Presidential Decree No. 18113, Nov. 4, 2003> |
| (5) |
Each union may, when it provides the welfare services under paragraph (1), levy a charge on service users to cover the expenses. |
law view
| Article 16-2 (Use of Services by Non-Union Members, etc.) |
|
Where a union allows persons who are not members prescribed in Article 40 (1) of the Act, and members of another union prescribed in paragraph (2) of the same Article to use the services referred to in Article 39 (1) of the Act, the loans and discount of bills (hereafter referred to as "loans") related thereto shall not exceed 1/3 of the loans newly granted by the union during the pertinent business year. <Amended by Presidential Decree No. 23316, Nov. 23, 2011>
[This Article Newly Inserted by Presidential Decree No. 18113, Nov. 4, 2003]
law view
| Article 16-3 (Limit on Borrowing) |
|
The limit on the loans that a union is permitted to borrow pursuant to Article 41 (1) of the Act shall be the amount equivalent to 5/100 of total assets as of the end of the immediately preceding business year or its equity capital, whichever is greater.
[This Article Newly Inserted by Presidential Decree No. 18113, Nov. 4, 2003]
law view
| Article 16-4 (Limit on Loans, etc. for the Same Person) |
|
| (1) |
"Limit prescribed by Presidential Decree" in Article 42 of the Act means an amount equivalent to 20/100 of the equity capital or an amount equivalent to 1/100 of total assets as of the end of the immediately preceding business year, whichever is greater. In such cases, the Financial Services Commission may set a ceiling on an amount equivalent to 20/100 of the equity capital and an amount equivalent to 1/100 of total assets, respectively. <Amended by Presidential Decree No. 23316, Nov. 23, 2011> |
| (2) |
Notwithstanding paragraph (1), the following loans shall not be included in calculation of the amount of loans granted to the same person: <Amended by Presidential Decree No. 20230, Aug. 22, 2007; Presidential Decree No. 20653, Feb. 29, 2008; Presidential Decree No. 22496, Nov. 15, 2010> |
| 1. |
A loan secured by a deposit or installment deposit in the union; |
| 2. |
A loan secured by the mutual aid premium paid under a mutual aid contract made with the union; |
| 3. |
A loan guaranteed by the State, the Bank of Korea, or a bank under the Banking Act or a loan secured by securities issued or guaranteed by such institution; |
| 4. |
Other loans specified by the Financial Services Commission. |
[This Article Newly Inserted by Presidential Decree No. 18113, Nov. 4, 2003]
law view
| Article 17 (Reserve for Repayments) |
|
| (1) |
The amount of the reserve for repayment that each union shall retain in accordance with Article 43 (1) of the Act shall be 10/100 of the balance of deposits and installment deposits as of the end of the preceding month. |
| (2) |
Each union shall deposit an amount equivalent to 50/100 (or an amount equivalent to 100/100, if a union is the legal entity under Article 95 (1) of the Act) of the reserve for repayment under paragraph (1) with the National Federation by no later than the fifth day of the following month: Provided, That the Financial Services Commission may, if deemed necessary for the healthier operation of the National Federation or a union, raise the rate of the deposit out of the reserve for repayment with the National Federation. <Amended by Presidential Decree No. 16857, Jun. 27, 2000; Presidential Decree No. 18113, Nov. 4, 2003; Presidential Decree No. 20653, Feb. 29, 2008> |
| (3) |
Each union shall keep the reserve for repayment, except the amount deposited with the National Federation in accordance with paragraph (2), in cash or by other means under subparagraph 2 of Article 44 of the Act. <Newly Inserted by Presidential Decree No. 18113, Nov. 4, 2003> |
| (4) |
Gains from the management of the reserve for repayment deposited in the National Federation in accordance with Article 43 (2) of the Act shall be disposed of in the following order: <Newly Inserted by Presidential Decree No. 18113, Nov. 4, 2003; Presidential Decree No. 20653, Feb. 29, 2008> |
| 1. |
Payment of expenses required for the operation and management of the reserve for repayment; |
| 2. |
Payment of interest incurred for the reserve for repayment; |
| 3. |
Coverage of losses incurred to the National Federation; |
| 4. |
Other methods determined by the National Federation Chairperson, subject to prior approval of the Financial Services Commission. |
| (5) |
Details necessary for the payment of interest and coverage of losses under paragraph (4) 2 and 3 shall be prescribed by the Financial Services Commission. <Newly Inserted by Presidential Decree No. 18113, Nov. 4, 2003; Presidential Decree No. 20653, Feb. 29, 2008> |
law view
| Article 17-2 (Management of Spare Cash) |
|
| (2) |
The types of securities a union is permitted to purchase in accordance with subparagraph 3 of Article 44 of the Act in addition to the state bonds and public bonds are as follows: <Amended by Presidential Decree No. 20230, Aug. 22, 2007; Presidential Decree No. 20653, Feb. 29, 2008; Presidential Decree No. 20947, Jul. 29, 2008> |
| 1. |
Corporate bonds publicly notified by the Financial Services Commission in view of credibility and credit ratings; |
| 4. |
Other securities specified and publicly notified by the Financial Services Commission as deemed required for the management of spare cash retained by unions. |
| (3) |
No union shall purchase the securities under paragraph (2) 2 or 4 in excess of the limit of 100/100 of its equity capital as of the end of the immediately preceding business year. <Newly Inserted by Presidential Decree No. 20230, Aug. 22, 2007> |
| (4) |
The Financial Services Commission may, if deemed necessary for the healthier management of spare cash of unions, prescribe and publicly notify the limit on the purchase of the securities under paragraph (2) 1 or 4, taking into consideration the credit rating of the securities and the risks in investment ensuing from excessive purchase of such securities issued by a single company. <Newly Inserted by Presidential Decree No. 20230, Aug. 22, 2007; Presidential Decree No. 20653, Feb. 29, 2008> |
[This Article Newly Inserted by Presidential Decree No. 18113, Nov. 4, 2003]
law view
| Article 18 (Extent, etc. of Real Estate for Business Purposes) |
|
| (1) |
The extent of real estate that a union or the National Federation is allowed to acquire for business purposes in accordance with Article 45 of the Act is as follows: |
| 1. |
Business facilities (limited to cases where at least 10/100 of the total floor area of a building is used directly for its business purposes); |
| 2. |
Real estate used directly as company houses, dormitories, and training facilities; |
| 3. |
Real estate used directly for the welfare services under Article 16 (1). |
| (2) |
A union or the National Federation may lease part of its business facilities under paragraph (1) 1 to a third party to the extent that such lease shall not cause any inconvenience to union members or member unions. |
law view
| Article 18-2 (Extent of Real Estate for Business Purposes) |
|
The term "reference amount prescribed by Presidential Decree" in the main body of Article 47 (5) of the Act means 30 billion won.
[This Article Wholly Amended by Presidential Decree No. 18113, Nov. 4, 2003]
law view
| Article 18-3 (Replacement of External Auditors) |
|
The term "if the union falls under any of the grounds prescribed by Presidential Decree" in Article 47 (6) of the Act means cases where it falls under any of the following subparagraphs: <Amended by Presidential Decree No. 20653, Feb. 29, 2008>
| 1. |
Where it has ever violated the Act, this Decree, or any order issued by the Financial Services Commission or the Governor of the Financial Supervisory Service pursuant to the Act or this Decree during the preceding three years; |
| 2. |
Where it overstates its income or understates its losses in excess of the guidelines prescribed by the Financial Services Commission; |
| 3. |
Where the National Federation Chairperson deems it necessary, after inspection under Article 89 (6) of the Act, to replace the auditor. |
[This Article Newly Inserted by Presidential Decree No. 18113, Nov. 4, 2003]
law view
| Article 19 (Liquidators) |
|
Where there is no union president to carry out the liquidation of the union or it is deemed that the union president is not competent to carry out the liquidation, the National Federation Chairperson may appoint a member of the union or an employee of the National Federation as the liquidator of the union pursuant to Article 57 (1) of the Act.
law view
| Article 19-2 (Qualifications of Professional Directors) |
|
The term "persons who meet the requirements prescribed by Presidential Decree" in Article 71-2 (3) of the Act means persons falling under any of the following subparagraphs: <Amended by Presidential Decree No. 20230, Aug. 22, 2007; Presidential Decree No. 20653, Feb. 29, 2008>
| 2. |
Any person who is licensed as an attorney-at-law or certified public accountant and has engaged in a business relating to such qualification for five years or longer; |
| 3. |
Any person who has worked for a state agency, research institute or educational institution related to finance, and is specified by the articles of association as having equivalent qualification prescribed in subparagraph 1. |
[This Article Newly Inserted by Presidential Decree No. 18113, Nov. 4, 2003]
law view
| Article 19-3 (Guidelines for Internal Control) |
|
| (1) |
The guidelines for internal control under Article 76-3 (1) of the Act shall include the following matters: <Amended by Presidential Decree No. 20653, Feb. 29, 2008> |
| 1. |
Matters concerning the allocation of business affairs and the organizational structure; |
| 2. |
Matters concerning the management of risks arising in the course of management of assets and performance of business; |
| 3. |
Matters concerning the procedure with which executives and employees shall comply in performing their duties; |
| 4. |
Matters concerning the establishment of a system which enables information required for making decisions on business management to be communicated efficiently; |
| 5. |
Matters concerning the procedure and method for insuring whether executives and employees comply with the guidelines for internal control and the disposition of executives and employees who violate the guidelines; |
| 6. |
Matters concerning the procedure or standards for preventing unfair trading, including the report on details of securities trading by executives and employees; |
| 7. |
Matters concerning the procedure for the establishment and revision of the guidelines for internal control; |
| 8. |
Matters prescribed by the Financial Services Commission as specific standards for matters under subparagraphs 1 through 7. |
| (2) |
When the National Federation intends to establish or revise the guidelines for internal control under paragraph (1), it shall refer the standards to its board of directors for resolution. |
| (3) |
The Financial Services Commission may recommend the National Federation to revise the guidelines for internal control in order to prevent recurrence of violations, if a violation of a relevant statute is discovered following the inspection of the Financial Supervisory Service under Article 83 (2) of the Act. <Amended by Presidential Decree No. 20653, Feb. 29, 2008> |
[This Article Newly Inserted by Presidential Decree No. 18113, Nov. 4, 2003]
law view
| Article 19-4 (Duties, etc. of Compliance Officers) |
|
| (1) |
When the National Federation appoints or dismisses a compliance officer under Article 76-3 (2) of the Act (hereafter referred to as "compliance officer"), it shall notify the Financial Services Commission of such fact. <Amended by Presidential Decree No. 20653, Feb. 29, 2008> |
| (2) |
Each compliance officer shall exercise due care and good faith in performing his/her duties, but shall not assume concurrent offices other than the following works: |
| 1. |
Works relating to risk management; |
| (3) |
Where a compliance officer demands executives and employees to furnish him/her with data or information while performing his/her duties, the National Federation shall ensure that the executive or employee concerned complies with such demand in good faith. |
| (4) |
The National Federation shall not unfairly treat any person who has served as a compliance officer in personnel management on any ground relating to the performance of his/her duties as a compliance officer. |
[This Article Newly Inserted by Presidential Decree No. 18113, Nov. 4, 2003]
law view
| Article 19-5 (Borrowings) |
|
| (1) |
The term "cases prescribed by Presidential Decree, considering the purpose, size, etc. of loan" in Article 78 (5) of the Act means cases where the National Federation borrows a loan, the maturity on which shall not exceed 30 days, from an insured financial institution within the limit of 3/100 of its total assets as of the end of the immediately preceding business year in order to secure temporarily liquidity. |
| (2) |
The term "cases prescribed by Presidential Decree, considering the purpose, size, etc. of investment" in Article 78 (5) of the Act means cases where the National Federation acquires less than 15/100 of outstanding voting stocks (including shares in investments) of any other company for the purposes of investment within the limit of 3/100 of its total assets as of the end of the immediately preceding business year. |
[This Article Newly Inserted by Presidential Decree No. 18113, Nov. 4, 2003]
law view
| Article 19-6 (Size of Loans Granted by National Federation, etc.) |
|
| (1) |
The size of loans granted by the National Federation to any person other than unions pursuant to Article 78-2 (2) of the Act shall not exceed the guidelines prescribed by the Financial Services Commission within the limit of 1/3 of the total assets in the account for the receipt and management of the funds remaining after deducting the reserve for repayment (hereafter referred to as "credit deposits") from the accounts for the management of the business under Article 78 (1) 5 (a) of the Act (hereafter referred to as "total assets of credit deposits"). <Amended by Presidential Decree No. 20653, Feb. 29, 2008> |
| (2) |
The limits on the loans granted by the National Federation to any person other than unions pursuant to Article 78-2 (2) of the Act are as follows: <Amended by Presidential Decree No. 20653, Feb. 29, 2008> |
| 1. |
Loans to a single private individual: 300 million won; |
| 2. |
Loans to a single legal entity: 8 billion won; |
| 3. |
Loans to a single person and the persons who share credit risk with such person (hereafter referred to as "identical borrowers"): 10 billion won; |
| 4. |
Total amount of large loans to a single person and identical borrowers in excess of 5 billion won: No more than 50/100 of loans granted to those who are not unions in accordance with paragraph (1). |
| (3) |
Further specific guidelines for the calculation of the limits on loans that are not included in the limits on loans under paragraph (2) and other matters shall be prescribed by the Financial Services Commission. <Amended by Presidential Decree No. 20653, Feb. 29, 2008> |
[This Article Newly Inserted by Presidential Decree No. 18113, Nov. 4, 2003]
law view
| Article 19-7 (Management of Fund) |
|
| (1) |
The term "financial institution specified by Presidential Decree" in Article 79 (1) 3 of the Act means an insured financial institution or a communications agency. |
| (2) |
The term "other manners prescribed by Presidential Decree" in Article 79 (1) 4 of the Act means any of the following manner: <Amended by Presidential Decree No. 20230, Aug. 22, 2007> |
| 1. |
A loan to any person other than a union (limited to credit deposits); |
| 2. |
Discount of bill for a union; |
| 4. |
Deleted. <by Presidential Decree No. 20230, Aug. 22, 2007> |
| (3) |
The types of securities that the National Federation may purchase pursuant to Article 79 (2) of the Act shall be classified as follows: <Amended by Presidential Decree No. 20230, Aug. 22, 2007; Presidential Decree No. 20653, Feb. 29, 2008; Presidential Decree No. 20947, Jul. 29, 2008> |
| 1. |
Securities that may be purchased with the reserve for repayment: |
| (b) |
Corporate bonds publicly notified by the Financial Services Commission, considering credibility and credit ratings; |
| (c) |
Collective investment securities of a securities collective investment organization under subparagraph 1 of Article 229 of the Financial Investment Services and Capital Markets Act or beneficiary certificates issued by a trust business operator under the same Act, for which the ratio of listed stocks included in underlying assets thereof shall be less than 30/100; |
| (e) |
Other securities specified and publicly notified by the Financial Services Commission as deemed required for the management of the reserve for repayment; |
| 2. |
Securities that may be purchased with credit deposits: |
| (b) |
Corporate bonds publicly notified by the Financial Services Commission, considering credibility and credit ratings; |
| (e) |
Other securities specified and publicly notified by the Financial Services Commission as deemed required for the management of the credit deposits. |
| (4) |
The limits on the securities that the National Federation may purchase pursuant to Article 79 (2) of the Act are as follows: <Amended by Presidential Decree No. 20230, Aug. 22, 2007; Presidential Decree No. 20653, Feb. 29, 2008; Presidential Decree No. 20947, Jul. 29, 2008> |
| 1. |
The National Federation shall not purchase the securities under paragraph (3) 1 (c) in excess of the limit prescribed and publicly notified by the Financial Services Commission within the limit of 10/100 of the fund for management of the reserve for repayment as of the end of the preceding month; |
| 2. |
The National Federation shall not purchase the following securities in excess of the limit prescribed and publicly notified by the Financial Services Commission within the limit of 20/100 of the total assets of credit deposits as of the end of the preceding month: |
| (a) |
Securities under paragraph (3) 2 (c); |
| (5) |
The Financial Services Commission may, if deemed necessary for the healthier management of the fund of the National Federation, prescribe and publicly notify the limit on the purchase of the securities under paragraph (3) 1 (b) or (e) or paragraph (3) 2 (b) or (e), taking into consideration the credit rating of such securities and the risks in investment ensuing from excessive purchase of securities issued by a single company. <Newly Inserted by Presidential Decree No. 20230, Aug. 22, 2007; Presidential Decree No. 20653, Feb. 29, 2008> |
| (6) |
Other matters necessary for the fund management of the National Federation shall be prescribed by the Financial Services Commission. <Amended by Presidential Decree No. 20230, Aug. 22, 2007; Presidential Decree No. 20653, Feb. 29, 2008> |
[This Article Newly Inserted by Presidential Decree No. 18113, Nov. 4, 2003]
law view
| Article 19-8 (Limit of Guarantee for Members, etc.) |
|
| (1) |
The term "amount prescribed by Presidential Decree" in Article 80-2 (1) of the Act means each of the following: <Amended by Presidential Decree No. 20230, Aug. 22, 2007; Presidential Decree No. 20885, Jun. 25, 2008; Presidential Decree No. 24096, Sep. 7, 2012> |
| 1. |
Principal of and interest for deposits and installment savings that union members, etc. (referring to the union members, etc. under Article 80-2 (1) of the Act; the same shall apply hereafter) deposited with the union. In such case, the interest shall be limited to the amount calculated by multiplying the principal by the interest rate fixed by the Fund Management Committee (hereafter referred to as the "Committee") under Article 80-2 (3) of the Act in consideration of the average interest rate for one-year term deposits in banks; |
| 2. |
Mutual aid money for which union members, etc. have a claim against the National Federation or a union under a mutual aid contract, and other pecuniary claims as agreed; |
| 3. |
Special deposits of the National Federation to clear cashier's checks. |
| (2) |
The limit on the guarantee under which the National Federation shall perform obligations of a union to each person in lieu of the union or other accounts of the National Federation pursuant to Article 80-2 (4) of the Act shall be 50 million won. <Amended by Presidential Decree No. 20885, Jun. 25, 2008> |
[This Article Newly Inserted by Presidential Decree No. 18113, Nov. 4, 2003]
law view
| Article 19-9 (Organization and Operation of Committee) |
|
| (1) |
The Committee shall consist of nine members, including one chairperson. |
| (2) |
The Director for Inspection and Supervision of the National Federation shall serve as the chairperson, and the Committee shall be comprised of the following members: <Amended by Presidential Decree No. 20653, Feb. 29, 2008> |
| 1. |
Two persons commissioned by the National Federation Chairperson from among union presidents; |
| 2. |
One person designated by the National Federation Chairperson from among the professional directors under Article 71-2 (3) of the Act; |
| 3. |
One person designated by the Chairperson of the Financial Services Commission from among public officials under his/her control; |
| 4. |
One person designated by the Minister of Strategy and Finance from among public officials under his/her control; |
| 5. |
One person commissioned by the Financial Services Commission from among those who possess sound knowledge and experience in finance, accounting, or law; |
| 6. |
Two persons commissioned by the Governor of the Financial Supervisory Service from among those having sound knowledge and experience in finance, accounting, or law. |
| (3) |
The term of office of members commissioned pursuant to paragraph (2) shall be three years. |
[This Article Newly Inserted by Presidential Decree No. 18113, Nov. 4, 2003]
law view
| Article 19-10 (Operation of Committee) |
|
| (1) |
The chairperson shall call meetings of the Committee and take the chair of such meetings. |
| (2) |
Meetings of the Committee shall adopt resolutions with the attendance of a majority of incumbent members and by an affirmative vote of a majority of the members present at the meeting. |
| (3) |
Other necessary matters concerning the operation of the Committee shall be determined by the chairperson, subject to a resolution of the Committee. |
[This Article Newly Inserted by Presidential Decree No. 18113, Nov. 4, 2003]
law view
| Article 19-11 (Contributions, etc.) |
|
| (1) |
Contributions paid by a union pursuant to Article 80-3 (1) 1 of the Act and contributions from other accounts of the National Federation under subparagraph 2 of the same paragraph shall be the amount calculated by multiplying the annual balance of deposits, etc. (referring to deposits, etc. under Article 80-2 (1) of the Act; hereafter the same shall apply) by the rate fixed by the Committee (hereafter referred to as the "rate" in this Article) within the limits not exceeding 5/1,000: Provided, That in cases of mutual aid money, etc. under Article 19-8 (1) 2, it means the amount calculated according to the following formula: [(A+B)÷2×Rate]. <Amended by Presidential Decree No. 24096, Sep. 7, 2012> |
| (2) |
"A" in the formula under the proviso to paragraph (1) shall be the total amount of amounts pursuant to the following classification, and "B" shall be fees for mutual aid (referring to fees for mutual aid received in the immediately preceding business year of the business year to which the period for payment of contributions belongs) received according to mutual aid contracts: <Newly Inserted by Presidential Decree No. 24096, Sep. 7, 2012> |
| 1. |
A contract under which a reason for payment of mutual aid money, etc. (referring to the amount agreed to be paid or distributed to a contracting party to mutual aid where a reason for payment of mutual aid money occurs under a mutual aid contract or a contracting party to mutual aid requests revocation of such contract; hereafter referred to as "mutual aid money, etc." in this paragraph) has not occurred as of the end of each period for settlement of accounts: Accumulated fees for mutual aid and prepaid fees for mutual aid, both of which have been calculated based on the amount that should be paid at the time of revocation of a mutual aid contract according to methods stipulated in the mutual aid regulations pursuant to Article 97 of the Act by item of mutual aid or by lapse of the period of a contract; |
| 2. |
A contract under which a reason for payment of mutual aid, etc. has occurred as of the end of each period for settlement of accounts: The total amount of the following amounts: |
| (a) |
The amount that should be paid has been determined but has not been paid yet; |
| (b) |
Where mutual aid money has not been paid yet because the amount that should be paid has not been determined, the estimated amount of such mutual aid money; |
| (c) |
In cases of the pendency of action in relation to the amount of mutual aid money, etc. to be paid, the value of such action; |
| 3. |
The amount accumulated by the National Federation and a union for distribution to contracting parties to mutual aid according to mutual aid contracts. |
| (3) |
The term "borrowed loans prescribed by Presidential Decree" in Article 80-3 (1) 3 of the Act means loans borrowed from insured financial institutions. |
| (4) |
Each union shall pay the contribution under paragraph (1) within three months from the date on which each business year ends, and shall also pay the late payment charge, as prescribed by the Committee, if it fails to pay the contribution by the deadline. |
| (5) |
Other matters necessary for the payment of contributions shall be prescribed by the Committee. |
[This Article Newly Inserted by Presidential Decree No. 18113, Nov. 4, 2003]
law view
| Article 19-12 (Management and Operation of Fund) |
|
| (1) |
The fund shall be managed as a special account. |
| (2) |
Spare cash of the fund may be managed by any of the following means: |
| 1. |
Depositing it in an insured financial institution or a communications agency; |
| 2. |
Other methods prescribed by the Committee. |
| (3) |
Accounting of the fund shall be conducted by objects of guarantee under subparagraphs of Article 19-8 (1). <Newly Inserted by Presidential Decree No. 24096, Sep. 7, 2012> |
[This Article Newly Inserted by Presidential Decree No. 18113, Nov. 4, 2003]
law view
| Article 19-13 (Purpose of Fund) |
|
| (1) |
The fund shall be used for the following purposes: <Amended by Presidential Decree No. 20230, Aug. 22, 2007; Presidential Decree No. 20653, Feb. 29, 2008; Presidential Decree No. 20885, Jun. 25, 2008> |
| 1. |
Where a union or other accounts of the National Federation is unable to pay deposits, etc. pursuant to Article 80-2 (4) of the Act, payment of such deposits; |
| 2. |
Financial aid for a merger of unions falling under any of the following items or for the assignment of contracts or for business normalization under Article 86-4 of the Act: |
| (a) |
A union subject to the management under administratorship by an administrator appointed by the Financial Services Commission pursuant to Article 86 of the Act; |
| (b) |
A union, the financial structure of which the Committee deems necessary to be improved for business normalization; |
| 4. |
Other purposes determined by the Committee, including the payment of expenses required for the management and operation of the fund. |
| (2) |
The National Federation shall, when it grants financial aid under paragraph (1) 2, consider as to how fairly the person liable for insolvency of the union subject to the financial aid takes his/her shares of losses of the union and how wiling the union is in making efforts to restructure itself on its own. |
| (3) |
The National Federation shall, when it grants the financial aid under paragraph (1) 2, make efforts to minimize losses of the fund by conducting an actual inspection on the assets and liabilities of the union in advance to grasp the objective view of the current status of business management and finance of the union. <Newly Inserted by Presidential Decree No. 20230, Aug. 22, 2007> |
| (4) |
The National Federation shall prepare and retain data proving that the financial aid under paragraph (1) 2 has been granted in compliance with paragraph (3). <Newly Inserted by Presidential Decree No. 20230, Aug. 22, 2007> |
| (5) |
Other matters necessary for the financial aid under paragraph (1) 2, the principle of minimum expenditure and the detailed criteria and procedures for related data under paragraphs (3) and (4) shall be prescribed by the National Federation after deliberation by the Committee. <Newly Inserted by Presidential Decree No. 20230, Aug. 22, 2007> |
[This Article Newly Inserted by Presidential Decree No. 18113, Nov. 4, 2003]
law view
| Article 19-14 (Withholding Payment of Deposits, etc.) |
|
| (1) |
The term "amount prescribed by Presidential Decree" in Article 80-4 (3) of the Act means any of the following amounts: <Amended by Presidential Decree No. 20947, Jul. 29, 2008> |
| 1. |
The amount of claims for the deposits and installment savings that a union member or any other person has provided the union as security for him/herself or a third party and the amount of guaranteed obligations that the union member or the person owes to the union; |
| (2) |
The Committee shall, when it withholds repayment of deposits under Article 80-2 (4) of the Act pursuant to paragraph (1), deliver a written statement containing the following details to the union member or any other person who claims the payment of deposits: |
| 1. |
The amount of deposit the payment of which is withheld; |
| 2. |
The grounds on which payment of deposits is withheld; |
| 3. |
The time period during which payment of deposits is withheld; |
| 4. |
The procedure and method for filing claims for payment of withheld deposits when the grounds for withholding the payment terminate or the time period for withholding the payment expires. |
[This Article Newly Inserted by Presidential Decree No. 18113, Nov. 4, 2003]
law view
| Article 20 (Allotted Expenses) |
|
law view
| Article 20-2 (Guidelines for Soundness in Business Management) |
|
The guidelines for soundness in business management which are to be prescribed by the Financial Services Commission pursuant to Article 83-3 (1) 1 through 5 of the Act shall include the following: <Amended by Presidential Decree No. 20653, Feb. 29, 2008; Presidential Decree No. 24096, Sep. 7, 2012>
| 1. |
Matters concerning soundness in financial structure: |
| (a) |
The equity capital-to-assets ratio; |
| (b) |
The reserve for bad debts-to-amount of mandatory reserves ratio; |
| (c) |
The reserve for retirement benefits-to-estimated amount of retirement benefits ratio; |
| 2. |
Matters concerning soundness of assets: |
| (a) |
The extent of assets subject to the classification of soundness of assets; |
| (b) |
The grades and standards for the classification of soundness of assets; |
| 3. |
Matters concerning the accounting and settlement of accounts: |
| (a) |
Guidelines for the indication of the financial status and the state of profit or loss; |
| (b) |
Guidelines for the accumulation of allowances and reserves; |
| (c) |
Guidelines for writing-off bad debts; |
| 4. |
Matters concerning risk management: |
| (a) |
The basic policy on risk management; |
| (b) |
Management's roles for risk management; |
| (c) |
The internal control system required for risk management; |
| 5. |
Other matters necessary for securing the soundness of business management: Standards for loans against deposits, installment savings, investments, etc. |
[This Article Wholly Amended by Presidential Decree No. 16857, Jun. 27, 2000]
law view
| Article 21 (Reporting on Unions subject to Revocation of Authorization for Establishment) |
|
The Governor of the Financial Supervisory Service established pursuant to the Act on the Establishment, etc. of Financial Services Commission (hereafter referred to as the "Governor of the Financial Supervisory Service") shall, when he/she discovers in the course of guidance, inspection, or supervision of a union that a ground exists for the revocation of authorization for establishment of the union under Article 85 (2) of the Act, immediately report it to the Financial Services Commission along with related data. <Amended by Presidential Decree No. 16323, May 24, 1999; Presidential Decree No. 16857, Jun. 27, 2000; Presidential Decree No. 20230, Aug. 22, 2007; Presidential Decree No. 20653, Feb. 29, 2008>
law view
| Article 21-2 (Requirements etc. for Business Administration) |
|
| (1) |
The term "illegal or non-performing loans as prescribed by Presidential Decree" in Article 86 (1) 1 of the Act means those falling under any of the following subparagraphs: |
| 1. |
The amount of non-performing loans, in cases where the amount of non-performing loans out of the aggregate of loans under subparagraph 5 (a) of Article 2 of the Act exceeds the greater of its equity capital or the amount of investments; |
| 2. |
The amount of non-performing loans, in cases where the aggregate of the non-performing loans exceeds two times the greater of its equity capital or the amount of investments. |
| (2) |
The term "if it falls within the criteria as prescribed by Presidential Decree" in Article 86 (1) 4 of the Act means cases where it fails to meet the following standards. In such cases, further specific standards for each subparagraph shall be prescribed by the Financial Services Commission: <Newly Inserted by Presidential Decree No. 18113, Nov. 4, 2003; Presidential Decree No. 20653, Feb. 29, 2008> |
| 1. |
Standards for the equity capital kept in preparation against credit risk of the union, including the equity-capital-to-assets ratio; |
| 2. |
Standards for the soundness of assets owned by a union, including claims for repayment of loans; |
| 3. |
Standards for the evaluation of the actual state of business management. |
| (3) |
A union shall, when it becomes subject to business administration, issue public notice thereof at the trading floors of its head office and branch offices forthwith, and shall publish the public notice in a daily newspaper circulated in the area where the head office of the union is located within two business days. |
[This Article Newly Inserted by Presidential Decree No. 16857, Jun. 27, 2000]
law view
| Article 21-3 (Methods etc. of Business Administration) |
|
| (1) |
The scope of the business administration under Article 86 (1) of the Act is as follows: <Amended by Presidential Decree No. 20653, Feb. 29, 2008> |
| 1. |
Management of supply of and demand for funds, the extension of credit, and the receipt of deposits; |
| 2. |
Collection of illegal and non-performing loans and securing claims therefore; |
| 3. |
Rectification of illegal and wrongful acts; |
| 4. |
Disposal of non-performing assets; |
| 5. |
Improvement of the management of human resources and organization; |
| 6. |
Other matters prescribed by the Financial Services Commission concerning the management of unions. |
| (2) |
Further details concerning business administration, including the method of business management by business administrators and reporting on the matters under business administration shall be prescribed by the Financial Services Commission. <Amended by Presidential Decree No. 20653, Feb. 29, 2008> |
[This Article Newly Inserted by Presidential Decree No. 16857, Jun. 27, 2000]
law view
| Article 21-4 (Time Period for Business Administration) |
|
The time period for business administration under Article 86 of the Act shall be six months, but may be extended only once by no more than six months, if the Financial Services Commission deems it necessary to protect union members and promote business normalization: Provided
, That the time period of such business administration may be extended until the bankruptcy administrator under Article 355 of the Debtor Rehabilitation and Bankruptcy Act is appointed, in cases where an application for bankruptcy is filed in accordance with Article 88 of the Act. <Amended by Presidential Decree No. 20142, Mar. 29, 2006; Presidential Decree No. 20653, Feb. 29, 2008>
[This Article Newly Inserted by Presidential Decree No. 16857, Jun. 27, 2000]
law view
| Article 21-5 (Suspension etc. of Payment for Obligations) |
|
| (1) |
The obligations for which the Financial Services Commission has the power to suspend the payment pursuant to Article 86 (2) of the Act shall be those that do not fall under any of the following subparagraphs: <Amended by Presidential Decree No. 18113, Nov. 4, 2003; Presidential Decree No. 19010, Aug. 19, 2005; Presidential Decree No. 20142, Jun. 29, 2007; Presidential Decree No. 20653, Feb. 29, 2008> |
| 1. |
Obligations to pay a tax, public due, or rent; |
| 3. |
Funds for the settlement of domestic currency exchange; |
| 4. |
Funds deposited temporarily for vicariously carrying out the business affairs of the State, a public organization, the National Federation, or a financial institution; |
| 5. |
Other obligations deemed necessary by the Financial Services Commission for the maintenance and management of the union. |
| (2) |
The term "if there a ground prescribed by Presidential Decree exists" in Article 86 (5) of the Act means any of the following cases: |
| 1. |
Where it is determined that a union's obligations can be fully paid out of its assets; |
| 2. |
Where it is determined that a union is unable to fully pay its obligations, but it is possible to protect its members by a merger with another union; |
| 3. |
Where it is determined that a union is unable to fully pay its obligations, but it is possible to normalize its business within three years with financial aid from the National Federation or by its own efforts for self-rescue. |
| (3) |
The Financial Services Commission shall, when the suspension of payment for obligations, imposed upon a union pursuant to paragraph (2), is completely lifted, terminate the business administration of the union forthwith. <Amended by Presidential Decree No. 20653, Feb. 29, 2008> |
[This Article Newly Inserted by Presidential Decree No. 16857, Jun. 27, 2000]
law view
| Article 21-6 (Extent, etc. of Related Persons) |
|
The term "person who has interest in or a special relationship with a union as prescribed by Presidential Decree" in the main text of Article 86-2 (1) of the Act means a person falling under any of the following subparagraphs:
| 1. |
Any executive or employee who is liable for the insolvency of the union; his/her spouse; his/her relative by blood or by marriage in the fourth degree or closer; |
| 2. |
Any person who has borrowed an illegal or non-performing loan from the union; his/her spouse; his/her relative by blood or by marriage in the fourth degree or closer. |
[This Article Newly Inserted by Presidential Decree No. 16857, Jun. 27, 2000]
law view
| Article 22 (Criteria for Recommendation of Mergers) |
|
Pursuant to Article 89 (4) of the Act, the Financial Services Commission may prescribe the criteria necessary when the National Federation Chairperson recommends a union that falls under any of the following subparagraphs to merge with another union or requests such union to take measures for improving its financial state, such as disposal of its own assets and downsizing of its organization: <Amended by Presidential Decree No. 20653, Feb. 29, 2008>
| 1. |
A union in whose case a result of the analysis and evaluation of data in accordance with Article 89 (3) of the Act reveals that it fails to meet the guidelines for soundness of business management under Article 83-3; |
| 2. |
A union that needs to make improvement in its business management the analysis and evaluation of data in accordance with Article 89 (3) of the Act reveals that its financial state or management is unsound. |
[This Article Newly Inserted by Presidential Decree No. 16857, Jun. 27, 2000]
law view
| Article 23 Deleted. <by Presidential Decree No. 16249, Apr. 19, 1999> |
|
law view
| Article 24 (Entrustment, etc. of Authority) |
|
| (1) |
Pursuant to Article 96 (1) of the Act, the Financial Services Commission shall entrust the Governor of the Financial Supervisory Service with its authority to: <Amended by Presidential Decree No. 23316, Nov. 23, 2011> |
| 5. |
Control matters relating to the public disclosure of important information and data relating to the status of business management under Article 83-2 of the Act; |
| 10. |
Suspend the payment for obligations, suspend the performance of executives' duties, or conduct asset inspections pursuant to Article 86 (2) of the Act; |
| 12. |
Lift the suspension of payment for obligations or suspension of performance of executives' duties pursuant to Article 86 (5) of the Act; |
| 14. |
Issue notices of business administration and request to register such business administration pursuant to Article 86-3 of the Act; |
| 22. |
Recommend the revision of the guidelines for internal control pursuant to Article 19-3 (3); |
| 23. |
Accept notices on appointment or dismissal of compliance officers pursuant to Article 19-4 (1). |
| (2) |
Pursuant to Article 96 (1) of the Act, the Financial Services Commission shall entrust the National Federation Chairperson with its authority to announce the work process prescribed in Article 39 (3) of the Act. <Newly Inserted by Presidential Decree No. 23316, Nov. 23, 2011> |
| (3) |
The Governor of the Financial Supervisory Service may entrust the National Federation Chairperson with his/her authority to: <Amended by Presidential Decree No. 16857, Jun. 27, 2000; Presidential Decree No. 20230, Aug. 22, 2007> |
| 2. |
Demand unions to submit reports or data on their business or assets, demand persons concerned to make appearances and make statements in their favor pursuant to Article 83 (3) of the Act; |
| 3. |
Demand unions to take measures against executives or employees pursuant to Article 84 (1) 2 or 3; |
| 4. |
Appoint temporary executives and request to register such appointments pursuant to Article 84 (3) and (4). |
| (4) |
Whenever the Governor of the Financial Supervisory Service exercises the power under any provision of paragraph (1) 3, 9, 10, 12, 13, 15 through 17, 19 and 20, he/she shall report it to the Financial Services Commission. <Amended by Presidential Decree No. 16249, Apr. 19, 1999; Presidential Decree No. 16857, Jun. 27, 2000; Presidential Decree No. 20230, Aug. 22, 2007; Presidential Decree No. 20653, Feb. 29, 2008; Presidential Decree No. 23316, Nov. 23, 2011> |
law view
| Article 24-2 (Processing of Sensitive Information and Personally Identifiable Information) |
|
| (1) |
The Financial Services Commission (including persons entrusted with the authority of the Financial Services Commission pursuant to Article 24) or the Governor of the Financial Supervisory Service (including persons entrusted with the authority of the Governor of the Financial Supervisory Service pursuant to Article 24) may process data containing information on criminal history records prescribed in subparagraph 2 of Article 18 of the Enforcement Decree of the Personal Information Protection Act, resident registration numbers, passport numbers or foreigner registration numbers prescribed in subparagraph 1, 2 or 4 of Article 19, if it is unavoidable to perform the following affairs: |
| 2. |
Affairs concerning supervision, reporting, inspection, etc. and follow-up measures pursuant to Article 83 of the Act; |
| (2) |
The Financial Services Commission or the Governor of the Financial Supervisory Service may process data containing personal information prescribed in the part other than the subparagraphs of paragraph (1), if it is unavoidable to perform the following affairs: |
[This Article Newly Inserted by Presidential Decree No. 23488, Jan. 6, 2012]
law view
| Article 25 (Procedures for Imposition and Collection of Fines for Negligence) |
|
| (1) |
The Financial Services Commission shall, whenever it intends to impose a fine for negligence pursuant to Article 101 (2) of the Act, investigate and corroborate on the violation in question, and shall notify the person subject to the disposition of fine for negligence of the details in writing, clearly stating the facts relevant to the violation, the time period for raising an objection, and other matters and demanding payment thereof. <Amended by Presidential Decree No. 20653, Feb. 29, 2008> |
| (2) |
The Financial Services Commission shall, whenever it intends to impose a fine for negligence under paragraph (1), provide the person subject to the disposition of fine for negligence an opportunity to make a statement on his/her case, orally or in writing, within a given period of time, of at least ten days. In such cases, it shall be deemed that the person has no objection if he/she fails to make a statement within the given period of time. <Amended by Presidential Decree No. 20653, Feb. 29, 2008> |
| (3) |
The Financial Services Commission shall consider the motive and consequences of the relevant violation in determining the amount of the fine for negligence. <Amended by Presidential Decree No. 20653, Feb. 29, 2008> |
| (4) |
As to the procedure for collection of fines for negligence, the Enforcement Rules of the Management of the National Funds Act shall apply mutatis mutandis. In such cases, the notice of demand for payment shall state the method and time period for raising an objection. <Amended by Presidential Decree No. 20230, Aug. 22, 2007> |
[This Article Newly Inserted by Presidential Decree No. 18113, Nov. 4, 2003]
ADDENDA
Article 1 (Enforcement Date)
This Decree shall enter into force on April 1, 1998.
Article 2 (Transitional Measures concerning Welfare Services)
Local community development projects implemented by a union pursuant to former provisions before this Decree enters into force shall be deemed to have been approved by the National Federation Chairperson pursuant to the amended provision of Article 16 (2).
Article 3 Deleted. <by Presidential Decree No. 16249, Apr. 19, 1999>
Article 4 (Special Exception to Real Estate for Business Purposes)
Real estate owned by the former National Federation of Credit Unions for business purposes shall be deemed real estate owned by the National Federation for business purposes until December 31, 2003, notwithstanding the amended provisions of Article 18.
ADDENDA <Presidential Decree No. 16249, Apr. 19, 1999>
| (1) |
(Enforcement Date) This Decree shall enter into force on the date of its promulgation. |
| (2) |
(Transitional Measures Following Change in Common Bond) In cases where the extent of common bond of a local union established pursuant to former provisions as of the date this Decree enters into force deviate from the boundary of a single Si (which shall be limited to a Si without any Gu established therein)/ Gun/Gu, it may maintain its common bond as before, notwithstanding the amended provisions of Article 12 (1) 1. |
ADDENDA <Presidential Decree No. 16323, May 24, 1999>
Article 1 (Enforcement Date)
This Decree shall enter into force on the date of its promulgation.
Articles 2 through 4 Omitted.
ADDENDA <Presidential Decree No. 16857, Jun. 27, 2000>
Article 1 (Enforcement Date)
This Decree shall enter into force on the date of its promulgation.
Article 2 (Transitional Measures concerning Equity Capital)
| (1) |
In calculating the limit on loans that may be borrowed by a union in accordance with Article 41 of the Act, the former provisions shall be applicable to loans borrowed by a union before this Decree enters into force, notwithstanding the amended provisions of Article 1-2. |
| (2) |
In calculating the limit on loans to a single person in accordance with Article 42 of the Act, the former provisions shall apply to loans already granted by a union before this Decree enters into force and the loans that a union will grant during one year following the date of this Decree enters into force. |
| (3) |
In calculating the limit on financial resources that a union is permitted to spend for welfare services in accordance with Article 16 (3), the former provisions shall apply to the equity capital in connection with the financial resources that may be spent for the welfare services already provided by a union before this Decree enters into force. |
ADDENDA <Presidential Decree No. 18113, Nov. 4, 2003>
Article 1 (Enforcement Date)
This Decree shall enter into force on the date of its promulgation: Provided
, That the amended provisions of Articles 19-8 through 19-14 shall enter into force on January 1, 2004.
Article 2 (Effective Period)
| (1) |
The amended provisions of Article 17 (4) 3 shall be effective from the date this Decree enters into force until December 31, 2020. |
| (2) |
The amended provisions of Article 19-8 (1) 3 shall be effective for three years from the date the said subparagraph enters into force. |
Article 3 (Transitional Measures concerning Types of and Limits on Securities)
In cases where the fund has not been managed in conformity with the extent of and limits on fund management under the amended provisions of Article 17-2 (2) and 19-7 (3) and (4) as of the date this Decree enters into force, the securities with a fixed maturity shall be disposed of by the maturity, while necessary measures shall be taken for those without any specific maturity date to meet the requirements under the amended provisions of Articles 17-2 (2) and 19-7 (3) and (4) no later than December 31, 2004.
ADDENDA <Presidential Decree No. 18297, Feb. 28, 2004>
Article 1 (Enforcement Date)
This Decree shall enter into force on March 1, 2004.
Articles 2 through 5 Omitted.
ADDENDA <Presidential Decree No. 19010, Aug. 19, 2005>
Article 1 (Enforcement Date)
This Decree shall enter into force on December 1, 2005.
Articles 2 and 3 Omitted.
ADDENDA <Presidential Decree No. 19422, Mar. 29, 2006>
Article 1 (Enforcement Date)
This Decree shall enter into force on April 1, 2006.
Article 2 Omitted.
ADDENDA <Presidential Decree No. 20142, Jun. 29, 2007>
Article 1 (Enforcement Date)
This Decree shall enter into force on July 1, 2007.
Articles 2 through 5 Omitted.
ADDENDA <Presidential Decree No. 20230, Aug. 22, 2007>
Article 1 (Enforcement Date)
This Decree shall enter into force three months after the date of its promulgation: Provided
, That the amended provisions of Articles 13 (2) 1-2, 15 (1), 19-7 (2) 4, 19-8 (1) 3, and 24 and the amended provisions of Addenda to the Amendment (Presidential Decree No. 18113) to the Enforcement Decree of the Credit Unions Act shall enter into force on the promulgation date of this Decree.
Article 2 (Transitional Measures concerning Limits on Purchasing of Securities)
| (1) |
A union or the National Federation that fails to manage its fund in conformity to the extent of and limits on the fund management under the amended provisions of Articles 17-2 (2) through (4) and 19-7 (3) through (6) as of the enforcement date of this Decree shall take measures to meet the requirements under the amended provisions of Articles 17-2 (2) through (4) and 19-7 (3) through (6) within one year from the date this Decree enters into force. |
| (2) |
Notwithstanding paragraph (1), a union or the National Federation may dispose of the securities with a fixed maturity by the maturity date, while it may extend the time period for disposal of securities, subject to a prior approval of the Financial Services Commission, if it is foreseen to suffer any loss in investment due to a sudden reduction of prices of the securities or by selling off a substantial number of securities at once or if any other compelling reason to do so exists. |
| (3) |
A union or the National Federation that desires to obtain approval under paragraph (2) shall submit to the Financial Services Commission, by no later than three months before the expiration of the time period under paragraph (1), a detailed plan for taking measures to meet the requirements under the amended provisions of Articles 17-2 (2) through (4) and 19-7 (3) through (6). In such cases, the Financial Services Commission shall make a decision as to whether to grant the approval and shall issue a notice of its decision within one month from the date on which the detailed plan is filed. |
ADDENDA <Presidential Decree No. 20653, Feb. 29, 2008>
Article 1 (Enforcement Date)
This Decree shall enter into force on the date of its promulgation: Provided, That the amended parts of the Presidential Decrees promulgated before the enforcement of this Decree, but are hereby amended pursuant to Article 2 of Addenda although their enforcement dates have not yet arrived, shall enter into force on the respective enforcement dates of the Presidential Decrees.
Article 2 Omitted.
ADDENDUM <Presidential Decree No. 20885, Jun. 25, 2008>
This Decree shall enter into force on the date of its promulgation.
ADDENDA <Presidential Decree No. 20947, Jul. 29, 2008>
Article 1 (Enforcement Date)
This Decree shall enter into force on February 4, 2009.
Articles 2 through 28 Omitted.
ADDENDA <Presidential Decree No. 22493, Nov. 15, 2010>
Article 1 (Enforcement Date)
This Decree shall enter into force on November 18, 2010.
Articles 2 through 5 Omitted.
ADDENDA <Presidential Decree No. 23316, Nov. 23, 2011>
Article 1 (Enforcement Date)
This Decree shall enter into force three months after the date of its promulgation: Provided
, That the amended provisions of Article 16-2 shall enter into force on January 1, 2012.
Articles 2 (Transitional Measures concerning Limits of Loans, etc. per Person)
| (1) |
Any union which has provided loans, etc. in excess of the limits prescribed by the amended provisions of Article 16-4 (1) as at the time this Decree enters into force shall comply with the amended provisions within two years after this Decree enters into force. |
| (2) |
Notwithstanding paragraph (1), a union may extend the loan period by obtaining approval from the National Federation Chairperson by the time two years pass from the date of maturity in cases of the loans, etc., which mature within two years from the enforcement date of this Decree, and by the date of maturity in cases of the loans, etc. which mature two years after this Decree enters into force, if unavoidable grounds exist considering the scale of loans, etc. |
| (3) |
A union that intends to obtain approval pursuant to paragraph (2) shall submit a redemption plan to comply with the amended provisions of Article 16-4 (1) to the National Federation Chairperson by no later than three months prior to the expiration of the period prescribed in paragraph (1), and the National Federation Chairperson shall determine whether to approve the redemption plan and notify the union of the determination made within one months after receipt of such redemption plan. |
ADDENDA <Presidential Decree No. 23356, Dec. 8, 2011>
Article 1 (Enforcement Date)
This Decree shall enter into force on December 8, 2011. (Proviso Omitted.)
Article 2 Omitted.
ADDENDA <Presidential Decree No. 23488, Jan. 6, 2012>
Article 1 (Enforcement Date)
This Decree shall enter into force on the date of its promulgation. (Proviso Omitted.)
Article 2 Omitted.
ADDENDA <Act No. 24096, Sep. 7, 2012>
Article 1 (Enforcement Date)
This Decree shall enter into force on the date of its promulgation: Provided
, That the amended provisions of Article 20-2 shall enter into force three months after the date of its promulgation.
Article 2 (Transitional Measures concerning Mutual Aid Money under Former Mutual Aid Contracts and Other Agreed Pecuniary Claims)
Mutual aid money for which union members, etc. have a claim against the National Federation under the former mutual aid contract and other agreed pecuniary claims at the time this Decree enters into force shall be deemed mutual aid money and other agreed pecuniary claims under the amended provision of Article 19-8 (1) 2.
