Enforcement Decree Of The Depositor Protection Act

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 Article 1 (Purpose)
 

The purpose of this Decree is to provide for the matters delegated by the Depositor Protection Act and matters necessary for its enforcement.

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 Article 2 (Financial Institutions Excluded from Insured Financial Institutions)
 

(1)
Deleted.
(2)
The term "insurance company prescribed by Presidential Decree" in subparagraph 1 (k) of Article 2 of the Depositor Protection Act (hereinafter referred to as the "Act") means an insurance company which is a stock company mainly engaging in the re-insurance business.
[This Article Wholly Amended by Presidential Decree No. 17149, Mar. 17, 2001]

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 Article 3 (Scope of Deposits, etc.)
 

(1)
Money falling under any of the following subparagraphs, which has been raised by insured financial institutions provided for in subparagraph 1 of Article 2 of the Act (hereinafter referred to as "insured financial institutions"), shall not be included in the scope of deposits, etc. under subparagraph 2 of Article 2 of the Act (hereinafter referred to as "deposits, etc."):
1.
Money raised from the Government or a local government;
2.
Money raised from the Bank of Korea, the Financial Supervisory Service established under the Act on the Establishment, etc. of Financial Services Commission (hereinafter referred to as the "Financial Supervisory Service"), or the Korea Deposit Insurance Corporation established under Article 3 of the Act (hereinafter referred to as the "Corporation"); and
3.
Money raised from an insured financial institution: Provided, That where the insured financial institution has deposited a defined contribution (hereinafter referred to as "defined contribution") under subparagraph 8 of Article 2 of the Guarantee of Workers' Retirement Benefits Act or a reserve of a personal retirement account (hereinafter referred to as "personal retirement account") under subparagraph 9 of the same Article, such contribution or reserve shall be excluded.
(2)
Money which has been raised by insured financial institutions listed in subparagraph 1 (a) through (i) of Article 2 of the Act (hereinafter referred to as "banks") in the manner falling under any of the following subparagraphs shall not be included in the scope of deposits, etc. under subparagraph 2 (a) of Article 2 of the Act:
1.
Deleted;
2.
Transferable deposit certificates;
3.
Development trust;
4.
Issue of bonds; and
5.
Repurchase agreement.
(3)
Money which insured financial institutions listed in subparagraph 1 (j) of Article 2 of the Act (hereinafter referred to as "investment trader and investment broker") receive as deposits, etc. from their customers and which falls under any of the following subparagraphs shall not be included in the scope of deposits, etc. under subparagraph 2 (b) of Article 2 of the Act (hereafter referred to as "customer deposit money" in this paragraph):
1.
Money in deposit for the payment of taxes imposed on investment deposit money;
2.
Money raised by repurchase agreements;
3.
Money in deposit for the acquisition of, or subscription for the purchase of, securities subscribed or sold under the Financial Investment Services and Capital Markets Act; and
4.
Money trusted in securities finance companies authorized pursuant to the Financial Investment Services and Capital Markets Act (hereinafter referred to as "securities finance companies") among the money in deposit for the guarantee of securities loaned to customers under the same Act.
(4)
Premiums which insured financial institutions listed in subparagraph 1 (k) of Article 2 of the Act (hereinafter referred to as "insurance companies") have received and which fall under any of the following subparagraphs shall not be included in the scope of deposits, etc. under subparagraph 2 (c) of Article 2 of the Act:
1.
Premiums received under insurance contracts of which policy-holders and premium payers are juristic persons: Provided, That premiums received from or under defined contributions, personal retirement accounts or retirement insurance contracts under Article 2 of the Addenda to the Guarantee of Workers' Retirement Benefits Act (Act No. 7379) shall be excluded;
2.
Premiums received under guarantee insurance contracts; and
3.
Premiums received under re-insurance contracts.
(5)
Money raised by an overseas branch of an insured financial institution, which is acknowledged by the Corporation to be protected under the deposit insurance system of a nation where the relevant overseas branch is located shall not be included in the scope of deposits, etc.
(6)
Necessary matters, such as procedures for and timing of acknowledgment under paragraph (5), shall be determined by the Corporation.

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 Article 4 (Establishment Registration)
 

(1)
The establishment of the Corporation shall be registered at the site of its main office within two weeks from the date on which the Corporation obtains authorization of the articles of association from the Financial Services Commission.
(2)
The matters to be registered for establishment by the Corporation shall be as follows:
1.
Purpose;
2.
Title;
3.
Seat of its main office;
4.
Name, resident registration number, and address of the president;
5.
Names and addresses of the vice president, directors, and auditor; and
6.
Methods of public notification.

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 Article 4-2 (Establishment Registration of Branch Office, etc.)
 

Where the Corporation has established a branch office or sub-branch, it shall register:
1.
At the seat of its main office, the seat and establishment date of the branch office or sub-branch within two weeks of such establishment; and
2.
At the seat of the branch office or sub-branch, the matters as specified in Article 4 (2) 1 through 4 and 6 within three weeks of such establishment.
[This Article Newly Inserted by Presidential Decree No. 17823, Dec. 30, 2002]

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 Article 5 (Movement Registration)
 

(1)
Where the Corporation moves its main office to the jurisdictional area of another registry office, it shall register the purport of such movement within two weeks at the former registry office, and the matters listed in any subparagraph of Article 4 (2) within three weeks at the new registry office.
(2)
Where the Corporation moves its branch office or sub-branch to the jurisdictional area of another registry office, it shall register the new seat and date of movement of such branch office or sub-branch at the seats of its main office and its former branch office or sub-branch, and the matters listed in Article 4 (2) 1 through 4 and 6 at the new seat of such branch office or sub-branch, respectively, within three weeks.
(3)
Where the Corporation moves its main office, branch office, or subbranch within the jurisdictional area of the same registry office, it shall register only the purport of the movement.

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 Article 6 (Alteration Registration)
 

Where the Corporation alters matters listed in any subparagraph of Article 4 (2), it shall register the altered matters at the seat of its main office within two weeks: Provided, That in the case of any alteration in the matters of Article 4 (2) 1 through 4 and 6, it shall also register the altered matters at the seat of its branch office or sub-branch within three weeks.

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 Article 7 (Agent's Appointment)
 

(1)
Where the president of the Corporation appoints an agent under Article 15-2 (1) of the Act, he shall register the following matters at the seat of its main office, branch office, or sub-branch, which has such agent, within two weeks. The same shall also apply where registered matters are altered:
1.
Name, resident registration number and address of the agent;
2.
Deleted; and
3.
Details of restriction where the agent's powers are restricted.
(2)
The staff who may be appointed as an agent to perform judicial acts on behalf of the president under Article 15-2 (2) of the Act, shall have been engaged in affairs related to a trial for not less than two years.

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 Article 8 (Reckoning of Registration Period)
 

Where the Corporation's matters to be registered under the provisions of this Decree shall be authorized or approved by the Financial Services Commission, the registration period shall begin from the date on which the documents on its authorization or approval have arrived.

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 Article 9 (Applications, etc. for Registration)
 

(1)
An establishment registration under Article 4 shall be made by joint application of incorporators, and a registration under Articles 4-2, 5 through 7 shall be made by the application of the president of the Corporation.
(2)
Registration applications under Articles 4, 4-2, 5 through 7 shall be accompanied by documents proving their causes.

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 Article 10 (Operation of Deposit Insurance Committee)
 

(1)
Meetings of the Deposit Insurance Committee under Article 8 of the Act (hereinafter referred to as the "Committee") shall be convened by the chairman on such terms and conditions as the articles of incorporation may determine.
(2)
The vice president, directors, and auditor of the Corporation may attend meetings of the Committee, and state their opinions.
(3)
The members who attend meetings of the Committee may be granted an allowance within the scope of the Corporation's budget: Provided, That this shall not apply where public officials attend the Committee in connection with their duties.
(4)
The matters necessary for the operation of the Committee other than matters provided in this Decree shall be determined by the chairman through a resolution by the Committee.

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 Article 11 (Qualifications for Commissioned Members of Deposit Insurance Committee)
 

Members commissioned by the Financial Services Commission under Article 9 of the Act shall be those who are not disqualified as officers and employees under Article 16 of the Act, and who have extensive knowledge and experience in finance, economy or law.

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 Article 12 (Business Agency)
 

(1)
Agencies under Article 20 of the Act (hereafter referred to as "agencies" in this Article) shall be as follows:
1.
Korea Asset Management Corporation established under the Act on the Efficient Disposal of Non-Performing Assets, etc. of Financial Institutions and the Establishment of Korea Asset Management Corporation (hereinafter referred to as the "Korea Asset Management Corporation");
2.
Insured financial institutions;
3.
Korea Federation of Savings Banks established under the Mutual Savings Banks Act (hereinafter referred to as the "Korea Federation of Savings Banks"); and
4.
National Credit Union Federation of Korea established under the Credit Unions Act ("hereinafter referred to as the "National Credit Union Federation of Korea").
(2)
Where the Corporation has an agency execute business by proxy under Article 20 of the Act, it may pay commissions to the agency on such terms and conditions as the Committee may determine.

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 Article 12-2 (Standards for Recognition as Insured Financial Institution Threatened with Insolvency)
 

The term "standards as set by the Presidential Decree" in Article 21 (2) of the Act means the standards as set by the Financial Services Commission under Article 10 (2) of the Act on the Structural Improvement of the Financial Industry.
[This Article Newly Inserted by Presidential Decree No. 17823, Dec. 30, 2002]

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 Article 12-3 (Scope of Principal Shareholders)
 

The term "principal shareholders prescribed by Presidential Decree" in part other than the subparagraphs of Article 21-2 (1) of the Act means persons falling under any of the following subparagraphs:
1.
Shareholders possessing, on their accounts no matter whose names the accounts stand in, the stocks or investment shares in excess of 10/100 of the total number of issued voting stocks or investment shares of the juristic person, which is a debtor; and
2.
Shareholders exercising de facto influence over the major managerial matters of the juristic person which is a debtor, such as an appointment and dismissal of executives.
[This Article Newly Inserted by Presidential Decree No. 17149, Mar. 17, 2001]

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 Article 12-4 (Method and Procedure for Investigation)
 

(1)
The Corporation may, where deemed necessary for the investigation under Article 21-2 (7) of the Act (hereafter referred to as the "investigation" in this Article), have its employees conduct an investigation of the books, documents and other data pertaining to the business and the status of property of the insolvent financial institutions, etc. and the persons related to such insolvency as described in Article 21-2 (1) of the Act.
(2)
The Corporation shall, upon making an investigation, notify in advance those subject to such investigation of the necessary matters such as the reasons for investigation and its scope, etc.: Provided, That this shall not apply in case where such prior notification results in a failure of achieving the purpose of investigation due to destruction of evidences, etc.
(3)
The Corporation shall, upon making an investigation, grant those subject to such investigation an opportunity to make a sufficient statement.
(4)
The Corporation shall, upon completion of an investigation, notify in writing the parties concerned of its results.
[This Article Newly Inserted by Presidential Decree No. 17149, Mar. 17, 2001]

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 Article 12-5 (Classification of Public Institutions and Financial Institutions)
 

The term "public institutions and financial institutions that are prescribed by Presidential Decree" in the main sentence of Article 21-3 (1) of the Act means the following institutions:
1.
Enterprises in which the Government has invested not less than 50/100 of their paid-in capital;
2.
Juristic persons established under any special Act;
3.
Clearing houses designated under the Bills of Exchange and Promissory Notes Act or the Check Act;
4.
Local corporations that undertake housing projects or land development projects provided for in Article 2 (1) 7 or 8 of the Local Public Enterprises Act; and
5.
Financial institutions provided for in subparagraph 1 of Article 2 of the Act on Real Name Financial Transactions and Guarantee of Secrecy.
[This Article Newly Inserted by Presidential Decree No. 16827, Jun. 7, 2000]

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 Article 13 (Budget and Settlement of Accounts)
 

The budget of the Corporation shall be subject to approval form the Financial Services Commission prior to the commencement of the fiscal year under Article 23 of the Act, and the settlement of accounts of the Corporation shall be subject to approval from the Financial Services Commission within three months after the closing of the fiscal year.

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 Article 14 (Contributions)
 

(1)
When any insured financial institution obtains authorization or permission for business or establishment, it shall pay the Corporation an amount calculated by multiplying its paid-in capital or contributions by relevant rate for each of the following insured financial institutions within one month from the date of commencing business under Article 24 (4) of the Act:
1.
Banks: 1/100;
2.
Investment traders and investment brokers: 1/100;
3.
Insurance companies: 1/100;
4.
Merchant banks: 5/100;
5.
Insured financial institutions under subparagraph 1 (m) of Article 2 of the Act (hereinafter referred to as "mutual savings banks"): 5/100; and
6.
Deleted.
(2)
When the accumulated amount of accounts by insured financial institutions of the deposit insurance fund established under Article 24 (1) of the Act (hereinafter referred to as the "deposit insurance fund") falls short of the amount to be paid as insurance money to holders (hereinafter referred to as "depositors, etc.") of claims such as deposits under subparagraph 4 of Article 2 of the Act (hereinafter referred to as "claims such as deposits"), the Corporation may have the insured financial institutions of relevant accounts contribute additionally an amount approved by the Financial Services Commission through a decision by the Committee within the scope of the difference within one month from the date on which the Corporation has decided to pay insurance money. In this case, additional contributions shall not exceed the payment limit for contributions under Article 24 (4) of the Act.
(3)
Notwithstanding the provisions of paragraph (1), where an insured financial institution obtains authorization or permission for business or establishment by a merger or division, it shall not pay contributions to the Corporation.
(4)
Any person who has obtained authorization for the investment trade business and the investment brokerage business for the collective investment securities (hereinafter referred to as "collective investment securities") only under Article 9 (21) of the Financial Investment Services and Capital Markets Act from among investment traders and investment brokers, notwithstanding paragraph (1) 2, shall pay a contribution in the amount obtained by multiplying the minimum equity capital amount provided for in attached Table 1 of the Enforcement Decree of the Financial Investment Services and Capital Markets Act by 1/100 within the extent of payable contributions under Article 24 (4) of the Act: Provided, That where any person who has obtained authorization for the investment trade business and the investment brokerage business for collective investment securities only has also obtained authorization for the investment trade business and the investment brokerage business for other securities under Article 12 of the Financial Investment Services and Capital Markets Act, if the amount of a contribution paid when he/she obtained authorization for the investment trade business and the investment brokerage business for collective investment securities only falls short of a contribution amount under paragraph (1) 2, he/she shall additionally pay the difference.
(5)
The Corporation shall determine necessary matters concerning procedures for paying the contributions referred to in the provisions of paragraphs (1), (2) and (4) after undergoing a resolution of the Committee and publish them on its Internet homepage.

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 Article 14-2 (Reduction or Exemption of Interest or Methods of Deferment, etc.)
 

(1)
The Corporation may, with respect to a mutual savings bank account in the deposit insurance fund, reduce or exempt interest for ten years from the date determined by the Committee through a resolution of the Committee within the extent of the balance of loans as of December 31, 2008 pursuant to Article 24-3 (5) of the Act.
(2)
The Corporation may grant deferment for payment of interest to a specific account the liquidity of which is insufficient temporarily through a resolution of the Committee pursuant to Article 24-3 (5) of the Act.
[This Article Newly Inserted by Presidential Decree No. 21532, Jun. 9, 2009]

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 Article 14-3 (Publication of White Paper)
 

The white paper on management of the special accounts published by the Corporation pursuant to Article 24-4 (7) shall include the record of support and record of collection of the special accounts for restructuring of mutual savings banks under paragraph (1) of the same Act.
[This Article Newly Inserted by Presidential Decree No. 22901, Apr. 12, 2011]

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 Article 15 (Methods of Borrowing)
 

(1)
The Corporation may borrow funds on each insured financial institution's account under Article 26 (1) of the Act.
(2)
Where the Corporation intends to borrow funds under paragraph (1), it shall prepare documents in which the following matters are entered, and obtain approval from the Financial Services Commission:
1.
Reasons for borrowing;
2.
Borrowed amount;
3.
Interest rate of loan, method and time limit for the payment of interest;
4.
Method and time limit for the redemption of borrowed money.
(3)
An institution from which the Corporation may, under Article 26 (1) of the Act, borrow funds on the account of the deposit insurance fund or the fund for redemption of deposit insurance fund bonds under Article 26-3 (1) of the Act shall be an institution as provided for in the following subparagraphs. In such cases, the borrowings from the Korea Assets Management Corporation shall include those from the Non-Performing Loan Resolution Fund which it manages and operates:
1.
Korea Federation of Savings Banks;
2.
Securities finance companies;
3.
The Export and Import Bank of Korea established under the Export and Import Bank of Korea Act;
4.
National Credit Union Federation of Korea;
5.
Financial institutions for resolution under Article 36-3 of the Act;
6.
Korea Asset Management Corporation;
7.
Academy of Korean Studies under the Act on the Support of the Academy of Korean Studies.

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 Article 16 (Time for Payment of Premiums)
 

(1)
Insured financial institutions shall pay premiums calculated by the formula in attached Table 1 to the Corporation within three months after the closing of each business year under Article 30 (1) of the Act: Provided, That banks shall pay premiums within one month after the closing of each quarter.
(2)
Where insured financial institutions fail to pay premiums under paragraph (1) by the time limit for payment, they shall pay additional arrears calculated by multiplying the number of days past the deadline for payment by interest rates set by the Committee based on overdue interest rates at the time of the loaning of general funds by the insured financial institutions.
(3)
"Amount prescribed by Presidential Decree" in the former part of Article 30 (1) of the Act means the sum of an amount obtained by arithmetically averaging the sum of the following amounts and the insurance premiums received under subparagraph 2 (c) of Article 2 of the Act (referring to the insurance premiums received in the business year immediately preceding the business year to which the time limit for payment of deposit insurance premiums belongs) and the total amount of the annual average balance of money raised through money trust, etc. which preserves the principal pursuant to Article 103 (3) of the Financial Investment Services and Capital Markets Act:
1.
Contracts under which any cause of the payment of insurance money, etc. (referring to an agreed amount or dividend to be paid to a policy-holder where a cause for payment of insurance money occurs as of the closing of the settlement of accounts under an insurance contract or when a policy-holder asks for cancellation; hereafter the same shall apply in this paragraph) does not occur as of the closing of the settlement of accounts: The accumulation of premiums and prepaid premiums to be paid at the cancellation or termination of the contract period of insurance, calculated according to the specifications for calculating premiums and liability reserves provided for in the provisions of subparagraph 3 of Article 5 or Article 127 of the Insurance Business Act by the items of insurances or the progress of contract term;
2.
Contracts under which the cause of payment of insurance money, etc. occurs as of the closing of the settlement of accounts: The following amount:
(a)
An amount determined to be paid but not yet paid;
(b)
An estimated insurance money not yet paid where the amount to be paid is not determined;
(c)
A litigation value still pending in court in connection with an amount of insurance money, etc. to be paid;
3.
The amount that is accumulated by any insurance company in order to pay its dividends to its policy-holders pursuant to Article 63 (1) 3 of the Enforcement Decree of the Insurance Business Act.
(4)
The Corporation shall determine necessary matters concerning procedures for paying insurance premiums and arrears referred to in the provisions of paragraphs (1) through (3) after going through a resolution thereof of the Committee and publish them on its Internet home page.

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 Article 16-2 (Application of Differential Premium Rate, etc.)
 

(1)
The Corporation shall, pursuant to the latter part of Article 30 (1) of the Act, apply the premium rate determined by the Committee for each insured financial institution (hereinafter referred to as "differential premium rate") within the extent of 10/100 based on the premium rate (in the case of Article 16-5 (1), referring to such premium rate calculated pursuant to the reduced insurance premiums) computed by the formula under attached Table 1.
(2)
Notwithstanding Article 16 (1), an insured financial institution subject to the differential premium rate shall pay a premium pursuant to the differential premium rate within six months (in cases of a bank, one month after the closing of each quarter) after the closing of each business year.
(3)
A premium for the first quarter of each business year of a bank subject to the differential premium rate shall be calculated by applying the premium rate for the preceding business year and settled at the time of payment of a premium for the second quarter pursuant to the differential premium rate for the relevant business year; however, interest for the balance shall be deemed not to have accrued.
(4)
Where the Corporation receives an objection under Article 30-5 of the Act from an insured financial institution, it shall notify, through a resolution of the Committee, the latter of the result of the disposition within 90 days from the date when it receives the objection.
(5)
Necessary matters concerning the specific procedures for and methods of payment of premiums, calculation of the differential premium rate, filing and handling of an objection under paragraphs (1) through (4) shall be determined by the Corporation through a resolution of the Committee, and publicly announced on its Internet homepage.
[This Article Newly Inserted by Presidential Decree No. 21532, Jun. 9, 2009]

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 Article 16-3 (Exception to Confidentiality)
 

(1)
An insured financial institution shall, pursuant to the proviso to Article 30-2 of the Act, apply for the disclosure of details on the differential premium rate by presenting materials attesting the fact that it is necessary to disclose such details for the protection of depositors, and may disclose the differential premium rate to the public when the Corporation deems it necessary.
(2)
The Corporation which receives an application for disclosure of the differential premium rate pursuant to paragraph (1) shall, through a resolution of the Committee, notify the insured financial institution of the result of the processing of the application within 90 days from the date when it receives such application.
[This Article Newly Inserted by Presidential Decree No. 21532, Jun. 9, 2009]

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 Article 16-4 (Payment, etc. of Special Contributions for Redemption of Deposit Insurance Fund Bonds)
 

(1)
Insured financial institutions shall, in accordance with Article 303 (1) of the Act, pay the Corporation special contributions for redemption of deposit insurance fund bonds (hereinafter referred to as "special contributions") computed by applying the formula of attached Table 1-2 within three months from the closing of each business year: Provided, That banks shall pay them within one month from the closing of each quarter.
(2)
Where an insured financial institution fails to pay the special contributions under paragraph (1) within the time limit for payment thereof, it shall pay the interest for arrears calculated by multiplying the amount of money obtained by applying to the unpaid special contributions the interest rate as determined by the Committee on the basis of the rate of overdue interest applied at the time of the lending of general funds by the insured financial institution, by the number of days from the date following the time limit for payment of such special contributions to the date of their actual payment.
(3)
"Amount of money determined by Presidential Decree" in Article 30-3 (1) of the Act means the sum of an amount obtained by arithmetically averaging the sum of the amounts under each subparagraph of Article 16 (3) and the insurance premiums received under subparagraph 2 (c) of Article 2 of the Act (referring to the insurance premiums received in the business year immediately preceding the business year to which the time limit for payment of special contributions belongs) and the total amount of the annual average balance of money raised through money trust, etc. which preserves the principal pursuant to Article 103 (3) of the Financial Investment Services and Capital Markets Act.
(4)
The Corporation shall determine necessary matters concerning procedures for paying the special contributions and the arrears referred to in the provisions of paragraphs (1) through (3) after undergoing a resolution thereof of the Committee and publish them on its Internet homepage.
[This Article Newly Inserted by Presidential Decree No. 17823, Dec. 30, 2002]

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 Article 16-5 (Establishment of Target Scale, etc.)
 

(1)
Where an amount of reserve of fund for each account of the deposit insurance fund exceeds the lower limit of the target scale as at the end of the preceding fiscal year of the Corporation, the Corporation shall, pursuant to Article 30-4 (4) of the Act, reduce the premiums which become the revenues of the relevant accounts through a resolution of the Committee.
(2)
Where an amount of reserve of fund for each account of the deposit insurance fund exceeds the upper limit of the target scale as of the end of the preceding fiscal year of the Corporation, the Corporation shall, pursuant to Article 30-4 (4) of the Act, refund the whole or part of an amount exceeding the upper limit of the relevant account to the insured financial institution or exempt the insured financial institution from payment of premiums which become the revenues of the relevant accounts through a resolution of the Committee: Provided, That even in cases of exemption of payment, the insured financial institution shall pay the annual premium of 100 thousand won pursuant to the former part of Article 30 (1) of the Act.
(3)
The Corporation shall determine the refundable amount to each insured financial institution pursuant to the main sentence of paragraph (2) through a resolution of the Committee in consideration of the contribution to the fund by each insured financial institution, the already refunded amount, the amount subsidized from the fund, etc.
(4)
The Corporation may postpone the establishment of the target scale through a resolution of the Committee pursuant to Article 30-4 (5) of the Act.
(5)
Notwithstanding the main sentence of paragraph (2), where an estimated amount of reserve of fund for each account of the deposit insurance fund as of March 31, 2011 exceeds the upper limit of the target scale re-established due to the establishment of the special accounts for restructuring of mutual savings banks under Article 24-4 (1) of the Act, the Corporation shall exempt the payment of premiums after April 1, 2011 with respect to the relevant accounts through a resolution of the Committee.
(6)
Necessary matters concerning the specific procedures for and methods of the establishment of the target scale, reduction of the insurance premiums, refund and exemption, etc. of a premium under the provisions of paragraphs (1) through (5) shall be determined by the Corporation through a resolution of the Committee and publicly announced on its Internet homepage.
[This Article Newly Inserted by Presidential Decree No. 21532, Jun. 9, 2009]

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 Article 17 (Provisional Payment, etc.)
 

(1)
The Corporation may pay in advance depositors, etc. an amount set by the Committee within the limit of paying insurance money under Article 32 (2) of the Act (hereinafter referred to as "provisional payment") pursuant to Article 31 (2) of the Act: Provided, That where provisional payment exceeds insurance money, insurance money shall be the maximum amount for payment.
(2)
The Corporation shall publish the period and methods for payment under the main sentence of Article 31 (3) of the Act in not less than one daily newspaper published in the Seoul Metropolitan City and not less than one daily newspaper published in the district in which its main office is located at least once: Provided, That where the Corporation pays insurance money or makes provisional payment to the depositors, etc. of mutual savings banks, it shall publish the period and methods for such payment in not less than two daily newspapers including one daily newspaper published in the district in which their main offices are located at least once.

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 Article 17-2 (Scope of Special Relations)
 

"Special relations prescribed by Presidential Decree" in Article 31 (6) of the Act means the cases where depositors, etc. are in such relations as stipulated in each subparagraph of Article 8 of the Enforcement Decree of the Financial Investment Services and Capital Markets Act with those related to insolvency.
[This Article Newly Inserted by Presidential Decree No. 17149, Mar. 17, 2001]

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 Article 18 (Exception, etc. to Calculating Methods of Insurance Money)
 

(1)
When depositors, etc. have claims such as deposits offered as security (hereafter referred to as "claims on security" in this Article) or bear security obligations against such insured financial institutions for other persons in calculating insurance money under Article 32 (1) of the Act, the Corporation may suspend the payment of insurance money to the extent equivalent to claims on security or security obligations until such secured claims or obligations are extinguished.
(2)
When the Corporation suspends the payment of insurance money under paragraph (1) of this Article or Article 31 (6) of the Act, it shall issue a document in which the following matters are entered to depositors, etc. who have requested the payment of such insurance money:
1.
Amount of insurance money for which payment is suspended;
2.
Reasons for a suspension of payment of insurance money;
3.
Period of a suspension of payment of insurance money; and
4.
Procedures and methods for depositors, etc. to request the payment of suspended insurance money upon the extinction of the reasons for a suspension of payment of insurance money, or the completion of period of a suspension of its payment.
(3)
In cases of insurance money paid by the Corporation, pursuant to the proviso to Article 32 (1) of the Act, for a defined contribution, individual retirement account, or retirement insurance and retirement lump sum trust (hereafter in this Article referred to as "defined contribution, etc.") under Article 2 of the Addenda to the Guarantee of Workers' Retirement Benefits Act (Act No. 7379), the total amount of obligations to insured financial institutions shall not be deducted from the total amount of claims, such as deposits which the insured or beneficiaries have in the insured financial institutions as of the date of the announcement of the payment of insurance money (hereafter referred to as "announcement date of the payment of insurance money" in this Article) under Article 31 (3) of the Act: Provided, That this shall not apply to the cases where such insured financial institutions have been provided with security (only applicable to cases of defined contributions and individual retirement accounts) pursuant to Article 7 of the Guarantee of Workers' Retirement Benefits Act or obtained consent in writing from the relevant workers.
(4)
When the price is settled with a investment trader and investment broker after the announcement date of the payment of insurance money as securities are bought and sold by depositors, etc. prior to the announcement date of the payment of insurance money, the Corporation shall calculate insurance money, including the settled price, and it may suspend the payment of insurance money until the price is settled.
(5)
The amount of claims such as deposits, in calculating insurance money under Article 32 (1) of the Act, shall be limited to the amount calculated by adding amount of deposits to the amount calculated by multiplying that amount by the interest rate as determined by the Committee, taking into account the average interest rates of one-year maturity term deposits in nationwide banks: Provided, That this shall not apply to insurance money (excluding insurance money paid due to the termination of the insurance period) of claims such as deposits against insurance companies.
(6)
The ceiling on the payment of insurance money under Article 32 (2) of the Act shall be fifty million won. In such cases, the ceiling on the payment of insurance money by the insured or beneficiaries shall apply to the cases of a defined contribution, etc.

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 Article 19 (Public Announcement of Estimated Payment Rates, etc.)
 

The provisions of Article 17 (2) shall apply mutatis mutandis to the public announcement of estimated payment rates, etc. under Article 355 of the Act.

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 Article 19-2 (Subscription to Compensation Liability Insurance)
 

(1)
The term "insured financial institutions satisfying the criteria determined by Presidential Decree" in Article 35-9 (1) of the Act means the insured financial institutions other than those falling under the following subparagraphs:
1.
The insured financial institutions satisfying the criteria determined by the Committee as a result of investigation of the business and the status of assets of insured financial institutions by the Financial Supervisory Service under subparagraph 1 of Article 37 of the Act on the Establishment, etc. of Financial Services Commission;
2.
The insured financial institutions under subparagraph 1 (b) and (c) of Article 2 of the Act; and
3.
The insured financial institutions under subparagraph 1 (i) of Article 2 of the Act, which have already subscribed at the main offices of the relevant insured financial institutions to the insurance of the same nature as the compensation liability insurance under Article 359 (1) of the Act (hereinafter referred to as the "compensation liability insurance").
(2)
The Corporation shall, where requesting the insured financial institutions to subscribe to the compensation liability insurance under Article 35-9 (1) of the Act, do so in writing, clarifying the matters determined by the Corporation through a resolution of the Committee, such as the limit of payment of the insurance money, etc.
(3)
Deleted.
[This Article Wholly Amended by Presidential Decree No. 17149, Mar. 17, 2001]

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 Article 20 (Standards for Request for Contract Transfers, etc.)
 

(1)
Where liabilities borne by an insolvent financial institution under subparagraph 5 of Article 2 of the Act (hereafter referred to as "insolvent financial institution" in this Article) exceed its property under Article 36-2 of the Act, and it falls under any of the following subparagraphs, the Corporation may request that Financial Services Commission take necessary measures against the insolvent financial institution through a decision by the Committee, such as ordering the transfer of contracts or the application for bankruptcy:
1.
Where it damages depositors' interests or the deposit insurance fund's liabilities are increased due to any delay in mergers or transfers and taking-over of business between insured financial institutions and insolvent financial institutions or in taking-over of insolvent financial institutions by a third party under Article 36 of the Act (hereinafter referred to as "mergers, etc. of insolvent financial institutions"); and
2.
Where it damages depositors' interests or the deposit insurance fund's liabilities are increased due to extreme difficulty in mergers, etc. of insolvent financial institutions.
(2)
Where the Corporation establishes a financial institution to take over the business or contracts of an insolvent financial institution under Article 36-3 of the Act (hereinafter referred to as a "resolution financial institution"), it may request that the Financial Services Commission order the transfer of the contracts of the insolvent financial institution under Article 36-2 (1) of the Act.

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 Article 21 (Supervision over Resolution Financial Institutions)
 

The Corporation may direct and supervise the business of resolution financial institutions or take necessary measures against them under Article 36-5 (4) of the Act.

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 Article 22 (Establishment Registration of Resolution Financial Institutions)
 

(1)
The establishment of a resolution financial institution shall be registered at the site of its main office within two weeks from the date of approval by the Financial Services Commission.
(2)
Matters to be registered for establishment by a resolution financial institution shall be as follows:
1.
Purpose;
2.
Name;
3.
Total amount of capital;
4.
Total number of issued stocks;
5.
Face value per stock;
6.
Names and addresses of officers;
7.
Sites of a main office and branches; and
8.
Method of public notice.

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 Article 23 (Movement Registration, etc. of Resolution Financial Institutions)
 

The provisions of Articles 5 through 8 and 17 (2) shall apply mutatis mutandis to the movement registration, alteration registration, registration of agent's appointment, reckoning of registration period, and establishment announcement of a resolution financial institution.

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 Article 24 (Applicants, etc. for Registration in Resolution Financial Institutions)
 

(1)
An establishment registration under Article 22 shall be made by the application of the president of the Corporation, and a registration under Article 23 shall be made by the application of a resolution financial institution's president.
(2)
Applications for registration under Articles 22 and 23 shall be accompanied with documents proving their causes.

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 Article 24-2 (Standards and Ways, etc. of Financial Support for Insured Financial Institutions, etc.)
 

(1)
Where it is deemed necessary to determine whether to financially support insured financial institutions pursuant to the provisions of Article 38 (1) of the Act, the Corporation may conduct an on-the-spot survey of the assets and debts, etc. of such insured financial companies or financial holding companies that have insured financial companies as their subsidiaries, etc. (hereinafter referred to as "subsidiaries, etc.") provided for in Article 4 (1) 2 of the Financial Holding Companies Act in order to objectively grasp their management status and financial conditions.
(2)
Where the Corporation financially supports insured financial institutions pursuant to the provisions of Article 38 (1) of the Act, it may provide them with funds in not less than two installments.
(3)
Where any insured financial institution that has concluded an agreement to implement its management normalization program pursuant to the provisions of Article 38-5 (2) of the Act fails to execute such agreement without any justifiable grounds, the Corporation may discontinue its financial support therefor.
[This Article Newly Inserted by Presidential Decree No. 19889, Feb. 28, 2007]

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 Article 24-3 (Procedures for Implementing Minimum Cost Principle)
 

Where the Corporation pays its insurance money or provides the financial support, it shall work to minimize the loss of the deposit insurance fund provided for in Article 38-4 (1) of the Act by objectively grasping the management status and financial positions of the insured financial institutions and the financial holding companies that have insured financial companies as their subsidiaries, etc. through an on-the-spot survey of their assets and debts, etc.
[This Article Newly Inserted by Presidential Decree No. 19889, Feb. 28, 2007]

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 Article 24-4 (Conclusion of Agreement on Implementation of Management Normalization)
 

(1)
Where the Corporation intends to provide financial support to an insured financial institution in accordance with Article 38-5 (2) of the Act, it shall enter into a written agreement with the insured financial institution on the implementation of a plan for normalizing its management before such financial support: Provided, That this shall not apply to any case of the following subparagraphs:
1.
Where the Corporation provides financial support to a resolution financial institution;
2.
Where the Corporation provides financial support under Article 38 (1) 1 of the Act: Provided, That this shall not apply to a case where the person who receives such financial support is an insured financial institution, etc.;
3.
Where the Corporation provides financial support by means of purchasing the assets of a financial institution; and
4.
Where the Corporation provides financial support to an insured financial institution so that its capital is not reduced to less than the minimum capital under Article 329 (1) of the Commercial Act as the result of the deduction of capital, or the retirement or consolidation in part or in whole of stocks, of such an insured financial institution under Article 10 (1) or 12 (3) of the Act on the Structural Improvement of the Financial Industry.
(2)
The term "standards for financial soundness determined by the Presidential Decree" in Article 38-5 (2) 1 of the Act means the standards for financial soundness applicable to the insured financial institution concerned in accordance with the Acts and substitute statutes which are the basis for the establishment of the insured financial institution concerned, as determined by the Financial Services Commission.
(3)
The term "standards for profitability determined by the Presidential Decree" in Article 38-5 (2) 2 of the Act means the following:
1.
The ratio of profit to assets or capital;
2.
The ratio of expense to profit; and
3.
The productivity per officer or employee.
(4)
The term "standards for asset soundness determined by the Presidential Decree" in Article 38-5 (2) 3 of the Act means the ratio of non-performing claims to loan claims.
[This Article Newly Inserted by Presidential Decree No. 17823, Dec. 30, 2002]

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 Article 24-5 (Non-disclosure of Agreement)
 

The term "matters determined by the Presidential Decree" in the proviso of Article 38-5 (3) of the Act means any matter falling under any of the following subparagraphs:
1.
Matters relating to the issue of securities, such as stocks and claims;
2.
Matters relating to the sale of holding assets, such as real estates and claims; and
3.
Matters relating to the methods for the implementation of a plan for normalization of management.
[This Article Newly Inserted by Presidential Decree No. 17823, Dec. 30, 2002]

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 Article 25 (Scope of Staff Deemed as Public Officials in Application of Criminal Act)
 

The scope of the staff under Article 42 (2) of the Act shall be as follows:
1.
Staff of agents or higher rank in the Corporation; and
2.
Staff of agents or higher rank in an agency who are engaged in agency business referred to in Article 20 (1) of the Act: Provided, That they shall be limited to those who are under the application of penalties under the Criminal Act in connection with their businesses.

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 Article 26 (Standards for Imposition of Fines for Negligence)
 

The standards for imposition of fines for negligence under Article 44 (1) of the Act shall be as shown in attached Table 3.
[This Article Newly Inserted by Presidential Decree No. 21532, Jun. 9, 2009]

ADDENDA
Article 1 (Enforcement Date)
This Decree shall enter into force on the date of its promulgation: Provided, That the amendments to Article 3 (4) 1 (limited to premiums received under any guarantee insurance contract) and 2 and Article 18 (5), and Article 4 of the Addenda shall enter into force on August 1, 1998, and the amendments to Article 2 (excluding the portion for insurers who are stock companies mainly engaged in reinsurance) and Article 3 (1), (2) 1 through 4, (3) 3 and 4, and (4) 1 (excluding the portion of relating to premiums received under guarantee any insurance contract or reinsurance contract of insurance contracts in which legal persons are policy-holders and insurance money payers) shall enter into force on January 1, 2001.
Article 2 (Special Cases on Scope of Deposits, etc.)
Money falling under any of the following subparagraphs at the time of entry into force of this Decree shall be included in the scope of deposits, etc. from the date of entry into force of this Decree to December 31, 2000:
1.
Money which banks raised by selling repurchase agreements pursuant to Article 2 of the Addenda of the previous Presidential Decree No. 15525 (Amendment to the ]Enforcement Decree of the Depositor Protection Act);
2.
Money which securities companies raised by selling repurchase agreements; and
3.
Received premiums which insurers who are stock companies engaged mainly in guarantee insurance received under any guarantee insurance contract.
Article 3 (Special Cases for Payment of Premiums by Insurers and Merchant Banks)
Insurers and merchant banks shall, notwithstanding the amendment to the main sentence of Article 16 (1), pay premiums to be paid in 1998 to the Corporation within two months after the entry into force of this Decree.
Article 4 (Special Cases on Calculating Methods of Insurance Money)
(1)
Where an insurance risk referred to in subparagraph 7 of Article 2 of the Act occurs during the period from August 1, 1998 to December 31, 2000, the amount of deposits, etc. in calculating insurance money referred to in Article 32 (1) of the Act shall be calculated by the following subparagraphs: Provided, That this shall not apply to insurance money (excluding insurance money paid due to the termination of insurance period) of claims such as deposits against insurers:
1.
Where the total amount of deposits, etc. by respective depositors, etc. is not more than twenty million won: an amount of claims such as deposits under the amendment to Article 18 (5): Provided, That where the total amount of deposits, etc. by respective depositors, etc. exceeds twenty million won, twenty million won shall be the maximum limit; and
2.
Where the total amount of deposits, etc. by respective depositors, etc. exceeds twenty million won: an amount of deposits, etc: Provided, That if an amount of claims such as deposits against insurers is smaller than an amount of deposits, etc., it shall be an amount of claims such as deposits.
(2)
The provisions of paragraph (1) shall apply to only money raised by insured financial institutions from depositors, etc. after August 1, 1998: Provided, That for deposits, etc. in which periods are set and specified amounts set in advance within the period are paid in from among deposits, etc. paid in by accumulating them, they shall apply to only the amount insured first after the entry into force of this Decree.
Article 5 (Special Cases for Ceiling on Payment of Insurance Money)
(1)
The ceiling on insurance money paid by the Corporation to depositors, etc. who have claims such as deposits against insurers at the time of entry into force of this Decree shall, notwithstanding the amendment to Article 18 (6), be fifty million won.
(2)
Where an insurance risk referred to subparagraph 7 of Article 2 of the Act occurs during the period from the date of promulgation of this Decree to December 31, 2000, the amendments to paragraph (1) and Article 18 (6) shall not apply to the ceiling on the payment of insurance money.
Article 6 (Transitional Measures on Premiums)

ADDENDUM
This Decree shall enter into force on the date of its promulgation.

ADDENDA
Article 1 (Enforcement Date)
This Decree shall enter into force on the date of its promulgation.
Article 2 Omitted.

ADDENDUM
This Decree shall enter into force on the date of its promulgation.

ADDENDA

(1)
(Enforcement Date) This Decree shall enter into force on the date of its promulgation.
(2)
(Transitional Measures concerning Calculation of Insurance Premiums) In calculating insurance premiums under Article 16 (1), those until the day before the date when this Decree enters into force shall be calculated by daily prorata under the previous provisions of Article 16 (3) and attached Table 1, and those after the date when this Decree enters into force shall be calculated by daily pro-rata under the amended provisions of Article 16 (3) and attached Table 1.

ADDENDA
Article 1 (Enforcement Date)
This Decree shall enter into force on January 1, 2001.
Article 2 (Special Cases for Payment Limit of Insurance Money)

ADDENDA

(1)
(Enforcement Date) This Decree shall enter into force on the date of its promulgation.
(2)
(Applicability concerning Computation of Insurance Premiums) The amended provisions of subparagraph 1 of the reference column of the attached Table 1 shall apply to the portion of insurance premiums for which a liability for payment incurs for the first time after this Decree enters into force.

ADDENDUM
This Decree shall enter into force on January 1, 2003.

ADDENDA
Article 1 (Enforcement Date)
This Decree shall enter into force on December 1, 2005.
Articles 2 and 3 Omitted.

ADDENDA

(1)
(Enforcement Date) This Decree shall enter into force on the date of its promulgation.
(2)
(Applicability concerning Calculation of Insurance Premiums) The amended provisions of subparagraph 3 of the remarks of the attached Table 1 shall apply, starting with the portion of the insurance premium for which the payment obligation first accrues after this Decree enters into force.
(3)
(Application Example concerning Payment of Special Contributions) The amended provisions of column 6 of the attached Table 1-2 shall apply, starting with the portion of the special contribution whose time limit for its payment first comes to an end after this Decree enters into force.

ADDENDA
Article 1 (Enforcement Date)
This Decree shall enter into force on date of its promulgation. (Proviso Omitted.)
Article 2 Omitted.

ADDENDA
Article 1 (Enforcement Date)
This Decree shall enter into force on February 4, 2009. (Proviso omitted)
Articles 2 through 28 Omitted.

ADDENDA
Article 1 (Enforcement Date)
This Decree shall enter into force on the date of its promulgation, but the amended provisions of Article 3 (2) 1 and Table 1 attached hereto shall become enforceable on November 3, 2008.
Article 2 (Effective Period)
The amended provision of subparagraph 2 in notes to attached Table 1 shall be effective until June 30, 2009.

ADDENDA
Article 1 (Enforcement Date)
This Decree shall enter into force on the date of its promulgation, but the amended provisions of Article 14 (4) shall enter into force on February 4, 2009.
Article 2 (Applicability)
The amended provisions of Article 16-2 shall apply beginning with the insurance premiums the duty of payment of which occurs after 2014, but in cases of a bank, the above provisions shall apply beginning with the insurance premiums for the first quarter of 2014.
Article 3 (Transitional Measures)

ADDENDUM
This Decree shall enter into force on the date of its promulgation.

ADDENDA
Article 1 (Enforcement Date)
This Decree shall enter into force on July 1, 2011
Article 2 (Transitional Measures concerning Calculation of Premiums)
In calculating mutual saving banks' premiums under Article 16 (1), the portion to the date before this Decree enters into force shall be calculated by daily pro-rata pursuant to the previous provisions of subparagraph 5 of attached Table 1, and the portion from the date when this Decree enters into force shall be calculated by daily pro-rata pursuant to the amended provisions of subparagraph 5 of attached Table 1.

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