CHAPTER I GENERAL PROVISIONS
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| Article 1 (Purposes) |
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The purpose of this Act is to facilitate the financing of new technology business by stabilizing and developing the technology credit guarantee system through the establishment of the Korea Technology Finance Corporation, and further contribute to the development of the national economy.
[This Article Wholly Amended by Act No. 10683, May 19, 2011]
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| Article 2 (Definitions) |
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The terms used in this Act shall be defined as follows: <Amended by Act No. 11409, Mar. 21, 2012>
| 2. |
The term "enterprise" means an individual or juristic person who runs a business, and an organization formed by such individuals or juristic persons; |
| 3. |
The term "financial company" means any of the following institutions: |
| (f) |
Others prescribed by Presidential Decree, who engage in the business of financing enterprises by profession; |
| 4. |
The term "technology credit guarantee" means the guarantee of the following monetary liabilities borne by new technology enterprises: |
| (a) |
Monetary liabilities to financial companies, etc. by receiving a loan of fund or other benefits, etc. from specialized credit finance companies registered for the new technology venture capital business under the Specialized Credit Finance Business Act or financial companies (hereinafter referred to as "financial companies, etc."); |
| (b) |
Other monetary liabilities prescribed by Presidential Decree; |
| 5. |
The term "general credit guarantee" means the guarantee of any of the following monetary liabilities (excluding technology credit guarantee) borne by an enterprise, which has regular employees not more than one thousand, and the total assets not exceeding one hundred billion won: |
| (a) |
Monetary liabilities to financial companies by receiving a loan of fund or other benefits, etc. from such financial companies; |
| (b) |
Other monetary liabilities prescribed by Presidential Decree; |
| 6. |
The term "re-guarantee" means a guarantee of the Korea Technology Finance Corporation to indemnify the original guarantor within the scope of the amount of liabilities discharged by the original guarantor under a guarantee referred to in Article 28-2 (1) (hereinafter referred to as "original guarantee"); |
| 7. |
The term "creditor" means a creditor of the liabilities guaranteed by the Korea Technology Finance Corporation; |
| 8. |
The term "fundamental property" means property created by the Korea Technology Finance Corporation as its financial base by means of contributions or others to perform its business; |
| 9. |
The term "guarantee for a special purpose company" means that the Korea Technology Finance Corporation guarantees monetary liabilities borne by a special purpose company established under the Asset-Backed Securitization Act (hereinafter referred to as "special purpose company") pursuant to Article 28-3 (1) ; |
| 10. |
The term "guarantee-linked investment" means that the Korea Technology Finance Corporation takes over securities of new technology enterprises under Article 28-4 (1). |
[This Article Wholly Amended by Act No. 10683, May 19, 2011]
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| Article 3 Deleted. <by Act No. 5701, Jan. 29, 1999> |
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| Articles 4 through 11 Deleted. <by Act No. 5374, Aug. 28, 1997> |
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CHAPTER III KOREA TECHNOLOGY FINANCE CORPORATION
SECTION 1 Establishment, etc.
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| Article 12 (Establishment of Corporation) |
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| (1) |
The Korea Technology Finance Corporation (hereinafter referred to as the "Corporation") shall be established to make funds more readily available for enterprises which lack security solvency by guaranteeing the liabilities which may be incurred by such enterprises. |
| (2) |
The Corporation shall be a juristic person. |
[This Article Wholly Amended by Act No. 10683, May 19, 2011]
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| Article 13 (Acquisition of Fundamental Property) |
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| (1) |
The fundamental property of the Corporation shall consist of following: |
| 1. |
Contributions from financial companies, etc. ; |
| 2. |
Contributions from the Government; |
| 3. |
Contributions from persons other than those referred to in subparagraphs 1 and 2. |
| (2) |
The budget of contributions from the Government under paragraph (1) 2 shall be under the jurisdiction of the Small and Medium Business Administration. |
| (3) |
Financial companies, etc. shall contribute, to the Corporation, an amount in proportion as prescribed by Presidential Decree, in connection with the relevant loans. |
| (4) |
The scope of loans, methods and timing of making contributions, and other matters necessary for contributions under paragraph (3) shall be prescribed by Ordinance of the Prime Minister. |
[This Article Wholly Amended by Act No. 10683, May 19, 2011]
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| Article 14 (Head Office, Branches, Sub-Branches, and Agencies) |
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| (1) |
The Corporation shall establish the head office, as stipulated in the articles of incorporation. |
| (2) |
The Corporation may establish branches, sub-branches or agencies wherever necessary, as stipulated in the articles of incorporation. |
[This Article Wholly Amended by Act No. 10683, May 19, 2011]
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| Article 15 (Articles of Incorporation) |
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| (1) |
The articles of incorporation of the Corporation shall obtain authorization from the Financial Services Commission, with a resolution thereon by the management committee under Article 17 (hereinafter referred to as "management committee"). The same shall also apply to the amendments thereof. |
| (2) |
The following matters shall be stated in the articles of incorporation of the Corporation: |
| 3. |
Matters concerning the head office, branches, sub-branches and agencies; |
| 4. |
Matters concerning the fundamental property; |
| 5. |
Matters concerning the management committee; |
| 6. |
Matters concerning the board of directors; |
| 7. |
Matters concerning executives and employees; |
| 8. |
Matters concerning business and execution thereof; |
| 9. |
Matters concerning accounting; |
| 10. |
Matters concerning the methods of giving public notices; |
| 11. |
Matters concerning the amendments to the articles of incorporation; |
| 12. |
Other matters prescribed by Presidential Decree. |
[This Article Wholly Amended by Act No. 10683, May 19, 2011]
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| Article 16 (Registration) |
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| (1) |
The Corporation shall be established upon completing the registration of incorporation at the location of its head office. |
| (2) |
Matters concerning the registration of incorporation of the Corporation under paragraph (1), registration of change of address and other changes, and other matters necessary for the registration of the Corporation shall be prescribed by Presidential Decree. |
| (3) |
Matters to be registered under paragraph (2) shall not oppose to a third party until after they are registered. |
[This Article Wholly Amended by Act No. 10683, May 19, 2011]
SECTION 2 Organs, Executives and Employees
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| Article 17 (Establishment of Management Committee) |
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| (1) |
The management committee shall be established under the Corporation to formulate basic policies on the business operations of the Corporation. |
| (2) |
The management committee shall be comprised of the following members: <Amended by Act No. 11690, Mar. 23, 2013> |
| 1. |
The president of the Corporation; |
| 2. |
One person nominated by the Financial Services Commission from among the public officials affiliated therewith; |
| 3. |
One person nominated by the Minister of Strategy and Finance from among the public officials affiliated therewith; |
| 4. |
One person nominated by the Administrator of Small and Medium Business Administration from among the public officials affiliated therewith; |
| 5. |
One person nominated by the President of the Industrial Bank of Korea under the Industrial Bank of Korea Act from among the executives affiliated therewith; |
| 6. |
One person nominated by the head of a bank designated by the Financial Services Commission, which is engaged in the finance business for the general public and small enterprises, from among the executives affiliated therewith; |
| 7. |
Three persons appointed by the Financial Services Commission from among executives and executive officers of financial companies, etc. ; |
| 10. |
Two technology-related experts appointed by the Financial Services Commission after consultation with the Minister of Science, ICT and Future Planning. |
| (3) |
The president of the Corporation shall be a chairperson of the management committee. |
| (4) |
Board members referred to in paragraph (2) 1 and 5 through 7 may designate any executive or employee of the relevant institution as their deputy members to perform duties on behalf of them. |
| (5) |
The term of office of board members referred to in paragraph (2) 7 through 10 shall be two years: Provided, That the term of office of a supplementary board member shall be the remaining term of his/her predecessor. |
| (6) |
Matters necessary for the operation, etc. of the management committee shall be prescribed by Presidential Decree. |
[This Article Wholly Amended by Act No. 10683, May 19, 2011]
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| Article 18 (Board of Directors) |
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| (1) |
The board of directors shall be established under the Corporation. |
| (2) |
The board of directors shall be comprised of a president, a managing director, and other directors. |
| (3) |
The board of directors shall pass a resolution on important matters concerning the business operations of the Corporation. |
| (4) |
The president shall call meetings of the board of directors and serve as a chairperson. |
| (5) |
A meeting of the board of directors shall commence by the attendance of a majority of its members, and the resolutions shall be adopted by the affirmative vote of a majority of those present. |
| (6) |
The auditor may attend and present his/her opinion at any meeting of the board of directors. |
[This Article Wholly Amended by Act No. 10683, May 19, 2011]
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| Article 19 (Executives) |
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The Corporation shall have one president, one managing director, not more than five directors, and one auditor as its executives.
[This Article Wholly Amended by Act No. 10683, May 19, 2011]
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| Article 20 (Executives' Duties) |
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| (1) |
The president shall represent the Corporation and take overall control of the business of the Corporation. |
| (2) |
The managing director shall assist the president and act on behalf of the president if the president is unable to perform his/her duties due to unavoidable circumstances. |
| (3) |
The directors shall assist the president and the managing director, and take charge of the allocated business of the Corporation, as stipulated by the articles of incorporation. |
| (4) |
The director in the order pre-designated by the president shall act on behalf of the president and the managing director, if both are unable to perform their duties due to unavoidable circumstances. |
| (5) |
The auditor shall audit the business and the accounting of the Corporation. |
[This Article Wholly Amended by Act No. 10683, May 19, 2011]
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| Article 21 (Appointment of Executives) |
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| (1) |
The president and the auditor shall be appointed by the Financial Services Commission. |
| (2) |
The managing director and the directors shall be appointed by the Financial Services Commission upon the recommendation of the president of the Corporation. |
[This Article Wholly Amended by Act No. 10683, May 19, 2011]
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| Article 22 (Term of Office of Executives) |
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The term of office of an executive shall be three years.
[This Article Wholly Amended by Act No. 10683, May 19, 2011]
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| Article 23 (Dismissal of Executives) |
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The Financial Services Commission may dismiss any executive of the Corporation falling under any of the following cases:
| 1. |
Where he/she violates this Act, orders issued under this Act, or the articles of incorporation; |
| 2. |
Where he/she is sentenced to imprisonment without prison labor or a heavier punishment; |
| 3. |
Where he/she is declared bankrupt; |
| 4. |
Where he/she is unable to perform his/her duties due to a mental or physical disability. |
[This Article Wholly Amended by Act No. 10683, May 19, 2011]
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| Article 24 (Obligation, etc. of Prohibition of Concurrent Office) |
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| (1) |
No executives of the Corporation shall engage in any other business without permission of the Financial Services Commission. |
| (2) |
No current or former executives and employees of the Corporation shall disclose confidential information that they came to know in the course of their duties. |
[This Article Wholly Amended by Act No. 10683, May 19, 2011]
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| Article 25 (Legal Fiction as Public Officials in Application of the Criminal Act) |
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[This Article Wholly Amended by Act No. 10683, May 19, 2011]
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| Article 26 (Appointment of Representative) |
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The president of the Corporation may appoint a representative duly empowered to do all judicial or extrajudicial acts in connection with the business of the Corporation, from among the managing director, the directors or the employees of the Corporation.
[This Article Wholly Amended by Act No. 10683, May 19, 2011]
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| Article 27 (Appointment and Dismissal of Employees) |
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The employees of the Corporation shall be appointed and dismissed by the president of the Corporation.
[This Article Wholly Amended by Act No. 10683, May 19, 2011]
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| Article 28 (Business of Corporation) |
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| (1) |
The Corporation shall perform the following business: <Amended by Act No. 11409, Mar. 21, 2012> |
| 1. |
Administering the fundamental property; |
| 2. |
Providing a technology credit guarantee; |
| 3. |
Providing a general credit guarantee; |
| 3-2. |
Guarantee-linked investment |
| 4. |
Providing management consulting and technology consulting services to enterprises; |
| 5. |
Conducting credit investigations and comprehensive managements of credit information; |
| 6. |
Conducting technology evaluations (referring to the indication of the relevant technology in terms of amount of money, grades, opinions, points, etc. by comprehensively evaluating the nature of technology, marketability, business prospects, etc. related to such technology); |
| 7. |
Exercising the right to indemnity; |
| 8. |
Conducting an investigation into and research on the credit guarantee system; |
| 9. |
Performing business incidental to those referred to in subparagraphs 1 through 8 and approved by the Finance Services Commission. |
| (2) |
The Corporation may perform the business of providing a re-guarantee and guarantee for a special purpose company, in addition to those referred to in paragraph (1). |
| (3) |
The Corporation shall determine in advance matters related to the criteria, procedures, methods, types, etc. of the technology evaluations to ensure the objectivity, fairness, etc, of such technology evaluations under paragraph (1) 6. |
[This Article Wholly Amended by Act No. 10683, May 19, 2011]
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| Article 28-2 (Re-Guarantee) |
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| (1) |
When the Corporation intends to provide a re-guarantee, it shall enter into a contract with a credit guarantee foundation under the Regional Credit Guarantee Foundation Act (hereinafter referred to as "original guarantor"). |
| (2) |
A contract under paragraph (1) shall stipulate matters concerning the ceiling amount, period, requirements, etc. of the re-guarantee, and the contract shall be executed in an umbrella agreement form re-guaranteeing the original guarantee that meets the requirements of re-guarantee within the ceiling amount and the period of the re-guarantee stipulated under the re-guarantee contract. |
| (3) |
The amount of re-guarantee of the Corporation shall be calculated by multiplying the amount of original guarantee by a ratio prescribed by Presidential Decree (hereinafter referred to as "re-guarantee ratio"). |
| (4) |
Where an original guarantor has subrogated for the Corporation, the amount of compensation to be paid by the Corporation shall be calculated by multiplying the amount not recovered by exercising the right to indemnity, out of the amount subrogated by the original guarantor, by the re-guarantee ratio. |
| (5) |
If an original guarantor recovers the amount of subrogation by exercising the right to indemnity under the original guarantee, he/she shall return the amount calculated by multiplying such recovered amount by the re-guarantee ratio to the Corporation. |
| (6) |
A claim for discharging re-guaranteed liabilities shall be made at the expiration of a period prescribed by Presidential Decree from the date of subrogation by the original guarantor, and other matters necessary for making a claim for discharging the re-guaranteed liabilities shall be prescribed by Presidential Decree. |
| (7) |
Other matters necessary for the relationship between the Corporation and the original guarantors in connection with the operation of the re-guarantee shall be prescribed by Presidential Decree. |
[This Article Wholly Amended by Act No. 10683, May 19, 2011]
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| Article 28-3 (Guarantee for Special Purpose Companies) |
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| (1) |
Where a special purpose company pools and repackages a new technology enterprise's corporate bonds (including convertible bonds and bonds with warrant), loans or property rights prescribed by Presidential Decree into securitized assets, the Corporation may guarantee the liabilities to be borne by the special purpose company in any of the following cases: |
| 1. |
Issuing asset backed securities; |
| (2) |
The maximum ceiling of securitized that assets an asset holder (referring to the person under subparagraph 2 of Article 2 of the Asset-Backed Securitization Act) can underwrite from the same enterprise, in connection with the operation of guarantee for a special purpose company by the Corporation, shall be prescribed by Presidential Decree. |
| (4) |
Where the Financial Services Commission deems it necessary for efficiently operating the Corporation and appropriately diversifying risks, it may establish separate guidelines and give notice thereon. |
[This Article Wholly Amended by Act No. 10683, May 19, 2011]
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| Article 28-4 (Guarantee-Linked Investment) |
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| (1) |
The Corporation may take over only any of the following securities of new technology enterprises with which it has established a technology credit guaranty relationship: |
| (2) |
The limit of the total amount of guarantee-linked investment of the Corporation shall be prescribed by Presidential Decree within the scope not exceeding 10/100 of the aggregate of the fundamental properties and profits carried forward of the Corporation. |
| (3) |
The limit of guarantee-linked investment the Corporation may make in enterprises shall be prescribed by Presidential Decree. |
| (4) |
The Financial Services Commission may, if necessary, set up separate guidelines and notify for the efficient operation of the Corporation and appropriate diversification of risks. |
[This Article Newly Inserted by Act No. 11409, Mar. 21, 2012]
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| Article 29 (Operational Manual) |
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The Corporation shall prepare an operational manual describing the following matters and submit it to the management committee for a resolution thereon. The same shall also apply to any amendment to such operational manual: <Amended by Act No. 11409, Mar. 21, 2012>
| 1. |
Matters concerning the methods and periods of providing a guarantee under Article 28 (1) 2 and 3, and fees and penalties, including guarantee fees, etc. under Articles 33, 33-2 and 34; |
| 2. |
Matters concerning the re-guarantee, such as methods and periods of providing re-guarantee, types of business for which re-guarantee is restricted, etc. ; |
| 3. |
The following matters concerning the guarantee for a special purpose company: |
| (a) |
Liabilities subject to guarantee; |
| (b) |
Assets subject to securitization; |
| (c) |
Risk management plans; |
| (d) |
Maximum ceiling of securitized assets underwritable from the same enterprise under Article 28-3 (2) ; |
| 3-2. |
Matters concerning guarantee-linked investment; |
| 4. |
Matters concerning the discharge of guaranteed liabilities; |
| 5. |
Matters concerning the exercise of the right to indemnity; |
| 6. |
Matters concerning the criteria, procedures, methods, types, etc. of the technology evaluations under Article 28 (3) ; |
| 7. |
Other matters necessary for performing the business of the Corporation. |
[This Article Wholly Amended by Act No. 10683, May 19, 2011]
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| Article 30 (Criteria of Guarantee) |
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| (1) |
The Corporation shall provide guarantees by fairly and objectively investigating the business prospects, management capability, etc. |
| (2) |
The Corporation shall make at least three-fourth the total amount of guarantee to be provided for a technology credit guarantee. |
[This Article Wholly Amended by Act No. 10683, May 19, 2011]
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| Article 31 (Ceiling of Guarantee, etc. ) |
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| (1) |
A ceiling on the aggregate of a guaranteed liabilities and re-guarantee provided by the Corporation shall be prescribed by Presidential Decree within 20 times the sum of the fundamental property of the Corporation and the profits carried forward. |
| (2) |
A maximum ceiling on a guarantee or re-guarantee the Corporation may provide to the same enterprise shall be prescribed by Presidential Decree. |
| (3) |
The Corporation may guarantee the liabilities borne by a new technology enterprise up to an amount determined by the Financial Services Commission. |
[This Article Wholly Amended by Act No. 10683, May 19, 2011]
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| Article 32 (Business Plans) |
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| (1) |
The Corporation shall establish a business plan for each business year and obtain approval from the Financial Services Commission, following a resolution thereon by the management committee. |
| (2) |
Where the Corporation intends to obtain approval under paragraph (1), it shall submit the business plan to the Financial Services Commission at least one month before the commencement of the relevant business year. |
| (3) |
Any modifications for a business plans of the Corporation shall be made upon a resolution of the management committee and subject to approval of the Financial Services Commission. |
[This Article Wholly Amended by Act No. 10683, May 19, 2011]
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| Article 33 (Guarantee Fees, etc. ) |
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| (1) |
The Corporation shall receive a guarantee fee for the guaranteed amount from an enterprise provided with a guarantee, considering the credit rating, etc. of the enterprise, as prescribed by Presidential Decree. In such cases, where a new technology enterprise provided with a technology credit guarantee achieves remarkable business performance from the relevant business, the Corporation may collect a performance-based guarantee fee from such new technology enterprise under a separate agreement, as prescribed by Presidential Decree. |
| (2) |
Where the Corporation is not relieved from its responsibility to discharge guaranteed liabilities since an enterprise provided with a guarantee fails to discharge its liabilities by the due date, the Corporation is entitled to collect an additional guarantee fee from the relevant enterprise for the amount in default out of the guaranteed liabilities, as prescribed by Presidential Decree. |
| (3) |
Where an enterprise provided with a guarantee fails to pay the guarantee fee by the due date, the Corporation shall collect an overdue guarantee fee for the unpaid guarantee fee from the relevant enterprise, as prescribed by Presidential Decree. |
| (4) |
The Corporation shall charge an enterprise provided with a re-guarantee fee for the amount of re-guarantee, as prescribed by Presidential Decree. |
[This Article Wholly Amended by Act No. 10683, May 19, 2011]
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| Article 33-2 (Fees) |
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The Corporation may receive fees, as prescribed by Presidential Decree, in performing the business referred to in Article 28 (1) 4 through 6 and 9.
[This Article Wholly Amended by Act No. 10683, May 19, 2011]
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| Article 34 (Penalties) |
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Where the Corporation discharges a guaranteed liability, it shall collect a penalty from the relevant enterprise at a rate not exceeding 25 percent per annum of the amount paid by the Corporation, as prescribed by Presidential Decree.
[This Article Wholly Amended by Act No. 10683, May 19, 2011]
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| Article 35 (Formation of Guarantee Relationship) |
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| (1) |
Where the Corporation has decided to provide a guarantee for an enterprise, it shall give notice to that effect to the relevant enterprise and any prospective creditor of such enterprise: Provided, That where the Corporation guarantees liabilities borne by a special purpose company following issuance of assets backed securities pursuant to Article 28-3 (1) 1, it need not give notice to the underwriters of assets backed securities. |
| (2) |
The guarantee relationship shall take effect only when a primary claim-obligation relationship is created between the relevant enterprise and its creditors following the receipt of the notice under paragraph (1). |
| (3) |
No guarantee relationship shall take effect, unless the primary claim-obligation relationship is created within 60 days from the date on which the notice under paragraph (1) is given to interested parties. |
[This Article Wholly Amended by Act No. 10683, May 19, 2011]
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| Article 36 (Discharge of Guaranteed Liabilities) |
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| (1) |
A creditor may request the Corporation to discharge guaranteed liabilities if any grounds prescribed by Presidential Decree arise. |
| (2) |
Upon receipt of a request for the discharge of guaranteed liabilities under paragraph (1), the Corporation shall discharge both primary liabilities and subordinate liabilities prescribed by Presidential Decree. |
[This Article Wholly Amended by Act No. 10683, May 19, 2011]
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| Article 37 (Exercise of Right to Indemnity) |
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| (1) |
Where the Corporation has discharged guaranteed liabilities, the Corporation may exercise its right to indemnity. |
| (2) |
Where the Corporation has discharged its guaranteed liabilities, the relevant creditor shall send all documents necessary for the Corporation to exercise its right to indemnity to the Corporation, and fully cooperate with the Corporation in exercising such right to indemnity. |
| (3) |
Where any enterprise, the guaranteed liabilities of which has been discharged by the Corporation falls under any of the following cases, the Corporation may suspend the exercise of the right to indemnity against such enterprise, following a resolution thereon by the board of directors: |
| 1. |
Where it is deemed improbable that the property of the enterprise will, after being appropriated for the expenses incidental to the exercise of right to indemnity, still leave a balance; |
| 2. |
Where it is deemed probable that the debt-servicing ability of the enterprise will be enhanced by the suspension of the exercise of right to indemnity. |
| (4) |
Where the Corporation has suspended the exercise of its right to indemnity pursuant to paragraph (3) 2, it may dispatch its executives or employees to the relevant enterprise to participate in the management thereof. |
[This Article Wholly Amended by Act No. 10683, May 19, 2011]
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| Article 37-2 (Disposal of Claims for Indemnity) |
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Where the Corporation deems it necessary for an efficient recovery and management of claims for indemnity, it may sell such claims for indemnity to any of the following persons, with a resolution thereon of the board of directors:
| 3. |
Other persons prescribed by Presidential Decree who are specialized in the sale and management of insolvent loans. |
[This Article Wholly Amended by Act No. 10683, May 19, 2011]
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| Article 37-3 (Reduction or Exemption of Jointly and Severally Guaranteed Debt) |
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Notwithstanding the provisions of Articles 250 (2), 567 and 625 (3) of the Debtor Rehabilitation and Bankruptcy Act, if a creditor is the Corporation and the principal debt is reduced or exempted at the point of time when the rehabilitation plan is authorized and when immunity is granted after the declaration of bankruptcy for a small and medium enterprise, jointly and severally guaranteed debt shall also be reduced or exempted by the same proportion.
[This Article Newly Inserted by Act No. 11843, May 28, 2013]
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| Article 38 (Creditors' Duties) |
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In any of the following cases, a creditor prescribed by Presidential Decree shall notify the Corporation of such fact without delay:
| 1. |
Where the primary obligation has come into effect; |
| 2. |
Where all or some of the liabilities involved have been extinguished; |
| 3. |
Where a debtor has forfeited the benefit of the term; |
| 4. |
Where a debtor has failed to discharge his/her liability; |
| 5. |
Where other grounds which may affect the guaranteed liabilities have occurred. |
[This Article Wholly Amended by Act No. 10683, May 19, 2011]
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| Article 39 (Prohibition of Guarantee) |
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The Corporation shall not provide a guarantee to any of the following enterprises (excluding a guarantee to recover the existing guarantee) within three years from the date on which the Corporation has discharged any guaranteed liability: Provided
, That this shall not apply where the Corporation suspends the exercise of its right to indemnity under Article 37 (3) 2 or provides a guarantee to collect its claims for indemnity upon a resolution by the board of directors:
| 1. |
An enterprise from which the Corporation fails to collect its claims for indemnity after it has discharged guaranteed liability for such enterprise; |
| 2. |
An enterprise which is operated or represented by a person prescribed by Presidential Decree, among the directors or executive officers of an enterprise referred to in subparagraph 1. |
[This Article Wholly Amended by Act No. 10683, May 19, 2011]
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| Article 40 (Accounting Principles) |
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| (1) |
The accounting of the Corporation shall be conducted in accordance with the business accounting standards. |
| (2) |
The fundamental property of the Corporation shall be assessed as capital in the accounting. |
[This Article Wholly Amended by Act No. 10683, May 19, 2011]
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| Article 41 (Fiscal Year) |
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The fiscal year of the Corporation shall coincide with the fiscal year of the Government.
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| Article 42 (Budgets) |
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| (1) |
The Corporation shall compile a budget indicating total income and expenditure of each business year and obtain approval therefor from the Financial Services Commission, with a resolution by the management committee. |
| (2) |
If the Corporation intends to obtain approval under paragraph (1), it shall submit the budget bill to the Financial Services Commission at least one month before the commencement of the relevant fiscal year. |
| (3) |
If the Corporation intends to revise its budget, it shall obtain approval therefor from the Financial Services Commission, with a resolution by the management committee. |
[This Article Wholly Amended by Act No. 10683, May 19, 2011]
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| Article 43 (Settlement of Accounts) |
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The Corporation shall prepare a statement of accounts, a balance sheet, a profit and loss statement and a statement of fundamental property for each fiscal year, and submit them to the Financial Services Commission within two months after the end of the relevant year, with a resolution thereon by the management committee.
[This Article Wholly Amended by Act No. 10683, May 19, 2011]
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| Article 44 (Utilization of Reserve Funds) |
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Reserve funds comprising the fundamental property which are not necessary for managing the Corporations' business shall be operated in any of the following methods: Provided, That in cases under subparagraphs 3 and 4, approval of the Financial Services Commission shall be obtained:
| 1. |
Deposit with financial companies; |
| 2. |
Purchase of State bonds, local government bonds, and bonds, the payment of which is guaranteed by the Government, local governments or financial companies; |
| 3. |
Underwriting or purchase of stocks (including investment certificates), debentures or other securities; |
| 4. |
Other methods necessary to achieve the objective, for which the Corporation is established. |
[This Article Wholly Amended by Act No. 10683, May 19, 2011]
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| Article 45 (Coverage of Losses) |
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| (1) |
When any profit is realized at the book-closing of the Corporation, the total amount of such profit shall be reserved. |
| (2) |
When any loss is incurred at the book-closing of the Corporation, it shall be covered by the reserves under paragraph (1), and when the reserves are insufficient to cover such loss, the Government shall cover it. |
[This Article Wholly Amended by Act No. 10683, May 19, 2011]
CHAPTER IV SUPPLEMENTARY PROVISIONS
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| Article 46 (Supervision) |
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The Financial Services Commission may supervise the business of the Corporation and issue orders necessary for supervising the Corporation.
[This Article Wholly Amended by Act No. 10683, May 19, 2011]
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| Article 47 (Reports and Inspections) |
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| (1) |
If it is deemed necessary for achieving the objectives, for which the Corporation is established, the Financial Services Commission may request the Corporation, financial companies entrusted by the Corporation with the business thereof (hereafter referred to as "trustee" in this Article), or financial companies, etc. making contributions to the Corporation, to submit reports, or cause any public official affiliated therewith to inspect the status of operations, books and documents or other necessary matters: Provided, That in cases of trustees, such reporting or inspection shall be limited to the entrusted duties, and in cases of financial companies, etc. making contributions to the Corporation, such reporting or inspection shall be limited to contribution-related matters. |
| (3) |
Any person who conducts an inspection under paragraphs (1) and (2) shall carry a certificate indicating his/her authority and produce it to relevant persons. |
[This Article Wholly Amended by Act No. 10683, May 19, 2011]
law view
| Article 47-2 (Entrustment of Duties) |
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| (1) |
The Corporation may entrust part of its business to financial companies, the Korea Asset Management Corporation under the Act on the Efficient Disposal of Non-Performing Assets, etc. of Financial Companies and the Establishment of the Korea Asset Management Corporation, or credit information companies under the Use and Protection of Credit Information Act (hereafter in this Article referred to as "credit information companies"), as prescribed by Presidential Decree. |
| (2) |
Any person entrusted with the business under paragraph (1) may do all judicial or extrajudicial acts in connection with such business on behalf of the Corporation: Provided, That credit information companies shall act on behalf of the Corporation only in the extrajudicial area. |
[This Article Wholly Amended by Act No. 10683, May 19, 2011]
law view
| Article 48 (Liability of Compensation, etc.) |
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| (1) |
If any executive of the Corporation incurs any loss to the Corporation by violating any Act and subordinate statutes or the articles of incorporation, or neglecting his/her duties, he/she shall be jointly and severally liable to the Corporation for compensating for such loss. |
| (2) |
If any person engaged in the guarantee business of the Corporation incurs any loss to the Corporation, intentionally or by gross negligence, in connection with his/her duties, he/she shall be liable for compensating for such loss. In such cases, such liability may be mitigated except in cases where a loss is intentionally incurred. |
[This Article Wholly Amended by Act No. 10683, May 19, 2011]
law view
| Article 49 (Prohibition of Use of Similar Names) |
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No person other than the Corporation under this Act shall use the name "Korea Technology Finance Corporation" or any other name similar thereto.
[This Article Wholly Amended by Act No. 10683, May 19, 2011]
law view
| Article 50 (Requests, etc. for Provision of Data) |
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| (2) |
The Corporation may request cooperation from enterprises to efficiently perform the comprehensive management of credit information under Article 28 (1) 5. |
| (3) |
Any person in receipt of a request for data or cooperation under paragraphs (1) and (2) shall comply therewith except in extenuating circumstances. |
[This Article Wholly Amended by Act No. 10683, May 19, 2011]
CHAPTER V PENAL PROVISIONS
law view
| Article 51 (Penal Provisions) |
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Any person who discloses confidential information in violation of Article 24 (2) shall be punished by imprisonment with prison labor for not more than two years or by a fine not exceeding ten million won.
[This Article Wholly Amended by Act No. 11409, Mar. 21, 2012]]
law view
| Article 52 (Fines for Negligence) |
|
| (1) |
Any person who uses the name of the Korea Technology Finance Corporation or any name similar thereto in violation of Article 49 shall be punished by a fine for negligence not exceeding ten million won. |
| (2) |
The Financial Services Commission shall impose and collect fines for negligence referred to in paragraph (1) under conditions prescribed by Presidential Decree. |
[This Article Newly Inserted by Act No. 11409, Mar. 21, 2012]]
ADDENDA
Article 1 (Enforcement Date)
This Act shall come into force on April 1, 1989.
Article 2 (Preparations for Establishment)
| (1) |
The Minister of Finance may commission members for Establishment Committee to perform affairs relating to the establishment of the Corporation even before this Act enters into force. |
| (2) |
A member of the Committee for Establishment commission under paragraph (1) shall prepare the articles of incorporation and obtain authorization from the Minister of Finance without delay. In this case, where it has obtained such authorization of the Minister of Finance and Economy, it shall be deemed that the resolution of the management committee according to the provisions of Article 15 (1) has been adopted. |
| (3) |
Members of the Establishment Committee shall, upon the authorization under paragraph (2), complete a registration according to Article 16. |
| (4) |
Members of the Establishment Committee shall, upon completing the registration under paragraph (3), transfer its business to the President of the Corporation without delay. |
Article 3 (Succession to Property, Rights and Duties)
| (1) |
The property, rights and duties vested in the Korea Technology Finance Corporation established under the previous provisions, at the time when this Act enters into force shall be taken over as a whole by the Corporation under this Act. |
| (2) |
The property taken over by the Corporation under the provisions of paragraph (1) shall be deemed to be its fundamental property as provided for in Article 13. |
Article 4 (Transitional Measures concerning Legal Act, etc. under Previous Provision)
Contributions toward the Korea Technology Finance Corporation, the issuance of guarantees and other legal acts already put into effect under the previous provisions, at the time when this Act enters into force, shall be deemed to have been made effective under the provisions of this Act.
ADDENDA <Act No. 4541, Mar. 6, 1993>
Article 1 (Enforcement Date)
This Act shall enter into force on the date of its promulgation. (Proviso Omitted.)
Articles 2 through 5 Omitted.
ADDENDUM <Act No. 4955, Aug. 4, 1995>
This Act shall enter into force on the date of its promulgation.
ADDENDUM <Act No. 5188, Dec. 30, 1996>
This Act shall enter into force on the date of its promulgation.
ADDENDA <Act No. 5374, Aug. 28, 1997>
Article 1 (Enforcement Date)
This Act shall enter into force on January 1, 1998.
Articles 2 through 7 Omitted.
ADDENDA <Act No. 5403, Aug. 30, 1997>
Article 1 (Enforcement Date)
This Act shall enter into force on the date of its promulgation.
Articles 2 through 8 Omitted.
ADDENDA <Act No. 5505, Jan. 13, 1998>
| (1) |
(Enforcement Date) This Act shall enter into force on April 1, 1998. (Proviso Omitted. ) |
| (2) |
(Transitional Measures concerning Dispositions) At the time of the entry into force of this Act, authorization or other actions taken by administrative agencies, or various reports or other actions submitted to administrative agencies under the previous provisions, shall be deemed to be actions taken by or submitted to administrative agencies under this Act. |
| (3) |
(Transitional Measures concerning Term of Office of Auditor) At the time of the entry into force of this Act, the term of office of the auditor of the KiboTechnology Fund, the Credit Guarantee Fund, the Korea Long-term Credit Bank, or the Export-Import Bank of Korea shall be …<Omitted. >… two years, notwithstanding the amended provisions. |
ADDENDUM <Act No. 5701, Jan. 29, 1999>
This Act shall enter into force on the date of its promulgation.
ADDENDA <Act No. 6022, Sep. 7, 1999>
Article 1 (Enforcement Date)
This Act shall enter into force on March 1, 2000.
Articles 2 and 3 Omitted.
ADDENDA <Act No. 6705, Aug. 26, 2002>
Article 1 (Enforcement Date)
This Act shall enter into force three months after the date of its promlgation.
Article 2 (Applicability to Composition of Management Committee)
The amendments to Article 17 (2) 2-2, 5 and 7 shall apply from the members first nominated or commissioned under the same amendments after this Act enters into force.
Article 3 (Transitional Measures concerning Technology Credit Guarantee)
In case where a general credit guarantee before the enforcement of this Act falls under the requirement for the technology credit guarantee after the enforcement of this Act, it shall be regarded as the technology credit guarantee.
Article 4 Omitted.
ADDENDUM <Act No. 7884, Mar. 24, 2006>
This Act shall enter into force on the date of its promulgation.
ADDENDA <Act No. 8541, Jul. 23, 2007>
Article 1 (Enforcement Date)
This Act shall enter into force on the date of its promulgation. (Proviso Omitted. )
Articles 2 through 43 Omitted.
ADDENDA <Act No. 8635, Aug. 3, 2007>
Article 1 (Enforcement Date)
This Act shall enter into force one and half year after the date of its promulgation. (Proviso Omitted. )
Articles 2 through 44 Omitted.
ADDENDA <Act No. 8852, Feb. 29, 2008>
Article 1 (Enforcement Date)
This Act shall enter into force on the date of its promulgation. (Proviso Omitted. )
Articles 2 through 7 Omitted.
ADDENDA <Act No. 8863, Feb. 29, 2008>
Article 1 (Enforcement Date)
This Act shall enter into force on the date of its promulgation.
Articles 2 through 5 Omitted.
ADDENDUM <Act No. 9456, Feb. 6, 2009>
This Act shall enter into force three months after the date of its promulgation.
ADDENDA <Act No. 9584, Apr. 1, 2009>
Article 1 (Enforcement Date)
This Act shall enter into force on May 8, 2009.
Articles 2 through 6 Omitted.
ADDENDA <Act No. 9617, Apr. 1, 2009>
Article 1 (Enforcement Date)
This Act shall enter into force six months after the date of its promulgation.
Articles 2 through 13 Omitted.
ADDENDA <Act No. 10303, May 17, 2010>
Article 1 (Enforcement Date)
This Act shall enter into force six months after the date of its promulgation. (Proviso Omitted. )
Articles 2 through 10 Omitted.
ADDENDUM <Act No. 10683, May 19, 2011>
This Act shall enter into force on the date of its promulgation.
ADDENDA <Act No. 11409, Mar. 21, 2012.
Article 1 (Enforcement Date)
This Act shall enter into force three months after its promulgation: Provided
, That the amended provisions of Articles 51 and 52 shall enter into force on the date of its promulgation.
Article 2 (Transitional Measures concerning Penal Provisions)
The application of penal provisions to offenses committed before this Act enters into force shall be governed by the former provisions.
ADDENDA <Act No. 11690, Mar. 23, 2013>
Article 1 (Enforcement Date)
| (1) |
This Act shall enter into force on the date of its promulgation. |
Articles 2 through 7 Omitted.
ADDENDA <Act No. 11843, May 28, 2013>
Article 1 (Enforcement Date)
This Act shall enter into force on the date of its promulgation.
Article 2 (Applicability to Reduction or Exemption of Jointly and Severally Guaranteed Debt)
The amended provision of Article 37-3 shall apply to jointly and severally guaranteed debt of which the principal debt is reduced or exempted as the rehabilitation plan is authorized and immunity is granted after the declaration of bankruptcy on and after this Act enters into force.
