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PUBLIC CAPITAL REDEMPTION FUND ACT

Act No. 6804, Dec. 26, 2002

Amended by Act No. 8047, Oct. 4, 2006

Act No. 8050, Oct. 4, 2006

Act No. 8135, Dec. 30, 2006

Act No. 8852, Feb. 29, 2008

Act No. 8863, Feb. 29, 2008

Act No. 9280, Dec. 31, 2008

Act No. 10061, Mar. 12, 2010

Act No. 10682, May 19, 2011

 Article 1 (Purpose)
The purpose of this Act is to provide for matters necessary for the establishment, operation, management, etc. of the Fund for Repayment of Public Funds to facilitate the redemption of debts which are incurred, in financial restructuring, by the Korea Deposit Insurance Corporation established under the Depositor Protection Act and the Korea Asset Management Corporation established under the Act on the Efficient Disposal of Non-Performing Assets, etc. of Financial Companies and the Establishment of Korea Asset Management Corporation. <Amended by Act No. 10682, May 19, 2011>
[This Article Wholly Amended by Act No. 10061, Mar, 12, 2010]
 Article 2 (Definitions)
As used in this Act, the term "debts of the Fund for Redemption of Deposit Insurance Fund Bonds and the Non-Performing Loan Resolution Fund" means any of the following:
1. Principal of and interest on bonds provided for by Presidential Decree, which shall be redeemed out of the Fund for Redemption of Deposit Insurance Fund Bonds established under the Depositor Protection Act (hereinafter referred to as the "Fund for Redemption of Deposit Insurance Fund Bonds") and the Non-Performing Loan Resolution Fund 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 "Non-Performing Loan Resolution Fund");
2. Loans obtained by the Fund for Redemption of Deposit Insurance Fund Bonds and the Non-Performing Loan Resolution Fund from the loan account of the Public Capital Management Fund established under the Public Capital Management Fund Act (hereinafter referred to as the "Public Capital Management Fund").
[This Article Wholly Amended by Act No. 10061, Mar, 12, 2010]
 Article 3 (Establishment of Fund for Repayment of Public Funds)
(1) In order to facilitate the redemption of debts of the Fund for Redemption of Deposit Insurance Fund Bonds and the Non-Performing Loan Resolution Fund, the Government shall establish the Fund for Repayment of Public Funds (hereinafter referred to as the "Fund"), which is to carry out such projects as funding for the Fund for Redemption of Deposit Insurance Fund Bonds and the Non-Performing Loan Resolution Fund.
(2) The resources of the Fund shall consist of the following:
1. Deposits received from the Public Capital Management Fund;
2. Surplus in tax accounts under Article 90 of the National Finance Act;
3. Contributions from the accounts of the Government under Article 6 of this Act;
4. Surplus on the settlement of accounts of the Fund;
5. Contributions from the special account for post office deposits under the Government Enterprise Budget Act;
6. Contributions from the special accounts for postal insurance under the Act on Special Accounts for Postal Insurance;
7. Temporary borrowings under Article 9 of this Act;
8. Other funds provided for by Presidential Decree.
[This Article Wholly Amended by Act No. 10061, Mar, 12, 2010]
 Article 4 (Operation and Management of Fund)
(1) The Fund shall be operated and managed by the Financial Services Commission.
(2) The Fund shall be used for the following purposes:
1. Contribution to the Fund for Redemption of Deposit Insurance Fund Bonds and the Non-Performing Loan Resolution Fund;
2. Redemption of debts of the Fund;
3. Expenses necessary for the operation and management of the Fund.
(3) The Financial Services Commission may, if it contributes funds under paragraph (2) 1, conclude an agreement which provides for the settlement in case of recalculation, etc. under Article 7.
(4) The Financial Services Commission may commission the Governor of the Bank of Korea to handle administrative affairs relating to the operation and management of the Fund, as prescribed by Presidential Decree.
(5) If surplus funds are generated in the course of operating the Fund, the Financial Services Commission may operate them for one year or less in any of the following ways:
1. Purchase of securities, such as Government bonds;
2. Deposit in or loan to financial institutions;
3. Other ways determined by the Financial Services Commission.
(6) Other matters necessary for the operation and management of the Fund shall be provided for by Presidential Decree.
[This Article Wholly Amended by Act No. 10061, Mar, 12, 2010]
 Article 5 (Contribution to Fund)
(1) Surplus in tax accounts under Article 3 (2) 2 may be contributed to the Fund with the approval of the President after deliberation by the State Council irrespective of annual budget expenditure of those accounts until the year following that in which such surplus accrues. In such cases, the Fund may use the contribution for purposes set forth in Article 4 (2) 1 and 2, notwithstanding Article 70 (2) of the National Finance Act.
(2) The Minister of Strategy and Finance shall contribute 30/100 or more of surplus in tax accounts in the preceding year to the Fund in conformity with the procedures under paragraph (1).
(3) The prepared budget may be revised with financial resources raised by the amount of money exceeding 70/100 of surplus in tax accounts if it is unavoidable to do so either due to any natural disaster or in running the national economy. In such cases, the Minister of Strategy and Finance shall contribute the balance of such surplus in tax accounts to the Fund, notwithstanding paragraph (2).
(4) The amount of money (100,000 won, in cases where such amount is less than 100,000 won) obtained by multiplying the average balance in the preceding year of postal savings under the Postal Savings and Insurance Act by the ratio provided for by Presidential Decree to the extent not exceeding 3/1000 shall be contributed to the Fund from the special accounts for post office deposits each year.
(5) The amount of money (100,000 won, in cases where such amount is less than 100,000 won) obtained by multiplying any other amount of money provided for by Presidential Decree in consideration of reserves for liability, etc. accumulated in the preceding year by the ratio provided for by Presidential Decree to the extent not exceeding 3/1000 shall be contributed to the Fund from the special accounts for post office insurance each year.
(6) Matters necessary for the method, timing, etc. of contribution under paragraphs (4) and (5) shall be provided for by Presidential Decree.
[This Article Wholly Amended by Act No. 10061, Mar, 12, 2010]
 Article 6 (Inclusion in Budget, etc.)
(1) The Government shall include the following expenses and financial resources in the budget each fiscal year:
1. Expenses provided for in Article 4 (2) 3;
2. Financial resources necessary to redeem debts of the Fund in full by the year 2027.
(2) The Financial Services Commission shall request the Minister of Strategy and Finance to include funds to be provided from national finance in annual budget expenditure each year, taking into account operation status of the Fund in the following year.
(3) The Minister of Strategy and Finance shall endeavor to comply with the request under paragraph (2) and shall, if it is difficult to include such funds in annual budget expenditure due to financial circumstances, etc., appropriate deposits received from the Public Capital Management Fund for insufficient financial resources including the funds.
[This Article Wholly Amended by Act No. 10061, Mar, 12, 2010]
 Article 7 (Recalculation System)
(1) The Financial Services Commission shall conduct a due diligence on the assets and debts of the Fund for Redemption of Deposit Insurance Fund Bonds and the Non-Performing Loan Resolution Fund every five years after the establishment of the Fund: Provided, That the Financial Services Commission may conduct such due diligence whenever it is deemed necessary.
(2) The Financial Services Commission shall, if deemed necessary as a result of a due diligence conducted under paragraph (1), take measures such as revising debts of the Fund for Redemption of Deposit Insurance Fund Bonds and the Non-Performing Loan Resolution Fund after consulting with the Minister of Strategy and Finance.
(3) The Financial Services Commission shall, when it takes measures under paragraph (2), endeavor to take into account the ratio of contributions from the Fund under Article 4 (2) 1 of this Act to funds raised out of special contributions for redemption of deposit insurance fund bonds under Article 30-3 of the Depositor Protection Act.
(4) The Financial Services Commission shall report the results of due diligence on assets and debts of the Fund for Redemption of Deposit Insurance Fund Bonds and the Non-Performing Loan Resolution Fund as well as the scheduled measures under paragraphs (1) and (2) to the National Assembly.
[This Article Wholly Amended by Act No. 10061, Mar, 12, 2010]
 Article 8 (Submission of Plans for Redemption of Principal of and Interest on Public Funds to National Assembly)
The Financial Services Commission shall prepare a specification of and a plan for the redemption of public funds under subparagraph 1 of Article 2 of the Special Act on the Management of Public Funds as prescribed by Presidential Decree and submit them to the National Assembly not later than December 31 of each year.
[This Article Wholly Amended by Act No. 10061, Mar, 12, 2010]
 Article 9 (Temporary Borrowing of Funds)
If there is a temporary lack of funding in the course of operating the Fund, the Financial Services Commission may temporarily borrow funds necessary for the operation of the Fund (the period of such borrowing shall not exceed one year) from the Government, the Bank of Korea or other institutions provided for by Presidential Decree at the expense of the Fund.
[This Article Wholly Amended by Act No. 10061, Mar, 12, 2010]
 Article 10 (Fund Operation Council)
(1) There shall be established the Fund Operation Council (hereinafter referred to as the "Council") to deliberate on matters concerning the operation and management of the Fund.
(2) The Council shall deliberate on the following matters:
1. Major policies concerning the operation and management of the Fund;
2. Preparation of a draft fund management plan under Article 66 (5) of the National Finance Act;
3. Revision of the amount of expenditure in a main category under Article 70 (2) of the National Finance Act;
4. Preparation of a statement of accounts under Article 73 of the National Finance Act;
5. Major matters concerning the operation and management of the Fund provided for by Presidential Decree;
6. Other matters brought by the Council chairperson to the Council for deliberation as he/she deems it necessary.
(3) Matters necessary for the constitution and operation of the Council shall be provided for by Presidential Decree.
[This Article Wholly Amended by Act No. 10061, Mar, 12, 2010]
 Article 11 (Opening of Account of Fund)
In order to clarify revenues and expenditures of the Fund, the Financial Services Commission shall open its account of the Fund with the Bank of Korea. <Amended by Act No. 8863, Feb. 29, 2008>
 Article 12 (Authorities Responsible for Accounting of Fund)
(1) The Financial Services Commission shall, from among public officials under its jurisdiction, appoint a revenue collection officer, a financial officer, a disbursing officer, and an accounting officer for the Fund, in order to have them deal with the affairs of revenues and expenditures of the Fund.
(2) If affairs relating to the operation and management of the Fund are commissioned to the Governor of the Bank of Korea under Article 4 (4), the Financial Services Commission may appoint an Assistant Governor in charge of revenues of the Fund and an Assistant Governor in charge of acts of causing expenditures of the Fund from among Assistant Governors of the Bank of Korea, and an expenditure clerk and an accounting clerk for the Fund from among employees of the Bank of Korea, respectively. In such cases, the Assistant Governor in charge of revenues of the Fund, the Assistant Governor in charge of acts of causing expenditures of the Fund, the expenditure clerk, and the accounting clerk shall perform duties of the revenue collection officer, the financial officer, the disbursing officer, and the accounting officer for the Fund, respectively.
[This Article Wholly Amended by Act No. 10061, Mar, 12, 2010]
 Article 13 (Disposal of Surplus and Loss In Settlement of Fund)
(1) If there accrues any surplus in settlement of accounts of the Fund, that surplus shall be reserved in full.
(2) If there accrues any loss in settlement of accounts of the Fund, that loss shall be covered by a reserve under paragraph (1), and if the reserve is insufficient for covering the loss, the Government may make up for the loss out of the general accounts.
[This Article Wholly Amended by Act No. 10061, Mar, 12, 2010]
 Article 14 (Supervision and Order)
If administrative affairs relating to the operation and management of the Fund are commissioned under Article 4 (4), the Financial Services Commission shall supervise such commissioned affairs and may give orders necessary therefor.
[This Article Wholly Amended by Act No. 10061, Mar, 12, 2010]
 Article 15 (Liquidation of Fund)
If the Fund is liquidated, the balance shall devolve on the National Treasury.
[This Article Wholly Amended by Act No. 10061, Mar, 12, 2010]
 Article 16 (Application of Act on Operation of Fund)
Except as otherwise provided for in this Act, the National Finance Act shall apply to the operation and management of the Fund.
[This Article Wholly Amended by Act No. 10061, Mar, 12, 2010]
ADDENDA
Article 1 (Enforcement Date)
This Act shall enter into force on January 1, 2003: Provided, That the provisions of Article 5 (4) and (5) shall enter into force on January 1, 2004.
Article 2 (Effective Period)
This Act shall remain effective until December 31, 2027.
Article 3 (Special Cases concerning Fund Management Plans for Year 2003)
(1) Notwithstanding Article 10 (1) of the Public Capital Management Fund Act, Article 8 of the Framework Act on Fund Management and Article 84-2 of the National Assembly Act, national bonds may be issued from the Public Capital Management Fund to the extent appropriated as financial resources of the Fund in the budget for the year 2003 and may be deposited with the Fund, and deposits received from the Public Capital Management Fund and contributions from the general accounts may be used for purposes under Article 4 (2) of this Act, notwithstanding Article 10 (2) of this Act, Article 7 of the Framework Act on Fund Management and Article 84-2 of the National Assembly Act.
(2) If the Fund is established, the Minister of Finance and Economy shall, without delay, submit a fund management plan for the year 2003 and a revised fund management plan for the Public Capital Management Fund for the year 2003 (hereinafter referred to as "fund management plan, etc.") to the Minister of Planning and Budget after deliberation and resolution by the relevant Fund Operation Council (referring to the Fund Operation Committee, in case of the Public Capital Management Fund), and the Minister of Planning and Budget shall submit those plans to the National Assembly with the approval of the President after deliberation by the State Council. In such cases, the fund management plan, etc. shall be deemed to have been deliberated upon and confirmed.
(3) The fund management plan, etc. provided in paragraph (2) shall be prepared in conformity with the budget for the year 2003 deliberated and resolved by the National Assembly.
Article 4 (Exemption from Obligation)
Any obligation to redeem loans under subparagraph 2 of Article 2 (limited to the balance of loans as of December 31, 2002) shall be exempted.
Article 5 Omitted.
ADDENDA<Act No. 8047, Oct. 4, 2006>
Article 1 (Enforcement Date)
This Act shall enter into force on January 1, 2007.
Article 2 Omitted.
ADDENDA<Act No. 8050, Oct. 4, 2006>
Article 1 (Enforcement Date)
This Act shall enter into force on January 1, 2007. (Proviso Omitted.)
Articles 2 through 12 Omitted.
ADDENDA<Act No. 8135, Dec. 30, 2006>
Article 1 (Enforcement Date)
This Act shall enter into force on January 1, 2007.
Articles 2 through 9 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.
ADDENDA<Act No. 9280, Dec. 31, 2008>
Article 1 (Enforcement Date)
This Act shall enter into force on January 1, 2009.
Articles 2 through 6 Omitted.
ADDENDUM<Act No. 10061, Mar. 12, 2010>
This Act shall enter into force on the date of its promulgation.
ADDENDA<Act No. 10682, May 19, 2011>
Article 1 (Enforcement Date)
This Act shall enter into force on the date of its promulgation.
Articles 2 and 3 Omitted.