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STATE CREDIT MANAGEMENT ACT

Act No. 2250, Dec. 31, 1970

Amended by Act No. 3628, Dec. 31, 1982

Act No. 3947, Nov. 28, 1987

Act No. 4408, Nov. 30, 1991

Act No. 5454, Dec. 13, 1997

Act No. 6627, Jan. 26, 2002

Act No. 6626, Jan. 26, 2002

Act No. 7029, Dec. 31, 2003

Act No. 8050, Oct. 4, 2006

Act No. 8852, Feb. 29, 2008

Act No. 10571, Apr. 8, 2011

Act No. 12029, Aug. 13, 2013

CHAPTER I GENERAL PROVISIONS
 Article 1 (Purpose)
The purpose of this Act is to promote appropriate management of state claims by establishing standards covering management body of State claims, procedures for managing such claims, modification of the terms and conditions thereof, and exemptions, etc. therefrom.
[This Article Wholly Amended by Act No. 10571, Apr. 8, 2011]
 Article 2 (Definitions)
The definitions of terms used in this Act shall be as follows:
1. The term "claims" means the right of the State to receive monetary payments;
2. The term "head of a central government agency" means the Speaker of the National Assembly, the Supreme Justice of the Supreme Court, the President of the Constitutional Court, or any other head of a central government agency established by the Constitution of the Republic of Korea, the Government Organization Act, or other Acts;
3. The term "claims management duties" means duties concerning the preservation of claims, the exercise of claims, the modification of the terms and conditions of claims, and the lapse of claims by the State as a creditor, except for the following duties:
(a) Duties that fall under the jurisdiction of the Minister of Justice in accordance with the Act on Litigation to which the State is a Party;
(b) Duties performed by a person who executes the disposition on default of payment in accordance with the statutes;
(c) Duties concerning the receipt of payment due;
(d) Duties concerning the custody of movable properties under the Commodity Management Act.
4. The term "claims management officer" means a person who is in charge of the management of claims as prescribed in Article 6 (1) through (3).
[This Article Wholly Amended by Act No. 10571, Apr. 8, 2011]
 Article 3 (Claims which are Excluded from Application of This Act)
(1) This Act shall not apply to any of the following claims: Provided, That Articles 36 and 37 shall apply to the claims prescribed by Presidential Decree:
1. Fines, minor fines, criminal surcharge, administrative fines and other equivalent claims prescribed by Presidential Decree;
2. Claims in the form of securities;
3. Claims concerning savings and deposits of the State;
4. Claims for the payment of money to be reserved;
5. Claims concerning donations;
6. National taxes, customs duties, and claims concerning their collection.
(2) Part of this Act may not apply to the following claims pursuant to Presidential Decree:
1. A claims where a foreign country or an international organization is a debtor;
2. A claims which shall be extinguished immediately;
3. Claims prescribed by Presidential Decree other than those referred to in subparagraphs 1 or 2.
[This Article Wholly Amended by Act No. 10571, Apr. 8, 2011]
 Article 4 (Relationship with other Statues)
With respect to the management of claims, this Act shall apply except as otherwise prescribed in other Acts.
[This Article Wholly Amended by Act No. 10571, Apr. 8, 2011]
CHAPTER II CLAIMS MANAGEMENT AUTHORITY
 Article 5 (Overall Supervision over Claims Management Duties)
(1) The Minister of Strategy and Finance shall perform the following duties for the appropriate management of claims:
1. Modification of claims management system;
2. Establishment of uniform standards for performing claims management duties;
3. Coordination in handling the claims management affairs;
4. Managing the performance of duties concerning claims management.
(2) The head of a central government agency shall manage the claims that fall under his/her jurisdiction and supervise claims management officers' duties.
(3) If the Minister of Strategy and Finance deems it necessary for the proper management of claims, he/she may request the head of a central government agency to submit a report on the particulars and management status of the claims which fall within the head's jurisdiction, to cause the personnel under his/her supervision to provide guidance, or to conduct an on-site investigation, and to take other necessary measures.
[This Article Wholly Amended by Act No. 10571, Apr. 8, 2011]
 Article 5-2 (General Claims Management Officer)
(1) The head of each central government agency shall appoint, from among the claims management officers of his/her agency, a general claims management officer who shall supervise overall claims management duties (hereinafter referred to as the "general claims management officer").
(2) The general claims management officer shall, as determined by the head of the central government agency to which he/she belongs, perform the following duties which are under the jurisdiction of the relevant agency.
1. Compilation of a report on the present amount of claims under Article 36;
2. Modification of claims management procedures;
3. Coordination in handling claims management affairs;
4. Managing performance of duties concerning claims management (including the formulation of a plan for collection of overdue claims);
5. Supervision over duties of claims management.
[This Article Wholly Amended by Act No. 10571, Apr. 8, 2011]
 Article 6 (Delegation of Claims Management, etc.)
(1) The head of each central government agency may, as prescribed by Presidential Decree, delegate the claims management duties under his/her jurisdiction to the public officials who belong to the relevant agency or other central government agencies, or the heads or the public officials of local governments.
(2) When a public official to whom the claims management duties is delegated is unable to perform his/her duties due to any unavoidable reason, the head of a central government agency may, as prescribed by Presidential Decree, designate another public official who shall perform the relevant duties on his/her behalf.
(3) The head of a central government agency may, if deemed necessary, appoint a public official as prescribed by Presidential Decree who shall share the public official's claims management duties that are delegated pursuant to paragraph (1).
(4) Instead of delegating claims management duties under paragraph (1), the head of a central government agency may designate a public post established in his/her own agency, other central government agencies, or local governments.
[This Article Wholly Amended by Act No. 10571, Apr. 8, 2011]
 Article 7 Deleted. <by Act No. 3628, Dec. 31, 1982>
 Article 8 (Consultation on Delegation of Duties)
If the head of a central government agency intends to delegate claims management duties under his/her jurisdiction under Article 6 (1), he/she shall, in advance, obtain the consent of the head of a central government agency or a local government concerned.
[This Article Wholly Amended by Act No. 10571, Apr. 8, 2011]
 Article 9 (Handing over Claims Management Duties)
(1) If there exists any reason such as the change of the address of a debtor or the organization of the office of a central government agency concerned, etc., the head of a central government agency may hand over all or part of the claims management duties to other claims management officer as prescribed by Presidential Decree.
(2) If duties which fall under the jurisdiction of the head of a central government agency have come under the jurisdiction of the head of any other central government agency, the head of the former central government agency shall hand over the claims management duties which fall within the scope of duties to be transferred to the head of the latter central government agency as prescribed by Presidential Decree.
[This Article Wholly Amended by Act No. 10571, Apr. 8, 2011]
 Article 10 (Separation of Claims Management Agency and Recipient Agency)
A claims management officer cannot concurrently hold cash receipts and disbursements duties, unless otherwise prescribed by Presidential Decree.
[This Article Wholly Amended by Act No. 10571, Apr. 8, 2011]
CHAPTER III STANDING RULES FOR CLAIMS MANAGEMENT
 Article 11 (Standard for Management)
Claims management duties shall be carried out in such a manner so as to meet the financial interest of the State according to the statutes, causes of occurrence and particulars of claims.
[This Article Wholly Amended by Act No. 10571, Apr. 8, 2011]
 Article 11-2 (Notice of Claims Incurred)
Any person who has incurred claims pursuant to the statutes or by a contract or other acts, or who has transferred the claims to the State, or who has been informed of such facts, shall, in the following cases, notify a claims management officer of the claims incurred without delay: Provided, That, in the cases of subparagraph 1, if there exists any condition precedent to the creation or transfer of the claims, the notification shall be made when he/she becomes aware of the fulfillment of the condition, and if there exists an indefinite time, the notification shall be made when he/she becomes aware of the arrival of such time:
1. Where he/she has concluded a contract or conducted an act which results in the creation of the claims or transfer of the claims to the State;
2. Where he/she was informed that the claims for refund have been incurred as a result of causative acts of expenditure or causative acts of payment;
3. Where he/she was informed, owing to the circumstances that arise after concluding the contract, that the claims have been incurred or have been transferred to the State;
4. Where he/she was informed of the claims incurred in the course of the receipt, disbursement, custody, or management of such State's properties as cash, goods. etc.
[This Article Wholly Amended by Act No. 10571, Apr. 8, 2011]
 Article 12 (Bookkeeping and Records)
A claims management officer shall keep an account book in order to record matters concerning management, and if he has been notified of the claims incurred under the provisions of Article 11-2, or if he was given the claims under the provisions of Article 9, he shall, without delay, investigate, confirm and record each of the following: Provided, That this shall not apply to claims prescribed by Presidential Decree.
In case the claims have been transferred pursuant to Article 9: matters transferred;
In case the notice of claims incurred has been given: matters notified.
[This Article Wholly Amended by Act No. 10571, Apr. 8, 2011]
 Article 13 (Payment Notices)
(1) In order to exercise claims, a claims management officer shall request a revenue collector to give a payment notice to a debtor, as prescribed by Presidential Decree: Provided, That if the claims management officer concurrently holds the position of a revenue collector, or if the claims are not included in revenues and unless otherwise provided in other Acts, the claims management officer himself/herself shall give a payment notice to a debtor.
(2) When the revenue collector receives such request pursuant to paragraph (1), he/she shall, without delay, give a payment notice to the debtor and inform the relevant claims management officer thereof.
(3) Paragraphs (1) and (2) shall not apply to any of the claims which are subject to payment by report or to other claims prescribed by Presidential Decrees.
[This Article Wholly Amended by Act No. 10571, Apr. 8, 2011]
 Article 14 (Demand)
(1) If all or part of claims are not paid within the payment period notified under Article 13 (referring to a "deadline of performance" in the case of claims that do not require the notification of payment), a claims management officer shall request a revenue collector to compel the performance. In such case, a demand notice shall be issued less than seven days after the payment deadline has lapsed, and the payment deadline set as a result of the issuance of the demand notice (hereinafter referred to as "demanded deadline") shall be a date that falls within the next 15 days after the date on which the demand notice is issued.
(2) The proviso to paragraph (1) of Article 13 and paragraph (2) of the same Article shall apply mutatis mutandis to the demand under paragraph (1).
[This Article Wholly Amended by Act No. 10571, Apr. 8, 2011]
 Article 14-2 (Entrustment of Collection of Overdue Debts)
(1) To recover claims unpaid (hereinafter referred to as “overdue debts”) even after a demand notice is issued under Article 14 (1), the head of a central government agency may entrust the following functions (hereinafter referred to as “collection of overdue debts”) to the Korea Asset Management Corporation under the Act on the Efficient Disposal of Non-Performing Assets, etc. of Financial Companies and the Establishment of Korea Asset Management Corporation or a credit information company permitted to engage in the business activities specified in Article 4 (1) 3 of the Use and Protection of Credit Information Act to the minimum extent necessary for the collection of overdue debts, as prescribed by Presidential Decree:
1. Verifying the addresses or abodes of debtors from whom overdue debts shall be collected (hereinafter referred to as “delinquent debtor”);
2. Investigating into delinquent debtors’ property;
3. Sending letters demanding the payment of overdue debts and providing counseling services by telephone or in person;
4. Functions prescribed by Presidential Decree as simple real acts similar to those prescribed in subparagraphs 1 through 3.
(2) No one entrusted with the collection of overdue debts under paragraph (1) (hereinafter referred to as “entrusted agency”) shall re-entrust it to any third party.
(3) When the head of a central government agency intends to entrust the collection of overdue debts to a person pursuant to paragraph (1), he/she shall, in advance, consult thereon with the Minister of Strategy and Finance. If the Minister of Strategy and Finance deems it necessary for appropriately managing claims in such cases, he/she may place limits on the scope of persons who can be entrusted with the collection of overdue debts, as prescribed by Presidential Decree.
(4) The method of entrustment, the scope of overdue debts subject to entrustment, entrustment fees, and other matters necessary for the collection of overdue debts shall be prescribed by Presidential Decree.
[This Article Newly Inserted by Act No. 12029, Aug. 13, 2013]
 Article 14-3 (Supervision over Entrusted Agencies, etc.)
(1) When the head of a central government agency deems it necessary for managing the entrusted collection of overdue debts, he/she may require entrusted agencies to file necessary reports or audit the performance of entrusted administrative affairs.
(2) If the head of a central government agency finds that administrative affairs performed by an entrusted agency are illegal or unreasonable, he/she may request the head of the entrusted agency to take corrective measures or to give a reprimand to the executive officers and employees involved and may terminate the entrustment contract or disqualify the relevant entrusted agency from collecting overdue debts for a specified period.
(3) If the Minister of Strategy and Finance deems it necessary for the appropriate management of collection of overdue debts, he/she may require the head of a central government agency to furnish him/her with data about entrusted administrative affairs or may request the head of a central government agency to take necessary measures.
(4) Other matters necessary for the supervision, audit, etc. of entrusted agencies shall be prescribed by Presidential Decree.
[This Article Newly Inserted by Act No. 12029, Aug. 13, 2013]
 Article 15 (Requests for Compulsory Performance, etc.)
If all or part of claims are still not paid by the deadline specified in a demand notice issued under Article 14, the head of a central government agency shall take following measures: Provided, That this shall not apply where the collection of overdue debts has been entrusted to a person pursuant to Article 14-2, a measure discontinuing management has been taken under Article 24 (1), the payment period is extended under Article 27 (including where the payment period is extended by settlement under Article 30, and a similar measure is taken under any other Act), a debt shall be collected in the same manner as national taxes and delinquent national taxes are collected, or the head of a central government agency make decisions in consultation with the Minister of Strategy and Finance: <Amended by Act No. 12029, Aug. 13, 2013>
1. In cases of secured claims (including claims with guarantee of a guarantor; hereinafter the same shall apply), to dispose of the security in accordance with the particulars of the clams, to request the Minister of Justice to hold an auction or implement a process to exercise the security right, or to request the guarantor to make good on the claims;
2. In cases of claims with a schuldtitel (including where a schuldtitel is acquired under subparagraph 3), to request the Minister of Justice to conduct compulsory execution proceedings;
3. In cases of claims which do not fall under subparagraphs 1 and 2 (including claims falling under subparagraph 1, the payment of which is not made despite that the measures under the same subparagraph have been taken), to request the Minister of Justice to demand payment through legal proceedings (including non-contentious case proceedings) and to initiate proceedings for the acquisition of schuldtitel, such as the preparation of the authentic deed.
[This Article Wholly Amended by Act No. 10571, Apr. 9. 2011]
 Article 16 (Collection Prior to Deadline for Performance)
If a claims management officer becomes aware that a cause has arisen justifying advancing the deadline for performance, he/she shall, without delay, take measures under Article 13: Provided, That this shall not apply to cases where the deadline for performance can be extended under any subparagraph of Article 27 (1).
[This Article Wholly Amended by Act No. 10571, Apr. 8, 2011]
 Article 17 (Report of Claims)
If a claims manager becomes aware of the occurrence of any of the following cases, he/she shall request the share of the claims which is under his/her jurisdiction or file a report on the claims in accordance with the relevant Acts:
1. Where compulsory execution has been enforced against the assets of a debtor;
2. Where a debtor has become subject to a disposition on default of taxes or other public charges;
3. Where an auction of a debtor's property has commenced;
4. Where a debtor is declared bankrupt;
5. Where an incorporated debtor is dissolved;
6. Where a successor to a debtor approves qualified acceptance;
7. Except for the cases of subparagraphs 4 through 6, where the procedure for liquidating the whole property of a debtor has been commenced.
[This Article Wholly Amended by Act No. 10571, Apr. 8, 2011]
 Article 18 (Demand for Provision of Collateral, etc.)
(1) A claims management officer shall demand a debtor to provide collateral or a guarantor for preserving claims, as prescribed by statutes or a contract, and if necessary, he/she shall demand an additional collateral, change of the guarantor, or otherwise change of the collateral.
(2) When the collateral is provided, a claims management officer shall, without delay, take necessary steps for registration for the establishment of a security right or establish the necessary requirements for asserting the creditor’s security right against any third party.
[This Article Wholly Amended by Act No. 10571, Apr. 8, 2011]
 Article 19 (Preservation of Collateral or Evidence)
(1) A claims management officer shall handle and preserve, with the care of a good manager, collateral which is to be held by the State as a creditor in relation to the claims (including things acquired by subrogation of debtor's interests) or documents and other things necessary for proving matters concerning claims or the security of claims.
(2) In the case of paragraph (1), if collateral is in the form of a valuable instrument, the said collateral shall be kept and preserved in accordance with the provisions of relevant statutes.
(3) In the case of paragraph (1), if collateral is a movable to which the Commodity Management Act applies mutatis mutandis under Article 47 of the same Act, an accounting official for commodities under Article 10 of the same Act shall keep the security, and a claims management officer shall issue an order of receipts and disbursements under Article 31 of the same Act.
[This Article Wholly Amended by Act No. 10571, Apr. 8, 2011]
 Article 20 (Provisional Attachment or Provisional Disposition)
The head of a central government agency shall request the Minister of Justice to initiate procedures for provisional attachment or provisional disposition, if necessary for the preservation of claims.
[This Article Wholly Amended by Act No. 10571, Apr. 8, 2011]
 Article 21 (Exercise of Subrogation Right of Creditor)
A claims management officer shall take measures to exercise a creditor's subrogation right, if necessary, for the preservation of claims.
[This Article Wholly Amended by Act No. 10571, Apr. 8, 2011]
 Article 22 (Revocation of Fraudulent Acts)
When the head of a central government agency is informed that a debtor has conducted fraudulent acts that cause damage to the interests of the State, he/she shall request the Minister of Justice to apply to the court for revocation of such acts.
[This Article Wholly Amended by Act No. 10571, Apr. 8, 2011]
 Article 23 (Interruption of Prescription)
When it is likely that the claims shall be extinguished by prescription, a claims management officer shall, without delay, take measures to suspend the extinctive prescription, such as requesting the Minister of Justice to bring juridical claim, etc.
[This Article Wholly Amended by Act No. 10571, Apr. 8, 2011]
 Article 24 (Discontinuance of Management)
(1) Where only partial payment of claims have been made by a debtor despite a claims management officer's demand for full payment under Article 14 with the permission of the head of the central government agency to which he/she belongs, the claims management officer may discontinue his/her duties concerning the preservation or collection of the claims as prescribed by the Presidential Decree, if the claims or the debtor falls under any of the following subparagraphs: Provided, That this shall not apply to the duties concerning the preservation of collateral or evidence under Article 19:
1. When an incorporated debtor has discontinued its business without the possibility of resumption thereof, and the value of attachable property of the corporation does not exceed the costs of compulsory execution: Provided, That this shall not apply where there is another person who can liquidate the debt owed by the corporation concerned;
2. Where the debtor's whereabouts are not yet known and the value of attachable property does not exceed the costs of compulsory execution, or under similar circumstances prescribed by the Presidential Decree;
3. Where the amount of claims is smaller than the costs of collection.
(2) When a claims management officer, after taking measures pursuant to paragraph (1), acknowledges that it is not necessary to continue to put the measures in place any longer or the measures are inappropriate due to changes in circumstances or for other reasons, he/she shall, without delay, cancel the measures.
[This Article Wholly Amended by Act No. 10571, Apr. 8, 2011]
 Article 25 (Notification of Extinction of Claims)
When a revenue collector, a person who accepts payment under the provisions of statutes, or a person who notifies the occurrence of claims under Article 11-2 was informed of the extinction of claims in the course of his/her work, he/she shall notify the claims management officer of such fact.
[This Article Wholly Amended by Act No. 10571, Apr. 8, 2011]
 Article 25-2 (Provision of Data about Overdue Debts or Discontinuance of Management)
(1) Upon receipt of a request from a credit information company as defined in subparagraph 5 of Article 2 of the Use and Protection of Credit Information Act, a credit information collection agency as defined in subparagraph 6 of Article 2 of the aforesaid Act, or any other person prescribed by Presidential Decree to provide him/her with personal information about any of the following delinquent debtors or about a debtor who owes a debt, the management of which has been discontinued under Article 24 (including debts disposed of as losses under other Acts; the same shall apply hereinafter) or data about overdue debts or debts, the management of which have been discontinued (hereinafter referred to as “data about overdue debts or discontinuance of management”), where such information or data are necessary for public interest, such as collection of overdue debts, the head of a central government agency may provide relevant data: Provided, That data about overdue debts or discontinuance of management shall not be provided where an objection is filed, an appeal for administrative adjudication, or an administrative lawsuit is pending with respect to the relevant overdue debts or the debt subject to the discontinuance of management or in other circumstances prescribed by Presidential Decree:
1. A person who still owes overdue debts in excess of the amount prescribed by Presidential Decree even one year after the deadline given by the demand notice;
2. A person who fails to pay overdue debts on at least three occasions and the overdue debts exceeds the amount prescribed by Presidential Decree;
3. A person, the total amount of whose debts subject to the discontinuance of management exceeds the amount prescribed by Presidential Decree.
(2) No one provided with data about overdue debts or discontinuance of management shall divulge or use such data for any purpose other than to conduct his/her own business.
(3) Matters necessary for procedures for the provision of data about overdue debts or discontinuance of management shall be prescribed by Presidential Decree.
[This Article Newly Inserted by Act No. 12029, Aug. 13, 2013]
CHAPTER IV CHANGE IN PARTICULARS OF CLAIMS AND RELEASE OF CLAIMS
 Article 26 (Decision on Payment Period)
(1) Payment period shall be fixed.
(2) The payment of claims can, if deemed to facilitate the payment of debt, despite the provision of paragraph (1) mentioned above, to be spreaded over a period unless there are special provisions in other statutes.
[This Article Wholly Amended by Act No. 10571, Apr. 8, 2011]
 Article 27 (Special Contract for Extension of Payment Period)
(1) When claims (excluding claims collected pursuant to the example of the collection of national taxes, and the disposition on default of national taxes and other claims prescribed by the Presidential Decree) fall under any of the following, a claims management officer may, with the permission of the head of a central government agency to which he belongs, enter into a special contract or take measures to extend the payment period (hereinafter referred to as "a special contract for the extension of payment period") in accordance with the Presidential Decree:
1. When a debtor is insolvent;
2. When a debtor cannot pay off the debt in full at once and extending the period is deemed likely to lead to the collection of claims, considering the debtor's financial conditions;
3. In relation to claims incurred under a contract, when a debtor cannot pay off his/her debt in a lump sum, and making the payment within the specified period is deemed likely to be against the public interest;
4. In relation to claims incurred to pay a refund which is compensation for damages or undue benefits, when it is deemed that a debtor is making his/her best efforts to repay his/her debt despite the fact that he/she cannot pay off the debt in a lump sum;
5. In relation to claims incurred by a loan, when the debtor has extended the loan again to a third party in accordance with the purpose of the loan and it is difficult to receive payment of the loan from the third party due to the reasons described in any of subparagraphs 1 through 3 and, therefore, it is deemed that the debtor concerned is unable to pay his/her whole debts at once.
(2) A claims management officer may enter into a special contract for a period of performance under paragraph (1), even though the period has expired. In such cases, a fine for the arrears which has already occurred (referring to compensation for damages and other equivalent impositions resulting from the delay of payment) shall be collected prior to the execution of the special contract.
(3) Concerning claims the payment of which is to be made in installments, if a claims management officer enters into a special contract in order to extend the payment period, he/she may, if necessary, also extend, pursuant to Presidential Decree, the period for payment of the amount of claims to be paid off after the said payment period has elapsed.
[This Article Wholly Amended by Act No. 10571, Apr. 8, 2011]
 Article 28 (Extension of Period of Performance)
(1) When a claims management officer intends to extend the period of performance under Article 27, the extension period shall not exceed five years from the period of performance.
(2) In the case of paragraph (1), the amount of claims concerned may, if necessary, be paid in installments within the extended period.
[This Article Wholly Amended by Act No. 10571, Apr. 8, 2011]
 Article 29 (Measures concerning Special Contract for Extension of Time for Payment)
(1) When a claims management officer makes a special contract for the extension of time for payment of claims, he/she shall require the debtor to furnish collateral pursuant to Presidential Decree, and he/she shall give interest on the claims: Provided, That a debtor prescribed under Presidential Decree may be exempted from the furnishment of the collateral or the payment of the interest.
(2) When a claims management officer enters into a special contract for the extension of time for the payment of claims which does not have an executive title, he/she shall take measures to acquire an executive title except in circumstances prescribed by Presidential Decree. <Amended by Act No. 6627, Jan. 26, 2002>
(3) When a claims management officer makes a special contract for the extension of time for payment of claims under Article 27, he/she shall attach conditions prescribed by Presidential Decree.
[This Article Wholly Amended by Act No. 10571, Apr. 8, 2011]
 Article 30 (Settlement in Lieu of Special Contract for Extension of Time for Payment)
The head of each central government agency, when deemed appropriate, shall request the Minister of Justice to initiate settlement procedures under Article 385 of the Civil Procedure Act in lieu of a special contract for the extension of time for payment.
[This Article Wholly Amended by Act No. 10571, Apr. 8, 2011]
 Article 31 (Release)
(1) In relation to claims under a special contract for the extension of time for payment (including where the period of payment is extended due to the settlement under Article 30, and where an equivalent measure is taken under the provisions of other Acts), when a debtor is unable to repay his/her debt even though ten years have passed after the initial payment period (where a special contract for the extension of payment is made after the expiration of the initial payment period, the initial period commences from the date when the first special contract is made) and there is no possibility for the debtor to discharge the debt, a claims management officer may release the debtor from the relevant debt (including any arrearage and interest accruing therefrom; hereafter the same in this Article shall apply) with the permission of the head of the central government agency to which he belongs.
(2) Paragraph (1) shall apply mutatis mutandis to a special contract made under Article 27 (1) 5. In such cases, it shall be conditional on the debtor's loan to a third party being exempted.
(3) Notwithstanding paragraph (1), in the event that the recovery of claims from any debtor nation or international organization is deemed difficult in light of the economic situation of such debtor nation or international organization as well as economic cooperation and international relations therewith, the head of a central government agency concerned may forgive, in whole or in part, the debts in arrears after consulting with the Minister of Strategy and Finance. In such cases, the head of the central government agency concerned shall obtain the approval of the President after deliberation by the State Council.
(4) If the Government intends to forgive, in whole or in part, any claims in accordance with paragraph (3), it shall refer such plan to the National Assembly for resolution: Provided, That this shall not apply to the forgiveness of any claims that requires an agreement among not less than two creditor nations, whose passage in the National Assembly is deemed unlikely. In such cases, the Government shall, without delay, make a report on the results of claims forgiveness.
(5) The head of each central government agency may, if it forgives part of any claims in accordance with paragraph (3), extend the term of its forgiveness, notwithstanding Articles 27 through 29.
[This Article Wholly Amended by Act No. 10571, Apr. 8, 2011]
 Article 32 (Special Provisions concerning Arrears)
(1) A claims management officer may exempt a debtor from the payment of arrears when the amount of claims (excluding claims with an interest or claims under the provisions of other Acts and ordinances) undischarged within the period for the performance of payment does not exceed ten thousand won.
(2) In relation to tuition fees for a national school or other claims prescribed by the Presidential Decree, if the whole principal sum is discharged, the payment of all or part of arrears which have been accrued until that time may be exempted.
[This Article Wholly Amended by Act No. 10571, Apr. 8, 2011]
CHAPTER V SUPPLEMENTARY PROVISIONS
 Article 33 (Provisions for Contract on Claims)
(1) When a person who, under the provisions of statutes, is involved in a contract or an act which creates claims (hereinafter referred to as "public official in charge of making a contract") prescribes the particulars of claims, he/she may not make provisions concerning reduction of the claims or exemption therefrom or extension of the deadline for performance, unless otherwise provided in other statutes.
(2) When a public official in charge of contracts concludes a contract that creates claims, he/she shall stipulate the provisions of the contract, as prescribed by Presidential Decree.
[This Article Wholly Amended by Act No. 10571, Apr. 8, 2011]
 Articles 34 and 35 Deleted. <by Act No. 3628, Dec. 31, 1982>
 Article 36 (Reporting on Present Amount of Claims)
The head of each central government agency shall prepare a report on the present amount of claims as of the end of each financial year, as prescribed by Presidential Decree, and submit it to the Minister of Strategy and Finance by the end of February of the following year.
[This Article Wholly Amended by Act No. 10571, Apr. 8, 2011]
 Article 37 (Statement of Total Value of Present Amount of Claims)
(1) The Minister of Strategy and Finance shall, on the basis of the report referred to in Article 36, prepare a statement of the total value of the present amount of claims.
(2) The Minister of Strategy and Finance shall submit the statement of the total value of the present amount of claims referred to in paragraph (1), together with the report referred to in Article 36, to the Board of Audit and Inspection by April 10 of the following year for inspection by the Board of Audit and Inspection.
(3) The government shall make a report to the National Assembly by May 31 of the following year on the statement of the total value of the present amount of claims which has undergone inspection by the Board of Audit and Inspection under paragraph (2), together with the inspection report prepared by the Board of Audit and Inspection.
[This Article Wholly Amended by Act No. 10571, Apr. 8, 2011]
 Article 38 (Payment of Monetary Rewards)
(1) The head of a central government agency may pay a monetary reward not exceeding 100 million won to a person who reports a delinquent debtor’s hidden property: Provided, That no monetary reward shall be paid where the amount collected following a report on hidden property is less than the amount prescribed by Presidential Decree or where a public official files such a report in connection with his/her duties.
(2) The hidden property referred to in paragraph (1) means cash, bank deposits, stocks, and other tangible or intangible assets with asset value: Provided, That the following assets shall be excluded:
1. An asset subject to a lawsuit seeking the revocation of a fraudulent act under Article 22;
2. An asset against which a claims management officer has commenced investigations or proceedings seeking compulsory performance under any subparagraph of Article 15 (including the disposition on default, in cases of debts collected in the same manner as national taxes or delinquent national taxes are collected), knowing that the asset is hidden;
3. Other assets prescribed by Presidential Decree in which case it is unnecessary to accept a report on a delinquent debtor’s hidden property.
(3) A report on hidden property under paragraph (1) shall be made in a document in which the name and address of the reporting person shall be stated with his/her signature or seal affixed thereon and shall be accompanied by objectively verifiable evidentiary documents, etc.
(4) No public official in charge of affairs related to the payment of monetary rewards under paragraph (1) shall use the identity of a reporting person or of a person providing data or any other fact related to the report or information for any purpose other than the official purposes or shall divulge such information to any other person.
(5) Criteria and methods for the payment of monetary rewards under paragraph (1) and the method of reporting under paragraph (3), and other matters shall be prescribed by Presidential Decree.
[This Article Newly Inserted by Act No. 12029, Aug. 13, 2013]
 Article 39 Deleted. <by Act No. 10571, Apr. 8, 2011>
ADDENDA
(1) (Enforcement date) This Act shall enter into force on January 1,1971.
(2) (Period for Applying Provisions for the Report on Present Amount of Claims) Articles 36 and 37 apply to the amount of claims present from the end of 1970.
(3) (Statutes Repealed) Act No. 899, Act on Liquidation of Whole Revenues Excluding Taxes shall be repealed by the enforcement of this Act.
(4) (Transitional Measures) Periodical loan receivables or deferment loan receivables under the Act on Liquidation of Whole Revenues Excluding Taxes, or other claims incurred before the enforcement of this Act, or claims reverted to the State are considered claims created by this Act.
(5) (Legal Presumption with respect to Date of Special Contract for Extension of Payment) In relation to claims which have been transferred to periodical loan receivables or deferment loan receivables under the Act on Liquidation of Whole Revenues Excluding Taxes, the date when the claims were transferred shall be deemed to be the date when a special contract for the extension of payment is made.
ADDENDUM <Act No. 3628, Dec. 31, 1982>
This Act shall enter into force on the date of its promulgation.
ADDENDA <Act No. 3947, Nov. 28, 1987>
Article 1 (Enforcement Date)
This Act shall enter into force six months after its promulgation.
Article 2 Omitted.
ADDENDA <Act No. 4408, Nov. 30, 1991>
Article 1 (Enforcement Date)
This Act shall enter into force on the date of its promulgation.
Articles 2 and 3 Omitted.
ADDENDUM <Act No. 5454, Dec. 13, 1997>
This Act shall enter into force on January 1, 1998. (Proviso Omitted.)
ADDENDA <Act No. 6626, Jan. 26, 2002>
Article 1 (Enforcement Date)
This Act shall enter into force on July 1, 2002.
Articles 2 through 7 Omitted.
ADDENDA <Act No. 6627, Jan. 26, 2002>
Article 1 (Enforcement Date)
This Act shall enter into force on July 1, 2002.
Articles 2 through 7 Omitted.
ADDENDA <Act No. 7029, Dec. 31, 2003>
(1) (Enforcement Date) This Act shall enter into force on the date of its promulgation.
(2) (Transitional Measure) The debt forgiveness that is granted by the Government in accordance with an agreement that has been reached between the Government and the Federal Government of Russia as a result of restructuring of debts Russia owe after receiving the Economic Development Cooperation Fund shall be deemed the debt forgiveness provided in the amended provisions of Article 31 (3) and (4).
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. 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.
ADDENDUM <Act No. 10571, Apr. 8, 2011>
This Act shall enter into force on the date of its promulgation.
ADDENDA <Act No. 12029, Aug. 13, 2013>
Article 1 (Enforcement Date)
This Act shall enter into force six months after the date of its promulgation.
Article 2 (Applicability concerning Payment of Monetary Rewards)
The amended provisions of Article 38 shall apply, beginning with the hidden property of a delinquent debtor first reported after this Act enters into force.