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ECONOMIC DEVELOPMENT COOPERATION FUND ACT

Act No. 3863, Dec. 26, 1986

Amended by Act No. 3982, Dec. 4, 1987

Act No. 4675, Dec. 31, 1993

Act No. 5170, Dec. 12, 1996

Act No. 5454, Dec. 13, 1997

Act No. 5529, Feb. 28, 1998

Act No. 6075, Dec. 31, 1999

Act No. 6836, Dec. 30, 2002

Act No. 8135, Dec. 30, 2006

Act No. 8852, Feb. 29, 2008

Act No. 10303, May 17, 2010

Act No. 10622, May 2, 2011

Act No. 13816, Jan. 27, 2016

 Article 1 (Purpose)
The purpose of this Act is to establish a Foreign Economic Cooperation Fund and provide for matters necessary for its operation and management in order to support industrial development and economic stabilization of countries on their way to development and to promote economic cooperation or interchange between the Republic of Korea and such countries.
[This Article Wholly Amended by Act No. 10622, May 2, 2011]
 Article 2 (Definitions)
The definitions of terms used in this Act shall be as follows:
1. The term "developing country" means any country in the process of economic development and designated as such by the Minister of Strategy and Finance in consideration of its economic development stage, including the level of per capita income and industrial structure, after due deliberation by the Fund Management Council as referred to in Article 10;
2. The term "bank" means any bank under the Banking Act or any other relevant Acts.
[This Article Wholly Amended by Act No. 10622, May 2, 2011]
 Article 3 (Establishment of Fund)
The Government hereby establishes a Foreign Economic Cooperation Fund (hereinafter referred to as the "Fund") to secure and provide funds for economic cooperation with other countries.
[This Article Wholly Amended by Act No. 10622, May 2, 2011]
 Article 4 (Financial Resources of Fund)
The Fund shall be raised from the following financial resources:
1. Contributions by the Government;
2. Contributions by public institutions under the Act on the Management of Public Institutions prescribed by Presidential Decree, or economic organizations;
3. Contributions from other government funds;
4. Long-term borrowings pursuant to Article 5;
5. Deposits from the Public Capital Management Fund as referred to in the Public Capital Management Fund Act;
6. Profits from the operation of the Fund.
[This Article Wholly Amended by Act No. 10622, May 2, 2011]
 Article 5 (Long-Term Borrowings)
The Minister of Strategy and Finance may, when it is deemed necessary, incur long-term debts from other funds, banks, foreign governments, foreign financial institutions, international financial organizations, etc. at the expense of the Fund, in order to raise funds for the Fund.
[This Article Wholly Amended by Act No. 10622, May 2, 2011]
 Article 6 Deleted. <by Act No. 4675, Dec. 31, 1993>
 Article 7 (Use of Fund)
The Fund shall be operated for any of the following purposes: <Amended by Act No. 13816, Jan. 27, 2016>
1. Extending loans (which include discounts on bills, guaranteeing obligations and underwriting securities, and are hereinafter referred to as "loans, etc.") or investments for the purpose of conducting projects deemed particularly important to contribute to the industrial development of developing countries and to promote economic exchange between the Republic of Korea and such countries (hereinafter referred to as "cooperation projects");
2. Extending loans, etc. required to conduct investigations for the preparation of the cooperation projects or a trial run of such projects;
3. Extending loans, etc. required for the developing countries' importation of commodities deemed particularly important to stabilize the national economies of such countries from the Republic of Korea;
4. Extending loans, etc. for projects conducive to the industrial development of developing countries and determined as such by Presidential Decree;
5. Compensating for any loss incurred from loans extended by the Export-Import Bank of Korea under the Export-Import Bank of Korea Act (hereinafter referred to as “Export-Import Bank of Korea”) to developing countries for conducting the duties under Article 18 (5) of the same Act, where the interest rates on such loans are lower than their associated costs;
6. Repaying the principal of and interest on deposits received from the Public Capital Management Fund under the Public Capital Management Fund Act and borrowings;
7. Paying expenses to raise, operate and manage the Fund.
[This Article Wholly Amended by Act No. 10622, May 2, 2011]
 Article 8 (Requirement for Assistance from Fund)
Assistance from the Fund as set forth in subparagraphs 1 through 4 of Article 7 shall be made available only in cases where it is deemed difficult to obtain financial support from the Export-Import Bank of Korea or other banks under ordinary terms and conditions. <Amended by Act No. 13816, Jan. 27, 2016>
[This Article Wholly Amended by Act No. 10622, May 2, 2011]
 Article 9 (Operation and Management of Fund)
(1) The Minister of Strategy and Finance shall operate and manage the Fund.
(2) The Minister of Strategy and Finance may entrust the Export-Import Bank of Korea with affairs concerning the operation and management of the Fund, as prescribed by Presidential Decree.
[This Article Wholly Amended by Act No. 10622, May 2, 2011]
 Article 10 (Fund Management Council)
(1) There is hereby established a Fund Management Council within the Ministry of Strategy and Finance to deliberate on the following matters concerning the operation and management of the Fund:
1. Basic policies concerning the operation and management of the Fund;
2. Fund operational plans;
3. Settlement reports;
4. Other matters deemed necessary by the Minister of Strategy and Finance.
(2) The composition and operation of the Council and other necessary matters shall be prescribed by Presidential Decree.
[This Article Wholly Amended by Act No. 10622, May 2, 2011]
 Article 11 (Temporary Borrowings)
(1) The Minister of Strategy and Finance may, when it is deemed necessary for the operation of the Fund, borrow funds temporarily from the Bank of Korea under the Bank of Korea Act or other banks, at the expense of the Fund.
(2) The temporary borrowings pursuant to paragraph (1) shall be repaid within the relevant fiscal year.
[This Article Wholly Amended by Act No. 10622, May 2, 2011]
 Article 12 (Use of Surplus Funds)
When there are any surplus funds in the Fund, the Minister of Strategy and Finance may use them as follows:
1. Purchase of national bonds, public bonds and any other securities;
2. Deposit at the Public Capital Management Fund under the Public Capital Management Fund Act;
3. Deposit at banks or short-term lending;
4. Other methods as prescribed in Presidential Decree.
[This Article Wholly Amended by Act No. 10622, May 2, 2011]
 Article 13 (Accounting Agency of Fund)
(1) The Minister of Strategy and Finance shall appoint the Fund revenue collection officer, the Fund financial officer, the Fund disbursing officer and the Fund accounting official from among public officials under his/her supervision to conduct business related to the receipt and disbursement of the Fund.
(2) Where business concerning the operation and management of the Fund is entrusted to the Export-Import Bank of Korea pursuant to Article 9 (2), the Minister of Strategy and Finance may appoint the director taking charge of the Fund revenue and the director taking charge of the causative acts of the Fund from among directors of the Export-Import Bank of Korea, and the Fund disbursing employee and the Fund accounting employee from among its employees. In such cases, the director taking charge of the Fund revenue, the director taking charge of the causative acts of the Fund expenditure, the Fund disbursing employee and the Fund accounting employee shall conduct the duties of the Fund revenue collection officer, the Fund financial officer, the Fund disbursing officer, and the Fund accounting official, respectively.
[This Article Wholly Amended by Act No. 10622, May 2, 2011]
 Article 14 (Disposition of Profits and Losses)
(1) When a profit accrues as a result of the settlement of accounts of the Fund, the full amount of such profit shall be placed in reserve.
(2) When a loss is incurred as a result of the settlement of accounts of the Fund, such loss shall be made up by the reserve as prescribed in paragraph (1), and if the reserve is insufficient, the Government may make up such insufficiency within budgetary limits.
[This Article Wholly Amended by Act No. 10622, May 2, 2011]
 Article 15 (Supervision and Orders)
Where affairs concerning the operation and management of the Fund is entrusted pursuant to Article 9 (2), the Minister of Strategy and Finance may supervise the entrusted business and issue orders necessary therefor.
[This Article Wholly Amended by Act No. 10622, May 2, 2011]
ADDENDUM
This Act shall enter into force three months after the date of its promulgation.
ADDENDA <Act No. 3982, Dec. 4, 1987>
Article 1 (Enforcement Date)
This Act shall enter into force on January 1, 1988.
Articles 2 through 4 Omitted.
ADDENDA <Act No. 4675, Dec. 31, 1993>
Article 1 (Enforcement Date)
This Act shall enter into force on January 1, 1994.
Articles 2 through 8 Omitted.
ADDENDA <Act No. 5170, Dec. 12, 1996>
Article 1 (Enforcement Date)
This Act shall enter into force on January 1, 1997.
Articles 2 through 6 Omitted.
ADDENDUM <Act No. 5454, Dec. 13, 1997>
This Act shall enter into force on January 1, 1998. (Proviso Omitted.)
ADDENDA <Act No. 5529, Feb. 28, 1998>
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. 6075, Dec. 31, 1999>
Article 1 (Enforcement Date)
This Act shall enter into force on April 1, 2000.
Articles 2 through 4 Omitted.
ADDENDA <Act No. 6836, Dec. 30, 2002>
Article 1 (Enforcement Date)
This Act shall enter into force on January 1, 2003.
Articles 2 through 7 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. 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. 10622, May 2, 2011>
This Act shall enter into force on the date of its promulgation.
ADDENDUM <Act No. 13816, Jan. 27, 2016>
This Act shall enter into force on March 1, 2016.