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ACT ON REAL NAME FINANCIAL TRANSACTIONS AND CONFIDENTIALITY

Act No. 5493, Dec. 31, 1997

Amended by Act No. 5552, Sep. 16, 1998

Act No. 6062, Dec. 28, 1999

Act No. 6051, Dec. 28, 1999

Act No. 6429, Mar. 28, 2001

Act No. 6682, Mar. 30, 2002

Act No. 7115, Jan. 29, 2004

Act No. 7189, Mar. 12, 2004

Act No. 7886, Mar. 24, 2006

Act No. 8635, Aug. 3, 2007

Act No. 8863, Feb. 29, 2008

Act No. 9324, Dec. 31, 2008

Act No. 10303, May 17, 2010

Act No. 10522, Mar. 31, 2011

Act No. 10854, Jul. 14, 2011

Act No. 11845, May 28, 2013

Act No. 12098, Aug. 13, 2013

Act No. 12711, May 28, 2014

Act No. 14242, May 29, 2016

 Article 1 (Purpose)
The purpose of this Act is to realize economic justice and to facilitate the sound development of national economy by implementing real name financial transactions and ensuring the confidentiality thereof through normalized financial transactions.
[This Article Wholly Amended by Act No. 10854, Jul. 14, 2011]
 Article 2 (Definitions)
The definitions of terms used in this Act shall be as follows: <Amended by Act No. 10522, Mar. 31, 2011; Act No. 14242, May 29, 2016>
1. The term "financial companies, etc." means:
(a) Banks under the Banking Act;
(b) The Industrial Bank of Korea under the Industrial Bank of Korea Act;
(c) The Korea Development Bank under the Korea Development Bank Act;
(d) The Export-Import Bank of Korea under the Export-Import Bank of Korea Act;
(e) The Bank of Korea under the Bank of Korea Act;
(f) An investment trader, investment broker, collective investment business entity, trust business entity, financial securities company, merchant bank, and a transfer agency company under the Financial Investment Services and Capital Markets Act;
(g) Mutual savings banks and the Federation of Savings Banks under the Mutual Savings Banks Act;
(h) Cooperatives and the National Federation under the Agricultural Cooperatives Act;
(i) Cooperatives, the National Federation, and Suhyup Bank under the Fisheries Cooperatives Act;
(j) Credit unions and the National Credit Union Federation under the Credit Unions Act;
(k) Community credit cooperatives and the Korean Federation under the Community Credit Cooperatives Act;
(l) Insurance companies under the Insurance Business Act;
(m) Communications agencies under the Postal Savings and Insurance Act;
(n) Other institutions as determined by Presidential Decree;
2. The term "financial assets" means cash and securities, such as demand deposits, installment deposits, installments, fraternity dues, depositary receipts, investments, trust property, stocks, bonds, beneficiary certificates, contribution quotas, bills, checks and debt certificates that are dealt with by financial companies, etc., and other similar items as determined by Ordinance of the Prime Minister;
3. The term "financial transactions" means transactions in which financial companies, etc. receive, sell and purchase, repurchase, mediate, discount, issue, redeem, return, are entrusted with, register, or exchange financial assets, or in which financial companies, etc. pay interest, money discounted, or dividends of those financial assets or carry out such payment as an agent, or other transactions involving financial assets as determined by Ordinance of the Prime Minister;
4. The term "real name" means a name entered in a resident registration card, a name entered in a business registration certificate, or any other name as determined by Presidential Decree.
[This Article Wholly Amended by Act No. 10854, Jul. 14, 2011]
 Article 3 (Financial Transactions under Real Name)
(1) Financial companies, etc. shall perform financial transactions with customers under their real names.
(2) Notwithstanding the provisions of paragraph (1), financial companies, etc. may decide not to verify real names of the customers concerned in case of any transactions falling under any of the following subparagraphs:
1. Continuous transactions by accounts in which the real names of the customers have been verified, and transactions such as receipt of public impositions and transfers of not more than one million won, as determined by Presidential Decree;
2. Transactions such as the purchase of foreign currency, receipt of deposits in foreign currency or transfers of bonds in foreign currency, during the period as determined by Presidential Decree;
3. Transactions of bonds that fall under any of the following (hereinafter referred to as "specific bonds") and are issued under the issue terms such as the period of issue, interest rate, and maturity as determined by the Minister of Finance and Economy between the date (December 31, 1997) of entry into force of the Act on Real Name Financial Transactions and Confidentiality, Act No. 5493, and December 31, 1998:
(a) Bonds issued for employment stabilization, improvement of workers' vocational abilities and livelihood stabilization as determined by Presidential Decree;
(b) Bonds in foreign currency that are foreign exchange equalization fund bonds referred to in Article 13 of the Foreign Exchange Transactions Act;
(c) Bonds issued for restructuring assistance to small and medium businesses, as determined by Presidential Decree;
(d) Corporate bonds issued by a securities finance company under Article 329 of the Financial Investment Services and Capital Markets Act;
(e) Other bonds issued for the stabilization of people's livelihood and the sound development of the national economy, as determined by Presidential Decree.
(3) No person shall perform financial transactions under the real name of another person for the purpose of concealing illegitimate property under subparagraph 3 of Article 2 of the Act on Reporting and Using Specified Financial Transaction Information, money laundering under subparagraph 4 of the aforementioned Article or financing of terrorism and evading compulsory execution under subparagraph 5 of the aforesaid Article, and other evasions of the law. <Newly Inserted by Act No. 12711, May 28, 2014>
(4) No person that works at a financial company, etc. shall render services for or arrange financial transactions under paragraph (3). <Newly Inserted by Act No. 12711, May 28, 2014>
(5) Financial assets held in the account that is identified under the real name of the account owner pursuant to paragraph (1) or in the account that is identified under the real name of the owner by means similar thereto shall be presumed to be owned by the account owner. <Newly Inserted by Act No. 12711, May 28, 2014>
(6) Any financial company, etc. shall explain the main content referred to in paragraph (3) to customers according to the method prescribed by the Financial Services Commission. <Newly Inserted by Act No. 12711, May 28, 2014>
(7) Methods and procedures for identifying real name transactions, entrustment of the task of identifying real name transactions and other necessary matters shall be prescribed by Presidential Decree. <Amended by Act No. 12711, May 28, 2014>
[This Article Wholly Amended by Act No. 10854, Jul. 14, 2011]
 Article 4 (Confidentiality of Financial Transactions)
(1) No person working for a financial company, etc. shall provide or reveal information or data concerning the contents of financial transactions (hereinafter referred to as "transaction information, etc.") to other persons unless he/she receives a request or consent in writing from the holder of a title deed (in case of trust, meaning a truster or beneficiary), and no person may request a person working for a financial company, etc. to provide transaction information, etc.: Provided, That the same shall not apply in any of the following cases in which the said transaction information, etc. is requested or provided to the minimum limit necessary for the purpose of use thereof: <Amended by Act No. 11845, May 28, 2013>
1. Provision of transaction information, etc. by a court order to produce evidence, or by a warrant issued by a judge;
2. Provision of tax data that must be submitted under tax-related Acts, and provision of transaction information, etc. necessary for the heads of the competent agencies to confirm inherited or donated property, confirm evidence to show a suspicion of tax evasion, inquire into the property of taxpayers in arrears, or make inquiries and investigation under tax-related Acts due to the cause falling under any subparagraph of Article 14 (1) of the National Tax Collection Act;
3. Provision of transaction information, etc. by the Governor of the Financial Supervisory Service (referring to the Governor of the Financial Supervisory Service under Article 24 of the Act on the Establishment, etc. of Financial Services Commission; hereinafter the same shall apply) and the President of the Korea Deposit Insurance Corporation (referring to the President of the Korea Deposit Insurance Corporation under Article 3 of the Depositor Protection Act; hereinafter the same shall apply), as necessary for the legislative investigation of state affairs under the Act on the Inspection and Investigation of State Administration, through a resolution by the relevant investigation committee;
4. Provision of transaction information, etc. necessary for the Financial Services Commission (referring to the Securities Futures Commission in the case of investigation of unfair trades in the securities or derivatives markets; hereafter the same shall apply in this Article), the Governor of the Financial Supervisory Service and the President of the Korea Deposit Insurance Corporation to supervise and inspect financial companies, etc., where it falls under any of the following and where it is to be presented to the relevant investigation committee pursuant to subparagraph 3:
(a) Where it is necessary to investigate inside transactions and unfair transaction practices;
(b) Where it is necessary to detect financial misconduct such as embezzlement of deposits from customers or cash withdrawal after receiving payments without sources;
(c) Where it is necessary to investigate unsound financial transaction practices such as receipt of compulsory deposits and pre-issuance of cashier's checks;
(d) Where it is necessary to investigate the violation of Acts and subordinate statutes such as a violation of real name financial transactions, off-book transactions, loans for contributors, or excessive loans to one person;
(e) Where it is necessary for the deposit insurance services under the Depositor Protection Act and to carry out the functions of making a list of depositors by the President of the Korea Deposit Insurance Corporation under the Act on the Structural Improvement of the Financial Industry;
5. Provision of transaction information, etc. necessary for business inside any financial company, etc. or between financial companies, etc.;
6. Provision of transaction information, etc. that is necessary for the Financial Services Commission and the Governor of the Financial Supervisory Service to cooperate with foreign financial supervisory institutions (including international financial supervisory bodies; hereinafter the same shall apply), which perform the work equivalent to the Commission's or Service's work, in facilitating their work cooperation on the matters falling under each of the following:
(a) The supervision and inspection of financial companies, etc. and the overseas branches, local corporations, etc. of the financial companies, etc.;
(b) The cooperation in facilitating the exchange, inspection, etc. of information provided for in Article 437 of the Financial Investment Services and Capital Markets Act;
7. Provision of transaction information, etc. that is held by investment traders and investment brokers and is needed by the Korea Exchange that is established pursuant to the Financial Investment Services and Capital Markets Act (hereinafter referred to as the "Korea Exchange") in the case falling under each of the following:
(a) Where the investigation of any abnormal trading or the supervision of members is performed pursuant to Article 404 of the Financial Investment Services and Capital Markets Act;
(b) Where it is necessary to cooperate with any foreign exchange, etc. that performs the work equivalent to the work of the Korea Exchange in connection with the investigation of any abnormal trading or the supervision of members: Provided, That the same shall apply only in cases where prior approval therefor is obtained from the Financial Services Commission;
8. Other provision of transaction information, etc. under Acts that must be disclosed to many and unspecified persons under the relevant Acts.
(2) A person who requests transaction information, etc. pursuant to paragraph (1) 1 through 4 or 6 through 8 shall do so at a specified business place of a financial company, etc. by means of the standard form as stipulated by the Financial Services Commission containing information provided in the following subparagraphs: Provided, That in the event that anyone intends to request the provision of transaction information, etc. under paragraph (1) 1 or transaction information, etc. under paragraph (1) 2, both of which are concerned with a person who is recognized to be suspected of having evaded the income tax or the corporate tax, which is corroborated by indisputable data on his/her holding period of real estate (including any right to such real estate; hereafter in this paragraph the same shall apply), the number of his/her real estate, the scale of his/her transaction of real estate, his/her ways of executing real estate transaction, etc. in connection with the real estate transaction prescribed by Presidential Decree, and are necessary to confirm the fact of his/her evading taxes (including any person who has acted as an agent or a broker for the transaction of the relevant real estate), or to request the provision of transaction information, etc. that is necessary to inquire about the property of any defaulter whose arrearage amounts to not less than 10 million won as prescribed by Presidential Decree, he/she may request the department that keeps and manages such transaction information, etc. to provide such information, etc.:
1. Personal information on the holder of a title deed;
2. Trade period subject to a request;
3. Legal ground for a request;
4. Purpose of the use of information;
5. Contents of transaction information, etc. requested;
6. Personal information, such as the names, duties, etc., of the person in charge and the responsible person in the institution to be requested.
(3) Where persons working for financial companies, etc. receive a request for the provision of transaction information, etc. in violation of paragraph (1) or (2), they shall refuse it.
(4) No person who comes to know transaction information, etc. pursuant to each subparagraph of paragraph (1) [including Article 5 (1) 1 through 4 of the former Real Name Financial Transactions Act (referring to the Act that had been in force before it was repealed by the Presidential Financial and Economic Emergency Order No. 16) and each subparagraph of Article 4 (1) of the Presidential Financial and Economic Emergency Order on Real Name Financial Transactions and Confidentiality (referring to the Order that had been in force before it was repealed by Act No. 5493; hereinafter the same shall apply)] shall provide or disclose such information, etc. to other persons, or use such information, etc. for other purposes than the original purpose, and no person shall request a person who comes to know such information, etc. to provide such information, etc.: Provided, That the same shall not apply in cases where the Financial Services Commission or the Governor of the Financial Supervisory Service provides any foreign financial supervisory institution with the transaction information, etc. that it or he/she has learned pursuant to paragraph (1) 4 and 6 or the Korea Exchange provides any foreign exchange, etc. with any transaction information, etc. pursuant to paragraph (1) 7. <Amended by Act No. 11845, May 28, 2013>
(5) Persons who have any transaction information, etc. provided or disclosed in violation of paragraph (1) or (4) (including those who have obtained such transaction information, etc. again from them) shall not provide or disclose such information, etc. to others where they come to know such violation.
(6) Where provision of transaction information, etc. is requested pursuant to any of the following Acts, it shall be based upon the standard form as stipulated by the Financial Services Commission under paragraph (2), notwithstanding the provisions of the relevant Acts:
[This Article Wholly Amended by Act No. 10854, Jul. 14, 2011]
 Article 4-2 (Notice of Fact of Providing Transaction Information, etc.)
(1) Where a financial company, etc. has provided transaction information, etc. with the written consent of the holder of a title deed, or has provided it pursuant to Article 4 (1) 1, 2 (excluding taxable data, etc. that shall be submitted under the tax-related Acts), 3 and 8, the financial company, etc. shall notify in writing the holder of the title deed of the major contents, purpose of use, person provided, date of provision, etc., within 10 days from the date of such provision (where such notice is deferred under paragraph (2) or (3), the date on which the deferred period of notice expires).
(2) Where a financial company, etc. receives a written request for a deferment of notice from a requester for transaction information, etc. subject to notice on the grounds falling under any of the following subparagraphs, the financial company, etc. shall defer such notice for the requested deferment period (6 months where the deferment of notice has been requested for 6 months or longer on the grounds of subparagraph 2 or 3), notwithstanding the provisions of paragraph (1):
1. Where the relevant notice carries a matter of concern about threatening the safety of human life or body;
2. Where the relevant notice carries a matter of obvious concern about obstructing the progress of a fair judicial process such as destruction of evidence or threat to witness;
3. Where the relevant notice carries a matter of obvious concern about obstructing, or delaying to excess, the progress of administrative procedures such as an interrogation or investigation.
(3) Where a requester for transaction information, etc. presents that the reason falling under any subparagraph of paragraph (2) is continued and repeatedly requests in writing a deferment of notice, a financial company, etc. shall defer such notice for the requested deferment period within the limit of 3 months for each time, limited to only twice from the date of such request (excluding the case of paragraph (2) 1): Provided, That where a requester for transaction information, etc. under Article 4 (1) 2 (excluding taxable data, etc. that shall be submitted under the tax-related Acts) requests a deferment of notice, it shall defer such notice for the requested deferment period within the limit of 6 months from the date of request each time it is requested.
(4) Expenses spent by any financial company, etc. to notify the title holder of the fact of provision of transaction information, etc. under paragraph (1) shall be borne by anyone who has requested provision of such transaction information, etc. pursuant to Article 4 (1), as prescribed by Presidential Decree.
(5) Where provision of transaction information, etc. is requested pursuant to any of the following Acts, paragraphs (1) through (4) shall be applicable:
[This Article Wholly Amended by Act No. 10854, Jul. 14, 2011]
 Article 4-3 (Record and Management of Details concerning Provision of Transaction Information, etc.)
(1) A financial company, etc. shall record and manage, pursuant to the standard form as stipulated by the Financial Services Commission, information containing each of the following subparagraphs, in cases where it has provided transaction information, etc. to other persons than the holder of a title deed with his/her written consent, has received a request for provision of transaction information, etc. from other persons than the holder of a title deed pursuant to Article 4 (1) 1, 2 (excluding taxable data, etc. that shall be submitted under the tax-related Acts), 3, 4, 6, 7 or 8 or has provided transaction information, etc. to other persons than the holder of a title deed: <Amended by Act No. 12098, Aug. 13, 2013>
1. Personal information on a requester (person in charge and responsible person), details and date of such request;
2. Personal information on a provider (person in charge and responsible person) and the date of provision;
3. Details of transaction information, etc. provided;
4. Legal ground for provision;
5. Date on which the financial company, etc. has notified the holder of the title deed;
6. Where notice is deferred, the date of and grounds for deferring the notice, and the period and number of such deferment.
(2) Records under paragraph (1) shall be preserved for 5 years from the date of provision of transaction information, etc. (where such provision has been refused, the date of receiving a request for such provision).
(3) Where provision of transaction information, etc. is requested pursuant to any of the following Acts, paragraphs (1) and (2) shall be applicable:
[This Article Wholly Amended by Act No. 10854, Jul. 14, 2011]
 Article 4-4 (Duties of Financial Services Commission)
The Financial Services Commission shall collect the statistical data on demand for and provision of transaction information, etc. under this Act or other Acts, and at the request of the National Assembly, submit a report thereon to the National Assembly. <Amended by Act No. 12098, Aug. 13, 2013>
[This Article Wholly Amended by Act No. 10854, Jul. 14, 2011]
 Article 5 (Differential Taxation on Income Accruing from Non-Real Name Assets)
With respect to the income from interest and dividends accruing from financial assets transacted under non-real names, the withholding tax rate for income tax shall be 90/100 [20/100 (15/100 on and after January 1, 2001) for the income from interest arising from specific bonds], and such income shall not be included in the calculation of tax base for global income referred to in Article 14 (2) of the Income Tax Act.
[This Article Wholly Amended by Act No. 10854, Jul. 14, 2011]
 Article 5-2 (Administrative Measures)
(1) Where the Financial Services Commission discovers that a financial company, etc. violates this Act, or orders or instructions under this Act, it may take measures falling under any of the followings or require the head of a related administrative agency having the authority to impose administrative sanctions on the business of the relevant financial company, etc. to take such measures:
1. Orders to correct or stop an offense;
2. Orders to officially announce or post a notice of the fact that the financial company, etc. has been subject to measures due to an offense;
3. Warning to an organization;
4. Caution to an organization.
(2) Where a financial company, etc. falls under any of the followings, the Financial Services Commission may require such financial company, etc. to suspend all or any part of its business or require the head of a related administrative agency having the authority to impose administrative sanctions on the business of the relevant financial company, etc. to take such measures:
1. Where it fails to comply with orders under paragraph (1) 1 and 2;
2. Where it receives a warning to an organization under paragraph (1) 3 at least three time;
3. Where it is likely to undermine considerably healthy financial transactional order or interest of customers because it violates this Act or orders or instructions under this Act.
(3) Where the Financial Services Commission discovers that an executive or employee of a financial company, etc. has violated this Act or orders or instructions under this Act, it may require the head of the relevant financial company, etc. to take measures in accordance with the following classification:
1. Executive: Measures falling under any of the followings:
(a) Release from office;
(b) Suspension from office within six months;
(c) Reprimand and warning;
(d) Cautionary warning;
(e) caution.
2. Employee: Measures falling under any of the followings:
(a) Dismissal from office;
(b) Suspension from office within six months;
(c) Reduction of salary;
(d) Reprimand;
(e) Caution.
(4) The head of a related administrative agency who receives a request under paragraph (1) or (2) shall comply with such request unless there is justifiable ground.
[This Article Newly Inserted by Act No. 12711, May 28, 2014]
 Article 6 (Penal Provisions)
(1) A person that violates the provisions of Article 3 (3) or (4), Article 4 (1) or (3) through (5) shall be punished by imprisonment for not more than five years or by a fine not exceeding 50 million won. <Amended by Act No. 12711, May 28, 2014>
(2) Penalty of imprisonment and fines pursuant to paragraph (1) may be concurrently imposed.
[This Article Wholly Amended by Act No. 10854, Jul. 14, 2011]
 Article 7 (Fines for Negligence)
(1) A fine for negligence not exceeding 30 million won shall be imposed on an executive or employee of a financial company, etc. who violates Article 3, 4-2 (1) and (5) (limited to cases where Article 4-2 (1) applies) or 4-3. <Amended by Act No. 12711, May 28, 2014>
(2) Fines for negligence pursuant to paragraph (1) shall be imposed and collected by the Financial Services Commission, as prescribed by Presidential Decree.
[This Article Wholly Amended by Act No. 10854, Jul. 14, 2011]
 Article 8 (Joint Penal Provisions)
If the representative of a legal entity, or an agent, an employee, or any other employed person of a legal entity or an individual commits an act of violation under Article 6 or 7 in connection with the business of the legal entity or the individual, not only shall such an actor be punished accordingly, but also the legal entity or the individual shall be punished by a fine or a fine for negligence under the same Article: Provided, That this shall not apply in cases where the legal entity or the individual has not neglected to supervise that business with due care in order to prevent the act of violation.
[This Article Wholly Amended by Act No. 10854, Jul. 14, 2011]
 Article 9 (Relationship to Other Acts)
(1) Where this Act conflicts with other Acts, this Act shall apply.
(2) Notwithstanding the provisions of paragraph (1), at the time the Presidential Financial and Economic Emergency Order on Real Name Financial Transactions and Confidentiality enters into force, Acts applied in preference to the said Presidential Financial and Economic Emergency Order shall apply in preference to this Act.
[This Article Wholly Amended by Act No. 10854, Jul. 14, 2011]
ADDENDA
Article 1 (Enforcement Date)
This Act shall enter into force on the date of its promulgation.
Article 2 (Repeal of Emergency Order)
The Presidential Financial and Economy Emergency Order on Real Name Financial Transactions and Guarantee of Secrecy (hereinafter referred to as the "Emergency Order") shall be hereby repealed.
Article 3 (General Transitional Measures)
Except as otherwise provided by this Act, the guarantee of secrecy in financial transactions, conversion of assumed or borrowed name for financial assets into real ones and taxation at the source of income from financial assets prior to the entry into force of this Act shall be governed by the previous Emergency Order.
Article 4 (Transitional Measures on Penal Provisions)
The application of penal provisions and fines for negligence to acts committed prior to the entry into force of this Act shall be governed by the previous Emergency Order.
Article 5 (Verification of Real Names for Existing Financial Assets)
(1) For holders of title deed for financial assets whose real names are not verified before the entry into force of this Act from among financial assets for which financial accounts have been opened prior to the entry into force of the previous Emergency Order (hereinafter referred to as "existing financial assets"), financial institutions shall verify whether any name is real when the first financial transactions are executed after the entry into force of this Act.
(2) Financial institutions shall not pay, redeem, refund or repurchase existing financial assets which are not verified pursuant to paragraph (1) or for which it is confirmed that they are not real names.
(3) The provisions of Articles 7 and 8 shall apply mutatis mutandis to cases in which the officers or employees of financial institutions violate the provisions of paragraph (1) or (2). In this case, the term "Article 3" of Article 7 (1) shall be deemed to read "Article 5 (1) or (2) of the Addenda".
Article 6 (Imposition of Charges on Those who have Converted into Real Names)
(1) Financial institutions shall collect withholding taxes as charges at the source of the amount calculated by applying 50/100 to the value of financial assets as of the date of entry into force of the previous Emergency Order and pay them to the Government by the 10th day of the following month in which they are collected, where customers with existing financial assets convert their names into real ones after the entry into force of this Act.
(2) Where it is deemed difficult for customers with existing financial assets to convert their names into real ones for any cause as determined by the Presidential Decree but where they convert their names into real ones within one month from the date on which such cause disappears, charges shall not be imposed notwithstanding the provisions of para graph (1).
(3) Where, in case of paragraph (1), charges collected or to be collected by financial institutions are not paid in full within the time limit, the Minister of Finance and Economy shall collect additional dues equiva lent to 10/100 of the charges, plus unpaid charges, from the financial institutions.
(4) The Minister of Finance and Economy may delegate the functions on the collection, payment, delinquent disposition and refund of charges and additional dues referred to in paragraphs (1) and (3) (hereinafter referred to as "collection") to the Commissioner of the National Tax Administration.
(5) The National Tax Collection Act, the Framework Act on National Taxes and the Income Tax Act shall apply mutatis mutandis with respect to the collection of charges and additional dues referred to in paragraphs (1) and (3). In this case, the term "national taxes" shall be deemed to read "charges".
Article 7 (Taxation at Source for Income Tax on Real Name-Converted Assets)
(1) For interest and dividend income derived from existing financial assets converted into real names after the entry into force of this Act, financial institutions shall collect withholding taxes at the source of the total amount of deficiencies in withholding taxes referred to in any of the following subparagraphs, and shall pay them to the Government by the 10th day of the following month:
1. Balance when the existing income tax amount collected at the source is deducted from the amount of withholding taxes at the source of income calculated by applying the withholding tax rate referred to in Article 5 for interest and dividend income derived after the entry into force of this Act;
2. Balance when the existing income tax amount collected at the source is deducted from the amount of withholding taxes at the source of income calculated by applying the withholding tax rate referred to in Article 9 of the previous Emergency Order for interest and dividend income derived before the entry into force of this Act from October 13, 1993; and
3. Amount of withholding taxes at the source of income tax calculated pursuant to Article 8 (1) of the previous Emergency Order for interest and dividend income derived until October 12, 1993.
(2) The amount of income tax collected at the source pursuant to paragraph (1) shall be within the limit of the value of financial assets concerned as of the date of conversion into real names.
(3) The provisions of Article 158 (1) of the Income Tax Act shall not apply where financial institutions tax at the source for income tax and pay it pursuant to paragraph (1).
Article 8 (Special Cases for Tax Investigations on Real Name-Converted Financial Assets)
(1) Notwithstanding tax Acts, investigations shall not be made into the source of funds for existing financial assets converted into real names after the entry into force of this Act, and obligations to pay taxes which arose prior to the entry into force of the previous Emergency Order based on the tax data for financial assets concerned shall not be imposed: Provided, That this shall not apply in any of the following subparagraphs:
1. Where the financial assets have been converted into the real name of a person of less than thirty years of age and the value exceeds thirty million won;
2. Where taxes are imposed based on the tax data other than the financial assets.
(2) Financial institutions shall notify the Commissioner of the National Tax Administration of the converted contents on the financial assets referred to in paragraph (1) 1 as determined by the Presidential Decree.
(3) The provisions of paragraph (1) shall also apply to financial assets which have been converted into real names and reported to the Commissioner of the National Tax Administration prior to the entry into force of this Act.
Article 9 (Special Cases for Tax Investigations on Transactions of Specific Bonds)
Notwithstanding tax Acts, investigations shall not be made into the source of funds for bearers of specific bonds, and obligations to pay taxes which arose prior to the purchase of such bonds based on the tax data shall not be imposed: Provided, That this shall not apply where taxes are imposed based on the tax data other than the funds which purchased the bonds.
Article 10 (Special Cases for Tax Investigations on Small and Medium Business Investments)
(1) Where any resident referred to in Article 1 of the Income Tax Act falls under any of the following subparagraphs during the period as deter mined by the Presidential Decree, investigations shall not be made into the sources of funds in connection with such contributions or investments for such funds notwithstanding tax Acts, and obligations to pay taxes which arose prior to the contribution or investment based on the tax data shall not be imposed: Provided, That this shall not apply where taxes are imposed based on the tax data other than the funds contributed or invested:
1. Where he contributes to any small and medium business (limited to juristic persons) as determined by the Presidential Decree;
2. Where he contributes to any small and medium enterprise estab lishment investment company, small and medium enterprise establishment investment association or other similar juristic person or association under the Support for Small and Medium Enterprise Establishment Act, as determined by the Presidential Decree;
3. Where he contributes to any financial institution which provides assisting funds to small and medium businesses as determined by the Presidential Decree;
4. Where he converts beneficiary certificates of any venture business investment trust referred to in Article 13-3 (1) 2 of the Act on Regulation of Tax Reduction and Exemption.
(2) Any resident who intends to be subject to the provisions of para graph (1) 3 shall contribute imposts on contribution (hereinafter re ferred to as "contribution imposts") to any credit guarantee institution as determined by the Presidential Decree.
(3) The provisions of the main sentence of paragraph (1) shall not apply in cases falling under any of the following subparagraphs:
1. Where a person of less than thirty years of age contributes or invests;
2. Where he contributes or invests in the method of transfer of another's contribution quotas or beneficiary certificates;
3. Where he falls under any of the following subparagraphs before five years have elapsed from the date of contribution or investment: Pro vided, That this shall not apply due to the contributor's or investor's death or other causes as determined by the Presidential Decree:
(a) Where he transfers or recovers his contribution quotas referred to in paragraph (1) 1 through 3;
(b) Where he transfers beneficiary certificates of any venture business investment trust referred to in paragraph (1) 4, or a management company referred to in Article 2 (3) of the Securities Investment Trust Business Act repurchases the beneficiary certificates;
4. Where it is deemed that he has contributed or invested to evade taxes, as determined by the Presidential Decree.
(4) The contribution imposts referred to in paragraph (2) shall be an amount calculated by applying the following bearing rates to respective amounts of contributions:
<Amount of Contributions> <Bearing Rates>
Not more than one billion won10/100 of the amount of contributions
More than one billion won
One hundred million won + 15/100 of the amount exceeding one billion won
(5) The contribution method of contribution imposts and other neces sary matters shall be determined by the Presidential Decree.
Article 11 (Promoting Real Name Financial Transactions and Total Taxation)
Organizations in exclusive charge established under Article 11 of the previous Emergency Order shall exist until the time as determined by the Presidential Decree.
Article 12 Deleted. <by Act No. 6051, Dec. 28, 1999>
Article 13 (Amendment of Other Acts and Relations with Other Acts and Subordinate Statutes)
(1) through (7) Omitted.
(8) Where other Acts and subordinate statutes cite the previous Emergency Order or its provisions at the time of the entry into force of this Act, this Act or the corresponding provisions of this Act shall be deemed to have been cited if this includes the provisions corresponding to them.
Article 14 (Examples of Application pursuant to Amendment of Other Acts)
(1) The amended provisions of the Inheritance Tax and Gift Tax Act under Article 13 (3) of the Addenda shall apply to the determination of inheritance taxes or gift taxes levied for the first time after the entry into force of this Act.
(2) The amended provisions of the Act on Special Tax for Rural Development under Article 13 (7) of the Addenda shall apply to the payment of income derived for the first time after January 1, 1998.
ADDENDA <Act No. 5552, Sep. 16, 1998>
Article 1 (Enforcement Date)
This Act shall enter into force on the first day of the month following the month to which the date of its promulgation belongs.
Articles 2 through 4 Omitted.
ADDENDA <Act No. 6051, Dec. 28, 1999>
Article 1 (Enforcement Date)
This Act shall enter into force on January 1, 2000: Provided, That …(Omitted.) … the provisions of Article 12 of the Act on Real Name Financial Transactions and Confidentiality (Act No. 5493) amended under the provisions of Article 6 (2) of this Addenda shall enter into force on January 1, 2001.
Articles 2 through 5 Omitted.
Article 6 (Amendment to Other Acts) Omitted.
Article 7 (Examples of Application pursuant to Amendment to Other Acts)
The provisions of the Act on Special Rural Development Tax amended under Article 6 (1) of this Addenda or the provisions of Article 5 of the Act on Real Name Financial Transactions and Confidentiality amended under Article 6 (2) of this Addenda shall apply to the portion of income accrued on and after the date of its promulgation. In this case, the tax rate (15/100) to be applied on and after January 1, 2001 shall apply to the portion of income accrued on and after January 1, 2001.
ADDENDA <Act No. 6062, Dec. 28, 1999>
Article 1 (Enforcement Date)
This Act shall enter into force on March 1, 2000.
Articles 2 and 3 Omitted.
ADDENDA <Act No. 6429, Mar. 28, 2001>
Article 1 (Enforcement Date)
This Act shall enter into force on the date as prescribed by the Presidential Decree within the limit not exceeding two years from the date of its promulgation. (Proviso Omitted.) <<Enforcement date of this Act shall be March 1, 2002, pursuant to the Presidential Decree No. 17519, February 25, 2002>>
Articles 2 through 11 Omitted.
ADDENDUM <Act No. 6682, Mar. 30, 2002>
This Act shall enter into force on July 1, 2002.
ADDENDUM <Act No. 7115, Jan. 29, 2004>
This Act shall enter into force six months after the date of its promulgation.
ADDENDA <Act No. 7189, Mar. 12, 2004>
Article 1 (Enforcement Date)
This Act shall enter into force on the date of its promulgation.
Articles 2 through 18 Omitted.
ADDENDUM <Act No. 7886, Mar. 24, 2006>
This Act shall enter into force three months after the date of its promulgation.
ADDENDA <Act No. 8635, Aug. 3, 2007>
Article 1 (Enforcement Date)
This Act shall enter into force one year and six months after the date of its promulgation. (Proviso Omitted.)
Articles 2 through 44 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. 9324, Dec. 31, 2008>
This Act shall enter into force on the date of its promulgation.
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.
ADDENDA <Act No. 10522, Mar. 31, 2011>
Article 1 (Enforcement Date)
This Act shall enter into force on March 2, 2012. (Proviso Omitted.)
Articles 2 through 28 Omitted.
ADDENDA <Act No. 10854, Jul. 14, 2011>
Article 1 (Enforcement Date)
This Act shall enter into force on the date of its promulgation: Provided, That the amended provisions of subparagraph 1 (k) of Article 2 shall take effect on September 9, 2011; and the amended provisions of Articles 4 (6) 2, 4-2 (5) 2, and 4-3 (3) 2, three months after the date of its promulgation.
Article 2 (Applicability to Request, etc. for Provision of Transaction Information, etc. under the Political Funds Act)
The amended provisions of Articles 4 (6) 2, 4-2 (5) 2, and 4-3 (3) 2 shall apply to a request for transaction information, etc. that is made on or after the enforcement date of this Act.
Article 3 Omitted.
ADDENDA <Act No. 11845, May 28, 2013>
Article 1 (Enforcement Date)
This Act shall enter into force three months after the date of its promulgation. (Proviso Omitted.)
Articles 2 through 17 Omitted.
ADDENDUM <Act No. 12098, Aug. 13, 2013>
This Act shall enter into force one month after the date of its promulgation.
ADDENDA <Act No. 12711, May 28, 2014>
Article 1 (Enforcement Date)
This Act shall enter into force six months after the date of its promulgation.
Article 2 (Transitional Measures concerning Penal Provisions or Fines for Negligence)
When penal provisions or the provisions on fines for negligence apply to any act performed before this Act enters into force, the former provisions shall apply thereto.
ADDENDA <Act No. 14242, May 29, 2016>
Article 1 (Enforcement Date)
This Act shall into force on December 1, 2016. (Proviso Omitted.)
Articles 2 through 22 Omitted.