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MANAGEMENT OF THE NATIONAL FUNDS ACT

Act No. 6836, Dec. 30, 2002

Amended by Act No. 7347, Jan. 27, 2005

Act No. 7525, May 31, 2005

Act No. 8050, Oct. 4, 2006

Act No. 8635, Aug. 3, 2007

Act No. 8852, Feb. 29, 2008

Act No. 9280, Dec. 31, 2008

Act No. 9922, Jan. 1, 2010

Act No. 10526, Apr. 4, 2011

Act No. 14039, Mar. 2, 2016

Act No. 14464, Dec. 27, 2016

CHAPTER I GENERAL PROVISIONS
 Article 1 (Purpose)
The purpose of this Act is to prescribe matters necessary for the management of national funds in order to manage national funds in an effective and transparent manner.
[This Article Wholly Amended by Act No. 10526, Apr. 4, 2011]
 Article 2 (Definitions)
The terms used in this Act shall be defined as follows:
1. The term "national funds" means any of the following assets:
(a) All cash paid as the revenues of the State in accordance with statutes, contracts, etc. or transferred into funds (referring to funds under Article 3 (1) 2; hereinafter the same shall apply) and assets prescribed by Presidential Decree that have the same value as cash (hereinafter referred to as "cash, etc.");
(b) Cash, etc. temporarily retained before transferring the local consumption tax collected by the State pursuant to Article 68 of the Local Tax Act into local tax pursuant to Article 71 of the same Act;
(c) Cash, etc. raised pursuant to Article 32;
(d) Financial assets obtained for the purpose of operating national funds pursuant to Article 34;
2. The term "revenue" means national funds under subparagraph 1 (a), such as taxes, etc., transferred as tax revenues or as funds;
3. The term "expenditure" means the payment of cash, etc. from the National Treasury according to the implementation of the budget of expenditures and the fund management plan under the National Finance Act (hereinafter referred to as "fund management plan");
4. The term "head of a central government agency" means the heads of central government agencies under Article 6 of the National Finance Act.
[This Article Wholly Amended by Act No. 10526, Apr. 4, 2011]
 Article 3 (Scope of Application)
(1) This Act shall apply to the following accounts or funds:
1. General accounts and special accounts under Article 4 of the National Finance Act;
2. Funds managed and operated (including cases in which the affair of managing or operating funds is entrusted) by the heads of central government agencies, among funds established under Article 5 (1) of the National Finance Act: Provided, That funds prescribed by Presidential Decree that are recognized inappropriate to be managed as national funds in view of the publicness of funds, purposes of establishment, methods of raising fund, etc. shall be excluded herefrom.
(2) Articles 7, 18, 28, and 30 through 33 shall not apply to funds: Provided, That Article 31 shall apply to the public capital management fund under Article 2 of the Public Capital Management Fund Act.
[This Article Wholly Amended by Act No. 10526, Apr. 4, 2011]
 Article 4 (Principles of Managing National Funds)
National funds shall be managed to satisfy the following requirements:
1. National funds shall be managed in an effective and transparent manner in accordance with plans;
2. National funds shall be spent at an appropriate timing;
3. National funds shall be operated to the extent their security is not harmed;
4. Matters concerning the revenues, expenses, etc. of national funds shall be recorded and managed in a swift and accurate manner.
[This Article Wholly Amended by Act No. 10526, Apr. 4, 2011]
 Article 4-2 (Deadline on Accounting and Determination of Appropriate Fiscal Year)
(1) Clerical work for accounting of revenue and expenditure for each fiscal year shall be completed by February 10 of the next year.
(2) Determination of the appropriate fiscal year for revenue and expenditure shall be prescribed by Presidential Decree.
[This Article Wholly Amended by Act No. 10526, Apr. 4, 2011]
 Article 4-3 (Appointment and Duties of Officials in Charge of Accounts)
(1) An official in charge of accounts shall be appointed by the head of each central government agency or a public official with authority delegated by the head.
(2) Every official in charge of accounts shall disburse, receive, and hold funds in compliance with provisions of statutes.
(3) The appointment of an official in charge of accounts under paragraph (1) may be substituted by designating a person in a position existing in the government agency.
[This Article Wholly Amended by Act No. 10526, Apr. 4, 2011]
CHAPTER II REVENUE
 Article 5 (Principle of Revenue Collection and Receipt)
Revenues shall be collected or received, as prescribed by statutes.
[This Article Wholly Amended by Act No. 10526, Apr. 4, 2011]
 Article 6 (Overall Control and Management of Revenue)
The Minister of Strategy and Finance shall have overall control over clerical work for collection and receipt of revenue, and the head of each central government agency shall manage clerical work for collection and receipt of revenue under his/her jurisdiction. <Amended by Act No. 8852, Feb. 29, 2008>
 Article 7 (Prohibition, etc. against Direct Use of Revenues)
The head of a central government agency shall transfer revenues under his/her jurisdiction to the National Treasury and shall not use it directly, except where other Acts prescribe specific provisions otherwise.
[This Article Wholly Amended by Act No. 10526, Apr. 4, 2011]
 Article 8 (Money Replacing Revenue)
(1) The head of a central government agency may spend money replacing revenue under Article 53 (1) of the National Finance Act within the scope such revenue is secured.
(2) The head of a central government agency may appoint an official in charge of collection of money replacing revenue and an official in charge of disbursements and receipt of money replacing revenue in order for separate accounting of money replacing revenue under paragraph (1).
(3) Provisions concerning officials in charge of revenue collection and of disbursements and receipt of revenue shall apply to the appointment and the affair handling of officials in charge of collecting money replacing revenue and of disbursements and receipt of money replacing revenue.
[This Article Wholly Amended by Act No. 10526, Apr. 4, 2011]
 Article 9 (Delegation, etc. of Revenue Collection Affair)
(1) The head of a central government agency may delegate the affair concerning revenue collection under his/her jurisdiction to a public official under his/her control, as prescribed by Presidential Decree.
(2) Revenue shall be collected only by a public official (hereinafter referred to as "revenue collection officer") delegated with the affair concerning revenue collection pursuant to paragraph (1).
(3) The delegation of affair concerning revenue collection under paragraph (1) may be substituted by the head of a central government agency designating the position installed in the government agency to which he/she belongs.
[This Article Wholly Amended by Act No. 10526, Apr. 4, 2011]
 Article 10 (Methods of Collecting Revenues)
When a revenue collection officer intends to collect revenues, he/she shall investigate and determine such revenues and notify a tax obligator or other debtors (hereinafter referred to as "tax obligator, etc.") of the payment: Provided, That where tax obligators, etc. have paid without the payment notice prescribed by statutes, contracts, etc., a revenue collection officer shall investigate and determine such revenues, but may choose not to notify the payment.
[This Article Wholly Amended by Act No. 10526, Apr. 4, 2011]
 Article 11 (Electronic Delivery of Payment Notices)
(1) A revenue collection officer may deliver a payment notice via the telecommunications network (hereinafter referred to as "electronic delivery") upon receiving requests from tax obligators, etc.
(2) The Minister of Strategy and Finance may have a financial company, etc. prescribed by Presidential Decree carry out, as proxy, the affair of electronic delivery under paragraph (1).
(3) Tax obligators, etc. who intend to receive a payment notice shall file a request to a financial company, etc. that carries out the affair of electronic delivery as proxy pursuant to paragraph (2) (hereinafter referred to as "electronic delivery agency").
(4) Where a person who intends to carry out the affair of electronic delivery as proxy requests for the designation of electronic delivery agency by preparing facilities necessary for electronic delivery, the Minister of Strategy and Finance shall designate the person as such.
(5) Where the Minister of Strategy and Finance recognizes that a person designated as an electronic delivery agency has violated this Act or orders issued under this Act or is not appropriate to continue carrying out the affair of electronic delivery due to the grounds determined by Ordinance of the Ministry of Strategy and Finance, he/she may revoke such designation.
(6) Where the Minister of Strategy and Finance intends to revoke the designation of an electronic delivery agency pursuant to paragraph (5), he/she shall hold a hearing.
(7) The Government may pay expenses incurred for the acceptance of electronic delivery applications for payment notice, electronic delivery, and other affair of electronic delivery to an electronic delivery agency, as prescribed by Presidential Decree.
(8) Matters necessary for the electronic delivery of a payment notice shall be prescribed by Presidential Decree.
[This Article Wholly Amended by Act No. 10526, Apr. 4, 2011]
 Article 12 (Receiving Institutions)
(1) Revenues shall be received only by officials in charge of accounts (hereinafter referred to as "revenue receipt officer"): Provided, That this shall not apply where the affair of receipt is permitted to be carried out by the Bank of Korea under the Bank of Korea Act (hereinafter referred to as the "Bank of Korea") or cooperative banks (where the head of a central government agency has a financial company or others prescribed by Presidential Decree carry out special accounts under Article 3 of the Government Enterprise Budget Act or the affair of disbursements and receipt of funds, referring to such institution; hereinafter the same shall apply).
(2) When a revenue receipt officer receives revenues pursuant to paragraph (1), he/she shall immediately transfer such revenues to the Bank of Korea or a cooperative bank.
[This Article Wholly Amended by Act No. 10526, Apr. 4, 2011]
 Article 13 (Separation of Collection Institutions and Receiving Institutions)
No revenue collection officer shall concurrently assume the duty of a revenue receipt officer: Provided, That he/she may concurrently assume other duties where extenuating circumstances prescribed by Presidential Decree exist.
[This Article Wholly Amended by Act No. 10526, Apr. 4, 2011]
 Article 14 (Revenue for Previous Year)
Revenue attributable to a year in which disbursements and receipt are completed shall be devolved to the current year.
 Article 15 (Return of Overpayment and Erroneous Payment)
(1) Where overpayment or erroneous payment exists, such payment shall be returned, as prescribed by Presidential Decree, regardless of the annual expenditure budget or fund management plans.
(2) Where erroneous payments shall be returned pursuant to paragraph (1), interest thereof shall be paid, as prescribed by Presidential Decree: Provided, That where other Acts prescribe specific provisions otherwise concerning the payment of interest on overpayment and erroneous payments, such Acts shall govern.
[This Article Wholly Amended by Act No. 10526, Apr. 4, 2011]
 Article 16 (Return of Revenues)
When certain payment shall be returned in accordance with Acts among amounts paid as revenues, such shall be returned, as prescribed by Presidential Decree, regardless of the annual expenditure budget or fund management plans.
[This Article Wholly Amended by Act No. 10526, Apr. 4, 2011]
 Article 16-2 (Payment of Local Consumption Tax Collected by State)
Where a local consumption tax collected by the State pursuant to Article 68 of the Local Tax Act is paid to local revenues pursuant to Article 71 of the same Act, it shall be paid, as prescribed by Presidential Decree, regardless of the annual expenditure budget.
[This Article Wholly Amended by Act No. 10526, Apr. 4, 2011]
 Article 17 (Provision of Information on Notification of Payment)
The head of a central government agency shall provide information necessary for the receipt and management of national funds, among information on the notification of payment, to the Minister of Strategy and Finance, as prescribed by Presidential Decree.
[This Article Wholly Amended by Act No. 10526, Apr. 4, 2011]
 Article 18 (Fund of Prior Use)
(1) Notwithstanding Articles 7 and 12 (2), special accounts under Article 3 of the Government Enterprise Budget Act may operate revenues as fund of prior use (referring to funds that are used first before the payment to the National Treasury and substituted by expenses; hereinafter the same shall apply).
(2) The head of a central government agency may appoint an officer empowered to order receipts and disbursements of fund of prior use and public official in charge of accounts for fund of prior use in order to operate fund of prior use pursuant to paragraph (1).
(3) Prior use funds shall be deposited to financial companies, etc. prescribed by Presidential Decree (hereinafter referred to as "financial company, etc.") for management.
(4) Matters necessary for the operation of fund of prior use shall be prescribed by Presidential Decree.
[This Article Wholly Amended by Act No. 10526, Apr. 4, 2011]
CHAPTER III EXPENDITURE
 Article 19 (General Supervision and Management of Expenditure)
The Minister of Strategy and Finance shall supervise overall affair concerning expenditure, and the head of a central government agency shall manage the causative acts of expenditure (referring to contracts or other acts that become the reasons for the expenditure of national funds; hereinafter the same shall apply) and the affair concerning expenditure.
[This Article Wholly Amended by Act No. 10526, Apr. 4, 2011]
 Article 20 (Rules for Causative Acts of Expenditure)
Causative acts of expenditure shall be performed by the head of a central government agency within the scope of budget appropriated pursuant to Article 43 of the National Finance Act or other statues or the amount determined by fund management plans.
[This Article Wholly Amended by Act No. 10526, Apr. 4, 2011]
 Article 21 (Delegating Causative Acts of Expenditure)
(1) The head of a central government agency may delegate causative acts of expenditure to public officials under his/her control, as prescribed by Presidential Decree.
(2) Delegating causative acts of expenditure under paragraph (1) may be substituted by the head of a central government agency designating the position installed in the government agency to which he/she belongs.
[This Article Wholly Amended by Act No. 10526, Apr. 4, 2011]
 Article 22 (Procedures for Expenditure)
(1) Where the head of a central government agency or a public official delegated pursuant to Article 21 (hereinafter referred to as "finance officer") intends to expend money in accordance with the annual expenditure budget or a fund management plan under his/her jurisdiction, he/she shall send documents related to causative acts of expenditure to the public official appointed by the head of a central government agency to which he/she belongs (hereinafter referred to as "expenditure officer"), as prescribed by Presidential Decree.
(2) The appointment of an expenditure officer may be substituted by the head of a central government agency designating the position installed in the government agency to which he/she belongs.
(3) Where an expenditure officer intends to expend in accordance with causative acts of expenditure, he/she shall pay money by transferring it to the account of a creditor or a person entrusted to handle the affair of paying national funds under statutes (hereinafter referred to as "creditor, etc."), as prescribed by Presidential Decree.
(4) Where an expenditure officer is unable to pay money by using the method under paragraph (3) due to a failure of telecommunications or other extenuating circumstances, he/she may directly pay cash, etc. to a creditor, as prescribed by Presidential Decree.
(5) Expenditure under paragraphs (1), (3) and (4) shall be made within the scope of monthly detailed fund plans by expenditure officer under Article 30 (6).
[This Article Wholly Amended by Act No. 10526, Apr. 4, 2011]
 Article 23 (Restrictions on Expenditure)
An expenditure officer shall expend money only where creditors, etc. are recipients: Provided, That this shall not apply where funds are granted to officials in charge of disbursements and receipt.
[This Article Wholly Amended by Act No. 10526, Apr. 4, 2011]
 Article 24 (Payment of Agency Operation Expenses)
(1) In regard to expenses incurred in operating government agencies which are likely to hinder the performance of the affair, by their nature, if spent in accordance with the procedures prescribed in Article 22 (hereinafter referred to as "agency operation expenses"), the head of a central government agency or a public official delegated thereby may have an official in charge of accounts receive funds necessary therefor from an expenditure officer and pay them.
(2) An official in charge of accounts who receives and pays agency operation expenses pursuant to paragraph (1) (hereinafter referred to as a "public officer in charge of the accounts of agency operation expenses") may perform causative acts of expenditure within the scope of funds granted under paragraph (1), as prescribed by Presidential Decree.
(3) Agency operation expenses shall be paid only by an public officer in charge of the accounts of agency operation expenses.
(4) An public officer in charge of the accounts of agency operation expenses shall deposit agency operation expenses in a financial company, etc. for management.
(5) Where an public officer in charge of the accounts of agency operation expenses intends to pay agency operation expenses, he/she shall use government purchase cards (referring to credit cards or debit cards under subparagraphs 3 and 6 of Article 2 of the Specialized Credit Finance Business Act or electronic debit payment means under subparagraph 13 of Article 2 of the Electronic Financial Transactions Act, used to pay agency operation expenses, as prescribed by Presidential Decree; hereinafter the same shall apply): Provided, That where government purchase cards cannot be used due to the nature of expenses, payment may be made by the way of cash, etc. as prescribed by Presidential Decree. <Amended by Act No. 14464, Dec. 27, 2016>
(6) Matters necessary for the scope of agency operation expenses, payment procedures, and methods of using government purchase cards and other related matters shall be prescribed by Presidential Decree.
[This Article Wholly Amended by Act No. 10526, Apr. 4, 2011]
 Article 25 (Granting Agency Operation Expenses Before Commencement of Fiscal Year)
(1) The head of a central government agency or a public official delegated thereby may have an public officer in charge of the accounts of agency operation expenses receive necessary funds from an expenditure officer and pay such funds before the relevant fiscal year commences, only for agency operation expenses.
(2) The Minister of Strategy and Finance may temporarily borrow funds that he/she intends to grant before the relevant fiscal year commences pursuant to paragraph (1) within the scope of the temporary loan ceiling.
(3) Matters necessary for granting of agency operation expenses before the commencement of relevant fiscal year shall be prescribed by Presidential Decree.
[This Article Wholly Amended by Act No. 10526, Apr. 4, 2011]
 Article 26 (Advance Payment and Approximated Payment)
In regard to freight charges, charterages, costs for construction, manufacturing or service contracts, and other expenses prescribed by Presidential Decree that are, by their nature, likely to hinder the relevant affair or project if not paid in advance or paid based on rough approximation, an expenditure officer may pay such in advance or pay such based on approximation.
[This Article Wholly Amended by Act No. 10526, Apr. 4, 2011]
 Article 27 (Separation of Expenditure Institution and Receipt Institution)
A finance officer, expenditure officer and public official in charge of accounts shall not concurrently assume the duty of the others: Provided, That in cases of funds, they may concurrently assume the duty of an expenditure officer and public official in charge of accounts, as prescribed by Presidential Decree.
[This Article Wholly Amended by Act No. 10526, Apr. 4, 2011]
 Article 28 (Expenditure of Previous Year)
Expenses that are an finalized amount of debt belonging to the previous year but are not spent shall be spent from the current year's annual expenditure budget, but such spending shall not exceed the unspent amount of the relevant item in the year to which such expenses belong: Provided, That this shall not apply to expenses recognized by Presidential Decree that the spending thereof is inevitable by the nature of such expenses.
[This Article Wholly Amended by Act No. 10526, Apr. 4, 2011]
 Article 29 (Return of Disbursements)
Where disbursements are returned, they shall be returned to each item of expenditure, as prescribed by Presidential Decree.
(2) Where disbursements belonging to the year, the disbursements and receipt of which have been completed are returned, they shall be included in the revenue of the current year, notwithstanding paragraph (1).
[This Article Wholly Amended by Act No. 10526, Apr. 4, 2011]
CHAPTER IV FUND MANAGEMENT
 Article 30 (Fund Plans)
(1) Where a budget is established, the head of a central government agency shall prepare a draft of monthly fund plan that comprehensively considers outlook for revenue and expenditure and other matters concerning the disbursements and receipt of funds and submit it to the Minister of Strategy and Finance.
(2) The Minister of Strategy and Finance shall compile the drafts under paragraph (1) and prepare a monthly fund plan.
(3) The head of a central government agency shall prepare a draft of detailed monthly fund plan based on the monthly fund plan prepared pursuant to paragraph (2) and submit it to the Minister of Strategy and Finance each month.
(4) The Minister of Strategy and Finance shall compile the drafts of detailed monthly fund plans submitted by the heads of central government agencies pursuant to paragraph (3), prepare a detailed monthly fund plan and notify the heads of central government agencies and the Bank of Korea thereof.
(5) Where the Minister of Strategy and Finance recognizes it necessary for the supply and demand of funds, he/she may adjust the detailed monthly fund plan under paragraph (4). In such cases, the Minister of Strategy and Finance shall notify the relevant heads of central government agencies and the Bank of Korea thereof.
(6) Upon receiving the notification of a detailed monthly fund plan pursuant to paragraphs (4) and (5), the head of a central government agency shall notify each expenditure officer under his/her control of the detailed monthly fund plan.
(7) Matters necessary for the preparation and adjustment of fund plans pursuant to paragraphs (1) through (6) shall be prescribed by Presidential Decree.
[This Article Wholly Amended by Act No. 10526, Apr. 4, 2011]
 Article 31 (Integrated Management, etc. of National Funds)
(1) Where the Minister of Strategy and Finance recognizes it necessary for the disbursements and receipt of national funds, he/she may carry out integrated management of funds of accounting or accounts prescribed by Presidential Decree, among funds of each accounting or account of the Government (including the amount carried forward from the previous year and surplus from tax execution), apart from a budget of revenues and expenditures. In such cases, expenditure of national funds in the integrated account in relation to the expenditures of each accounting or account in the relevant fiscal year shall not exceed the revenues of national funds in the integrated account in relation to the revenues.
(2) Where national funds are intended for integrated management pursuant to paragraph (1), an integrated account shall be installed in the Bank of Korea.
(3) Where the Minister of Strategy and Finance recognizes it necessary for the supply and demand of national funds, he/she may mutually deposit accounting and accounts not subject to integrated management under paragraph (1), the integrated account under paragraph (2) (hereinafter referred to as "integrated account") and funds of public capital management funds under Article 2 of the Public Capital Management Fund Act, apart from a budget of revenues and expenditures or fund management plans, to the extent not hindering the implementation of budget or fund management plans. In such cases, the deposit shall be repaid with the revenues of the relevant fiscal year.
(4) Matters necessary for the integrated management or mutual deposit under paragraph (1) or (3) shall be prescribed by Presidential Decree.
[This Article Wholly Amended by Act No. 10526, Apr. 4, 2011]
 Article 32 (Raising of Funds)
(1) When necessary for the disbursements and receipt of national funds, the State may raise funds by issuing treasury bills or taking temporary loan from the Bank of Korea, or through other methods prescribed by Presidential Decree.
(2) Funds raised pursuant to paragraph (1) shall be repaid with the revenues of the relevant fiscal year.
(3) The ceiling amount of raising funds under paragraph (1) shall require resolution by the National Assembly each fiscal year for each accounting and account (excluding accounting and account included in an integrated account; hereafter the same shall apply in paragraph (4)), integrated account and fund in need of such funds.
(4) Funds under paragraph (1) shall be raised by the Minister of Strategy and Finance at the expense of each accounting and account, integrated account and fund in need of such funds: Provided, That the costs and interests thereof for raising funds for an integrated account shall be first covered by the profits under Article 34 (2) and the shortage thereof shall be borne by the general account.
(5) The Minister of Strategy and Finance shall give priority to issuance of treasury bills as a means of raising funds under paragraphs (1) or (4). <Newly Inserted by Act No. 14464, Dec. 27, 2016>
(6) Temporary loans from the Bank of Korea under paragraph (1) shall be repaid without delay when such funds are no longer required. <Newly Inserted by Act No. 14464, Dec. 27, 2016>
[This Article Wholly Amended by Act No. 10526, Apr. 4, 2011]
 Article 33 (Issuance, etc. of Treasury Bills)
(1) Treasury bills shall be issued by the Minister of Strategy and Finance at the expense of the general account or the special account (limited to those allowed for temporary loans under Acts).
(2) Treasury bills shall be issued in an open market: Provided, That when recognized as necessary, they may be sold to financial companies, etc., government-contributed enterprises, insurance companies, or others.
(3) Matters necessary for the interest rate of treasury bills, maturity date, repayment conditions, etc. shall be determined and publicly announced by the Minister of Strategy and Finance.
(4) Treasury bills issued under paragraph (1) shall be registered, without issuing bills, electronically in either inscribed form or bearer form in the register of treasury bonds, using an electronic data processing system: Provided, That in times of war, incident, or other national emergency equivalent thereto, such bills in inscribed form or bearer from may be issued. <Amended by Act No. 14039, Mar. 2, 2016>
(5) The transfer of registered treasury bills or the establishment of a pledge right to treasury bills shall not contest against the Government or other third parties unless such fact is registered. <Amended by Act No. 14039, Mar. 2, 2016>
(6) Treasury bills shall be issued at a par value or on discount.
(7) Claims on treasury bills shall be extinguished by the completion of prescription unless exercised within five years from the maturity date.
(8) Matters necessary for the issuance and repayment of treasury bills shall be prescribed by Presidential Decree.
(9) The agency that conducts registration as required under paragraphs (4) and (5) shall be the Bank of Korea. <Newly Inserted by Act No. 14039, Mar. 2, 2016>
[This Article Wholly Amended by Act No. 10526, Apr. 4, 2011]
 Article 34 (Operation of National Funds)
(1) When the Minister of Strategy and Finance recognizes it unlikely to harm the disbursements and receipt of national funds, he/she may operate funds of an integrated account, apart from a budget of revenues and expenditures, in any of the following methods:
1. Sale and purchase of national and public bonds, and monetary stabilization bonds issued under the Bank of Korea Monetary Stabilization Bond Act;
2. Deposit into or short-term loans to financial companies, etc. prescribed by Presidential Decree;
3. Sale and purchase of bonds issued by a financial securities company or merchant bank under the Financial Investment Services and Capital Markets Act;
4. Sale and purchase of other securities prescribed by Presidential Decree.
(2) The Minister of Strategy and Finance may use profits from the operation of funds of an integrated account under paragraph (1) for the following purposes, apart from a budget of revenues and expenditures:
1. Payment of costs and interests thereof for raising funds of an integrated account pursuant to the proviso to Article 32 (4);
2. Payment of other expenses related to the operation of national funds.
(3) The head of a central government agency who manages accounting or account not included in an integrated account may operate national funds of the accounting or account under his/her control by applying mutatis mutandis paragraphs (1) and (2).
(4) The head of a central government agency may operate surplus money of the funds under his/her control in manners prescribed by relevant statutes, apart from fund management plans.
(5) Profits from the operation of national funds under paragraphs (1), (3) and (4) shall be revenues of the integrated account, each accounting or account or funds that operate such national funds.
(6) For the accounting of the operation of national funds of an integrated account, a national fund operation account shall be installed in the Bank of Korea.
(7) Matters necessary for the operation of national funds shall be prescribed by Presidential Decree.
(8) The Minister of Strategy and Finance shall report matters on the operation of national funds of an integrated account to the National Assembly each year.
[This Article Wholly Amended by Act No. 10526, Apr. 4, 2011]
CHAPTER V SUPPLEMENTARY PROVISIONS
 Article 35 (Restrictions on Cash Storage)
No head of a central government agency shall store national funds in cash unless statutes require such.
[This Article Wholly Amended by Act No. 10526, Apr. 4, 2011]
 Article 36 (Disbursements, Receipt, etc. of National Funds by Bank of Korea)
(1) The Bank of Korea and cooperative banks (hereinafter referred to as the "Bank of Korea, etc.") shall handle the affair of disbursements and receipt of national funds, as prescribed by Presidential Decree.
(2) The Bank of Korea, etc. may have financial companies, etc. handle the affair of disbursements and receipt of national funds on behalf of the Bank of Korea, etc., as prescribed by Ordinance of the Ministry of Strategy and Finance.
(3) National funds the Bank of Korea, etc. receives pursuant to paragraph (1) shall be the deposit of the State, as prescribed by Presidential Decree.
(4) The Bank of Korea, etc. shall undergo an investigation by the Board of Audit and Inspection in regard to the disbursements and receipt of national funds that it handles.
(5) Where the Bank of Korea, etc. and financial companies, etc. that act on behalf of the Bank of Korea, etc. pursuant to paragraph (2) inflict a loss to the State in regard to disbursements and receipt and storage of national funds, the Civil Act and the Commercial Act shall apply to the liability of compensation.
[This Article Wholly Amended by Act No. 10526, Apr. 4, 2011]
 Article 37 (Recording of National Funds Management Affair)
Revenue collection officers, finance officers, expenditure officers, officers empowered to order receipt and disbursements of fund of prior use under Article 18 (2), public officials in charge of accounts, other accounting-related public officials prescribed by Presidential Decree and the Bank of Korea, etc. shall keep books and record matters necessary for the management of national funds, as prescribed by Presidential Decree.
[This Article Wholly Amended by Act No. 10526, Apr. 4, 2011]
 Article 38 (Submission of Reports and Statements)
(1) The head of a central government agency shall prepare a report on the management of national funds and submit it to the Minister of Strategy and Finance, as prescribed by Presidential Decree.
(2) Revenue collection officers, finance officers, expenditure officers, officers empowered to order receipt and disbursements of fund of prior use, officials in charge of accounts, other accounting-related public officials prescribed by Presidential Decree and the Bank of Korea, etc. shall prepare a report on the management of national funds and submit it to the heads of central government agencies, the Minister of Strategy and Finance and the Board of Audit and Inspection, as prescribed by Presidential Decree.
(3) Officials in charge of accounts and the Bank of Korea, etc. shall report to revenue collection officers or expenditure officers on the revenues or expenses that are handled by them, as prescribed by Presidential Decree.
(4) Revenue collection officers, finance officers, expenditure officers, officers empowered to order receipt and disbursements of fund of prior use and officials in charge of accounts shall prepare statements on the management of national funds and submit them to the heads of central government agencies, the Minister of Strategy and Finance and the Board of Audit and Inspection, as prescribed by the Board of Audit and Inspection.
[This Article Wholly Amended by Act No. 10526, Apr. 4, 2011]
 Article 39 (Consultation on Statutes concerning National Fund Management)
Where the head of a central government agency formulates statutes governing the management of national funds, he/she shall consult with the Minister of Strategy and Finance.
[This Article Wholly Amended by Act No. 10526, Apr. 4, 2011]
 Article 40 (Proxy and Division of Tasks of Accounting-Related Public Officials)
(1) If deemed necessary, the head of a central government agency may have public officials under his/her control carry out all affair of a revenue collection officer or finance officer as proxy or handle some of the affair, as prescribed by Presidential Decree.
(2) If deemed necessary, the head of a central government agency or a public official delegated thereby may appoint a public official to carry out all affair of an expenditure officer, officer empowered to order receipt and disbursements of fund of prior use, or official in charge of accounts as proxy or handle some of the affair, as prescribed by Presidential Decree.
(3) Proxy and division of tasks of a revenue collection officer, financial officer, expenditure officer, officers empowered to order receipt and disbursements of fund of prior use, or official in charge of accounts pursuant to paragraphs (1) and (2) may be substituted by the head of a central government agency designating the position installed in the government agency to which he/she belongs.
[This Article Wholly Amended by Act No. 10526, Apr. 4, 2011]
 Article 41 (Special Cases concerning Appointment of Accounting-Related Public Officials)
(1) If deemed necessary, the head of a central government agency may delegate the affair of a revenue collection officer or a finance officer to a public official belonging to another central government agency or appoint a public official belonging to another central government agency as an expenditure officer or an official in charge of accounts, as prescribed by Presidential Decree.
(2) Delegation of the affair of a revenue collection officer or a finance officer or the appointment of an expenditure officer or an official in charge of accounts under paragraph (1) may be substituted by the head of a central government agency designating the position installed in another government agency.
[This Article Wholly Amended by Act No. 10526, Apr. 4, 2011]
 Article 42 (Handling of National Funds Management Affair by Local Governments, etc.)
(1) The State may have public officials in local governments or executive officers and employees of public institutions under the Act on the Management of Public Institutions (hereinafter referred to as "public institutions") or financial companies, etc. handle the affair on the management of national funds, as prescribed by Presidential Decree.
(2) In regard to public officials in local governments and executive officers and employees of public institutions or financial companies, etc. who handle the affair of national funds management pursuant to paragraph (1), the provisions concerning the handling of such affair, among the provisions of this Act or other statutes concerning national funds management, shall apply mutatis mutandis.
[This Article Wholly Amended by Act No. 10526, Apr. 4, 2011]
 Article 43 (Delegation of Expenditure Affair)
(1) The head of a central government agency may delegate the affair of expenditure under his/her control to a public official belonging to another government agency, as prescribed by Presidential Decree.
(2) Accounting-related public officials to carry out the affair delegated pursuant to paragraph (1) shall be appointed by the Minister of Strategy and Finance, as prescribed by Presidential Decree.
[This Article Wholly Amended by Act No. 10526, Apr. 4, 2011]
 Article 44 (Entrustment of Affair concerning Treasury Bills, etc.)
The Minister of Strategy and Finance may entrust affair concerning the issuance and repayment of treasury bills under Article 33 and part of the affair concerning the operation of national funds under Article 34 to the Governor of the Bank of Korea.
[This Article Wholly Amended by Act No. 10526, Apr. 4, 2011]
 Article 45 (Financial Guarantee of Accounting-Related Public Officials)
(1) No revenue collection officers, finance officers, expenditure officers, officers empowered to order receipt and disbursements of fund of prior use, officials in charge of accounts and other accounting-related public officials prescribed by Presidential Decree shall carry out their duties without financial guarantee prescribed by Presidential Decree.
(2) Expenses incurred in providing financial guarantee under paragraph (1) shall be borne by the State.
[This Article Wholly Amended by Act No. 10526, Apr. 4, 2011]
 Article 46 (Informatization of Affair)
(1) Where necessary for the smooth handling of national funds management affair under this Act, the Minister of Strategy and Finance may develop telecommunications media, programs, etc., and have the heads of central government agencies use them, as prescribed by Presidential Decree.
(2) Notwithstanding paragraph (1), the head of a central government agency may develop and use telecommunications media, programs, etc. to handle national funds management affair, as prescribed by this Act. In such cases, he/she shall undergo consultation with the Minister of Strategy and Finance and the Board of Audit and Inspection.
[This Article Wholly Amended by Act No. 10526, Apr. 4, 2011]
 Article 47 (Calculation of Fractional Numbers in National Funds)
(1) A fractional number of less than ten won in the revenue or expenditure of national funds shall be excluded from calculation, while a total sum of less than ten won shall be also excluded from calculation: Provided, That the foregoing shall not apply to cases specified by Presidential Decree otherwise.
(2) A fractional number of less than one won shall be excluded from calculation, in calculating a standard taxable amount of a national tax.
(3) Paragraphs (1) and (2) may apply mutatis mutandis to local governments and other public organizations and public institutions prescribed by Presidential Decree: Provided, That this shall not apply to public institutions prescribed by Presidential Decree, such as the Korea Development Bank under the Korea Development Bank Act.
[This Article Wholly Amended by Act No. 10526, Apr. 4, 2011]
ADDENDA
Article 1 (Enforcement Date)
This Act shall enter into force on January 1, 2003.
Article 2 (Repeal of other Act)
The Treasury Bond Act is hereby repealed.
Article 3 (Transitional Measure concerning Appointment of Accounting-Related Officials)
Officials in charge of disbursements and receipt of revenue for revenue substitution expenses appointed pursuant to Article 41 (2) of the former Budget and Accounts Act as at the time this Act enters into force shall be deemed officials in charge of disbursements and receipt of revenue for revenue substitution expenses appointed pursuant to Article 8, revenue collection officers appointed pursuant to Article 50 of the former Budget and Accounts Act shall be deemed revenue collection officers appointed pursuant to Article 9, treasury officers appointed pursuant to Article 61 (1) of the former Budget and Accounts Act shall be deemed treasury officers appointed pursuant to Article 22 (1), and disbursement officers appointed pursuant to Article 61 (1) of the former Budget and Accounts Act shall be deemed disbursement officers appointed pursuant to Article 22 (1).
Article 4 (Transitional Measures concerning National Treasury Checks, etc.)
National Treasury checks and National Treasury transfer orders issued pursuant to Article 63 of the former Budget and Accounts Act as at the time this Act enters into force shall be governed by the former provisions.
Article 5 (Transitional Measures concerning Treasury Bonds)
Treasury bonds under the former Treasury Bond Act as at the time this Act enters into force shall be deemed treasury bonds under this Act.
Article 6 Omitted.
Article 7 (Relationship to Other Statutes)
(1) A citation of the former Budget and Accounts Act or the former Treasury Bond Act, or any provision of either of such Acts, by any other statute, as at the time this Act enters into force, shall be deemed a citation of this Act or the corresponding provision of this Act in lieu of the former provision, if such corresponding provision exists in this Act.
(2) A reference to a revenue collection officer, a treasury officer, a disbursement officer, or an official in charge of disbursements and receipt under the former Budget and Accounts Act by any other statute as at the time this Act enters into force shall be deemed a reference to a revenue collection officer, a treasury officer, a disbursement officer, or an official in charge of disbursements and receipt under this Act.
(3) A reference to treasury bonds under the former Treasury Bond Act by any other statute as at the time this Act enters into force shall be deemed a reference to treasury bonds under this Act.
ADDENDA <Act No. 7347, Jan. 27, 2005>
Article 1 (Enforcement Date)
This Act shall enter into force on July 1, 2005.
Article 2 (Repeal of other Act)
Article 3 (Transitional Measures)
The maximum amounts of general accounts, special accounts for financial investments and loans, and special accounts for the management of State-owned property under Article 8 of General Provisions of Budget in the budget for 2005 shall be deemed to have been approved by the National Assembly's resolution.
Article 4 Omitted.
ADDENDUM <Act No. 7525, May 31, 2005>
This Act shall enter into force three months after the date of its promulgation.
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. 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. 8852, Feb. 29, 2008>
Article 1 (Enforcement Date)
This Act shall enter into on the date of its promulgation. (Proviso Omitted.)
Articles 2 through 7 Omitted.
ADDENDA <Act No. 9280, Dec. 31, 2008>
Article 1 (Enforcement Date)
This Act shall enter into force on January 1, 2009.
Articles 2 through 6 Omitted.
ADDENDUM <Act No. 9922, Jan. 1, 2010>
This Act shall enter into force on January 1, 2010.
ADDENDA <Act No. 10526, Apr. 4, 2011>
Article 1 (Enforcement Date)
This Act shall enter into force six months after the date of its promulgation.
Article 2 (Applicability concerning Return of Erroneous Payments)
The amended provisions of Article 15 (2) shall apply to the first returned erroneous payments of revenues after this Act enters into force.
ADDENDUM <Act No. 14039, Mar. 2, 2016>
This Act shall enter into force six months after the date of its promulgation.
ADDENDUM <Act No. 14464, Dec. 27, 2016>
This Act shall enter into force one year after the date of its promulgation.