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ENFORCEMENT DECREE OF THE ACT ON THE EFFICIENT DISPOSAL OF NON-PERFORMING ASSETS, ETC. OF FINANCIAL INSTITUTIONS AND THE ESTABLISHMENT OF KOREA ASSET MANAGEMENT CORPORATION

Presidential Decree No. 25945, Dec. 30, 2014

Amended by Presidential Decree No. 26369, jun. 30, 2015

Presidential Decree No. 26543, Sep. 22, 2015

Presidential Decree No. 26600, Oct. 23, 2015

Presidential Decree No. 27037, Mar. 11, 2016

Presidential Decree No. 27205, May 31, 2016

Presidential Decree No. 27472, Aug. 31, 2016

Presidential Decree No. 27511, Sep. 22, 2016

 Article 1 (Purpose)
The purpose of this Decree is to provide for matters delegated by the Act on the Efficient Disposal of Non-Performing Assets, etc. of Financial Companies and the Establishment of Korea Asset Management Corporation and for matters necessary for the enforcement thereof.
[This Article Wholly Amended by Presidential Decree No. 25279, Mar. 24, 2014]
 Article 2 (Scope of Institutions Conducting Financial Affairs)
"Institutions prescribed by Presidential Decree" in subparagraph 1 (g) of Article 2 of the Act on the Efficient Disposal of Non-Performing Assets, etc. of Financial Companies and the Establishment of Korea Asset Management Corporation (hereinafter referred to as the "Act") means any of the following: <Amended by Act No. 26369, Jun. 30, 2015; Act No. 26600, Oct. 23, 2015; Act No. 27037, Mar. 11, 2016; Act No. 27205, May 31, 2016; Act No. 27511, Sep. 22, 2016>
1. Cooperatives under the Agricultural Cooperatives Act;
2. Fisheries cooperatives under the Fisheries Cooperatives Act;
3. Deleted; <by Act No. 25945, Dec. 30, 2014>
4. Branch offices or agencies of foreign banks authorized pursuant to Article 58 (1) of the Banking Act;
5. Insurance companies under the Insurance Business Act;
6. Mutual savings banks under the Mutual Savings Banks Act;
7. Merchant banks, investment traders, investment brokers, collective investment vehicles, and private equity funds under the Financial Investment Services and Capital Markets Act;
8. Credit unions and the National Credit Union Federation of Korea under the Credit Unions Act;
9. The Korea Credit Guarantee Fund established pursuant to the Credit Guarantee Fund Act;
10. Specialized credit financial services companies licensed or registered pursuant to the Specialized Credit Financial Services Act;
11. The Korea Technology Finance Corporation under the Korea Technology Finance Corporation Act;
12. Venture capital firms for starting up small and medium enterprises under the Support for Small and Medium Enterprise Establishment Act;
13. Community credit cooperatives and the Korean Federation of Community Credit Cooperatives under the Community Credit Cooperatives Act;
14. Companies established by financial companies, etc. referred to in subparagraph 1 (a) through (f) of Article 2 of the Act in order to undertake or liquidate loans, deemed by the Financial Services Commission as requiring underwrite the loans held by the relevant companies for the efficient liquidation of non-performing loans;
15. Financial corporations conducting liquidation under Article 36-3 of the Depositor Protection Act;
16. Credit guarantee foundations and the Korean Federation of Credit Guarantee Foundations under the Regional Credit Guarantee Foundation Act;
17. Forestry cooperatives and the National Federation of Forestry Cooperatives under the Forestry Cooperatives Act;
18. The Korea Housing Finance Corporation under the Korea Housing Finance Corporation Act;
19. The Small and Medium Business Corporation under the Small and Medium Enterprises Promotion Act;
20. Small and medium enterprise cooperatives and the Korea Federation of Small and Medium Enterprises under the Small and Medium Enterprise Cooperatives Act;
21. The Korea Housing and Urban Guarantee Corporation under the Housing and Urban Fund Act;
22. The Construction Guarantee, the Korea Specialty Contractor Financial Cooperative, and the Plant and Mechanical Contractors Financial Cooperative of Korea under the Framework Act on the Construction Industry;
23. Special-purpose companies under the Asset-Backed Securitization Act;
24. Corporate restructuring associations registered pursuant to Article 15 of the Industrial Development Act (referring to the Industrial Development Act before being wholly amended by Act No. 9584) and corporate restructuring companies which are executive partners of such associations, or private equity funds improving corporate structure under Article 20 of the Industrial Development Act;
25. Companies participating in projects to support credit recovery of any of the following persons, among companies providing credit services pursuant to Article 3 of the Act on Registration of Credit Business, etc. and Protection of Finance Users:
(a) Persons who remain in arrears on their debt payments to financial companies, etc. for reasons of insufficient funds for debt payments;
(b) Any of the following persons, from among recipients of assistance under subparagraph 2 of Article 2 of the National Basic Living Security Act and those in the second-lowest income bracket under subparagraph 11 of the aforesaid Article:
(i) Persons who participate in projects required for self-sufficiency under Article 9 (5) of the National Basic Living Security Act;
(ii) Persons who suffer from rare incurable diseases, who receive a rebate of their medical expenses pursuant to subparagraph 3 (d) of attached Table 2 of the Enforcement Decree of the National Health Insurance Act;
(iii) Persons who receive medical benefits pursuant to Article 2 of the Enforcement Decree of the Medical Care Assistance Act;
(ⅳ) Persons who receive child care expenses pursuant to Article 34 (1) of the Infant Care Act;
(v) Persons who receive disability allowances under Article 49 of the Welfare of Disabled Persons Act and persons who receive child disability allowances under Article 50 (1) of the aforesaid Act;
(c) Persons eligible for support under Article 5 of the Single-Parent Family Support Act;
(d) Persons whose credit worthiness is deemed low by the Business Management Committee under Article 14 of the Act (hereinafter referred to as the "Committee") according to credit information provided by credit information companies conducting affairs under Article 4 (1) 1 of the Use and Protection of Credit Information Act;
26. The Korea Trade Insurance Corporation under the Trade Insurance Act;
27. The Korea Student Aid Foundation under the Act on the Establishment, etc. of Korea Student Aid Foundation;
28. Korea Inclusive Finance Agency under Article 3 of the Microfinance Support Act.
[This Article Wholly Amended by Presidential Decree No. 25279, Mar. 24, 2014]
 Article 2-2 (Scope of Non-Performing Loans)
"Loans prescribed by Presidential Decree" in subparagraph 2 of Article 2 of the Act means the following loans:
1. Loans for which an allowance for bad debts shall be established, as prescribed by the Financial Services Commission;
2. Other loans recognized by the Committee as particularly necessary to improve the liquidity and soundness of financial companies, etc.
[This Article Wholly Amended by Presidential Decree No. 25279, Mar. 24, 2014]
 Article 2-3 (Scope of Assets Subject to Sale of Financial Institutions, etc.)
"As prescribed by Presidential Decree" in subparagraph 4 (b) of Article 2 of the Act means the following assets:
1. Fixed assets (including security deposits; hereafter the same shall apply in this Article) falling into disuse in business due to the merger, conversion or liquidation of a financial company, etc.;
2. Fixed assets financial company, etc. intends to dispose of in a timely, corrective manner under Article 10 of the Act on the Structural Improvement of the Financial Industry.
[This Article Wholly Amended by Presidential Decree No. 25279, Mar. 24, 2014]
 Article 3 (Methods of, and Procedures for, Liquidating Non-Performing Assets)
Where a financial company, etc. outsources the liquidation of non-performing assets under Article 3 (2) of the Act (hereinafter referred to as "non-performing asset") to the Korea Asset Management Corporation (hereinafter referred to as the "Corporation") pursuant to Article 4 (1) of the Act, the Corporation shall conclude an agreement on matters necessary to handle outsourced affairs with the financial company, etc.
[This Article Wholly Amended by Presidential Decree No. 25279, Mar. 24, 2014]
 Article 4 (Methods of, and Procedures for, Dispoing of Non-Performing Assets)
(1) Where a financial company, etc. requests the Corporation to acquire non-performing assets pursuant to Article 4 (1) of the Act, the Corporation shall enter into a contract for acquisition of non-performing assets with the financial company, etc. in consultation with the relevant financial company, etc. on the terms of acquisition, such as the acquisition price, and acquire the relevant non-performing assets as follows:
1. Non-performing loans: Receipt of documents that constitute a loan and transfer of the real right in security;
2. Non-business assets: Transfer of ownership.
(2) In addition to methods falling under paragraph (1), the Corporation may acquire or liquidate non-performing loans by liquidating non-performing loans after acquiring all or some of the non-performing loans of a financial company, etc. under a contract made by and between the financial company, etc. or the Corporation and a debtor (where a debtor is not the owner of collateral, including the owner of collateral) and acquiring the ownership of collateral for the relevant non-performing loans by transfer.
[This Article Wholly Amended by Presidential Decree No. 25279, Mar. 24, 2014]
 Article 5 (Calculation, etc. of Acquisition Price of Non-Performing Assets)
(1) The acquisition price of non-performing assets shall be based on objective prices, such as the price of collateral for a non-performing loan or non-business asset subject to acquisition appraised by an appraiser under the Act on Appraisal and Certified Appraisers, and shall reflect senior loans, real rights, the right to lease, etc. <Amended by Act No. 27472, Aug. 31, 2016>
(2) Where it is difficult to pre-determine the price of a non-performing loan pursuant to paragraph (1), an acquisition contract may be entered into on the condition that the difference between the acquisition price and disposal price of the non-performing loan be settled after the acquisition and disposal.
[This Article Wholly Amended by Presidential Decree No. 25279, Mar. 24, 2014]
 Article 6 (Priority Order of and Criteria for Acquisition of Non-Performing Assets)
(1) The Corporation may preferentially acquire any of the following non-performing assets to efficiently manage the Non-Performing Loan Liquidation Fund under Article 38 of the Act (hereinafter referred to as the "Fund") and the Corporate Restructuring Fund under Article 43-2 of the Act:
1. Non-performing assets it deems particularly necessary to acquire for the public interest, such as protecting the sound management of financial companies, etc.;
2. Non-performing assets, the impact of the liquidation of which is significant because there are many parties interested therein;
3. Non-performing assets, the disposal of which is less restricted by public law;
4. Non-performing assets in which case it is possible to readily recover the sale proceeds because the sale of non-performing assets is not disturbed at all.
(2) Where the execution of a mortgage after the acquisition of a non-performing loan is unlikely to yield substantive gains, such as where claims (including claims on public charges, such as national tax and local tax) which take precedence over other claims secured by the mortgage of a financial company, etc. settled on collateral for the non-performing loan exceed criteria prescribed in the operational rules (hereinafter referred to as "operational rules") of the Corporation under Article 26 (7) of the Act, the Corporation shall not acquire the non-performing loan.
[This Article Wholly Amended by Presidential Decree No. 25279, Mar. 24, 2014]
 Article 7 (Payment of Acquisition Price of Non-Performing Assets)
In principle, the acquisition price of non-performing assets shall be paid in cash: Provided, That the Corporation may partially or fully pay the acquisition price by the Non-Performing Loan Liquidation Fund Bonds under Article 40 of the Act and bonds of the Restructuring Fund under Article 43-3 (2) of the Act (hereinafter referred to as "Bonds") or corporate bonds under Article 33 of the Act following consultations with financial companies, etc.
[This Article Wholly Amended by Presidential Decree No. 25279, Mar. 24, 2014]
 Article 8 (Undertaking or Acquisition of Assets Subject to Self-Workout Plan of Enterprises Showing Signs of Insolvency)
(1) Where the Corporation undertakes the sale of assets subject to a self-workout plan of an enterprise showing signs of insolvency pursuant to Article 5 (2) of the Act, Article 3 shall apply mutatis mutandis to methods of and procedures for undertaking.
(2) Where the Corporation acquires assets subject to self-workout plan of an enterprise showing signs of insolvency pursuant to Article 5 (2) of the Act, Articles 4 (1), 5 (1) and 7 shall apply mutatis mutandis to procedures, etc. for the acquisition thereof. In such cases, methods for acquisition of such assets shall be as follows:
1. Real estate: Transfer of ownership;
2. Securities: Delivery of goods, or transfer of ownership, such as transfer of title;
3. Affiliated companies: Acquisition of stocks or equity stakes by which the Corporation may have control over the relevant company.
(3) The Corporation may preferentially acquire assets subject to a self-workout plan of an enterprise showing signs of insolvency it deems particularly necessary to acquire for the public interest as prescribed in the operational rules.
[This Article Wholly Amended by Presidential Decree No. 25279, Mar. 24, 2014]
 Article 9 (Method of Calculating, etc. Capital Contribution)
(1) The capital contribution under Article 9 (4) of the Act shall be calculated based on the amount of total assets, etc. of a financial company, etc. within 10/100 of the paid-in capital of each financial company, etc., as prescribed in the articles of incorporation of the Corporation: Provided, That a financial company, etc. under Article 2 may be excluded from among financial companies, etc. subject to investment following a resolution by the Committee.
(2) Capital contribution prescribed in paragraph (1) shall be paid in cash.
(3) A financial company, etc. shall pay the first capital contribution under paragraph (1) prior to completion of registration for the incorporation of the Corporation.
(4) Timing of payment of capital contribution, other than the first capital contribution under paragraph (3), shall be prescribed by the articles of incorporation.
[This Article Wholly Amended by Presidential Decree No. 25279, Mar. 24, 2014]
 Article 10 (Registration of Establishment of Branch Offices, etc.)
Where the Corporation establishes a branch office or local office, it shall register relevant matters according to the following classification:
1. The objective for establishing its branch office or local office: within two weeks at the location of the main office;
2. Matters referred to in Article 12 (2) 1 through 3 (excluding matters concerning the location of other branch offices and local offices) and 6 of the Act, and the name, resident registration number, and address of the president thereof: within three weeks at the location of a newly established branch office or local office.
[This Article Wholly Amended by Presidential Decree No. 25279, Mar. 24, 2014]
 Article 11 (Registration of Relocation)
(1) Where the Corporation relocates its main office, it shall register the reason for the relocation thereof at the seat of the former location within two weeks and matters referred to in the subparagraphs of Article 12 (2) of the Act at the new location within three weeks.
(2) Where the Corporation relocates its branch office or local office, it shall register the purpose of the relocation thereof at the former location within three weeks and matters referred to in subparagraph 2 of Article 10 of the Act at the new location within four weeks.
[This Article Wholly Amended by Presidential Decree No. 25279, Mar. 24, 2014]
 Article 12 (Registration of Changes)
Where any matter referred to in the subparagraphs of Article 12 (2) of the Act is changed, the Corporation shall register such matter at the seat of the main office within two weeks. In such cases, any matter referred to in subparagraph 2 of Article 10 is changed, the Corporation shall also register such matter at the seat of a branch office or local office within three weeks.
[This Article Wholly Amended by Presidential Decree No. 25279, Mar. 24, 2014]
 Article 13 (Registration of Appointed Representatives)
When the president of the Corporation appoints a representative (limited to a representative with comprehensive right of representation on business) pursuant to Article 23 of the Act, he/she shall register the following matters at the location of the main office, a branch office or local office to which he/she has assigned such representative, within two weeks:
1. Name, resident registration number, and address of the representative;
2. Where the authority of the representative is restricted, details of such restrictions.
[This Article Wholly Amended by Presidential Decree No. 25279, Mar. 24, 2014]
 Article 14 (Counting of Period for Registration)
Where any matter subject to authorization or approval by the Financial Services Commission exists, among the matters to be registered pursuant to Articles 10 through 13, the period for registration shall be counted from the date on which a letter of authorization or letter of approval of the relevant matters arrives.
[This Article Wholly Amended by Presidential Decree No. 25279, Mar. 24, 2014]
 Article 15 (Applicants, etc. for Registration)
(1) The president of the Corporation shall file an application for registration under Articles 10 through 13.
(2) Each application for registration under Articles 10 through 13 shall be accompanied by documents proving grounds for such application.
[This Article Wholly Amended by Presidential Decree No. 25279, Mar. 24, 2014]
 Article 16 (Value of Acquisition of Non-Performing Assets, etc. Subject to Deliberation and Resolution by Committee)
"Non-performing assets exceeding the value prescribed by Presidential Decree" in Article 14 (2) 7 of the Act means any of the following:
1. Non-performing assets, the amount of acquisition of which at least ten billion won, which meet criteria prescribed in the operational rules;
2. Non-performing assets, the amount of acquisition of which is at least five billion won among non-performing assets the Corporation preferentially acquires pursuant to Article 6 (1) 1, which meet criteria prescribed in the operational rules;
3. Real estate requiring development, the expected development cost of which exceeds the expected acquisition price of real estate subject to acquisition, among real estate purchased pursuant to Article 26 (1) 12 of the Act (limited to real estate falling under subparagraphs 1, 5 and 7 of the aforesaid paragraph), which meets criteria prescribed in the operational rules.
[This Article Wholly Amended by Presidential Decree No. 25279, Mar. 24, 2014]
 Article 17 (Qualification for Commissioned Members of Committee)
The members commissioned by the Financial Services Commission pursuant to Article 15 (1) 7 of the Act shall be persons not falling under any ground for disqualification for executives of the Corporation under Article 19 of the Act.
[This Article Wholly Amended by Presidential Decree No. 25279, Mar. 24, 2014]
 Article 18 (Operation of Committee)
(1) With respect to the proceedings of the Committee, minutes shall be prepared, and the chairperson and all members present shall sign and seal such minutes.
(2) No member of the Committee shall attend a meeting to discuss any matter in which he/she, or his/her relative, has a direct interest, or matters in which an institution or company to which he/she belongs has a direct interest.
(3) Allowances may be paid to members attending the meeting of the Committee within the budgetary limits of the Corporation.
(4) In addition to matters provided for in this Decree, matters necessary for the operation of the Committee shall be determined by the chairperson following a resolution by the Committee.
[This Article Wholly Amended by Presidential Decree No. 25279, Mar. 24, 2014]
 Article 18-2 (Limits on Guarantees)
"Extent prescribed by Presidential Decree" in Article 26 (1) 3 (c) of the Act means 300/100 of the aggregate of paid-in capital, legal reserve of retained earnings, and business expansion reserve of the Corporation.
[This Article Wholly Amended by Presidential Decree No. 25279, Mar. 24, 2014]
 Article 18-3 (Companies Eligible for Financing and Investment)
"Companies prescribed by Presidential Decree" in Article 26 (1) 14 of the Act means any of the following: <Amended by Act No. 26600, Oct. 23, 2015>
1. An investment company established in a foreign country for financing of and investment in overseas non-performing assets (hereinafter referred to as "overseas investment, etc.") or collective investment vehicle corresponding thereto (hereinafter referred to as "investment company, etc.");
3. A special-purpose company established in the Republic of Korea or a foreign country for the purpose of overseas investment, etc. in an investment company, etc.;
4. An asset management company established for the management of overseas non-performing assets acquired by a special-purpose company;
5. Other domestic companies recognized by the Financial Services Commission as necessary to make overseas investment, etc.
[This Article Wholly Amended by Presidential Decree No. 25279, Mar. 24, 2014]
 Article 19 (Incidental Services Provided by Corporation)
"Services prescribed by Presidential Decree" in Article 26 (1) 16 of the Act means the following services:
1. Arrangement of mergers and acquisitions to support a self-rescue plan of enterprises showing signs of insolvency;
2. Conducting affairs on behalf of a company established to conduct affairs under Article 26 (1) 13 and 14 of the Act;
3. Advice and consultation on the use and development of real estate;
4. Credit guarantee services approved by the Committee, for reducing the financing cost due to high interest rates of a person falling under subparagraph 25 (b) through (d) of Article 2;
5. Other services deemed necessary by the Financial Services Commission, which are incidental services for achieving the purposes of establishment of the Corporation, such as the liquidation of non-performing assets and support for the management normalization of enterprises showing signs of insolvency.
[This Article Wholly Amended by Presidential Decree No. 25279, Mar. 24, 2014]
 Article 20 (Scope, Criteria, etc. of Real Estate for Development)
(1) The scope, criteria, etc. of real estate for development under Article 26 (5) of the Act shall be any of the following real estate, expected to be liquidated promptly at an appropriate price where it is developed (referring to land improvement, such as subdivision, consolidation, alteration of the shape and quality of land, or construction, such as construction or extension of a building, and conversion of use; hereinafter the same shall apply) among real estate, in which case it is difficult to liquidate it as is or to liquidate it at a reasonable price:
1. In cases of urban areas (referring to urban areas under subparagraph 1 of Article 6 of the National Land Planning and Utilization Act; hereinafter the same shall apply): Real estate, the development cost of which does not exceed five times the acquisition price of real estate for development;
2. In cases of non-urban areas: Real estate, the development cost of which does not exceed ten times the acquisition price of real estate for development.
(2) Notwithstanding paragraph (1), any of the following real estate may be deemed real estate for development after obtaining approval from the Committee, which has no obstacle to sale:
1. Real estate, development of which may settle complaints of a large number of residents living in neighboring areas or contribute to convenience of residents;
2. Real estate, concerning which a local government or public organization requests the Corporation to develop it for the regional development or other public interest.
(3) For the purposes of paragraph (1) 1 and 2, expenses incurred in development shall not include an increased portion of expenses for inevitable grounds, such as design changes for reasons not ascertainable in advance.
[This Article Wholly Amended by Presidential Decree No. 25279, Mar. 24, 2014]
 Article 20-2 (Limits on Financing and Investment)
The limits on the total amount of overseas investments, etc. under Article 26 (6) of the Act shall be within 20/100 of the equity capital of the Corporation as at the end of the immediately preceding year.
[This Article Wholly Amended by Presidential Decree No. 25279, Mar. 24, 2014]
 Article 20-3 (Establishment and Composition of Overseas Investment Risk Control Committee)
(1) The Overseas Investment Risk Management Committee (hereinafter referred to as the "Risk Management Committee") shall be established in the Corporation to manage risks of overseas investments, etc. (hereinafter referred to as "overseas investment risks") pursuant to Article 26 (6) of the Act.
(2) The Risk Management Committee shall deliberate on the following:
1. Matters concerning a basic plan and guidelines for overseas investment risk management;
2. Matters concerning overseas investment risk management and the formulation of countermeasures against overseas investment risks;
3. Matters concerning the validity of overseas investment, etc. and the establishment of limits on each investment;
4. Matters concerning contracts with companies involved in overseas investment, etc.;
5. Other matters referred to meetings by the chairperson concerning overseas investment risk management.
(3) The Risk Management Committee shall be comprised of seven members, including one chairperson.
(4) The vice president of the Corporation shall be the chairperson, and five persons commissioned by the president from among the following persons, and one executive in charge of overseas business shall be members:
1. Those with profound knowledge of and extensive experience in the fields of the finance industry or in investment;
2. Attorneys-at-law;
3. Certified public accountants.
(5) The term of office of the members shall be two years: Provided, That the term of office of an ex officio member shall be the period during which he/she holds office.
[This Article Wholly Amended by Presidential Decree No. 25279, Mar. 24, 2014]
 Article 20-4 (Operation of Risk Management Committee)
(1) The chairperson shall convene a meeting of the Risk Management Committee when more than 1/3 of the incumbent members request him/her to convene a meeting or he/she deems a meeting necessary.
(2) The Risk Management Committee shall hold a meeting when a majority of the incumbent members attend the meeting, and pass resolutions with the consent of a majority of the members present.
(3) In addition to matters provided for in this Decree, matters necessary for the operation of the Risk Management Committee shall be determined by the chairperson following a resolution by the Risk Management Committee.
[This Article Wholly Amended by Presidential Decree No. 25279, Mar. 24, 2014]
 Article 21 (Scope of, Criteria for and Procedure for Purchasing Adjoining Real Estate)
(1) The adjoining real estate under Article 27 (2) of the Act shall be real estate inseparably related to real estate subject to acquisition in terms of land use: Provided, That real estate, the size and value of which exceed the size and value of real estate subject to acquisition shall be excluded.
(2) Where the Corporation intends to purchase adjoining real estate, it shall consult its owner about the terms and conditions of purchase, based on objective prices, such as the price appraised by an appraiser under the Act on Appraisal and Certified Appraisers. <Amended by Act No. 27472, Aug. 31, 2016>
[This Article Wholly Amended by Presidential Decree No. 25279, Mar. 24, 2014]
 Article 22 Deleted. <by Presidential Decree No. 19299, Jan. 27, 2006>
 Article 23 Deleted. <by Presidential Decree No. 21049, Sep. 26, 2008>
 Article 24 (Form of Bonds)
Bonds shall be in bearer form: Provided, That where a subscriber or bondholder so requests, bonds may be issued in registered form.
[This Article Wholly Amended by Presidential Decree No. 25279, Mar. 24, 2014]
 Article 25 (Method of Issuing Bonds)
Where the Corporation issues bonds, it shall issue bonds by means of offering, firm commitment underwriting or sale.
[This Article Wholly Amended by Presidential Decree No. 25279, Mar. 24, 2014]
 Article 26 (Subscription for Bonds, etc.)
(1) Where the Corporation intends to issue bonds by means of offering, it shall prepare and issue a subscription for bonds including the following:
1. Name of the Corporation;
2. Total amount of bonds to be issued;
3. Par value of bonds of each type of bond;
4. Interest rate of bonds;
5. Method of and period for redemption of the principal;
6. Method of and period for payment of interest;
7. Issuance price of bonds or minimum issue price thereof;
8. Where any bonds have been unredeemed, the total value thereof.
(2) Any person who intends to subscribe for bonds shall enter the quantity and value of bonds for which he/she intends to subscribe and the address of the subscriber with two copies of a written subscription for bonds under paragraph (1) and sign and seal, or sign such subscription for bonds, and submit the subscription for bonds to the Corporation. In such cases, if the bonds are issued with the minimum value fixed, he/she shall enter the value of subscription in a subscription for bonds.
[This Article Wholly Amended by Presidential Decree No. 25279, Mar. 24, 2014]
 Article 27 (Methods of Firm Commitment Underwriting and Sale)
(1) Article 26 shall not apply where the Corporation issues bonds through firm commitment underwriting. Where a person entrusted with bond offering underwrites a portion of the bonds, the same shall apply to the underwritten portion of such bonds.
(2) Where the Corporation intends to issue bonds by sale, it shall publicly announce matters referred to in subparagraphs 1 through 6 of Article 26 (1) and the period of sale in advance.
[This Article Wholly Amended by Presidential Decree No. 25279, Mar. 24, 2014]
 Article 28 (Total Value of Bonds Issued)
(1) When the Corporation issues bonds pursuant to Article 26, it may issue bonds even when the total value of bonds actually subscribed for falls short of the total value of bonds to be issued stated in the subscription for bonds. In such cases, such effect shall be mentioned in the subscription for bonds.
(2) In cases falling under paragraph (1), the total value of such bonds subscribed shall be the total value of bonds issued.
[This Article Wholly Amended by Presidential Decree No. 25279, Mar. 24, 2014]
 Article 29 (Payment, etc. of Value of Bonds Underwritten)
(1) When subscriptions for bonds are closed, the Corporation shall pay the total amount of bonds underwritten by subscribers without delay.
(2) A person entrusted with bond offering may perform the act under paragraph (1) in his/her own name, on behalf of the Corporation.
(3) The Corporation shall not issue bonds unless the total amount of payments equivalent to the total value of bonds issued is paid: Provided, That the foregoing shall not apply where it issues bonds by sale.
[This Article Wholly Amended by Presidential Decree No. 25279, Mar. 24, 2014]
 Article 30 (Matters to be Indicated on Bonds)
The following matters shall be indicated on bonds and the president of the Corporation shall sign and seal such bonds:
1. Matters referred to in Article 26 (1) 1 through 6 (when the Corporation issues bond by sale, excluding the matter referred to in subparagraph 2 of the aforesaid paragraph);
2. Serial numbers of bonds;
3. Date of issuance of bonds.
[This Article Wholly Amended by Presidential Decree No. 25279, Mar. 24, 2014]
 Article 31 (Bond Ledger)
(1) The Corporation shall keep a bond ledger at its main office and record the following matters therein:
1. Number of bonds by denomination and issuance number of each bond;
2. Date of issuance of each bond;
3. Matters referred to in Article 26 (1) 2 through 6.
(2) Where a bond is in registered form, the following matters shall be indicated thereon, in addition to matters referred to in the subparagraphs of paragraph (1):
1. Name and address of a bondholder;
2. Date of acquisition of the bond.
(3) A holder or bearer of a bond may request the Corporation to allow him/her to read the bond ledger.
[This Article Wholly Amended by Presidential Decree No. 25279, Mar. 24, 2014]
 Article 32 (Transfer of Bonds in Registered Form)
The transfer of a bond in registered form shall not prevail against the Corporation or any third person unless the matters in each subparagraph of Article 31 (2) are stated in the bond ledger.
[This Article Wholly Amended by Presidential Decree No. 25279, Mar. 24, 2014]
 Article 33 (Establishment of Right of Pledge over Bonds in Registered Form)
(1) Where a bond in registered form becomes the objective of the right of pledge, a pledgee shall not prevail against the Corporation or any other third party unless the name and address of the pledgee is registered in the bond ledger.
(2) Where a right of pledge is established pursuant to paragraph (1), the Corporation shall state such effect on the relevant bond.
[This Article Wholly Amended by Presidential Decree No. 25279, Mar. 24, 2014]
 Article 34 (Cases of Defective Coupons)
(1) Where the Corporation redeems a bond in bearer form with the coupons, if any defect exists in a coupon, the value equivalent to such coupons shall be deducted from the value of redemption.
(2) A bearer of coupons falling under paragraph (1) may request the Corporation to pay the value deducted in exchange for such coupons.
[This Article Wholly Amended by Presidential Decree No. 25279, Mar. 24, 2014]
 Article 35 (Notice, etc. to Bondholders)
(1) A notice or peremptory notice to subscribers or entitled persons before the issuance of bonds, shall be sent to the address mentioned in subscriptions for bonds. In such cases, if the Corporation has been notified of another address, the notice or peremptory notice shall be sent to such address.
(2) A notice or peremptory notice to bondholders of a bond in registered form shall be sent to the address stated in the bond ledger. In such cases, if the Corporation has been notified of another address, the notice or peremptory notice shall be sent to such address.
(3) A notice or peremptory notice to bondholders of a bond in bearer form shall be issued by means of public notice.
[This Article Wholly Amended by Presidential Decree No. 25279, Mar. 24, 2014]
 Article 36 (Reporting)
Where the Corporation completes the issuance of bonds, it shall report the details thereof to the Financial Services Commission upon issuance of bonds.
[This Article Wholly Amended by Presidential Decree No. 25279, Mar. 24, 2014]
 Article 36-2 (Scope of Public Organizations)
“Public organizations prescribed by Presidential Decree” in Article 36 (1) means public institutions referred to in Article 4 of the Act on the Management of Public Institutions.
[This Article Newly Inserted by Presidential Decree No. 26543, Sep. 22, 2015]
 Article 37 (Scope of Assets Subject to Self-Workout Plan of Enterprises Showing Signs of Insolvency Acquired by Fund)
(1) "Assets subject to self-workout plan of the enterprises showing signs of insolvency prescribed by Presidential decree" in Article 41 (2) 1 of the Act mean assets subject to a self-workout plan, the amount of which to be acquired is at least five billion won, which meet criteria prescribed in the operational rules.
(2) The annual amount of funds under the proviso to Article 41 (2) 1 of the Act means the annual amount of funds actually expended according to a plan for operation of the Fund under Article 42 (1) of the Act.
[This Article Wholly Amended by Presidential Decree No. 25279, Mar. 24, 2014]
 Article 38 (Handling of Personally Identifiable Information)
To conduct the following affairs, the Financial Services Commission (limited to affairs under subparagraphs 5 and 6; in cases of affairs under subparagraph 6, and including a person to whom is outsourced the management of the affairs of the Financial Services Commission pursuant to Article 48 (2) of the Act) or the Corporation may, in extenuating circumstances, handle materials in which any resident registration number, passport number, driver's license number, foreign registration number, or domestic residence report number is stated pursuant to Article 29 of the Enforcement Decree of the Credit Information Use and Protection Act: <Amended by Act No. 26543, Sep. 22, 2015>
1. Efficient disposal of non-performing assets, etc. under Article 26 of the Act;
2. Facilitating disposal of real estate under Article 27 of the Act;
3. Leasing, operation, etc. of movable assets, real estate, and affiliated companies under Article 28 of the Act;
4. Requests for the provision of materials and the use thereof under Article 36 of the Act;
5. Supervision under Article 47 of the Act and the measures subsequent thereto;
6. Reporting and examination under Article 48 of the Act and the measures subsequent thereto.
[This Article Newly Inserted by Presidential Decree No. 23488, Jan. 6, 2012]
ADDENDA
Article 1 (Enforcement Date)
This Decree shall enter into force on November 23, 1997: Provided, That the provisions of Articles 5 and 6 of the Addenda shall enter into force on the date of its promulgation.
Article 2 (Repeal of other Acts and Subordinate Statutes)
Article 3 (Disposal of Residual Assets of Fund)
(1) The term "standards of disposal taking the rate of contribution, etc. into consideration" as used in the main sentence of Article 2 (5) of the Addenda to the Act means that a person who has contributed under Article 39 (1) 1 (referring to the subparagraph before repeal pursuant to the amended Act, Act No. 7058, of the Framework Act on the Management of Charges) through 3 and 3-2 of the Act (hereinafter referred to as the "contributing agency") distributes the residual assets at the rate of the total amount of a contribution, etc. made during the period for management of the Fund. <Amended by Presidential Decree No. 21049, Sep. 26, 2008>
(2) The residual assets of the Fund shall be returned in cash according to the rate of contribution to the Fund: Provided, That where an agreement with the contributing agency is reached, it may be returned in kind by a method determined by the Committee. <Amended by Presidential Decree No. 21049, Sep. 26, 2008>
(3) When the Corporation intends to return the residual assets of the Fund, it shall prepare a list of assets and a balance sheet of the Fund in advance and obtain approval from the Committee therefor, and upon returning the residual assets, it shall report to the Committee without delay, after preparing a written report on the settlement of accounts: Provided, That where it returns some of the residual assets of the Fund before completion of the period for management of the Fund pursuant to the proviso to Article 2 (5) of the Addenda of the Act, it may draw up a statement of accounts within two months after completion of the relevant fiscal year and report it to the Committee. <Amended by Presidential Decree No. 21049, Sep. 26, 2008>
Article 4 (Transfer of Reserves to Capital)
(1) The reserve under Article 6 (2) of the Addenda of the Act shall be an amount obtained by deducting the book value of the assets in possession, taxes, and public charges to be imposed, and liability-natured reserves to be appropriated from the sum of surplus profits and value of appraisal of the assets in possession as of the day preceding the date of registration of establishment of the Corporation (hereinafter referred to as "date of registration of establishment"). In such cases, the appraised value of the assets in possession shall be as classified in each of the following:
1. Real estate: The value appraised and assessed by an appraisal business operator under the Public Notice of Values and Appraisal of Lands, etc. Act within three months before the date of registration for establishment;
2. Assets other than real estate: The value assessed by a practice generally accepted as fair and proper as the criteria or practice of corporate accounting on the date preceding the date of registration for establishment.
(2) The reserve under paragraph (1) shall revert to the Korea Development Bank on the date of registration for establishment and be deemed invested in the Corporation by the Korea Development Bank.
(3) Other necessary matters concerning the transfer of the reserve into the capital under paragraph (1) shall be determined by the articles of incorporation.
Article 5 (Special Cases concerning Payment of Initial Investment and Contribution, etc.)
With respect to the initial investment and contribution under Articles 9 and 22, financial institutions subjects of investment and contributions, calculation method of investment an contribution, timing for payment, etc. shall be determined by the Establishment Committee under Article 3 of the Addenda of the Act (hereinafter referred to as the "Establishment Committee").
Article 6 (Special Cases concerning Preparation for Issuance of Bonds)
Before the Corporation completes registration for establishment, necessary matters concerning the issuance of the Bonds, such as application for the guarantee of obligations for the redemption of the principal and interest of the Bonds under Article 40 (4) of the Act shall be determined by the Establishment Committee.
Article 7 Omitted.
ADDENDA <Presidential Decree No. 15761, Apr. 1, 1998>
(1) (Enforcement Date) This Decree shall enter into force on the date of its promulgation.
(2) (Transitional Measures concerning Scope of Persons Engaged in Supervision in Supervisory Agencies in Application of Penal Provisions) Notwithstanding the amended provisions of Article 10, the previous provisions shall apply, for the purposes of the penal provisions, to activities conducted by a person engaged in supervision in a supervisory agency before this Decree enters into force.
(3) (Transitional Measures concerning Registration Standards for Credit Information) A credit information business operator or credit information concentration institution, etc. shall register, change, manage and delete credit information in accordance with standards and procedures established by the Minister of Finance and Economy pursuant to the previous Article 10 of the Enforcement Decree of the Use and Protection of Credit Information Act until the Financial Services Commission establishes standards and procedures pursuant to the amended provisions of Article 10 of the Enforcement Decree of the Use and Protection of Credit Information Act.
(4) (Transitional Measures concerning Dispositions, etc.) Authorization granted by administrative agencies, etc. or other activities or various reports or other activities against administrative agencies in accordance with the previous provisions, as at the time this Decree enters into force, shall be deemed activities conducted by administrative agencies or activities against administrative agencies in accordance with this Decree.
ADDENDA <Presidential Decree No. 16234, Apr. 9, 1999>
Article 1 (Enforcement Date)
This Decree shall enter into force on the date of its promulgation.
Article 2 Omitted.
ADDENDUM <Presidential Decree No. 16476, Jul. 23, 1999>
This Decree shall enter into force on the date of its promulgation.
ADDENDUM <Presidential Decree No. 16604, Nov. 27, 1999>
This Decree shall enter into force on the date of its promulgation.
ADDENDA <Presidential Decree No. 16709, Feb. 14, 2000>
Article 1 (Enforcement Date)
This Decree shall enter into force on the date of its promulgation.
Article 2 Omitted.
ADDENDA <Presidential Decree No. 16757, Mar. 24, 2000>
Article 1 (Enforcement Date)
This Decree shall enter into force on July 1, 2000. (Proviso Omitted.)
Articles 2 through 6 Omitted.
ADDENDUM <Presidential Decree No. 16821, May 29, 2000>
This Decree shall enter into force on the date of its promulgation.
ADDENDA <Presidential Decree No. 17791, Dec. 5, 2002>
Article 1 (Enforcement Date)
This Decree shall enter into force on the date of its promulgation.
Articles 2 and 3 Omitted.
ADDENDA <Presidential Decree No. 17816, Dec. 26, 2002>
Article 1 (Enforcement Date)
This Decree shall enter into force on January 1, 2003.
Articles 2 through 17 Omitted.
ADDENDUM <Presidential Decree No. 19299, Jan. 27, 2006>
This Decree shall enter into force on January 30, 2006.
ADDENDA <Presidential Decree No. 20653, Feb. 29, 2008>
Article 1 (Enforcement Date)
This Decree shall enter into force on the date of its promulgation: Provided, That each amendment to Presidential Decrees the date of which has not arrived even though they have been promulgated before this Decree enters into force, among the Presidential Decrees to be amended pursuant to Article 2 of the Addenda shall enter into force on the date of the relevant Presidential Decree enters into force.
Article 2 Omitted.
ADDENDA <Presidential Decree No. 20947, Jul. 29, 2008>
Article 1 (Enforcement Date)
This Decree shall enter into force on February 4, 2009. (Proviso Omitted.)
Articles 2 through 28 Omitted.
ADDENDUM <Presidential Decree No. 21049, Sep. 26, 2008>
This Decree shall enter into force on the date of its promulgation.
ADDENDUM <Presidential Decree No. 21156, Dec. 3, 2008>
This Decree shall enter into force on the date of its promulgation.
ADDENDA <Presidential Decree No. 21480, May 6, 2009>
Article 1 (Enforcement Date)
This Decree shall enter into force on May 8, 2009.
Articles 2 and 3 Omitted.
ADDENDA <Presidential Decree No. 21512, May 28, 2009>
Article 1 (Enforcement Date)
This Decree shall enter into force on the date of its promulgation: Provided, That the amended provisions of subparagraph 29 (d) of Article 2 shall enter into force on October 2, 2009.
Article 2 (Disposal of Residual Property of Corporate Restructuring Fund)
(1) For the purposes of the main sentence of Article 2 (3) of the Addenda of the amended Act on the Efficient disposal of Non-Performing Assets, etc. of Financial Institutions and the Establishment of Korea Asset Management Corporation (Act No. 9670), the Corporation shall prepare a list of property of Corporate Restructuring Fund and balance sheets and obtain prior approval from the Committee, in order to devolve residual property of Corporate Restructuring Fund on the National Treasury, and thereafter prepare the report on the settlement of accounts, without delay, after the devolvement on the National Treasury and report it to the Committee: Provided, That, for the purposes of the proviso to Article 2 (3) of the Addenda of the amended Act on the Efficient disposal of Non-Performing Assets, etc. of Financial Institutions and the Establishment of Korea Asset Management Corporation (Act No. 9670), the Corporation may prepare the report on the settlement of accounts within two months from the end of the relevant fiscal year and then report to the Committee if part of the residual property of Corporate Restructuring Fund is devolved on the National Treasury before the terms of management expire.
(2) The residual property of Corporate Restructuring Fund shall be devolved on the National Treasury in cash: Provided, That if consultation is made with the Minister of Strategy and Finance, the property may be devolved on the National Treasury in kind.
ADDENDA <Presidential Decree No. 21518, May 29, 2009>
Article 1 (Enforcement Date)
This Decree shall enter into force on June 1, 2009.
Articles 2 and 3 Omitted.
ADDENDA <Presidential Decree No. 21835, Nov. 20, 2009>
Article 1 (Enforcement Date)
This Decree shall enter into force on November 22, 2009.
Articles 2 and 3 Omitted.
ADDENDA <Presidential Decree No. 22493, Nov. 15, 2010>
Article 1 (Enforcement Date)
This Decree shall enter into force on November 18, 2010.
Articles 2 through 5 Omitted.
ADDENDA <Presidential Decree No. 23488, Jan. 6, 2012>
Article 1 (Enforcement Date)
This Decree shall enter into force on the date of its promulgation. (Proviso Omitted.)
Article 2 Omitted.
ADDENDA <Presidential Decree No. 24077, Aug. 31, 2012>
Article 1 (Enforcement Date)
This Decree shall enter into force on September 1, 2012. (Proviso Omitted.)
Articles 2 through 9 Omitted.
ADDENDA <Presidential Decree No. 25279, Mar. 24, 2014>
Article 1 (Enforcement Date)
This Decree shall enter into force on the date of its promulgation.
Article 2 Omitted.
Article 3 (Relationship to Other Acts)
Where the former Enforcement Decree of the Act on the Efficient Disposal of Non-Performing Assets, etc. of Financial Institutions and the Establishment of Korea Asset Management Corporation, or the provision thereof, is cited by any other Act or subordinate statute at the time this Decree enters into force, if such provision corresponding thereto exists in this Decree, this Decree or the relevant provision of this Decree is deemed cited in lieu of the former Enforcement Decree of the Act on the Efficient Disposal of Non-Performing Assets, etc. of Financial Institutions and the Establishment of Korea Asset Management Corporation, or any provision thereof.
ADDENDA <Presidential Decree No. 25945, Dec. 30, 2014>
Article 1 (Enforcement Date)
This Decree shall enter into force on the date a merger under Article 4 (6) of Addenda to the wholly amended Korea Development Bank Act (Act No. 12663) is registered.
Articles 2 through 5 Omitted.
ADDENDA <Presidential Decree No. 26369, Jun. 30, 2015>
Article 1 (Enforcement Date)
This Decree shall enter into force on July 1, 2015.
Articles 2 through 4 Omitted.
ADDENDUM <Presidential Decree No. 26543, Sep. 22, 2015>
This Decree shall enter into force on September 28, 2015.
ADDENDA <Presidential Decree No. 26600, Oct. 23, 2015>
Article 1 (Enforcement Date)
This Decree shall enter into force on October 25, 2015. (Proviso Omitted.)
Articles 2 through 9 Omitted.
ADDENDA <Presidential Decree No. 27037, Mar. 11, 2016>
Article 1 (Enforcement Date)
This Decree shall enter into force on the date of its promulgation.
Article 2 Omitted.
ADDENDA <Presidential Decree No. 27205, May 31, 2016>
Article 1 (Enforcement Date)
This Decree shall enter into force on September 30, 2016. (Proviso Omitted.)
Articles 2 and 3 Omitted.
ADDENDA <Presidential Decree No. 27472, Aug. 31, 2016>
Article 1 (Enforcement Date)
This Decree shall enter into force on September 1, 2016.
Articles 2 through 7 Omitted.
ADDENDA <Presidential Decree No. 27511, Sep. 22, 2016>
Article 1 (Enforcement Date)
This Decree shall enter into force on September 23, 2016.
Articles 2 through 8 Omitted.