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ENFORCEMENT DECREE OF THE ASSET-BACKED SECURITIZATION ACT

Presidential Decree No. 16769, Apr. 1, 2000

Amended by Presidential Decree No. 16994, Oct. 31, 2000

Presidential Decree No. 17422, Dec. 15, 2001

Presidential Decree No. 17791, Dec. 5, 2002

Presidential Decree No. 18146, Nov. 29, 2003

Presidential Decree No. 18297, Feb. 28, 2004

Presidential Decree No. 18312, Mar. 17, 2004

Presidential Decree No. 20261, Sep. 10, 2007

Presidential Decree No. 20653, Feb. 29, 2008

Presidential Decree No. 20947, Jul. 29, 2008

Presidential Decree No. 21480, May 6, 2009

Presidential Decree No. 21518, May 29, 2009

Presidential Decree No. 21765, Oct. 1, 2009

Presidential Decree No. 21835, Nov. 20, 2009

Presidential Decree No. 23488, Jan. 6, 2012

Presidential Decree No. 25532, Aug. 6, 2014

Presidential Decree No. 25945, Dec. 30, 2014

Presidential Decree No. 26369, jun. 30, 2015

Presidential Decree No. 27037, Mar. 11, 2016

Presidential Decree No. 27205, May 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 Asset-Backed Securitization Act and for those necessary for the enforcement thereof.
 Article 2 (Originator)
The term "persons specified by Presidential Decree" in subparagraph 2 (r) of Article 2 of the Asset-Backed Securitization Act (hereinafter referred to as the "Act") means the following entities: <Amended by Presidential Decree No. 16994, Oct. 31, 2000; Presidential Decree No. 17422, Dec. 15, 2001; Presidential Decree No. 17791, Dec. 5, 2002; Presidential Decree No. 18146, Nov. 29, 2003; Presidential Decree No. 18297, Feb. 28, 2004; Presidential Decree No. 20261, Sep. 10, 2007; Presidential Decree No. 20947, Jul. 29, 2008; Presidential Decree No. 21480, May 6, 2009; Presidential Decree No. 21518, May 29, 2009; Presidential Decree No. 21835, Nov. 20, 2009; Presidential Decree No. 26369, Jun. 30, 2015; Presidential Decree No. 27037, Mar. 11, 2016; Presidential Decree No. 27205, May 31, 2016; Presidential Decree No. 27511, Sep. 22, 2016>
1. The Korea Deposit Insurance Corporation or a financial company authorized to perform liquidation under the Depositor Protection Act;
2. The Small and Medium Business Corporation established under the Small and Medium Enterprises Promotion Act;
3. A special purpose company for mortgage-backed bonds established under the Act on Special-Purpose Companies for Mortgage-Backed Bonds;
4. A trust business entity established under the Financial Investment Services and Capital Markets Act;
5. A company specializing in corporate restructuring registered under Article 14 of the Industrial Development Act (referring to the previous Industrial Development Act which was wholly amended by Act No. 9584);
6. The Credit Guarantee Fund established under the Credit Guarantee Fund Act or the Korea Technology Guarantee Fund established under the Korea Technology Finance Corporation Act;
7. The Korea Housing and Urban Guarantee Corporation established under the Housing and Urban Fund Act;
8. A local public enterprise carrying on any housing business or land development business under the Local Public Enterprises Act;
9. A cooperative established under the Agricultural Cooperatives Act or the Fisheries Cooperatives Act (limited to a cooperative the loan size of which is not less than one hundred billion won);
10. An agricultural cooperative assets management company established under the Act on the Structural Improvement of Agricultural Cooperatives; and
11. The Korea Housing Finance Corporation established under the Korea Housing Finance Corporation Act;
12. The Korea Inclusive Finance Agency established under Article 3 of the Microfinance Support Act.
 Article 3 (Entries in Asset-backed Securitization Plan)
The term "other matters prescribed by Presidential Decree" in subparagraph 8 of Article 4 of the Act means the following:
1. Matters relating to the protection of investors in asset-backed securities;
2. In borrowing funds in connection with the asset-backed securitization in question, plans for such borrowing.
 Article 4 (Registration of Transfer, etc. of Assets)
(1) If any originator, special purpose company, foreign corporation specializing in the business of asset-backed securitization or trust business entity that registers the transfer, etc. of securitization assets under Article 6 (1) of the Act (hereinafter referred to as the "special purpose company, etc.") makes a request for the issuance of a document verifying such registration, the Financial Services Commission shall, without delay, issue it. <Amended by Presidential Decree No. 20653, Feb. 29, 2008; Presidential Decree No. 20947, Jul. 29, 2008>
(2) Any special purpose company, etc. shall designate the person responsible for managing a contract for, and a registration completion certificate and registration certificate of, the transfer, etc. of securitization assets and other relevant documentary evidence to preserve and manage them under Article 6 (4) of the Act.
(3) In designating the person responsible for the management under paragraph (2), any special purpose company, etc. shall designate a person other than the originator in question: Provided, That this provision shall not apply when the originator in question and a person other than the originator in question preserve and manage the original and a copy (including an electronic record), respectively, which can be made available to the Financial Services Commission or investors. <Amended by Presidential Decree No. 20653, Feb. 29, 2008>
 Article 5 (Caretaker)
The term "person who meets the requirements prescribed by Presidential Decree" in Article 10 (1) 3 of the Act means any corporation which meets the following requirements: <Amended by Presidential Decree No. 20653, Feb. 29, 2008; Presidential Decree No. 21765, Oct. 1, 2009>
1. Its capital shall amount to no less than one billion won;
2. The number of its managing officers, including five or more of the following experts, is to be twenty or more:
(a) Two or more attorneys-at-law, certified public accountants or appraisers;
(b) One or more persons who have performed such duties as are determined by the Financial Services Commission, including the management of claims, the issuance of securities, etc.;
3. Its officers or employees are not to fall under any subparagraph of Article 27 (1) of the Use and Protection of Credit Information Act;
4. If its largest investor is a foreigner, the foreigner is to specialize in the asset management business or to carry on such business in addition to any other business: Provided, That this provision shall not apply when a corporation whose largest investor is the foreigner (limited to a corporation) carries on the asset management business.
 Article 5-2 (Handling Personal Identification Information)
(1) The director of the Financial Services Commission (including a person who is entrusted with duties of the Financial Services Commission pursuant to Article 38), and the director of the Financial Supervisory Service under the Act on the Establishment, etc. of Financial Services Commission, may handle information that contains a resident registration number, a passport number, and an alien registration number under subparagraphs 1, 2 or 4 of Article 19 of the Enforcement Decree of the Personal Information Protection Act, if it is inevitable for any of the following: <Amended by Presidential Decree No. 25532, Aug. 6, 2014>
1. Registration of an asset-backed securitization plan under Article 3 of the Act;
2. Refusal, etc. of registration under Article 5 of the Act;
3. Transfer of securitization assets under Article 6 of the Act;
4. Appointment of a liquidator under Article 26 of the Act;
5. Investigation under Article 34 of the Act;
6. Order for business improvement under Article 34 of the Act;
7. Cancellation of asset-backed securitzation plans under Article 38-2 of the Act.
(2) A person who evaluates securitization assets pursuant to subparagraph 4 of Article 4 of the Act, originator, caretaker pursuant to Article 10 (1) of the Act, and a person entrusted with the affairs by a special purpose company pursuant to Article 23 (1) of the Act may handle information including resident registration numbers, passport numbers, and alien registration numbers under subparagraph 1, 2 or 4 of Article 19 of the Enforcement Decree of the Personal Information Protection Act, if it is inevitable for any of the following: <Newly Inserted by Presidential Decree No. 25532, Aug. 6, 2014>
1. Registration of asset-backed securitization plan pursuant to Article 3 of the Act;
2. Evaluation of securitization assets pursuant to subparagraph 4 of Article 4 of the Act;
3. Registration of transfer, etc. of securitization assets pursuant to Article 6 of the Act;
4. Management of securitization assets pursuant to Article 11 of the Act;
5. Business entrusted pursuant to Article 23 (1) of the Act.
[This Article Newly Inserted by Presidential Decree No. 23488, Jan. 6, 2012]
 Article 6 (Administrative Fine)
(1) The Financial Services Commission shall, when imposing an administrative fine under Article 42 (2) of the Act, give the person subject to such fine a written notice requesting payment which shall specify the fact of violation, the amount of such fine, etc. after investigating and confirming a violation involved. In such cases, the written notice requesting payment shall include the objection method, the objection period, etc. <Amended by Presidential Decree No. 20653, Feb. 29, 2008>
(2) The Financial Services Commission shall, if it intends to impose an administrative fine under paragraph (1), provide any person subject to such fine with an opportunity to present his/her case orally or in writing (including an electronic document) for a period of time of not less than ten days. In such cases, he/she shall be deemed to have no comment if no comment has been made by the designated date. <Amended by Presidential Decree No. 18312, Mar. 17, 2004; Presidential Decree No. 20653, Feb. 29, 2008>
(3) The Financial Services Commission shall, in determining the amount of an administrative fine, take into account the motive for a violation involved, the consequences thereof, etc. <Amended by Presidential Decree No. 20653, Feb. 29, 2008>
ADDENDUM
This Decree shall enter into force on the date of its promulgation.
ADDENDA <Presidential Decree No. 16994, Aug. 31, 2000>
(1) (Enforcement Date) This Decree shall enter into force on the date of its promulgation.
(2) Omitted.
ADDENDA <Presidential Decree No. 17422, Dec. 15, 2001>
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. 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. 18146, Nov. 29, 2003>
Article 1 (Enforcement Date)
This Decree shall enter into force on November 30, 2003.
Articles 2 through 15 Omitted.
ADDENDA <Presidential Decree No. 18297, Feb. 28, 2004>
Article 1 (Enforcement Date)
This Decree shall enter into force on March 1, 2004.
Articles 2 through 5 Omitted.
ADDENDUM <Presidential Decree No. 18312, Mar. 17, 2004>
This Decree shall enter into force on the date of its promulgation.
ADDENDA <Presidential Decree No. 20261, Sep. 10, 2007>
Article 1 (Enforcement Date)
This Decree shall enter into force on the date of its promulgation.
Articles 2 through 7 Omitted.
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 of Presidential Decree which is amended under Article 2 of the Addenda, the amended part of Presidential Decree promulgated prior to this Decree enters into force, but its enforcement date has not arrived, shall enter into force on the relevant Presidential Decree respectively.
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.
Articles 2 through 28 Omitted.
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. 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. 21765, Oct. 1, 2009>
Article 1 (Enforcement Date)
This Decree shall enter into force on the date of its promulgation.
Articles 2 through 5 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. 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.
ADDENDUM <Presidential Decree No. 25532, Aug. 6, 2014>
This Decree shall enter into force on August 7, 2014.
ADDENDA <Presidential Decree No. 25945, Dec. 30, 2014>
Article 1 (Enforcement Date)
This Decree shall enter into force on the date of registration of merger as prescribed in Article 4 (6) of Addenda to the whole amendment to the Korea Development Bank Act (Act No. 12663).
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.
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. 27511, Sep. 22, 2016>
Article 1 (Enforcement Date)
This Decree shall enter into force on September 23, 2016.
Articles 2 through 8 Omitted.