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ENFORCEMENT DECREE OF THE MICROFINANCE SUPPORT ACT

Presidential Decree No. 27511, Sep. 22, 2016

Amended by Presidential Decree No. 28218, Jul. 26, 2017

CHAPTER I GENERAL PROVISIONS
 Article 1 (Purpose)
The purpose of this Decree is to provide for the matters delegated by the Microfinance Support Act and matters necessary for the enforcement thereof.
 Article 2 (Scope of Financial Companies)
"Any person prescribed by Presidential Decree" in subparagraph 1 (n) of Article 2 of the Microfinance Support Act (hereinafter referred to as the “Act”), means a securities finance company authorized under Article 324 (1) of the Financial Investment Services and Capital Markets Act.
 Article 3 (Microfinance Businesses)
"Businesses prescribed by Presidential Decree" in subparagraph 5 (e) of Article 5 of the Act, means the following businesses:
1. Business of lending unsecured loans to support business operations of micro business proprietors;
2. Business of lending unsecured loans to support social enterprises under the Social Enterprise Promotion Act;
3. Other businesses specified by the articles of incorporation of the Korea Inclusive Finance Agency under Article 3 (1) of the Act (hereinafter referred to as the "Agency") to support low-income class and stabilize the livelihood of ordinary people.
 Article 4 (Qualification for Business Execution Organizations)
"A person qualified as prescribed by Presidential Decree" in subparagraph 6 of Article 2 of the Act, means a person who meets all the following requirements:
1. The person shall meet all the standards prescribed by the Finance Agency in the operating manual under Article 24 (4) of the Act (hereinafter referred to as the "operating manual") in consideration of financial ability, public confidence, the ability to perform services as necessary to support the financial life of ordinary people;
2. The person shall be any of the following corporations or organizations:
(a) A local government;
(b) The Credit Counseling and Recovery Service under Article 56 (1) of the Act;
(c) A financial company;
(e) A corporation established pursuant to the Civil Act or the Commercial Act, whose articles of incorporation stipulate that supporting the financial life of ordinary people is the objective of its business;
(f) Other corporations or organizations similar to those specified in items (c) through (e).
CHAPTER II KOREA INCLUSIVE FINANCE AGENCY
 Article 5 (Investment of Capital)
(1) "Persons prescribed by Presidential Decree" in Article 4 (2) 4 of the Act, means the following persons:
1. A financial holding company under the Financial Holding Companies Act;
2. The Korea Federation of Banks established pursuant to Article 32 of the Civil Act (hereinafter referred to as the "Korea Federation of Banks");
3. An insurance association established pursuant to Article 175 of the Insurance Business Act;
4. The Korea Financial Investment Association established pursuant to Article 283 of the Financial Investment Services and Capital Markets Act;
5. The Korea Federation of Savings Banks established pursuant to Article 25 of the Mutual Savings Banks Act (hereinafter referred to as the "Korea Federation of Savings Banks");
6. The Credit Finance Association established pursuant to Article 62 of the Specialized Credit Finance Business Act;
7. The Credit Business and Credit Brokerage Business Association established pursuant to Article 18-2 of the Act on Registration of Credit Business, etc. and Protection of Finance Users;
8. The Export-Import Bank of Korea under the Export-Import Bank of Korea Act;
9. The Korea Housing Finance Corporation under the Korea Housing Finance Corporation Act;
10. The Credit Counseling and Recovery Service under Article 56 (1) of the Act;
11. A nonprofit corporation incorporated or funded by a financial company or any of the persons specified in subparagraphs 1 through 10;
12. Persons specified and publicly notified by the Financial Services Commission in consideration of other factors, such as the nature of the business in which a person engages, and the ability to invest.
(2) The investments under Article 4 (2) of the Act shall be made in cash: Provided, That some of them may be made in kind, as necessary.
 Article 6 (Registration of Incorporation)
The matters that shall be registered with regard to the incorporation of the Agency under Article 5 (1) of the Act are as follows:
1. Objectives;
2. Name;
3. Principal place of business;
4. Location of a branch office or sub-office (hereinafter referred to as "branch office, etc.");
5. Capital;
6. Names and addresses of executives;
7. Method of giving public notice.
 Article 7 (Registration of Establishment of Branch Offices, etc.)
When the Agency establishes a branch office, etc., it shall register relevant matters during either of the following period:
1. Principal place of business: The location of the relevant branch office, etc. and the date of establishment within two weeks from the date of establishment of the branch office, etc.;
2. Location of the newly established branch office, etc.: The matters specified in subparagraphs 1 through 4 (excluding matters concerning the location of other branch offices, etc.) and 7 of Article 6 and the name, resident registration number, and address of the President of the Agency within three weeks from the date of establishment of the branch office, etc.
 Article 8 (Registration of Relocation)
(1) When the Agency relocates its principal place of business, it shall register the following matters:
1. The registry having jurisdiction over the previous location: The new location and the date of relocation;
2. The registry having jurisdiction over the new location: The matters specified in Article 6.
(2) When the Agency relocates a branch office, etc., it shall register the following matters within three weeks (two weeks with the registry having jurisdiction over the principal place of business):
1. The registries having jurisdiction over the principal place of business and the previous location of the branch office, etc.: The new location of the branch office, etc. and the date of relocation;
2. The registry having jurisdiction over the new location of the branch office, etc.: Matters specified in subparagraph 2 of Article 7.
 Article 9 (Registration of Changes)
(1) When any of the matters specified in Article 6 changes, the change shall be registered at the registry having jurisdiction over the principal place of business within two weeks.
(2) When a change occurs with respect to any of the matters specified in subparagraph 2 of Article 7, the change shall be registered at the registry having jurisdiction over the location of the branch office, etc. within three weeks.
 Article 10 (Registration of Appointment of Agent)
When an agent is appointed pursuant to Article 17 of the Act, the following matters shall be registered with the registry having jurisdiction over the principal place or the branch office, etc. for which the agent is appointed, within two weeks from the date of appointment:
1. Name, resident registration number, and address of the agent;
2. Details of restrictions on the agent's power, if the agent's power is subject to restrictions.
 Article 11 (Calculation of Period Set for Registration)
Where any of the matters that shall be registered under Articles 7 through 10, is subject to authorization or approval by the Financial Services Commission, the period set for registration shall be counted from the date the relevant letter of authorization or approval arrives.
 Article 12 (Applicant of Registration, etc.)
(1) An application for registration under any of Articles 7 through 10, shall be filed by the President of the Agency.
(2) Each application for registration under any of Articles 7 through 10, shall be accompanied by documents that prove the grounds therefor.
 Article 13 (Mandatory Articles of Incorporation)
"Matters prescribed by Presidential Decree" in Article 7 (1) 14 of the Act means the following matters:
1. Dissolving and disposing of residual assets;
2. Business supporting the financial life of ordinary people, detailed guidelines therefor, etc.
 Article 14 (Qualification for Members of Operating Committee)
"Persons qualified as prescribed by Presidential Decree" in Article 9 (1) 5 (e) of the Act means persons who have at least five years’ work experience as a researcher ;or as at least an associate professor in a research institute or a university, after obtaining a doctorate in field related to finance, economy, or social science.
 Article 15 (Operation, etc. of Operating Committee)
(1) Meeting minutes shall be taken at each meeting of the operating committee under Article 8 (1) of the Act (hereinafter referred to as the "Operating Committee"), and the chairperson and all committee members present at the meeting, shall affix their signatures or seals thereon.
(2) In any of the following cases, a member of the Operating Committee shall be excluded from proceedings for deliberation and resolution by the Operating Committee:
1. If the committee member, or a current or former spouse of the committee member, is a party to the case on the agenda (including executives of a corporation or organization, if the party is a corporation or organization; hereafter the same shall apply in this subparagraph and subparagraph 2) or a joint right-holder or joint obligor with a party to the agenda item;
2. If the committee member is or was a relative of a party to the agenda item;
3. If the committee member has made a testimony or a statement, provided consulting advice, or served as an appraiser for the case on the agenda;
4. If the committee member or the corporation to which the committee member belongs is or was the representative of a party to the case on the agenda;
5. If the committee member has been involved in an act or omission giving rise to the agenda item.
(3) If a party duly suspects lack of impartiality of a committee member in proceedings of deliberation and resolution, the party may file a challenge against the committee member with the Operating Committee, and the Operating Committee shall resolve thereon. In such cases, the committee member against whom the challenge is filed shall not participate in the resolution proceeding.
(4) If a committee member falls within any of the grounds for exclusion under paragraph (2), he/she shall voluntarily abstain from proceedings of deliberation and resolution on the relevant case on the agenda.
(5) Except as otherwise expressly provided for in paragraphs (1) through (4), matters necessary to operate, etc. the Operating Committee shall be determined by the chairperson following a resolution by the Operating Committee thereon.
 Article 16 (Operation of Dormant Deposit Management Committee)
Article 15 shall apply mutatis mutandis to the operation of the dormant deposit management committee under Article 20 (1) of the Act. In such cases, "Operating Committee" shall be construed as "Management Committee."
 Article 17 (Duties of Agency)
(1) "The Small-Loan Financial Support Center determined by President Decree" in Article 24 (1) 8 of the Act means a corporation or organization that meets all the following requirements:
1. It shall perform the duties specified in Article 24 (1) 1, 2, and 4 of the Act at the Agency's request;
2. It shall be staffed with specialized human resources competent for performing the duties specified in subparagraph 1 (referring to human resources that meet the standards prescribed by the Agency in its operating manual, based upon expertise and experience in relevant jobs);
3. It shall be equipped with physical facilities necessary for business supporting the financial life of ordinary people, including electronic computer systems, office space, and office equipment;
4. It shall meet the requirements prescribed by the Agency in its operating manual, such as the requirement that it shall use the funds provided by the Agency pursuant to Article 24 (1) 8 of the Act, for the purpose of performing the duties specified in subparagraph 1.
(2) "Duties prescribed by Presidential Decree" in Article 24 (1) 16 of the Act means the following duties:
1. The duties approved by the Financial Services Commission as incidental to the duties specified in Article 24 (1) 1 through 15 of the Act;
2. The duties approved by the Financial Services Commission as those for supporting the financial life of ordinary people or those incidental to such duties, among the duties entrusted by the State, local governments, public institutions, etc.;
3. Other duties specified by other statutes as the Agency's duties.
 Article 18 (Exemption, etc. from Fees)
"Person prescribed by Presidential Decree, such as persons who have provided distinguished service to the State under the Act on the Honorable Treatment of and Support for Persons, etc. of Distinguished Service to the State and recipients under the National Basic Living Security Act" in Article 24 (3) of the Act means any of the following persons:
1. Persons who have provided distinguished service to the State under the Act on the Honorable Treatment of and Support for Persons, etc. of Distinguished Service to the State and their survivors or family members;
2. Recipients under the National Basic Living Security Act;
3. Persons registered as having provided distinguished service to independence under the Act on the Honorable Treatment of Persons of Distinguished Service to Independence and their survivors or family members;
4. Persons with severe disabilities under the Act on Pensions for Persons with Disabilities;
5. Other persons specified by the Agency in its operating manual as similar to the persons specified in subparagraphs 1 through 4.
 Article 19 (Application of Business Execution Organizations for Support)
When a business execution organization applies for support pursuant to Article 26 (2) of the Act, it shall submit the following documents to the Agency:
1. Statements on the current status of operation of the business execution organization and its assets (excluding cases where the business execution organization is a local government referred to in subparagraph 2 (a) of Article 4);
2. A list of programs for which support is required and a financial operating plan;
3. Other documents specified by the Agency in its operating manual as necessary to determine whether to provide support, the amount of funding, etc.
 Article 20 (Preparation and Submission of Business Performance Report by Business Execution Organization)
(1) Pursuant to Article 27 (2) of the Act, a business execution organization shall prepare a business performance report as prescribed in paragraph (2); and shall submit it to the Agency within two months from the date it completes its business or its fiscal year ends: Provided, That the Agency may extend the period by not more than two months, if it deems necessary.
(2) The Agency shall determine the method of preparing a business performance report; and shall notify business execution organizations thereof at least two months before the deadline for the submission of the business performance report.
 Article 21 (Supervision, etc. of Funding)
(1) The President of the Agency shall ascertain whether the funding granted to a business execution organization have been used for the programs referred to in subparagraph 2 of Article 19; and whether a business execution organization has received a support fund by filing a fraudulent application by reviewing documents, etc. of the business execution organization.
(2) Except as otherwise expressly provided in paragraph (1), matters necessary to supervise and return support funds and to submit documents, etc. shall be prescribed by the Agency in its operating manual.
 Article 22 (Establishment, Operation, etc. of Small-Loan Financial Committee)
(1) The Small-Loan Financial Committee under Article 29 (1) of the Act (hereafter referred to as the "Committee" in this Article) shall be comprised of not more than eleven members, including one chairperson, duly considering gender equality.
(2) The Vice Chairperson of the Financial Services Commission shall serve as the Chairperson of the Committee, while the following persons shall serve as members of the Committee:
1. The competent Deputy Governor of the Financial Supervisory Service;
2. The President of the Agency;
3. The Chairperson of the Credit Counseling and Recovery Service under Article 56 (1) of the Act;
4. The President of the Korea Asset Management Corporation under 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 "Korea Asset Management Corporation");
5. Persons commissioned by the Chairperson of the Financial Services Commission, from among the following persons:
(a) The representative of a financial company or an institution or organization engaging in business supporting the financial life of ordinary people;
(b) A person who has at least five years’ work experience in any role related to microfinance with abundant knowledge and experience in microfinance.
(3) The Chairperson and members of the Committee shall serve as unremunerated, non-standing members.
(4) The Chairperson shall call a meeting of the Committee, when he/she deems necessary.
(5) The Committee may discuss the following matters:
1. Formulating and implementing polices on the financial life of ordinary people;
2. Programs for supporting the financial life of ordinary people;
3. Other matters on which the Chairperson of the Committee deems necessary to consult with related central administrative agencies and non-governmental institutions or organizations.
(6) If the Chairperson of the Committee deems necessary to perform the duties of the secretariat of the Committee under Article 29 (2) of the Act efficiently, he/she may request participating institutions to dispatch their public officials or employees, in consultation with such institutions.
(7) Except as otherwise expressly provided for in paragraphs (1) through (6), matters necessary to organize, operate, etc. the Committee and its secretariat, shall be determined by the Chairperson after resolution by the Committee.
 Article 23 (Form of Bonds)
The bonds issued under Article 33 (1) of the Act (hereafter in this Article through Article 35, referred to as "bonds") shall be in an unregistered type: Provided, That bonds may be issued in registered form if persons who intend to subscribe publicly offered bonds or holders of bonds, request to do so.
 Article 24 (Issuance of Bonds)
When the Agency issues bonds, it shall issue them by public offering, total underwriting, or sale.
 Article 25 (Subscription, etc. for Bonds)
(1) When the Agency intends to issue bonds through a public offering, it shall prepare and issue a bond subscription form, which shall include the following matters:
1. Name of the Agency;
2. Total amount of bonds to be issued;
3. Par value of each denomination of bonds;
4. Interest rate of bonds;
5. Methods and time for repaying the principal;
6. Methods and time for paying interest;
7. Issue value and the lowest value of bonds;
8. Total amount of unredeemable bonds, if such bonds exist.
(2) A person who intends to subscribe for publicly offered bonds, shall state the number and amount (referring to the subscription amount, if the lowest value of the issued bonds is specified in advance) of bonds for which he/she intends to subscribe and the subscriber's address, in two sets of the band subscription form under paragraph (1), print his/her name and place his/her signature thereon, and submit them to the Agency.
 Article 26 (Total Underwriting or Sale)
(1) Article 25 shall not apply where bonds are issued by total underwriting, but shall also apply to the underwritten portion, where a person entrusted with a public offering of bonds underwrites some of the bonds.
(2) When the Agency intends to issue bonds by sale, it shall give prior public notice of the matters specified in Article 25 (1) 1 through 6 and the period of sale.
 Article 27 (Total Amount of Bonds Issued)
(1) Even where the total amount of bonds actually subscribed for falls short of the total amount of bonds issued stated in a bond subscription form when the Agency issues bonds pursuant to Article 25, it may issue bonds. In such cases, the fact shall be indicated in the relevant bond subscription form.
(2) In cases falling under paragraph (1), the total amount of bonds subscribed for shall be deemed the total issue amount of bonds.
 Article 28 (Payment, etc, of Price for Bonds Subscribed for)
(1) Upon completion of subscription for bonds, the Agency shall require subscribers to pay the full amount of the bonds subscribed for, without delay.
(2) A person to whom a public offering of bonds is entrusted, may perform the task under paragraph (1) in his/her name for the Agency.
(3) The Agency shall not issue any bond before the total issue amount is fully paid: Provided, That the foregoing shall not apply where bonds are issued by sale.
 Article 29 (Mandatory Descriptions of Bonds)
The following matters shall be stated in each bond; and the President of the Agency shall print his/her name and affix his/her seal thereon:
1. Matters specified in Article 25 (1) 1 through 6 (excluding the matter specified in subparagraph 2, if bonds are issued by sale);
2. Serial number of bond;
3. Issue date of bond.
 Article 30 (Bond Register)
(1) The Agency shall keep a bond register in its principal place of business and shall record the following matters therein:
1. Number and serial numbers of bonds by denominations;
2. Issue date of each bond;
3. Matters specified in Article 25 (1) 2 through 6.
(2) In addition to the matters specified in paragraph (1), the following matters shall be recorded in the bond register, if bonds are registered:
1. Names and addresses of owners of bonds;
2. Date of acquisition of bonds.
(3) The owner or holder of a bond may request the Agency to allow him/her to inspect the bond register.
 Article 31 (Transfer of Registered Bonds)
Unless the matters specified in Article 30 (2) are recorded in the bond register in connection with a transfer of registered bonds, no claim or defense may be raised against the Agency or any other third party, on the ground of the transfer of registered bonds.
 Article 32 (Creation of Pledge Right on Registered Bonds)
(1) Unless the name and address of a pledgee is registered in the bond register where registered bonds become subject to a pledge, the pledgee shall not assert any claim or defense against the Agency or any third party.
(2) When a pledge right is created under paragraph (1), the Agency shall indicate the creation of the right on the relevant bonds.
 Article 33 (Defective Coupons)
(1) If a coupon is defective where an unregistered bond with a coupon is redeemed, the coupon value shall be deducted from the amount redeemed.
(2) The holder of a coupon under paragraph (1) may claim payment of the deducted amount in exchange for the coupon.
 Article 34 (Notification, etc. to Holders of Bonds)
(1) Notice or peremptory notice to subscribers or right-holders before issuing bonds, shall be given via the the addresses stated in bond subscription forms. If the Agency has been notified of a different address in such cases, it shall give notice to such address.
(2) Notice or peremptory notice to the owner of a registered bond, shall be given via the address recorded in the bond register. If the Agency has been notified of a different address in such cases, it shall give notice via such address.
(3) The notice or peremptory notice to holders of unregistered bonds shall be given by public notice.
 Article 35 (Reporting)
Whenever the Agency completes issuing bonds, it shall report the details thereof to the Financial Services Commission.
 Article 36 (Sale of Claims for Reimbursement)
"Persons prescribed by Presidential Decree" in Article 35 of the Act means companies specialized in securitization under the Asset-Backed Securitization Act.
 Article 37 (Gratuitous Lending, etc. of Public Property)
(1) The details, conditions, and procedures for lending, use, and profit-making under Article 36 (1) of the Act, shall be stipulated by an agreement made between the head of the local government that owns the relevant public property and the Agency.
(2) If the Agency uses public property that the Agency is allowed to borrow or use free of charge or from which the Agency is allowed to profit under Article 36 (1) of the Act for any purpose other than the originally intended purposes, the head of the local government that owns the public property, may terminate the agreement.
(3) Except as otherwise expressly provided for in the Act or this Decree, relevant provisions of the Public Property and Commodity Management Act, shall apply to the gratuitous lending or use of public property or profit-making from public property, to the necessary extent.
 Article 38 (Receipt, etc. of Donations)
(1) When the Agency receives money or any goods as a donation under Article 37 (1) of the Act, it shall issue a receipt to the donating corporation, organization, or individual (hereafter in this Article referred to as "donor"): Provided, That it need not issue a receipt, if the donor is anonymous or unknown.
(2) If a donor designates the purpose of use of a donation, the donation shall be used only for the designated purpose of use.
(3) Notwithstanding paragraph (2), a donation may be used for any other purpose within the donor's consent, if an extenuating circumstance makes it impracticable to use the donation for the designated purpose: Provided, That a donation may be used for any other purpose after giving public notice of relevant facts for at least seven days through the Agency's website, if the donor is anonymous or unknown or if extenuating circumstances make it impossible to obtain the donor's consent.
(4) The Agency shall keep records of the current status of receipt of donations, the results of use of donations, etc. so that donors can inspect them and shall disclose relevant facts each year through the Agency's website.
(5) Except as otherwise expressly provided for in paragraphs (1) through (4), matters necessary for receiving, using, etc. of donations, shall be prescribed by the Agency in its operating manual.
 Article 39 (Scope of Materials Submitted by Financial Companies)
"Materials prescribed by Presidential Decree" in Article 40 (2) of the Act means materials specified and publicly notified by the Financial Services Commission about the name and contact information of a financial company; the number of a dormant deposit account or of a subscription certificate; the date of expiration of a prescriptive period; and other information.
 Article 40 (Inquiry of Information about Original Dormant Deposit Holders)
When an original dormant deposit holder intends to inquire about materials submitted by a financial company to the Agency pursuant to Article 40 (2) of the Act, the Management Committee shall allow the deposit holder to inquire about such materials by computer communications networks through the Agency, a financial company, or any of the following corporations or organizations under Article 43 of the Act: <Amended by Presidential Decree No. 28218, Jul. 26, 2017>
1. The Korea Federation of Banks;
2. The association of life insurance companies, among insurance associations established pursuant to Article 175 of the Insurance Business Act;
3. The association of non-life insurance companies, among insurance associations established pursuant to Article 175 of the Insurance Business Act;
4. The Korean Federation of Savings Banks;
5. The Ministry of the Interior and Safety (limited to cases where an original dormant deposit holder inquires about materials using the daily life information viewing service provided under Article 9-2 of the Electronic Government Act);
6. The corporations or organizations specified and publicly notified by the Financial Services Commission, from among other corporations or organizations related to financial services.
 Article 41 (Notification to Original Dormant Deposit Holders)
(1) "Amount determined by Presidential Decree" in Article 44 (1) of the Act means 300,000 won.
(2) When a financial company gives notice of contribution to an original dormant deposit holder pursuant to Article 44 (1) of the Act, it shall give written notice to the address last reported to the financial company and shall use mail, facsimile, or a computer communications network: Provided, That, if the notice is returned or the financial company is unable to ascertain the contact information of an original dormant deposit holder, it shall publish the notice of contribution for at least seven days, on the website of the relevant financial company or of a corporation or organization referred to in any subparagraph of Article 40.
 Article 42 (Creation, etc. of Guarantee Account)
(1) "Funds prescribed by Presidential Decree" in Article 47 (1) 7 of the Act means the following loans borrowed from the guarantee account when funds become temporarily inadequate while operating the credit guarantee account under Article 46 of the Act (hereinafter referred to as "guarantee account"):
1. Loans from other accounts of the Agency;
2. Loans from financial companies.
(2) Each of the financial companies specified in Article 47 (2) of the Act (hereinafter referred to as "agricultural cooperative, etc.") shall contribute the amount calculated by multiplying the average monthly balance of the following loans, by the relevant contribution rate specified in attached Table 1 (hereafter in this Article referred to as "contribution") to the Agency every month via the National Agricultural Cooperative Federation, the National Federation of Fisheries Cooperatives, the Korea Federation of Savings Bans, the Korea Federation of Community Credit Cooperatives, the National Credit Union Federation of Korea, or the National Forestry Cooperatives Federation (hereinafter referred to as the "National Agricultural Cooperative Federation, etc."), to whichever the agricultural cooperative, etc. belongs:
1. General loans;
2. Self-support deposit loans or deposit loans;
3. Integrated bankbook loans;
4. Medium-term mutual finance loans.
(3) Whether a loan falls under any of the loan categories specified in paragraph (2), shall be determined according to the balance sheets prepared in accordance with the accounting standards under Article 63 of the Agricultural Cooperatives Act; Article 66 of the Fisheries Cooperatives Act; Article 22-2 of the Mutual Savings Banks Act; Article 33 of the Community Credit Cooperatives Act; Article 47 of the Credit Unions Act; or Article 54 of the Forestry Cooperatives Act; and according to the titles of account therein.
(4) Each agricultural cooperative, etc. shall pay each monthly contribution under paragraph (2) to the Agency via the National Agricultural Cooperative Federation, etc. by the end of the following month.
(5) When an agricultural cooperative, etc. pays a contribution under paragraph (2), it shall submit the following documents to the Agency via the National Agricultural Cooperative Federation, etc.:
1. A contribution calculation sheet;
2. Documents proving the monthly average balance of loans;
3. A statement of the loans specified in paragraph (2);
4. Other documents specified and publicly notified by the Financial Services Commission.
(6) Notwithstanding paragraph (4), if the Agency requests an agricultural cooperative, etc. after obtaining approval of the estimated amount of contribution, the time to pay the contribution, the method of ex-post settlement, etc. from the Financial Services Commission, the agricultural cooperative, etc. may first pay the contribution payable in the future.
(7) The period during which an agricultural cooperative, etc. shall make contributions to the Agency, shall not exceed ten years from the start date of contribution.
(8) The start date and end date of contribution by agricultural cooperatives, etc. shall be determined and publicly notified by the Financial Services Commission, and the Financial Services Commission shall notify the National Agricultural Cooperative Federation, etc. of the end date of contribution, by not later than three months before the end date of contribution.
 Article 43 (Limit of Guarantee)
The maximum total amount under Article 49 (1) of the Act, shall be 15 times the sum of the funds under Article 47 (1) of the Act and of the carried-over profits.
 Article 44 (Guaranty Fees, etc.)
The guaranty fees under Article 52 (1) of the Act and the additional guaranty fees under Article 52 (2) of the Act shall be calculated by the rates specified by the Agency in its operating manual, based upon the credit rating of each individual, the kind of guarantee, etc.
 Article 45 (Grounds, etc. for Claiming Performance of Guaranty Debt)
(1) "Where an event of default prescribed by Presidential Decree occurs" in Article 53 (1) of the Act means any of the following:
1. Where three months have passed since an individual for whom a credit guarantee was provided failed to repay debts by the due date or since an acceleration clause was enforced against such individual;
2. Where an individual becomes bankrupt;
3. Where any other event occurs to cause the Operating Committee to conclude that it is impossible to collect debts from an individual.
(2) "Subordinated debt prescribed by Presidential Decree" means any of the following debts:
1. Interest for the period from the deadline for the payment of a main debt until the time when the guarantee account pays the guaranty debt. The interest rate in such cases shall be the interest rate applicable to the agreed term of the main debt;
2. Other expenses the Operating Committee deems as the creditor has incurred to collect debts.
 Article 46 (Exemption from Claims for Reimbursement)
"Cases prescribed by Presidential Decree, such as where a debtor is unable to repay debt due to his/her death or mental or physical disorder" in Article 54 (6) of the Act means the following cases:
1. Where a debtor dies;
2. Where a debtor is unable to repay a debt due to a mental or physical disorder;
3. Other cases the Operating Committee approves based upon a debtor's ability to repay debts.
 Article 47 (Amount of Loss)
The amount of loss under Article 55 (1) of the Act shall be calculated by multiplying the amount of the guaranteed debt the Agency paid by the interest rate specified by the Agency in its operating manual within 17/100 per annum, based upon the interest rates applied by agricultural cooperatives, etc. to past-due loans.
CHAPTER III CREDIT COUNSELING AND RECOVERY SERVICE
 Article 48 (Registration of Establishment, etc.)
Provisions concerning incorporated associations in the Civil Act shall apply mutatis mutandis to the registration for establishment of the Credit Counseling and Recovery Service under Article 56 of the Act (hereinafter referred to as the "Committee"), the registration of amendments, and the registration of other matters of the Committee.
 Article 49 (Mandatory Provisions of Bylaws)
"Matters prescribed by Presidential Decree" in Article 59 (1) 10 of the Act means matters concerning the establishment and operation of the Debtor Support Center under Article 77 (1) of the Act (hereinafter referred to as the "Debtor Support Center").
 Article 50 (Qualification for Committee Members)
"Persons with the qualifications determined by Presidential Decree" means persons who have at least five-year work experience as a researcher or at least an associate professor in a research institute or university, with a doctorate in any field related to finance, economics, or social science.
 Article 51 (Organization and Operation of Secretariat)
(1) The secretariat to be established under the Committee pursuant to Article 62 (1) of the Act (hereafter referred to as the "Secretariat" in this Article) shall have one Secretary-General.
(2) The Secretary General shall be appointed by the Chairperson of the Committee with consent of the Committee.
(3) The Secretary General shall administer business affairs of the Committee under the direction of the Chairperson; and shall lead and supervise employees of the Committee.
(4) Except as otherwise provided for in paragraphs (1) through (3), matters necessary to organize and operate the Secretariat shall be prescribed by bylaws of the Committee.
 Article 52 (Submission of Business Plans, etc.)
(1) The Committee shall submit a business plan and a budget statement for each business year under Article 69 (1) 1 of the Act to the Financial Services Commission before the beginning of each business year, to obtain approval thereof.
(2) The Committee shall submit a business performance report and an annual report for each business year under Article 69 (1) 2 of the Act, to the Financial Services Commission by not later than three months after the end of each business year to obtain approval thereof.
 Article 53 (Requirements, Methods, etc. for Applying Debt Settlement)
(1) An individual debtor who meets all the following requirements may apply for debt settlement under Article 71 (1) of the Act (hereinafter referred to as "debt settlement") to the Committee:
1. The debtor fails to pay a debt to a creditor financial company under Article 70 (3) of the Act (hereinafter referred to as "creditor financial company") by the agreed maturity date;
2. The total amount of debts owed to the creditor financial company shall not exceed 1.5 billion won (limited to cases where the total amounts of secured debts and unsecured debts, out of the total amount of debts, do not exceed one billion won and 500 million won, respectively);
3. The individual debtor has an ability to pay debts in at least the amount stipulated by the agreement on credit recovery support under Article 75 (1) of the Act (hereinafter referred to as "agreement").
(2) An individual debtor who intends to apply for debt settlement shall file an application, stating the following matters thereon, with the Committee:
1. Name, resident registration number, and address;
2. Details of assets and debts;
3. Income;
4. Other matters specified in the agreement, as necessary for examination for debt settlement.
(3) Except as otherwise provided for in paragraphs (1) and (2), matters necessary for the requirements, method, procedure, etc. for applying for debt settlement, shall be stipulated by agreement.
 Article 54 (Period, etc. of Debt Settlement)
(1) "Period prescribed by Presidential Decree" in Article 72 (3) of the Act means 30 days: Provided, That the Committee may extend the period by not more than 30 days, if it deems necessary to amend a mediation plan for debt or hear opinions of the creditor financial company.
(2) The periods related to the detailed procedure for debt adjustment are as follows:
1. Reporting by a creditor financial company under Article 72 (2) of the Act: Within two weeks from the date the notice under paragraph 1 is delivered;
2. Response by a creditor financial company under Article 72 (4) of the Act: Within ten days from the date notice of the mediation plan for debt is received under the same paragraph.
 Article 55 (Counter-Parties, etc. to Agreement)
"A person designated by Presidential Decree" in Article 75 (2) 3 of the Act means any of the following persons:
1. The Korea Asset Management Corporation;
2. The Korea Technology Credit Guarantee Fund under the Korea Technology Credit Guarantee Fund Act;
3. The Credit Guarantee Fund under the Credit Guarantee Fund Act;
4. A regional credit guarantee foundation under the Regional Credit Guarantee Foundation Act and the Federation of such foundations;
5. A company specialized in asset-backed securitization under the Asset-Backed Securitization Act;
6. The Korea Housing Finance Corporation under the Korea Housing Finance Corporation Act;
8. The Korea Labor Welfare Corporation under the Industrial Accident Compensation Insurance Act;
9. The Credit Guarantee Fund for Farmers and Fishermen under Article 4 (1) of the Act on the Credit Guarantee for Farmers and Fishers;
10. The Korea Housing and Urban Guarantee Corporation under the Housing and Urban Fund Act;
11. The Small and Medium Business Corporation under the Small and Medium Enterprises Promotion Act;
12. The Korea Federation of Small and Medium Enterprises under the Small and Medium Enterprise Cooperatives Act;
13. A financial company established pursuant to Article 36-3 of the Depositor Protection Act with authorization to conduct liquidation;
14. A company or a bankruptcy estate for which the Korea Deposit Insurance Corporation or any executives and employees of the corporation is appointed as a liquidator or trustee in bankruptcy under Article 20 of the Special Act on the Management of Public Funds;
15. The asset management company established for agricultural cooperatives pursuant to Article 29 of the Act on the Structural Improvement of Agricultural Cooperatives;
16. Other persons specified and publicly notified by the Financial Services Commission, taking into consideration the characteristics of business operations, needs to assist individual debtors for efficient and prompt debt settlement, etc.
(2) "Extenuating circumstances prescribed by Presidential Decree, such as in cases of not possessing bonds over an individual debtor" in Article 75 (3) of the Act means the following cases:
1. Where the Committee has not claimed to an individual debtor;
2. Cases specified and publicly notified by the Financial Services Commission where it is necessary to approval the exception to conclusion of the Agreement, taking into consideration the characteristics of business operations performed, the ratio of secured claims, etc.
(3) "Cases prescribed by Presidential Decree, such as in cases where not holding bonds over an individual debtor" in Article 75 (4) of the Act means the following cases:
1. Where the Committee ceases to have any claim to an individual debtor;
2. Where a creditor financial company ceases to engage in the business that it operated when concluding the Agreement due to revocation of authorization or registration, bankruptcy, dissolution, or any other event;
3. Other cases specified by the Committee, taking into consideration the need to maintain the Agreement, etc.
 Article 56 (Establishing and Operating Debtor Support Center)
(1) The Committee shall establish and operate the debtor support center at a place individual debtor can access easily, and the debtor support center shall be staffed with specialized human resources necessary to provide services related to debt settlement.
(2) The debtor support center shall be deemed a branch office under Article 50 (1) of the Civil Act, for the purposes of registering the Committee pursuant to Article 48.
(3) The Committee and the Agency may establish and operate the debtor support center and the Agency's branch office, etc. (including a business execution organization) at one place so as to provide comprehensive services related to consulting on financial life, credit guarantee, loans, and debt settlement to ordinary people.
(4) Except as otherwise expressly provided for in paragraphs (1) through (3), matters necessary to establish and operate the debtor support center shall be stipulated by bylaws of the Committee.
CHAPTER IV SUPPLEMENTARY PROVISIONS
 Article 57 (Entrustment of Duties)
(1) Pursuant to Article 79 (4) of the Act, the Agency may entrust the following duties to financial companies, the Korea Asset Management Corporation, and the Korea Federation of Credit Guarantee Foundations under the Regional Credit Guarantee Foundation Act:
1. A financial company: The duties specified in Article 24 (1) 1 and 2 of the Act; and receiving applications for performing the duty under Article 24 (1) 4 of the Act;
2. Korea Asset Management Company: The duties under Article 24 (1) 1, 2, and 4;
3. Korea Federation of Credit Guarantee Foundations: The duty under Article 24 (1) 4 of the Act.
(2) When the Agency entrust duties pursuant to paragraph (1), the Financial Services Commission shall determine and give public notice of the entrusted institutions and entrusted duties.
 Article 58 (Handling Sensitive Information and Personally Identifiable Information)
(1) If the Financial Services Commission deems essential for performing administrative affairs related to guidance, supervision, reporting, inspection under Article 78 of the Act and follow-up measures therefor, it may handle any document containing information that constitutes a criminal record under subparagraph 2 of Article 18 of the Enforcement Decree of the Personal Information Protection Act (hereafter in this Article referred to as "criminal record information") or a resident registration number, passport number, driver’s license number, alien registration number, or domestic abode report number under Article 29 of the Enforcement Decree of the Credit Information Use and Protection Act (hereafter in this Article referred to as "resident registration number, etc.").
(2) If the Agency (including persons to whom the Agency's duties are entrusted pursuant to Article 79 of the Act) deems inevitably necessary to perform the following administrative work, it may handle a document containing criminal record information or a resident registration number, etc.:
1. Administrative work related to the Agency's duties under Article 24 (1) of the Act;
2. Administrative work related to issuing bonds under Article 33 (1) of the Act;
3. Administrative work related to receiving donations under Article 37 (1) of the Act;
4. Administrative work related to contributing to and managing dormant deposits, the protection of original right-holders, etc. under Articles 40, 41, and 43 through 45 of the Act;
5. Administrative work related to the notification of establishment of guaranty relationships, the collection of guaranty fees, guaranteeing debt, exercising a claim for reimbursement, the collection of losses, etc.;
6. Administrative work related to the request to provide materials under Article 81 of the Act and the use of such materials.
(3) If the Committee (including persons to whom the Committee's duties are entrusted pursuant to Article 79 of the Act) deems essential necessary to perform the following administrative work, it may handle any document containing criminal record information or a resident registration number, etc.:
1. Administrative work related to consulting on debts, assisting in debt settlement, follow-up management thereof, etc. for individual debtors under subparagraphs 4 through 6 of Article 60 of the Act;
2. Administrative work related to the request to provide materials under Article 81 of the Act and the use of such materials.
(4) If a person who falls under any subparagraph of Article 40, deems inevitably necessary to perform administrative work related to an inquiry of information about an original dormant deposit holder under Article 43 of the Act, he/she may handle a document containing a resident registration number, etc.
(5) If a business execution organization deems inevitably necessary to perform administrative work related to a program for supporting the financial life of ordinary people, it may handle a document containing a resident registration number, etc.
 Article 59 (Scope of Public Organizations)
"Public organizations prescribed by Presidential Decree" in Article 81 (1) of the Act means public institutions under Article 4 of the Act on the Management of Public Institutions.
CHAPTER V PENALTY PROVISIONS
 Article 60 (Guidelines for Imposition of Administrative Fines)
The guidelines for imposing administrative fines under Article 86 (1) of the Act, are as prescribed in attached Table 2.
ADDENDA
Article 1 (Enforcement Date)
This Decree shall enter into force on September 23, 2016.
Article 2 (Repeal of Other Statutes)
Article 3 (Applicability to Guaranty Fees and Additional Guaranty Fees)
Article 44 shall apply to the persons to whom a credit guarantee is provided according to an application for credit guarantee filed after this Decree enters into force.
Article 4 (Applicability to Debt Settlement)
Articles 53 and 54 shall apply to applications filed by individual debtors for debt settlement, after this Decree enters into force.
Article 5 (Transitional Measures concerning Applications for Support and Preparation of Business Performance Reports)
(1) An application filed by a welfare service provider under the former Establishment, etc. of Microfinance Foundation Act (hereafter referred to as "welfare service provider" in this Article) for a support fund pursuant to Article 24 of the same Act before this Decree enters into force, shall be deemed an application for support under Article 19.
(2) Notwithstanding Article 20 (1), Article 8 (1) of the former Enforcement Decree of the Establishment, etc. of Microfinance Foundation Act shall apply where a welfare service provider received the notice of the method of preparing a business performance report under Article 8 (2) of the former Enforcement Decree of the Establishment, etc. of Microfinance Foundation Act.
Article 6 (Transitional Measures concerning Losses)
Notwithstanding Article 47, Article 28 of the Regional Credit Guarantee Foundation Act shall apply where a guaranteed debt was paid under Article 24 of the Regional Credit Guarantee Foundation Act, before this Decree enters into force.
Article 7 Omitted.
Article 8 (Relationship to Other Acts and Subordinate Statutes)
A citation of any provision of the former Enforcement Decree of the Establishment, etc. of Microfinance Foundation Act, in any other Act or subordinate statute in force at the time this Decree enters into force, shall be deemed a citation of this Decree or the relevant provisions of this Decree, in lieu of the former Enforcement Decree of the Establishment, etc. of Microfinance Foundation Act or any of its provisions, if such relevant provisions exist herein.
ADDENDA <Presidential Decree No. 28218, Jul. 26, 2017>
Article 1 (Enforcement Date)
This Decree shall enter into force on the date of its promulgation.
Articles 2 and 3 Omitted.