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ENFORCEMENT DECREE OF THE HOUSING AND URBAN FUND ACT

Presidential Decree No. 26369, jun. 30, 2015

Amended by Presidential Decree No. 26708, Dec. 11, 2015

Presidential Decree No. 26763, Dec. 28, 2015

Presidential Decree No. 27444, Aug. 11, 2016

Presidential Decree No. 27445, Aug. 11, 2016

Presidential Decree No. 27571, Nov. 1, 2016

 Article 1 (Purpose)
The purpose of this Act is to prescribe matters mandated by the Housing and Urban Fund Act and matters necessary for enforcement of the said Act.
 Article 2 (Sale of Loan Assets of Housing and Urban Fund)
(1) When the sale (referring to the sale specified in Article 5 (1) 11 and (2) 7 of the Act) of any loan asset of the Housing and Urban Fund (hereinafter referred to as the "Fund") established under Article 3 of the Housing and Urban Fund Act (hereinafter referred to as the "Act") is conducted, the loan asset may be sold at a discount or at a premium based on interest rates of financial institutions as at the time of sale.
(2) Any loan asset of the Fund prescribed in paragraph (1) shall be sold by a competitive tendering procedure, which shall be publicly announced for at least seven days.
(3) Notwithstanding paragraph (2), any loan asset of the Fund may be sold under a negotiated contract in any of the following circumstances:
1. Where it is possible to conclude a contract under the terms and conditions substantially advantageous to the Fund;
2. Where there exists only one special-purpose company for mortgage-backed bonds referred to in the Act on Special-Purpose Companies for Mortgage-Backed Bonds and the relevant contract is concluded with such special-purpose company;
3. Where the relevant contract is concluded with Korea Housing Finance Corporation incorporated under the Korea Housing Finance Corporation Act.
 Article 3 (Depositing Capital into Fund)
(1) "Funds or capital prescribed by Presidential Decree" in Article 6 (1) 2 of the Act means the following funds or capital:
1. The Public Officials Pension Fund established pursuant to the Public Officials Pension Act;
2. The Military Pension Fund established pursuant to the Military Pension Act;
3. Capital transferred to the Korea Teachers Pension pursuant to the Pension for Private School Teachers and Staff Act;
4. Any fund or capital determined by the Minister of Land, Infrastructure and Transport upon consultation with the competent Minister for such fund or capital, and the Minister of Strategy and Finance.
(2) Where a manager of any fund or capital specified in Article 6 (1) 1 of the Act or any subparagraph (excluding subparagraph 4) of paragraph (1) of this Article deposits the fund or capital into the Fund, the amount to be deposited shall be determined by the Minister of Land, Infrastructure and Transport, upon consultation with the competent Minister for such fund or capital, and the Minister of Strategy and Finance, by up to 50/100 of the capital excluding ordinary reserve requirements deposited in cash or as savings for not more than six months.
(3) Where a manager of the fund or capital specified in paragraph (1) 4 deposits the fund or capital into the Fund, the amount to be deposited and the deposit period shall be determined by the Minister of Strategy and Finance, upon consultation with the competent Minister for such fund or capital, and the Minister of Land, Infrastructure and Transport.
(4) Except as otherwise expressly provided for in other statutes, the interest rate of any fund or capital deposited into the Fund pursuant to paragraph (2) or (3) shall be determined, based on the interest rates of term deposits, when such fund or capital is deposited, but may be determined separately by the Minister of Land, Infrastructure and Transport upon consultation with the competent Minister for such fund or capital, and the Minister of Strategy and Finance.
(5) The interest rate of capital which Korea Land and Housing Corporation incorporated under the Korea Land and Housing Corporation Act deposits into the Fund pursuant to Article 6 (2) of the Act shall be determined by the Minister of Land, Infrastructure and Transport upon consultation with the Minister of Strategy and Finance.
 Article 4 (Procedures for Issuing National Housing Bonds)
(1) Where the Minister of Land, Infrastructure and Transport deems it necessary to issue national housing bonds, he/she shall request the Minister of Strategy and Finance to issue the bonds, specifying necessary matters, such as types of the bonds, the amount, methods and conditions of their issuance, and the methods and procedures for redeeming them, pursuant to Article 7 of the Act.
(2) Where the Minister of Strategy and Finance intends to issue national housing bonds upon a request under paragraph (1), he/she shall publicly announce the following matters:
1. Types of bonds;
2. Maturity of the bonds;
3. Interest rates of the bonds;
4. Methods and timing for repaying the principal;
5. Methods and timing for paying interest.
 Article 5 (Methods, etc. for Issuing National Housing Bonds)
(1) National housing bonds shall be issued according to the following classifications:
1. Class I national housing bonds purchased by persons specified in Article 8 (1) 1 through 3 of the Act;
2. Class II national housing bonds purchased by persons specified in Article 8 (1) 4 of the Act.
(2) National housing bonds shall be issued on a yearly basis, and the date of issuance shall be the last day of the month during which they are sold.
(3) National housing bonds shall be issued by registering them with the Korea Securities Depository established pursuant to Article 294 of the Financial Investment Services and Capital Markets Act (hereinafter referred to as "bond registration institution") without issuing securities. In such cases, no creditor shall file a claim for the issuance of securities in relation to the national housing bonds already registered.
(4) The bond registration institution may suspend the registration of national housing bonds following a transfer of rights (excluding succession, legacy, and coerced execution) upon obtaining approval from the Minister of Land, Infrastructure and Transport during the period of not more than seven days before the date of repayment of the principal of and interest on the national housing bonds. In such cases, the details of approval shall be posted on the Internet, etc. for public notification.
(5) The Minister of Land, Infrastructure and Transport shall pay fees prescribed by Ordinance of the Ministry of Land, Infrastructure and Transport to the bond registration institution at the expense of the Fund. In such cases, where the Minister of Land, Infrastructure and Transport intends to enact or amend Ordinance of the Ministry of Land, Infrastructure and Transport concerning fees for the registration of national housing bonds, he/she shall first consult with the Minister of Strategy and Finance.
(6) Matters necessary for the methods and procedures for issuing national housing bonds by registering them under paragraph (3), notice on the redemption of national housing bonds, and electronic management of the details of the purchase of national housing bonds shall be prescribed by Ordinance of the Ministry of Land, Infrastructure and Transport, and any other matters necessary for performing affairs on the registration of national housing bonds, such as preparing and managing the national housing bond register, shall be determined by the bond registration institution subject to approval from the Minister of Land, Infrastructure and Transport.
 Article 6 (Interest Rates, etc. of National Housing Bonds)
(1) The interest rate of Class I national housing bonds shall be determined by the Minister of Strategy and Finance, upon consultation with the Minister of Land, Infrastructure and Transport, based on the interest rates of national bonds, public bonds, etc. and the status of receipts and disbursement, etc. of the Fund as at the issuance of such national housing bonds.
(2) The principal of and interest on Class I national housing bonds shall be repaid on the fifth anniversary from the date of issuance thereof.
(3) Interest on Class I national housing bonds shall be computed at a compound interest on a yearly basis from the date of issuance to the date preceding the date of repayment by applying the interest rate referred to in paragraph (1).
(4) Interest on Class I national housing bonds from the date of sale to the date preceding the date of issuance shall be paid when they are sold.
(5) The interest rate of Class II national housing bonds, date, conditions, etc. of redemption thereof shall be determined by the Minister of Strategy and Finance, upon consultation with the Minister of Land, Infrastructure and Transport. In such cases, the date of repayment of the principal of and interest on such bonds shall not exceed 20 years from the date of issuance thereof.
 Article 7 (Institutions, etc. Conducting Business of National Housing Bonds)
(1) Business relating to the sale, redemption, etc. of national housing bonds shall be conducted by a financial institution designated by the Minister of Land, Infrastructure and Transport.
(2) Where necessary for promoting the sale of national housing bonds, the head of a financial institution designated pursuant to paragraph (1) (hereinafter referred to as "designated institution conducting bond business") may entrust another financial institution with business relating to the sale and redemption of national housing bonds. In such cases, he/she shall obtain approval for the entrustment from the Minister of Strategy and Finance, who shall consult with the Minister of Land, Infrastructure and Transport when making a decision on whether to grant approval thereto.
(3) The head of a designated institution conducting bond business shall report to the Minister of Strategy and Finance on matters relating to the sale and redemption of national housing bonds for each month by the 20th day of the following month.
 Article 8 (Purchase of National Housing Bonds)
(1) "Public institution prescribed by Presidential Decree" in Article 8 (1) 3 of the Act means a public institution in which the Government has invested at least 50/100 of the paid-in capital: Provided, That the following institutions shall be excluded herefrom:
1. Korea Housing and Urban Guarantee Corporation incorporated pursuant to Article 16 of the Act (hereinafter referred to as "HUG");
2. Korea Development Bank established pursuant to the Korea Development Bank Act;
3. Industrial Bank of Korea established pursuant to the Industrial Bank of Korea Act;
4. The Export-Import Bank of Korea established pursuant to the Export-Import Bank of Korea Act;
5. Banks defined in Article 2 of the Banking Act;
6. The Incheon International Airport Corporation incorporated pursuant to the Incheon International Airport Corporation Act;
7. Korea Airports Corporation incorporated pursuant to the Korea Airports Corporation Act.
(2) Persons required to purchase Class I national housing bonds pursuant to Article 8 (1) of the Act and the criteria for purchasing the bonds shall be as specified in the attached Table.
(3) The head of a State agency, the head of a local government, or the head of a public institution referred to in paragraph (1) shall require persons liable to purchase Class I national housing bonds to purchase them pursuant to paragraph (2) and verify whether such persons have purchased them, as prescribed by Ordinance of the Ministry of Land, Infrastructure and Transport.
(4) Except as otherwise expressly provided for in this Decree, matters necessary for purchasing Class I national housing bonds shall be determined by the Minister of Land, Infrastructure and Transport, upon consultation with the Minister of Minister of Strategy and Finance.
(5) The Minister of Land, Infrastructure and Transport may require persons who intend to obtain housing subject to the sales price ceiling system prescribed in Article 57 of the Housing Act (limited to housing, the residential-use-only area of which exceeds 85 square meters) to purchase Class II national housing bonds pursuant to Article 8 (1) of the Act. In such cases, whether persons liable to purchase Class II national housing bonds have purchased them shall be verified, as prescribed by Ordinance of the Ministry of Land, Infrastructure and Transport. <Amended by Presidential Decree No. 27445, Aug. 11, 2016>
(6) The standards and procedures for purchasing Class II national housing bonds, the validity, etc. of purchase thereof shall be prescribed by Ordinance of the Ministry of Land, Infrastructure and Transport.
 Article 9 (Split Issuance of Class II National Housing Bonds)
(1) Where the amount to be purchased by a person purchasing Class II national housing bonds pursuant to Article 8 (5) exceeds 100 million won, the head of a Si/Gun/Gu (the head of a Gu means the head of an autonomous Gu) may allow him/her to purchase such bonds in split for the amount in excess of 100 million won.
(2) When purchasing bonds in split pursuant to paragraph (1), a bond purchaser may purchase bonds equivalent to at least 50 percent of the amount subject to split purchase before the relevant housing supply contract is concluded, and he/she may purchase the rest thereof before the payment period for the balance determined by Ordinance of the Ministry of Land, Infrastructure and Transport.
 Article 10 (Redemption of National Housing Bonds before Maturity)
(1) No national housing bonds shall be redeemed before maturity, except for the following circumstances:
1. Where the relevant license, permission or authorization has been withdrawn or revoked due to causes not attributable to the purchasers of Class I national housing bonds;
2. Where a person who has concluded a contract for a construction project with the State, a local government, or a public institution pursuant to Article 8 (1) has been subject to revocation of the contract for causes not attributable to him/her;
3. Where the status of being selected as an occupant (referring to the rights, qualifications, or status of a person selected as an occupant to move into the relevant housing) or a supply contract is invalidated or revoked after the purchase of Class II national housing bonds, or, where the supply contract is terminated;
4. Where a person not subject to the purchase of national housing bonds has purchased the bonds by mistake, or, where a person has purchased the bonds, in excess of the statutory amount of purchase.
(2) A person who intends to receive a redemption of national housing bonds before maturity shall file an application with an institution conducting bond business (referring to a designated institution conducting bond business or a financial institution entrusted with the sale and redemption of national housing bonds by a designated institution conducting bond business pursuant to Article 7 (2); hereinafter the same shall apply), along with a certificate of the fact verifying that he/she falls under any subparagraph of paragraph (1) (which must be issued by a State agency, a local government, a public institution referred to in Article 8 (1), or by a project operator defined in subparagraph 10 of Article 2 of the Housing Act (hereinafter referred to as "project operator") that conducts the relevant affairs; and hereinafter referred to as "certificate of fact" in this paragraph): Provided, That, where certificates of fact are electronically processed, as prescribed by Ordinance of the Ministry of Land, Infrastructure and Transport, the relevant certificate of fact may not be required. <Amended by Presidential Decree No. 27445, Aug. 11, 2016>
(3) Notwithstanding paragraph (1), where deemed necessary for properly operating the Fund, the Minister of Land, Infrastructure and Transport may request institutions conducting bond business to redeem Class I national housing bonds before maturity by means of optional redemption, upon consultation with the Minister of Strategy and Finance. In such cases, the detailed methods of optional redemption shall be determined by the Minister of Land, Infrastructure and Transport.
 Article 11 Deleted. <by Presidential Decree No. 26708, Dec. 11, 2015>
 Article 12 (Securities relating to Supply of Rental Housing)
"Securities prescribed by Presidential Decree" in Article 9 (1) 3 (d) of the Act means securities issued by a stock company or limited-liability company specified in the Commercial Act which has been incorporated to independently implement a rental housing project for each housing complex, meeting all of the following requirements: <Amended by Presidential Decree No. 26763, Dec. 28, 2015>
1. No place of business, other than the head office, must be established;
2. No full-time executive must be employed;
3. No staff must be employed;
4. Relevant business must be entrusted to an asset management company referred to in Article 86-2 (5) 2 of the Enforcement Decree of the Corporate Tax Act or to a trust business entity established upon authorization granted under Article 12 of the Financial Investment Services and Capital Markets Act;
5. No stocks must be provided as a security (excluding any security for loans of the Housing and Urban Fund).
 Article 13 (Use of Housing Accounts)
"Projects prescribed by Presidential Decree" in Article 9 (1) 9 of the Act means the following: <Amended by Presidential Decree No. 26763, Dec. 28, 2015>
1. Purchasing or stockpiling equipment to implement any project specified in Article 9 (1) 1 (a) or (f) of the Act;
2. Constructing or purchasing private rental housing defined in Article 2 of the Special Act on Private Rental Housing and public rental housing defined in subparagraph 1 (a) of Article 2 of the Special Act on Public Housing;
3. Research and development of materials and technology to construct national housing;
4. Subsidization for the production of housing construction materials;
5. Subsidization for national housing construction projects implemented by non-profit public interest corporations related to housing construction.
 Article 14 (Standards, etc. for Selecting Projects Eligible for Subsidization from Urban Accounts)
(1) "Requirements prescribed by Presidential Decree" in the main sentence of Article 9 (2) 2 of the Act means the following requirements:
1. The relevant project must contribute to urban regeneration of the relevant region or provide some other public benefits by involving the installation and maintenance of public facilities or offering some land or buildings for the general public use;
2. The relevant project must be profitable enough to repay investments or loans from the Fund with future revenues therefrom;
3. Plans for the relevant project must be sufficiently specific and feasible.
(2) A person who intends to receive financing, investments, or loans prescribed in Article 9 (2) 2 of the Act shall prepare a project plan including the following matters and submit it to the Minister of Land, Infrastructure and Transport:
1. Materials explaining that the relevant person meets the requirements specified in each subparagraph of paragraph (1);
2. The location and floor space of the relevant project area;
3. The outline of a project relating to maintenance of buildings and sites thereof;
4. The outline of a project relating to maintenance of infrastructure and public facilities;
5. The period required to implement the relevant project;
6. A plan for acquiring a necessary site;
7. A plan for raising funds and using the Fund;
8. Any other matters prescribed by the Minister of Land, Infrastructure and Transport.
(3) The Minister of Land, Infrastructure and Transport shall determine whether to grant subsidies from the Fund, based on the project plan submitted under paragraph (2).
 Article 15 (Use of Urban Accounts)
"Projects prescribed by Presidential Decree" in Article 9 (2) 6 of the Act means the following:
1. Research and surveys to revitalize urban regeneration;
2. Planning and management activities to efficiently promote urban regeneration.
 Article 16 (Limits on Financing and Investment)
The limits on the total amount of financing and investment for each account referred to in Article 9 (3) of the Act shall be determined under a fund operation plan within the limit of 0.3 times the sum of the underlying net assets, reserves and surplus for each account: Provided, That no amount used to finance any agency specified in Article 9 (1) 2 (a) through (c) shall be included in the limits on the total amount of financing and investment for the housing account.
 Article 17 (Methods of Operating Surplus Funds)
Where any surplus funds exist in the Fund, the Minister of Land, Infrastructure and Transport may operate the funds by any of the following methods pursuant to Article 9 (4) of the Act:
1. Purchase of State bonds, public bonds, or any other securities referred to in Article 4 of the Financial Investment Services and Capital Markets Act;
2. Deposit to HUG or a fund re-trustee, etc. (referring to a financial institution, etc. re-entrusted with some of the affairs of the Fund by HUG or entrusted with the affairs by the Minister of Land, Infrastructure and Transport pursuant to Article 10 (3) of the Act; hereinafter the same shall apply);
3. Purchase of mortgage-backed securities not listed on the Korea Exchange, among mortgage-backed securities issued, based on loan assets sold by the Fund.
 Article 17-2 (Operation of Limited Liability Loans)
Limited liability loans from the Fund referred to in Article 9 (5) of the Act shall be operated according to the following standards:
1. Whether to provide loans must be determined, based on income levels of non-homeowners;
2. Securities for loans must be evaluated according to the following examination items:
(a) Degree of deterioration of the relevant housing;
(b) Locational characteristics of the relevant housing;
(c) Reasonableness of the price of the relevant housing;
3. The limits on loans and interest rates must be determined under the operation plan of the Housing and Urban Fund;
4. The details of the matters referred to in subparagraphs 1 and 2, the limits on loans, and interest rates must be publicly announced.
[This Article Newly Inserted by Presidential Decree No. 26708, Dec. 11, 2015]
 Article 18 (Operation, Management, etc. of Fund)
(1) Expenses incurred in performing the affairs entrusted pursuant to Article 10 (2) of the Act shall be borne by the Fund.
(2) Entrustment fees incurred when HUG re-entrusts some of the affairs entrusted thereto or the Minister of Land, Infrastructure and Transport entrusts the affairs to a financial institution, etc. pursuant to Article 10 (3) of the Act, shall be borne by the Fund, and the amount of the fees shall be determined by Ordinance of the Ministry of Land, Infrastructure and Transport.
(3) Where the Minster of Land, Infrastructure and Transport intends to enact or amend Ordinance of the Ministry of Land, Infrastructure and Transport concerning entrustment fees pursuant to paragraph (2), he/she shall first consult with the Minister of Strategy and Finance.
(4) HUG or a fund re-trustee, etc. shall report to the Minister of Land, Infrastructure and Transport on the status of financing for and operation of the Fund each month by the 20th day of the following month pursuant to Article 10 (4) of the Act.
(5) A fund re-trustee, etc. shall keep accounts of the Fund separately from their other accounts.
(6) The Minister of Land, Infrastructure and Transport may establish a housing and urban fund account within the Bank of Korea in order to clarify the revenues and expenditures of the Fund.
 Article 19 (Submission of Annual Reports)
(1) HUG and a fund re-trustee, etc. shall prepare an annual report on the Fund each fiscal year and submit it to the Minister of Land, Infrastructure and Transport by no later than February 20 of the following year, as prescribed by Ordinance of the Ministry of Land, Infrastructure and Transport.
(2) The annual report referred to in paragraph (1) shall be accompanied by the following documents:
1. A performance analysis report for the fund operation plan;
2. A balance sheet;
3. A statement of profits or losses;
4. A statement of appropriation of retained earnings or a statement of disposal of deficits;
5. Any other documents prescribed by Ordinance of the Ministry of Land, Infrastructure and Transport.
 Article 20 (Registration, etc. of Appointment of Agents)
(1) Where the President of HUG appoints an agent pursuant to Article 24 of the Act, he/she shall register the following matters with the registry at the seat of its principal office, branch office, or business office which employs such agent within two weeks after the appointment. The same shall also apply to any modification to registered matters:
1. The name, resident registration number, and address of the agent;
2. The name and location of the principal office, branch office, or business office which employs the agent;
3. Restrictions, if any, on the authority of the agent.
(2) Where an agent is dismissed, the dismissal shall be registered with the registry at the seat of the principal office, branch office, or business office which employs the agent within two weeks after such dismissal.
 Article 21 (Types of Guarantees and Guarantee Fees)
(1) The types of guarantees HUG may provide pursuant to Article 26 (1) 2 of the Act shall be as follows: <Amended by Presidential Decree No. 26763, Dec. 28, 2015; Presidential Decree No. 27445, Aug. 11, 2016>
1. Guarantee for the sale of housing: Any of the following guarantees provided where a project operator (including a joint project operator referred to in Article 16 of the Enforcement Decree of the Housing Act) constructs housing upon obtaining approval for the relevant project plan pursuant to the main sentence of Article 15 (1) of the Housing Act or Article 15 (3) of the same Act (including appurtenant facilities and welfare facilities; hereafter the same shall apply in this Article), or constructs, as a single building, housing for at least 30 households and facilities, other than housing, without obtaining approval for the relevant project plan pursuant to Article 27 (4) of the Enforcement Decree of the same Act:
(a) Guarantee for the sale of housing: A guarantee for sale of the relevant housing (including pre-use inspections referred to in Article 49 of the Housing Act or approval for use and the registration of indefeasible ownership referred to in Article 22 of the Building Act) or for a refund of the paid-up down payment and intermediate payment (applicable only when the project progress rate verified by a supervisor of the relevant housing is less than 80/100 and at least 2/3 of the occupants so desire; hereafter the same shall apply in item (b)), where the relevant project operator becomes unable to execute the relevant contract for the sale of housing due to bankruptcy or any other ground;
(b) Guarantee for lease of housing: A guarantee for lease of the relevant housing (including pre-use inspections and the registration of indefeasible ownership referred to in Article 49 of the Housing Act) or for a refund of the paid-up down payment and intermediate payment, where the relevant project operator becomes unable to execute the relevant lease contract due to bankruptcy or any other ground;
2. Guarantee for rental deposits: A guarantee for rental deposits for privately constructed rental housing referred to in Article 49 (1) of the Special Act on Private Rental Housing and Article 38 of the Enforcement Decree of the same Act;
3. Guarantee for repair of defects: A guarantee for repair of any defects which occur during the warranty period for defects referred to in Article 36 (1) of the Enforcement Decree of the Multi-Family Housing Management Act;
4. Guarantee for deposit of supervision fees: A guarantee for the payment of supervision fees that must be paid to a supervisor in connection with supervision, where a registered project operator referred to in Article 15 (2) of the Enforcement Decree of the Housing Act implements a housing construction project;
5. Guarantee for the construction of association housing: A guarantee for the construction of the relevant housing or for the payment of a specified amount, where a registered project operator (referring to a constructor who has concluded the relevant contract, in cases of a housing remodeling association defined in subparagraph 11 (c) of Article 2 of the Housing Act or a rearrangement project association referred to in Article 13 of the Act on the Maintenance and Improvement of Urban Areas and Dwelling Conditions for Residents), who implements a project jointly with a housing association referred to in Article 5 (2) of the Housing Act, becomes unable to fulfill his/her responsibility for constructing the housing (referring to responsibility for executing construction from the date the commencement of the construction is reported to the date of pre-use inspection) due to bankruptcy or any other ground;
6. Guarantee for redeemable housing bonds: A guarantee for redemption of the relevant bonds, where a project operator, who has issued redeemable housing bonds pursuant to Article 80 (1) of the Housing Act, fails to redeem the bonds in housing on the scheduled date of redemption due to bankruptcy or any other ground;
7. Guarantee for finance for housing projects: A guarantee for repayment of the principal of and interest on finance which is provided for a housing construction project and uses future cash revenues accruing from such project as a major source of repayment;
8. Guarantee for the execution of a subcontract and the payment of the consideration: A guarantee for the execution of a subcontract for housing construction as well as for the payment of the subcontract consideration, among the guarantees referred to in Article 13-2 of the Fair Transactions in Subcontracting Act;
9. Guarantee for finance for urban regeneration: A guarantee for repayment of the principal of and interest on finance which is provided for any project specified in any item of Article 9 (2) 2 of the Act and uses future cash revenues accruing from such project as a major source of repayment;
10. Any other guarantees prescribed by the Minister of Land, Infrastructure and Transport.
(2) The types of guarantees for asset-backed securities HUG may provide pursuant to Article 26 (1) 4 of the Act shall be as follows:
1. Guarantee for redemption of asset-backed securities;
2. Guarantee for repayment of credit extended by a financial institution to a company specializing in securitization, etc. referred to in Article 3 (1) of the Asset-Backed Securitization Act.
(3) Guarantee fees, etc. received from persons who use HUG shall be subject to approval from the Minister of Land, Infrastructure and Transport.
(4) HUG may determine and enforce the terms and conditions concerning the details, responsibilities, conditions, etc. of various types of guarantees it provides.
 Article 22 (Affairs)
(1) "Affairs prescribed by Presidential Decree" in Article 26 (1) 9 of the Act means the following:
1. Any of the following affairs performed to exempt HUG from a guarantee obligation or prevent losses accruing from the discharge of a guarantee obligation it may bear due to the relevant project operator's bankruptcy, etc., where HUG provides a guarantee for the sale of housing, guarantee for repair of defects, etc. pursuant to Article 21 (1):
(a) Temporarily purchasing housing under construction to lease or manage the housing;
(b) Purchasing asset-backed securities defined in subparagraph 4 of Article 2 of the Asset-Backed Securitization Act issued by a special-purpose company, etc. defined in subparagraph 5 of Article 2 of the same Act;
2. Overseas projects relating to the affairs specified in Article 26 (1) 1 through 7 of the Act.
(2) For the purpose of performing affairs specified in each subparagraph of Article 26 (1) of the Act, HUG may engage in any of the following activities: <Amended by Presidential Decree No. 27445, Aug. 11, 2016>
1. Conducting an inspection for guarantees, examination and execution of the Fund (including investigation of assets), etc., and requesting relevant persons to provide data;
2. Requesting the relevant supervisor of a construction project to submit data on the construction method, status of progress, materials used, quality, etc.
3. Activities relating to the provision of guarantees prescribed by Ordinance of the Ministry of Land, Infrastructure and Transport, such as an application for pre-use inspection referred to in Article 49 of the Housing Act (including approval for use referred to in Article 22 of the Building Act).
 Article 23 (Limits on Guarantees)
(1) The limits on the total amount of guarantees referred to in Article 27 of the Act shall be 50 times the equity capital.
(2) Any guarantee based on a guarantee or insurance by a financial institution, insurance company or any other similar institution or guarantee which receives a collateral shall not be included in the limits on the total amount of guarantees referred to in paragraph (1).
(3) The equity capital referred to in paragraph (1) shall be based on the account settled as at the end of the preceding year: Provided, That, where a capital increase has been executed during the business year, the equity capital shall be based on the account settled as at the completion of the capital increase.
 Article 24 (Accumulation of Reserves)
HUG shall accumulate a liability reserve similar to the reserve specified in Article 120 of the Insurance Business Act for each type of guarantee referred to in Article 26 (1) of the Act during every period for the settlement of accounts.
 Article 25 (Inspection of Management Soundness of HUG)
(1) Where the Financial Services Commission conducts an inspection necessary for maintaining the management soundness of HUG pursuant to Article 32 (2) of the Act, it may set inspection standards and notify HUG thereof in advance.
(2) Where necessary for conducting an inspection pursuant to paragraph (1), the Financial Services Commission may request the Governor of the Financial Supervisory Service to dispatch an official under his/her jurisdiction thereto.
(3) A person who inspects the management soundness of HUG shall carry an identification certificate indicating his/her authority and present it to relevant persons.
 Article 26 (Management of Personally Identifiable Information)
(1) If it is inevitable for performing any of the following affairs, the Minister of Land, Infrastructure and Transport (including persons entrusted or re-entrusted with the duties of the Minister of Land, Infrastructure and Transport pursuant to Article 10 (2) or (3) of the Act) may manage data which includes resident registration numbers referred to in subparagraph 1 of Article 19 of the Enforcement Decree of the Personal Information Protection Act: <Amended by Presidential Decree No. 27571, Nov. 1, 2016>
1. Affairs relating to the purchase of national housing bonds prescribed in Article 8 of the Act;
2. Affairs relating to loans referred to in Article 9 (1) 1 (a) through (e) and (g) of the Act (including information on lessors and household members);
3. Affairs relating to financing, investments, or loans referred to in Article 9 (2) 2 of the Act.
(2) If it is inevitable for performing any of the following affairs, HUG may manage data which includes resident registration numbers referred to in subparagraph 1 of Article 19 of the Enforcement Decree of the Personal Information Protection Act, passport numbers referred to in subparagraph 2 of Article 19 of the same Decree, or foreigner registration numbers referred to subparagraph 4 of Article 19 of the same Decree:
1. Affairs relating to guarantees prescribed in Article 26 (1) 2 of the Act;
2. Affairs relating to the execution of guarantees as well as the exercise of the right to indemnity prescribed in Article 26 (1) 3 of the Act;
3. Affairs relating to guarantees for asset-backed securities prescribed in Article 26 (1) 4 of the Act as well as the management of securitization assets prescribed in Article 26 (1) 5 of the Act;
4. Affairs relating to acquisition, management, and renovation of real estate as well as receipt of requests for disposal thereof under Article 26 (1) 6 of the Act;
5. Affairs relating to guarantees, provision of guarantees, or loans (including affairs relating to the filing of claims following business operations on guarantees, provision of guarantees, or loans), among the affairs entrusted pursuant to Article 26 (1) 7 of the Act;
6. Affairs relating to underwriting of a trust prescribed in Article 26 (2) of the Act;
7. Affairs relating to the affairs referred to in Article 22 (1) 1 of the Act.
ADDENDA
Article 1 (Enforcement Date)
This Decree shall enter into force on July 1, 2015.
Article 2 (Transitional Measures concerning Guarantees by Korea Housing Guarantee Company)
Any guarantee provided in accordance with the articles of incorporation of Korea Housing Guarantee Company pursuant to Article 106 (1) 9 of the Enforcement Decree of the Housing Act as at the time this Decree enters into force shall be deemed a guarantee provided under Article 21 (1) 10.
Article 3 Omitted.
Article 4 (Relationship with other Acts)
Any citation of the Enforcement Decree of the Housing Act, or of the former provisions thereof, in any other statute as at the time this Decree enters into force, shall be deemed a citation of this Decree or the corresponding provisions of this Decree in lieu of the Enforcement Decree of the Housing Act or the former provisions thereof, if such corresponding provisions exist herein.
ADDENDUM <Presidential Decree No. 26708, Dec. 11, 2015>
This Decree shall enter into force on December 12, 2015.
ADDENDA <Presidential Decree No. 26763, Dec. 28, 2015>
Article 1 (Enforcement Date)
This Decree shall enter into force on December 29, 2015.
Articles 2 through 10 Omitted.
ADDENDA <Presidential Decree No. 27444, Aug. 11, 2016>
Article 1 (Enforcement Date)
This Decree shall enter into force on August 12, 2016.
Articles 2 through 8 Omitted.
ADDENDA <Presidential Decree No. 27445, Aug. 11, 2016>
Article 1 (Enforcement Date)
This Decree shall enter into force on August 12, 2016.
Articles 2 through 22 Omitted.
ADDENDUM <Presidential Decree No. 27571, Nov. 1, 2016>
This Decree shall enter into force on the date of its promulgation.