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MICROFINANCE SUPPORT ACT

Act No. 14095, Mar. 22, 2016

Amended by Act No. 15020, Oct. 31, 2017

CHAPTER I GENERAL PROVISIONS
 Article 1 (Purpose)
The purpose of this Act is to contribute to stabilization of ordinary people’s lives and balanced development of economy and society by supporting the financial life of ordinary people and the debt settlement for individual debtors by establishing the Korea Inclusive Finance Agency and the Credit Counseling and Recovery Service.
 Article 2 (Definition)
The terms used in this Act shall be defined as follows: <Amended by Act No. 15020, Oct. 31, 2017>
1. “Financial company” means any of the following persons:
(a) Banks under the Banking Act;
(b) The Korea Development Bank under the Korea Development Bank Act;
(c) The Industrial Bank of Korea under the Industrial Bank of Korea Act;
(d) Insurance companies under the Insurance Business Act;
(e) Unions, cental associations, Nonghyup Bank, Nonghyup Life Insurance, Co., Ltd., and Nonghyup Property and Casualty Insurance, Co., Ltd. under the Agricultural Cooperatives Act;
(f) Unions and their cental associations under the Fisheries Cooperatives Act;
(g) Mutual savings banks under the Mutual Savings Banks Act;
(h) Community credit cooperatives and their cental associations under the Community Credit Cooperatives Act;
(i) Credit unions and the National Credit Union Federation of Korea under the Credit Unions Act;
(j) Financial investment operators and merchant banks under the Financial Investment Services and Capital Markets Act;
(k) Communications agencies under the Postal Savings and Insurance Act;
(l) Specialized credit finance company under the Specialized Credit Finance Business Act;
(m) Unions and their cental association under the Forestry Cooperatives Act;
(n) Any person who engages in financial business under other Acts, as prescribed by Presidential Decree;
2. “Deposit, etc.” means any of the following:
(a) Money and interest thereon accrued due to the financial company bearing the debt from many unspecified persons by means of deposit (including cost of issuing cashier's check issued pursuant to the Check Act (hereinafter referred to as cashier's check)), installment savings, installment, etc;
(b) Refunds, insurance, and dividends of a contractor paid in the future pursuant to an insurance contract with the financial company;
3. “Dormant deposit” means the deposit among deposits of the financial company in which the extinctive prescription of bonds or claim has been completed pursuant to the regulations of the relevant Act and the contract with the person concerned;
4. “Original dormant deposit holder” means a person who has lost the bonds and claim on the deposit, etc. by operation of extinctive prescription;
5. “Support business for the financial life of ordinary people” means the following business:
(a) Business for credit loans to support business start-ups, employment, housing, medical-care, and education of low-income people;
(b) Business for credit loans to support the economic rehabilitation of debt delinquents;
(c) Business to support the execution and performance of the insurance contracts with low-income people;
(d) Services for placement of comprehensive counseling, financial products, etc. to facilitate financial life of low-income people;
(e) Other businesses prescribed by Presidential Decree, for the stabilization of ordinary people’s living;
6. “Business execution organization” means a person qualified as prescribed by Presidential Decree in consideration of the financial capacity, the business acumen, etc. as a person who performs the support business for the financial life of ordinary people;
7. “Credit guarantee” means that assured by the Korea Inclusive Finance Agency under Article 3 on the following debts borne by an individual:
(a) Monetary debts an individual owes to the financial company, upon receipt of a loan, benefit, etc. of funds from the financial company;
(b) Other monetary debt determined by Presidential Decree in consideration of the necessity, etc. of support for the financial life of ordinary people among the debt of an individual.
CHAPTER II KOREA INCLUSIVE FINANCE AGENCY
SECTION 1 General Provisions
 Article 3 (Establishment)
(1) The Korea Inclusive Finance Agency (hereinafter referred to as the “Agency”) shall be established to support and facilitate financial life of ordinary people.
(2) The Agency shall be a corporation.
(3) Except as otherwise expressly provided for in this Act concerning the Agency, the provisions concerning a limited company under the Commercial Act shall apply mutatis mutandis.
 Article 4 (Capital)
(1) The capital of the Agency shall be one trillion won.
(2) The capital of the Agency may be invested by any of the following persons:
1. Government;
2. Financial company;
3. The Korea Asset Management Corporation (hereinafter referred to as 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;
4. Other persons prescribed by Presidential Decree.
(3) Matters necessary for making the investment under paragraph (2) shall be prescribed by Presidential Decree.
 Article 5 (Registration)
(1) The Agency shall be incorporated with registration for incorporation in the location of its main office.
(2) The registration for incorporation, the registration for modification, and other registration for the Agency under paragraph (1) shall be prescribed by Presidential Decree.
(3) The Agency shall not prevail over any third party thereon, unless it has made a registration on the matter required to be registered.
 Article 6 (Office)
(1) The location of main office of the Agency shall be determined by the articles of incorporation thereof.
(2) The Agency may establish the branch offices or the local offices where necessary as determined by the articles of incorporation.
 Article 7 (Articles of Association)
(1) The articles of incorporation of the Agency shall include the following matters:
1. Objectives;
2. Name;
3. Matters concerning the main office, branch offices, and local offices;
4. Matters concerning the capital;
5. Matters concerning the operating committee under Article 8;
6. Matters concerning the board of directors under Article 16;
7. Matters concerning the Dormant Deposit Management Committee under Article 20;
8. Matters concerning the issuance of bonds under Article 33;
9. Matters concerning executive officers and employees;
10. Matters concerning duties and performing the same;
11. Matters concerning assets and accounting;
12. Matters concerning amendments to the articles of incorporation;
13. Matters concerning public announcement and the method thereof;
14. Other matters prescribed by Presidential Decree.
(2) To amend the articles of incorporation, the Agency shall in advance obtain authorization from the Financial Services Commission after resolution by the operating committee under Article 8.
SECTION 2 Operating Committee
 Article 8 (Establishment of Operating Committee)
(1) The Agency shall have an operating committee.
(2) The operating committee shall deliberate and decide on the following:
1. Establishment and modification of the basic policy and work plan concerning the business operation of the Agency;
2. Amendment to the articles of incorporation;
3. Preparation and modification of the operational guidelines under Article 24 (4);
4. Formulation, amendment, and appropriation of the budget;
5. Other matters determined by the articles of incorporation, concerning the operation of the Agency.
 Article 9 (Composition of Operating Committee)
(1) The operating committee shall be comprised of 11 members, from among the following:
1. Director of the Agency;
2. Vice Director of the Agency;
3. One person each appointed respectively by the Minister of Strategy and Finance and the Chairman of the Financial Services Commission, from among public officials in general service belonging to their affiliated Senior Executive Service;
4. A person appointed by the Director of the Financial Supervisory Service, from among his/her affiliated Vice Directors;
5. A person commissioned by the Financial Services Commission, from among any of the following persons having abundant knowledge and experience concerning consumer protection:
(a) A person with at least five years’ work experience in a consumer organization registered under Article 29 of the Framework Act on Consumers;
(b) A person who has majored in the field related to consumers and has at least five years’ work experience in a position higher than associate professor or equivalent thereto at universities, colleges or research institutions;
(c) A person qualified as a lawyer or certified public accountant with at least five years’ work experience in the business related to the relevant qualifications;
(d) A person with at least five years’ work experience in a non-profit, non-governmental organization registered under Article 4 of the Assistance for Non-Profit, Non-Governmental Organizations Act;
(e) Other persons with the qualifications prescribed by Presidential Decree and with abundant knowledge and experience concerning finance, economy, and society.
(2) The term of office of each member referred to in paragraph (1) 5 shall be two years. The same shall also apply to members newly commissioned due to a vacancy.
(3) Members of the operating committee shall be non-standing and unpaid: Provided, That the actual expenses incurred in conducting duties may be paid, as prescribed by the articles of incorporation.
 Article 10 (Operation of Operating Committee)
(1) The Director of the Agency shall serve as the chairperson of the operating committee.
(2) The chairperson shall represent the operating committee, and manage all duties of the operating committee.
(3) Where the chairperson fails to perform duties due to any extenuating circumstance, the member predetermined by the operating committee shall act on behalf of the chairperson.
(4) The meeting of the operating committee shall be convened by the chairperson, as prescribed by the articles of incorporation, where the chairperson deems it necessary or any request is made by one-third of registered members.
(5) The operating committee shall be convened when a majority of registered members are present, and shall pass resolutions with the consent of a majority of those present.
(6) Except as expressly provided for in this Section, matters necessary for the operation of the operating committee shall be prescribed by Presidential Decree.
SECTION 3 Executive Officers and Employees
 Article 11 (Executive Officers)
(1) The Agency shall have up to six directors, including a Director and a Vice Director, and one auditor.
(2) The Director of the Agency shall be appointed and dismissed by the President upon the recommendation of the Chairman of the Financial Services Commission, from among persons with abundant knowledge and experience in microfinance.
(3) The Vice Director and directors shall be appointed and dismissed by the Financial Services Commission upon the recommendation of the Director.
(4) The auditor shall be appointed and dismissed by the Financial Services Commission.
(5) Each executive officer’s term of office shall be three years. The same shall also apply to members newly appointed due to a vacancy.
 Article 12 (Duties of Executive Officers)
(1) The Director shall represent the Agency and manage all duties of the Agency.
(2) Where the Director is unable to perform his/her duties due to any extenuating circumstance, the Vice Director shall act on behalf of the Director.
(3) The directors shall share their duties, as determined by the articles of incorporation.
(4) The auditor shall audit duties and accounting of the Agency.
 Article 13 (Grounds for Disqualification of Executive Officers)
None of the following persons shall become an executive officer of the Agency:
1. A person who is not a national of the Republic of Korea;
2. A person who falls under any subparagraph of Article 33 of the State Public Officials Act.
 Article 14 (Guarantee of Status of Executive Members)
Except in any of the following cases, no executive officer shall be dismissed against his/her will during his/her term of office:
1. Where he/she falls under any subparagraph of Article 13;
2. Where he/she violates this Act or any order or articles of incorporation under this Act;
3. Where he/she becomes seriously unable to perform his/her duties due to mental or physical disorder.
 Article 15 (Restriction on Power of Representation of Director, etc.)
The Director, or the Vice Director who acts on behalf of the Director pursuant to Article 12 (2), shall not represent the Agency on matters in which any of his/her interest conflicts with the interests of the Agency, and instead the auditor shall represent the Agency.
 Article 16 (Board of Directors)
(1) In order to deliberate on and resolve matters to be referred to the meeting of the operating committee and other significant matters concerning the affairs of the Agency determined by the articles of incorporation, the board of directors shall be established under the Agency.
(2) The board of directors shall be comprised of a Director, Vice Director, and directors.
(3) The Director shall convene meetings of the board of directors, and shall serve as the chairperson thereof.
(4) The board of directors shall be convened when a majority of members are present, and shall pass resolutions with the consent of a majority of those present.
(5) The auditor may attend meetings of the board of directors and present his/her opinion.
 Article 17 (Appointment of Agent)
The Director may appoint an agent having authority to take any judicial or extrajudicial action concerning duties of the Agency, from among executive officers or employees.
 Article 18 (Appointment and Dismissal of Employees)
The employees of the Agency shall be appointed or dismissed by the Director.
 Article 19 (Mandatory Prohibition of Concurrent Offices, etc.)
(1) No executive officer or employee of the Agency shall engage in any work for profits other than their duties.
(2) No executive officer or employee of the Agency shall hold any other job without permission of the Director.
SECTION 4 Dormant Deposit Management Committee
 Article 20 (Establishment, etc. of Dormant Deposit Management Committee)
(1) In order to deliberate on and resolve matters concerning the management and operation of dormant deposits contributed by a financial company pursuant to Article 40, the Agency shall establish the dormant deposit management committee (hereinafter referred to as the “Management Committee”).
(2) Members of the Management Committee (hereinafter referred to as the “Management Member”) shall be comprised of up to 15 members including the chairperson of the Management Committee.
(3) The position of the chairperson shall be held concurrently by the Director of the Agency.
(4) The Management Members shall be comprised of the following persons:
1. One Vice Minister of Strategy and Finance appointed by the Minister of Strategy and Finance;
2. Vice Minister of Health and Welfare;
3. Vice Minister of Employment and Labor;
4. Vice Chairman of Financial Services Commission;
5. Vice Director of the Agency;
6. President of Korea Federation of Banks;
7. President of the association composed of life insurance companies (hereinafter referred to as “President of Korea Life Insurance Association), among insurance associations established under Article 175 of the Insurance Business Act;
8. President of the association composed of non-life insurance companies (hereinafter referred to as “President of General Insurance Association of Korea”), among insurance associations established under Article 175 of the Insurance Business Act;
9. A person appointed by the Financial Services Commission, from among persons with abundant knowledge and experience in economy and society; two persons appointed by the Financial Services Commission upon the recommendation of the Minister of Health and Welfare; and a person appointed by the Financial Services Commission upon the recommendation of the Minister of Employment and Labor.
(5) The term of office of Management Members referred to in paragraph (4) 9 shall be three years, and may be reappointed only once. The same shall also apply to members newly appointed due to a vacancy.
(6) Management Members shall be non-standing and unpaid: Provided, That the actual expenses necessary for performing duties may be paid, as prescribed by the articles of incorporation.
 Article 21 (Operation of Management Committee)
(1) The meetings of the Management Committee shall be convened by the chairperson, as prescribed by the articles of incorporation, where the chairperson deems it necessary or any request is made by one-third of registered members.
(2) The meetings of the Management Committee shall be convened when a majority of current members are present, and shall pass resolutions with the consent of a majority of those present.
(3) Other matters necessary to operate the Management Committee shall be prescribed by Presidential Decree.
 Article 22 (Grounds for Disqualification of Management Members)
None of the following persons shall become a Management Member:
1. A person who is not a national of the Republic of Korea;
2. Any person falling under any subparagraph of Article 33 of the State Public Officials Act.
 Article 23 (Guarantee of Status of Management Members)
Except in any of the following cases, no Management Member shall be dismissed against his/her will during his/her term of office:
1. Where he/she falls under any subparagraph of Article 22;
2. Where he/she violates this Act or any order or articles of incorporation under this Act;
3. Where he/she becomes seriously unable to perform his/her duties due to mental or physical disorder.
SECTION 5 Duties
 Article 24 (Duties of Agency)
(1) The Agency shall perform the following duties:
1. Counseling, education, and provision of information concerning the financial life of ordinary people;
2. Recommendation of employment, financial products, etc. for supporting the economic independence of ordinary people;
3. Investigation, research, and foreign exchange and cooperation concerning the financial life of ordinary people;
4. Credit guarantees and fund loans to ordinary people;
5. Contribution and investment pursuant to the performance of duties of the Agency;
6. Contribution to and investment in financial companies on the condition of support for microfinance;
7. Contribution to and investment in financial companies with excellent results of support for microfinance;
8. Funding for the Small-Loan Financial Support Center determined by President Decree, operated by the local government;
9. Support and supervision for a business execution organization;
10. Loaning and contributing funds pursuant to the execution of duties under subparagraph 9;
11. Operating office of the Microfinance Committee under Article 29;
12. Management and operation of the dormant deposit the financial company has contributed to the dormant deposit control account under Article 40;
13. Payment of the amount in substitution for the dormant deposit for the original dormant deposit holder under Article 45;
14. Business commissioned by the Credit Counseling and Recovery Service under Article 79 (3);
15. Establishment and operation of the total information system for microfinance;
16. Other duties prescribed by Presidential Decree, necessary for supporting the financial life of ordinary people.
(2) The Agency may collect fees and expenses concerning the execution of duties under paragraph (1) 1, 2, 4, and 14, as determined by the operating committee.
(3) The Agency may exempt or reduce fees concerning the execution of duties under paragraph (2) on the 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.
(4) The Agency shall prepare an operating manual necessary to perform duties under paragraph (1), and finalize such manual after resolution by the operating committee. The same shall also apply where it intends to amend the manual.
 Article 25 (Operational Plans)
(1) The Agency shall prepare an operational plan every business year, and obtain approval from the Financial Services Commission after resolution by the operating committee.
(2) To obtain approval under paragraph (1), the Agency shall submit its operational plan to the Financial Services Commission by no later than a month before the relevant business year begins.
(3) To alter an operational plan, the Agency shall first obtain an approval from the Financial Services Commission after resolution by the operating committee.
 Article 26 (Support for Financial Life of Ordinary People)
(1) The Agency may support business execution organizations.
(2) To obtain support under paragraph (1), business execution organizations shall apply to the Agency, as prescribed by Presidential Decree.
 Article 27 (Obligation of Business Execution Organizations)
(1) No business execution organization shall use support funds for purposes other than for performing support business for the financial life of ordinary people, nor shall it obtain such funds by making a false application.
(2) Where a business execution organization has completed its business or its fiscal year has terminated, it shall prepare a business performance report and submit it to the Agency, as prescribed by Presidential Decree.
(3) Where the Agency requests the relevant materials from business execution organizations to determine whether paragraph (1) has been violated, they shall submit such materials unless any extenuating circumstance exists.
 Article 28 (Return, etc. of Support Fund)
(1) Where any business execution organization has used support funds for other than intended purposes or has obtained such funds by making a false application, in violation of Article 27 (1), the Director of the Agency shall revoke all or part of a decision to grant support funds.
(2) Where a decision to grant support funds has been revoked, the relevant business execution organization shall return the support funds.
(3) Except as expressly provided for in paragraphs (1) and (2), matters necessary for the supervision, return, etc. of support funds shall be prescribed by Presidential Decree.
 Article 29 (Establishment and Operation of Microfinance Committee)
(1) In order to formulate and consistently implement policy concerning financial life of ordinary people from a comprehensive point of view, and to efficiently discuss and coordinate matters necessary for consultation between the relevant central administrative agency and private institutions or organizations, the Agency may have the Microifinance Committee (hereafter referred to as the “Committee” in this Article) comprised of the Financial Services Commission, the Financial Supervisory Service, financial companies, institutions or organizations, etc. related to the support business for the financial life of ordinary people.
(2) The Agency may have the secretariat under the Committee, to be comprised of staff members of the participating institutions.
(3) Matters necessary for organization, operation, etc. of the Committee and the secretariat shall be prescribed by Presidential Decree.
SECTION 6 Finance and Accounting
 Article 30 (Business Year, Budget, and Settlement)
(1) The business year of the Agency shall coincide with the fiscal year of the Government.
(2) The Agency shall formulate the budget for income and expenditure before each business year begins, and shall obtain approval from the Financial Services Commission after resolution by the operating committee. The same shall also apply where it intends to amend the budget.
(3) To obtain approval under paragraph (2), the Agency shall submit the budgetary proposal to the Financial Services Commission by no later than one month before the relevant fiscal year begins.
(4) The Agency shall prepare a balance sheet within three months after each business year, and shall submit it to the Financial Services Commission after resolution by the operating committee.
 Article 31 (Handling of Profits and Losses)
(1) Where profits accrue upon closing accounts each business year, the Agency shall accumulate the total amount of profit.
(2) Where any loss accrues from the closing account of every business year, the Agency shall compensate them from the amount accumulated under paragraph (1).
 Article 32 (Operation of Surplus Funds)
The Agency may operate surplus funds in any of the following manners:
1. Deposit to financial companies;
2. Purchase of State bonds, municipal bonds, and bonds guaranteed to be paid by the Government and local governments;
3. Purchase of bonds issued or guaranteed to be paid by financial companies;
4. Other methods determined by the operating committee for operating surplus funds.
 Article 33 (Issuance of Bonds)
(1) If necessary to support the financial life of ordinary people, the Agency may issue bonds, upon obtaining approval from the Financial Services Commission after resolution by the operating committee.
(2) Bonds issued by the Agency shall be deemed special bond securities referred to in Article 4 (3) of the Financial Investment Services and Capital Markets Act.
(3) Except for matters expressly provided for in paragraphs (1) and (2), matters necessary for issuance of bonds shall be prescribed by Presidential Decree.
 Article 34 (Borrowing of Funds)
The Agency may borrow funds necessary to perform its duties, from financial companies or other persons.
 Article 35 (Sale of Claim for Reimbursement, etc.)
If necessary to efficiently collect and manage claims for reimbursement and recover loans (hereinafter referred to as “claim for reimbursement, etc.”), the Agency may sell the claim for reimbursement, etc. to the Korea Asset Management Corporation (including corporations invested by the Korea Asset Management Corporation) and other persons prescribed by Presidential Decree, after resolution by the board of directors.
 Article 36 (Free Loans etc. of Public Property)
(1) If deemed necessary to establish and operate the Agency and to perform its duties, local governments may lend public property to the Agency for rent-free or allow it to use and make a profit therefrom, notwithstanding the Public Property and Commodity Management Act.
(2) Matters necessary for the details, conditions, and procedures for lending, use, and profit-making under paragraph (1) shall be prescribed by Presidential Decree.
 Article 37 (Receipt of Donations)
(1) Notwithstanding the main sentence of Article 5 (2) of the Act on Collection and Use of Donations, the Agency may receive donations deposited voluntarily by corporations, organizations, individuals, etc. for the sake of the duties under each subparagraph of Article 24 (1).
(2) The Agency shall manage donations received pursuant to paragraph (1), in a separate account.
(3) Matters necessary for procedures, etc. of receiving donations under paragraph (1) shall be prescribed by Presidential Decree.
 Article 38 (Separate Handling of Accounting)
The Agency shall handle separate accounting for each managed account.
SECTION 7 Management of Dormant Deposits
 Article 39 (Establishment of Dormant Deposit Management Account)
The Agency shall establish a dormant deposit management account (hereinafter referred to as “Dormant Account”) in order to manage and operate dormant deposit effectively and fairly.
 Article 40 (Contribution of Dormant Deposit)
(1) Financial companies may contribute dormant deposits to the Dormant Account.
(2) To contribute dormant deposits to the Dormant Account pursuant to paragraph (1), financial companies shall submit the name, address, and resident registration number of the original dormant deposit holder; the amount of dormant deposit; and other materials prescribed by Presidential Decree, to the Agency: Provided, That when funding the cost of issuing cashier’s check, financial companies shall submit the information of drawer and drawee of cashier’s check, cashier’s check number, its face value, and other data prescribed by Presidential Decree to the Agency. <Amended by Act No. 15020, Oct. 31, 2017>
 Article 41 (Financial Resources of Dormant Account)
The Dormant Account shall be managed with each of the following financial resources:
1. Dormant deposit contributed by financial companies pursuant to Article 40;
2. Donations from corporations, organizations, and individuals;
3. Other profits.
 Article 42 (Separate Handling of Accounting)
The dormant deposit under subparagraph 1 of Article 41 among the financial resources managed by the dormant account shall be separately handled for accounting, from other managed financial resources; thereafter, it shall have separate accounting again, as classified into the items under subparagraph 2 of Article 2.
 Article 43 (Materials Inquiry of Original Dormant Deposit Holders)
The Management Committee shall require an original dormant deposit holder to inquire into materials under the main sentence of Article 40 (2), as prescribed by Presidential Decree: Provided, that this shall not apply where the cost of issuing cashier’s check is funded. <Amended by Act No. 15020, Oct. 31, 2017>
 Article 44 (Notification to Original Dormant Deposit Holders)
(1) Where financial companies have determined to contribute the dormant deposit pursuant to Article 40 (1), they shall notify the original dormant deposit holders, of their contribution, by one month before contributing a deposit of at least the amount determined by Presidential Decree. Provided, That this shall not apply where the cost of issuing cashier’s check is funded. <Amended by Act No. 15020, Oct. 31, 2017>
(2) The method of notification under paragraph (1) and other necessary matters shall be prescribed by Presidential Decree.
 Article 45 (Request, etc. for Payment of Dormant Deposit)
Where the original dormant deposit holders requests the payment after the dormant deposit has been contributed to the dormant account, the Management Committee shall pay the amount in lieu of the dormant deposit, to the relevant original dormant deposit holders.
SECTION 8 Credit Guarantee
 Article 46 (Installation of Credit Guarantee Account)
The Agency shall establish the credit guarantee account (hereinafter referred to as the “Guarantee Account”) in order to provide credit guarantee.
 Article 47 (Composition of Guarantee Account)
(1) The Guarantee Account shall use the following as its financial resources:
1. Contributions by the Government;
2. Contributions by financial companies;
3. Revenue from guarantee fees;
4. Revenue accruing from the exercise of a right to indemnity;
5. Revenue accruing from the operation of the Guarantee Account;
6. Borrowings from the funds managed and operated by the Government;
7. Other funds prescribed by Presidential Decree for the composition of the Guarantee Account.
(2) Any of the following financial companies shall contribute the amount pursuant to the rate prescribed by Presidential Decree not exceeding 1/1,000 of annual rate on its loans, to the Agency:
1. Associations under the Agricultural Cooperatives Act;
2. Associations under the Fisheries Cooperatives Act;
3. Mutual savings banks under the Mutual Savings Banks Act;
4. Credit cooperatives under the Community Credit Cooperatives Act;
5. Credit unions under the Credit Unions Act;
6. Associations under the Forestry Cooperatives Act.
(3) The scope of loans under paragraph (2), the method and timing for making contributions, and other matters necessary for contribution, shall be prescribed by Presidential Decree.
 Article 48 (Use of Guarantee Account)
The Guarantee Account shall be used for the following:
1. Performance of guaranteed obligation;
2. Repayment of the principal and interest for borrowings;
3. Expenses in the establishment, operation, and management of the Guarantee Account;
4. Research for improving, etc. of soundness upon the Guarantee Account;
5. Other matters prescribed by Presidential Decree as necessary for achieving the objectives of installation of the Guarantee Account.
 Article 49 (Limit of Guarantee)
(1) The upper limit of the total amount the Agency may guarantee at the risk of the Guarantee Account shall be prescribed by Presidential Decree within the scope not exceeding 15 times the amount of the funds under Article 47 (1) plus its profit carried over.
(2) The upper limit of the amount the Agency may guarantee for the same individual at the risk of the Guarantee Account, shall be publicly announced through the website, etc., determined by the Financial Services Commission.
 Article 50 (Establishment of Guaranty Relations)
(1) Upon having determined to provide a credit guarantee, the Agency shall notify such fact to both the individual who intends to obtain the credit guarantee and the creditor of the debt who intends to provide the credit guarantee (hereinafter referred to as “creditor”), respectively.
(2) Guaranty relations shall be established where claim and obligation relations are formed between the individual who intends to obtain a credit guarantee and the creditor.
(3) Unless the main claim and obligation relations are established within 60 days from the date of notification under paragraph (1), the relevant guaranty relations shall not be established.
 Article 51 (Obligation of Creditor)
Upon receipt of notification pursuant to Article 50 (1), a creditor shall without delay notify the Agency of such fact, in any of the following cases:
1. Where the main claim and obligation relations are established;
2. Where all or some of main debts is terminated;
3. Where a debtor fails to discharge the debt;
4. Where a debtor loses the benefit of time limit;
5. Other cases where any ground likely to affect the guaranty debt arises.
 Article 52 (Guaranty Fees, etc.)
(1) The Agency may collect guaranty fees from a person who obtains a credit guarantee, as prescribed by Presidential Decree, within the scope not exceeding 5/100 of the amount being assured of the credit guarantee in consideration of the operational status of the Guarantee Account.
(2) Where a person having received a credit guarantee has not been released from the obligation to perform the guaranteed obligation due to failing to discharge the debt within the deadline, the Agency may receive the additional guaranty fees from a person having received the credit guarantee within the scope not exceeding 25/100 of the annual interest rate of the amount having not been discharged among the guaranty debt, as prescribed by Presidential Decree.
 Article 53 (Discharge of Guaranty Debt)
(1) Where an event of default prescribed by Presidential Decree occurs, a creditor may claim the discharge of the guaranty debt to the Agency.
(2) In receipt of a claim of discharge from the creditor under paragraph (1), the Agency shall, without delay, discharge the main debt and subordinated debt prescribed by Presidential Decree.
 Article 54 (Exercise, etc. of Claim for Reimbursement)
(1) Upon discharging a guaranty debt, the Agency may exercise a claim for reimbursement.
(2) Where the Agency has discharged the guaranty debt, a creditor shall, without delay, send the Agency materials necessary for the Agency to exercise the claim for reimbursement, and actively cooperate in its exercise of the claim for reimbursement.
(3) Where a debtor falls under any of the following, the Agency may postpone the exercise of the claim for reimbursement after resolution by board of directors:
1. Where a debtor is deemed to have no remaining property, after such property is appropriated for expenses incurred in exercising the claim for reimbursement;
2. Where it is deemed possible that the ability to repay the debt of a future debtor is likely to increase when the exercise of the claim for reimbursement is postponed;
3. Other cases prescribed Presidential Decree as necessary to retrieve the claim for reimbursement.
(4) The Agency may take the following measures, as a follow-up management of the acquired claim for reimbursement:
1. Where it is inevitable to preserve the claim for reimbursement: Acquisition of the collateral;
2. Where no practical benefit exists in exercising the claim for reimbursement by means of the legal procedure or any other method: Amortization of the claim for reimbursement.
(5) Extinctive prescription for a claim for reimbursement shall be completed, unless it is exercised within ten years.
(6) In cases prescribed by Presidential Decree, such as where a debtor is unable to redeem due to his/her death or mental disorder, the Agency may exempt the repayment of all or some of the claim for reimbursement.
 Article 55 (Amount of Loss)
(1) Upon discharging a guaranty debt, the Agency may collect the amount of loss from the relevant debtor against the discharged amount within the scope not exceeding 20/100 of the annual interest rate, as prescribed by Presidential Decree.
(2) The Agency may reduce and/or exempt all or some of the amount of loss for a debtor who has made a contract to repay the claim for reimbursement in lump sum or by installment.
CHAPTER III CREDIT COUNSELING AND RECOVERY SERVICE
SECTION 1 General Provisions
 Article 56 (Establishment)
(1) A credit counseling and recovery service (hereinafter referred to as the “Committee”) shall be established for assistance, etc. on debt settlement of an individual debtor.
(2) The Committee shall be a corporation.
(3) Except as otherwise expressly provided for in this Act concerning the Committee, the provisions concerning an incorporated association under the Civil Act shall apply mutatis mutandis.
 Article 57 (Registration)
(1) The Committee shall be incorporated upon registration for incorporation at the location of its main office.
(2) Matters concerning the registration for incorporation under paragraph (1), the registration for alteration, and other registration, shall be prescribed by Presidential Decree.
(3) The Committee shall not prevail over a third party, unless relevant matters to be registered are registered.
 Article 58 (Office)
The location of the Committee’s main office shall be determined by the articles of incorporation.
 Article 59 (Articles of incorporation)
(1) The articles of incorporation of the Committee shall include the following:
1. Objectives;
2. Name;
3. Matters concerning offices;
4. Matters concerning businesses;
5. Matters concerning members;
6. Matters concerning property and accounting;
7. Matters concerning organization;
8. Matters concerning amendments to the articles of incorporation;
9. Matters concerning public announcement and the method thereof;
10. Other matters prescribed by Presidential Decree.
(2) To amend the articles of incorporation, the Committee shall first obtain authorization from the Financial Services Commission.
 Article 60 (Business of the Committee)
The Committee shall deliberate on and resolve the following:
1. Formulation and implementation of business plans of the Committee;
2. Formulation, amendment, and abolition of the articles of incorporation and regulations of the Committee;
3. Matters concerning agreements on credit recovery support under Article 75;
4. Debt counseling for an individual debtor, the receipt of an application for supporting debt settlement, and assistance in debt settlement;
5. Follow-up management for an individual debtor whose debt settlement has been decided;
6. Application for rehabilitation procedures or bankruptcy procedures under the Debtor Rehabilitation and Bankruptcy Act for an individual debtor, and support for all necessary matters therefor;
7. Other matters deemed necessary by the Committee.
SECTION 2 Composition, etc. of the Committee
 Article 61 (Composition of the Committee)
(1) The Committee shall be comprised of up to 15 members including a Chairperson.
(2) The Chairperson shall be appointed by the President upon the recommendation by the Chairman of the Financial Services Commission, from among persons with abundant knowledge and experience regarding debt settlement.
(3) The following persons shall be members:
1. President of Korea Federation of Banks Association, Inc.;
2. President of Korea Life Insurance Association;
3. President of General Insurance Association of Korea;
4. President of Specialized Credit Financial Business Association incorporated pursuant to Article 62 of the Specialized Credit Finance Business Act;
5. President of Korea Federation of Savings Banks incorporated pursuant to Article 25 of the Mutual Savings Banks Act;
6. Mutual finance chief executive officer of the National Agricultural Cooperative Federation incorporated pursuant to the Agricultural Cooperatives Act;
7. Vice Director of the Agency;
8. A person commissioned by the Financial Services Commission, from among any of the following persons with abundant knowledge and experience regarding consumer protection and assistance in the debt settlement for an individual debtor:
(a) A person with at least five years’ work experience in a consumer organization registered pursuant to Article 29 of the Framework Act on Consumers;
(b) A person who has majored in the field related to consumers and has at least five years’ work experience in a position of at least equivalent to an associate professor at a university, college, or research institute;
(c) A person qualified as a lawyer or certified public accountant with at least five years’s work experience in the business related to the relevant qualifications;
(d) A person with at least five years’ work experience in a non-profit, non-governmental organization registered pursuant to Article 4 of the Assistance for Non-Profit, Non-Governmental Organizations Act;
(e) Other persons with the qualifications determined by Presidential Decree and with abundant knowledge and experience regarding finance, economy, and society.
(4) The Committee shall be comprised of members able to represent the interests of creditors and debtors in a fair and balanced manner.
(5) The Committee shall have an auditor to audit matters concerning its business and accounting.
(6) The auditor shall be appointed or dismissed by the Financial Services Commission.
(7) The term of office of a Chairperson, members under paragraph (3) 8, and an auditor shall be three years, and may be reappointed once. The same shall also apply to those newly appointed due to a vacancy.
(8) Members and the auditor except for the Chairperson shall be non-standing and unpaid: Provided, That actual expenses incurred in performing duties may be paid, as prescribed by the articles of incorporation.
(9) Members of the Committee shall be deemed directors of the Committee.
 Article 62 (Establishment, etc. of Secretariat)
(1) To assist the duties of the Committee and handle general affairs, the Committee has a secretariat.
(2) Matters necessary to organize and operate the secretariat shall be prescribed by Presidential Decree.
 Article 63 (Duties, etc. of Chairperson)
(1) The Chairperson shall represent the Committee and manage all duties of the Committee.
(2) Where the Chairperson becomes unable to perform any of his/her duties due to any extenuating circumstance, members of the Committee shall act on behalf of the Chairperson, according to the order of priority determined by the articles of incorporation.
 Article 64 (Grounds for Disqualification of Members)
None of the following persons shall become a member of the Committee:
1. A person who is not a national of the Republic of Korea;
2. Any person falling under each subparagraph of Article 33 of the State Public Officials Act.
 Article 65 (Guarantee of Status for Members)
Except in any of the following cases, no member shall be dismissed against his/her will during his/her term of office:
1. Where he/she falls under any subparagraph of Article 64;
2. Where he/she violates this Act or the order or articles of incorporation under this Act;
3. Where he/she becomes seriously unable to perform any of his/her duties due to mental or physical incapacity.
 Article 66 (Meetings of the Committee)
(1) The meetings of the Committee shall be convened by the Chairperson, where deemed necessary by the Chairperson, or where requested by at least one-third of all registered members.
(2) The meetings of the Committee shall be assembled with a majority of registered members present, and pass resolutions with the consent of a majority of those present.
(3) The auditor may attend the Committee and state his/her opinion.
 Article 67 (Appointment of Agent)
The Chairperson may appoint an agent with authority to do all acts judicially or extra-judicially concerning the affairs of the Committee, from among executive officers and employees.
SECTION 3 Finance and Accounting
 Article 68 (Business Year)
The business year of the Committee shall coincide with the fiscal year of the Government.
 Article 69 (Submission, etc. of Business Plans, etc.)
(1) The Committee shall submit the following documents to the Financial Services Commission after resolution by the Committee, as prescribed by Presidential Decree, and shall obtain approval therefor:
1. Business plan and budgetary document by business year;
2. Business results of every business year and the audited balance sheet by business year of a certified public accountant designated by the Financial Services Commission.
(2) To amend any important matter in a business plan under paragraph (1) 1 and obtain approval therefor, the business plan specifying the details and grounds for alteration and the budgetary document shall be first submitted to the Financial Services Commission.
SECTION 4 Assistance on Debt Settlement
 Article 70 (Basic Principle of Debt Settlement)
(1) Debt settlement shall be performed fairly and promptly in consideration of an individual debtor’s assets, income level, living conditions, etc.
(2) An individual debtor shall provide accurate information on his/her own circumstances.
(3) A person who has entered into an agreement on credit recovery support with the Committee pursuant to Article 75 (2) (hereinafter referred to as “credit financial company”) shall cooperate proactively for the debt settlement of an individual debtor.
 Article 71 (Application for Debt Settlement)
(1) An individual debtor intending to obtain debt settlement may apply for debt settlement to the Committee.
(2) Where an individual debtor having applied for debt settlement under paragraph (1) falls under any of the following, the Committee may return his/her application:
1. Where he/she is not entitled to apply for debt settlement of the agreement on credit recovery support under Article 75 (1);
2. Where he/she fails to submit the documents requested by the Committee, or prepares and submits false documents.
(3) Other matters necessary for the requirements, method, procedure, etc. to apply for debt settlement shall be prescribed by Presidential Decree.
 Article 72 (Procedure for Debt Settlement)
(1) Upon receipt of an application for debt settlement from a individual debtor, the Committee shall immediately notify the credit financial company of such, unless any extenuating circumstance exists.
(2) Upon being notified pursuant to paragraph (1), the credit financial company shall report the details of debt of an individual debtor to the Committee.
(3) Upon receipt of an application under paragraph (2) from the credit financial company, the Committee shall deliberate on and resolve a plan for debt settlement within the period prescribed by Presidential Decree.
(4) The Committee shall notify the credit financial company of a plan for debt settlement deliberated on and resolved pursuant to paragraph (3), and the credit financial company shall respond to the Committee as to whether it agrees with such plan.
(5) A plan for debt settlement referred to in paragraph (4) shall be finalized, where it is agreed by the credit financial company possessing a majority of bonds between the sum total of unsecured claim and the sum total of secured claim (referred to bonds falling under the effective collateral value within the range of liquidation value of the corresponding property).
(6) Where a plan for debt settlement is finalized pursuant to paragraph (5), the Committee shall notify the individual debtor and the credit financial company of such plan, respectively.
(7) Except as otherwise expressly provided for in paragraphs (1) through (6), matters necessary for the detailed procedures, deadline, etc. of debt settlement shall be prescribed by Presidential Decree.
 Article 73 (Method of Debt Settlement)
Debt settlement may be valid in any of the following manners, as to bonds possessed by the credit financial company:
1. Extension of redemption period;
2. Installment redemption;
3. Adjustment of interest rate;
4. Postponement of redemption;
5. Reduction of and exemption from debt;
6. Other methods prescribed by Presidential Decree as corresponding thereto.
 Article 74 (Effect of Debt Settlement)
(1) Where an individual debtor and the credit financial company accept a plan for debt settlement notified pursuant to Article 72 (6), such an agreement shall be deemed concluded.
(2) Where the credit financial company transfers bonds subject to an agreement concluded pursuant to paragraph (1), to a third party, the effect of debt settlement shall equally reach a transferee.
 Article 75 (Agreement on Credit Recovery Support)
(1) To effectively and rapidly facilitate debt settlement for an individual debtor, the Committee may determine matters necessary for its standard, procedure, method, etc. in the agreement on credit recovery support (hereinafter referred to as “Agreement”).
(2) The Committee may enter into an Agreement with any of the following persons:
1. The Committee;
2. The financial company;
3. A person designated by Presidential Decree as corresponding to a financial company;
4. A person determined by the Committee as obligated to conclude an Agreement and who holds bonds over an individual debtor.
(3) Except in extenuating circumstances prescribed by Presidential Decree, such as in cases of not possessing bonds over an individual debtor, a person who falls under paragraph (2) 2 or 3 shall conclude an Agreement with the Committee.
(4) In cases prescribed by Presidential Decree, such as in cases of not holding bonds over an individual debtor, the credit financial company may cancel the relevant Agreement.
(5) To alter any content of an Agreement, the Committee shall undergo the resolution of the Committee.
 Article 76 (Fees)
(1) The Committee may collect fees concerning support for debt settlement from any of the following persons:
1. An individual debtor having requested support for debt settlement;
2. A person having concluded an Agreement pursuant to Article 75 (2).
(2) Matters necessary for the amount of fees, the method of collection, etc. under paragraph (1) shall be determined by the Committee.
 Article 77 (Debtor Support Center)
(1) In order to support the effective debt settlement of an individual debtor, the Committee may establish the debtor support center to provide comprehensive services related to debt settlement, such as the provision of information, debt counseling, recommendation for the relevant agencies, etc.
(2) Matters necessary to establish and operate the debtor support center shall be prescribed by Presidential Decree.
CHAPTER IV SUPPLEMENTARY PROVISIONS
 Article 78 (Supervision, etc.)
(1) The Financial Services Commission shall guide and supervise the Agency and the Committee (hereinafter referred to as the “Agency, etc.”).
(2) If deemed necessary to guide and supervise the Agency, etc., the Financial Services Commission may consult with the heads of relevant central administrative agencies.
(3) If deemed necessary, the Financial Services Commission may require the Agency, etc. to report matters, etc. concerning its duties, accounting, and property, or may require their affiliated public officials and the staff of the Financial Supervisory Service to inspect the business situation, ledgers, documents, facilities of the Agency, etc. or other necessary matters.
(4) A person who conducts an inspection under paragraph (3) shall bring a certificate indicating his/her authority and show it to the relevant persons.
(5) If deemed necessary as a result of the report under paragraph (3) or the inspection, the Financial Services Commission may order the Agency, etc. to take corrective measures or may take other necessary measures.
 Article 79 (Entrustment of Authority, etc.)
(1) Part of the authority of the Financial Services Commission vested under this Act may be entrusted to the Director of the Financial Supervisory Service, as prescribed by Presidential Decree.
(2) The Agency may entrust duties of receiving applications for performing duties under Article 24 (1) 1 and 2 and subparagraph 4 of the same paragraph, to the Financial Services Commission.
(3) The Financial Services Commission may entrust duties of debt counseling for an individual debtor and receipt of applications for supporting debt settlement under subparagraph 4 of Article 60, to the Agency.
(4) The Agency may entrust part of its duties under this Act to a financial company, the Korea Asset Management Corporation, the Korea Federation of Credit Guarantee Foundation under the Regional Credit Guarantee Foundation Act, and other persons determined by Presidential Decree, as prescribed by Presidential Decree.
(5) A person entrusted with duties pursuant to paragraphs (2) through (4), shall perform the affairs in good faith and trust, and may conduct every judicial or extra-judicial act in relation to such affairs, in lieu of a person having entrusted such duties.
 Article 80 (Prohibition on Use of Similar Name)
(1) No person, other than the Agency, etc., under this Act shall use the name “Korea Inclusive Finance Agency”, “Credit Counseling and Recovery Service, or any other similar name.
(2) A person who is not the Agency, etc. (excluding a business execution organization) under this Act shall not use the names of the products determined and publicly notified by the Financial Services Commission or any other similar name, among the products handled by the Agency, etc.
 Article 81 (Requests to Provide Materials)
(1) The Agency, etc. may make a request to provide materials necessary to perform duties under Article 24 (1) 4 and subparagraph 4 of Article 60 (limited to the support for debt settlement), to the State; local governments; the National Pension Service under the National Pension Act; the National Health Insurance Service under the National Health Insurance Act; the Korea Workers’ Compensation and Welfare Service under the Industrial Accident Compensation Insurance Act; the Korea Asset Management Corporation; the Korea Federation of Credit Guarantee Foundation under the Regional Credit Guarantee Foundation Act; the credit information concentration institution under the Credit Information Use and Protection Act; and other public organizations prescribed by Presidential Decree.
(2) The Agency, etc. may request the head of the competent tax office or the head of a local government to provide taxation data (limited to taxation data on composite income tax and local tax; hereafter the same shall apply in this Article), stating the following matters. In such cases, a request for providing taxation data shall be made to the minimum extent necessary to perform the duties referred to in Article 24 (1) 4 and subparagraph 4 of Article 60 (limited to support for debt settlement), and shall not be abused for other purposes:
1. Personal information of taxpayers;
2. Purpose of use.
(3) A person requested to provide materials pursuant to paragraphs (1) and (2) shall comply with such request, except in an extenuating circumstance.
 Article 82 (Prohibition of Divulgence of Confidential Information, etc.)
No current or former executive officer and employee (including members of the operating committee under Article 9, members for management, and members of the Committee under Article 61) of the Agency, etc. shall divulge any secret he/she has learned while performing his/her duties, nor use it for any purpose other than for their duties.
 Article 83 (Relation with Other Acts)
(1) Notwithstanding Article 4 of the Act on Real Name Financial Transactions and Confidentiality and Article 32 of the Credit Information Use and Protection Act, a financial company may submit financial transaction information related to dormant deposits under Article 40 (2) to the Management Committee; and the Management Committee may use the financial transaction information submitted by the financial company for the duties referred to in Articles 43 and 45.
(2) Upon receipt of donations pursuant to this Act, the Agency, etc. shall not be governed by the Act on Collection and Use of Donations.
 Article 84 (Legal Fiction of Public Officials in Applying Penalty Provisions)
The executive officers and employees (including members of the operating committee under Article 9, members for management, and members of the Committee under Article 61) of the Agency, etc. shall be deemed public officials, for the purposes of penalty provisions under Articles 129 through 132 of the Criminal Act.
CHAPTER V PENALTY PROVISIONS
 Article 85 (Penalty Provisions)
Any person who divulges any confidential information he/she has learned in the course of performing his/her duties or uses such for any purpose other than his/her duties, in violation of Article 82, shall be punished by imprisonment with labor for up to two years or by a fine not exceeding 20 million won.
 Article 86 (Administrative Fines)
(1) Any of the following persons shall be subject to an administrative fine not exceeding 10 million won:
1. A business execution organization which uses support funds for another purpose and receives such funds by making a false application, in violation of Article 27 (1);
2. A person who fails to enter into an Agreement, in violation of Article 75 (3);
3. A person who fails to make a report under Article 78 (3) or makes a false report, or who refuses, obstructs, or evades an inspection;
4. A person who violates an order under Article 78 (5);
5. A person who uses the name “Korea Inclusive Finance Agency”, “Credit Counseling and Recovery Service”, or any other similar name, in violation of Article 80 (1);
6. A person who uses the names of the products publicly notified by the Financial Services Commission or any other similar name, among the products handled by the Agency, etc., in violation of Article 80 (2).
(2) Administrative fines prescribed in paragraph (1) shall be imposed and collected by the Financial Services Commission, as prescribed by Presidential Decree.
ADDENDA
Article 1 (Enforcement Date)
This Act shall enter into force six months after the date of its promulgation: Provided, That Article 3 of the Addenda shall enter into force on the date of its promulgation.
Article 2 (Abolition of Other Acts)
Article 3 (Preparation for Establishment of Agency)
(1) The Financial Services Commission shall establish the preparatory committee for establishment (hereinafter referred to as the “Preparatory Committee”) in order to deal with affairs concerning the establishment of the Agency.
(2) The Preparatory Committee shall be comprised of up to seven members including a chairperson; the chairperson and members shall be appointed and dismissed or commissioned by the Chairman of the Financial Services Commission.
(3) The Preparatory Committee shall formulate the articles of incorporation of the Agency before this Act enters into force, and shall obtain authorization from the Chairman of the Financial Services Commission.
(4) Upon receipt of authorization under paragraph (3), the Preparatory Committee shall without delay register the incorporation of the Agency, etc. under joint signature; thereafter, if the chairperson is appointed, transfer duties to the chairperson without delay.
(5) When the transfer of duties under paragraph (4) is completed, the Preparatory Committee shall be dissolved, and the chairperson and members are deemed discharged or released.
(6) Expenses incurred in incorporating the Agency shall be borne by the Agency.
Article 4 (Transitional Measures concerning Competent Affairs, etc. by New Establishment of the Agency)
(1) The property, rights and obligation of the Dormant Accounts Management Foundation (hereinafter referred to as the “Foundation”) under the Establishment, etc. of Microfinance Foundation Act shall be succeeded to by the Agency. In such cases, the value of property which the Agency has succeeded to shall be the book value as at the time of succession.
(2) A welfare business entity (hereinafter referred to as a “welfare business entity”) under the Establishment, etc. of Microfinance Foundation Act, as at the time this Act enters into force, shall be deemed the business execution organization pursuant to this Act.
(3) Any conduct by or toward the Federation before this Act enters into force shall be deemed done by or toward the Agency.
Article 5 (Transitional Measures concerning Revocation to Determine Issuance of Support Fund)
Where a welfare business entity uses support funds for another purpose or obtains them by making a false application, in violation of Article 25 (1) of the Establishment, etc. of Microfinance Foundation Act, before this Act enters into force, the former provisions shall apply, notwithstanding Article 28 (1).
Article 6 (Transitional Measures concerning Penalty Provisions, etc.)
With respect to the imposition of penalty provisions and administrative fines against the acts before this Act enters into force, the former provisions of the Establishment, etc. of Microfinance Foundation Act shall apply.
Article 7 (Transitional Measures concerning Request for Payment of Dormant Deposits)
Where five years has lapsed since a dormant deposit was contributed to the Foundation as at the time this Act enters into force, the former provisions shall apply, notwithstanding Article 45.
Article 8 (Transitional Measures concerning Credit Counseling and Recovery Service)
(1) The Credit Counseling and Recovery Service Association Incorporated under Article 32 of the Civil Act as at the time this Act enters into force shall be deemed the Committee established under Article 56.
(2) The Credit Counseling and Recovery Service Association Incorporated (hereinafter referred to as “Counseling and Recovery Service Association Incorporated”) deemed the Committee under paragraph (1) shall formulate the articles of incorporation of the Committee within a month after this Act enters into force, and shall obtain authorization from the Financial Services Commission.
(3) Upon obtaining authorization under paragraph (2), the Credit Counseling and Recovery and Service Association Incorporated shall register the incorporation of the Committee without delay.
(4) Upon completing registration for incorporation under paragraph (3), the Credit Counseling and Recovery and Service Association Incorporated shall be deemed dissolved, notwithstanding the provisions concerning the dissolution and liquidation of the corporation under the Civil Act.
(5) The Committee shall succeed to all the property, rights, and obligations of the Credit Counseling and Recovery and Service Association Incorporated by universal title as of the date of registration of establishment. In such cases, the value of property which the Committee has succeeded to shall be the book value at the time of succession.
(6) The register concerning the property, rights, and obligations succeeded to by a universal title under paragraph (5) and the name of the Credit Counseling and Recovery and Service Association Incorporated indicated in other official books shall be deemed the name of Committee.
(7) Any act done by or toward the Credit Counseling and Recovery and Service Association Incorporated before this Act enters into force shall be deemed done by or toward the Committee.
(8) When the registration for incorporation is completed under paragraph (3), the terms of office of the executive officers of the Credit Counseling and Recovery and Service Association Incorporated shall be deemed terminated.
Article 9 (Transitional Measures concerning Employee of Federation and Credit Counseling and Recovery Service Association Incorporated)
(1) An employee affiliated with Federation as at the time this Act enters into force shall be deemed an employee affiliated with the Agency under this Act.
(2) An employee affiliated with the Credit Counseling and Recovery Service Association Incorporated as at the time this Act enters into force shall be deemed an employee affiliated with the Committee pursuant to this Act.
Article 10 (Transitional Measures concerning Composition of Guaranty Accounts)
Where any of the following persons contributes before this Act enters into force, the Korea Federation of Credit Guarantee Foundation under Article 35 of the Regional Credit Guarantee Foundation Act shall transfer the basic property under Article 35-6 (1) of the same Act, which is comprised of the individual credit guaranty accounts under Article 35-7 (2) of the same Act, upon receipt of approval from the Administrator of Small Business Administration before this Act enters into force, to the Agency, as at the time this Act enters into force:
1. A person falling under the subparagraphs of Article 47 (2);
2. The Lottery Commission managing the lottery fund under Article 22 of Lottery Tickets and Lottery Fund Act.
Article 11 Omitted.
Article 12 (Relationship with Other Statutes)
(1) Where other statutes cite the former provisions of the Establishment, etc. of Microfinance Foundation Act or the provisions at the time this Act enters into force, if corresponding provisions exist in this Act, they shall be deemed to have quoted this Act or the corresponding provisions of this Act, in lieu of the former provisions of the Establishment, etc. of Microfinance Foundation Act or the provisions.
(2) Where other statutes cite the welfare business entity under the former provisions of the Establishment, etc. of Microfinance Foundation Act as at the time this Act enters into force, the business execution organization under this Act shall be deemed quoted.
ADDENDUM <Act No. 15020, Oct. 31, 2017>
This Act shall enter into force on the date of its promulgation.