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KOREA TECHNOLOGY FINANCE CORPORATION ACT

Act No. 14122, Mar. 29, 2016

Amended by Act No. 14127, Mar. 29, 2016

Act No. 14839, Jul. 26, 2017

CHAPTER I GENERAL PROVISIONS
 Article 1 (Purposes)
The purpose of this Act is to facilitate the financing of new technology business by stabilizing and developing technology guarantee systems through the establishment of the Korea Technology Finance Corporation, and further contribute to the development of the national economy. <Amended by Act No. 14122, Mar. 29, 2016>
[This Article Wholly Amended by Act No. 10683, May 19, 2011]
 Article 2 (Definitions)
The terms used in this Act shall be defined as follows: <Amended by Act No. 11409, Mar. 21, 2012; Act No. 14122, Mar. 29, 2016>
1. The term "new technology enterprise" means a small and medium enterprise (referring to a small and medium enterprise under Article 2 of the Framework Act on Small and Medium Enterprises; hereinafter the same shall apply) and an enterprise prescribed by Presidential Decree which develop technologies or commercialize such technologies by applying them, and an industrial technology research cooperative established under the Act on the Support of Industrial Technology Research Cooperatives;
2. The term "enterprise" means an individual or juristic person who runs a business, and an organization formed by such individuals or juristic persons;
3. The term "financial company" means any of the following institutions:
(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) The Export-Import Bank of Korea under the Export-Import Bank of Korea Act;
(e) A trust business entity under the Financial Investment Services and Capital Markets Act;
(f) Others prescribed by Presidential Decree, who engage in the business of financing enterprises by profession;
4. The term "technology guarantee" means the guarantee of the following monetary liabilities borne by new technology enterprises:
(a) Monetary liabilities to financial companies, etc. by receiving a loan of fund or other benefits, etc. from a new technology venture capital business operator under the Specialized Credit Finance Business Act or financial companies (hereinafter referred to as "financial companies, etc.");
(b) Other monetary liabilities prescribed by Presidential Decree;
5. The term "credit guarantee" means the guarantee of any of the following monetary liabilities (excluding technology guarantee) borne by an enterprise, which has regular employees not more than one thousand, and the total assets not exceeding one hundred billion won:
(a) Monetary liabilities to financial companies by receiving a loan of fund or other benefits, etc. from such financial companies;
(b) Other monetary liabilities prescribed by Presidential Decree;
6. The term "re-guarantee" means a guarantee of the Korea Technology Finance Corporation to indemnify the original guarantor within the scope of the amount of liabilities discharged by the original guarantor under a guarantee referred to in Article 28-2 (1) (hereinafter referred to as "original guarantee");
7. The term "creditor" means a creditor of the liabilities guaranteed by the Korea Technology Finance Corporation;
8. The term "fundamental property" means property created by the Korea Technology Finance Corporation as its financial base by means of contributions or others to perform its business;
9. The term "guarantee for a special purpose company" means that the Korea Technology Finance Corporation guarantees monetary liabilities borne by a special purpose company established under the Asset-Backed Securitization Act (hereinafter referred to as "special purpose company") pursuant to Article 28-3 (1);
10. The term "guarantee-linked investment" means that the Korea Technology Finance Corporation takes over securities of new technology enterprises under Article 28-4 (1).
[This Article Wholly Amended by Act No. 10683, May 19, 2011]
 Article 3 Deleted. <by Act No. 5701, Jan. 29, 1999>
CHAPTER II (Articles 4 through 11) Deleted.
CHAPTER III KOREA TECHNOLOGY FINANCE CORPORATION
SECTION 1 Establishment, etc.
 Article 12 (Establishment of Corporation)
(1) The Korea Technology Finance Corporation (hereinafter referred to as the "Corporation") shall be established to make funds more readily available for enterprises which lack security solvency by guaranteeing the liabilities which may be incurred by such enterprises. <Amended by Act No. 14122, Mar. 29, 2016>
(2) The Corporation shall be a juristic person.
[This Article Wholly Amended by Act No. 10683, May 19, 2011]
 Article 13 (Acquisition of Fundamental Property)
(1) The fundamental property of the Corporation shall consist of following:
1. Contributions from financial companies, etc.;
2. Contributions from the Government;
3. Contributions from persons other than those referred to in subparagraphs 1 and 2.
(2) The budget of contributions from the Government under paragraph (1) 2 shall be under the jurisdiction of the Ministry of SMEs and Startups. <Amended by Act No. 14839, Jul. 26, 2017>
(3) Financial companies, etc. shall contribute, to the Corporation, an amount in proportion as prescribed by Presidential Decree, in connection with the relevant loans.
(4) The scope of loans, methods and timing of making contributions, and other matters necessary for contributions under paragraph (3) shall be prescribed by Ordinance of the Ministry of SMEs and Startups after consultation with Financial Services Commission. <Amended by Act No. 14839, Jul. 26, 2017>
[This Article Wholly Amended by Act No. 10683, May 19, 2011]
 Article 14 (Head Office, Branches, Sub-Branches, and Agencies)
(1) The Corporation shall establish the head office, as stipulated in the articles of incorporation.
(2) The Corporation may establish branches, sub-branches or agencies wherever necessary, as stipulated in the articles of incorporation.
[This Article Wholly Amended by Act No. 10683, May 19, 2011]
 Article 15 (Articles of Incorporation)
(1) The articles of incorporation of the Corporation shall obtain authorization from the Minister of SMEs and Startups, with a resolution thereon by the management committee under Article 17 (hereinafter referred to as "management committee"). The same shall also apply to the amendments thereof. <Amended by Act No. 14839, Jul. 26, 2017>
(2) The following matters shall be stated in the articles of incorporation of the Corporation:
1. Objective;
2. Name;
3. Matters concerning the head office, branches, sub-branches and agencies;
4. Matters concerning the fundamental property;
5. Matters concerning the management committee;
6. Matters concerning the board of directors;
7. Matters concerning executive officers and employees;
8. Matters concerning business and execution thereof;
9. Matters concerning accounting;
10. Matters concerning the methods of giving public announcement;
11. Matters concerning the amendments to the articles of incorporation;
12. Other matters prescribed by Presidential Decree.
[This Article Wholly Amended by Act No. 10683, May 19, 2011]
 Article 16 (Registration)
(1) The Corporation shall be established upon completing the registration of incorporation at the location of its head office.
(2) Matters concerning the registration of incorporation of the Corporation under paragraph (1), registration of change of address and other changes, and other matters necessary for the registration of the Corporation shall be prescribed by Presidential Decree.
(3) Matters to be registered under paragraph (2) shall not oppose to a third party until after they are registered.
[This Article Wholly Amended by Act No. 10683, May 19, 2011]
SECTION 2 Organs, Executive Officers and Employees
 Article 17 (Establishment of Management Committee)
(1) The management committee shall be established under the Corporation to formulate basic policies on the business operations of the Corporation.
(2) The management committee shall be comprised of the following members: <Amended by Act No. 11690, Mar. 23, 2013; Act No. 14839. Jul. 26, 2017>
1. The president of the Corporation;
2. One person nominated by the Minister of SMEs and Startups from among the public officials affiliated therewith;
3. One person nominated by the Minister of Strategy and Finance from among the public officials affiliated therewith;
4. One person nominated by the Financial Services Commission from among the public officials affiliated therewith;
5. One person nominated by the President of the Industrial Bank of Korea under the Industrial Bank of Korea Act from among the executive officers affiliated therewith;
6. One person nominated by the head of a bank designated by the Minister of SMEs and Startups, which is engaged in the finance business for the general public and small enterprises, from among the executive officers affiliated therewith;
7. Three persons appointed by the Minister of SMEs and Startups after consultation with the Financial Services Commission from among executive officers or executives of financial companies, etc.;
8. One person appointed by the Chairperson of the Korea Chamber of Commerce and Industry under the Chambers of Commerce and Industry Act;
9. One person appointed by the Chairperson of the Korea Federation of Small and Medium Business under the Small and Medium Enterprise Cooperatives Act;
10. Two technology-related experts appointed by the Minister of SMEs and Startups after consultation with the Minister of Science and ICT.
(3) The president of the Corporation shall be a chairperson of the management committee.
(4) Board members referred to in paragraph (2) 1 and 5 through 7 may designate any executive officer or employee of the relevant institution as their deputy members to perform duties on behalf of them.
(5) The term of office of board members referred to in paragraph (2) 7 through 10 shall be two years: Provided, That the term of office of a supplementary board member shall be the remaining term of his/her predecessor.
(6) Matters necessary for the operation, etc. of the management committee shall be prescribed by Presidential Decree.
[This Article Wholly Amended by Act No. 10683, May 19, 2011]
 Article 18 (Board of Directors)
(1) The board of directors shall be established under the Corporation.
(2) The board of directors shall be comprised of a president, executive vice president, and directors.
(3) The board of directors shall pass a resolution on important matters concerning the business operations of the Corporation.
(4) The president shall call meetings of the board of directors and serve as a chairperson.
(5) A meeting of the board of directors shall commence by the attendance of a majority of its members, and the resolutions shall be adopted by the affirmative vote of a majority of those present.
(6) The auditor may attend and present his/her opinion at any meeting of the board of directors.
[This Article Wholly Amended by Act No. 10683, May 19, 2011]
 Article 19 (Executive Officers)
The Corporation shall have one president, one executive vice president, not more than five directors, and one auditor as its executive officers.
[This Article Wholly Amended by Act No. 10683, May 19, 2011]
 Article 20 (Executive Officers' Duties)
(1) The president shall represent the Corporation and take overall control of the business of the Corporation.
(2) The executive vice president shall assist the president and act on behalf of the president if the president is unable to perform his/her duties due to unavoidable circumstances.
(3) The directors shall assist the president and the executive vice president, and take charge of the allocated business of the Corporation, as stipulated by the articles of incorporation.
(4) The director in the order pre-designated by the president shall act on behalf of the president and the executive vice president, if both are unable to perform their duties due to unavoidable circumstances.
(5) The auditor shall audit the business and the accounting of the Corporation.
[This Article Wholly Amended by Act No. 10683, May 19, 2011]
 Article 21 (Appointment of Executive Officers)
(1) The president and the auditor shall be appointed by the Minister of SMEs and Startups. <Amended by Act No. 14839, Jul. 26, 2017>
(2) The executive vice president and the directors shall be appointed by the Minister of SMEs and Startups upon the recommendation of the president of the Corporation. <Amended by Act No. 14839, Jul. 26, 2017>
[This Article Wholly Amended by Act No. 10683, May 19, 2011]
 Article 22 (Term of Office of Executive Officers)
The term of office of an executive officer shall be three years.
[This Article Wholly Amended by Act No. 10683, May 19, 2011]
 Article 23 (Dismissal of Executive Officers)
The Minister of SMEs and Startups may dismiss any executive officer of the Corporation falling under any of the following cases: <Amended by Act No. 14839, Jul. 26, 2017>
1. Where he/she violates this Act, orders issued under this Act, or the articles of incorporation;
2. Where he/she is sentenced to imprisonment without prison labor or a heavier punishment;
3. Where he/she is declared bankrupt;
4. Where he/she is unable to perform his/her duties due to a mental disability.
[This Article Wholly Amended by Act No. 10683, May 19, 2011]
 Article 24 (Obligation, etc. of Prohibition of Concurrent Office)
(1) No executive officer of the Corporation shall engage in any other business without permission of the Minister of SMEs and Startups. <Amended by Act No. 14839, Jul. 26, 2017>
(2) No current or former executive officer and employees of the Corporation shall disclose confidential information that they came to know in the course of their duties.
[This Article Wholly Amended by Act No. 10683, May 19, 2011]
 Article 25 (Legal Fiction as Public Officials in Application of the Criminal Act)
The executive officers of the Corporation shall be deemed public officials for the purpose of the provisions of Articles 129 through 132 of the Criminal Act.
[This Article Wholly Amended by Act No. 10683, May 19, 2011]
 Article 26 (Appointment of Representative)
The president of the Corporation may appoint a representative duly empowered to do all judicial or extrajudicial acts in connection with the business of the Corporation, from among the executive vice president, the directors or the employees of the Corporation.
[This Article Wholly Amended by Act No. 10683, May 19, 2011]
 Article 27 (Appointment and Dismissal of Employees)
The employees of the Corporation shall be appointed and dismissed by the president of the Corporation.
[This Article Wholly Amended by Act No. 10683, May 19, 2011]
SECTION 3 Business
 Article 28 (Business of Corporation)
(1) The Corporation shall perform the following business: <Amended by Act No. 11409, Mar. 21, 2012; Act No. 14122, Mar. 29, 2016>
1. Administering the fundamental property;
2. Providing a technology guarantee;
3. Providing a credit guarantee;
3-2. Guarantee-linked investment;
4. Providing management consulting and technology consulting services to enterprises;
5. Conducting credit investigations and comprehensive managements of credit information;
6. Conducting technology evaluations (referring to the indication of the relevant technology in terms of amount of money, grades, opinions, points, etc. by comprehensively evaluating the nature of technology, marketability, business prospects, etc. related to such technology);
7. Exercising the right to indemnity;
8. Conducting an investigation into and research on the credit guarantee system;
9. Performing business incidental to those referred to in subparagraphs 1 through 8 and approved by the Minister of SMEs and Startups.
(2) The Corporation may perform the business of providing a re-guarantee and guarantee for a special purpose company, in addition to those referred to in paragraph (1).
(3) The Corporation shall determine in advance matters related to the criteria, procedures, methods, types, etc. of the technology evaluations to ensure the objectivity, fairness, etc, of such technology evaluations under paragraph (1) 6.
[This Article Wholly Amended by Act No. 10683, May 19, 2011]
 Article 28-2 (Re-Guarantee)
(1) When the Corporation intends to provide a re-guarantee, it shall enter into a contract with a credit guarantee foundation under the Regional Credit Guarantee Foundation Act (hereinafter referred to as "original guarantor").
(2) A contract under paragraph (1) shall stipulate matters concerning the ceiling amount, period, requirements, etc. of the re-guarantee, and the contract shall be executed in an umbrella agreement form re-guaranteeing the original guarantee that meets the requirements of re-guarantee within the ceiling amount and the period of the re-guarantee stipulated under the re-guarantee contract.
(3) The amount of re-guarantee of the Corporation shall be calculated by multiplying the amount of original guarantee by a ratio prescribed by Presidential Decree (hereinafter referred to as "re-guarantee ratio").
(4) Where an original guarantor has subrogated for the Corporation, the amount of compensation to be paid by the Corporation shall be calculated by multiplying the amount not recovered by exercising the right to indemnity, out of the amount subrogated by the original guarantor, by the re-guarantee ratio.
(5) If an original guarantor recovers the amount of subrogation by exercising the right to indemnity under the original guarantee, he/she shall return the amount calculated by multiplying such recovered amount by the re-guarantee ratio to the Corporation.
(6) A claim for discharging re-guaranteed liabilities shall be made at the expiration of a period prescribed by Presidential Decree from the date of subrogation by the original guarantor, and other matters necessary for making a claim for discharging the re-guaranteed liabilities shall be prescribed by Presidential Decree.
(7) Other matters necessary for the relationship between the Corporation and the original guarantors in connection with the operation of the re-guarantee shall be prescribed by Presidential Decree.
[This Article Wholly Amended by Act No. 10683, May 19, 2011]
 Article 28-3 (Guarantee for Special Purpose Companies)
(1) Where a special purpose company pools and repackages a new technology enterprise's corporate bonds (including convertible bonds and bonds with warrant), loans or property rights prescribed by Presidential Decree into securitized assets, the Corporation may guarantee the liabilities to be borne by the special purpose company in any of the following cases:
1. Issuing asset backed securities;
2. Granting credits to a special purpose company by financial companies, etc., the National Agricultural Cooperative Federation under the Agricultural Cooperatives Act and the National Federation of Fisheries Cooperatives under the Fisheries Cooperatives Act.
(2) The maximum ceiling of securitized that assets an asset holder (referring to the person under subparagraph 2 of Article 2 of the Asset-Backed Securitization Act) can underwrite from the same enterprise, in connection with the operation of guarantee for a special purpose company by the Corporation, shall be prescribed by Presidential Decree.
(3) The Corporation may be entrusted by a special purpose company that has obtained a guarantee for a special purpose company with the management of securitized assets or other business pursuant to Articles 10 (1) and 23 (1) of the Asset-Backed Securitization Act.
(4) Where the Minister of SMEs and Startups deems it necessary for efficiently operating the Corporation and appropriately diversifying risks, it may establish separate guidelines and give notice thereon. <Amended by Act No. 14839, Jul. 26, 2017>
[This Article Wholly Amended by Act No. 10683, May 19, 2011]
 Article 28-4 (Guarantee-Linked Investment)
(1) The Corporation may take over only any of the following securities of new technology enterprises with which it has established a technology guarantee relationship: <Amended by Act No. 14122, Mar. 29, 2016>
1. Stocks;
2. Conversible bond;
3. Bonds with warrant.
(2) The limit of the total amount of guarantee-linked investment of the Corporation shall be prescribed by Presidential Decree within the scope not exceeding 10/100 of the aggregate of the fundamental properties and profits carried forward of the Corporation.
(3) The limit of guarantee-linked investment the Corporation may make in enterprises shall be prescribed by Presidential Decree.
(4) The Minister of SMEs and Startups may, if necessary, set up separate guidelines and notify for the efficient operation of the Corporation and appropriate diversification of risks. <Amended by Act No. 14839, Jul. 26, 2017>
[This Article Newly Inserted by Act No. 11409, Mar. 21, 2012]
 Article 29 (Operational Manual)
The Corporation shall prepare an operational manual describing the following matters and submit it to the management committee for a resolution thereon. The same shall also apply to any amendment to such operational manual: <Amended by Act No. 11409, Mar. 21, 2012>
1. Matters concerning the methods and periods of providing a guarantee under Article 28 (1) 2 and 3, and fees and penalties, including guarantee fees, etc. under Articles 33, 33-2 and 34;
2. Matters concerning the re-guarantee, such as methods and periods of providing re-guarantee, types of business for which re-guarantee is restricted, etc.;
3. The following matters concerning the guarantee for a special purpose company:
(a) Liabilities subject to guarantee;
(b) Assets subject to securitization;
(c) Risk management plans;
(d) Maximum ceiling of securitized assets underwritable from the same enterprise under Article 28-3 (2);
3-2. Matters concerning guarantee-linked investment;
4. Matters concerning the discharge of guaranteed liabilities;
5. Matters concerning the exercise of the right to indemnity;
6. Matters concerning the criteria, procedures, methods, types, etc. of the technology evaluations under Article 28 (3);
7. Other matters necessary for performing the business of the Corporation.
[This Article Wholly Amended by Act No. 10683, May 19, 2011]
 Article 30 (Criteria of Guarantee)
(1) The Corporation shall provide guarantees by fairly and objectively investigating the business prospects, management capability, etc.
(2) The Corporation shall make at least three-fourth the total amount of guarantee to be provided for a technology guarantee. <Amended by Act No. 14122, Mar. 29, 2016>
[This Article Wholly Amended by Act No. 10683, May 19, 2011]
 Article 31 (Ceiling of Guarantee, etc. )
(1) A ceiling on the aggregate of a guaranteed liabilities and re-guarantee provided by the Corporation shall be prescribed by Presidential Decree within 20 times the sum of the fundamental property of the Corporation and the profits carried forward. <Amended by Act No. 11409, Mar. 21, 2012>
(2) A maximum ceiling on a guarantee or re-guarantee the Corporation may provide to the same enterprise shall be prescribed by Presidential Decree.
(3) The Corporation may guarantee the liabilities borne by a new technology enterprise up to an amount determined by the Minister of SMEs and Startups. <Amended by Act No. 14839, Jul. 26, 2017>
[This Article Wholly Amended by Act No. 10683, May 19, 2011]
 Article 32 (Business Plans)
(1) The Corporation shall establish a business plan for each business year and obtain approval from the Minister of SMEs and Startups, following a resolution thereon by the management committee. <Amended by Act No. 14839, Jul. 26, 2017>
(2) Where the Corporation intends to obtain approval under paragraph (1), it shall submit the business plan to the Minister of SMEs and Startups at least one month before the commencement of the relevant business year. <Amended by Act No. 14839, Jul. 26, 2017>
(3) Any modifications for a business plans of the Corporation shall be made upon a resolution of the management committee and subject to approval of the Minsiter of SMEs and Startups. <Amended by Act No. 14839, Jul. 26, 2017>
[This Article Wholly Amended by Act No. 10683, May 19, 2011]
 Article 33 (Guarantee Fees, etc.)
(1) The Corporation shall receive a guarantee fee for the guaranteed amount from an enterprise provided with a guarantee, considering the credit rating, etc. of the enterprise, as prescribed by Presidential Decree. In such cases, where a new technology enterprise provided with a technology guarantee achieves remarkable business performance from the relevant business, the Corporation may collect a performance-based guarantee fee from such new technology enterprise under a separate agreement, as prescribed by Presidential Decree. <Amended by Act No. 14122, Mar. 29, 2016>
(2) Where the Corporation is not relieved from its responsibility to discharge guaranteed liabilities since an enterprise provided with a guarantee fails to discharge its liabilities by the due date, the Corporation is entitled to collect an additional guarantee fee from the relevant enterprise for the amount in default out of the guaranteed liabilities, as prescribed by Presidential Decree.
(3) Where an enterprise provided with a guarantee fails to pay the guarantee fee by the due date, the Corporation shall collect an overdue guarantee fee for the unpaid guarantee fee from the relevant enterprise, as prescribed by Presidential Decree.
(4) The Corporation shall charge an enterprise provided with a re-guarantee fee for the amount of re-guarantee, as prescribed by Presidential Decree.
[This Article Wholly Amended by Act No. 10683, May 19, 2011]
 Article 33-2 (Fees)
The Corporation may receive fees, as prescribed by Presidential Decree, in performing the business referred to in Article 28 (1) 4 through 6 and 9.
[This Article Wholly Amended by Act No. 10683, May 19, 2011]
 Article 34 (Penalties)
Where the Corporation discharges a guaranteed liability, it shall collect a penalty from the relevant enterprise at a rate not exceeding 25 percent per annum of the amount paid by the Corporation, as prescribed by Presidential Decree.
[This Article Wholly Amended by Act No. 10683, May 19, 2011]
 Article 35 (Formation of Guarantee Relationship)
(1) Where the Corporation has decided to provide a guarantee for an enterprise, it shall give notice to that effect to the relevant enterprise and any prospective creditor of such enterprise: Provided, That where the Corporation guarantees liabilities borne by a special purpose company following issuance of assets backed securities pursuant to Article 28-3 (1) 1, it need not give notice to the underwriters of assets backed securities.
(2) The guarantee relationship shall take effect only when a primary claim-obligation relationship is created between the relevant enterprise and its creditors following the receipt of the notice under paragraph (1).
(3) No guarantee relationship shall take effect, unless the primary claim-obligation relationship is created within 60 days from the date on which the notice under paragraph (1) is given to interested parties.
[This Article Wholly Amended by Act No. 10683, May 19, 2011]
 Article 36 (Discharge of Guaranteed Liabilities)
(1) A creditor may request the Corporation to discharge guaranteed liabilities if any grounds prescribed by Presidential Decree arise.
(2) Upon receipt of a request for the discharge of guaranteed liabilities under paragraph (1), the Corporation shall discharge both primary liabilities and subordinate liabilities prescribed by Presidential Decree.
[This Article Wholly Amended by Act No. 10683, May 19, 2011]
 Article 37 (Exercise of Right to Indemnity)
(1) Where the Corporation has discharged guaranteed liabilities, the Corporation may exercise its right to indemnity.
(2) Where the Corporation has discharged its guaranteed liabilities, the relevant creditor shall send all documents necessary for the Corporation to exercise its right to indemnity to the Corporation, and fully cooperate with the Corporation in exercising such right to indemnity.
(3) Where any enterprise, the guaranteed liabilities of which has been discharged by the Corporation falls under any of the following cases, the Corporation may suspend the exercise of the right to indemnity against such enterprise, following a resolution thereon by the board of directors:
1. Where it is deemed improbable that the property of the enterprise will, after being appropriated for the expenses incidental to the exercise of right to indemnity, still leave a balance;
2. Where it is deemed probable that the debt-servicing ability of the enterprise will be enhanced by the suspension of the exercise of right to indemnity.
(4) Where the Corporation has suspended the exercise of its right to indemnity pursuant to paragraph (3) 2, it may dispatch its executive officers or employees to the relevant enterprise to participate in the management thereof.
[This Article Wholly Amended by Act No. 10683, May 19, 2011]
 Article 37-2 (Disposal of Claims for Indemnity)
Where the Corporation deems it necessary for an efficient recovery and management of claims for indemnity, it may sell such claims for indemnity to any of the following persons, with a resolution thereon of the board of directors:
1. A corporate restructuring investment company under the Corporate Restructuring Investment Companies Act;
2. A corporate restructuring association registered under Article 15 of the Industrial Development Act (which has been effective before the wholly amended Industrial Development Act (Act No. 9584) takes effect);
3. Other persons prescribed by Presidential Decree who are specialized in the sale and management of insolvent loans.
[This Article Wholly Amended by Act No. 10683, May 19, 2011]
 Article 37-3 (Reduction or Exemption of Jointly and Severally Guaranteed Debt)
Notwithstanding the provisions of Articles 250 (2), 567 and 625 (3) of the Debtor Rehabilitation and Bankruptcy Act, if a creditor is the Corporation and the principal debt is reduced or exempted at the point of time when the rehabilitation plan is authorized and when immunity is granted after the declaration of bankruptcy for a small and medium enterprise, jointly and severally guaranteed debt shall also be reduced or exempted by the same proportion.
[This Article Newly Inserted by Act No. 11843, May 28, 2013]
 Article 38 (Creditors' Duties)
In any of the following cases, a creditor prescribed by Presidential Decree shall notify the Corporation of such fact without delay:
1. Where the primary obligation has come into effect;
2. Where all or some of the liabilities involved have been extinguished;
3. Where a debtor has forfeited the benefit of the term;
4. Where a debtor has failed to discharge his/her liability;
5. Where other grounds which may affect the guaranteed liabilities have occurred.
[This Article Wholly Amended by Act No. 10683, May 19, 2011]
 Article 39 (Prohibition of Guarantee)
The Corporation may prohibit providing a debt guarantee for companies that have undermined its soundness by unjustly evading their financial obligations or for companies, etc. managed or represented by such companies’ director or managing general parter, as prescribed in the operation manual set forth in Article 29.
[This Article Wholly Amended by Act No. 14122, Mar. 29, 2016]
 Article 40 (Accounting Principles)
(1) The accounting of the Corporation shall be conducted in accordance with the business accounting standards.
(2) The fundamental property of the Corporation shall be assessed as capital in the accounting.
[This Article Wholly Amended by Act No. 10683, May 19, 2011]
 Article 41 (Fiscal Year)
The fiscal year of the Corporation shall coincide with the fiscal year of the Government.
[This Article Wholly Amended by Act No. 10683, May 19, 2011]
 Article 42 (Budgets)
(1) The Corporation shall compile a budget indicating total income and expenditure of each business year and obtain approval therefor from the Minister of SMEs and Startups, with a resolution by the management committee. <Amended by Act No. 14839, Jul. 26, 2017>
(2) If the Corporation intends to obtain approval under paragraph (1), it shall submit the budget bill to the Minister of SMEs and Startups at least one month before the commencement of the relevant fiscal year. <Amended by Act No. 14839, Jul. 26, 2017>
(3) If the Corporation intends to revise its budget, it shall obtain approval therefor from the Minister of SMEs and Startups, with a resolution by the management committee. <Amended by Act No. 14839, Jul. 26, 2017>
[This Article Wholly Amended by Act No. 10683, May 19, 2011]
 Article 43 (Settlement of Accounts)
The Corporation shall prepare a statement of accounts, a balance sheet, a profit and loss statement and a statement of fundamental property for each fiscal year, and submit them to the Minister of SMEs and Startups within two months after the end of the relevant year, with a resolution thereon by the management committee. <Amended by Act No. 14839, Jul. 26, 2017>
[This Article Wholly Amended by Act No. 10683, May 19, 2011]
 Article 44 (Utilization of Reserve Funds)
Reserve funds comprising the fundamental property which are not necessary for managing the Corporations' business shall be operated in any of the following methods: Provided, That in cases under subparagraphs 3 and 4, approval of the Minister of SMEs and Startups shall be obtained: <Amended by Act No. 14839, Jul. 26, 2017>
1. Deposit with financial companies;
2. Purchase of State bonds, local government bonds, and bonds, the payment of which is guaranteed by the Government, local governments or financial companies;
3. Underwriting or purchase of stocks (including investment certificates), debentures or other securities;
4. Other methods necessary to achieve the objective, for which the Corporation is established.
[This Article Wholly Amended by Act No. 10683, May 19, 2011]
 Article 45 (Coverage of Losses)
(1) When any profit is realized at the book-closing of the Corporation, the total amount of such profit shall be reserved.
(2) When any loss is incurred at the book-closing of the Corporation, it shall be covered by the reserves under paragraph (1), and when the reserves are insufficient to cover such loss, the Government shall cover it.
[This Article Wholly Amended by Act No. 10683, May 19, 2011]
CHAPTER IV SUPPLEMENTARY PROVISIONS
 Article 46 (Supervision)
The Minister of SMEs and Startups may supervise the business of the Corporation and issue orders necessary for supervising the Corporation: Provided, That for the purpose of ensuring soundness of management, the Minister of SMEs and Startups shall supervise upon consultation with the Financial Services Commission. <Amended by Act No. 14839, Jul. 26, 2017>
[This Article Wholly Amended by Act No. 10683, May 19, 2011]
 Article 47 (Reports and Inspections)
(1) If it is deemed necessary for achieving the objectives, for which the Corporation is established, the Minsiter of SMEs and Startups may request the Corporation, financial companies entrusted by the Corporation with the business thereof (hereafter referred to as "trustee" in this Article), or financial companies, etc. making contributions to the Corporation, to submit reports, or cause any public official affiliated therewith to inspect the status of operations, books and documents or other necessary matters: Provided, That in cases of trustees, such reporting or inspection shall be limited to the entrusted duties, and in cases of financial companies, etc. making contributions to the Corporation, such reporting or inspection shall be limited to contribution-related matters. <Amended by Act No. 14839, Jul. 26, 2017>
(2) The Minister of SMEs and Startups may request the Financial Services for the inspections provided for in paragraph (1). <Amended by Act No. 14839, Jul. 26, 2017>
(3) Any person who conducts an inspection under paragraphs (1) and (2) shall carry a certificate indicating his/her authority and produce it to relevant persons.
[This Article Wholly Amended by Act No. 10683, May 19, 2011]
 Article 47-2 (Entrustment of Duties)
(1) The Corporation may entrust part of its business to financial companies, 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, or credit information companies under the Credit Information Use and Protection Act (hereafter in this Article referred to as "credit information companies"), as prescribed by Presidential Decree.
(2) Any person entrusted with the business under paragraph (1) may do all judicial or extrajudicial acts in connection with such business on behalf of the Corporation: Provided, That credit information companies shall act on behalf of the Corporation only in the extrajudicial area.
[This Article Wholly Amended by Act No. 10683, May 19, 2011]
 Article 48 (Liability of Compensation, etc.)
(1) If any executive officer of the Corporation incurs any loss to the Corporation by violating any statutes or the articles of incorporation, or neglecting his/her duties, he/she shall be jointly and severally liable to the Corporation for compensating for such loss.
(2) If any person engaged in the guarantee business of the Corporation incurs any loss to the Corporation, intentionally or by gross negligence, in connection with his/her duties, he/she shall be liable for compensating for such loss. In such cases, such liability may be mitigated except in cases where a loss is intentionally incurred.
[This Article Wholly Amended by Act No. 10683, May 19, 2011]
 Article 49 (Prohibition of Use of Similar Names)
No person other than the Corporation under this Act shall use the name "Korea Technology Finance Corporation" or any other name similar thereto. <Amended by Act No. 14122, Mar. 29, 2016>
[This Article Wholly Amended by Act No. 10683, May 19, 2011]
 Article 50 (Requests, etc. for Provision of Data)
(1) The Corporation may request the State, local governments, the National Pension Service under the National Pension Act, the National Health Insurance Corporation under the National Health Insurance Act, the Korea Workers' Compensation and Welfare Service under the Industrial Accident Compensation Insurance Act, and other public organizations prescribed by Presidential Decree to provide data necessary for performing the business referred to in Article 28 (1) 2 through 9.
(2) The Chairperson of the Corporation may request the head of the competent tax office or the head of the competent local government to provide tax information (tax data on gross income tax and local tax, limited to specific items in business registration data related thereto) in writing, stating the following matters. In such cases, he/she shall request the provision of tax information to the minimum extent necessary to exercise the right to indemnity under Article 28 (1) 7, and shall not abuse tax information for other purposes: <Newly Inserted by Act No. 12259, Jan. 14, 2014>
1. Personal information on taxpayers;
2. Purposes of use.
(3) The Corporation may request enterprises to provide cooperation in order to efficiently perform the comprehensive management of credit information under Article 28 (1) 5.
(4) Any person requested to provide data or cooperation pursuant to paragraphs (1) through (3) shall comply with such request except in extenuating circumstances. <Amended by Act No. 12259, Jan. 14, 2014>
[This Article Wholly Amended by Act No. 10683, May 19, 2011]
CHAPTER V PENALTY PROVISIONS
 Article 51 (Penalty Provisions)
Any person who discloses confidential information in violation of Article 24 (2) shall be punished by imprisonment with labor for not more than two years or by a fine not exceeding ten million won.
[This Article Wholly Amended by Act No. 11409, Mar. 21, 2012]
 Article 52 (Administrative Fine)
(1) Any person who uses the name of the Korea Technology Finance Corporation or any name similar thereto in violation of Article 49 shall be punished by an administrative fine not exceeding ten million won. <Amended by Act No. 14122, Mar. 29, 2016>
(2) The Minister of SMEs and Startups shall impose and collect administrative fine referred to in paragraph (1) under conditions prescribed by Presidential Decree. <Amended by Act No. 14839, Jul. 26, 2017>
[This Article Newly Inserted by Act No. 11409, Mar. 21, 2012]
ADDENDA
Article 1 (Enforcement Date)
This Act shall come into force on April 1, 1989.
Article 2 (Preparations for Establishment)
(1) The Minister of Finance may commission members for Establishment Committee to perform affairs relating to the establishment of the Corporation even before this Act enters into force.
(2) A member of the Committee for Establishment commission under paragraph (1) shall prepare the articles of incorporation and obtain authorization from the Minister of Finance without delay. In this case, where it has obtained such authorization of the Minister of Finance and Economy, it shall be deemed that the resolution of the management committee according to the provisions of Article 15 (1) has been adopted.
(3) Members of the Establishment Committee shall, upon the authorization under paragraph (2), complete a registration according to Article 16.
(4) Members of the Establishment Committee shall, upon completing the registration under paragraph (3), transfer its business to the President of the Corporation without delay.
Article 3 (Succession to Property, Rights and Duties)
(1) The property, rights and duties vested in the Korea Technology Finance Corporation established under the previous provisions, at the time when this Act enters into force shall be taken over as a whole by the Corporation under this Act.
(2) The property taken over by the Corporation under the provisions of paragraph (1) shall be deemed to be its fundamental property as provided for in Article 13.
Article 4 (Transitional Measures concerning Legal Act, etc. under Previous Provision)
Contributions toward the Korea Technology Finance Corporation, the issuance of guarantees and other legal acts already put into effect under the previous provisions, at the time when this Act enters into force, shall be deemed to have been made effective under the provisions of this Act.
ADDENDA <Act No. 4541, Mar. 6, 1993>
Article 1 (Enforcement Date)
This Act shall enter into force on the date of its promulgation. (Proviso Omitted.)
Articles 2 through 5 Omitted.
ADDENDUM <Act No. 4955, Aug. 4, 1995>
This Act shall enter into force on the date of its promulgation.
ADDENDUM <Act No. 5188, Dec. 30, 1996>
This Act shall enter into force on the date of its promulgation.
ADDENDA <Act No. 5374, Aug. 28, 1997>
Article 1 (Enforcement Date)
This Act shall enter into force on January 1, 1998.
Articles 2 through 7 Omitted.
ADDENDA <Act No. 5403, Aug. 30, 1997>
Article 1 (Enforcement Date)
This Act shall enter into force on the date of its promulgation.
Articles 2 through 8 Omitted.
ADDENDA <Act No. 5505, Jan. 13, 1998>
(1) (Enforcement Date) This Act shall enter into force on April 1, 1998. (Proviso Omitted.)
(2) (Transitional Measures concerning Dispositions) At the time of the entry into force of this Act, authorization or other actions taken by administrative agencies, or various reports or other actions submitted to administrative agencies under the previous provisions, shall be deemed to be actions taken by or submitted to administrative agencies under this Act.
(3) through (5) Omitted.
ADDENDUM <Act No. 5701, Jan. 29, 1999>
This Act shall enter into force on the date of its promulgation.
ADDENDA <Act No. 6022, Sep. 7, 1999>
Article 1 (Enforcement Date)
This Act shall enter into force on March 1, 2000.
Articles 2 and 3 Omitted.
ADDENDA <Act No. 6705, Aug. 26, 2002>
Article 1 (Enforcement Date)
This Act shall enter into force three months after the date of its promulgation.
Article 2 (Applicability to Composition of Management Committee)
The amendments to Article 17 (2) 2-2, 5 and 7 shall apply from the members first nominated or commissioned under the same amendments after this Act enters into force.
Article 3 (Transitional Measures concerning Technology Credit Guarantee)
In case where a credit guarantee before the enforcement of this Act falls under the requirement for the technology guarantee after the enforcement of this Act, it shall be regarded as the technology guarantee.
Article 4 Omitted.
ADDENDUM <Act No. 7884, Mar. 24, 2006>
This Act shall enter into force on the date of its promulgation.
ADDENDA <Act No. 8541, Jul. 23, 2007>
Article 1 (Enforcement Date)
This Act shall enter into force on the date of its promulgation. (Proviso Omitted.)
Articles 2 through 43 Omitted.
ADDENDA <Act No. 8635, Aug. 3, 2007>
Article 1 (Enforcement Date)
This Act shall enter into force one and half year after the date of its promulgation. (Proviso Omitted.)
Articles 2 through 44 Omitted.
ADDENDA <Act No. 8852, Feb. 29, 2008>
Article 1 (Enforcement Date)
This Act shall enter into force on the date of its promulgation. (Proviso Omitted.)
Articles 2 through 7 Omitted.
ADDENDA <Act No. 8863, Feb. 29, 2008>
Article 1 (Enforcement Date)
This Act shall enter into force on the date of its promulgation.
Articles 2 through 5 Omitted.
ADDENDUM <Act No. 9456, Feb. 6, 2009>
This Act shall enter into force three months after the date of its promulgation.
ADDENDA <Act No. 9584, Apr. 1, 2009>
Article 1 (Enforcement Date)
This Act shall enter into force on May 8, 2009.
Articles 2 through 6 Omitted.
ADDENDA <Act No. 9617, Apr. 1, 2009>
Article 1 (Enforcement Date)
This Act shall enter into force six months after the date of its promulgation.
Articles 2 through 13 Omitted.
ADDENDA <Act No. 10303, May 17, 2010>
Article 1 (Enforcement Date)
This Act shall enter into force six months after the date of its promulgation. (Proviso Omitted.)
Articles 2 through 10 Omitted.
ADDENDUM <Act No. 10683, May 19, 2011>
This Act shall enter into force on the date of its promulgation.
ADDENDA <Act No. 11409, Mar. 21, 2012>
Article 1 (Enforcement Date)
This Act shall enter into force three months after its promulgation: Provided, That the amended provisions of Articles 51 and 52 shall enter into force on the date of its promulgation.
Article 2 (Transitional Measures concerning Penal Provisions)
The application of penal provisions to offenses committed before this Act enters into force shall be governed by the former provisions.
ADDENDA <Act No. 11690, Mar. 23, 2013>
Article 1 (Enforcement Date)
(1) This Act shall enter into force on the date of its promulgation.
(2) Omitted.
Articles 2 through 7 Omitted.
ADDENDA <Act No. 11843, May 28, 2013>
Article 1 (Enforcement Date)
This Act shall enter into force on the date of its promulgation.
Article 2 (Applicability to Reduction or Exemption of Jointly and Severally Guaranteed Debt)
The amended provision of Article 37-3 shall apply to jointly and severally guaranteed debt of which the principal debt is reduced or exempted as the rehabilitation plan is authorized and immunity is granted after the declaration of bankruptcy on and after this Act enters into force.
ADDENDUM <Act No. 12259, Jan. 14, 2014>
This Act shall enter into force three months after the date of its promulgation.
ADDENDA <Act No. 14122, Mar. 29, 2016>
Article 1 (Enforcement Date)
This Act shall enter into force six months after its promulgation.
Article 2 (Transitional Measures on Name Change)
(1) The Korea Technology Credit Guarantee Fund, which was established under the previous provisions at the time this Act enters into force, shall be deemed the Korea Technology Finance Corporation.
(2) The Korea Technology Finance Corporation shall succeed to any and all properties, rights and obligations belonging to the Korea Technology Credit Guarantee Fund at the time this Act enters into force. In such cases, the book value of the succeeded properties as on the date preceding the enforcement date of this Act shall be deemed to be the value of such properties.
(3) The Korea Technology Credit Guarantee Fund shall be deemed the Korea Technology Finance Corporation in connection with any activities performed by the Korea Technology Credit Guarantee Fund as well as in connection with any other legal relationships.
(4) Any executive officer and employees of the Korea Technology Credit Guarantee Fund at the time this Act enters into force shall be deemed those of Korea Technology Finance Corporation. In such cases, the term of office of an executive shall be the remainder of the term of office under the Act on the Management of Public Institutions.
(5) Titles in the name of Korea Technology Credit Guarantee Fund on file with registers and any other public records, at the time this Act enters into force, shall be deemed to be in the name of Korea Technology Finance Corporation.
Article 3 (Special Cases with Authorization for Modification of Articles of Incorporation, etc.)
In regards of a change in the organization’s name, etc., authorization shall be deemed granted from the Financial Services Commission under Article 15 of this Act.
Article 4 Omitted.
Article 5 (Relationship to Other Acts)
All references to “Korea Technology Credit Guarantee Fund Act” or “Korea Technology Credit Guarantee Fund” in other Acts at the time this Act enters into force shall be deemed as referring to this Act or Korea Technology Finance Corporation in lieu of previous provisions.
ADDENDA <Act No. 14127, Mar. 29, 2016>
Article 1 (Enforcement Date)
This Act shall enter into force six months after its promulgation.
Articles 2 through 11 Omitted.
ADDENDA <Act No. 14839, Jul. 26, 2017>
Article 1 (Enforcement Date)
This Act shall enter into force on the date of its promulgation: Provided, That among Acts amended by Article 5 of the Addenda, Acts which have been promulgated before this Act enters into force, but the enforcement dates of which have yet to arrive shall enter into force on the enforcement date of the relevant Act.
Articles 2 through 6 Omitted.