The purpose of this Act is to regulate any fund-raising business conducted without permission in order to protect good traders and establish a sound financial order.
[This Article Wholly Amended by Act No. 10045, Feb. 4, 2010]
The term "fund-raising business without permission" used in this Act means any business falling under any one of the following subparagraphs that is performed to raise funds from unspecified individuals without obtaining authorization or permission or making a registration or report, etc. under other Acts and subordinate statutes:
| 1. | The business of receiving any investment under an agreement to pay the whole of such investment or an amount exceeding such investment in the future; |
| 2. | The business of receiving money on the pretext of savings, installment savings, installments, deposits, etc. under an agreement to pay the whole of the principal thereof or an amount exceeding such principal in the future; |
| 3. | The business of issuing or selling debentures under an agreement to repurchase such debentures for no less than the price of such issuance or sale in the future; and |
| 4. | The business of receiving money on the pretext of membership fees, etc. under an agreement to compensate for any future economic loss with cash or securities. |
[This Article Wholly Amended by Act No. 10045, Feb. 4, 2010]
| Article 3 (Prohibition on Fund-Raising Business without Permission) |
No person shall conduct any fund-raising business without permission.
[This Article Wholly Amended by Act No. 10045, Feb. 4, 2010]
| Article 4 (Prohibition on Indication or Advertisement of Fund-Raising Business without Permission) |
No person shall make any indication or advertisement (referring to any indication or advertisement under the Act on Fair Indication and Advertisement) on his/her business for unspecified individuals with a view to carrying on any fund-raising business without permission.
[This Article Wholly Amended by Act No. 10045, Feb. 4, 2010]
| Article 5 (Prohibition against Use of Trade Name Similar to Financial Business) |
No person shall use any name, as prescribed by Presidential Decree, recognizable as a financial business in his/her trade name for the purposes of performing any fund-raising business without permission.
[This Article Wholly Amended by Act No. 10045, Feb. 4, 2010]
| Article 6 (Penal Provisions) |
| (1) | Any person who conducts any fund-raising business without permission in violation of
Article 3 shall be punished by imprisonment for not more than five years or by a fine not exceeding fifty million won.
|
| (2) | Any person who makes any indication or advertisement in violation of
Article 4 shall be punished by imprisonment for not more than two years or by a fine not exceeding twenty million won.
|
[This Article Wholly Amended by Act No. 10045, Feb. 4, 2010]
| Article 7 (Joint Penal Provisions) |
If a representative of a juristic person, or an agent, employee or other servant of a juristic person or individual commits a violation under
Article 6 in connection with the business of the juristic person or individual, not only shall such violator be punished, but also the juristic person or individual shall be punished by a fine under the relevant provisions:
Provided, That where such juristic person or individual has not been negligent in giving due attention and supervision concerning the relevant duties to prevent such violation, this shall not apply.
[This Article Wholly Amended by Act No. 10045, Feb. 4, 2010]
| Article 8 (Fines for Negligence) |
| (1) | A person who uses any name recognizable as a financial business for the purposes of performing any fund-raising business without permission in violation of
Article 5 shall be punished by a fine for negligence not exceeding 50 million won.
|
| (2) | A fine for negligence under paragraph (1) shall be imposed and collected by the Financial Services Commission, as prescribed by Presidential Decree. |
[This Article Newly Inserted by Act No. 10045, Feb. 4, 2010]
ADDENDUM
This Act shall enter into force on the date of its promulgation.
ADDENDA<Act No. 10045, Feb. 4, 2010>
| (1) | (Enforcement Date) This Decree shall enter into force on the date of its promulgation. |
| (2) | (Transitional Measures) When penal provisions apply to an act committed before this Act enters into force, the former provisions shall apply. |