ACT ON THE CREATION AND DEVELOPMENT OF FINANCIAL HUBS
Act No. 8699, Dec. 21, 2007
Amended by Act No. 8863, Feb. 29, 2008
Act No. 11069, Sep. 30, 2011
The purpose of this Act is to contribute to the development of the national economy by providing for matters relating to the creation and development of a financial hub to strengthen the competitiveness of financial industry as well as to ensure the advancement of financial market.
The terms used in this Act shall be defined as follows: <Amended by Act No. 8863, Feb. 29, 2008; Act No. 11407, Mar. 21, 2012>
| 1. | The term "financial hub" means a hub of domestic and international financial transactions in which many financial institutions can raise, make transactions and manage funds, as well as making other financial transactions; |
| 2. | The term "Korean financial institution" means any entity falling under any of the following subparagraphs: |
| (b) | An entity engaging in financial business or finance-related affairs in the Republic of Korea and provided for by Presidential Decree; |
| 3. | The term "foreign financial institution" means any entity established under Acts and subordinate statutes of a foreign country and engaged in the financial business therein. |
| Article 3 (Basic Responsibilities of State) |
| (1) | The State shall establish and implement various policies for the creation and development of a financial hub. |
| (2) | The Government shall, each year, submit to the National Assembly a report on policies and trends with respect to the creation and development of a financial hub prior to the commencement of an ordinary session of the National Assembly. |
| Article 4 (Relationship to Other Acts) |
Except as otherwise provided in other Acts, the creation and development of a financial hub shall be governed by this Act.
| Article 5 (Formulation, etc. of Basic Plan) |
| (1) | In order to promote the creation and development of a financial hub, the Financial Services Commission shall formulate and implement a basic plan for such creation and development (hereinafter referred to as the "basic plan") every three years. <Amended by Act No. 8863, Feb. 29, 2008> |
| (2) | The basic plan shall include the following matters: |
| 1. | Fundamental directions and objectives of policies on the creation and development of a financial hub; |
| 2. | Improvement of systems, Acts and subordinate statutes related to foreign exchange and any other finance; |
| 3. | Support for and promotion of the financial market for the creation and development of a financial hub; |
| 4. | Improvement of finance-related control and financial supervision systems for the creation and development of a financial hub; |
| 5. | International cooperation for the creation and development of a financial hub; |
| 6. | Improvement of management and life environment for the creation and development of a financial hub; |
| 7. | Development of and support for the specialized finance carrying on financial business in the specific field by using the characteristic and condition of foreign financial market; |
| 8. | Development of and support for information and communication systems related to the financial business; |
| 9. | Training of experts in finance; |
| 10. | Agglomeration of financial institutions and vitalization of the financial business; |
| 11. | Improvement of tax systems related to finance; and |
| 12. | Other matters necessary for the creation and development of a financial hub. |
| (3) | The Financial Services Commission shall confirm the basic plan after deliberation by the Financial Hubs Establishment Committee established under Article 6. <Amended by Act No. 8863, Feb. 29, 2008> |
| (4) | The Financial Services Commission may, if necessary for the formulation of the basic plan, request the relevant administrative agencies, education or research institutions related to finance or other corporations or organizations to submit necessary materials. <Amended by Act No. 8863, Feb. 29, 2008> |
| (5) | The Financial Services Commission may, if deemed necessary for the agglomeration of financial institutions and vitalization of financial business, designate many areas as financial hub. <Amended by Act No. 8863, Feb. 29, 2008> |
| (6) | Other matters necessary for the formulation and implementation of the basic plan shall be provided for by Presidential Decree |
| Article 6 (Financial Hubs Establishment Committee) |
| (1) | Under the Financial Services Commission, the Financial Hubs Establishment Committee (hereinafter referred to as the "Committee") shall be established to deliberate on the following matters: <Amended by Act No. 8863, Feb. 29, 2008> |
| 1. | Formulation and modification of the basic plan; |
| 2. | Establishment of major policies on the creation and development of a financial hub; |
| 3. | Coordination of opinions of the administrative agencies concerned concerning the creation and development of a financial hub; |
| 4. | Examination of implementation situation of policies related to the creation and development of a financial hub; |
| 5. | Review of status of treatment of matters relating to the improvement of management environment reported under Article 13 (3), and examination of performance and improvements of Acts and subordinate statutes and systems; and |
| 6. | Other matters necessary for the creation and development of a financial hub which are provided for by Presidential Decree. |
| (2) | The Committee shall be composed of not more than thirty members, including one Chairperson. |
| (3) | The chairperson of the Committee shall be the chairperson of the Financial Services Commission, and the members shall be the following persons: <Amended by Act No. 8863, Feb. 29, 2008> |
| 1. | Persons who have much knowledge and experience in finance and are commissioned by the Financial Services Commission (hereinafter referred to as "commissioned members"); |
| 2. | Vice ministers of the relevant administrative agencies provided for by Presidential Decree or other officials equivalent thereto; and |
| 3. | Heads of finance-related institutions provided for by Presidential Decree. |
| (4) | The number of members referred to in each subparagraph of paragraph (3) shall not exceed ten. |
| (5) | Commissioned members shall hold office for a term of two years and may be commissioned consecutively for further terms. |
| (6) | Other matters necessary for the composition and operation of the Committee shall be provided for by Presidential Decree. |
| Article 7 (Enhancement of Transparency in Financial Market) |
The Government shall repeal unnecessary regulations related to finance and restrain the establishment of inefficient regulations related to finance in order to vitalize the financial market.
| Article 8 (Promotion of Competition) |
The Government shall endeavor to establish efficient competitive systems of the financial market as well as to create the fair competitive environment.
| Article 9 (Promotion of Financial Reform) |
The Government shall endeavor to promote financial reform, such as the launch of new financial products based on creative idea and growth in sales, to enhance the productivity of financial institutions through management improvement.
| Article 10 (Training of Experts in Finance) |
| (1) | The Government shall formulate and implement policies for the training of experts in finance in order to develop human resources necessary for the creation and development of a financial hub. |
| (2) | The Financial Services Commission shall make and publish a report on the status and prospect of supply and demand of experts in finance each year: Provided, That it may entrust such creation and publication to relevant specialized institutions or organizations in accordance with Presidential Decree. <Amended by Act No. 8863, Feb. 29, 2008> |
| (3) | In order to train experts in finance, the Financial Services Commission may designate universities, research institutes, or other finance-related institutions or organizations as training institutions for experts in finance and have them conduct education and training. <Amended by Act No. 8863, Feb. 29, 2008> |
| (4) | The Financial Services Commission may provide expenses necessary for education and training under paragraph (3), to such an extent as its budget permits. <Amended by Act No. 8863, Feb. 29, 2008> |
| Article 11 (Support for International Exchange and Cooperation) |
| (1) | In order to prepare and develop a financial hub, the Government shall formulate the following international exchange and cooperation promotion methods: |
| 1. | Survey of international trends related to the creation and development of a financial hub; |
| 2. | Cooperation with international organizations related to finance and foreign governments in finance-related affairs; |
| 3. | Exchange of financial personnel between a domestic enterprise, university, research institute, institution or organization (hereinafter referred to as "enterprises.") and a foreign enterprise; |
| 4. | Establishment of international cooperation systems to promote the export of technology and equipment related to payment and settlement affairs, securities deposit and storage affairs or other financial affairs; and |
| 5. | Other projects necessary for the promotion of international exchange and cooperation. |
| (2) | If domestic enterprises implement projects falling within paragraph (1) 1 and 3 through 5, the Government may provide support necessary therefor. |
| Article 12 (Support for Mutual Relocation of Domestic and Foreign Financial Institutions) |
The Government shall establish and implement policies on the following matters for the creation and development of a financial hub:
| 1. | Improvement of situation for the relocation of domestic financial institutions into foreign countries; |
| 2. | Improvement of situation for the relocation of foreign financial institutions into the Republic of Korea; |
| 3. | Expansion of financial transactions between domestic and foreign financial institutions; and |
| 4. | Improvement of situation necessary for the internationalization of the financial industry. |
| Article 12-2 (Support to Attraction and Agglomeration of Financial Institutions) |
| (1) | A Special Metropolitan City Mayor, a Metropolitan City Mayor, a Do Governor, or the Governor of a Special Self-Governing Province having jurisdiction over financial hubs (hereafter in this Article referred to as the "Mayor/Do Governor") may, where necessary for the development of a financial hub through the attraction and agglomeration of financial institutions, offer funds for domestic or foreign financial institutions in compliance with the criteria prescribed by Presidential Decree. |
| (2) | When the Mayor/Do Governor files a request to obtain necessary financial support under paragraph (1), the State may offer funds within budgetary limits in compliance with the criteria prescribed by Presidential Decree. |
| (3) | Notwithstanding the provisions of the Public Property and Commodity Management Act and other Acts, local governments may grant a reduction of or exemption from fees charged for the lease of public property for domestic or foreign financial institutions in a financial hub as prescribed by Presidential Decree. |
[This Article Newly Inserted by Act No. 11069, Sep. 30, 2011]
| Article 13 (Financial Hub Support Center) |
| (1) | Any institution or organization provided for by Presidential Decree, taking into account the specialty, etc. of finance-related affairs, shall have a financial hub support center to perform the following duties comprehensively: |
| 1. | Support for the relocation of domestic financial institutions into foreign countries; |
| 2. | Support for the relocation of foreign financial institutions into the Republic of Korea; and |
| 3. | Management of matters concerning the improvement of management environment related to the conduct of the financial business in the Republic of Korea by domestic and foreign financial institutions. |
| (2) | The head of a financial hub support center may, if necessary to perform duties referred to in paragraph (1) 3, request the relevant administrative agencies, corporations or organizations to provide necessary assistance. If the relevant administrative agencies, corporations or organizations fail to comply with such request, they shall notify of the reasons therefor. |
| (3) | The head of a financial hub support center shall report the status of treatment of matters relating to the improvement of management environment under paragraph (1) 3 and performance to the Committee. In such case, he/she may, if it is necessary to improve Acts and subordinate statutes and systems in connection with such treatment, include the methods for improvement in such report. |
| (4) | The Financial Services Commission may provide the expenses necessary for the establishment and operation of a financial hub support center, to such an extent as its budget permits. <Amended by Act No. 8863, Feb. 29, 2008> |
ADDENDUM
This Act shall enter into force three months after the date of its promulgation.
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. 11069, Sep. 30, 2011>
This Act shall enter into force six months after the date of its promulgation.
ADDENDA<Act No. 11407, Mar. 21, 2012>
Article 1 (Enforcement Date)
This Act shall enter into force on the date of its promulgation. (Proviso Omitted.)
Articles 2 and 3 Omitted.