The purpose of this Act is to reasonably manage government enterprises and to enhance transparency of their operation by establishing special accounts for each government enterprise and prescribing matters concerning management of their budgets, etc.
| Article 2 (Government Enterprises) |
The term "government enterprise" used in this Act means the postal business, post office deposit business, grain management business, and procurement business operated in the form of a corporation.
| Article 3 (Establishment of Special Accounts) |
In order to operate government enterprises, special accounts in the following subparagraphs shall be established, and their revenues shall be appropriated for their expenditures:
| 1. | Special account for postal business; |
| 2. | Special account for post office deposits; |
| 3. | Special account for grain management; |
| 4. | Special account for procurement. |
| Article 4 (Management and Operation of Special Account) |
Special accounts (hereinafter referred to as "special account") established in accordance with the provisions of Article 3, shall be managed and operated by the head of the relevant central government agency.
| Article 5 (Revenues and Expenditures of Special Account for Postal Business) |
| Article 6 (Revenues and Expenditures of Special Account of Post Office Deposits) |
| Article 7 (Revenues and Expenditures of Special Account for Grain Management) |
| (1) | The revenues of the special account for grain management shall include those in the following subparagraphs: |
| 1. | Revenues of the grain management business; |
| 2. | Funds transferred from other accounts and funds; |
| 4. | A balance carried forward from the previous year; |
| 5. | Other revenues related to the grain management business. |
| (2) | The expenditures of the special account for grain management shall include those in the following subparagraphs: |
| 1. | Expenses incurred in management and operation of the grain management business; |
| 2. | Funds transferred into other accounts and funds; |
| 3. | Amounts of repayment of and interest on borrowed funds; |
| 4. | Other expenditures related to the grain management business. |
| Article 8 (Revenues and Expenditures of Special Account for Procurement) |
| (1) | The revenues of specials account for procurement shall include those in the following subparagraphs: |
| 1. | Revenues of the procurement business; |
| 2. | Funds transferred from other accounts and funds; |
| 4. | A balance carried forward from the previous year; |
| 5. | Other revenues related to the procurement business. |
| (2) | The expenditures of the special account for procurement shall include those in the following subparagraphs: |
| 1. | Expenses incurred in management and operation of the procurement business; |
| 2. | Funds transferred into other accounts and funds; |
| 3. | Amounts of repayment of and interest on borrowed funds; |
| 4. | Other expenditures related to the procurement business. |
| Article 9 (Relationship with other Acts) |
| (1) | Except as otherwise provided for in this Act, the National Finance Act shall govern the budget of special accounts. |
| (2) | Except as otherwise provided for in this Act, the Management of the National Funds Act shall govern the management of national funds, including revenues and expenditures of special accounts. |
| Article 10 (Increase or Decrease in Net Assets) |
The government may, when it is deemed necessary, increase or decrease net assets in special accounts, as prescribed by Presidential Decree.
| Article 11 (Borrowing of Funds) |
| (1) | Special accounts may borrow funds, in cases where any inevitable reason exists for construction or improvement of facilities necessary for the business or operation of the business. |
| (2) | Special accounts may borrow funds temporarily, when their funds for expenditures are temporarily insufficient. |
| (3) | In cases of the special accounts for grain management, temporarily borrowed funds under paragraph (2) may be repaid by October 31 of the following year. |
| Article 12 (Advance Payment of Funds) |
The special accounts for grain management may pay funds necessary for purchasing grain and managing grain in advance to a substitutional agency prescribed by Presidential Decree.
| Article 13 (Holding and Managing of Revolving Fund) |
| (1) | Special accounts may hold funds (hereafter referred to as "revolving fund" in this Article) necessary for operation of a business, apart from the revenues and expenditures. |
| (2) | When special accounts intend to hold and manage the revolving fund, it shall obtain approval from the Minister of Strategy and Finance, as prescribed by Presidential Decree. |
| Article 14 (Funds Transferred from or into other Accounts and Funds) |
When special accounts transfer funds from other accounts or funds, or transfer funds into other accounts or funds, it shall be reflected in the general budget provisions under Article 20 of the National Finance Act.
| Article 15 (Division of Revenue and Expenditure Budgets) |
Revenue and expenditure budgets of special accounts may be divided into the profit and loss account, capital account, and other necessary accounts.
| Article 16 (Reserve Funds) |
Special accounts may include considerable amounts of reserve funds in the budget, so as to appropriate the reserve funds for unpredictable expenditure not provided for in the budget, or expenditure exceeding the budget.
| Article 17 (Submission of Written Requests for Budgets) |
When the head of the relevant central government agency requests a budget for a special account under Article 31 of the National Finance Act, he/she shall attach additional documents referred to in the following subparagraphs: | 1. | A written project plan and funding plan for the relevant year; |
| 2. | An estimated finance management statement and the statement of estimated financial status for the previous year and the relevant year; |
| 3. | The finance management statement, the statement of financial status, and its supplementary documents for the year before the previous year; |
| 4. | A statement of increase or decrease in its inventory. |
| Article 18 (Documents Attached to Budget Bills) |
Budget bills of special accounts submitted to the National Assembly shall be accompanied by the additional documents referred to in the following subparagraphs, apart from the documents attached to the budget bill under Article 34 of the National Finance Act: | 1. | A written investment plan and funding plan for the relevant year; |
| 2. | An estimated finance management statement and the statement of estimated financial status for the relevant year; |
| 3. | A statement of borrowed funds; |
| 4. | A statement of funds transferred from other accounts and funds. |
| Article 19 (Expenditure Incurred in Generating Revenue) |
| (1) | Special accounts may, for the reasonable operation of their business, use the revenue in excess of, or revenue estimated to be in excess of the budget due to an increase in demand (hereafter referred to as "excess revenue" in this Article) for the expenditure directly related to the excess revenue. |
| (2) | The head of the relevant central government agency shall submit a statement specifying the reasons and the amount, to the Minister of Strategy and Finance, in cases where he/she wishes to use the excess revenue according to the provisions of paragraph (1). |
| (3) | The Minister of Strategy and Finance shall review the statement of paragraph (2) and shall obtain approval from the President after the deliberation of the State Council. |
| (4) | The Minister of Strategy and Finance shall, if it is decided that the excess revenues are to be appropriated under paragraph (3), notify the head of the relevant central government agency of such appropriation, and shall inform the Board of Audit and Inspection of such fact. |
| Article 20 (Re-appropriation of Budget) |
| (1) | The head of the relevant central government agency may re-appropriate the expenses referred to in each paragraph or item of the expenditure budget as prescribed by Presidential Decree, when it is particularly necessary for budget implementation, notwithstanding the provisions of Article 46 (1) of the National Finance Act. |
| (2) | The head of the relevant central government agency shall, when he/she has re-appropriated the budget under paragraph (1), send a statement specifying the amounts of and reasons for re-appropriation by item to the Minister of Strategy and Finance and the Board of Audit and Inspection. |
| Article 21 (Dispositions of Profits and Losses) |
Special accounts shall, when any profit in settlement of accounts for every fiscal year accrues, reserve such profits as accumulate fund or surplus, and, when any loss occurs, shall adjust such loss to the accumulated fund or surplus: the whole or part of the accumulated fund or surplus from the settlement of accounts may be transferred into the general accounts, by obtaining approval from the President after undergoing deliberation of the State Council, where it is deemed necessary.
| (1) | Special accounts may carry out tasks referred to in the following subparagraphs at the expense of a truster, unless the operation thereof is hindered: |
| 1. | Construction of facilities and manufacture, repair, or procurement of equipment related to the business of relevant special accounts; |
| 2. | The business of consignment sales related to the business of relevant special accounts. |
| (2) | Necessary matters concerning tasks referred to in each subparagraph of paragraph (1) shall be determined by the head of the relevant central government agency. |
ADDENDA
Article 1 (Enforcement Date)
This Act shall enter into force on January 1, 2009.
Article 2 (Transitional Measures concerning Settlement of Accounts)
The settlement of accounts for the fiscal year 2008 shall be governed by the previous provisions.
Article 3 (Transitional Measures concerning Documents Attached to Written Request for Budget)
"The statement of estimated profits and losses, the estimated balance sheet, the statement of profits and losses and the balance sheet" prescribed under the previous provisions when this Act enters into force, shall be deemed "the statement of estimated financial statement, the estimated finance condition statement, the finance management statement, and the statement of financial status", respectively, under the revised provisions of Article 17. Article 4 (Transitional Measures concerning Retained Earnings)
"The retained earnings" prescribed under the previous provisions when this Act enters into force, shall be deemed the "accumulated fund and surplus" under the revised provisions of Article 21. Article 5 Omitted.
Article 6 (Relationship with other Statutes)
In cases where other statutes cite the previous Enterprise Budget and Accounts Act or its provisions at the time this Act enters into force, if any provision corresponding to such provisions exists in this Act, it shall be deemed that this Act or the corresponding provisions of this Act are cited, in lieu of the previous provisions.
ADDENDA <Act No. 10247, Apr. 12, 2010>
| (1) | (Enforcement Date) This Act shall enter into force six months after the date of its promulgation. |