ENFORCEMENT RULES OF THE SPECIALIZED CREDIT FINANCE BUSINESS ACT
Wholly Amended by Ordinance of the Prime Minister No. 932, jun. 11, 2010
Amended by Ordinance of the Prime Minister No. 996, Oct. 15, 2012
The purpose of this Rule is to provide for the matters delegated by the Specialized Credit Finance Business Act and the Enforcement Decree of the aforesaid Act and the matters necessary for the enforcement thereof.
| Article 2 (Minority Contributors) |
"Minority contributors prescribed by Ordinance of the Prime Minister" in subparagraph 2 of Article 4 of the Specialized Credit Finance Business Act (hereinafter referred to as the "Act") mean persons who own stocks not exceeding 1/100 of the total number of outstanding voting stocks of a specialized credit financial business company or of a corporation that intends to become a specialized credit financial business company.
| Article 3 (Method for Notification of Terms and Conditions of Transactions, etc.) |
| (1) | Pursuant to Article 18, a credit card company shall notify credit card holders, debit card holders, or prepaid card holders (hereinafter referred to as "credit card holders, etc.") and credit card merchants of the matters specified in Article 18 of the Act by methods specified in the following subparagraphs: <Amended by Ordinance of the Prime Minister No. 996, Oct. 15, 2012> |
| 1. | Various rates specified in subparagraph 1 of Article 18 of the Act (hereafter referred to as "various rates" in this Article) shall be notified as follows: |
| (a) | Various rates that a credit card company shall apply to a credit card holder or debit card holder according to the card holder’s credit rating, overdue period, etc.: Such various rates shall be converted into annual rates and shall be posted on the web-site of the credit card company and that of the Specialized Credit Financial Business Association established pursuant to Article 62 of the Act (hereinafter referred to as the "Association"); |
| (b) | The credit rating of a credit card holder and various rates converted into annual rates, which shall apply to the credit card holder, when a new credit card is issued or when purchases by credit card are billed: Each credit card member shall be notified individually of such information; |
| (c) | Credit card merchant fees according to the categories determined by the Association: Such information shall be posted on the web-site of the relevant credit card company and that of the Association within one month after the end of each quater; |
| 2. | The matters specified in subparagraphs 2 through 4 of Article 18 of the Act shall be notified by two or more methods, including the method specified in item (a), from among the methods specified in the following items: |
| (a) | Credit card holders, etc. and credit card merchants shall be individually notified of such information; |
| (b) | Such information shall be publicly notified through daily newspapers distributed nationwide; |
| (c) | Such information shall be posted at the place of business and web-site of the relevant credit card company; |
| 3. | The matters specified in paragraph (2) 1, 2, and 4 shall be posted on the web-site of the relevant credit card company and that of the Association within one month after the end of each quarter, while the matters specified in paragraph (2) 3 shall be posted on such web-sites within one month after the end of each month. |
| (2) | "Matters prescribed by Ordinance of the Prime Minister" in subparagraph 5 of Article 18 of the Act mean the following matters: <Amended by Ordinance of the Prime Minister No. 996, Oct. 15, 2012> |
| 1. | The ratio of income (referring to the ratio of gross income, such as interest and fees accruing during a quarter, to the total amount of loans lent during the quarter, which shall be converted into an annual ratio), including fees from each type of loans that a credit card company lends to credit card holders; |
| 2. | The current status of distribution of credit ratings applied to credit card holders; |
| 3. | The current status of distribution of credit ratings of the credit card holders who have borrowed a loan and the current status of distribution of interest rates; |
| 4. | The number of dormant credit cards defined in Article 7-2 (2) 3 of the Decree (hereinafter referred to as "dormant credit cards"), the ratio of the number of dormant credit cards to the total number of credit cards, and the procedure for the cancellation of dormant credit cards. |
| (3) | The Financial Services Commission may prescribe and publicly notify necessary matters regarding the methods for posting and notifying various rates under paragraph (1). |
| Article 4 (Termination of Contracts Made with Merchants) |
| Article 5 (Types of Articles to be Deposited, etc.) |
| 3. | Stock certificates or equity shares listed on the Korea Exchange at least three months ago. |
| (2) | A credit card company shall deposit the amount of money specified in Article 8 of the Decree by not later than the end of the month following the end of each quarter. |
| Article 6 (Public Announcement of Rights Executor) |
When the Financial Services Commission designates a rights executor under Article 26 (1), it shall publish the designation in the official gazette.
| Article 7 (Public Announcement of Distribution of Deposited Articles) |
| (1) | The rights executor designated under Article 26 (1) of the Act shall determine the period, method, and place of reporting as follows in accordance with Article 26 (4) of the Act and publicly announce them through at least two daily newspapers distributed nationwide: |
| 1. | Period of reporting: Not less than two weeks; |
| 2. | Method of reporting: It shall be clearly stated that the report can be made orally, in writing, by facsimile or by information and communications network; |
| 3. | Place of reporting: The head office or a branch office of the rights executor. |
| (2) | The date of payment of debts, the method of payment, and other matters necessary for the payment of debts may be included in the public announcement made pursuant to paragraph (1). |
| Article 8 (Tagging of Specific Articles) |
| (1) | A tag that shall be attached to a specific article under Article 36 shall be made following the Form attached hereto: Provided, That the foregoing shall not apply to specific articles that shall be registered or recorded under any other Act or subordinate statute. |
| (2) | A tag under paragraph (1) shall be attached to a highly visible place and shall be protected from destruction. |
| Article 9 (Limits on Lending) |
If the amount invested in venture businessmen (including investment by venture business investment associations under Article 41 (3) of the Act; the same shall apply hereinafter) is less than equity capital, the net amount of the increase per year in the loans that a venture capitalist lends to venture businessmen (excluding the amount lent from a fund borrowed pursuant to Article 42 of the Act) shall not exceed 15 times the amount of investment in venture businessmen per year.
| Article 10 (Real Property for Business Purposes) |
ADDENDUM <Ordinance of the Prime Minister No. 932, Jun. 11, 2010>
This Rule shall enter into force on June 13, 2010.
ADDENDUM <Ordinance of the Prime Minister No. 996, Oct. 15, 2012>
This Rule shall enter into force on Oct. 15, 2012. (Proviso Omitted.)