Statutes of the Republic of Korea

Article 1 (Purpose)

The purpose of this Decree is to provide for matters delegated by the Public Trust Act and matters necessary for the enforcement thereof.

Article 2 (Public Service)

“Business prescribed by Presidential Decree” prescribed in subparagraph 1 (n) of Article 2 of the Public Trust Act (hereinafter referred to as the “Act”) means any of the following businesses:

1.	Business for the purpose of the rational use, maintenance, or preservation of national land;

2.	Business for the purpose of the stable supply of the essential goods and services in national life;

3.	Business for the purpose of promoting the public interest, according to the case of the business prescribed in subparagraph 1 (a) through (m) of Article 2 of the Act, or the business prescribed in subparagraph 1 and 2 of the same Article.

Article 3 (Application for Authorization of Public Trust)

(1)

A person who intends to obtain authorization for the public trust prescribed in Article 3 (1) of the Act shall submit the written application for the authorization, in which the following matters are entered, to the Minister of Justice: Provided, That where he/she fails to conclude a trust contract with the whole or a part of entrusting persons at the time of application, matters prescribed in subparagraph 4 may not be entered for an entrusting person who has failed to conclude the trust contract yet:

1.	Name, resident registration number and address (in cases of a juristic person, name, corporate registration number, location of the main office, and name and address of a representative);

2.

Name, treatment place for trust affairs (referring to the main office where the trust affairs of the public trust are handled; where there exists no treatment place for trust affairs, referring to the address of a trustee; hereinafter the same shall apply), target business, and profit-making business of the public trust;

3.	Name, resident registration number and address of a trustee (in cases of a juristic person, name, corporate registration number, location of the main office, and name and address of a representative);

4.	Name, resident registration number, and address of an entrusting person (in cases of a juristic person, name, corporate registration number, location of the main office, and name and address of a representative);

5.	Name, resident registration number, and address of a trust administrator (in cases of a juristic person, name, corporate registration number, location of the main office, and name and address of a representative);

6.	The total amount of trust property at the time of application, and its limit in cases of determining the limit of the trust property;

7.	Verification on whether the special relationship enlisted in Article 4 exists between the two trustees, two trust administrators, and between a trustee and a trust administrator;

8.	In cases of scheduling to include in the trust property upon receipt of donations from the third person, the purpose and limit of the donation.

(2)	The following documents shall be attached to the written application for authorization prescribed in paragraph (1):

1.	Documents listed with the career (in cases of a juristic person, referring to bylaws and the business activity for the latest three years) of a trustee;

2.	Certificate of non-existence of criminal records and the details of registration of the ward of a trustee;

3.	Documents concerning the payment and default of taxes related to the trust property, and documents concerning the payment and default of taxes of a trustee;

4.	Trust contract (where he/she fails to conclude the trust contract with the whole or a part of entrusting persons at the time of application, including documents in which main details are entered when concluding the trust contract with him/her in the future);

5.

Property list clearly entered with type, quantity, amount, and relationship of rights and duties of the trust property (in cases of failing to conclude the trust contract with the whole or a part of entrusting persons at the time of application, having the property which is entrusted additionally from an entrusting person who has concluded the trust contract, or having a plan to include in the trust property upon receipt of donations from the third person, the period to be entrusted or donated in the future, the trust property, or the kinds and total amount of money and valuables to be donated shall be entered in property list);

6.	A certificate issued by a registry office, financial company, etc. concerning the trust property, such as the real estate, deposit, and securities (falling under only the trust property entrusted at the time of application);

7.	Due date of business commencement, and the business plan and budgetary document of incomes and expenses for the 2nd business year (in cases of less than two years for the business year, referring to a portion falling under the business year) after the commencement of business;

8.	Documents and a written consent for appointment entered with a career (in cases of a juristic person, referring to bylaws and the business activity for the latest three years) of a trust administrator;

9.	In cases of organizing the committee concerning the operation of the public trust for the designation, etc. of the recipient to be provided with the operation, donation, or profit of the public trust, the name, address and career of the members;

10.	In cases of planning to include the trust property upon receipt of money and valuables from the third person, the plan for the collection and use for donations;

11.	where it is deemed necessary to render a disposition, such as permission, authorization, designation, registration, report, or consultation in accordance with other Act and subordinate statute, referring to a copy of the written disposition.

Article 4 (Scope of Special Relationship)

(1)	“A person under a special relationship prescribed by Presidential Decree between each other of trustees” prescribed in subparagraph 4 of Article 4 of the Act means the other trustee who has any of the following relationships with any one among trustees:

1.	A person under relationships of claim and obligation;

2.	A person under relationships of employment;

3.	A person who is an employee or was an employee, where a trustee is a juristic person.

(2)	“A person under a special relationship prescribed by Presidential Decree between each other of trust administrators” prescribed in subparagraph 5 of Article 4 of the Act means the other trust administrator who has any of the following relationships with any one among trust administrators:

1.	Where a trust administrator is an individual: any of the following persons:

(a)	A spouse (including a person under relationships of de facto marriage);

(b)	Blood relationship within second cousins;

(c)	Relative within cousins;

(d)	A biological child and concurrently a person adopted as full adoption into other person, and his/her spouse and lineal descendants;

(e)	A person who maintains the livelihood by money and valuables of a trust administrator or other property;

(f)	A person who shares the livelihood with a trust administrator;

2.	Where a trust administrator is a juristic person, any of the following persons:

(a)	A director, executive officer, and auditor of a trust administrator;

(b)	Where a trust administrator belongs to a corporate group pursuant to the Monopoly Regulation and Fair Trade Act, other affiliated company belonging to the corporate group and its director, executive officer, and auditor.

(3)

“A special relationship prescribed by Presidential Decree” prescribed in subparagraph 6 of Article 4 of the Act means cases under relationships following the classification of subparagraphs of paragraph (2). In such cases, a “trust administrator” among subparagraphs of paragraph (2) shall be deemed a “trust administrator or trustee.”

(4)	“ A trust administrator or a person under a special relationship prescribed by Presidential Decree” prescribed in subparagraph 8 (a) of Article 4 of the Act means any of the following persons:

1.	Trust related person: any of the following persons:

(a)	An administrator for the trust property;

(b)	A creditor of an entrusting person, a trustee, a trust administrator, an employee, and an administrator for the trust property;

2.

A specially related person of a trust related person prescribed in subparagraph 8 (a) of Article 4: trust related person (referring to an entrusting person, a trustee, a trust administrator, an employee, or a person prescribed in items of subparagraph 1; hereinafter the same shall apply) and a person under relationship following the classification of subparagraphs of paragraph (2). In such cases, “a trust administrator” under subparagraphs of paragraph (2) shall be deemed a “trust related person.”

Article 5 (Procedures for Authorization and Procedures for Revocation and Modification of Authorization Condition)

(1)

The Minister of Justice may, where it is impracticable to determine whether to authorize only with the application for the authorization and its attached documents submitted under Article 3 or whether to impose the conditions prescribed in Article 6 (1) of the Act, request the supplementation or vindication to the applicant of the authorization.

(2)

Where a trustee of the public trust applies for the revocation or modification of the condition attached to the authorization prescribed in Article 6 (2) of the Act, he/she shall submit the application for the revocation and modification of the authorization condition and the documents to vindicate the ground therefor to the Minister of Justice.

Article 6 (Procedures for Authorization of Modification)

(1)	A trustee who intends to obtain authorization for modification prescribed in Article 7 (1) of the Act shall submit the application for the authorization of modification, in which the following matters are entered, to the Minister of Justice:

1.	Matters to be modified among matters prescribed in subparagraphs of Article 7 (1) of the Act;

2.	Grounds for modification.

(2)	The application for the authorization of modification pursuant to paragraph (1) shall attach the following documents:

1.	Where the trust contract is modified: the trust contract to be modified (where the purpose of modification is already included in the trust contract, it may be replaced with the existing trust contract);

2.

Where matters prescribed in Article 7 (1) 1 or 2 of the Act are modified: due date of the commencement of the business to be modified, and the business plan and budgetary document of incomes and expenses for the 2nd business year (in cases of less than two years for the business year, referring to a portion falling under the business year) after the commencement of business;

3.	Where matters prescribed in Article 7 (1) 4 are modified: the following documents:

(a)

Documents entered with the name, resident registration number, and career of a trustee or trust administrator (in cases of a juristic person, name, corporate registration number, location of the main office, and name and address of a representative, and bylaws and business activity for the latest three years);

(b)	Certificate of non-existence of criminal records and the details of registration of the ward of a trustee, and documents related to the payment and default of taxes (including only in cases where a trustee is modified);

(c)	The letter to verify the fact whether the special relationship enlisted in Article 4 exists between the two trustees, two trust administrators, and between a trustee and a trust administrator;

4.	Where matters prescribed in Article 7 (1) 5 of the Act are modified: the following documents:

(a)	Documents where the method of procuring financial resources to be modified is vindicated;

(b)	In cases of modifying the method procuring financial resources with respect to donations, the written plan for the collection and use of donations;

5.	In cases of modification of the limited liability trust prescribed in Article 7 (1) 6 of the Act: documents where matters prescribed in Article 114 and 115 (1) of the Trust Act are vindicated;

6.	Where the disposition such as the permission, authorization, designation, registration, report, or consultation in accordance with other Act and subordinate statute is required: a copy of the written disposition.

Article 7 (Matters of Reports on Modification)

(1)	“Matters prescribed by Presidential Decree, such as the name of the public trust” prescribed in Article 8 (1) of the Act means any of the following matters:

1.	Name of the public trust;

2.	Entrusting person;

3.	Name or address (in cases of a juristic person, name or location of the main office) of a trustee or a trust administrator;

4.	Main office where the trust affairs of the limited liability trust are dealt with.

(2)	Where any modification is reported under Article 8 (1) of the Act by the reason of the name modification of the public trust as the limited liability trust, a certificate of details of registration related to the name modification shall be attached.

Article 8 (Operation of Trust Property)

(1)

A trustee who intends to obtain permission for the extension of a period of use for the public business and profit-making business according to Article 11 (5) shall submit the following documents before three months prior to lapse of three years from the date when the trust property is entrusted, to the Minister of Justice:

1.	Application for the permission for the extension of a period;

2.	Documents explaining why the extension of a period is required.

(2)	“Amount prescribed by Presidential Decree” prescribed in Article 11 (6) of the Act means the total amount of the long-term loan including the amount to be borrowed, which falls sunder 5/100 of the total amount of the trust property deducted by total amount of the debts at time of borrowing.

Article 9 (Methods for Calculation of Operating Incomes)

Article 38 (5) of the Enforcement Decree of Inheritance Tax and Gift Tax Act shall apply mutatis mutandis to the calculation of the operating incomes prescribed in Article 12 (1) of the Act.

Article 10 (Delegation of Trust Affairs)

“Affairs prescribed by Presidential Decree" prescribed in Article 14 (1) 3 of the Act means any of the following affairs:

1.	Affairs providing donations or profits to designated recipients in accordance with the public services;

2.	Affairs, the purposes of which are hardly achieved without delegating the tasks to third parties, and those tasks which have been delegated and approved by the Minister of Justice.

Article 11 (Documents Attached to Business Plans and Business Reports)

(1)	“Documents prescribed by Presidential Decree” prescribed in Article 16 (1) of the Act means the following documents:

1.	Estimated balance sheet and its annexed specifications;

2.	Estimated statement of profits and losses, and its annexed specifications.

(2)	“Documents prescribed by Presidential Decree” prescribed in Article 16 (2) of the Act means the following documents:

1.	Balance sheet and its annexed specifications;

2.	Statement of profits and losses and its annexed specifications;

3.	Audit report of an external auditor (limited to cases subject to the external audit prescribed in Article 17 of the Act);

4.	Operating specifications of the trust property;

5.	Usage checklist of the trust property;

6.	Detailed specifications of the public service;

7.	Usage specifications of donations.

Article 12 (Standards for External Audit)

“Standards prescribed by Presidential Decree” prescribed in Article 17 of the Act shall means ten billion won.

Article 13 (Procedures, etc. for Authorization of Merger)

(1)	A trustee who intends to obtain authorization of merger prescribed in Article 20 (2) of the Act shall submit the application for the authorization of merger, in which the following matters are entered, to the Minister of Justice:

1.	Name (falling under the case if there exists any name) and treatment place for trust affairs on the trusts intending to merge, and name and treatment place for trust affairs on the trust after the merger;

2.	Details of the public trust, etc. on the trusts intending to merge and the trust after the merger (where there exists any modification due to the merger, its details and the ground of modification shall be entered together);

3.	Name, resident registration number, and address of trustees on the trusts intending to merge and the trust after the merger (in cases of a juristic person, name, corporate registration number, location of the main office, and name and address of a representative);

4.	Name, resident registration number, and address of entrusting persons on the trusts intending to merge (in cases of a juristic person, name, corporate registration number, location of the main office, and name and address of a representative);

5.	Name, resident registration number, and address of trust administrators on the trusts intending to merge and the trust after the merger (in cases of a juristic person, name, corporate registration number, location of the main office, and name and address of a representative);

6.	The total amount and its limit of the trust property on the trusts intending to merge and the trust after the merger;

7.	Grounds of the trust merger and the date of the merger contract.

(2)	The following documents shall be attached to the application for the authorization of merger pursuant to paragraph (1):

1.	The trust merger agreement;

2.	The trust agreement and property list of the trusts intending to effect a merger;

3.	The property list of the trust after the merger;

4.	A certificate of the registry office, financial company, etc. concerning the trust property such as the real property, deposit, and securities;

5.

The due date of the commencement of business of the trust after the merger and the business plan and the budgetary document of incomes and expenses for the 2nd business year (where the period of business is less than two years, referring to a portion falling under the period of the business) after the commencement of business: Provided, That cases where the variable value of the trust property due to the merger fails to exceed 10/100 of the existing trust property shall be excluded herefrom;

6.	The letter to verify whether the special relationship enlisted in Article 4 exists between the two trustees, two trust administrators, and between a trustee and a trust administrator;

7.	Where the trust after the merger is scheduled to include in the trust property upon receipt of donations from the third party, the plan for the collection and use of donations.

(3)	Articles 4 through 6 of the Act and Article 5 of this Decree shall apply mutatis mutandis to the methods and procedures for the examination of the merger authorization prescribed in Article 20 (2) of the Act.

Article 14 (Appointment, etc. of Administrators for Custody and Trust)

(1)	An administrator for the custody and trust (hereinafter referred to as a “administrator for the custody and trust”) prescribed in Article 24 (3) of the Act shall be appointed as a person who is not applicable to any of items under subparagraph 3 Article 4 of the Act.

(2)	The Minister of Justice may, if necessary for the appointment of an administrator for the custody and trust, hear the opinion of the person interested.

(3)	An administrator for the custody and trust shall be deemed to have been in the status of a trustee within the scope for the purpose of appointment.

(4)	When an administrator for the custody and trust donates the trust property or loans for free, approval shall be obtained by the Minister of Justice.

(5)	The Minister of Justice may, if necessary, pay the appropriate remuneration with the trust property to an appointed administrator for the custody and trust.

Article 15 (Processing of Unique Identification Information)

The Minister of Justice may, if unavoidable for performing the following affairs, process data including the resident registration number and foreign registration number prescribed in subparagraph 1 or 4 of Article 19 of the Enforcement Decree of the Personal Information Protection Act:

1.	Affairs concerning the authorization for the public trust prescribed in Article 3 of the Act;

2.	Affairs concerning the imposition, revocation, and modification of the authorization condition for the public trust prescribed in Article 6 of the Act;

3.	Affairs concerning the modification authorization for the public trust prescribed in Article 7 of the Act;

4.	Affairs concerning the modification report for the public trust prescribed in Article 8 of the Act;

5.	Affairs concerning the commission of registration prescribed in Article 9 (3) of the Act;

6.	Affairs concerning the public notification of the public trust prescribed in Article 10 of the Act;

7.	Affairs concerning the operating supervision of the trust property prescribed in Article 11 of the Act;

8.	Affairs concerning the supervision of the business plan, business report, etc. prescribed in Article 16 of the Act;

9.	Affairs concerning the authorization of merger and the commission of registration prescribed in Article 20 of the Act;

10.	Affairs concerning the revocation of authorization for the public trust and the commission of registration prescribed in Article 22 of the Act;

11.	Affairs concerning the termination of the public trust and the commission of registration prescribed in Article 23 of the Act;

12.	Affairs concerning the devolvement of the remaining property prescribed in Article 24 (1) and (2) of the Act;

13.	Affairs concerning the appointment, etc. of an administrator for the custody and trust prescribed in Article 24 (3) of the Act;

14.	Affairs concerning the supervision of the public trust prescribed in the provisions of Article 25 through 27 of the Act;

15.	Affairs concerning the approval for delegation of the trust affairs prescribed in subparagraph 2 of Article 10.

Article 16 (Standards for Imposition of Fines for Negligence)

The standards for imposition of the fine for negligence prescribed in Article 33 (1) and (2) shall be as shown in the attached Table.

Article 17 (Format)

The Minister of Justice shall determine the format necessary for the enforcement of the Act and this Decree and publicly announce such format.

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ENFORCEMENT DECREE OF THE PUBLIC TRUST ACT