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ENFORCEMENT DECREE OF THE ACT ON THE CREATION AND DEVELOPMENT OF FINANCIAL HUBS

Presidential Decree No. 20753, Mar. 21, 2008

Amended by Presidential Decree No. 20947, Jul. 29, 2008

Presidential Decree No. 21518, May 29, 2009

Presidential Decree No. 22075, Mar. 15, 2010

Presidential Decree No. 22191, jun. 8, 2010

Presidential Decree No. 23684, Mar. 26, 2012

Presidential Decree No. 23718, Apr. 10, 2012

Presidential Decree No. 24435, Mar. 23, 2013

Presidential Decree No. 26844, Dec. 31, 2015

 Article 1 (Purpose)
The purpose of this Decree is to provide for matters delegated by the Act on the Creation and Development of Financial Hubs and those necessary for the enforcement thereof.
 Article 2 (Definition)
The term "entities prescribed by Presidential Decree" in subparagraph 2 (b) of Article 2 of the Act on the Creation and Development of Financial Hubs (hereinafter referred to as the "Act") means:
1. The Korea Investment Corporation under the Act On The Establishment, Etc. Of Financial Services Commision;
2. Post offices under the Postal Savings and Insurance Act.
 Article 3 (Procedures for Development of Basic Plans)
(1) The Financial Services Commission shall establish guidelines for developing the basic plan by not later than January 31 of each year in which such basic plan should be developed pursuant to Article 5 (1) of the Act, and request the head of the relevant central administrative agency and the Special Metropolitan City Mayor, Metropolitan City Mayor, Do Governor or Governor of the Special Self-Governing Province who has jurisdiction over the relevant financial hub designated under Article 5 (5) of the Act (hereafter referred to as the "head of the relevant administrative agency, etc." in this Article) to develop the plan and policy for matters, under his/her control, related to the creation and development of financial hubs, and submit such plan and policy to the Commission.
(2) The head of the relevant administrative agency, etc. shall develop the plan and policy for the matters, under his/her control, related to the creation and development of financial hubs according to the guidelines referred to in paragraph (1) and submit such plan and policy to the Financial Services Commission by not later than the end of February of the relevant year.
(3) Where it is necessary for the development of a basic plan, the Financial Services Commission may request the heads of domestic or foreign financial institutions, the heads of finance-related education or research institutions, or the heads of other corporations or organizations to submit necessary data by fixing a deadline pursuant to Article 5 (4) of the Act.
(4) The Financial Services Commission shall propose a draft basic plan that incorporates the plans and policies received under paragraphs (1) through (3).
(5) The draft basic plan proposed under paragraph (4) shall be adopted after deliberation by the Financial Hubs Establishment Committee described in Article 6 (1) of the Act (hereinafter referred to as the "Committee").
 Article 4 (Designation of Financial Hubs, etc.)
(1) The Special Metropolitan City Mayor, Metropolitan City Mayor, Do Governor, or Governor of the Special Self-Governing Province (hereinafter referred to as "Mayor/Do Governor") who wishes his/her jurisdictional area to be designated as a financial hub pursuant to Article 5 (5) of the Act shall submit an application to the Financial Services Commission.
(2) Before submitting an application for the designation of a financial hub pursuant to paragraph (1), the Mayor/Do Governor shall develop a development plan, provide public notice thereof, seek the opinions thereon from the relevant residents, companies, experts, local councils, etc., and then undergo deliberation by the City/Do Urban Planning Committee described in Article 113 (1) of the National Land Planning and Utilization Act.
(3) In submitting an application for the designation of a financial hub pursuant to paragraph (1), the Mayor/Do Governor shall consult with the Financial Services Commission regarding the preparation of a development plan for the financial hub (hereinafter referred to as "development plan") and file it with the Financial Services Commission.
(4) The Financial Services Commission shall, immediately after designating a financial hub pursuant to Article 5 (5) of the Act, issue a notice to the competent Mayor/Do Governor.
 Article 5 (Development Plans for Financial Hubs)
(1) Each development plan shall include the following matters:
1. Title, location and area of a relevant financial hub;
2. Necessity for designating a relevant financial hub;
3. Duration and methods of implementing a relevant financial hub development project and methods of raising finances therefor;
4. Current status of financial institutions and finance-related industries located within the development area;
5. Plans to attract, remove, and support domestic or foreign financial institutions and allied service industries;
6. Plans to build infrastructure, such as energy supply, transportation, information and communications, and other assets;
7. Plans to create living environment, such as living facilities, cultural facilities, and other facilities;
8. Plans for buildings and structures established in the development area, etc.;
9. Plans to provide foreign language services;
10. Effects to contribute to the efficiency and revitalization of the national economy and regional economies, including the financial industry.
(2) The development plan shall be submitted to the Financial Services Commission together with a topographical map and cadastral map (including a forestry map) that depict the location and boundary of the financial hub.
 Article 6 (Matters to be Considered in Designating Financial Hubs)
The Committee shall take into account the following matters when deliberating pursuant to subparagraph 1 of Article 9: <Amended by Presidential Decree No. 23718, Apr. 10, 2012>
1. Potential for growth of a financial hub into an international financial hub;
2. Current status of domestic and foreign financial institutions and finance-related industries and possibility to attract them;
3. Business environment, educational environment and living environment;
4. Availability of experts;
5. Feasibility of a development plan;
6. Effects to contribute to the efficiency and revitalization of the national economy and regional economy, including the finance industry;
7. Whether to correspond with the basic urban and ruralplanning described in the National Land Planning and Utilization Act;
8. Opinions of the relevant residents, companies, etc. on the designation of a financial hub.
 Article 7 (Revocation of Designation of Financial Hubs, etc.)
(1) The Financial Services Commission may, at the request of the competent Mayor/Do Governor or to the extent necessary, revoke (or partially revoke) the designation of a financial hub or change the contents of the development plan after deliberation of the Committee.
(2) Where the Financial Services Commission revokes the designation or changes the contents of a development plan pursuant to paragraph (1), it shall issue a notice to the Mayor/Do Governor without delay.
 Article 8 (Public Notice on Designation of Financial Hubs, etc.)
(1) Where the Financial Services Commission designates a financial hub pursuant to Article 5 (5) of the Act, it shall publish the following matters in the Official Gazette:
1. Title, location and area of the financial hub;
2. Purposes for the designation of the financial hub;
3. Plans to install main infrastructure;
4. Plans to create business environment and living environment with the aim of attracting domestic and foreign financial institutions;
5. Other matters as the Committee deems necessary.
(2) Where the Financial Services Commission partially revokes the designation of a financial hub or changes the contents of the development plan, it shall publish the grounds therefor and the changed matters among those in each subparagraph of paragraph (1) in the Official Gazette: Provided, That where the Commissionwholly revokes the designated financial hub, it shall publish the grounds for such revocation and the matters in paragraph (1) 1 and 2 in the Official Gazette.
 Article 9 (Matters to be Deliberated by Committee)
"Matters prescribed by Presidential Decree" in Article 6 (1) 6 of the Act means:
1. Matters concerning the designation and revocation of a financial hub and the amendment of a development plan;
2. Matters concerning the cultivation of financial experts and the designation of financial expert training institutions;
3. Matters concerning the establishment of a financial hub support centers;
4. Matters as the chairperson of the Committee (hereinafter referred to as "Chairperson") deems necessary to deliberate on and refer to the meetings of the Committee.
 Article 10 (Composition of Committee, etc.)
(1) The Financial Services Commission shall appoint the members of the Committee from among those who meet any of the following subparagraphs pursuant to Article 6 (3) 1 of the Act. In such cases, the Financial Services Commission may obtain recommendation by the competent Mayors/Do Governors having jurisdiction over financial hubs designated under Article 5 (5) of the Act: <Amended by Presidential Decree No. 22191, Jun. 8, 2010>
1. Any person who has at least ten years of work or research experience in finance or investment fields while working for universities, research institutions or financial institutions;
2. Any person qualified as an attorney-at-law, certified public accountant or certified tax accountant who has been engaged in the finance, investment or corporate audit business for not less than ten years;
3. Any person who has been engaged in international finance or investment business for not less than ten years at international finance organizations.
(2) "Vice ministers of the relevant administrative agencies prescribed by Presidential Decree or other public officials equivalent thereto" in Article 6 (3) 2 of the Act means the following persons. In such cases, in cases of agencies having two or more vice ministers, it means the vice minister designated by the Ministers of the relevant agencies: <Amended by Presidential Decree No. 22075, Mar. 15, 2010; Presidential Decree No. 22191, Jun. 8, 2010, Presidential Decree No. 24435, Mar. 23, 2013>
1. The Vice Minister of Strategy and Finance;
2. Deleted; <by Presidential Decree No. 22191, Jun. 8, 2010>
3. The Vice Minister of Trade, Industry and Energy;
4. and 5. Deleted; <by Presidential Decree No. 22191, Jun. 8, 2010>
6. Other vice ministers of the relevant central administrative agencies in connection with the agenda referred to the meetings of the Committee or other public officials equivalent thereto;
7. The Mayor/Do Governor who has jurisdiction over the financial hub designated under Article 5 (5) of the Act.
(3) "Persons prescribed by Presidential Decree" in Article 6 (3) 3 of the Act means: <Amended by Presidential Decree No. 20947, Jul. 29, 2008; Presidential Decree No. 21518, May 29, 2009>
1. through 3. Deleted; <by Presidential Decree No. 22191, Jun. 8, 2010>
4. The President of the Korea Investment Corporation under the Korea Investment Corporation Act;
5. The Chairperson of the Korea Exchange under the Financial Investment Services and Capital Markets Act ;
6. The Chairperson of the Korea Federation of Banks established under Article 32 of the Civil Act;
7. The Chairperson of the Korea Financial Investment Association under the Financial Investment Services and Capital Markets Act ;
8. The Chairperson of the Insurance Association which consists of life insurance companies among Insurance Associations established under Article 175 of the Insurance Business Act;
9. The Chairperson of the Insurance Association which consists of non-life insurance companies among Insurance Associations established under Article 175 of the Insurance Business Act;
10. Deleted. <by Presidential Decree No. 20947, Jul. 29, 2008>
 Article 10-2 (Removal of Members of Committee)
Where any member of the Committee commissioned under Article 10 (1) falls under any of the following, the Financial Services Commission may remove him/her from office:
1. He/she becomes unable to perform his/her duties due to mental disorder;
2. He/she commits any misconduct in connection with his/her duties;
3. He/she is deemed inappropriate as a member due to negligence of duties, injury to dignity or other reasons;
4. He/she voluntarily informs that circumstances prevent him/her from performing his/her duties.
[This Article Newly Inserted by Presidential Decree No. 26844, Dec. 31, 2015]
 Article 11 (Operation of Committee)
(1) In calling meetings of the Committee, the Chairperson shall issue to each member a written notice stating the date and time and place of a meeting and agenda to be referred to the meeting not later than seven days before the date on which the meeting is held: in cases of emergency or due to unavoidable reasons, such notice shall not be required.
(2) The Chairperson may request public officials of the Presidential Advisory Commission which is related to the agenda referred to a meeting, the Mayor/Do Governor, or the heads of relevant financial institutions to attend the meeting in order that they render opinions. <Amended by Presidential Decree No. 22191, Jun. 8, 2010>
(3) The Committee shall open its meetings with the attendance of a majority of the total members and resolutions on matters shall be passed with the concurrent votes of a majority of those present.
(4) The Chairperson may establish subcommittees to efficiently administer the Committee after the resolution of the Committee.
(5) Any civil members who attend meetings of the Committee or subcommittees may receive compensation and travel expenses within the limit of budget: Provided, That any public officials who attend such meetings directly related to their duties shall not be compensated.
(6) Except as otherwise provided for in this Decree, such matters as may be necessary to administer the Committee shall be determined by the Chairperson after the resolution of the Committee.
 Article 12 (Withdrawal of or Avoidance by Members)
(1) Any person who has direct interest in matters to be deliberated and resolved by the Committee may submit an application for the withdrawal of members, which states the reasons why it difficult to expect impartial deliberation or resolution. In such cases, the Chairperson shall determine as to whether such application is acceptable without resolution of the Committee being passed.
(2) The member who has the grounds described in paragraph (1) may, at his or her discretion, avoid the deliberation or resolution on the relevant matters.
 Article 13 (Entrustment with Duties to Prepare Reports on Current Status and Prospects for Financial Expert Supply and Demand, etc.)
(1) Any persons who are entitled to be entrusted with duties of preparing current status and outlook on supply and demand of financial experts under the proviso to Article 10 (2) of the Act shall be agencies or organizations that are designated and published by the Financial Services Commission among the following institutions: <Amended by Presidential Decree No. 23684, Mar. 26, 2012>
1. Schools described in each subparagraph of Article 2 of the Higher Education Act and corresponding educational institutions established under other Acts;
3. Other institutions or organizations with expertise in finance-related fields.
(2) The Financial Services Commission and a person entrusted with the duties pursuant to paragraph (1) may request related administrative agencies or related corporations or organizations to submit necessary data, if necessary for performing duties under Article 10 (2) of the Act. <Newly Inserted by Presidential Decree No. 23684, Mar. 26, 2012>
 Article 14 (Designation of Financial Expert Training Institutions)
(1) The Financial Services Commission may designate any one of the following institutions as a financial expert training institution after deliberation by the Committee pursuant to Article 10 (3) of the Act: <Amended by Presidential Decree No. 23684, Mar. 26, 2012>
1. Graduate Schools of Management under Article 22-2 (1) 1 of the Higher Education Act;
2. Graduate Schools of Finance under Article 22-2 (1) 2 of the Higher Education Act;
3. Other universities or research institutions with expertise in a financial field or other finance-related institutions or organizations.
(2) Where the Financial Services Commission provides financial assistance for education and training to financial experts training institutions pursuant to Article 10 (4) of the Act, it shall enter into an agreement with the institutions to receive such assistance, stating the following matters:
1. Details of the projects to be implemented by financial experts training institutions;
2. Purposes for use of the funds provided (hereafter referred to as "grants" in this Article) and plans to administer them;
3. Expectations of the projects to be implemented;
4. Matters concerning amendments to agreements;
5. If the institutions which have received grants violate the agreement, measures to be taken against them;
6. Such other matters as the Financial Services Commission considers necessary to carry out the projects.
(3) The Financial Services Commission may provide grants, either in lump-sum or in installments, taking into consideration the details of the projects and the time to carry out such projects.
 Article 14-2 (Financial Support of Mayors/Do Governors for Inducement and Agglomeration of Financial Institutions)
(1) A Mayor/Do Governor may provide some of the following fundsto domestic and foreign financial institutions, as prescribed by Article 12-2 (1) of the Act:
1. Funds for building business installations necessary for domestic and foreign financial institutions, etc. to settle in the financial hubs by starting new business (excluding domestic financial institutions' moving into the place) such as a Special Metropolitan City, Metropolitan City, Do, or Special Self-Governing Province (hereinafter referred to as "City/Do");
2. Other funds necessary for inducing and agglomerating financial institutions, etc.
(2) Necessary matters regarding application criteria in detail, application procedures, etc. for funds under paragraph (1) shall be prescribed by municipal ordinances of relevant City/Do.
[This Article Newly Inserted by Presidential Decree No. 23684, Mar. 26, 2012]
 Article 14-3 (Financial Support of State for Inducement and Agglomeration of Financial Institutions)
(1) Where a Mayor/Do Governor requests for necessary support for inducement and agglomeration of financial institutions as prescribed by Article 12-2 (2) of the Act, the State may provide to a Mayor/Do Governor with some of the following funds: Provided, That, the State shall not support domestic and foreign financial institutions eligible for applying for the funds, which have received financial support as prescribed by the Foreign Investment Promotion Act and other Acts and subordinate statutes prescribed by the Financial Services Commission:
1. Funds for building business installations necessary for domestic and foreign financial institutions, etc. to settle in the financial hubs by starting new business;
2. Other necessary funds for inducement and agglomeration of domestic and foreign financial institutions, as recognized by the Financial Services Commission.
(2) The Financial Services Commission shall prescribe necessary matters regarding volume, application criteria in detail, application procedures, etc. of the funds under paragraph (1) after deliberation by the Committee, considering the following matters:
1. Influence on promoting the creation and development of financial hubs;
2. Influence on reinforcing global competitiveness of the financial industry;
3. Influence on economy, such as business type, investment volume, scale of job creation, etc. of financial institutions;
4. Contribution of local governments to inducing investment of financial institutions.
[This Article Newly Inserted by Presidential Decree No. 23684, Mar. 26, 2012]
 Article 14-4 (Reduction, etc. of Loan Fee for Public Assets)
Specific matters regarding public assets qualified to be reduced, reduction rate thereof, etc. shall be prescribed by municipal ordinances of relevant local governments, considering influences on scale of job creation, development of financial industry and financial hubs, and boosting local economy.
[This Article Newly Inserted by Presidential Decree No. 23684, Mar. 26, 2012]
 Article 15 (Financial Hub Support Center)
(1) The institutions or organizations in which the Financial Services Commission establish financial hub support centers pursuant to Article 13 (1) of the Act shall be designated among the following institutions or organizations after resolution by the Committee:
1. Financial Supervisory Service under the Act on the Establishment, etc. of Financial Services Commission;
3. Such other institutions or organizations designated by the Financial Services Commission as may be necessary to create or develop financial hubs.
(2) The relevant administrative agencies, corporations or organizations which have received request for assistance pursuant to Article 13 (2) of the Act shall comply with such request within fourteen days or, if they cannot comply with such requests, notify of the grounds therefor.
(3) Necessary matters for operating a financial hub supply center in addition to matters prescribed in paragraphs (1) and (2) shall be prescribed by the Financial Services Commission, following deliberation by the Committee. <Newly Inserted by Presidential Decree No. 23684, Mar. 26, 2012>
ADDENDA
Article 1 (Enforcement Date)
This Decree shall enter into force on March 22, 2008.
Article 2 (Special Applicability to Basic Plans)
The time to determine guidelines for the basic plan and the time to submit plans and policies developed by the heads of the relevant central administrative agencies, etc. during the year in which the initial basic plan should be developed shall be otherwise determined by the Chairperson of the Financial Services Commission, notwithstanding the provisions of Article 3 (1) and (2).
ADDENDA <Presidential Decree No. 20947, Jul. 29, 2008>
Article 1 (Enforcement Date)
This Decree shall enter into force on February 4, 2009. (Proviso Omitted.)
Articles 2 through 28 Omitted.
ADDENDA <Presidential Decree No. 21518, May 29, 2009>
Article 1 (Enforcement Date)
This Decree shall enter into force on June 1, 2009.
Articles 2 and 3 Omitted.
ADDENDA <Presidential Decree No. 22075, Mar. 15, 2010>
Article 1 (Enforcement Date)
This Decree shall enter into force on March 19, 2010. (Proviso Omitted.)
Article 2 Omitted.
ADDENDUM <Presidential Decree No. 22191, Jun. 8, 2010>
This Decree shall enter into force on the date of its promulgation.
ADDENDUM <Presidential Decree No. 23684, Mar. 26, 2012>
This Decree shall enter into force on April 1, 2012.
ADDENDA <Presidential Decree No. 23718, Apr. 10, 2012>
Article 1 (Enforcement Date)
This Decree shall enter into force on April 15, 2012. (Proviso Omitted.)
Articles 2 through 15 Omitted.
ADDENDA <Presidential Decree No. 24435, Mar. 23, 2013>
Article 1 (Enforcement Date)
This Decree shall enter into force on the date of its promulgation.
Articles 2 through 4 Omitted.
ADDENDUM <Presidential Decree No. 26844, Dec. 31, 2015>
This Decree shall enter into force on the date of its promulgation.