ENFORCEMENT DECREE OF THE ACT ON RAISING LUMP-SUM SAVING OF FARMING AND FISHING HOUSEHOLDS
Presidential Decree No. 11895, May 13, 1986
Amended by Presidential Decree No. 12712, May 26, 1989
Presidential Decree No. 14438, Dec. 23, 1994
Presidential Decree No. 14668, jun. 17, 1995
Presidential Decree No. 17052, Dec. 29, 2000
Presidential Decree No. 17824, Dec. 30, 2002
Presidential Decree No. 20653, Feb. 29, 2008
Presidential Decree No. 22037, Feb. 18, 2010
Presidential Decree No. 24286, Dec. 28, 2012
Presidential Decree No. 25458, Jul. 14, 2014
Presidential Decree No. 27924, Feb. 28, 2017
[This Article Wholly Amended by Presidential Decree No. 24286, Dec. 28, 2012]
| Article 2 (Scope, etc. of Farmers and Fishermen) |
| (1) | "Persons prescribed by Presidential Decree" in parts other than the items of subparagraph 2 of Article 2 of the Act on Raising Lump-sum Saving of Farming and Fishing Households (hereinafter referred to as the "Act") means farmers, fishermen and foresters falling under each item of the same subparagraph, excluding the following persons (hereinafter referred to as "farmers and fishermen"): <Amended by Presidential Decree No. 25458, Jul. 14, 2014> |
| 1. | Any person who owns or rents farmland exceeding two hectares; |
| 2. | Any person who owns a fishing boat exceeding 20 tons; |
| 3. | Any person who owns livestock in numbers exceeding the standard specified in the attached Table; |
| 4. | Any person who owns or rents forest and land, the aggregate area of which exceeds 10 hectares. |
| (2) | "Low-income farmer and fisherman" in this Decree means persons other than those falling under any of the following subparagraphs: <Amended by Presidential Decree No. 25458, Jul. 14, 2014> |
| 1. | Any person who owns or rents farmland exceeding one hectare; |
| 1-2. | Any person employed by a farming association corporation or agricultural corporation; |
| 2. | Any person who owns a fishing vessel exceeding five tons; |
| 2-2. | Any person who practices aquaculture; |
| 3. | Any person who owns livestock in numbers exceeding 50 percent of the standard provided for in the attached Table; |
| 4. | Any person who owns or rents forest and land, the aggregate area of which exceeds five hectares. |
| (3) | Notwithstanding paragraph (1), among farmers and fishermen, any person who falls within any of the following shall not be deemed a farmer or fisherman: <Newly Inserted by Presidential Decree No. 25458, Jul. 14, 2014; Presidential Decree No. 27924, Feb. 28, 2017> |
| 1. | Any person who regularly works in an area other than that in which he/she engages as a farmer or fisherman; |
| 2. | Any person whose amount of gross income (referring to the amount of gross income under Article 14 (2) of the Income Tax Act) generated in the immediately preceding year in an area other than that in which he/she engages as a farmer or fisherman is more than 40/100 of the standard median income (referring to the standard median income under subparagraph 11 of Article 2 of the National Basic Living Security Act) in the immediately preceding year. |
| (4) | Whether a person falls within the scope of farmers and fishermen or low-income farmers and fishermen as defined in the provisions of paragraphs (1) through (3) shall be determined with reference to the time when he/she enters into a contract for lump-sum savings pursuant to Article 7. <Amended by Presidential Decree No. 25458, Jul. 14, 2014> |
[This Article Wholly Amended by Presidential Decree No. 24286, Dec. 28, 2012]
| Article 3 (Types of Lump-Sum Savings) |
Lump-sum savings of farming and fishing households (hereinafter referred to as "lump-sum savings") shall be classified as follows:
| 1. | A monthly saving plan: monthly contribution; |
| 2. | A quarterly saving plan: quarterly contribution; |
| 3. | A semiannual saving plan: semiannual contribution. |
[This Article Wholly Amended by Presidential Decree No. 24286, Dec. 28, 2012]
| Article 4 (Amount of Lump-Sum Savings) |
| (1) | The maximum annual contribution to the lump-sum savings of a person shall be 2.4 million won. <Amended by Presidential Decree No. 27924, Feb. 28, 2017> |
| (2) | The minimum of a regular contribution to the lump-sum savings shall meet the following criteria in each category, and the unit amount shall be 1,000 won: |
| 1. | A monthly savings plan: 5,000 won; |
| 2. | A quarterly savings plan: 15,000 won; |
| 3. | A semiannual savings plan: 30,000 won. |
| (3) | Farmers and fishermen may have multiple savings accounts up to the amount of the contribution to savings under paragraph (1). |
| (4) | Farmers and fishermen may modify their savings contracts or terminate part of the savings to increase or decrease a regular contribution to the savings after the conclusion of the contract for the lump-sum savings. |
[This Article Wholly Amended by Presidential Decree No. 24286, Dec. 28, 2012]
| Article 5 (Period of Lump-Sum Savings) |
The period of lump-sum saving shall be three years or five years.
| Article 6 (Interest Rate on Lump-Sum Savings) |
Interest rate paid by savings institutions on the amount of the lump-sum savings shall be determined by the Financial Services Commission in consideration of market interest rates, etc. <Amended by Presidential Decree No. 14438, Dec. 23, 1994; Presidential Decree No. 20653, Feb. 29, 2008; Presidential Decree No. 25458, Jul. 14, 2014>
| Article 7 (Application for Savings Contracts and its Ascertainment) |
| (1) | Any person who intends to make contribution to lump-sum savings (hereinafter referred to as "applicant for savings") shall submit a savings institution an application for a lump-sum saving contract in a form prescribed by the savings institution. |
| (2) | Any savings institution which receives an application for a lump-sum saving contract under paragraph (1) shall ascertain whether the applicant for savings falls within the definition of farmers and fishermen or low-income farmers and fishermen herein. |
| (3) | A lump-sum saving contract shall be deemed concluded as of the date when an applicant for savings first makes contribution to a savings institution. |
[This Article Wholly Amended by Presidential Decree No. 24286, Dec. 28, 2012]
| Article 7-2 (Notification of Tax Information) |
When the Commissioner of National Tax Service is requested to provide tax information pursuant to Article 4 (2) of the Act, he/she shall provide the savings institution with tax information about whether the relevant person who wishes to save money meets requirements under Article 2 (3) 2. [This Article Newly Inserted by Presidential Decree No. 25458, Jul. 14, 2014]
| Article 8 (Lump-Sum Savings Contracts) |
| (1) | A lump-sum savings contract shall be made between a farmer or fisherman and a savings institution. |
| (2) | The following matters shall be included in a lump-sum savings contract: <Amended by Presidential Decree No. 25458, Jul. 14, 2014> |
| 1. | Address and name of the relevant person entering into the savings contract; |
| 2. | Classification of savings, each contribution of savings, period of savings and date of regular contribution of savings; |
| 3. | Matters concerning the termination of the savings contract; |
| 4. | Matters concerning the payment of the principal and the profit therefrom; |
| 5. | Matters concerning the payment and clawback of savings incentives; |
| 6. | Matters concerning the consent to request for tax information. |
[This Article Wholly Amended by Presidential Decree No. 24286, Dec. 28, 2012]
| Article 9 (Ways of Lump-Sum Savings) |
Lump-sum savings shall be made by means of making each contribution to savings institutions by farmers or fishermen themselves or their agents in accordance with the savings contracts in an accumulative manner.
[This Article Wholly Amended by Presidential Decree No. 24286, Dec. 28, 2012]
| Article 10 (Deemed Termination of Savings Contracts) |
| (1) | When any person who has entered into a contract for a monthly savings plan fails to make contribution for at least six consecutive months, the savings contract concerned shall be deemed terminated on the date when the six months elapse. |
| (2) | When any person who has entered into a contract for a quarterly savings plan or semiannual savings plan fails to make contribution for at least one and half years from the date of the last payment, the savings contract concerned shall be deemed terminated on the date when a year elapses from the date of the last payment. |
[This Article Wholly Amended by Presidential Decree No. 24286, Dec. 28, 2012]
| Article 11 (Payment of Savings Incentives) |
The savings incentive provided for in Article 6 of the Act (hereinafter referred to as "savings incentive") shall be paid through the savings institution concerned from the Savings Incentive Fund for Lump-Sum Savings of Farming and Fishing Households (hereinafter referred to as the "Fund") in the amount classified as follows: <Amended by Presidential Decree No. 25458, Jul. 14, 2014; Presidential Decree No. 27924, Feb. 28, 2017> | 1. | Where farmers and fishermen maintain their savings accounts until the expiration of the contract period of lump-sum savings: |
| (a) | When the contract period is three years: An amount of money equivalent to 2.7/100 of the average balance of the principal placed in the savings accounts during the period of savings (hereinafter referred to as "average balance"); |
| (b) | When the contract period is five years: An amount of money equivalent to 7.5/100 of the average balance; |
| 2. | Where low-income farmers and fishermen maintain their savings accounts until the expiration of the contract period of lump-sum savings: |
| (a) | When the contract period is three years: An amount of money obtained by adding the amount equivalent to 6.3/100 of the average balance to the savings incentive provided for in subparagraph 1 (a); |
| (b) | When the contract period is five years: An amount of money obtained by adding the amount equivalent to 16.5/100 of the average balance to the savings incentive provided for in subparagraph 1 (b); |
| 3. | Where a farmer or fisherman terminates a lump-sum savings contract halfway: |
| (a) | When he/she has maintained his/her savings account for at least three years: An amount of money equivalent to 0.54/100 of the average balance; |
| (b) | When he/she has maintained his/her savings account for at least four years: An amount of money equivalent to 3.36/100 of the average balance; |
| 3-2. | Where a low-income farmer or fisherman terminates a lump-sum savings contract halfway: |
| (a) | When he/she has maintained his/her savings account for at least three years: An amount of money equivalent to 3.75/100 of the average balance; |
| (b) | When he/she has maintained his/her savings account for at least four years: An amount of money equivalent to 6.8/100 of the average balance; |
| (a) | When a farmer or fisherman terminates a lump-sum savings contract halfway: |
| i) | When the period of contract is three years: An amount of money equivalent to 2.7/100 of the average balance; |
| ii) | When the period of contract is five years: An amount of money equivalent to 7.5/100 of the average balance; |
| (b) | When a low-income farmer or fisherman terminates a lump-sum savings contract halfway: |
| i) | When the period of contract is three years: An amount of money calculated by adding 6.3/100 of the average balance to the savings incentive under subparagraph 1 (a); |
| ii) | When the period of contract is five years: An amount of money calculated by adding 16.5/100 of the average balance to the savings incentive under subparagraph 1 (b). |
[This Article Wholly Amended by Presidential Decree No. 24286, Dec. 28, 2012]
| Article 12 (Computation of Savings Incentive and Interest Following Increase of Regular Contribution to Savings) |
| (1) | Where a regular contribution to the savings increases pursuant to Article 4 (4), the savings incentive and interest on the increased amount of contribution to the savings shall be computed in accordance with the following classification: <Amended by Presidential Decree No. 25458, Jul. 14, 2014> |
| 1. | Where the lump-sum saving contract is terminated halfway: The amount of savings incentive shall be computed in accordance with the standards provided for in subparagraph 3 or 3-2 of Article 11, and the amount of interest shall be computed by applying the interest rate for early termination; |
| 2. | Where the lump-sum saving contract is maintained until the expiration of its contract period: The amount of a savings incentive shall be computed in accordance with the standards provided for in subparagraph 4 of Article 11, and the amount of interest shall be computed by applying the interest rate for early termination. |
| (2) | In computing the savings incentive and interest under paragraph (1), the starting point of reckoning them shall be the date on which the regular contribution to the savings is increased. |
[This Article Wholly Amended by Presidential Decree No. 24286, Dec. 28, 2012]
| Article 13 (Establishment of Account for Savings Incentive Fund for Lump-Sum Savings of Farming and Fishing Households) |
The Financial Services Commission shall establish an account for the Savings Incentive Fund for Lump-Sum Savings of Farming and Fishing Households at the Bank of Korea to clarify the revenue and expenditure of the fund.
[This Article Wholly Amended by Presidential Decree No. 24286, Dec. 28, 2012]
| Article 14 (Operation and Management of Fund) |
Matters necessary for the operation and management of the fund and the payment of the savings incentive shall be prescribed by the Governor of the Bank of Korea, subject to the approval from the Financial Services Commission.
[This Article Wholly Amended by Presidential Decree No. 24286, Dec. 28, 2012]
| Article 15 (Fiscal Year of Fund) |
The fiscal year of the Fund shall be from January 1 to December 31 each year.
[This Article Wholly Amended by Presidential Decree No. 24286, Dec. 28, 2012]
| Article 16 (Duties of Accounting Institution of Fund) |
The duties of the accounting organ shall be as follows:
| 1. | A fund revenue collecting officer: Affairs concerning the revenue collection of the Fund; |
| 2. | A fund financial officer: Affairs concerning encumbrances and assets management of the Fund; |
| 3. | A fund expenditure officer: Affairs concerning the expenditure of the Fund; |
| 4. | A fund accounting public official: Affairs concerning the custody and accounting of the national funds, custody funds and securities. |
[This Article Wholly Amended by Presidential Decree No. 24286, Dec. 28, 2012]
| Article 17 (Compensation for Losses) |
Where the Fund compensates the savings institutions for losses incurred under Article 13 of the Act, matters necessary therefor shall be separately prescribed by the Financial Services Commission. [This Article Wholly Amended by Presidential Decree No. 24286, Dec. 28, 2012]
| Article 18 Deleted. <by Presidential Decree No. 22037, Feb. 18, 2010> |
| Article 19 (Presentation of Identification) |
[This Article Wholly Amended by Presidential Decree No. 24286, Dec. 28, 2012]
| Article 20 (Entrustment of Authority) |
| (2) | The Governor of Financial Supervisory Service shall report a plan for conducting affairs entrusted pursuant to paragraph (1) and the results thereof to the Financial Services Commission, as prescribed and announced by the Financial Services Commission. |
[This Article Newly Inserted by Presidential Decree No. 25458, Jul. 14, 2014]
| Article 21 (Procedures for Withdrawal of Savings Incentives) |
| (1) | When the Financial Services Commission intends to recover a savings incentive pursuant to Article 20 (1) of the Act, it shall give notice thereof to the relevant farmer or fisherman in writing, specifying the following matters. In this case, the deadline to repay the incentives shall be at least 30 days from the date of notice: |
| 2. | Amount to be recovered; |
| 3. | Deadline to repay the incentives; |
| 4. | Agency to which the repayment is to be made. |
| (2) | The relevant farmer or fisherman who receives notice under paragraph (1) shall pay the amount to be recovered to an agency to which the repayment is to be made by the deadline to repay the incentives. |
| (3) | Where the relevant farmer or fisherman who receives notice under paragraph (1) fails to pay the amount to be recovered by the deadline to repay the incentives, the Financial Services Commission shall urge him/her to pay such amount within a fixed period of no less than 15 days. |
[This Article Newly Inserted by Presidential Decree No. 25458, Jul. 14, 2014]
ADDENDA
| (1) | (Enforcement Date) This Decree shall enter into force on the date of its promulgation. |
| (2) | (Transitional Measure concerning Payment of Savings Incentives) The savings incentive for lump-sum savings for which farmers and fishermen, etc. entered into a contract with local agricultural cooperatives, fisheries cooperative by region and by types of business or with fishing village associations before this Decree enters into force, shall be paid according to the payment rate at the time of contract. |
ADDENDA <Presidential Decree No. 12712, May 26, 1989>
| (1) | (Enforcement Date) This Decree shall enter into force on June 1, 1989. |
| (2) | (Transitional Measures concerning Payment of Savings Incentives) The payment rate of the savings incentive to be paid for lump-sum savings entered into contract prior to this Decree entering into force shall be subject to the payment rate at the time of contract. |
ADDENDA <Presidential Decree No. 14438, Dec. 23, 1994>
Article 1 (Enforcement Date)
This Decree shall enter into force on the date of its promulgation.
Articles 2 through 5 Omitted.
ADDENDUM <Presidential Decree No. 14668, Jun. 17, 1995>
This Decree shall enter into force on the date of its promulgation.
ADDENDA <Presidential Decree No. 17052, Dec. 29, 2000>
Article 1 (Enforcement Date)
This Decree shall enter into force on January 1, 2001. (Proviso Omitted.)
Articles 2 through 6 Omitted.
ADDENDA <Presidential Decree No. 17824, Dec. 30, 2002>
Article 1 (Enforcement Date)
This Decree shall enter into force on January 1, 2003. (Proviso Omitted.)
Articles 2 through 6 Omitted.
ADDENDA <Presidential Decree No. 20653, Feb. 29, 2008>
Article 1 (Enforcement Date)
This Decree shall enter into force on the date of its promulgation: Provided, That the amended parts of Presidential Decrees promulgated before this Decree enters into force but enforcement dates of which have not yet arrived among Presidential Decrees to be amended under Article 2 of the Addenda shall enter into force on the respective enforcement dates of relevant Presidential Decrees.
Article 2 Omitted.
ADDENDA <Presidential Decree No. 22037, Feb. 18, 2010>
Article 1 (Enforcement Date)
This Decree shall enter into force on the date of its promulgation: Provided, That the amended provision of Article 106 (7) shall enter into force on July 1, 2010 and the amended provision of Article 104-7 (1) on January 1, 2011.
Articles 2 through 27 Omitted.
ADDENDUM <Presidential Decree No. 24286, Dec. 28, 2012>
This Decree shall enter into force on the date of its promulgation.
ADDENDA <Presidential Decree No. 25458, Jul. 14, 2014>
Article 1 (Enforcement Date)
This Decree shall enter into force on July 15, 2014.
Article 2 (Applicability to Payment of Savings Incentives, etc.)
The amended provisions of subparagraphs 3, 3-2 and 4 of Article 11 and Article 12 (1) 1 shall also apply to cases where a lump-sum savings contract has been concluded before this Decree enters into force: Provided, That where the amount of a savings incentive paid pursuant to the amended provision of subparagraph 4 of Article 11 is less than the amount of a savings incentive paid pursuant to the former provision, the former provision shall apply.
ADDENDA <Presidential Decree No. 27924, Feb. 28, 2017>
Article 1 (Enforcement Date)
This Decree shall enter into force on the date of its promulgation.
Article 2 (Transitional Measures concerning Maximum Annual Contribution to Lump-sum Savings)
Notwithstanding the amended provisions of Articles 4 (1) and 11, the former provisions shall apply to the maximum annual contribution to and payment rates of savings incentives of lump-sum savings agreed before this Decree enters into force.