ENFORCEMENT DECREE OF THE STATE BOND ACT
Wholly Amended by Presidential Decree No. 14079, Dec. 31, 1993
Amended by Presidential Decree No. 14438, Dec. 23, 1994
Presidential Decree No. 14447, Dec. 23, 1994
Presidential Decree No. 15750, Apr. 1, 1998
Presidential Decree No. 15926, Nov. 13, 1998
Presidential Decree No. 16771, Apr. 1, 2000
Presidential Decree No. 20720, Feb. 29, 2008
Presidential Decree No. 26320, jun. 22, 2015
The purpose of this Decree is to prescribe matters delegated by the State Bond Act (hereinafter referred to as the "Act") and matters necessary for the enforcement of said Act.
| Article 2 (Request for Issuance of Government Bonds) |
Where the head of a central administrative agency requests the Minister of Strategy and Finance to issue any of the Government bonds referred to in Article 4 (1) 2 of the Act pursuant to Article 5 (4) of the Act, he/she shall specify the following matters: <Amended by Presidential Decree No. 14438, Dec. 23, 1994; Presidential Decree No. 15926, Nov. 13, 1998; Presidential Decree No. 16771, Apr. 1, 2000; Presidential Decree No. 20720, Feb. 29, 2008; Presidential Decree No. 26320, Jun. 22, 2015> | 1. | Ceiling amount of issuance; |
| 2. | Requested amount of issuance; |
| 5. | Plan for repaying principal and interest; |
| 6. | Other necessary matters concerning the issuance of the Government bond. |
| Article 3 (Issue Date of Government Bonds) |
| (1) | Where Government bonds are registered pursuant to the main sentence of Article 8 (1) of the Act, the registration date of the relevant Government bonds shall be construed as the issue date of the Government bonds. |
| (2) | If the issue date of Government bonds is not stated in the instruments of the Government bonds where the instruments thereof are issued pursuant to the proviso to Article 8 (1) of the Act, the issue date or delivery date of the relevant instruments shall be construed as the issue date of the Government bonds. |
| (3) | Notwithstanding paragraphs (1) and (2), the issue dates of fungible Korea Treasury Bonds issued or reissued pursuant to Article 7 of the Act shall be determined and publicly notified by the Minister of Strategy and Finance. |
[This Article Wholly Amended by Presidential Decree No. 26320, Jun. 22, 2015]
| Article 4 (Matters to Be Specified in Government Bonds) |
| (1) | Each Government bond shall specify the following matters: <Amended by Presidential Decree No. 26320, Jun. 22, 2015> |
| 1. | Name of the Government bond; |
| 2. | Ground for issuing the Government bond; |
| 3. | Number of issue order or symbol, and number of the Government bond; |
| 4. | Face value of the Government bond; |
| 5. | Interest rate of the Government bond; |
| 6. | Method and time for repaying principal and interest; |
| 7. | Address and name of the creditor (limited to where Government bonds issued in inscribed form); |
| 8. | Other necessary matters. |
| (2) | Where the name of a Government bond is specified in accordance with paragraph (1), the name of the Government bond issued pursuant to Article 4 (1) 1 of the Act shall be the "Korea Treasury Bond". <Amended by Presidential Decree No. 15926, Nov. 13, 1998; Presidential Decree No. 26320, Jun. 22, 2015> |
| Article 5 (Issuance, etc. of Inscribed Instrument of Registered Government Bonds) |
| (1) | If requested by a creditor, a Government bond instrument may be issued in inscribed form for a Government bond registered under Article 8 of the Act (hereinafter referred to as "registered Government bond"). <Amended by Presidential Decree No. 26320, Jun. 22, 2015> |
| (2) | Where a registered Government bond issued under paragraph (1) is transferred, it shall not be enforceable against the Government or any third party unless the address and name of the acquirer are stated on the relevant Government bond instrument and entered in the register of Government bonds. <Amended by Presidential Decree No. 26320, Jun. 22, 2015> |
| Article 6 (Conversion of Government Bonds Issued in Inscribed Form or Bearer Form) |
The owner of a Government bond may request to convert a Government bond issued in inscribed form to a Government bond in bearer form or a Government bond issued in bearer form to a Government bond in inscribed form: Provided, That this shall not apply to a Government bond designated to remain in inscribed or bearer.
| Article 7 (Request for Exchange of Government Bonds) |
| (1) | If a Government bond becomes contaminated or defaced, the holder may request to exchange the instrument. |
| (2) | A person who intends to make the request pursuant to paragraph (1) shall submit a written request bearing his/her signature and seal, to the Bank of Korea or an institution that handles affairs related to Government bonds under any other statute (hereinafter referred to as "institution for handling Government bond affairs") along with the contaminated or defaced Government bond. <Amended by Presidential Decree No. 26320, Jun. 22, 2015> |
| Article 8 (Payment of Amount of Defective Portion of Interest Coupon) |
| (1) | In requesting the exchange of a contaminated or defaced Government bond under Article 7, if there is any defect in interest coupon attached thereto, the amount corresponding to the defective portion shall be paid in cash to an institution for handling Government bond affairs. |
| (2) | The holder of the defective interest coupon referred to in paragraph (1) may claim payment of the amount paid in exchange for the relevant interest coupon. |
| Article 9 (Reporting on Destruction or Loss of Government Bonds or Interest Coupons) |
| (1) | A person who intends to report destruction or loss of Government bonds or interest coupons shall file a report thereon stating the following matters with an institution for handling Government bond affairs. The same shall also apply where the person finds such again: |
| 1. | Names of the Government bonds; |
| 2. | Types of face value of the Government bond; |
| 3. | Quantity of the Government bonds or interest coupons; |
| 4. | Symbols and serial numbers of the Government bonds or interest coupons; |
| 5. | Time to pay interest stated on the interest coupons; |
| 6. | Address and name of the creditor (limited to cases of inscribed Government bonds); |
| 8. | Address and name of the reporter. |
| (2) | A person who has filed a report under paragraph (1) shall submit a document substantiating that he/she has applied for a public summons or has made a public announcement, within ten days after filing the report: Provided, That this shall not apply where the address and name of the creditor are entered in the register of Government bonds. |
| (3) | For Government bonds or interest coupons which were reported as destroyed or lost under paragraphs (1) and (2), no principal shall be repaid and no interest shall be paid even if the repayment date of the principal or the payment date of the interest arrives: Provided, That the foregoing shall not apply where a request is made under Article 22 (1). |
| Article 10 (Request for Issuance of Substitute Instruments or Substitute Interest Coupons) |
| (1) | A person who has reported a report on the destruction or loss of an inscribed Government bond or interest coupon thereof, the address and name of the creditor of which are entered in the register of Government bonds, may request the issuance of a substitute Government bond or substitute interest coupon, if two months lapse after the date of report. In such cases, no substitute Government bond or substitute interest coupon shall be issued after the arrival of the repayment date of principal or after the commencement of the time to pay interest. |
| (2) | A person who intends to file a request pursuant to paragraph (1) shall submit a written request bearing his/her signature and seal and stating the matters set forth in subparagraph 1 through 7 of Article 9 to an institution for handling Government bond affairs. |
| Article 11 (Request for Split or Consolidation of Government Bonds) |
| (1) | The holder of Government bonds may file a request for splitting or consolidating the Government bonds based on the types of face value: Provided, That no request for splitting or consolidating shall be made in cases of Government bonds, whose names, numbers of issue order, symbols, years of issue, maturity, and names of persons stated on the inscribed Government bonds are different from each other. |
| (2) | A person who intends to file a request referred to in paragraph (1) shall submit a written request bearing his/her signature and seal, to the institution for handling Government bond affairs, along with such relevant Government bonds. |
| Article 12 (Return of Government Bonds or Interest Coupons which have Lost their Validity) |
A person who holds any Government bond or interest coupon which has become invalid shall submit it immediately to the institution for handling Government bond affairs.
| Article 13 (Affairs related to Registration of Government Bonds) |
| (1) | Affairs related to the registration of Government bonds shall be handled by the principal office (including the main office and other offices corresponding thereto; hereinafter the same shall apply) of the institution for handling Government bond affairs: Provided, That where the head of the institution for handling Government bond affairs deems it necessary, some of such affairs may be handled by a branch office (including any branch office and any other office corresponding thereto; hereinafter the same shall apply) of the institution for handling Government bond affairs. |
| (2) | The register of Government bonds shall be classified into A-type and B-type, and Government bonds which have been issued without instruments shall be registered in the A-type register, while Government bonds issued in inscribed form shall be registered in the B-type register. |
| (3) | The register of Government bonds shall be kept at the head office of an institution for handling Government bond affairs, and its copy shall be kept at a branch office designated by the head of the institution for handling Government bond affairs. |
| (4) | The register of Government bonds shall be prepared by dividing accounts by name and number of issue order, or by symbol of Government bonds. |
| Article 14 (Request for Registration of Government Bonds) |
| (1) | Where the subscriber or underwriter of a Government bond intends to request registration of the Government bond, he/she shall submit a written request bearing his/her signature and seal, to the institution for handling Government bond affairs after making decision on solicitation or when underwriting it. |
| (2) | When the owner of a Government bond intends to request registration of the Government bond, he/she shall submit a written request bearing his/her signature and seal, to the institution for handling Government bond affairs, along with the relevant Government bond. |
| Article 15 (Request for Modification of Registered Matters of Registered Government Bonds) |
| (1) | A person who intends to request modification of any registered matter of a registered Government bond shall submit a written request bearing his/her signature and seal, to the institution for handling Government bond affairs. |
| (2) | In cases falling under paragraph (1), a person requesting modification of registered amount or of the name of the person stated on a Government bond shall submit a document substantiating the ground for modifying registered matters: Provided, That this shall not apply, if both party to the modification affix their signatures and seals on a written request where modification of registered matters is requested due to transfer of rights. |
| Article 16 (Request for Cancellation of Registration of Government Bonds) |
A person who intends to be issued the instrument of a Government bond after cancelling the registration of the Government bond registered in the register of Government bonds shall submit a written request bearing his/her signature and seal, to the institution for handling Government bond affairs.
| Article 17 (Establishing Pledge Right on Registered Government Bonds) |
| (1) | Persons who intend to request a pledge right to be established on a registered Government bond or request the registration of a sub-pledge shall submit a written request to the institution for handling Government bond affairs, on which the signatures and seals of both of the relevant parties are affixed. |
| (2) | Paragraph (1) shall apply mutatis mutandis where a change in or cancellation of registration of a pledge right on a registered Government bond is requested: Provided, That in cases of a request for cancellation, a document substantiating the cause of cancellation may be attached; or when the pledgee requests the cancellation, the requester alone may request the cancellation by submitting a written request bearing his/her signature and seal. |
| Article 18 (Request for Registration of Collateral other than Pledge Right) |
| (1) | A person who intends to request Government bonds to be registered for collateral and not for a pledge right under any statute, shall submit a written request bearing his/her signature and seal, to the institution for handling Government bond affairs. |
| (2) | Paragraph (1) shall apply mutatis mutandis where any modification or cancellation of registration of collateral other than a pledge right is requested: Provided, That, except where a pledge right holder requests cancellation, documents substantiating the modification or cancellation shall be attached or both parties thereto shall affix their signatures and seals on the relevant written request. |
| Article 19 (Restriction on Amount of Registration) |
The amount of a newly registered Government bond, modification of such registered amount; registered amount for a pledge or any other collateral; or cancellation of such registered amount shall be the relevant face value or partial face value of such Government bond.
| Article 20 (Public Notice on Suspension of Registration or of Cancellation of Registration) |
When the Minister of Strategy and Finance suspends registration of Government bonds or suspends cancellation of registration thereof pursuant to Article 10 of the Act, he/she shall publicly notify such fact and relevant suspension period. [This Article Wholly Amended by Presidential Decree No. 26320, Jun. 22, 2015]
| Article 21 (Repayment of Principal and Payment of Interest) |
| (1) | The principal of and interest on a Government bond in bearer form or interest coupon thereof shall be paid to the holder of the relevant Government bond or interest coupon in exchange for the relevant instrument or interest coupon. |
| (2) | The principal of and interest on a Government bond in inscribed form or interest coupon thereof shall be paid to the person whose name is inscribed or his/her proxy in exchange for the relevant instrument or interest coupon. |
| (3) | The principal of and interest on a registered Government bond shall be paid to the person whose name is inscribed or his/her proxy in exchange for the receipt: Provided, That in cases of Government bonds issued in inscribed form pursuant to Article 5 (1), they shall be paid in exchange for the relevant instruments or interest coupons. |
| (4) | Where the principal of and interest on a Government bond are to be paid simultaneously, the interest shall be paid in exchange for the Government bond when the principal is paid. |
| (5) | In cases falling under paragraphs (2) and (3), a person who holds a receipt prepared by the person whose name is inscribed and a person who makes a request by a seal predeclared, shall be construed as the person whose name is inscribed or his/her proxy. |
| Article 22 (Repayment of Principal of, or Payment of Interest on, Destroyed or Lost Government Bonds, etc.) |
| (1) | A person who intends to request repayment of principal of, or payment of interest on, destroyed or lost Government bonds or interest coupons shall submit a written request, stating the following matters and bearing his/her signature and seal, to the institution for handling Government bond affairs: |
| 1. | Names of the Government bonds; |
| 2. | Types of face value of the Government bonds; |
| 3. | Quantity of the Government bonds or interest coupons; |
| 4. | Symbols and serial numbers of the Government bonds or interest coupons; |
| 5. | Address and name of the creditor (limited to cases of inscribed Government bonds); |
| 6. | Amount of principal or interest to be received; |
| 7. | Repayment date of principal or time to pay interest; |
| 8. | Date of report on destruction or loss. |
| (2) | A person who intends to file a request under paragraph (1) shall be subject to a nullification judgment beforehand regarding a destroyed or lost Government bond or interest coupon. |
| (3) | Notwithstanding paragraph (2), a person whose inscribed Government bond registered in the register of Government bonds or the interest coupon thereof is destroyed or lost may file a request under paragraph (1) after the lapse of two months from the date of report on the destruction or loss. |
| (4) | The principal of or interest on a destroyed or lost Government bond or interest coupon shall be paid in exchange for the receipt. |
| Article 23 (Repayment Date of Principal) |
| (1) | The repayment date of Government bonds shall be as determined at the time they are issued: Provided, That where repaying the whole amount of the principal of Government bonds before the expiration of the repayment period, the Minister of Strategy and Finance shall determine and publicly notify the repayment date. <Amended by Presidential Decree No. 14438, Dec. 23, 1994; Presidential Decree No. 15926, Nov. 13, 1998; Presidential Decree No. 20720, Feb. 29, 2008> |
| (2) | Where it is intended to repay part of the principal of the Government bonds by lottery before the expiration of the repayment period, the Minister of Strategy and Finance shall determine and publicly notify the amount to be repaid, repayment date, lottery draw date, method of drawing lottery, etc. <Amended by Presidential Decree No. 14438, Dec. 23, 1994; Presidential Decree No. 15926, Nov. 13, 1998; Presidential Decree No. 20720, Feb. 29, 2008> |
| (3) | Lottery under paragraph (2) shall be drawn at the head office of the institution for handling Government bond affairs. |
| Article 24 (Payment Date of Interest) |
The payment date of interest on a Government bond shall be as determined when the Government bond are issued: Provided, That in cases of repayment of the principal before arrival of the payment date of the interest, the interest for the relevant payment term shall be paid simultaneously with the principal.
| Article 25 (Calculation of Interest) |
Interest to be paid where the principal of a Government bond is to be repaid shall be calculated for the period from the issue date to the date immediately before the repayment date of the principal: Provided, That if the term for payment of interest is set as a month, interest for the last payment term shall be calculated for the whole month in which the repayment date of the principal falls. <Amended by Presidential Decree No. 26320, Jun. 22, 2015>
| Articles 26 through 31 Deleted. <by Presidential Decree No. 16771, Apr. 1, 2000> |
| Article 32 (Establishment of Government Bond Accounts) |
In order to manage accounting of revenues accrued from the issuance of Government bonds and funds for repayment of the principal of and interest on Government bonds, the head of the institution for handling Government bond affairs shall establish issued fund accounts and repayment fund accounts by the name of each Government bond. <Amended by Presidential Decree No. 26320, Jun. 22, 2015>
| Article 33 (Keeping of Books) |
| (1) | The Minister of Strategy and Finance shall keep books on issuance of Government bonds and repayment of principal and interest and record necessary matters therein. <Amended by Presidential Decree No. 14438, Dec. 23, 1994; Presidential Decree No. 15926, Nov. 13, 1998; Presidential Decree No. 20720, Feb. 29, 2008> |
| (2) | In cases falling under paragraph (1), the amount of issued Government bonds and the amount of repaid principal and interest shall be recorded by classifying into the number of issue order by the name of each Government bond: Provided, That the Government bonds not classified into the number of issue order shall be recorded as of the last date of each month of the relevant year. |
| Article 34 (Request for Provision of Materials) |
| 7. | Any other institution determined and publicly notified by the Minister of Strategy and Finance as necessary for handling affairs related to Government bonds. |
[This Article Newly Inserted by Presidential Decree No. 26320, Jun. 22, 2015]
ADDENDUM
This Decree shall enter into force on January 1, 2994.
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.
ADDENDA <Presidential Decree No. 14447, Dec. 23, 1994>
Article 1 (Enforcement Date)
This Decree shall enter into force on the date of its promulgation. (Proviso Omitted.)
Articles 2 through 5 Omitted.
ADDENDA <Presidential Decree No. 15750, Apr. 1, 1998>
Article 1 (Enforcement Date)
This Decree shall enter into force on April 1, 1998.
Articles 2 through 4 Omitted.
ADDENDUM <Presidential Decree No. 15926, Nov. 13, 1998>
| (1) | (Enforcement Date) This Decree shall enter into force on the date of its promulgation. |
| (2) | (Transitional Measures) Public Debt Management Fund bonds issued under the former provisions, as at the time this Decree enters into force, shall be deemed Government bonds referred to in the amended provisions of Article 4 (2). |
ADDENDUM <Presidential Decree No. 16771, Apr. 1, 2000>
| (1) | (Enforcement Date) This Decree shall enter into force on the date of its promulgation. |
ADDENDA <Presidential Decree No. 20720, Feb. 29, 2008>
Article 1 (Enforcement Date)
This Decree shall enter into force on the date of its promulgation: Provided, That the amended provisions of the Presidential Decrees under Article 8 of this Addenda, which were promulgated before this Decree enters into force but the enforcement dates of which have not yet arrived, shall respectively enter into force on the enforcement dates of such Presidential Decrees.
Articles 2 through 8 Omitted.
ADDENDA <Presidential Decree No. 26320, Jun. 22, 2015>
Article 1 (Enforcement Date)
This Decree shall enter into force on July 1, 2015.
Article 2 (Transitional Measures concerning the Issue Dates of Government Bonds)
Notwithstanding the amended provisions of Article 3 (2), the issue dates of Government bonds issued before this Decree enters into force shall be governed by the former provisions. Article 3 (Transitional Measures concerning Calculation of Interest)
Notwithstanding the amended provisions of the main sentence of Article 25, calculation of interest on Government bonds issued before this Decree enters into force shall be governed by the former provisions.