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ENFORCEMENT DECREE OF THE TRADE INSURANCE ACT

Presidential Decree No. 22220, jun. 28, 2010

Amended by Presidential Decree No. 24442, Mar. 23, 2013

Presidential Decree No. 28212, Jul. 26, 2017

 Article 1 (Purpose)
The purpose of this Decree is to prescribe matters delegated by the Trade Insurance Act, and matters necessary for the enforcement thereof.
[This Article Wholly Amended by Presidential Decree No. 22220, Jun. 28, 2010]
 Article 2 Deleted. <by Presidential Decree No. 16836, Jun. 7, 2000>
 Article 3 (Scope of Small and Medium Enterprises)
"Those prescribed by Presidential Decree" in subparagraph 2 of Article 8-3 of the Trade Insurance Act (hereinafter referred to as the "Act") means a person deemed necessary by the Minister of Trade, Industry and Energy, from among persons whose principal business purpose is to support trade activities of small and medium enterprises. <Amended by Presidential Decree No. 24442, Mar. 23, 2013>
[This Article Wholly Amended by Presidential Decree No. 22220, Jun. 28, 2010]
 Article 3-2 (Methods of Issuing Bonds)
Trade Insurance Fund Bonds under Article 34-2 of the Act (hereinafter referred to as "bonds") shall be issued by means of offering, underwriting or public sale.
[This Article Newly Inserted by Presidential Decree No. 22220, Jun. 28, 2010]
 Article 3-3 (Form of Bonds)
Bonds shall be issued in a bearer form: Provided, that upon request from a subscriber or holder, bonds in a bearer form may be issued in a registered form, or vice versa.
[This Article Newly Inserted by Presidential Decree No. 22220, Jun. 28, 2010]
 Article 3-4 (Application for Subscription in Offering of Bonds)
(1) A person who intends to submit an application for subscription in the offering of bonds shall write down the number of bonds he/she intends to acquire for each type of bonds and his/her address in two copies of an application and then affix his/her name and signature thereto.
(2) An application for subscription of bonds shall contain the following:
1. The name, the Korea Trade Insurance Corporation under Article 37 of the Act (hereinafter referred to as the "Corporation");
2. The total amount of bonds to be issued;
3. The face value of bonds by type;
4. The interest rate on bonds;
5. The methods and deadline for repayment of principal;
6. The methods and deadline for payment of interest;
7. The issue price or minimum value of bonds;
8. If any bond is not repaid, the total amount thereof;
9. If there is any person entrusted with the offering of bonds, the name or trade name and the address of the person.
(3) Where bonds are issued with the minimum value set, applicants for subscription shall write down the subscription value on the application for subscription.
[This Article Newly Inserted by Presidential Decree No. 22220, Jun. 28, 2010]
 Article 3-5 (Firm Commitment Underwriting, etc. of Bonds)
Article 3-4 shall not apply where the total amount of issued bonds is underwritten under a contract. Where a person entrusted with the offering of bonds underwrites some of the bonds, the foregoing shall also apply to the bonds underwritten.
[This Article Newly Inserted by Presidential Decree No. 22220, Jun. 28, 2010]
 Article 3-6 (Total Amount of Bonds to be Issued)
Even if the total amount of subscription of bonds falls short of the total amount of bonds to be issued, which is indicated in an application for bonds, the bonds may be issued. In such cases, such fact shall be indicated in the application for bonds and the total amount of subscription for bonds shall be the total amount of bonds to be issued.
[This Article Newly Inserted by Presidential Decree No. 22220, Jun. 28, 2010]
 Article 3-7 (Payment of Value of Bonds Underwritten)
(1) The Corporation shall have subscribers pay the total amount of bonds underwritten immediately after the subscription for bonds is completed.
(2) The person entrusted with the offering of bonds may conduct the activities under paragraph (1) under his/her name for the benefit of the Corporation.
[This Article Newly Inserted by Presidential Decree No. 22220, Jun. 28, 2010]
 Article 3-8 (Timing of Issuing Bonds)
Where the total amount of bonds are not paid, the bonds shall not be issued: Provided, That the same shall not apply where the bonds are issued by means of public sales under Article 3-10.
[This Article Newly Inserted by Presidential Decree No. 22220, Jun. 28, 2010]
 Article 3-9 (Information Required on Bonds)
The following information shall be stated on bonds and the President of the Corporation (hereinafter referred to as the "President") shall affix his/her name and seal thereto:
1. Serial number of bonds;
2. Issuance date of bonds;
3. Matters under Article 3-4 (2) 1 through 6.
[This Article Newly Inserted by Presidential Decree No. 22220, Jun. 28, 2010]
 Article 3-10 (Issuance through Public Sale of Bonds)
(1) The Corporation shall, when issuing bonds through public sale, publicly announce the period of sale and the matters set forth under Article 3-4 (2) 1 through 7.
(2) In the case of bond issuance under paragraph (1), an application for subscription to bonds under Article 3-4 shall not be prepared.
(3) The following information shall be stated on the bonds issued in accordance with paragraph (1):
1. Serial number of bonds;
2. Issuance date of bonds;
3. Matter under Article 3-4 (2) 1 and subparagraph 3 through 6 of the same paragraph.
[This Article Newly Inserted by Presidential Decree No. 22220, Jun. 28, 2010]
 Article 3-11 (Bond Ledger)
(1) The Corporation shall keep a bond ledger containing the following information at its principal office:
1. Number of bonds by type and serial numbers thereof;
2. Issue date of bonds;
3. Information under Article 3-4 (2) 2 through 6.
(2) In cases of bonds in a bearer form, the following information shall be included in a bond ledger in addition to the information under each subparagraph of paragraph (1):
1. Name and address of the bondholder;
2. Acquisition date of bonds.
(3) A person who has rights to bonds may request perusal of a bond ledger at any time during the business hours of the Corporation.
[This Article Newly Inserted by Presidential Decree No. 22220, Jun. 28, 2010]
 Article 3-12 (Registered Bonds)
(1) The effect of transfer of registered bonds shall not be asserted against the Corporation or any other third party, if the name and address of the acquirer is not specified in the bond ledger.
(2) Where registered bonds are used as pledge, if the name and address of the pledgee is not specified in the bond ledger, the effect of the pledge shall not be asserted against the Corporation or any other third party.
(3) If the pledge is created pursuant to paragraph (2), the Corporation shall indicate such fact on the relevant bonds.
[This Article Newly Inserted by Presidential Decree No. 22220, Jun. 28, 2010]
 Article 3-13 (Purchase and Retirement of Bonds)
The Corporation may purchase bonds and retire them within the extent that does not undermine the performance of its affairs under Article 53 of the Act.
[This Article Newly Inserted by Presidential Decree No. 22220, Jun. 28, 2010]
 Article 3-14 (Defects on Rights)
(1) Where bonds with rights in a bearer form are repaid, if any defect on rights exists, the amount equivalent to the rights shall be exempt from the repayment amount.
(2) The holder of rights under paragraph (1) may request for the payment of the exempt amount in exchange of the rights at any time.
[This Article Newly Inserted by Presidential Decree No. 22220, Jun. 28, 2010]
 Article 3-15 (Notice, etc. to Subscribers to Bonds)
(1) Notice or preemptive notice to a subscriber or a right holder before the issuance of bonds shall be sent to the address specified in the application for subscription of bonds: Provided, That if any other address is notified to the Corporation, the notice or preemptive notice shall be sent to such address.
(2) Notice or preemptive notice to a holder of registered bonds shall be sent to the address specified in the bond ledger: Provided, That if any other address is notified to the Corporation, the notice or preemptive notice shall be sent to such address.
(3) Notice or preemptive notice to a holder of bonds in a bearer form shall be made by means of public announcement: Provided, That if the address is known, the notice or preemptive notice may be sent to such address.
[This Article Newly Inserted by Presidential Decree No. 22220, Jun. 28, 2010]
 Article 4 (Registration of Establishment)
The registration of establishment of the Corporation shall be made within two weeks from the date on which the Minister of Trade, Industry and Energy grants authorization. <Amended by Presidential Decree No. 24442, Mar. 23, 2013>
[This Article Wholly Amended by Presidential Decree No. 22220, Jun. 28, 2010]
 Article 5 (Registration of Establishment of New Branch Office or Agency)
(1) The Corporation shall, when it establishes a new branch office or agency, register relevant matters in accordance with the following classification:
1. The name and location of the branch office or agency established, within two weeks, at the location of its principal office;
2. The matters under each subparagraph of Article 40 (2) of the Act and the name and location of the branch office or agency established, within three weeks, at the location of the branch office or agency established.
(2) Where a new branch office or agency is established in an area under the jurisdiction of another registry, only the name and location of the branch office or agency shall be registered within two weeks.
[This Article Wholly Amended by Presidential Decree No. 22220, Jun. 28, 2010]
 Article 6 (Registration of Relocation)
(1) Where the Corporation relocates its principal office, branch office or agency to an area under the jurisdiction of another registry, the Corporation shall register relevant matters in accordance with the following classification:
1. The intent to relocate, within two weeks, at the former location;
2. The matters under each subparagraph of Article 40 (2) of the Act and the name and location of the branch office or agency, within three weeks, at the new location.
(2) If the principal office, branch office or agency is relocated within the area under the jurisdiction of the same registry, only the intent to relocate shall be registered within two weeks.
[This Article Wholly Amended by Presidential Decree No. 22220, Jun. 28, 2010]
 Article 7 (Registration of Change)
In cases of any change in the matters prescribed in the subparagraphs of Article 40 (2) of the Act or the matters registered under Article 5 (1) of this Decree, the Corporation shall register such change within two weeks at the location of its principal office, and within three weeks at the location of its branch office or agency.
[This Article Wholly Amended by Presidential Decree No. 22220, Jun. 28, 2010]
 Article 8 (Registration of Appointment of an Agent)
The President shall, when he/she has appointed his/her agent, register the following matters within two weeks at the location of the principal office, branch office, or agency to which the agent is assigned. The same shall also apply to any modification of registered matters:
1. Name and address of the agent;
2. Name and location of the principal office, branch office or agency to which the agent is assigned;
3. If there is any limitation in the authority of the agent, the details thereof.
[This Article Wholly Amended by Presidential Decree No. 22220, Jun. 28, 2010]
 Article 9 (Reckoning Registration Period)
With respect to matters to be registered by the Corporation and requiring authorization or approval by the Minister of Trade, Industry and Energy, the registration period shall be calculated from the date on which the written authorization or approval arrives. <Amended by Presidential Decree No. 24442, Mar. 23, 2013>
[This Article Wholly Amended by Presidential Decree No. 22220, Jun. 28, 2010]
 Article 10 (Competent Registry)
The competent registry for Corporation’s registration shall be the district court, its branch court, or registry having the jurisdiction over the location of the principal office, branch office or agency of the Corporation.
[This Article Wholly Amended by Presidential Decree No. 22220, Jun. 28, 2010]
 Article 11 (Applicant for Registration)
As for the registration of the Corporation, the President shall be the applicant, except in the case of registration of its establishment.
[This Article Wholly Amended by Presidential Decree No. 22220, Jun. 28, 2010]
 Article 12 (Documents to be Attached to Application for Registration)
Each application for registration under Articles 5 through 8 shall be accompanied by documents attesting grounds therefor.
[This Article Wholly Amended by Presidential Decree No. 22220, Jun. 28, 2010]
 Article 13 (Provisions Applicable Mutatis Mutandis to Registration)
Except as otherwise provided in this Decree, the Non-Contentious Case Procedure Act and the Commercial Registration Act shall apply mutatis mutandis to the registration of the Corporation.
[This Article Wholly Amended by Presidential Decree No. 22220, Jun. 28, 2010]
 Article 14 (Matters Requiring Resolutions of the Operating Committee)
"Matters prescribed by Presidential Decree" in Article 43 (2) of the Act shall mean the following matters:
1. Modification of the articles of association of the Corporation;
2. Budget and settlement of accounts of the Corporation;
3. Establishment and modification of the operating manuals;
4. Borrowings from the Trade Insurance Fund, issuance of bonds and investment in other corporations;
5. Restrictions on the establishment of insurance relations;
6. Matters concerning write-off of indemnity receivables;
7. Other matters that the President deems important for the operation of trade insurance.
[This Article Wholly Amended by Presidential Decree No. 22220, Jun. 28, 2010]
 Article 15 (Composition of the Operating Committee)
(1) The operating committee shall be comprised of up to ten members including one chairperson.
(2) The President shall become the chairperson, and the following persons shall become the members: <Amended by Presidential Decree No. 24442, Mar. 23, 2013; Presidential Decree No. 28212, Jul. 26, 2017>
1. From among public officials in general service belonging to the Senior Civil Service Corps under the control of the Minister of Strategy and Finance, the Minister of Foreign Affairs, the Minister of Trade, Industry and Energy and the Minister of SMEs and Startups, each person who is nominated by each Minister;
2. Deleted; <by Presidential Decree No. 28212, Jul. 26,2017>
3. Managing director of the Export-Import Bank of Korea;
4. Vice President of the Korea Trade-Investment Promotion Agency;
5. Vice President of the Korea International Trade Association;
6. Other persons nominated by the Minister of Trade, Industry and Energy, from among those with much knowledge and experience in trade insurance.
[This Article Wholly Amended by Presidential Decree No. 22220, Jun. 28, 2010]
 Article 16 (Chairperson)
The chairperson shall represent the operating committee, and shall convene and preside over meetings as prescribed by the articles of association.
[This Article Wholly Amended by Presidential Decree No. 22220, Jun. 28, 2010]
 Article 17 (Operational Regulations)
In addition to the matters prescribed by this Decree, matters necessary for the operation of the operating committee shall be determined by the chairperson through a resolution by the operating committee.
[This Article Wholly Amended by Presidential Decree No. 22220, Jun. 28, 2010]
 Article 18 Deleted. <by Presidential Decree No. 16836, Jun. 7, 2000>
 Article 19 (Budget and Settlement of Accounts)
The budget of the Corporation shall be approved by the Minister of Trade, Industry and Energy before the relevant fiscal year begins, and the settlement of accounts, within two months from the end of the relevant fiscal year, pursuant to Article 55 of the Act. <Amended by Presidential Decree No. 24442, Mar. 23, 2013>
[This Article Wholly Amended by Presidential Decree No. 22220, Jun. 28, 2010]
 Article 20 (Scope, etc. of Public Organizations)
(1) "Public organizations prescribed by Presidential Decree" in Article 58 (1) of the Act shall mean the following institutions:
1. A government-financed enterprise under subparagraph 6 of Article 2 of the State Property Act;
2. A government-invested institution;
3. A corporation in which a local government invests at least 50/100 of the corporation's paid-in capital;
4. The Korea Financial Telecommunications and Clearings Institute established with permission from the Minister of Strategy and Finance under Article 32 of the Civil Act.
(2) The head of a relevant agency that receives a request for investigation pursuant to Article 58 (2) of the Act shall designate a person to be in exclusive charge of the investigation, from among the employees under his/her control, and shall notify the President of such person's position and name. The same shall also apply to any modification thereof.
(3) The expenses incurred for the investigation under paragraph (2) may be borne by the Corporation within budgetary limits.
[This Article Wholly Amended by Presidential Decree No. 22220, Jun. 28, 2010]
 Article 21 Deleted. <by Presidential Decree No. 22220, Jun. 28, 2010>
ADDENDA
(1) (Enforcement Date) This Decree shall enter into force on November 5, 1994.
(2) (Transitional Measures) Any insurance contract entered into before this Decree enters into force, shall be governed by the previous provisions.
(3) (Relation with other Statutes) Where other statutes cite the previous provisions as at the time this Decree enters into force, and where the provisions corresponding thereto are included in this Decree, such corresponding provisions shall be deemed to have been cited.
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. 15296, Feb. 28, 1997>
Article 1 (Enforcement Date)
This Decree shall enter into force on March 1, 1997.
Articles 2 through 7 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. 16836, Jun. 7, 2000>
This Decree shall enter into force on the date of its promulgation.
ADDENDUM <Presidential Decree No. 18268, Jan. 29, 2004>
This Decree shall enter into force on the date of its promulgation.
ADDENDUM <Presidential Decree No. 18312, Mar. 17, 2004>
This Decree shall enter into force on the date of its promulgation.
ADDENDA <Presidential Decree No. 19513, Jun. 12, 2006>
Article 1 (Enforcement Date)
This Decree shall enter into force on July 1, 2006.
Articles 2 through 4 Omitted.
ADDENDA <Presidential Decree No. 20257, Sep. 10, 2007>
Article 1 (Enforcement Date)
This Decree shall enter into force on the date of its promulgation.
Articles 2 through 4 Omitted.
ADDENDA <Presidential Decree No. 20678, Feb. 29, 2008>
Article 1 (Enforcement Date)
This Decree shall enter into force on the date of its promulgation. (Proviso Omitted.)
Articles 2 through 7 Omitted.
ADDENDA <Presidential Decree No. 21641, Jul. 27, 2009>
Article 1 (Enforcement Date)
This Decree shall enter into force on July 31, 2009. (Proviso Omitted.)
Articles 2 through 15 Omitted.
ADDENDA <Presidential Decree No. 21806, Nov. 2, 2009>
Article 1 (Enforcement Date)
This Decree shall enter into force on the date of its promulgation.
Article 2 Omitted.
ADDENDA <Presidential Decree No. 22220, Jun. 28, 2010>
Article 1 (Enforcement Date)
This Decree shall enter into force on July 6, 2010.
Article 2 Omitted.
Article 3 (Relation with other Statutes)
A citation of the former provisions of the Enforcement Decree of the Export Insurance Act or the term "export insurance" by other statutes as at the time this Act enters into force shall be deemed a citation of the Enforcement Decree of the Trade Insurance Act or the term "trade insurance", respectively, in lieu of the former provisions and term.
ADDENDA <Presidential Decree No. 24442, Mar. 23, 2013>
Article 1 (Enforcement Date)
This Decree shall enter into force on the date of its promulgation. (Proviso omitted.)
Articles 2 through 12 Omitted.
ADDENDA <Presidential Decree No. 28212, Jul. 26, 2017>
Article 1 (Enforcement Date)
This Decree shall enter into force on the date of its promulgation.
Articles 2 through 4 Omitted.