CHAPTER I GENERAL PROVISIONS
The purpose of this Act is to foster a sound credit information business, promoting an efficient utilization and systematic management of credit information, and protecting privacy, etc. from the misuse and abuse of credit information properly, thereby contributing to the establishment of sound practices in credit transaction.
The definitions of terms used in this Act shall be as follows: <Amended by Act No. 10690, May 19, 2011; Act No. 13216, Mar. 11, 2015>
| 1. | The term "credit information" means information prescribed by Presidential Decree, which is necessary to determine the credit worthiness of the other party to financial transactions and other commercial transactions, as follows: |
| (a) | Information by which a particular owner of credit information can be identified; |
| (b) | Information by which the transaction details of an owner of credit information can be determined; |
| (c) | Information by which the credit worthiness of an owner of credit information can be determined; |
| (d) | Information by which the credit transaction capacity of an owner of credit information can be determined; |
| (e) | Other information similar to that referred to in items (a) through (d); |
| 2. | The term "personal credit information" means credit information prescribed by Presidential Decree, which is necessary to determine the credit rating, credit transaction capacity, etc. of an individual; |
| 3. | The term "owner of credit information" means a person identifiable by processed credit information, who is the owner of such credit information; |
| 4. | The term "credit information business" means conducting all or part of the services set forth in any subparagraph of Article 4 (1) as a business; |
| 5. | The term "credit information company" means a person permitted by the Financial Services Commission pursuant to the provisions of Article 4 to engage in credit information business; |
| 6. | The term "credit information collection agency" means a person permitted by the Financial Services Commission under the provisions of Article 25 (1), who centrally manages and utilizes credit information; |
| 7. | The term "credit information provider/user" means a person prescribed by Presidential Decree, who provides any third party with credit information obtained or produced in relation to his/her own business for purposes of commercial transactions, such as financial transactions with customers, or who has been continuously supplied with credit information from any third party to use such information for his/her own business, or other persons corresponding thereto; |
| 8. | The term "credit inquiry service" means collecting and processing credit information, producing credit information to represent credit worthiness, credit transaction capacity, etc. of the owner of credit information, and furnishing such credit information to clients upon their request; |
| 9. | The term "credit investigation service" means investigating credit information and furnishing it to clients upon their request; |
| 10. | The term "claims collection service" means recovering claims on behalf of and with the authorization of creditors, through asset investigation into persons who fail to repay claims within the agreed deadline, dunning, or recovery of payments from debtors; |
| 11. | The term "claims", which are the object of claims collection, means monetary claims that accrue from commercial practices under the Commercial Act; civil claims prescribed by Presidential Decree, the title of which has been acknowledged by judgments, etc.; monetary claims arising from loan and guarantee, and other credit facilities and insurance businesses for union members and members of cooperatives, mutual aid associations, savings and finance companies, and their national federations and associations established under special Acts; and any other claims, the collection of which is allowed to be entrusted to a credit information company pursuant to other Acts; |
| 12. | Deleted; <by Act No. 11845, May 28, 2013> |
| 13. | The term "processing" means any of the following acts: |
| (a) | Entering, saving, processing, editing, searching, deleting, or printing any credit information using computers; |
| (b) | Providing credit information to a third party via delivery, postal service, electronic transmission, etc.; |
| (c) | Other acts similar to those set forth in items (a) and (b). |
| Article 3 (Fostering Credit Information Business) |
| (1) | The Financial Services Commission may, if deemed necessary to improve credit information companies' capability to provide credit information as well as to facilitate utilization of credit information, formulate plans for fostering credit information business. |
| (2) | The Financial Services Commission may, if deemed necessary to facilitate implementation of plans under paragraph (1), request cooperation of the head of a related administrative agency, who, in turn, shall comply with such request in the absence of any justifiable ground to the contrary. |
| Article 3-2 (Relationship to other Acts) |
| (1) | This Act shall apply to the use and protection of credit information, except as otherwise expressly provided for in other Acts. |
[This Article Newly Inserted by Act No. 13216, Mar. 11, 2015]
CHAPTER II LICENSING, ETC. OF CREDIT INFORMATION BUSINESS
| Article 4 (Type and Permission of Credit Information Business) |
| (1) | The type and services of a credit information business shall be as prescribed in the following subparagraphs. In such cases, any other service incidental to the services falling under subparagraphs 2 and 3 shall be determined by Presidential Decree: <Amended by Act No. 13216, Mar. 11, 2015> |
| 1. | Credit inquiry business: credit inquiry service and the following services: |
| (a) | Services approved by the Financial Services Commission as those related to authentication of identities and identity validation of owners of credit information; |
| (b) | Development and sale of credit evaluation models and risk management models; |
| 2. | Credit investigation business: credit investigation service and any other service incidental thereto; |
| 3. | Claims collection business: claims collection service any other service incidental thereto; |
| 4. | Deleted. <by Act No. 11845, May 28, 2013> |
| (2) | Any person who intends to engage in credit information business shall obtain permission from the Financial Services Commission in accordance with the type of services under subparagraphs of paragraph (1). |
| (3) | Any person who intends to obtain permission under paragraph (2) shall file an application with the Financial Services Commission, as prescribed by Presidential Decree. |
| (4) | The Financial Services Commission may attach conditions to the permission under paragraph (2). |
| (5) | Any matter concerning an application for permission, including methods to fill out a permission application form in relation to permission pursuant to paragraph (2), and the procedure and standard for permission review, and any other necessary matters shall be prescribed by Ordinance of the Prime Minister. |
| Article 5 (Qualified Licensee by Type of Credit Information Business) |
| (1) | A person who may be licensed to engage in credit inquiry business, credit investigation business, and claims collection business, shall be limited to any person falling under any of the following subparagraphs: <Amended by Act No. 10228, Apr. 5, 2010; Act No. 14122, Mar. 29, 2016> |
| 1. | A corporation, at least 50/100 of the capital of which is invested by financial institutions, etc. prescribed by Presidential Decree; |
| 6. | A corporation, at least 50/100 of the capital of which is invested by a person who is licensed to engage in all or some of the operations referred to in Article 4 (1) 1 through 3: Provided, That cases where an investor engages in the same kind of operation with the corporation invested, shall be excluded. |
| (2) | Deleted. <by Act No. 11845, May 28, 2013> |
| Article 6 (Licensing Requirements) |
| (1) | Any person who intends to obtain a license for credit information business under Article 4 (2) shall satisfy requirements referred to in each of the following subparagraphs: |
| 1. | He/she shall be equipped with sufficient human resources and physical facilities, including computer equipment, to carry out credit information business; |
| 2. | He/she shall have reasonable and sound business plans; |
| 3. | Major investors prescribed by Presidential Decree shall have sufficient investment capacity, viable financial standing and social credibility; |
| 4. | He/she shall have a sufficient level of expertise to perform credit information business. |
| (2) | Any person who intends to be licensed to engage in credit information business shall possess capital or basic property classified under the following subparagraphs: <Amended by Act No. 11845, May 28, 2013> |
| 1. | Five billion won or more, where he/she intends to carry out credit inquiry business; |
| 2. | Not more than five billion won, but not less than the amount determined by Presidential Decree, where he/she intends to carry out credit investigation business and claims collection business, separately or jointly. |
| (3) | Any matters necessary for the detailed licensing requirements referred to in paragraph (1) shall be determined by Presidential Decree. |
| (4) | A credit information company shall continue to satisfy the requirements set forth in paragraph (1) 1 while conducting credit information business. |
| Article 7 (Public Notification on License, etc.) |
The Financial Services Commission shall, when it grants a license in accordance with the provisions of Article 4 (2) or cancels a license or authorization in accordance with the provisions of Article 14 (1), publicly announce details thereof in the Official Gazette without delay, and make it known to the public by means of Internet web page, etc.
| Article 8 (Matters to Declare and Report) |
Where a credit information company intends to modify any matters that have been licensed under Article 4 (2) as prescribed by Presidential Decree, it shall make a prior declaration to the Financial Services Commission: Provided, That if it intends to modify insignificant matters prescribed by Presidential Decree, it shall report any reason for modification to the Financial Services Commission within seven days from the date when such reason occurs.
| Article 9 (Approval, etc. for Change in Controlling Shareholder) |
| (1) | Any person who intends to acquire shares of a credit information company (including equity interest; hereafter in this Article the same shall apply) to become a controlling shareholder prescribed by Presidential Decree shall satisfy the requirements for major investors as determined by Presidential Decree to promote sound management under Article 6 (1) 3 and obtain prior approval from the Financial Services Commission. |
| (2) | The Financial Services Commission may order a credit information company to dispose of the shares obtained without approval under paragraph (1) within a specified period of not more than six months. |
| (3) | Any person who obtains shares without approval under paragraph (1) shall not exercise voting rights for such shares. |
| (4) | Any detailed matters necessary for the approval under paragraph (1) and the disposition order under paragraph (2) shall be determined by Presidential Decree. |
| Article 10 (Authorization of Transfer, Acquisition by Transfer, etc. of Credit Information Business) |
| (1) | Where a credit information company intends to wholly or partially transfer, take over, or divide its business, or merge with another juristic person (including division and merger under Article 530-2 of the Commercial Act; hereinafter the same shall apply), it shall obtain authorization from the Financial Services Commission, as prescribed by Presidential Decree. |
| (2) | Where a credit information company transfers or divides its business or merges it with another juristic person under authorization in accordance with paragraph (1), a transferee, a juristic person established after division, or a juristic person which survives the merger (except for cases where a credit information company carries out a statutory merger with another juristic person which is not a credit information company), or a juristic person newly formed through the merger, shall succeed to the status of the transferrer, the juristic person before merger or division, as a credit information company. In such cases, a license granted to the existing credit information company prior to such event shall become null and void (in cases of the partial transfer or division under paragraph (1), it applies only to the transferred or divided business). |
| (3) | With regard to any transferee, any juristic person which survives merger, and any juristic person newly established in accordance with division or merger, as provided in paragraphs (1) and (2), the provisions of Articles 5, 6, 22 (1), and 27 (1) through (7) shall apply mutatis mutandis. <Amended by Act No. 11845, May 28, 2013> |
| (4) | Where a credit information company intends to temporarily suspend or close all or some of its business services, it shall file a prior report to the Financial Services Commission, as prescribed by Ordinance of the Prime Minister. |
| Article 11 (Concurrent Operation of Business Services) |
| (1) | A credit information company may concurrently perform the services reported to and authorized by the Financial Services Commission as well as services incidental thereto, as prescribed by Ordinance of the Prime Minister, other than any of the following business services. In such cases, any service, which requires authorization, permission, registration, approval, etc. of an administrative agency in accordance with any applicable individual Act, may be subject to prior authorization, permission, registration, approval, etc. in accordance with such individual Act: <Amended by Act No. 11845, May 28, 2013> |
| 1. | Services of providing an individual with any other person's credit information and the processed credit information thereof; |
| 2. | Services of vicariously issuing a liability certificate in relation to any other company's claims (excluding cases prescribed by Presidential Decree); |
| 3. | Services deemed beyond the scope of operations performed by a credit information company, including vicarious tasks, etc. of a lawsuit, etc. for any other person's exercise of rights, such as purchase of bad debts and collection of claims; |
| 4. | Other services prescribed by Presidential Decree, which may have harmful impact on the owner of credit information or society. |
| (2) | Notwithstanding paragraph (1), no credit bureau shall perform any other commercial business concurrently with credit information business: Provided, That the same shall not apply to a survey, analysis, etc. performed for a public purpose at the request of the State, a local government, or a public organization prescribed by Presidential Decree, approved by the Financial Services Commission. <Newly Inserted by Act No. 13216, Mar. 11, 2015> |
| Article 12 (Prohibition of Use of Similar Title) |
No person, other than a credit information company licensed under this Act, shall use such titles as credit information, credit investigation, or any title similar thereto for his/her trade name. <Amended by Act No. 11845, May 28, 2013>
| Article 13 (Prohibition of Concurrent Offices by Executive officers) |
No full-time executive officer of a credit information company may undertake the position of managing director for any other profit-making juristic person without approval of the Financial Services Commission.
| Article 14 (Revocation of Permission, etc., and Suspension of Business) |
| (1) | The Financial Services Commission may revoke permission or authorization of a credit information company in any of the following cases: Provided, That if any ground prescribed by Presidential Decree exists, despite the fact that a credit information company falls under any of the following subparagraphs, the Financial Services Commission may issue, prior to such cancellation, an order to correct within a specified period not exceeding six months: <Amended by Act No. 11845, May 28, 2013; Act No. 13216, Mar. 11, 2015> |
| 1. | If it has obtained permission under Article 4 (2) or authorization under Article 10 (1) by fraudulent or other wrongful means; |
| 3. | Deleted; <by Act No. 11845, May 28, 2013> |
| 4. | If the equity capital (referring to the sum of total assets less total liabilities on the balance sheet as at the end of the latest business year; hereinafter the same shall apply) of a credit information company [excluding cases where three business years (five years if credit inquiry business is included) have not elapsed since the credit information company obtained permission] falls short of the capital or basic asset requirements referred to in Article 6 (2); |
| 5. | If a credit information company, which has violated an order to suspend business or committed an offence that constitutes grounds for business suspension, had been imposed a disposition to suspend practice within three years from the date when such grounds for business suspension occurred; |
| 6. | If it has violated any of subparagraphs 1 through 4 of Article 40; |
| 7. | Deleted; <by Act No. 11845, May 28, 2013> |
| 9. | If it has violated any of the terms or conditions of permission or authorization; |
| 10. | If it has failed to perform the permitted operations for at least one year consecutively without justifiable grounds; |
| 11. | If it has performed claims collection service, in violation of Article 41 (1) (applicable only to claims collection business). |
| (2) | The Financial Services Commission may issue an order to fully or partially suspend business within a specified period not exceeding six months, if a credit information company falls under any of the following subparagraphs: <Amended by Act No. 11845, May 28, 2013; Act No. 13216, Mar. 11, 2015> |
| 3. | If it has violated any of the restrictions concerning collection, investigation, etc. under Article 16; |
| 4. | If any credit information has been lost, stolen, disclosed, altered or compromised, in violation of Articles 17 (4) or 19; |
| 6. | If a credit bureau has provided any personal credit information to its affiliate company, etc., in violation of Article 22-3; |
| 7. | If it has violated subparagraph 5 of Article 40; |
| 8. | If it has violated Article 42 (1), (3), or (4); |
| 9. | If a case constitutes grounds for a disposition provided for in attached Table; |
| 11. | Any other case where it has violated any other statute or the articles of incorporation, or its management is unsound so that it will or is likely to severely harm public interests. |
CHAPTER III COLLECTION, INVESTIGATION AND PROCESSING OF CREDIT INFORMATION
| Article 15 (Principles of Collection, Investigation, and Processing) |
| (1) | A credit information company, credit information collection agency and credit information provider/user (hereinafter referred to as "credit information company, etc.") may collect, investigate, and process credit information. In such cases, the credit information company, etc. shall clarify the purposes of such collection, investigation, and processing within the scope of operations determined by this Act or the articles of incorporation and collect, investigate, and process credit information by reasonable and fair means to the least extent necessary to serve such purposes pursuant to this Act and the Personal Information Protection Act. |
| (2) | In collecting and investigating credit information, a credit information company, etc. shall obtain consent from the relevant owner of credit information: Provided, That the same shall not apply in any of the following cases: |
| 1. | Where otherwise provided for in any Act or it is essential for complying with the legal obligations; |
| 2. | Where it is crucial for concluding and executing a commercial transaction, including financial transactions, with the owner of credit information; |
| 3. | Where deemed obviously necessary to urgently protect the life, body or property interests of the owner of credit information or a third party in a situation where it is impossible to obtain prior consent due to the inability of the owner of credit information or his/her legal representative to express his/her wishes, unknown whereabouts, etc.; |
| 4. | Where deemed necessary to achieve the legitimate interests of a credit information provider/user and such cause obviously takes precedence over the rights of the owner of credit information. In such cases, the collection of credit information shall be limited to where it has a substantial relation with the legitimate interests of the credit information provider/user and does not exceed a reasonable scope. |
[This Article Wholly Amended by Act No. 13216, Mar. 11, 2015]
| Article 16 (Restrictions on Collection, Investigation, and Processing) |
| (1) | No credit information company, etc. shall collect and investigate the information falling under any of the following subparagraphs: |
| 1. | Information pertaining to national security and classified information; |
| 2. | A company's trade secret or initiative research and development information; |
| 3. | An individual's political belief, religious faith, or other personal information irrelevant to credit information; |
| 4. | Personal credit information not ascertained; |
| 5. | Any information prohibited from being collected in accordance with other Acts; |
| 6. | Other information prescribed by Presidential Decree. |
| (2) | A credit information company, etc. which intends to collect and investigate the information pertaining to an individual's disease or provide it to a third party, shall obtain prior approval from such individual under Article 32 (1), and such information shall be used only for purposes prescribed by Presidential Decree. |
| Article 17 (Outsourcing of Collection, Investigation, and Processing) |
| (1) | A credit information company, etc. may entrust, within the scope of its operations, collection, and investigation of credit information to any other credit information company, etc. with the consent of its clients. |
| (2) | A credit information company, etc. may outsource the processing of the collected credit information to any other person who satisfies requirements prescribed by Presidential Decree, including a given amount of capital, and the processing of the information by an outsourced agent (hereinafter referred to as "agent") shall be subject to Articles 19 through 21, 40, 43, 43-2 and 45 (including penal and administrative fines provisions in relation to such Articles). <Amended by Act No. 13216, Mar. 11, 2015> |
| (3) | A credit information company, etc. prescribed by Presidential Decree, which intends to outsource the processing of credit information under paragraph (2), shall notify the Financial Services Commission of the scope of the credit information provided, etc., as prescribed by Presidential Decree. |
| (4) | In providing any personal credit information to an agent in order to outsource the processing of credit information under paragraph (2), a credit information company, etc. shall take measures to protect information by which a particular owner of credit information can be identified, such as encryption, as prescribed by Presidential Decree. <Newly Inserted by Act No. 13216, Mar. 11, 2015> |
| (5) | Where a credit information company, etc. has provided any credit information to an agent, it shall educate the agent as prescribed by Presidential Decree to prevent the credit information from being lost, stolen, disclosed, altered or compromised and reflect matters for the safe processing of credit information by the agent in the outsourcing contract. <Newly Inserted by Act No. 13216, Mar. 11, 2015> |
| (6) | No agent shall use provided any information exceeding the scope of duties outsourced under paragraph (2). <Newly Inserted by Act No. 13216, Mar. 11, 2015> |
| (7) | No agent shall further outsource any of the duties under paragraph (2) to any third party: Provided, That the same shall not apply where the Financial Services Commission acknowledges within the scope not compromising the protection and safe processing of credit information. <Newly Inserted by Act No. 13216, Mar. 11, 2015> |
CHAPTER IV DISTRIBUTION, USE AND MANAGEMENT OF CREDIT INFORMATION
| Article 18 (Keeping Credit Information Accurate and Up-to-Date) |
| (1) | A credit information company, etc. shall register, modify, and manage credit information, as prescribed by Presidential Decree, so as to keep credit information accurate and up-to-date. |
| (2) | A credit information company, etc. shall delete any credit information that may disadvantage an owner of credit information, from the list of information to be registered and managed, within five years at latest after the cause of such disadvantage is removed. <Amended by Act No. 10690, May 19, 2011> |
| (3) | Specific types of the credit information under paragraph (2), the period of preservation and use of the relevant records, etc. shall be prescribed by Presidential Decree. <Newly Inserted by Act No. 10690, May 19, 2011> |
| Article 19 (Security Protection of Credit Information Computer System) |
| (1) | A credit information company, etc. shall formulate and implement technological, physical, and administrative security measures, as prescribed by Presidential Decree, with respect to the unlawful access by a third party to the credit information computer system (including the common computer network for credit information under Article 25 (6); hereinafter the same shall apply) and alteration, compromise and destruction or any other danger in relation to the information entered. <Amended by Act No. 13216, Mar. 11, 2015> |
| (2) | Where a credit information provider/user exchanges credit information with another credit information provider/user or any credit bureau subject to this Act, such credit information provider/user shall enter into an agreement containing measures concerning the management of credit information security, as prescribed and publicly notified by the Financial Services Commission. |
| Article 20 (Clarification of Accountability of Credit Information Management and Archiving of Business Processing Records) |
| (1) | A credit information company, etc. shall comply with the standards for management of credit information determined by the Financial Services Commission with regard to collection, processing, use, protection, etc. of credit information. <Amended by Act No. 13216, Mar. 11, 2015> |
| (2) | A credit information company, etc. shall archive the records concerning the following matters for three years: |
| 1. | Names and addresses of the clients or institutions that provide or exchange such information; |
| 2. | Details of the operations requested and date of request; |
| 3. | Processing results of the operations requested or details of the credit information provided and date of provision; |
| 4. | Other matters determined by Presidential Decree. |
| (3) | Each credit information company, a credit information collection agency, and a credit information provider/user determined by Presidential Decree shall appoint at least one credit information administrators/s to undertake the tasks prescribed in paragraph (4): Provided, That a person prescribed by Presidential Decree taking into consideration total assets, number of employees, etc. shall designate a credit information administrator/guardian as his/her executive officer. <Amended by Act No. 13216, Mar. 11, 2015> |
| (4) | A credit information administrator/guardian under paragraph (3) shall perform the following duties: <Newly Inserted by Act No. 13216, Mar. 11, 2015> |
| 1. | Formulation and implementation of plans for the management and protection of credit information, such as the collection, keeping, provision, and deletion thereof; |
| 2. | Regular inspection and improvement of the status and practice of the management of credit information, such as the collection, keeping, provision, and deletion thereof; |
| 3. | Exercise of rights of owners of credit information, such as the perusal of and the request for correction of credit information, and damage relief; |
| 4. | Establishment and operation of internal control system to prevent disclosure, etc. of credit information; |
| 5. | Formulation and execution of a plan to protect credit information for its executive officers/and or employees, exclusive solicitors, etc.; |
| 6. | Inspection for compliance with the statutes and regulations related to the protection of credit information by its executive officers and/or employees, exclusive solicitors, etc.; |
| 7. | Other duties prescribed by Presidential Decree to manage and protect credit information. |
| (5) | A credit information administrator/guardian shall prepare a regular report on the duties set forth in subparagraphs of paragraph (4) as determined by the Financial Services Commission and submit it to the Financial Services Commission after presenting it to the representative director and the board of directors. <Newly Inserted by Act No. 13216, Mar. 11, 2015> |
| (6) | The qualifications for and other matters necessary to designate a credit information administrator/guardian pursuant to paragraph (3), shall be determined by Presidential Decree. |
| (7) | Where a customer information officer appointed in accordance with Article 48-2 (6) of the Financial Holding Companies Act, meets the qualifications set forth in paragraph (6), he/she shall be deemed a credit information administrator/guardian designated under paragraph (3). <Amended by Act No. 13216, Mar. 11, 2015> |
| Article 20-2 (Retention Period, etc. for Personal Credit Information) |
| (1) | A credit information provider/user shall manage personal credit information of an owner of credit information as prescribed by Presidential Decree, including ensuring the right to access thereto, in such a manner that the personal credit information of the relevant owner of credit information can be safely protected from the date a commercial transaction relationship including financial transactions (excluding employment relationship; hereinafter the same shall apply) is terminated until the time limit determined and publicly notified by the Financial Services Commission. |
| (2) | A credit information provider/user shall delete personal credit information of the relevant owner of credit information from the management list within a maximum five year period from the date a commercial transaction relationship including financial transactions is terminated (where the purpose of the collection, provision, etc. of information is achieved before the lapse of the relevant period, within three months from the date such purpose is achieved): Provided, That the same shall not apply in any of the following cases: |
| 1. | Where it is essential for performing any obligation under any other statute; |
| 2. | Where deemed necessary for the exigent interests of an individual's life, body or property; |
| 3. | Other cases prescribed by Presidential Decree as necessary to preserve personal credit information, such as paying a deposit or insurance proceeds, or preventing the repurchase of insurance by an insurance defrauder. |
| (3) | Where a credit information provider/user keeps personal credit information without deletion under the proviso to paragraph (2), he/she shall manage it as prescribed by Presidential Decree, such as separating it from the personal credit information of owners of credit information with whom he/she currently deals. |
| (4) | When a credit information provider/user utilizes any personal credit information he/she keeps separately under paragraph (3), he/she shall notify such fact to the owner of credit information. |
| (5) | Types of personal credit information, period of management, methods and procedures for deletion, the criterion of the date a commercial transaction relationship including financial transactions is terminated, etc. under paragraphs (1) and (2) shall be prescribed by Presidential Decree. |
[This Article Newly Inserted by Act No. 13216, Mar. 11, 2015]
| Article 21 (Disposition of Archived Information upon Closure of Business) |
Where a credit information company or credit information collection agency intends to close its business, it shall dispose of or destroy information in its keeping, as determined and publicly notified by the Financial Services Commission.
CHAPTER V CREDIT INFORMATION BUSINESS
SECTION 1 Credit Inquiry Business, etc.
| Article 22 (Persons Engaged in Credit Inquiry Business) |
| (1) | No credit bureau (referring to a person permitted for credit inquiry business; hereinafter the same shall apply) shall appoint or hire any of the following persons as executive officer: <Amended by Act No. 14823, Apr. 18, 2017> |
| 2. | A person under adult guardianship or person under limited guardianship; |
| 3. | A person who has yet to be reinstated after having been declared bankrupt; |
| 4. | A person in whose case three years have not elapsed since the completion of, or exemption from, a sentence of imprisonment without labor, or heavier punishment, as so declared by a court (including cases where such execution is deemed to have been completed); |
| 5. | A person who is under a suspended sentence of imprisonment without labor or a heavier punishment as declared by a court; |
| 6. | A person who has been dismissed or discharged from office under this Act or other statutes, and for whom five years have not since passed; |
| 7. | A person who had worked as an executive officer or employee of a corporation or company, the business permission, authorization, etc. of which was revoked under this Act or other statutes, and for whom five years have not passed after such revocation (applicable only to a person prescribed by Presidential Decree, who is directly responsible for the grounds for such revocation or who is in the position equivalent thereto); |
| 8. | A person who is a retired executive officer or employee and is notified that he/she would have received a measure of recommendation of dismissal (including demand for dismissal) or demand for removal from office pursuant to this Act or other statutes if he/she held his/her official position or were under employment, and for whom five years (seven years from the date of his/her retirement where the date on which five years has passed from the date of notification is later than the date on which seven years have passed from the date of his/her retirement) have not yet passed from the date of such notification. |
| (2) | Where executive officers or employees who engage in credit inquiry business intend to collect credit information, they shall carry a certificate indicating their engagement in credit inquiry business to present it to persons concerned. |
| Article 22-2 (Reporting on Credit Information, etc.) |
Each credit bureau shall submit to the Financial Services Commission a report on the scope and period of use of credit information, and persons to whom such information is to be provided, etc., as prescribed by Presidential Decree.
[This Article Newly Inserted by Act No. 10690, May 19, 2011]
| Article 22-3 (Prohibition on Provision of Personal Credit Information to Affiliated Company, etc.) |
| 1. | Where the credit bureau provides it to perform its services prescribed in Article 4 (1) 1; |
| 2. | Where it is provided pursuant to Article 32 (6) 4. |
[This Article Newly Inserted by Act No. 13216, Mar. 11, 2015]
| Article 23 (Requests, etc. for Provision of Credit Information of Public Institutions) |
| (1) | Deleted. <by Act No. 13216, Mar. 11, 2015> |
| (2) | Where a credit information collection agency requests the head of the State, a local government, or a public organization prescribed by Presidential Decree (hereinafter referred to as "public institution") to provide credit information prescribed by Presidential Decree, which is necessary to determine credit worthiness, credit transaction capacity, etc. of the owner of credit information, the head of a public institution requested thereof may, notwithstanding the Acts set forth in the following subparagraphs, provide credit information for the requesting credit information collection agency. In such cases, the standards, procedures, etc. for the head of public institutions to provide information shall be prescribed by Presidential Decree: <Amended by Act No. 10465, Mar. 29, 2011; Act No. 13216, Mar. 11, 2015> |
| (3) | A credit information collection agency may supply credit information provided by public institutions in accordance with paragraph (2) to any credit information user prescribed by Presidential Decree. <Amended by Act No. 13216, Mar. 11, 2015> |
| (4) | Where a credit information collection agency or a credit information user referred to in paragraph (3) provides any personal credit information obtained from a public institution under paragraphs (2) and (3), it shall verify whether the credit information provider/user has obtained consent from the relevant individual in relation to the provision and use of credit information thereof in accordance with Article 32 (3). <Amended by Act No. 13216, Mar. 11, 2015> |
| (5) | No credit information user provided with credit information in accordance with paragraph (3) shall provide it to any other person. <Amended by Act No. 13216, Mar. 11, 2015> |
| (6) | Any person who requests provision of credit information in accordance with paragraph (2) shall pay fees or commissions for perusal in accordance with related statutes. <Amended by Act No. 13216, Mar. 11, 2015> |
| (7) | Where the head of a public institution requests, in writing, the provision of credit information to use it for official duties prescribed by related statutes, the credit information company, etc., upon request, may provide such credit information. |
| Article 24 (Use of Computer Data of Resident Registration) |
| (1) | In any of the following cases, a credit information collection agency and credit information provider/user prescribed by Presidential Decree may request the Ministry of the Interior and Safety to provide resident registration data in the computer system under Article 30 (1) of the Resident Registration Act. In such cases, the Ministry of the Interior and Safety shall comply with such request unless any special circumstances exists: <Amended by Act No. 11690, Mar. 23, 2013; Act No. 12844, Nov. 19, 2014; Act No. 14839, Jul. 26, 2017> |
| 1. | Where the payment of deposits, insurance benefits, etc., the extinction prescription of which is completed in accordance with other Acts, including Article 64 of the Commercial Act, shall be notified to the original right holder thereof; |
| 2. | Where matters that affect the rights and obligations of the other party to a transaction, including the occurrence of events resulting in a change to contracts, such as maturity, lapse, termination, etc. of financial transaction contracts, shall be notified. |
| (2) | Any request for resident registration data in the computer system pursuant to paragraph (1) shall be reviewed by the Chairman of the Financial Services Commission. |
| (3) | Where a request has been reviewed by the Chairman of the Financial Services Commission under paragraph (2), it shall be deemed to have been reviewed by the heads of relevant central administrative institutions under Article 30 (1) of the Resident Registration Act. Any matter pertaining to processing procedures, usage fees, commissions, etc. shall be determined by the Resident Registration Act. |
| Article 25 (Credit Information Collection Agency) |
| (1) | A person who intends to centrally collect and store credit information to manage it in a systematic and comprehensive manner and exchange and utilize credit information between credit information companies, etc. (hereinafter referred to as "central management and utilization") shall obtain permission for a information collection agency from the Financial Services Commission. <Amended by Act No. 13216, Mar. 11, 2015> |
| (2) | A credit information collection agency under paragraph (1) shall obtain permission as classified in the following subparagraphs: <Amended by Act No. 13216, Mar. 11, 2015> |
| 1. | Centralized credit information collection agency: A credit information collection agency that centrally manages and utilizes the credit information obtained from all financial institutions prescribed by Presidential Decree; |
| 2. | Individual credit information collection agency: A credit information collection agency that centrally manages and utilizes the credit information in accordance with agreements, etc. made by associations, etc. established by the same type of business owners other than financial institutions referred to in subparagraph 1. |
| (3) | A person who intends to obtain permission for a credit information collection agency pursuant to paragraph (1), shall satisfy the following requirements: <Amended by Act No. 13216, Mar. 11, 2015> |
| 1. | It shall be a non-profit corporation incorporated under article 32 of the Civil Act; |
| 2. | It shall maintain the character of public nature and neutrality, as prescribed by Presidential Decree, in centrally managing and utilizing the credit information; |
| 3. | The facility, equipment, and human resources prescribed by Presidential Decree shall be furnished. |
| (4) | Any necessary matter to obtain permission under paragraphs (1) and (2) and the revocation thereof, the details and scope of credit information subject to central management and utilization, and the persons with whom credit information is to be exchanged shall be determined by Presidential Decree: Provided, That the exchange and use of credit information between a credit information collection agency and a credit bureau shall be conducted in such a manner that the credit information collection agency provides the credit information to the credit bureau at the request of the credit bureau. <Amended by Act No. 13216, Mar. 11, 2015> |
| (5) | The centralized credit information collection agency subject to paragraph (2) 1 (hereinafter referred to as "centralized credit information collection agency"), for the purpose of ensuring the accuracy and timeliness of credit information centrally collected, may investigate as to whether a financial institution duly performs its obligations to provide credit information, as prescribed by the Committee for Intensive Management of Credit information under Article 26. <Amended by Act No. 13216, Mar. 11, 2015> |
| (6) | A credit information collection agency may establish a common computer network for credit information (hereinafter referred to as "Common Computer Network"), as prescribed by Presidential Decree, and any person who participates in the Common Computer Network shall provide cooperation to maintain and manage it. In such cases, a credit information collection agency shall be a telecommunication business owner under Article 2 (1) 1 of the Telecommunications Business Act. |
| Article 25-2 (Duties of Centralized Credit Information Collection Agency) |
A centralized credit information collection agency shall perform the following duties:
| 1. | Centralized management and use of credit information; |
| 2. | Investigations and analysis for public purposes; |
| 3. | Affairs prescribed by Presidential Decree in connection with the processing, analysis, provision, etc. of credit information; |
| 4. | Vicarious notification of change of address on behalf of an owner of credit information; |
| 5. | Affairs prescribed by other statutes that can be performed by the centralized credit information collection agency; |
| 6. | Other affairs prescribed by Presidential Decree, equivalent to those prescribed in subparagraphs 1 through 5. |
[This Article Newly Inserted by Act No. 13216, Mar. 11, 2015]
| Article 26 (Committee for Intensive Management of Credit Information) |
| (1) | The Committee for Intensive Management of Credit Information (hereinafter referred to as the "Committee") shall be established under a centralized credit information collection agency to discuss and determine any of the following affairs: <Amended by Act No. 13216, Mar. 11, 2015> |
| 1. | Deliberation on important issues related to the duties prescribed in subparagraphs of Article 25-2; |
| 2. | Matters concerning the allocation of ordinary expenditure for central management and utilization of credit information, investment funds for new projects, etc.; |
| 3. | Matters concerning investigation on a financial institution's performance of its obligations for the provision of credit information under Article 25 (2) 1 and imposition of sanctions in connection therewith, as prescribed by Presidential Decree; |
| 4. | Matters concerning preventive measures against the disclosure or use of credit information for a non-business purpose; |
| 5. | Other matters necessary for the central management and utilization of credit information. |
| (2) | Deleted. <by Act No. 13216, Mar. 11, 2015> |
| (3) | Where the Committee determines any matter referred to in subparagraphs of paragraph (1), it shall report such fact to the Financial Services Commission, as determined by the Financial Services Commission. <Amended by Act No. 13216, Mar. 11, 2015> |
| Article 26-2 (Organization, Operation, etc. of Committee for Intensive Management of Credit Information) |
| (1) | The Committee shall consist of 15 members, including one chairperson. |
| (2) | The head of the centralized credit information collection agency shall be the chairperson of the Committee, and the members shall be appointed taking into consideration the public interests, neutrality, representativeness of the relevant business categories, expertise in credit information, etc. |
| (3) | Other matters necessary for the organization, operation, etc. of the Committee shall be prescribed by Presidential Decree. |
[This Article Newly Inserted by Act No. 13216, Mar. 11, 2015]
SECTION 2 Credit Investigation Business and Claims Collection Business
| Article 27 (Persons Engaged in Business, Delegated Claims Collectors, etc.) |
| (1) | A credit investigation company (referring to any person permitted to engage in credit investigation business; hereinafter the same shall apply) or a claims collection agency (referring to any person permitted to engage in claims collection business; hereinafter the same shall apply) shall not appoint or hire any of the following persons, as its executive officer and employee, and nor shall it delegate, or conduct in a manner equivalent to delegation, the claims collection service to such person: <Amended by Act No. 14823, Apr. 18, 2017> |
| 1. | A minor: Provided, That cases where he/she is appointed or hired for operations determined and publicly notified by the Financial Services Commission shall be excluded; |
| 2. | A person under adult guardianship or person under limited guardianship; |
| 3. | A person who has yet to be reinstated after having been declared bankrupt; |
| 4. | A person in whose case three years have not elapsed since the completion of, or exemption from, a sentence of imprisonment without labor, or heavier punishment, as so declared by a court (including cases where such execution is deemed to have been completed); |
| 5. | A person who is under a suspended sentence of imprisonment without labor or a heavier punishment as declared by a court; |
| 6. | A person who has been dismissed or discharged from office under this Act or other statutes, and for whom five years have not passed after such incident; |
| 7. | A person who had worked as an executive officer or employee of a corporation or company, permission, authorization, etc. of which was revoked under this Act or other statutes, and for whom five years have not passed after such revocation (applicable only to a person prescribed by Presidential Decree, who is directly responsible for the grounds for such revocation, or any person in the position equivalent thereto); |
| 8. | A person whose registration as a delegated claims collector under paragraph (2) 2 has been revoked, and for whom five years have not passed after such revocation; |
| 9. | A person who is a retired executive officer or employee notified that he/she would receive a measure of recommendation of dismissal (including demand for dismissal) or demand for removal from office pursuant to this Act or other statutes if he/she held his/her official position or were under employment, and for whom five years (seven years from the date of his/her retirement where the date on which five years has passed from the date of notification is later than the date on which seven years have passed from the date of his/her retirement) have not yet passed from the date of such notification. |
| (2) | A claims collection agency shall perform its claims collection service through any of the following persons: |
| 1. | Any executive officer or employee of a claims collection agency; |
| 2. | A person who has been delegated, or allowed in such a manner equivalent to delegation, to render claims collection service by a claims collection agency (hereinafter referred to as "delegated claims collector"). |
| (3) | A claims collection agency shall register a person who intends to serve as its delegated claims collector, with the Financial Services Commission. |
| (4) | No delegated claims collector shall render any claims collection service for a claims collection agency where he/she is not employed. |
| (5) | A claims collection agency shall neither collect claims that are not subject to collection, nor render claims collection service through a delegated claims collector falling under any of the following subparagraphs: |
| 1. | A delegated claims collector who is not registered under paragraph (3); |
| 2. | A delegated claims collector who has been registered with another claims collection agency; |
| 3. | A delegated claims collector who is suspended from his/her business under paragraph (7). |
| (6) | The Financial Services Commission may cancel the registration of delegated claims collectors, if they: |
| 1. | Have been registered under paragraph (3) in a fraudulent or any other unlawful means; |
| 2. | Have violated an order for practice suspension or committed an offence subject to practice suspension under paragraph (7), after having received a disposition of practice suspension within one year from the date such violation occurred; |
| 3. | Have breached any provision of subparagraphs 1 through 4 of Article 40; |
| 5. | Have violated any term or condition of registration; |
| 6. | Have failed to perform the registered business continuously for at least one year without justifiable grounds. |
| (7) | The Financial Services Commission may order to fully or partially suspend the practice within a specified period not exceeding six months, if delegated claims collectors: |
| 1. | Have violated paragraph (4); |
| 2. | Have violated the restrictions on collection, investigation, etc. under Article 16; |
| 3. | Have performed the acts set forth in subparagraph 5 of Article 40; |
| 5. | Have violated other statutes or the articles of association of their claims collection agency to severely harm or be likely to harm public interests. |
| (8) | Where executive officers and employees who engage in credit investigation business or claims collection business, or delegated claims collectors intend to render credit information collection and investigation services or claims collection service, they shall carry a certificate demonstrating their engagement in credit investigation business or claims collection business and present it to the relevant persons. |
| (9) | A claims collection agency shall faithfully manage its delegated claims collectors, so that they may observe the statutes and may not impair the sound transaction order in performing the claims collection service. In such case, it shall ensure that they do not commit a violation as classified in the following: <Newly Inserted by Act No. 15146, Nov. 28, 2017> |
| (10) | The qualification requirements and registration procedures for delegated claims collectors shall be prescribed by Presidential Decree. |
| (11) | A person intending to be a delegated claims collector shall, when applying for registration as such, pay the fee, as prescribed by Ordinance of the Prime Minister. |
| Article 27-2 (Prohibition of Entrustment of Services to Unlicensed Claims Collection Business Entity) |
A credit information provider/user prescribed by Presidential Decree, such as a credit finance company and a credit business entity, shall not entrust claims collection service to any person other than a claims collection agency.
[This Article Newly Inserted by Act No. 15146, Nov. 28, 2017]
SECTION 3 (Articles 28 through 30) Deleted.
CHAPTER VI PROTECTION OF OWNER OF CREDIT INFORMATION
| Article 31 (Public Notification of Credit Information Utilization Status) |
A credit information company, a credit information collection agency, and a credit information provider/user determined by Presidential Decree shall publicly announce the matters concerning the type, use, and receivers of credit information that they manage, and the rights of an owner of credit information, etc., as prescribed by Presidential Decree.
| Article 32 (Consent to Provision and Use of Personal Credit Information) |
| (1) | If a credit information provider/user intends to provide any personal credit information to any other person, he/she shall obtain individual consent in advance from the relevant owner of credit information each time he/she intends to provide personal credit information by using the following methods, as prescribed by Presidential Decree: Provided, That the same shall not apply where such information is provided to maintain the accuracy and currency of personal credit information within the agreed scope of the purpose or use: <Amended by Act No. 13216, Mar. 11, 2015> |
| 2. | Electronic documents bearing a certified digital signature under subparagraph 3 of Article 2 of the Digital Signature Act (referring to electronic documents under subparagraph 1 of Article 2 of the Framework Act on Electronic Transactions); |
| 3. | Entering the personal identification number by wire or wireless communication that ensures stability and reliability of the consent to provide such information, in consideration of the details and purpose of the personal credit information to be provided; |
| 4. | Obtaining consent from an individual after notifying him/her of the consent by wire and wireless communication. In such cases, evidential material shall be obtained and maintained by, for instance, recording a verbal dialogue concerning identification of the individual, questions as to whether the individual consent and his/her answers thereto, etc., and post-notification procedures shall be conducted, as prescribed by Presidential Decree; |
| 5. | Other means determined by Presidential Decree. |
| (2) | A person who intends to obtain any personal credit information from a credit bureau or a credit information collection agency shall obtain individual consent from the relevant owner of credit information whenever he/she intends to provide personal credit information (excluding where it is provided to maintain the accuracy and currency of personal credit information within the scope of the purpose or use already agreed) by any means set forth in subparagraph of paragraph (1), as prescribed by Presidential Decree. In such cases, the person who intends to obtain personal credit information shall notify the relevant owner of credit information when his/her credit rating may be degraded at the time of such inquiry. <Amended by Act No. 13216, Mar. 11, 2015> |
| (3) | Where a credit bureau or a credit information collection agency provides personal credit information under paragraph (2), it shall verify whether the person who intends to obtain such personal credit information has obtained consent under paragraph (2), as prescribed by Presidential Decree. |
| (4) | When a credit information company, etc. obtains consent to the provision and utilization of personal credit information, it shall explain the information subject to mandatory consent and information subject to optional consent to provide services by distinguishing them, and obtain consent thereto respectively, as prescribed by Presidential Decree. In such cases, as to the information subject to mandatory consent, explanation of their relationship with the provision of services shall be explained, and as to the information subject to optional consent, it shall be notified that the other party may choose not to consent to the provision of information. <Newly Inserted by Act No. 13216, Mar. 11, 2015> |
| (5) | No credit information company, etc. may refuse to provide services to a owner of credit information on the ground that he/she does not consent to information subject to optional consent. <Newly Inserted by Act No. 13216, Mar. 11, 2015> |
| (6) | Where any credit information company, etc. provides personal credit information in any of the following cases, paragraphs (1) through (5) shall not apply: <Amended by Act No. 13216, Mar. 11, 2015> |
| 1. | Where a credit information company provides such information for the purpose of performing central management and utilization thereof with another credit information company or credit information collection agency; |
| 2. | Where such information is required to perform a contract, and to entrust the processing of credit information under Article 17 (2); |
| 3. | Where the relevant personal credit information is provided as the rights and obligations are fully or partially transferred by business transfer, division, merger, etc.; |
| 4. | Where personal credit information is provided to a person who uses the information for purposes prescribed by Presidential Decree, including claims collection (applicable only to the credit which is an object of collection), purpose of authorization and/or permission, determination of a company's credit worthiness, and transfer of securities; |
| 5. | Where personal credit information is provided in accordance with a court order for submission thereof or a warrant issued by a judicial officer; |
| 6. | Where such information is provided upon request by a prosecutor or judicial police officer, in an emergency where a victim's life is in danger or he/she is expected to suffer bodily injury, etc., so that no time is available to issue a judicial warrant under subparagraph 5. In such cases, the prosecutor provided with personal credit information shall, without delay, seek a warrant from a judicial officer, and the judicial police officer shall apply to the prosecutor for a warrant, who, in turn, seeks it from a judicial officer. Where the warrant is not issued within 36 hours from receipt of the personal credit information, such personal credit information shall be scrapped without delay; |
| 7. | Where such information is provided upon written request by the head of a competent tax office for inquiry and examination in accordance with tax-related Acts, or upon request for the taxation data subject to mandatory submission in accordance with tax-related Acts; |
| 8. | Where personal credit information held by a financial institution is provided to a foreign financial supervisory body in accordance with international conventions, etc.; |
| 9. | Where information by which the credit worthiness of related persons, such as a person who destabilizes sound practices in credit transaction prescribed by Presidential Decree, and an oligopolistic stockholder and the largest investor of an enterprise, can be determined, is provided; |
| 10. | When such information is otherwise provided in accordance with other Acts. |
| (7) | Any person who intends to provide personal credit information to any other person or who obtains such information under any subparagraph of paragraph (6) shall notify, in advance, the relevant owner of credit information of the fact of and reason for such provision, as prescribed by Presidential Decree: Provided, That, where in extenuating circumstances prescribed by Presidential Decree, such circumstances may be notified or publicly announced later by posting them on his/her Internet homepage or by similar means. <Amended by Act No. 10690, May 19, 2011; Act No. 13216, Mar. 11, 2015> |
| (8) | Any credit information provider/user prescribed by Presidential Decree, who provides personal credit information to any other person subject to paragraph (6) 3, shall obtain approval from the Financial Services Commission with regard to any of the matters determined by Presidential Decree, including the scope of credit information provided. <Amended by Act No. 13216, Mar. 11, 2015> |
| (9) | A person who has obtained personal credit information after obtaining approval under paragraph (8) shall manage it separately from the personal credit information of owners of credit information with whom he/she currently deals, as determined by the Financial Services Commission. <Newly Inserted by Act No. 13216, Mar. 11, 2015> |
| (10) | Where a credit information company, etc. provides personal credit information, it shall verify the identity of the person who obtains the personal credit information and purpose of use thereof, as determined and publicly notified by the Financial Services Commission. |
| (11) | If any conflict exists as to whether individual prior consent has been obtained under paragraph (1), etc., the credit information provider/user who has provided the personal credit information, shall prove such fact. <Amended by Act No. 13216, Mar. 11, 2015> |
| Article 33 (Use of Personal Credit Information) |
Personal credit information shall be used only for the purpose of determining whether a commercial transaction relationship requested by the relevant owner of credit information, including financial transactions, is established and maintained: Provided, That the same shall not apply in any of the following cases: <Amended by Act No. 13216, Mar. 11, 2015>
| 1. | Where an individual consents, in such a manner prescribed by any subparagraph of Article 32 (1), to use his/her personal credit information for purposes other than that defined in the main sentence, excluding each subparagraph of this Article; |
| 2. | Where the personal credit information, which has been directly provided by an individual (including the credit information obtained through commercial transactions with the individual) is used for the original purposes(excluding the purposes of introducing or soliciting goods and services); |
| 3. | Cases specified in subparagraphs of Article 32 (6); |
| 4. | Other cases equivalent to provisions of subparagraphs 1 through 3, determined by Presidential Decree. |
| Article 34 (Provision and Use of Personal Identification Information) |
Articles 32 and 33 shall apply mutatis mutandis to where a credit information provider/user provides or uses any information prescribed by Presidential Decree which is necessary for identifying an individual. [This Article Wholly Amended by Act No. 13216, Mar. 11, 2015]
| Article 35 (Fact-finding Inquiries into Use and Provision of Credit Information) |
Where a credit information company, etc. has used or provided any personal credit information, it shall allow the owner of credit information to inquire into the matters classified as follows: Provided, That the same shall not apply in cases prescribed by Presidential Decree, such as where it has been used for internal business management or provided for repeated outsourcing of business affairs:
| 1. | Where any personal credit information is used: Person who has used the credit information, purpose of use, date of use, details of the credit information used, and other matters prescribed by Presidential Decree; |
| 2. | Where any personal credit is provided: Person who has provided and person who has obtained the credit information, purpose of provision, date of provision, details of the credit information provided, and other matters prescribed by Presidential Decree. |
| (2) | If requested by an owner of credit information who has inquired under paragraph (1), the relevant credit information company, etc. shall notify the matters classified in subparagraphs of paragraph (1), to the owner of credit information as prescribed by Presidential Decree, when it uses or provides any of his/her personal credit information. |
| (3) | A credit information company, etc. shall notify each owner of credit information that he/she can request notifications under paragraph (2). |
[This Article Wholly Amended by Act No. 13216, Mar. 11, 2015]
| Article 36 (Notification, etc. of Credit Information Giving Rise to Refusal of Commercial Transaction) |
| (1) | Where a credit information provider/user refuses or cancels a commercial transaction relationship with its counterparty on the basis of personal credit information prescribed by Presidential Decree, which has been provided by a credit bureau and a credit information collection agency, the credit information provider/user shall, upon the request of the relevant owner of credit information, notify the relevant owner of credit information of the matters prescribed by Presidential Decree, including the credit information that gave rise to the refusal or cancellation thereof. |
| (2) | Where an owner of credit information has any objection to the details of his/her own information notified under paragraph (1), he/she may request, within 60 days from the receipt of such notification under paragraph (1), the credit bureau and the credit information collection agency, which have collected and provided such information, to verify the accuracy of such information. |
| (3) | With regard to the procedures for verification under paragraph (2), Article 38 shall apply mutatis mutandis. |
| Article 37 (Rights, etc. to Revoke Consent to Provide and Use Personal Credit Information) |
| (1) | An individual owner of credit information may revoke, as prescribed by Presidential Decree, the consent which has been provided to a credit information provider/user in ways prescribed by any subparagraph of Article 32 (1) to provide his/her personal credit information for purposes other than assessing the individual's credit worthiness, etc. by forwarding such information to a credit bureau or a credit information collection agency: Provided, That where it becomes difficult to perform a contract or serve the purposes set out in the main sentence exceeding each subparagraph of Article 33, including failure to perform certain services agreed with the owner of credit information, unless the personal credit information concerned is provided to another credit information provider/user that has not obtained his/her consent, if the customer intends to revoke consent, he/she shall clarify his/her intention not to be provided with the services concerned. |
| (2) | An individual owner of credit information may, as prescribed by Presidential Decree, request a credit information provider/user to stop contacting him/her for the purpose of introducing or soliciting goods or services. |
| (3) | A credit information provider/user shall notify the individual who is a counterparty, of the details of the rights and means to exercise such rights under paragraphs (1) and (2), in writing, via electronic documents, or orally, and, if he/she makes a demand under paragraphs (1) and (2), it shall immediately comply with such demand. In such cases, if such notification has been made orally, the additional post-notification procedures prescribed by Presidential Decree shall be followed. |
| (4) | A credit information provider/user shall have a procedure in place to perform the obligations under paragraph (3), as prescribed by Presidential Decree. |
| (5) | A credit information provider/user shall take necessary measures, as prescribed by Presidential Decree, to prevent an individual owner of credit information from bearing the monetary costs arising from such demand under paragraph (2), including telephone bills. |
| Article 38 (Demand for Perusal and Correction of Credit Information, etc.) |
| (1) | An owner of credit information may request a credit information company, etc. to provide him/her with his/her own information retained by the credit information company, etc. or allow him/her to make a perusal thereof by presenting a certificate identifying them or having their identity checked in ways prescribed by Presidential Decree, including telephone, Internet homepage, etc. If his/her own information is incorrect, he/she may demand correction thereof, as determined and publicly notified by the Financial Services Commission. |
| (2) | A credit information company, etc. requested to make such correction under paragraph (1) shall, if justifiable grounds are deemed to exist, immediately fill in phrases stating that the credit information in question is being requested for correction or subject to fact-finding inquiries. It shall stop providing and using the credit information concerned, without delay, and examine as to whether it is true. If such information turns out to be incorrect or unverifiable, the credit information shall be deleted or corrected. |
| (3) | A credit information company, etc. which made a deletion or correction under paragraph (2), shall notify any person who has obtained such information within the last six months and any person who the owner of credit information requests to be advised of the details of the deleted or corrected credit information. |
| (4) | A credit information company, etc. shall inform the owner of credit information of the results of the actions taken under paragraphs (2) and (3) within seven days, and if any objection to such result of the actions exists, the owner of credit information may request the Financial Services Commission to make a correction thereto, as prescribed by Presidential Decree. |
| (5) | Upon the receipt of a request for correction under paragraph (4), the Financial Services Commission shall have the Governor of the Financial Supervisory Services established under Article 24 of the Act on the Establishment, etc. of Financial Services Commission (hereinafter referred to as the "FSS Governor") examine as to whether such information is correct and, according to its findings, may order the credit information company, etc. to make a correction or take other necessary measures. |
| (6) | A person who examines factuality under paragraph (5) shall carry a certificate indicating his/her authority to present it to persons concerned. |
| (7) | Where a credit information company, etc. has implemented corrective measures in accordance with a corrective order by the Financial Services Commission under paragraph (5), it shall report the results to the Financial Services Commission. |
| Article 38-2 (Requests for Notification of Credit Inquiry) |
| (1) | An owner of credit information may request a credit bureau to notify him/her of an inquiry being made into his/her personal credit information. In such cases, the identity of the owner of credit information shall be verified in a manner determined by the Financial Services Commission. |
| (2) | A credit bureau in receipt of request made under paragraph (1) shall, when any inquiry prescribed by Presidential Decree, such as an inquiry which may result in the illegal use of other's name, is made, suspend the provision of information for the relevant inquiry and notify such fact to the relevant owner of credit information without delay. |
| (3) | Matters necessary for the methods to suspend the provision of information and notification thereof under paragraph (2), bearing of expenses incurring from notification, etc. shall be prescribed by Presidential Decree. |
[This Article Newly Inserted by Act No. 13216, Mar. 11, 2015]
| Article 38-3 (Request for Deletion of Personal Credit Information) |
| (1) | Where his/her commercial transaction relationship, including financial transactions, is terminated and the period prescribed by Presidential Decree has passed, an owner of credit information may request the credit information provider/user to delete his/her personal credit information: Provided, That the same shall not apply in any of the cases falling under subparagraph of Article 20-2 (2). |
| (2) | Upon receipt of request made under paragraph (1), the credit information provider/user shall delete the relevant personal credit information without delay and notify the result thereof to the owner of credit information. |
| (3) | Where a request by an owner of credit information falls under the proviso to paragraph (1), the credit information provider/user shall manage the personal credit information as prescribed by Presidential Decree, such as managing it by separating it from other private credit information, and notify the result thereof to the owner of credit information. |
| (4) | Methods of notification to be made under paragraphs (2) and (3) shall be determined and publicly notified by the Financial Services Commission. |
[This Article Newly Inserted by Act No. 13216, Mar. 11, 2015]
| Article 39 (Right to Free Perusal) |
A credit bureau shall allow an individual owner of credit information to be provided with his/her own information or make a perusal thereof on a free-of-charge basis, once or more, at regular intervals prescribed by Presidential Decree, not exceeding one year.
| Article 39-2 (Notification, etc. of Divulgence of Credit Information) |
| (1) | When a credit information company, etc. becomes aware that any credit information has been divulged for any purpose other than for its business, it shall notify the following matters to the relevant owner of credit information without delay: |
| 1. | Items of credit information divulged; |
| 2. | Time and details of the divulged; |
| 3. | Information on the methods, etc. the owner of credit information can use to minimize the possible damage from the divulgence; |
| 4. | Countermeasures of the credit information company, etc., and procedures for relief from damage; |
| 5. | Department in charge which receives a report, etc. when any damage occurs to the owner of credit information and its contact details. |
| (2) | If any credit information is divulged, the credit information company, etc. shall formulate measures to minimize the damage and take necessary measures. |
| (3) | If any credit information is disclosed to the extent exceeding the scale prescribed by Presidential Decree, the credit information company, etc. shall report without delay, the results of notification under paragraph (1) and measures taken under paragraph (2), to the Financial Services Commission or a specialized agency prescribed by Presidential Decree (hereafter referred to as the "Financial Services Commission, etc." in this Article). In such cases, the Financial Services Commission, etc. may provide support for technology to mitigate damage, rectify the damage, etc. |
| (4) | Upon receipt of report made under paragraph (3), the Financial Services Commission, etc. shall notify it to the Ministry of the Interior and Safety. <Amended Act No. 14839, Jul. 26, 2017> |
| (5) | The Financial Services Commission, etc. may investigate the measures taken by a credit information company, etc. under paragraph (2), and may request it to rectify such where such measures are deemed insufficient. |
| (6) | Matters necessary for the timing, methods, procedures, etc. for notifications to be made under paragraph (1), shall be prescribed by Presidential Decree. |
[This Article Newly Inserted by Act No. 13216, Mar. 11, 2015]
| Article 40 (Prohibited Matters for Credit Information Company, etc.) |
No credit information company, etc. shall engage in conducting any of the acts defined in the following subparagraphs, and no person, other than a credit information company, etc., shall perform any act defined in the main sentence of subparagraph 4 as its business or conduct any act defined in subparagraph 5: <Amended by Act No. 13216, Mar. 11, 2015>
| 1. | Providing the client with false information; |
| 2. | Coercing a relevant person into complying with the request for investigation of credit information; |
| 3. | Coercing an investigation subject into providing investigative data and answering questions; |
| 4. | Finding out a certain person's whereabouts and contacts (hereinafter referred to as "whereabouts, etc.") or investigating his/her private life, other than commercial transaction relationships, including financial transactions: Provided, That where a credit information company permitted to engage in claims collection business finds out a certain person's whereabouts, etc. to conduct its business or it is allowed to find out a certain person's whereabouts, etc. pursuant to other statutes, the same shall apply; |
| 5. | Using titles, including "intelligence service agent", "detective", or other titles similar thereto; |
| 6. | Deleted; <by Act No. 11845, May 28, 2013> |
| 7. | Using any personal information or personal identification information in transmission of commercial advertisement information by using an electronic medium or a method prescribed by Presidential Decree: Provided, That any of the following cases shall be excluded: |
| (a) | Where a special consent is obtained from the relevant owner of credit information; |
| (b) | Where necessary for the maintenance and management of existing financial transactions; |
| (c) | Other cases prescribed by Presidential Decree. |
| Article 41 (Prohibited Matters for Claims Collection Agency) |
| (1) | No claims collection agency shall lend its name to another person to allow him/her to do claims collection business. |
| (2) | No claims collection agency shall use words other than the phrase containing "credit information" for its trade name unless otherwise allowed by other statutes: Provided, That in cases where a claims collection agency engages in credit inquiry business or credit rating business after obtaining authorization for credit rating business under Article 335-3 (1) of the Financial Investment Services and Capital Markets Act as well, the same shall not apply. <Amended by Act No. 11845, May 28, 2013> |
| Article 41-2 (Verification, etc. of Recruitment Channels of Agents of Recruitment Business) |
| (1) | Where a credit information provider/user outsources recruitment business (referring to the business of concluding contracts related to his/her business on behalf of other persons or mediating such contracts, regardless of how named; hereinafter the same shall apply) to a third party for operating his/her business, he/she shall verify the following matters as to the person outsourced with such recruitment business and prescribed by Presidential Decree (hereinafter referred to as "agent of recruitment business"): |
| 1. | Whether any credit information acquired or provided by fraudulent or other wrongful means or methods (hereinafter referred to as "illegally acquired credit information") is used in the recruitment business; |
| 2. | Channels through which personal credit information, etc. used in the recruitment business is acquired; |
| 3. | Other matters prescribed by Presidential Decree. |
| (2) | If a credit information provider/user verifies that an agent of recruitment business has used illegally acquired credit information in recruitment business, he/she shall terminate the entrustment contract with the relevant agent of recruitment business. |
| (3) | Upon terminating the outsourcing contract with an agent of recruitment business under paragraph (2), a credit information provider/user shall notify this to the Financial Services Commission or a registration agency prescribed by Presidential Decree. |
| (4) | Matters necessary for verification under paragraph (1) and timing, methods, etc. of reporting under paragraph (3) shall be prescribed by Presidential Decree. |
[This Article Newly Inserted by Act No. 13216, Mar. 11, 2015]
| Article 42 (Prohibition of Divulgence, etc. for Non-Business Purposes) |
| (1) | No person who is or was an executive officer or employee of a credit information company, etc., and an outsourced agent of the processing of credit information under Article 17 (2) (hereinafter referred to as "person related with credit information business") shall divulge or use any personal confidential information, including credit information and privacy (hereinafter referred to as "personal confidential information") acquired during the course of business for non-business purposes. |
| (2) | No act that a credit information company, etc., and a person related with credit information business provide credit information for a credit information company, etc. under this Act shall be deemed to be the divulgence or use of credit information for non-business purposes under paragraph (1). |
| (3) | If a person who has obtained personal confidential information divulged, in violation of paragraph (1) (including another person who obtains such divulged personal confidential information from such person) learns that such personal confidential information has been divulged in breach of paragraph (1), the person shall not supply or use such personal confidential information. |
| (4) | No person who has obtained personal credit information from a credit information company, etc., and a person related with credit information business, shall not provide such personal credit information to any other person: Provided, That in cases where such provision is allowed by this Act or other Acts, the same shall not apply. |
| Article 42-2 (Imposition, etc. of Penalty Surcharges) |
| (1) | Where any of the following offences are committed, the Financial Services Commission may impose a penalty surcharge in an amount equivalent to 3/100 of the amount of sales derived from a violation prescribed by Presidential Decree on the relevant credit information company, etc.: Provided, That where an offence falling under subparagraph 1 is committed, it may impose a penalty surcharge not exceeding five billion won: |
| 1. | Where any personal confidential information is lost, stolen, disclosed, altered or compromised, in violation of Article 19 (1); |
| 2. | Where it discloses or uses any personal confidential information for any purpose other than for business purpose, in violation of Article 42 (1); |
| 3. | Where it provides any personal confidential information to any other person or uses it knowing that it has been illegally divulged, in violation of Article 42 (3). |
| (2) | In imposing penalty surcharges under paragraph (1), when a credit information company, etc. refuses to submit data for calculation of sales amount or submits false data, the sales amount may be estimated on the basis of the data, such as the financial statements or other financial data, of a credit information company, etc. the scale of which is similar to that of the relevant credit information company, etc.: Provided, That if no sales amount exists, or in cases prescribed by Presidential Decree where it is impractical to calculate sales amount, a penalty surcharge may be imposed not exceeding 20 billion won. |
| (3) | In imposing a penalty surcharge under paragraph (1), the Financial Services Commission shall take the following matters into consideration: |
| 1. | Details and severity of the violation; |
| 2. | Duration and frequency of the violation; |
| 3. | Amount of gains acquired by committing the violation. |
| (4) | A penalty surcharge under paragraph (1) shall be calculated based on matters prescribed in paragraph (3), and the detailed standards and procedures for calculation thereof shall be prescribed by Presidential Decree. |
| (5) | If a person subject to payment of a penalty surcharge under paragraph (1) fails to pay it by the payment deadline, the Financial Services Commission shall collect the late payment penalty equivalent to 6/100 per annum of the unpaid penalty surcharge from the day following the payment deadline. In such cases, the period for collecting of the penalty surcharge shall not exceed 60 months. <Amended by Act No. 14823, Apr. 18, 2017> |
| (6) | If a person obligated to pay a penalty surcharge under paragraph (1) fails to pay it by the payment deadline, the Financial Services Commission shall demand the payment by a fixed deadline, and if the penalty surcharge and the late payment penalty referred to in paragraph (5) are not paid within the fixed period, they shall be collected in the same manner as the delinquent national taxes are collected. |
| (7) | Where any penalty surcharge imposed under paragraph (1) is to be refunded in accordance with the judgment of the court, etc., an interest on the refund equivalent to 6/100 per annum shall be paid from the date the penalty surcharge is paid until the date of refund. |
| (8) | If a person prescribed by Presidential Decree, such as a recruiter who deals with a financial information provider/user after entering into an outsourcing contract (referring to a recruiter under subparagraph 2 of Article 14-2 of the Specialized Credit Finance Business Act) falls under any subparagraph of paragraph (1), he/she shall be deemed an employee of the relevant credit information provider/user to the extent of the relevant violation: Provided, That the same shall not apply where the relevant credit information provider/user has taken reasonable care and supervision in order to prevent such violation of the recruiter, etc. |
| (9) | Other matters necessary for the imposition and collection of penalty surcharges shall be prescribed by Presidential Decree. |
[This Article Newly Inserted by Act No. 13216, Mar. 11, 2015]
| Article 43 (Liability to Compensate for Damages) |
| (1) | Where a credit information company, etc., and other credit information users violate this Act and inflicted damage on an owner of credit information, they shall be liable to compensate such damage: Provided, That in cases where a credit information company, etc., and other credit information users have proven an absence of intention or negligence, the same shall not apply. |
| (2) | Where a credit information company, etc. or any other credit information user (including a consignee; hereafter the same shall apply in this Article) is responsible for divulging any personal credit information, in violation of this Act intentionally or gross negligence, or inflict to an owner of credit information any damage arising from the loss, stealth, leakage, alteration or compromise thereof, it shall be responsible to compensate the damage within the limit not exceeding three times the damage: Provided, That the same shall not apply where a credit information company, etc. or any other credit information user proves that it has had no such intention or has not committed gross negligence. <Newly Inserted by Act No. 13216, Mar. 11, 2015> |
| (3) | In determining an amount to be compensated under paragraph (2), the court shall take the following matters into consideration: <Newly Inserted by Act No. 13216, Mar. 11, 2015> |
| 1. | Degree of the knowledge of the possible intention or occurrence of loss; |
| 2. | Extent of damage suffered from the violation; |
| 3. | Economic gains acquired by the credit information company, etc. or any other credit information user by committing the violation; |
| 4. | Fines and penalty surcharges for the violation; |
| 5. | Duration, frequency, etc. of the violation; |
| 6. | Economic status of the credit information company, etc. or any other credit information user; |
| 7. | Degree of efforts exercised by the credit information company, etc. or any other credit information user in recollecting the relevant personal credit information after the loss, stealth, or leakage thereof; |
| 8. | Degree of efforts exercised by the credit information company, etc. or any other credit information user for damage relief. |
| (4) | Where a claims collection agency or a delegated claims collector has inflicted damage on obligors and persons related therewith, he/she shall compensate such damage: Provided, That where he/she has proven an absence of intention or negligence, the same shall not apply. |
| (5) | Where a credit information company which was requested to do the business set forth in Article 4 (1) has inflicted damage on a client for reasons attributable to the credit information company, it shall compensate such damage. |
| (6) | Where an outsourced agent of the processing of credit information under Article 17 (2) has inflicted damage on an owner of credit information, in violation of this Act, the outsourced agent of the business and the agent shall be jointly and severally liable to compensate such damage. |
| (7) | Where a delegated claims collector has violated this Act or the Fair Debt Collection Practices Act and inflicted damage on obligors or persons related therewith, the claims collection agency and delegated claims collector shall be jointly and severally liable to compensate such damage: Provided, That where the claims collection agency has proven an absence of intention or negligence, the same shall apply. |
| Article 43-2 (Claim for Statutory Damages) |
| (1) | If an owner of credit information falls under both of the following cases, he/she may claim compensation for damage not exceeding three million won within a period prescribed by Presidential Decree to a credit information company, etc. or any other credit information user (including an agent hereafter the same shall apply in this Article) in lieu of claiming damages under Article 43. In such cases, the relevant credit information company, etc. or no other relevant credit information user shall be exempt from its responsibility unless it proves it has had no intention or has not committed negligence: |
| 1. | Where the credit information company, etc. or any other credit information user has violated this Act by intention or negligence; |
| 2. | Where the personal credit information is lost, stolen, leaked, altered or compromised. |
| (2) | Where any claim is filed under paragraph (1), the court may recognize a corresponding amount of damages within the limit set forth in paragraph (1) based on the purport of the entire argument and the result of investigation of evidence. |
| (3) | A person who has filed a claim under Article 43 may change such claim to a claim prescribed in paragraph (1) before the argument is concluded by the court. |
[This Article Newly Inserted by Act No. 13216, Mar. 11, 2015]
| Article 43-3 (Guarantee of Compensation for Damage) |
A credit information company, etc. prescribed by Presidential Decree shall take measures necessary to fulfill the liability to compensate damage under Article 43, such as purchase of insurance, joining a mutual aid program, or accumulation of reserves, in accordance with the standards determined by the Financial Services Commission. [This Article Newly Inserted by Act No. 13216, Mar. 11, 2015]
| Article 44 (Credit Information Companies Association) |
| (1) | Credit information companies may establish a Credit Information Companies Association for the purposes of promoting sound development of credit information business and maintaining order in business among credit information companies. |
| (2) | The Credit Information Companies Association shall be a juristic person. |
| (3) | The Credit Information Companies Association shall carry out the business set forth in the following subparagraphs, as prescribed by its articles of association: |
| 1. | Maintaining sound business practices among credit information companies; |
| 2. | Engaging in research and study to develop credit information business; |
| 3. | Counseling and handling complaints filed by credit information business users; |
| 4. | Any other business prescribed by Presidential Decree. |
| (4) | Other matters concerning the Credit Information Companies Association not provided for in this Act shall apply mutatis mutandis the provisions on incorporated associations under the Civil Act. |
CHAPTER VII SUPPLEMENTARY PROVISIONS
| Article 45 (Supervision, Inspection, etc.) |
| (1) | The Financial Services Commission shall supervise as to whether a credit information company, etc. complies with this Act or orders under this Act. |
| (2) | The Financial Services Commission may, if deemed necessary for the supervision under paragraph (1), order a credit information company, etc. to report in relation to its business, financial standing, etc. |
| (3) | The FSS Governor may have the personnel of the Financial Supervisory Service inspect the business and financial standing of a credit information company, etc. under this Act. |
| (4) | The FSS Governor may, if deemed necessary for an inspection under paragraph (3), request a credit information company, etc. to submit data and have persons concerned attend meetings and state their opinions. |
| (5) | A person who conducts an inspection under paragraph (3) shall carry a certificate indicating his/her authority to present it to persons concerned. |
| (6) | The FSS Governor shall report the findings of an inspection under paragraph (3) to the Financial Services Commission, as prescribed by the Financial Services Commission. |
| (7) | If a credit information company, etc. is deemed likely to undermine sound management of credit information business and the rights and interests of an owner of credit information by breaching this Act or orders under this Act, the Financial Services Commission shall take measures set forth in any of the following subparagraphs or request the FSS Governor to take any of the actions set forth in subparagraphs 1 through 3: <Amended by Act No. 14823, Apr. 18, 2017> |
| 1. | Caution or warning to a credit information company, etc.; |
| 2. | Caution or warning to executive officers; |
| 3. | Request for disciplinary action, including caution, suspension from office, reduction in salary, and official reprimand, against employees; |
| 4. | Recommendation for dismissal of executive officers or suspension from office or demand for dismissal from office of employees; |
| 5. | Corrective order against violations; |
| 6. | Suspension of provision of credit information. |
| Article 46 (Notification of Content of Measure for Retired Executive Officer, etc.) |
| (1) | Where it is deemed that an executive office or employee retired from a credit information company, etc. would receive a measure falling under any of Article 45 (7) 2 through 4 if he/she held his/her office in such credit information company or were under employment by such credit information company, the Financial Commission (including the Governor of the Financial Supervisory Service empowered to make a measure pursuant to Article 45 (7)) may notify the content of such measure to the head of such credit information company, etc. |
| (2) | The head of the credit information company, etc. in receipt of the notification under paragraph (1) shall notify the relevant retired executive officer or employee of such notification, and record and keep the content of such measure. |
[This Article Newly Inserted by Act No. 14823, Apr. 18, 2017]
| Article 47 (Submission of Business Report) |
| (1) | A credit information company and a credit information collection agency shall prepare a quarterly business report in the format set forth by the FSS Governor and submit it to the FSS Governor by the last day of the month following the last month of every quarter. |
| (2) | The report under paragraph (1) shall state names and be affixed with seals of the representative, in-charge personnel or agent thereof. |
| (3) | Details and other matters necessary to prepare the business report under paragraph (1) shall be determined by the FSS Governor. |
Where the Financial Services Commission intends to revoke the license or authorization of a credit information company pursuant to Article 14 (1) or cancel the registration of a delegated claims collector pursuant to Article 27 (6), it shall hold a hearing.
| Article 49 (Delegation and Entrustment of Authority) |
The Financial Services Commission's authorities prescribed by Presidential Decree under this Act may be delegated or entrusted to the Special Metropolitan City Mayor, a Metropolitan City Mayor, Do Governor, a Special Self-Governing Province Governor, the FSS Governor, the Credit Information Companies Association, or other persons determined by Presidential Decree, as prescribed by Presidential Decree.
| Article 50 (Penalty Provisions) |
| (1) | Any person who violates Article 42 (1) or (3) shall be punished by imprisonment for not more than ten years or by a fine not exceeding 100 million won: |
| (2) | Any of the following persons shall be punished by imprisonment for not more than five years or by a fine not exceeding 50 million won: <Amended by Act No. 15146, Nov. 28, 2017> |
| 1. | Any person who provides any service provided for in subparagraphs of Article 4 (1) without obtaining permission or authorization therefor, in violation of Article 4 (2) or 10 (1); |
| 2. | Any person who obtains permission or authorization under Article 4 (2) or 10 (1) by false or other fraudulent means; |
| 5. | Any person who, without authorization, changes or deletes any information in a credit information computer system under Article 19 (1) or make it otherwise unusable, or a person who, without authorization, retrieves, duplicates or uses in other ways such credit information; |
| 5-2. | A person who entrusts claims collection service to a person other than a claims collection agency in violation of Article 27-2; |
| 6. | Any person who violates Article 32 (1) or (2) (including cases to which it applies mutatis mutandis under Article 34); |
| 7. | Any person who violates Article 33 (including the cases of application mutatis mutandis under Article 34); |
| (3) | Any of the following persons shall be punished by imprisonment for not more than three years or by a fine not exceeding 30 million won: |
| 1. | Any person who conducts business during a period of business suspension under Article 14 (2); |
| 2. | Any person, not being a credit information collection agency, who establishes the Common Computer Network under Article 25 (6); |
| 3. | Any person who violates any of subparagraphs 1 through 5 of Article 40; |
| 5. | Any person who has failed to verify whether an agent of recruitment business has used illegally acquired credit information in the recruitment business, etc., in violation of Article 41-2 (1). |
| (4) | Any of the following persons shall be punished by imprisonment for not more than one year or by a fine not exceeding ten million won: |
| 1. | Any person who obtains stocks without approval, in violation of Article 9 (1); |
| 2. | Any person who fails to dispose of stocks obtained without approval, in violation of an order under Article 9 (2); |
| 3. | Any person who outsources the processing of credit information to a person who fails to meet the given requirements, in violation of Article 17 (2) and an outsourced agent; |
| 6. | Any person who renders claims collection service without registering with the Financial Services Commission as a delegated claims collector, in violation of Article 27 (3); |
| 8. | Any person who, in violation of Article 27 (5), collects claims that are not the object of collection, or who renders claims collection service through a delegated claims collector who is not registered, or who has been registered with another claims collection agency, or who is suspended from his/her business; |
| 9. | Any person who renders claims collection service during a period of business suspension under Article 27 (7). |
[This Article Wholly Amended by Act No. 13216, Mar. 11, 2015]
| Article 51 (Joint Penalty Provisions) |
Where the representative of a juristic person, or the agents, employees, or any other person employed by a juristic person or individual violates the provisions of Article 50 in connection with business of the juristic person or individual, the fine referred to in the relevant Article shall be imposed upon the juristic person or individual concerned in addition to the violator: Provided, That in cases where the juristic person or individual has not been negligent in exercising due care and oversight in relation to the relevant business to prevent such violation, the same shall not apply.
| Article 52 (Administrative Fines) |
| (1) | Any of the following persons shall be punished by an administrative fine not exceeding 50 million won: <Amended by Act No. 14823, Apr. 18, 2017; Act No. 15146, Nov. 28, 2017> |
| 1. | A person who, even though it is not a permitted credit information company, uses in its trade name, any expression containing credit information, credit investigation, or any other similar thereto in violation of Article 12; |
| 4-2. | A claims collection agency where its delegated claims collector violates Article 27 (9) 1: Provided, That this shall not apply to cases where the claims collection agency does not neglect to pay due diligence to the management of the relevant services in order to prevent such violation; |
| 6. | A person who fails to terminate an outsourcing contract with an agent of recruitment business, in violation of Article 41-2 (2); |
| 7. | A person who fails to comply with any order under Article 45 (2) through (4) or refuses, obstructs, or evades any inspection or request thereunder; |
| 8. | A person who fails to submit a report or submits an untruthful report in violation of Article 47. |
| (2) | Any of the following persons shall be punished by a fine for negligence not exceeding 30 million won: <Amended by Act No. 15146, Nov. 28, 2017> |
| 5-2. | A claims collection agency where its delegated claims collector violates Article 27 (9) 2: Provided, That this shall not apply to cases where the claims collection agency does not neglect to pay due diligence to the management of the relevant services in order to prevent such violation; |
| 6. | A person who violates Article 32 (8) or (9) (including cases to which it applies mutatis mutandis under Article 34); |
| 9. | A person who violates Article 38 (2) through (5) or (7); |
| 13. | A person who fails to notify the matters prescribed in subparagraphs of Article 39-2 (1) to the relevant owner of credit information, in violation of any subparagraph of Article (1); |
| 14. | A person who fails to report the result of measures taken, in violation of Article 39-2 (3); |
| 15. | A person who violates subparagraph 7 of Article 40. |
| (3) | Any person who violates Article 10 (4) or 17 (7) shall be punished by a fine for negligence not exceeding 20 million won. |
| (4) | Any of the following person shall be punished by a fine for negligence not exceeding ten million won: <Amended by Act No. 14823, Apr. 18, 2017> |
| 2. | A person who violates Article 11 or through 13; |
| 3. | A person who, in violation of Article 17 (1), outsources the collection and investigation of credit information without consent of the client; |
| 7. | A person who fails to submit a report to the Financial Services Commission, in violation of Article 22-2; |
| 8. | A person who fails to present a certificate in conducting claims collection business, in violation of Article 27 (8); |
| 10. | A person who violates Article 32 (3), (7) or (10) (including cases to which it applies mutatis mutandis under Article 34); |
| 12. | A person who fails to notify the termination of an outsourcing contract, in violation of Article 41-2 (3); |
| 13. | and 14. Deleted. <by Act No. 14823, Apr. 18, 2017> |
| (5) | Administrative fines under paragraphs (1) through (4) shall be imposed and collected by the Financial Services Commission, as prescribed by Presidential Decree. |
| (6) | Where a claims collection agency falling under the main sentence of paragraph (1) 4-2 receives a criminal punishment pursuant to the Fair Debt Collection Practices Act, an administrative fine shall not be imposed on such agency, and where the claim collection agency receives a criminal punishment after an administrative fine has been imposed, the imposition of such administrative fine shall be cancelled. <Newly Inserted by Act No. 15146, Nov. 28, 2017> |
[This Article Wholly Amended by Act No. 13216, Mar. 11, 2015]
ADDENDA
Article 1 (Enforcement Date)
This Act shall enter into force six months after the date of its promulgation.
Article 2 (Applicability to Use of Similar Names)
No person who has used the title "credit rating" or similar in his/her trade name before the Credit Information Use and Protection Act enters into force as amended by Act No. 6428, shall be governed by the amended provisions of Article 12. Article 3 (Special Cases concerning Provision and Utilization of Personal Credit Information)
Where a credit information provider/user has established commercial transaction relationships, including financial transactions, with an owner of credit information by verifying his/her personal credit information and obtaining consent therefrom under the amended provisions of Article 32 (1) before this Act enters into force, if a credit information provider/user intends to obtain personal credit information of the owner of credit information for the purpose of maintaining and managing such commercial transaction relationship, including financial transactions, the amended provisions of Article 32 (2) shall not apply.
Article 4 (Transitional Measures concerning Credit Information Business Owner)
A credit information business owner licensed to engage in credit information business pursuant to the previous provisions at the time this Act enters into force shall be deemed to have been licensed as a credit information company under this Act.
Article 5 (Transitional Measures concerning Penalty Provisions and Administrative Fines)
Where penalty provisions or administrative fines have been imposed against any act conducted before this Act enters into force, the previous provisions shall apply.
Article 6 (Transitional Measures concerning Credit Investigation Company)
| (1) | Where a person who has been licensed to engage in credit investigation business in accordance with the Credit Investigation Business Act repealed by the Credit Information Use and Protection Act (Act No. 4866), meets the capital requirements under the amended provisions of Article 6 (2) 1, notwithstanding the amended provisions of Article 5 (1), he/she may be licensed to engage in credit inquiry business. If he/she meets the capital requirements under the amended provisions of Article 6 (2) 2, notwithstanding the amended provisions of Article 5 (1), he/she may be licensed to engage in claims collection business. |
| (2) | Where a person who has been licensed to engage in credit investigation business under paragraph (1), intends to transfer such business, the transferee shall be a juristic person licensed to engage in credit information business under the amended provisions of Article 4 (2). |
Article 7 (Transitional Measures concerning Permit for Modification)
A person licensed for modification of his/her credit information business in accordance with the previous provisions at the time this Act enters into force shall be deemed to have declared or reported such modification under the amended provisions of Article 8.
Article 8 (Transitional Measures concerning Approval for Change in Controlling Shareholder)
The controlling shareholder of a credit information company at the time this Act enters into force shall be deemed to have been approved for the change in controlling shareholder under the amended provisions of Article 9.
Article 9 (Transitional Measures concerning Disqualifications for Persons Engaged in Credit Information Business)
Where any person engaged in credit information business at the time this Act enters into force is disqualified under the amended provisions of Articles 22 (1), 27 (1) and 28, on grounds that occurred before this Act enters into force, notwithstanding such amended provisions, the previous provisions shall apply.
Article 10 (Transitional Measures concerning Registration of Delegated Claims Collector)
Notwithstanding the amended provisions of Article 27 (5), a claims collection agency may render claims collection service through its own delegated claims collectors unregistered in accordance with the amended provisions of Article 27 (3) as of the date this Act enters into force: Provided, That they shall be registered pursuant to the amended provisions of Article 27 (3) within three months from the date this Act enters into force, and no claims collection agency shall render any claims collection service through any delegated claims collector unregistered after the aforementioned period lapses.
Article 11 (Transitional Measures concerning Establishment of Association, etc.)
An incorporated credit information association established by the Civil Act before this Act enters into force shall be deemed the Credit Information Companies Association established under the amended provisions of Article 44. Article 12 Omitted.
Article 13 (Relationship with other Statutes)
In the event that other statutes cite the previous provisions of the Credit Information Use and Protection Act at the time this Act enters into force, if the cited provisions exist in this Act, the provisions of this Act shall be deemed to have been cited in lieu of the previous provisions.
ADDENDA <Act No. 10228, Apr. 5, 2010>
Article 1 (Enforcement Date)
This Act shall enter into force three months after the date of its promulgation.
Articles 2 through 5 Omitted.
ADDENDA <Act No. 10465, Mar. 29, 2011>
Article 1 (Enforcement Date)
This Act shall enter into force six months after the date of its promulgation. (Proviso Omitted.)
Articles 2 through 7 Omitted.
ADDENDUM <Act No. 10690, May 19, 2011>
This Act shall enter into force three months after the date of its promulgation.
ADDENDA <Act No. 11690, Mar. 23, 2013>
Article 1 (Enforcement Date)
| (1) | This Act shall enter into force on the date of its promulgation. |
Articles 2 through 7 Omitted.
ADDENDA <Act No. 11845, May 28, 2013>
Article 1 (Enforcement Date)
This Act shall enter into force three months after the date of its promulgation. (Proviso Omitted.)
Articles 2 through 17 Omitted.
ADDENDA <Act No. 12844, Nov. 19, 2014>
Article 1 (Enforcement Date)
This Act shall enter into force on the date of its promulgation. (Proviso Omitted.)
Articles 2 through 7 Omitted.
ADDENDA <Act No. 13216, Mar. 11, 2015>
Article 1 (Enforcement Date)
This Act shall enter into force six months after the date of its promulgation: Provided, That the amended provisions of Articles 20-2 and 32, subparagraph 3 of Article 33, Articles 34, 35, 38-2, and 38-3 shall enter into force one year after the date of its promulgation.
Article 2 (Applicability to Investment Requirements of Credit Information Companies)
The amended provisions of Article 14 (1) 2 shall apply beginning with the first credit information company, the stocks of which are listed on the securities market under Article 8-2 (4) 1 of the Financial Investment Services and Capital Market Act after this Act enters into force.
Article 3 (Applicability to Cancellation of Permission or Authorization)
The amended provisions of Article 14 (1) 5 shall apply beginning with the first credit information company that receives a disposition of business suspension after this Act enters into force.
Article 4 (Applicability to Business Suspension)
| (1) | The amended provisions of Article 14 (2) 4 and 8 shall apply beginning with the first credit information company that commits a violation after this Act enters into force. |
| (2) | The amended provisions of Article 14 (2) 6 shall apply beginning with the first credit bureau that provides credit information to its affiliated company, etc. after this Act enters into force. |
Article 5 (Applicability to Imposition of Penalty Surcharges)
The amended provisions of Article 42-2 shall apply beginning with the first credit information company, etc. which commits a violation after this Act enters into force.
Article 6 (Applicability to Liability to Compensate for Damage)
The amended provisions of Article 43 shall apply beginning with the credit information company, etc. or any other credit information user that assumes responsibility to compensate for damage due to divulgence of credit information after this Act enters into force.
Article 7 (Applicability to Responsibility for Statutory Damages)
The amended provisions of Article 43-2 shall apply beginning with the first credit information company, etc. or any other credit information user that assumes responsibility to compensate for damage due to divulgence of credit information after this Act enters into force.
Article 8 (Transitional Measures concerning Incidental Services or Concurrent Operation of Business Services of Credit Bureaus)
| (1) | Where a credit bureau has been conducting any incidental service under the former provisions of Article 4 (1) or concurrent operation of business services under Article 11 as at the time this Act enters into force, the existing contracts shall be governed by the former provisions for three years after this Act enters into force, notwithstanding the amended provisions of Articles 4 (1) 1 and 11 (2). |
| (2) | Notwithstanding the amended provisions of Article 4 (1) 1, a credit bureau may render the service to notify the change of addresses of owners of credit information on behalf of the information owner for one and a half year after this Act enters into force. |
Article 9 (Transitional Measures concerning Outsourcing of Processing of Credit Information)
Notwithstanding the amended provisions of Article 17, the processing of credit information that has been outsourced under the former provisions as at the time this Act enters into force shall be governed by the former provisions.
Article 10 (Transitional Measures concerning Deletion of Personal Credit Information)
Notwithstanding the amended provisions of Article 20-2 (2), a credit information provider/user who keeps personal credit information for which five years have passed after the commercial relationship was terminated as at the time Article 20-2 (2) enters into force, shall delete the relevant personal credit information within three months after the same amended provisions enters into force.
Article 11 (Transitional Measures concerning Registration, etc. of Credit Information Collection Agency)
| (1) | A credit information collection agency registered under the former provisions as at the time this Act enters into force shall be deemed permitted by the Financial Services Commission under the amended provisions of Article 25: Provided, That the relevant credit information collection agency shall fulfill the requirements under this Act and obtain permission from the Financial Services Commission within six months after this Act enters into force. |
| (2) | The Credit Information Council established under the centralized credit information collection agency under the former provisions as at the time this Act enters into force shall be deemed the Committee for Intensive Management of Credit Information under the amended provisions of Article 26: Provided, That the relevant credit information collection agency shall satisfy the amended provisions of Article 26-2 before applying for permission with the Financial Services Commission under the proviso to paragraph (1). |
Article 12 (Transitional Measures concerning Consent to Provision and Utilization of Personal Credit Information)
Where any personal credit information has been provided and utilized legitimately by a credit information provider/user under the former provisions as at the time the amended provisions of Article 32 enter into force, it shall be deemed that the consent is obtained under the same amended provisions.
Article 13 (Transitional Measures concerning Provision and Use of Personal Identification Information)
Where a credit information provider/user has obtained a consent for provision and use of any personal identification information under the former provisions as at the time the amended provisions of Article 34 enter into force, it shall be deemed that the consent has been obtained under the amended provisions.
Article 14 (Transitional Measures concerning Penalty and Administrative Fines)
The application of penalty or administrative fines for any offence committed before this Act enters into force shall be governed by the former provisions.
Article 15 Omitted.
ADDENDA <Act No. 13337, Jun. 22, 2015>
Article 1 (Enforcement Date)
This Act shall enter into force on the date of its promulgation.
Articles 2 through 5 Omitted.
ADDENDA <Act No. 14122, Mar. 29, 2016>
Article 1 (Enforcement Date)
This Act shall enter into force six months after the date of its promulgation.
Articles 2 through 5 Omitted.
ADDENDA <Act No. 14823, Apr. 18, 2017>
Article 1 (Enforcement Date)
This Act shall enter into force six months after the date of its promulgation.
Article 2 (Applicability to Limitations on Qualification for Executive Officers or Employees)
The amended provisions of Articles 22 (1) 8 and 27 (1) 9 shall apply beginning with the first person who falls under any such cause for limiting qualification for executive officers or employees as occurs after this Act enters into force.
Article 3 (Applicability to Period for Collecting Additional Dues)
The amended provisions of the latter part of Article 42-2 (5) shall also apply to cases of having failed to pay an additional due within the time limit for payment before this Act enters into force, but an additional due shall not be collected with respect to the period elapsed after this Act enters into force, if the time limit for more than 60 months has elapsed since the time limit for its collection expired as at the time this Act enters into force.
Article 4 (Applicability to Notification of Content of Measures for Retired Executive Officers, etc.)
The amended provisions of Article 46 shall also apply to the executive officers and employees who have committed any violation before this Act enters into force, but retires thereafter.
Article 5 (Transitional Measures concerning Incompetent Persons, etc.)
Notwithstanding the amended provisions of Articles 22 (1) 2 and 27 (1) 2, the former provisions shall apply to persons who have already been declared incompetent or quasi-incompetent as at the time this Act enters into force and for whom such declaration remains effective under Article 2 of the addenda of partial amendment to the Civil (Act No. 10429).
Article 6 (Transitional Measures concerning Demand for Suspension of Performance of Duties of Executive Officers)
Notwithstanding the amended provisions of Article 45 (7) 4, the former provisions shall apply to any violations committed before this Act enters into force.
ADDENDA <Act No. 14839, Jul. 26, 2017>
Article 1 (Enforcement Date)
This Act shall enter into force on the date of its promulgation: Provided, That among the Presidential Decrees amended pursuant to Article 5 of this Addenda, the parts amending the Presidential Decrees the enforcement dates of which do not yet arrive shall enter into force on the dates on which the relevant Presidential Decrees enter into force, respectively.
Articles 2 through 6 Omitted.
ADDENDUM <Act No. 15146, Nov. 28, 2017>
This Act shall enter into force six months after the date of its promulgation.