ACT ON SPECIAL ACCOUNT FOR POSTAL INSURANCE
Act No. 3643, Dec. 31, 1982
Amended by Act No. 3873, Dec. 26, 1986
Act No. 5454, Dec. 13, 1997
Act No. 5982, May 24, 1999
Act No. 6144, Jan. 12, 2000
Act No. 6529, Dec. 19, 2001
Act No. 8635, Aug. 3, 2007
Act No. 8852, Feb. 29, 2008
Act No. 9375, Jan. 30, 2009
Act No. 11690, Mar. 23, 2013
Act No. 14839, Jul. 26, 2017
In order to efficiently operate the postal insurance business under the Postal Savings and Insurance Act, Special Accounts for Postal Insurance shall be established, and the revenue of the Accounts shall be appropriated for the expenditure of the Accounts. [This Article Wholly Amended by Act No. 9375, Jan. 30, 2009]
| Article 2 (Management of Accounts) |
The Special Accounts for Postal Insurance (hereinafter referred to as the "Accounts") shall be managed by the Minister of Science and ICT. <Amended by Act No. 11690, Mar. 23, 2013; Act No. 14839, Jul. 26, 2017>
[This Article Wholly Amended by Act No. 9375, Jan. 30, 2009]
| Article 3 (Revenues and Expenditures) |
| (1) | The revenue of the Accounts shall be as follows: |
| 1. | Additional insurance premiums [referring to insurance premiums added to net insurance premiums in order to appropriate them for expenses necessary for the operation of the postal insurance business under the Postal Savings and Insurance Act (hereinafter referred to as the "insurance business")]; |
| 2. | The postal insurance reserve under Article 4 (1) or transfers and loans from other accounts; |
| (2) | The expenditure of the Accounts shall be as follows: |
| 1. | Expenses for operation of the insurance business; |
| 2. | Repayments for loans borrowed and interest thereon; |
| 3. | Costs invested in insurance facilities; |
| 4. | Subsidies for the installation and operation of insurance facilities. |
[This Article Wholly Amended by Act No. 9375, Jan. 30, 2009]
| Article 4 (Creation, etc. of Postal Insurance Reserve) |
| (1) | A postal insurance reserve (hereinafter referred to as "reserve") shall be created separately from the revenue and expenditure in order to appropriate it for the liability reserve for the payment of insurance proceeds, refunds, and other insurance benefits. |
| (2) | The reserve shall be raised from the following revenues: |
| 1. | Net insurance premiums (referring to the insurance premiums less additional insurance premiums); |
| 2. | Gains on the operation of the reserve; |
| 3. | Surpluses after the settlement of the revenue and expenditure of the Accounts. |
| (3) | Insurance proceeds, refunds, and other insurance benefits shall be disbursed from the reserve. |
[This Article Wholly Amended by Act No. 9375, Jan. 30, 2009]
| Article 5 (Operation of Reserve) |
| (1) | The reserve shall be operated and managed by the Minister of Science and ICT. <Amended by Act No. 11690, Mar. 23, 2013; Act No. 14839, Jul. 26, 2017> |
| (2) | The reserve shall be operated in a manner that ensures stability, liquidity, profitability, and public interests. |
[This Article Wholly Amended by Act No. 9375, Jan. 30, 2009]
| Article 6 (Methods of Operation of Reserve) |
| (1) | The reserve shall be operated by the following methods: <Amended by Act No. 11690, Mar. 23, 2013; Act No. 14839, Jul. 26, 2017> |
| 1. | Deposits in financial institutions; |
| 3. | Loans to the State, local governments, and public institutions specified by Ordinance of the Ministry of Science and ICT; |
| 4. | Loans to insurance policy holders; |
| 5. | Acquisition, disposal, and lease of real estate for business purposes specified by Presidential Decree; |
| 8. | Deposits in the Treasury Fund; |
| 10. | Increases of the reserve specified by Presidential Decree. |
| (2) | In order to clarify the performance of the operation of the reserve and the financial status of the reserve, the Minister of Science and ICT shall account for increases, decreases, and changes of assets in accordance with actual occurrences. <Amended by Act No. 11690, Mar. 23, 2013; Act No. 14839, Jul. 26, 2017> |
| (3) | In order to operate the reserve efficiently, the Minister of Science and ICT may entrust a corporation designated by him/her with all or part of the operation of the business under paragraph (1) 2, 6, 7, and 10 or establish a corporation with the reserve and allow the company to operate the business, as prescribed by Presidential Decree. <Amended by Act No. 11690, Mar. 23, 2013; Act No. 14839, Jul. 26, 2017> |
| (4) | Matters necessary for the following shall be prescribed by Presidential Decree: |
| 1. | The ratio of the total acquisition value of securities purchased pursuant to paragraph (1) 2 to the reserve; |
| 2. | The ratio of the total acquisition value of real estate acquired pursuant to paragraph (1) 5 to the reserve; |
| 3. | The ratio of the total acquisition value of derivatives purchased pursuant to paragraph (1) 6 to the reserve; |
| 4. | The limits on investment in venture businesses under paragraph (1) 7; |
| 5. | The limits on loans to financial institutions under paragraph (1) 9. |
| (5) | Matters necessary for the establishment of a plan for the operation of the reserve and the operation of the reserve shall be prescribed by Presidential Decree. |
[This Article Wholly Amended by Act No. 9375, Jan. 30, 2009]
| Article 7 (Interest Rates, etc. of Loans from Reserve) |
The ratio of operation by the operation method of the reserve under each subparagraph of Article 6 (1) (excluding subparagraph 2, 6, 7, and 9) and the term of loans and interest rates on the loans under subparagraphs 3 and 4 of the same paragraph shall be determined by the Minister of Science and ICT. <Amended by Act No. 11690, Mar. 23, 2013; Act No. 14839, Jul. 26, 2017> [This Article Wholly Amended by Act No. 9375, Jan. 30, 2009]
| Article 8 (Preparation of Reports on Settlement of Accounts and Appropriation of Surpluses) |
| (1) | The Minister of Science and ICT may prepare a report on settlement of accounts (including the reserve) in accordance with Acts and subordinate statutes relevant to corporate budgeting and accounting for each fiscal year in addition to the report on the settlement of the Accounts prepared pursuant to the National Accounting Act, etc. <Amended by Act No. 11690, Mar. 23, 2013; Act No. 14839, Jul. 26, 2017> |
| (2) | If any surplus remains after the settlement of the revenue and expenditure of the Accounts for each fiscal year, it shall be appropriated for compensating carried-over deficits, and the remainder, if any, shall be set aside for the reserve. |
| (3) | The Minister of Science and ICT may appropriate part of the surpluses left over after the settlement of the reserve for public projects for insurance policy holders and social minorities. <Amended by Act No. 11690, Mar. 23, 2013; Act No. 14839, Jul. 26, 2017> |
| (4) | Necessary matters regarding the scope of public projects under paragraph (3) and the procurement of financial resources therefor shall be prescribed by Ordinance of the Ministry of Science and ICT. <Amended by Act No. 11690, Mar. 23, 2013; Act No. 14839, Jul. 26, 2017> |
[This Article Wholly Amended by Act No. 9375, Jan. 30, 2009]
| (1) | If it is necessary to reimburse expenses for the Accounts, long-term loans or temporary loans may be borrowed at the expense of the Accounts. |
| (2) | Temporary loans under paragraph (1) shall be repaid with the revenue for the pertinent fiscal year. |
[This Article Wholly Amended by Act No. 9375, Jan. 30, 2009]
| Article 10 (Reserve Fund) |
The Accounts may reflect an amount deemed appropriate as a reserve fund in the budget in order to appropriate the fund for the expenditure exceeding the budget.
[This Article Wholly Amended by Act No. 9375, Jan. 30, 2009]
| Article 11 (Delegation of Authority) |
The authority of the Minister of Science and ICT under this Act may be partially delegated to the heads of affiliate agencies under his/her control, as prescribed by Presidential Decree. <Amended by Act No. 11690, Mar. 23, 2013; Act No. 14839, Jul. 26, 2017>
[This Article Wholly Amended by Act No. 9375, Jan. 30, 2009]
| Article 12 Deleted. <by Act No. 6529, Dec. 19, 2001> |
ADDENDA
| (1) | (Enforcement Date) This Act shall enter into force on July 1, 1983. |
| (2) | (Burden of Operating Expenses in Year of Starting Business) Expenses for operating the postal insurance business incurred in the year of business commencement of the Accounts shall be covered by special accounts for postal business. |
ADDENDUM <Act No. 3873, Dec, 26, 1986>
This Act shall enter into force on January 1, 1987.
ADDENDUM <Act No. 5454, Dec, 13, 1997>
This Act shall enter into force on January 1, 1998. (Proviso Omitted.)
ADDENDA <Act No. 5982, May 24, 1999>
Article 1 (Enforcement Date)
This Act shall enter into force on the date of its promulgation. (Proviso Omitted.)
Articles 2 through 6 Omitted.
ADDENDA <Act No. 6144, Jan. 12, 2000>
Article 1 (Enforcement Date)
This Act shall enter into force on March 1, 2000.
Article 2 (Transitional Measures Following Change of Name of Postal Insurance Fund)
| (1) | The former Postal Insurance Fund existing as at the time this Act enters into force shall be construed as the Postal Insurance Fund under this Act. |
| (2) | Funds deposited in the Public Capital Management Fund from the Postal Insurance Fund pursuant to Article 6 of the Public Capital Management Fund Act as at the time this Act enters into force shall be construed as funds deposited in the Public Capital Management Fund from the Postal Insurance Fund under this Act. |
Article 3 Omitted.
ADDENDA <Act No. 6529, Dec. 19, 2001>
Article 1 (Enforcement Date)
This Act shall enter into force on January 1, 2002.
Article 2 (Transitional Measures Following Change of Postal Insurance Fund to Postal Insurance Reserve)
| (1) | The former Postal Insurance Fund existing as at the time this Act enters into force shall be construed as the Postal Insurance Reserve. |
| (2) | Funds deposited in the Public Capital Management Fund from the former Postal Insurance Fund pursuant to Article 6 of the Public Capital Management Fund Act as at the time this Act enters into force shall be construed as funds deposited in the Public Capital Management Fund from the Postal Insurance Reserve. |
Article 3 Omitted.
ADDENDA <Act No. 8635, Aug. 3, 2007>
Article 1 (Enforcement Date)
This Act shall enter into force one year and six months after the date of its promulgation. (Proviso Omitted.)
Articles 2 through 44 Omitted.
ADDENDA <Act No. 8852, Feb. 29, 2008>
Article 1 (Enforcement Date)
This Act shall enter into force on the date of its promulgation. (Proviso Omitted.)
Articles 2 through 7 Omitted.
ADDENDUM <Act No. 9375, Jan. 30, 2009>
This Act shall enter into force six 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. 14839, Jul. 26, 2017>
Article 1 (Enforcement Date)
This Act shall enter into force on the date of its promulgation: Provided, That the amended provisions of the Acts, which were promulgated before this Act enters into force, but the date on which they are to enter into force, has not arrived yet, among the Acts amended pursuant to Article 5 of the Addenda, shall enter into force on the enforcement dates of such Acts, respectively.
Articles 2 through 6 Omitted.