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ENFORCEMENT DECREE OF THE TRUST ACT

Wholly Amended by Presidential Decree No. 23969, Jul. 23, 2012

Amended by Presidential Decree No. 25104, Jan. 17, 2014

Presidential Decree No. 26302, jun. 1, 2015

Presidential Decree No. 28628, Feb. 9, 2018

 Article 1 (Purpose)
The purpose of this Decree is to prescribe the matters delegated by the Trust Act and matters necessary for the enforcement thereof.
 Article 2 (Method of Indicating Trust Property)
(1) "Book prescribed by Presidential Decree" referred to in Article 4 (4) of the Trust Act (hereinafter referred as the "Act") means any of the following: In such cases, the building register under subparagraph 2 and the land cadastre and the forest land cadastre under subparagraph 4 may be replaced by the comprehensive real estate records referred to in the Spatial Data Industry Promotion Act: <Amended by Presidential Decree No. 25104, Jan. 17, 2014; Presidential Decree No. 26302, Jun. 1, 2015; Presidential Decree No. 28628, Feb. 9, 2018>
1. The registry of beneficiaries under Article 79 (1) of the Act;
2. The register of temporary buildings under Article 20 of the Building Act and the building register under Article 38 of the same Act;
3. The register of shareholders under Article 352 of the Commercial Act and the electronic register of shareholders under Article 352-2 of the same Act;
4. The land cadastre and the forest land cadastre under Article 71 (1) of the Act on the Establishment, Management, etc. of Spatial Data;
5. Books prepared and maintained to manage substitute lots, land allotted by the authorities in recompense for development outlay, and reserved land at the time of the execution of projects, such as urban development projects as defined in Article 2 (1) 2 of the Urban Development Act, agricultural infrastructure building and expansion projects, living environment improvement projects, and marginal farmland and others development projects as defined in subparagraphs 5, 10 and 18 of Article 2 of the Rearrangement of Agricultural and Fishing Villages Act, residential environment improvement projects, redevelopment projects, etc. as defined in subparagraph 2 (a) and (b) of Article 2 of the Act on the Maintenance and Improvement of Urban Areas and Dwelling Conditions for Residents, by means of replotting in accordance with the statutes.
 Article 3 (Period, etc. of Preserving Documents Related to Trust Affairs)
(1) "Period prescribed by Presidential Decree" referred to in Article 39 (3) of the Act means the period classified as follows:
1. Property lists and the specifications annexed thereto, financial statements and the specifications annexed thereto, and detailed statement of management of trust property, of a trust: Ten years from the termination of the relevant trust;
2. Documents not prescribed in subparagraph 1: Five years from the termination of the relevant trust.
(2) The preservation of the books, lists of property, and other documents related to trust affairs are preserved pursuant to Article 39 (4) of the Act shall done in accordance with the method classified as follows. In such cases, they may be preserved in microfilm or by a computerized data processing system:
1. Property lists and the specifications annexed thereto, financial statements and the specifications annexed thereto, and detailed statement of management of trust property, of a trust: To be kept and preserved at the office or place of business of the trustee, or the principal office where the trust affairs of a limited liability trust under Article 114 of the Act (hereinafter referred to as "limited liability trust") are performed (hereinafter referred to as "place where trust affairs are performed");
2. Documents not prescribed in subparagraph 1: To be preserved at the office or place of business of the trustee (including the office and the place of business of a person who preserves the relevant documents for the trustee), or the place where trust affairs of a limited liability trust are performed.
 Article 4 (Documents to be Provided when Calling Beneficiaries' Meetings)
"Documents prescribed by Presidential Decree" referred to in Article 72 (6) of the Act means the documents wherein the following matters are stated:
1. The following matters where the intention of calling a beneficiaries’ meeting is to appoint the trustee, administrator of trust property or trust administrator:
(a) Name or title of the candidate for the trustee, administrator of trust property or trust administrator;
(b) Work experience of the candidate for the trustee, administrator of trust property or trust administrator;
(c) Grounds for recommendation of the candidate;
(d) Where the candidate for the trust administrator shares special interests with the trustee or the candidate for the trustee whereby it is likely to affect the impartial performance of his/her duties, the details of interests;
2. The following matters where the intention of calling a beneficiaries’ meeting is to dismiss the trustee, administrator of trust property or trust administrator by the resolution of a beneficiaries' meeting:
(a) Name or title of the trustee, administrator of trust property or trust administrator intended for dismissal;
(b) The grounds for dismissal;
3. The following matters where the intention of calling a beneficiaries’ meeting is to approve the accounting of trust affairs under Article 55 (2) or 103 (1) of the Act (hereafter referred to as "trust accounting" in this subparagraph):
(a) Details and results of the trust accounting;
(b) An audit and inspection report when an external audit is conducted under Article 117 (2) of the Act;
4. The following matters where any modification of a trust is intended under Article 88 of the Act:
(a) The ground for and details of the modification of the trust;
(b) Effective date of the modification of the trust;
(c) Where any contents of the right to benefit or beneficiary claims are to be modified, or the value of which is likely to be substantially affected, by the modification of the trust, the contents thereof and matters concerning the appropriateness of such modification;
5. Matters prescribed in the subparagraphs of Article 91 (1) of the Act, where the intention is to merge a trust under Article 90 of the Act;
6. Matters prescribed in the subparagraphs of Article 95 (1) of the Act, where the intention is to split off a trust under Article 94 (1) of the Act or split-merge a trust under Article 94 (2) of the Act;
7. The following matters where the intention of calling a beneficiaries’ meeting is to terminate a trust by agreement under Article 99 (1) of the Act:
(a) The grounds for the termination of the trust;
(b) Where any residuary trust property exists, the details thereof and the beneficiary of the residuary property or a person entitled to the devolvement of the residuary property of the trust property (hereinafter referred to as "rightful person on whom trust property devolves");
8. Where the intention of calling a beneficiaries’ meeting is for any agenda, other than the matters prescribed in subparagraphs 1 through 7, the details of the relevant agenda and an explanation about why such agenda is proposed.
 Article 5 (Exercise of Voting Right by Electronic Documents)
(1) Where any beneficiary exercises his/her voting right by an electronic document (hereinafter referred to as "electronic voting") under Article 73 (3) of the Act, the identification of the beneficiary and the exercise of voting right shall be made through the certified digital signature as defined in subparagraph 3 of Article 2 of the Digital Signature Act.
(2) The person who convenes a beneficiaries' meeting (hereinafter referred to as "convoker") consenting to the electronic voting of beneficiaries shall enter the following matters in the notice or public announcement of the convocation:
1. The web-site address where electronic voting is to be done;
2. The Period fixed for electronic voting (the closing date of electronic voting shall be the day before opening of the beneficiaries' meeting);
3. Other technical matters necessary for the electronic voting of beneficiaries.
(3) No beneficiary who has done electronic voting may withdraw or make any change in the exercise of his/her voting right concerning the relevant right to benefit.
(4) In order to ensure efficiency and fairness in electronic voting, a convoker may designate an agency for managing the electronic voting and entrust it with the management of procedures for exercising the voting right, such as procedures for identifying the beneficiaries.
(5) Neither the convoker, nor the agent that manages the electronic voting upon designation made under paragraph (4), nor the person responsible for the operation of electronic voting may disclose the results of the electronic voting until the votes are counted at the beneficiaries' meeting, or use it for any purpose other than for the performance of his/her duties.
 Article 6 (Matters to be Stated on Beneficiary Certificates)
"Matters prescribed by Presidential Decree" referred to in Article 78 (5) 9 of the Act means the following:
1. Where any provisions for the period of trust are stipulated, the period;
2. Where any remuneration is paid to the trustee under Article 47 (1) of the Act, the method of calculation and payment of remuneration to the trustee, and the time to make payments thereof;
3. Where any registered beneficiary certificate is issued and any restriction exists concerning the transfer of the right to benefit, the intent and details thereof;
4. Where any beneficiary of residuary property or the rightful person on whom trust property devolves is designated as prescribed in Article 101 (1) of the Act at the time the trust is terminated, his/her name or title;
5. In cases of a limited liability trust, the place where trust affairs of a limited liability trust are to be performed.
 Article 7 (Matters to be Stated on Registry of Beneficiaries)
"Matters prescribed by Presidential Decree" in Article 79 (1) 7 of the Act means the following:
1. Truster's name or title, and address;
2. Trustee's name or title, and address;
3. Where an administrator of trust property is appointed under Article 17 (1), or 18 (1) or (2) of the Act, his/her name or title, and address;
4. Where a trust administrator is appointed under Article 67 (1) through (3) of the Act, his/her name or title, and address;
5. Where the purport not to issue any beneficiary certificate for the right to benefit with specific contents is prescribed under the latter part of Article 78 (1) of the Act, the details thereof;
6. Where an administrator of registry of beneficiaries is appointed under Article 79 (4) of the Act, his/her name or title, and address;
7. Where it is determined not to permit the nonpossession of beneficiary certificates under the proviso to Article 80 (1) of the Act, the purport thereof;
8. Where a registered certificate is issued and any restriction on transfer of the right to benefit exists therein, the purport and details thereof;
9. Where a pledge is created under Article 83 (3) of the Act, the pledgee's name or title, and address and the right to benefit which is the object of the pledge;
10. Where a trust is created against the right to profit, the purport that it is the trust property;
11. In cases of a limited liability trust, the purport and title of the trust.
 Article 8 (Limit on Total Amount of Bonds)
The limit on the total amount of bonds under Article 87 (3) of the Act shall be the amount equivalent to four times the amount of net assets existing in the limited liability trust on the basis of the latest balance sheet: Provided, That where no latest balance sheet exists, it shall be four times the amount of net assets existing in the limited liability trust as at the time the bonds are issued.
 Article 9 (Matters to be Stated in Plans for Merger)
"Matters prescribed by Presidential Decree" referred to in Article 91 (1) 6 of the Act means the following:
1. Name or title, and address of the truster of each trust to be merged;
2. Name or title, and address of the trustee of each trust to be merged;
3. Contents of the deed of trust, and the date of creation, of each trust to be merged;
4. List and details of trust property of each trust to be merged;
5. If each trust to be merged is a limited liability trust, the title thereof and the place where trust affairs are to be performed.
 Article 10 (Matters for Public Announcement or Final Demand)
"Matters prescribed by Presidential Decree" referred to in Article 92 (1) 3 of the Act means a plan to pay trust debts after the merger.
 Article 11 (Matters to be Stated in Plans for Split-Off and Plan for Split-Merger)
"Matters prescribed by Presidential Decree" referred to in Article 95 (1) 8 of the Act means the following:
1. Name or title, and address of the truster of a split-off trust, a new trust created after split-off, or a split-merged trust;
2. Name or title, and address of the trustee of a split-off trust, a new trust created after split-off, or a split-merged trust;
3. Where a split-off trust, a new trust created after split-off, or a split-merged trust is a limited liability trust, the title thereof and the place where trust affairs are to be performed.
 Article 12 (Matters for Public Announcement of, and Final Demand Related to, Split-Off and Split-Merger)
"Matters prescribed by Presidential Decree" referred to in Article 96 (1) 3 of the Act means a plan to pay trust debts after the split-off or split-merger.
 Article 13 (Matters to be Prescribed by Deed of Trust of Limited Liability Trust)
"Matters to be prescribed by Presidential Decree" referred to in Article 114 (2) 6 of the Act means the business years of the trust.
 Article 14 (Financial Documents, etc. of Limited Liability Trust)
(1) "Financial documents prescribed by Presidential Decree" referred to in Article 117 (1) 4 of the Act means the following:
1. A statement of changes in equity;
2. A list of property of a trust and the specifications annexed thereto;
3. Where any beneficiary certificate is issued under Article 78 (1) of the Act, a statement of the base price of beneficiary certificates.
(2) "At least the criteria prescribed by Presidential Decree" referred to in Article 117 (2) 2 of the Act means to meet any of the following cases:
1. Where the total amount of assets is at least ten billion won;
2. Where the total amount of liabilities is at least seven billion won and the total amount of assets shall be at least seven billion won.
 Article 15 (Limits within which Benefit can be Provided to Beneficiaries of Limited Liability Trust)
(1) The limit within which a benefit can be provided under Article 120 (2) of the Act shall be the amount calculated by deducting the amount of reserve prescribed by the deed of trust and the price of trust property already provided as the benefit in the business year in which the benefit is to be provided from the amount of net assets as of the end of the immediately preceding business year of the business year in which the benefit is to be provided.
(2) If any right to benefit of a limited liability trust becomes part of the trust property of the same limited liability trust in applying paragraph (1), such right to benefit shall not be accounted as the net asset of the relevant limited liability trust.
 Article 16 (Matters to be Stated in Registration of Limited Liability Trust)
"Matters prescribed by Presidential Decree" referred to in Article 126 (1) 6 of the Act means the ground for termination, if such ground for termination is prescribed by a deed of trust.
 Article 17 (Criteria for Imposition of Administrative Fines)
Where the Minister of Justice determines the amount of an administrative fine under Article 146 of the Act, he/she shall take into consideration the motive for, consequences, period and degree of the relevant violation.
ADDENDUM
This Decree shall enter into force on July 26, 2012.
ADDENDA <Presidential Decree No. 25104, Jan. 17, 2014>
Article 1 (Enforcement Date)
This Decree shall enter into force on Jan. 18, 2014. (Proviso Omitted.)
Articles 2 through 8 Omitted.
ADDENDA <Presidential Decree No. 26302, Jun. 1, 2015>
Article 1 (Enforcement Date)
This Decree shall enter into force on June 4, 2015.
Articles 2 and 3 Omitted.
ADDENDA <Presidential Decree No. 28628, Feb. 9, 2018>
Article 1 (Enforcement Date)
This Decree shall enter into force on February 9, 2018. (Proviso Omitted.)
Articles 2 through 17 Omitted.