ENFORCEMENT DECREE OF THE PUBLIC CAPITAL MANAGEMENT FUND ACT
Wholly Amended by Presidential Decree No. 19815, Dec. 30, 2006
Amended by Presidential Decree No. 20720, Feb. 29, 2008
Presidential Decree No. 22493, Nov. 15, 2010
Presidential Decree No. 24441, Mar. 23, 2013
Presidential Decree No. 24531, May 10, 2013
Presidential Decree No. 25751, Nov. 19, 2014
Presidential Decree No. 26844, Dec. 31, 2015
Presidential Decree No. 28211, Jul. 26, 2017
| Article 2 (Procedures, etc. for Acquiring National and Municipal Bonds) |
| (1) | Where the issuer of national or municipal bonds (referring to the Minister of the Interior and Safety in cases of municipal bonds; hereafter the same shall apply in this Article) or a juristic person established pursuant to a special Act that has issued bonds pursuant to the special Act intends to request the Government to acquire national bonds, municipal bonds or bonds (hereinafter referred to as “national and/or municipal bonds”) pursuant to Article 3 (2) 4 of the Public Capital Management Fund Act (hereinafter referred to as the “Act”), he/she/it shall consult with the Minister of Strategy and Finance. <Amended by Presidential Decree No. 20720, Feb. 29, 2008; Presidential Decree No. 24441, Mar. 23, 2013; Presidential Decree No. 25751, Nov. 19, 2014; Presidential Decree No. 28211 Jul. 26, 2017> |
| (2) | When the issuer of national or municipal bonds intends to consult pursuant to paragraph (1), he/she shall submit a plan to issue national or municipal bonds and a project plan for the following year (in cases of municipal bonds, referring to an issuance plan and a project plan of each local government) to the Minister of Strategy and Finance. <Amended by Presidential Decree No. 20720, Feb. 29, 2008> |
| (3) | Requirements and procedures for the acquisition of national or municipal bonds, and other necessary matters shall be determined by the Minister of Strategy and Finance after deliberation by the Committee for Management of Public Capital Management Fund prescribed in Article 10 (1) of the Act (hereinafter referred to as the “Committee”). <Amended by Presidential Decree No. 20720, Feb. 29, 2008> |
| Article 3 (Purposes of Omnibus Account of Public Capital Management Fund) |
| 1. | Depositing in or loaning to financial institutions; |
| 2. | Expenses incurred in creating, managing or operating the public capital management fund prescribed in Article 2 of the Act (hereinafter referred to as “Management Fund”). |
| Article 4 (Management of Treasury Loan Funds) |
Matters relating to the management of the treasury loan funds prescribed in Article 5 (1) 1 of the Act shall be prescribed by the Minister of Strategy and Finance. <Amended by Presidential Decree No. 20720, Feb. 29, 2008>
| Article 5 (Submission of Monthly Deposit Plans) |
A person who intends to deposit surplus funds in the Management Fund according to the plan for managing the Management Fund prescribed in Article 9 (1) of the Act from among the managers of funds, etc. prescribed in Article 6 (1) of the Act (hereinafter referred to as “funds, etc.”) shall submit a monthly deposit plan that details deposits to be deposited in the Management Fund in the following year to the Minister of Strategy and Finance by no later than December 10 of each fiscal year. <Amended by Presidential Decree No. 20720, Feb. 29, 2008>
| Article 6 (Requests for Deposit in Management Fund) |
| (1) | Cases where the Minister of Strategy and Finance may request the managers of funds, etc. to deposit surplus funds in the Management Fund pursuant to Article 6 (2) of the Act shall be as listed hereunder: <Amended by Presidential Decree No. 20720, Feb. 29, 2008> |
| 1. | Where large treasury funds are needed due to a war, natural disaster, mass unemployment, etc.; |
| 2. | Where financing by issuing national bonds, etc. is inappropriate based on the circumstances of the financial market due to a sharp rise in interest rate, etc.; |
| 3. | Grounds corresponding to subparagraph 1 or 2, which require stable raising of treasury funds. |
| (2) | The scope of funds, etc. in which the Minister of Strategy and Finance may request managers of the funds, etc. to deposit surplus funds pursuant to Article 6 (2) of the Act shall be as listed hereunder: <Amended by Presidential Decree No. 20720, Feb. 29, 2008> |
| (3) | Where the Minister of Strategy and Finance requests the managers of funds, etc. to deposit surplus funds in the Management Fund pursuant to Article 6 (2) of the Act, he/she shall specify the following matters: <Amended by Presidential Decree No. 20720, Feb. 29, 2008> |
| 1. | Requested amount of deposit; |
| 2. | Requested term of deposit; |
| 3. | Grounds for requesting deposit; |
| 4. | Plans to repay principal and pay interest; |
| 5. | Other matters necessary for clarifying the details of a request for deposit. |
| Article 7 (Entrustment of Administrative Affairs of Operation and Management of Management Fund) |
| (1) | Pursuant to Article 8 (2) of the Act, the Minister of Strategy and Finance shall entrust the administrative affairs of operating and managing the Management Fund to the Governor of the Bank of Korea. <Amended by Presidential Decree No. 20720, Feb. 29, 2008> |
| (2) | The Governor of the Bank of Korea shall report the monthly status of creating and operating the Management Fund to the Minister of Strategy and Finance by no later than 20th of the following month. <Amended by Presidential Decree No. 20720, Feb. 29, 2008> |
| (3) | The Governor of the Bank of Korea shall submit a closing report on the Management Fund for each fiscal year, accompanied by the following documents, to the Minister of Strategy and Finance by no later than February 20 of the following year: <Amended by Presidential Decree No. 20720, Feb. 29, 2008> |
| 1. | Documents concerning the outline and analysis of the Management Fund; |
| 4. | Statement of revenues and expenditures; |
| 5. | Other documents necessary for clarifying the closing report. |
| (4) | In addition to the matters prescribed by this Decree, matters necessary for dealing with administrative affairs of operation and management of the Management Fund shall be determined by the Governor of the Bank of Korea after obtaining approval from the Minister of Strategy and Finance. <Amended by Presidential Decree No. 20720, Feb. 29, 2008> |
| Article 7-2 (Financial Companies, etc.) |
The Minister of Strategy and Finance may operate surplus funds generated in the course of operating the Management Fund pursuant to Article 8 (3) of the Act by depositing them in the following financial companies or lending them thereto: [This Article Newly Inserted by Presidential Decree No. 24531, May 10, 2013]
| Article 7-3 (Interest on Deposits or Loan) |
Where the Minister of Strategy and Finance deposits or lends surplus funds in the course of operating the Management Fund pursuant to Article 8 (3) of the Act, the Minister of Strategy and Finance shall determine a interest rate, based on the interest rate applied by the Government or by finance companies, etc. prescribed in the subparagraphs of Article 7-2 to similar transactions: Provided, That where necessary to expedite issuing and distributing government bonds prescribed in Article 4 (2) of the Enforcement Decree of the State Bond Act, he/she may determine a separate interest rate. [This Article Newly Inserted by Presidential Decree No. 24531, May 10, 2013]
| Article 8 (Requests for Submission of Data on Status of Operation of Surplus Funds) |
Pursuant to Article 9 (4) of the Act, the Minister of Strategy and Finance may each quarter request the managers of funds, etc. to submit data on the status of operation of surplus funds. <Amended by Presidential Decree No. 20720, Feb. 29, 2008>
| Article 9 (Deposit of Management Funds) |
| 1. | Requested amount of deposit; |
| 2. | Request term of deposit; |
| 3. | Plan on how to use the deposit; |
| 4. | Plan to repay the principal and pay interest; |
| 5. | Other matters necessary for clarifying a request for deposit. |
| (2) | Interest rate on the deposits deriving from the Management Fund that are deposited in other accounts; other funds or other accounts of the Management Fund; period and size of deposits to be deposited in such accounts, etc. shall be determined by the Minister of Strategy and Finance after deliberation of the Committee. <Amended by Presidential Decree No. 20720, Feb. 29, 2008> |
| Article 10 (Application for Loan, etc.) |
| 1. | Amount of loan requested; |
| 2. | Requested term of loan; |
| 3. | Plan on how to use the loan; |
| 4. | Plan to repay the principal and pay interest; |
| 5. | Name of the finance company to handle the loan and to receive repayment as an intermediary; |
| 6. | Other matters necessary for performing financing business, such as handling fees for the financing company. |
| (2) | The head of a central administrative agency intending to perform a project financed by the Managing Fund pursuant to Article 9 (6) of the Act shall submit a statement of monthly monetary requirements to the Minister of Strategy and Finance after the plan for managing the Managing Fund prescribed in Article 9 (1) of the Act is finalized. <Amended by Presidential Decree No. 20720, Feb. 29, 2008> |
| Article 11 (Selection, etc. of Finance Company) |
| (1) | The Minister of Strategy and Finance shall select a finance company that handles loans and receives principal and interest from among the following institutions. In such cases, he/she shall consult with the head of a central administrative agency intending to perform a project financed by the Managing Fund pursuant to Article 9 (6) in advance: <Amended by Presidential Decree No. 20720, Feb. 29, 2008; Presidential Decree No. 22493, Nov, 15, 2010> |
| 5. | Other institutions engaging in the business of making loans prescribed in statues, which are determined by the Minister of Strategy and Finance. |
| (2) | The head of a finance company shall report an operational plan for relevant loan and the status of operation to the Minister of Strategy and Finance and the head of a central administrative agency (hereinafter referred to as “head of relevant central administrative agency”) performing a project financed by the Managing Fund. |
| Article 12 (Organization, Operation, etc. of Committee) |
| (1) | Members entrusted by the chairperson pursuant to Article 10 (3) 12 of the Act shall have a term of office of two years, which may be renewed. |
| (2) | The chairperson shall represent the Committee, chair meetings of the Committee and take charge of administrative affairs relating to meetings. |
| (3) | The chairperson shall call a meeting (hereafter referred to as “meeting” in this Article) of the Committee when the chairperson deems it necessary or a majority of members on the register make a request. |
| (4) | A meeting shall convened with attendance of a majority of members on the register including the chairperson, and a resolution is passed when a majority of members present vote in favor. |
| (5) | The Committee shall have an executive secretary to handle administrative affairs, and a person selected by the Minister of Strategy and Finance from among public officials in the general service appointed to the Senior Executive Service in the Ministry of Strategy and Finance shall fill the executive secretary position. <Amended by Presidential Decree No. 20720, Feb. 29, 2008> |
| (6) | In addition to matters prescribed by this Decree, detailed matters necessary for operating the Committee shall be determined by the chairperson following a resolution by the Committee. |
| Article 12-2 (Dismissal of Members) |
| 1. | Where he/she is unable to perform duties due to any mental or physical disorder; |
| 2. | Where he/she has committed any violation relating to duties; |
| 3. | Where he/she is deemed to be inappropriate for a member due to negligence, demeaning behaviors or other grounds; |
| 4. | Where he/she states it is impracticable to perform his/her duties. |
[This Article Newly Inserted by Presidential Decree No. 26844, Dec. 31, 2015]
| Article 13 (Issuance of Deposit Receipts and Payment of Interest on Deposits) |
| (1) | Where funds are deposited in the Management Fund, the Minister of Strategy and Finance shall issue a deposit receipt: Provided, That where the funds are transferred from another account of the Management Fund, this shall not apply. <Amended by Presidential Decree No. 20720, Feb. 29, 2008> |
| (2) | Interest on deposits shall be paid six-monthly with the first payment made on the following date: Provided, That where the principal is repaid as the deposit period expires, interest shall be paid on the date the principal is paid: |
| 1. | Deposit between January 1 and March 31: June 9; |
| 2. | Deposit between April 1 and June 30: September 9; |
| 3. | Deposit between July 1 and September 30: December 9; |
| 4. | Deposit between October 1 and December 31: March 9 of the following year. |
ADDENDA
Article 1 (Enforcement Date)
This Decree shall enter into force on January 1, 2007.
Article 2 (Repeal of Statutes)
This Enforcement Decree of the Act on the Special Accounts for Treasury Investments and Loans is hereby repealed.
Article 3 (Applicability concerning Payment of Interest on Deposit)
The amended provision of Article 13 (2) shall begin to apply from the first deposit made after this Decree enters into force. Article 4 Omitted.
Article 5 (Relationship with other Statutes)
Where provisions of the previous Enforcement Decree of the Special Accounts for Treasury Investments and Loans or of the previous Enforcement Decree of the Public Capital Management Fund Act are cited by other statutes as at the time this Decree enters into force, this Decree or provisions of this Decree shall be deemed cited in place of previous provisions if this Decree contains provisions corresponding thereto.
ADDENDA <Presidential Decree No. 20720, Feb. 29, 2008>
Article 1 (Enforcement Date)
This Decree shall enter into force on the date of its promulgation: Provided, That the amended provisions of a Presidential Decree promulgated before this Decree enters into force, for which the date it enters into force has not yet arrived, from among Presidential Decrees amended pursuant of Article 8 of Addenda, shall enter into force on the date respective Presidential Decree enters into force.
Articles 2 and 8 Omitted.
ADDENDA <Presidential Decree No. 22493, Nov. 15, 2010>
Article 1 (Enforcement Date)
This Decree shall enter into force on November 18, 2010.
Articles 2 through 5 Omitted.
ADDENDA <Presidential Decree No. 24441, Mar. 23, 2013>
Article 1 (Enforcement Date)
This Decree shall enter into force on the date of its promulgation.
Articles 2 through 5 Omitted.
ADDENDUM <Presidential Decree No. 24531, May 10, 2013>
This Decree shall enter into force on the date of its promulgation.
ADDENDA <Presidential Decree No. 25751, Nov. 19, 2014>
Article 1 (Enforcement Date)
This Decree shall enter into force on the date of its promulgation: Provided, That the amended provisions of a Presidential Decree promulgated before this Decree enters into force, for which the date it enters into force has not yet arrived, from among Presidential Decrees amended pursuant of Article 5 of Addenda, shall enter into force on the date respective Presidential Decree enters into force.
Articles 2 through 5 Omitted.
ADDENDUM <Presidential Decree No. 26844, Dec. 31, 2015>
This Decree shall enter into force on the date of its promulgation.
ADDENDA <Presidential Decree No. 28211, Jul. 26, 2017>
Article 1 (Enforcement Date)
This Decree shall enter into force on the date of its promulgation: Provided, That the amended provisions of a Presidential Decree promulgated before this Decree enters into force, for which the date it enters into force has not yet arrived, from among Presidential Decrees amended pursuant of Article 8 of Addenda, shall enter into force on the date respective Presidential Decree enters into force.
Articles 2 through 8 Omitted.