ENFORCEMENT DECREE OF THE ACT ON THE IMPROVEMENT OF MANAGERIAL STRUCTURE AND PRIVATIZATION OF PUBLIC ENTERPRISES
Presidential Decree No. 15488, Oct. 1, 1997
Amended by Presidential Decree No. 16762, Mar. 28, 2000
Presidential Decree No. 17564, Mar. 30, 2002
Presidential Decree No. 20720, Feb. 29, 2008
Presidential Decree No. 20947, Jul. 29, 2008
Presidential Decree No. 21518, May 29, 2009
Presidential Decree No. 22493, Nov. 15, 2010
Presidential Decree No. 24697, Aug. 27, 2013
Presidential Decree No. 25945, Dec. 30, 2014
| Article 2 (Organization and Operation of Committee on Recommendation of President) |
| (2) | When members are all appointed, the chairperson shall call a meeting of the Committee without delay. |
| (3) | In addition to the matters prescribed by the Act and this Decree, matters necessary for organizing, operating etc. the Committee shall be specified by articles of incorporation of the enterprises prescribed in the subparagraphs of Article 2 of the Act (hereinafter referred to as “designated corporation”). |
| Article 3 (Examination of Presidential Candidates) |
| (1) | Designated corporations may request specialized organizations to inquire into the work experience, etc. of presidential candidates who are invited by public notice or have been inquired into pursuant to Article 12 (2) of the Act. |
| (2) | The guidelines for examining presidential candidates prescribed in Article 12 (3) of the Act shall include the following matters. In such cases, the guidelines shall not discriminate between citizens and foreigners: |
| 1. | An element by which knowledge in management and economics can be objectively evaluated, such as work experience, academic degree, etc.; |
| 2. | An element by which management experience can be objectively evaluated, such as past management results, management period, etc.; |
| 3. | An element by which candidates' qualifications and competence as a chief executive officer can be evaluated. |
| Article 4 (Business Goals) |
| (1) | The business objectives prescribed in Article 12 (4) of the Act shall be set by classifying them into a long-term goal and a short-term goal with regard to increasing sales, increasing profits and decreasing losses, investment plans, other improvement in the management, etc. In such cases, where providing a public service is necessary, a goal thereof may be included in the business goals. |
| (2) | In setting business objectives pursuant to paragraph (1), the part that can be expressed numerically shall be set with figures. |
| Article 5 (Evaluation as to whether President Fulfills Agreements) |
| (1) | Any evaluation on whether the president fulfills the agreement concluded under Article 13 (2) of the Act may be conducted by the board of directors based on year-end closing of accounts; or may be entrusted to a specialized organization: Provided, That where the board of directors deems necessary, it may conduct an evaluation even midway through a business year. |
| (2) | The board of directors shall report the findings from evaluation conducted under paragraph (1) to the general meeting of shareholders. |
| Article 6 (Organization of Council of Shareholders) |
“In cases prescribed by Presidential Decree” prescribed in Article 14 (1) of the Act shall mean cases where the number of nongovernmental shareholders, excluding the Government, government-invested institutions, the Korea Development Bank established pursuant to the Korea Development Bank Act (hereinafter referred to as “Government, etc.”) and the employee stock ownership association stands at least 1,000 and the total shares held accounts for at least 20/100 of the total number of issued shares with voting rights. <Amended by Presidential Decree No. 21518, May 29, 2009; Presidential Decree No. 25945, Dec.30, 2014>
| Article 7 (Government’s Exercise of Shareholders’ Rights) |
When the competent Minister is notified of convocation of a general meeting of shareholders pursuant to Article 16 of the Act, he/she shall, without delay, send a copy of the notice of convocation to the Minister of Strategy and Finance, and shall consult with the Minister of Strategy and Finance with regard to the exercise of shareholders’ rights. <Amended by Presidential Decree No. 20720, Feb. 29, 2008>
| Article 7-2 (Exercise, etc. of Minority Shareholders’ Rights) |
[This Article Newly Inserted by Presidential Decree No. 24697, Aug. 27, 2013]
| Article 8 (Scope of Persons with Special Relationship) |
| Article 9 (Institutions Entrusted with Sale of Stocks or Sales Agents) |
“Institution specified by Presidential Decree” prescribed in Article 20 (1) of the Act shall mean the following institutions: <Amended by Presidential Decree No. 16762, Mar. 28, 2000; Presidential Decree No. 20947, Jul. 29, 2008; Presidential Decree No. 21518, May 29, 2009; Presidential Decree No. 22493, Nov. 15, 2010> | 4. | Deleted; <by Presidential Decree No. 25945, Dec.30, 2014> |
| 7. | Designated corporations. |
ADDENDA
Article 1 (Enforcement Date)
This Decree shall enter into force on the date of its promulgation.
Article 2 Deleted. <by Act No. 17564, Mar. 30, 2002>
Article 3 (Organization of Ad Hoc Committee for Recommending Non-Standing Directors)
The Vice Minster of the competent Ministry shall become the chairperson of the ad hoc committee for recommending non-standing directors prescribed in Article 3 (1) of the Addenda of the Act (hereinafter referred to as “ad hoc committee for recommending non-standing directors”), and the following persons shall become the members thereof:
| (a) | One person designated by the Minister of Finance and Economy from among Grade-I public officials or equivalent public officials, who belong to the Ministry of Finance and Economy; |
| (b) | Three private members entrusted by the Minister of Finance and Economy; |
| 2. | Korea Gas Corporation: |
| (a) | One person designated by the Minister of Finance and Economy from among Grade-I public officials or equivalent public officials, who belong to the Ministry of Finance and Economy; |
| (b) | One person designated by the Minister of Trade and Industry from among Grade I public officials or public officials corresponding to Grade I public officials, who belong to the Ministry of Trade and Industry; |
| (c) | Vice president of the Korea Electric Power Corporation; |
| (d) | Three private members entrusted by the Minister of Trade and Industry; |
| 3. | Vice president of the Korea Telecommunication Authority; |
| (a) | One person designated by the Minister of Finance and Economy from among Grade I public officials or equivalent public officials, who belong to the Ministry of Finance and Economy; |
| (b) | One person designated by the Minister of Information and Communication from among Grade I public officials or equivalent public officials, who belong to the Ministry of Information and Communication; |
| (c) | Four private members entrusted by the Minister of Information and Communication; |
| 4. | Hankook Heavy Industries Co., Ltd.: |
| (a) | One person designated by the Minister of Finance and Economy from among Grade I public officials or equivalent public officials, who belong to the Ministry of Finance and Economy; |
| (b) | One person designated by the Minister of Trade and Industry from among Grade I public officials or equivalent public officials, who belong to the Ministry of Trade and Industry; |
| (c) | Vice chairman of the Korea Development Bank; |
| (d) | Vice president of the Korea Electric Power Corporation; |
| (e) | Managing director of the Korea Exchange Bank; |
| (f) | One private member entrusted by the Minister of Trade and Industry. |
Article 4 (Operation of Ad Hoc Committee for Recommending Non-Standing Directors)
| (1) | The ad hoc committee for recommending non-standing directors shall be formed within seven days from the date this Decree enters into force; and shall be maintained until the first group of directors is appointed at a general meeting of shareholders. |
| (2) | The ad hoc committee for recommending non-standing directors shall pass a resolution when a majority of members on the register including the chairperson vote in favor. |
| (3) | In addition to the matters prescribed by the Act and this Decree, matters necessary for the operation of the ad hoc committee for recommending non-standing directors shall be determined by the competent Minister. |
Article 5 Omitted.
ADDENDA <Presidential Decree No. 16762, Mar. 28, 2000>
Article 1 (Enforcement Date)
This Decree shall enter into force on the date of its promulgation.
Article 2 Omitted.
ADDENDA <Presidential Decree No. 17564, Mar. 30, 2002>
| (1) | (Enforcement Date) This Decree shall enter into force on April 1, 2002. |
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 part that amends a Presidential Decrees promulgated before this Decree enters into force, but the enforcement date of which has not yet arrived from among Presidential Decrees amended pursuant to Article 8 of Addenda, shall enter into force on the date respective Presidential Decree enters into force.
Articles 2 through 8 Omitted.
ADDENDA <Presidential Decree No. 20947, Jul. 29, 2008>
Article 1 (Enforcement Date)
This Decree shall enter into force on February 4, 2009. (Proviso Omitted.)
Articles 2 through 28 Omitted.
ADDENDA <Presidential Decree No. 21518, May 29, 2009>
Article 1 (Enforcement Date)
This Decree shall enter into force on June 1, 2009.
Articles 2 and 3 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. 24697, Aug. 27, 2013>
Article 1 (Enforcement Date)
This Decree shall enter into force on Aug. 27, 2013. (Proviso Omitted.)
Articles 2 through 13 Omitted.
ADDENDA <Presidential Decree No. 25945, Dec. 30, 2014>
Article 1 (Enforcement Date)
This Decree shall enter into force on the date registration is made for merger effected under Article 4 (6) of Addenda of the Korea Development Bank Act as wholly amended by Act No. 12663. Articles 2 through 5 Omitted.