POSTAL SAVINGS AND INSURANCE ACT
Act No. 3610, Dec. 31, 1982
Amended by Act No. 5454, Dec. 13, 1997
Act No. 5563, Sep. 17, 1998
Act No. 6062, Dec. 28, 1999
Act No. 6529, Dec. 19, 2001
Act No. 6891, May 29, 2003
Act No. 7141, Jan. 29, 2004
Act No. 7819, Dec. 30, 2005
Act No. 8635, Aug. 3, 2007
Act No. 8852, Feb. 29, 2008
Act No. 8863, Feb. 29, 2008
Act No. 9628, Apr. 22, 2009
Act No. 11115, Dec. 2, 2011
Act No. 11690, Mar. 23, 2013
Act No. 13517, Dec. 1, 2015
Act No. 14839, Jul. 26, 2017
CHAPTER I GENERAL PROVISIONS
The purpose of this Act is to encourage the people's will to save through the popularization of finance by having communications agencies manage simple and reliable savings and insurance business, and to contribute to the stabilization of economic livelihood of the people and the promotion of public welfare by having the people jointly cope with risks of accidents through the popularization of insurance.
[This Article Wholly Amended by Act No. 9628, Apr. 22, 2009]
The terms used in this Act shall be defined as follows:
| 1. | The term "postal savings" means savings dealt in by a communications agency pursuant to this Act; |
| 2. | The term "passbook" means a passbook issued by a communications agency to verify deposit and payment of postal savings; |
| 3. | The term "certificate of deposit" means a certificate issued by a communications agency to verify deposit and payment of postal savings; |
| 4. | The term "postal insurance" means insurance dealt in by a communications agency which regard to life or bodily harm of the insured as an insured accident pursuant to this Act; |
| 5. | The term "insurance contract" means a contract with the condition that a policy holder is to pay premiums and a communication agency is to pay insurance proceeds when an insured incident occurs; |
| 6. | The term "insured incident" means an indeterminate incident effecting the life or body of the insured, which imposes an obligation on a communications agency to pay insurance proceeds or other benefits to a beneficiary of an insurance policy according to an insurance contract. |
[This Article Wholly Amended by Act No. 9628, Apr. 22, 2009]
| Article 3 (Charge of Postal Savings and Insurance Business) |
The State shall manage postal savings business and postal insurance business, and the Minister of Science and ICT shall take charge of the business. <Amended by Act No. 11690, Mar. 23, 2013; Act No. 14839, Jul. 26, 2017>
[This Article Wholly Amended by Act No. 9628, Apr. 22, 2009]
| Article 3-2 (Maintenance and Control of Soundness) |
| (1) | Where necessary to maintain and control soundness of postal savings and insurance business, the Minister of Science and ICT may request the Financial Services Commission to inspect the business. <Amended by Act No. 11690, Mar. 23, 2013; Act No. 14839, Jul. 26, 2017> |
| (2) | The Minister of Science and ICT shall determine and publicly announce standards necessary to maintain and control soundness in consultation with the Financial Services Commission for the sound promotion of postal savings and insurance business and for the protection of contracting parties. <Amended by Act No. 11690, Mar. 23, 2013; Act No. 14839, Jul. 26, 2017> |
[This Article Wholly Amended by Act No. 9628, Apr. 22, 2009]
| Article 4 (State Responsibility for Payment) |
The State shall take the responsibility for payment of postal savings (including interest) and insurance proceeds, etc. according to postal insurance contracts.
[This Article Wholly Amended by Act No. 9628, Apr. 22, 2009]
| Article 5 Deleted. <by Act No. 9628, Apr. 22, 2009> |
| Article 6 (Restrictions on Conducting Business) |
| (1) | In cases of a war, an incident, a natural disaster or any other extenuating circumstance, the Minister of Science and ICT may restrict or suspend the business of postal savings (hereinafter referred to as "savings") and postal insurance (hereinafter referred to as "insurance"), as prescribed by Ordinance of the Ministry of Science and ICT. <Amended by Act No. 11690, Mar. 23, 2013; Act No. 14839, Jul. 26, 2017> |
| (2) | Where the Minister of Science and ICT has restricted or suspended the business of savings and insurance pursuant to paragraph (1), he/she shall make a public announcement of the details thereof. <Amended by Act No. 11690, Mar. 23, 2013; Act No. 14839, Jul. 26, 2017> |
[This Article Wholly Amended by Act No. 9628, Apr. 22, 2009]
| Article 7 (Providing Convenience to Depositors who Suffer Damage) |
| (1) | The Minister of Science and ICT may exempt any depositor, policyholder, insured or beneficiary of an insurance policy (hereinafter referred to as "policyholder, etc.") who have suffered damage due to a war, an incident, a natural disaster or any other extenuating circumstance from charges for conducting savings and insurance business or provide them with any other convenience, as prescribed by Ordinance of the Ministry of Science and ICT. <Amended by Act No. 11690, Mar. 23, 2013; Act No. 14839, Jul. 26, 2017> |
| (2) | Where the Minister of Science and ICT exempts charges or provides any other convenience pursuant to paragraph (1), he/she shall make a public announcement of the details thereof. <Amended by Act No. 11690, Mar. 23, 2013; Act No. 14839, Jul. 26, 2017> |
[This Article Wholly Amended by Act No. 9628, Apr. 22, 2009]
| Article 8 (Activities to Increase Savings and Insurance) |
| (1) | The Minister of Science and ICT may conduct necessary activities to increase and maintain savings and insurance. <Amended by Act No. 11690, Mar. 23, 2013; Act No. 14839, Jul. 26, 2017> |
| (2) | Details of activities referred to in paragraph (1) and matters necessary for incurring expenses for the activities 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. 9628, Apr. 22, 2009]
| Article 9 (Gratuitous Handling of Postal Matter) |
Postal matter regarding savings and insurance business may be processed gratuitously, as 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. 9628, Apr. 22, 2009]
| Article 10 (Consultation with Relevant Authorities) |
| (1) | The Minister of Science and ICT shall consult with the Financial Services Commission to determine interest rates on deposits by kind pursuant to Article 14 (2): Provided, That this shall not apply where he/she intends to determine interest rates within the extent of standards determined by the Monetary Policy Committee pursuant to subparagraph 13 of Article 28 of the Bank of Korea Act. <Amended by Act No. 11690, Mar. 23, 2013; Act No. 14839, Jul. 26, 2017> |
| (2) | The Minister of Science and ICT shall consult with the Financial Services Commission to determine the limit of contracted insurance proceeds in accordance with the Ordinance of the Ministry of Science and ICT pursuant to Article 28. <Amended by Act No. 11115, Dec. 2, 2011; Act No. 11690, Mar. 23, 2013; Act No. 14839, Jul. 26, 2017> |
| (3) | Where the Minister of Science and ICT has determined interest rates on trading of national bonds and public bonds pursuant to Article 19 (2) and interest rates of deposits by kind pursuant to the proviso to paragraph (1), he/she shall notify the Financial Services Commission of such determination, and where he/she has established or amended the terms related to transaction of deposits, he/she shall notify the Financial Services Commission thereof. <Amended by Act No. 11115, Dec. 2, 2011; Act No. 11690, Mar. 23, 2013; Act No. 14839, Jul. 26, 2017> |
| (4) | Where the Minister of Science and ICT intends to change kinds of insurance, he/she shall submit basic documents, etc. under subparagraph 3 of Article 5 of the Insurance Business Act to the Financial Services Commission and consult therewith. <Newly Inserted by Act No. 11115, Dec. 2, 2011; Act No. 11690, Mar. 23, 2013; Act No. 14839, Jul. 26, 2017> |
| (5) | Where insurance settlements are complete for each fiscal year, the Minister of Science and ICT shall submit closing documents, such as financial statements, to the Financial Services Commission and consult therewith. <Newly Inserted by Act No. 11115, Dec. 2, 2011; Act No. 11690, Mar. 23, 2013; Act No. 14839, Jul. 26, 2017> |
| (6) | Matters necessary for documents for submission and procedures for consultation under paragraphs (2), (4), and (5) shall be prescribed by Ordinance of the Ministry of Science and ICT. <Newly Inserted by Act No. 11115, Dec. 2, 2011; Act No. 11690, Mar. 23, 2013; Act No. 14839, Jul. 26, 2017> |
[This Article Wholly Amended by Act No. 9628, Apr. 22, 2009]
| Article 11 (Kinds of Deposits) |
| (1) | Deposits shall be classified into demand deposits and savings deposits. |
| (2) | The Minister of Science and ICT shall determine and publicly announce necessary matters concerning kinds of deposits, details of deposits by kind and persons eligible for such deposits, etc. <Amended by Act No. 11690, Mar. 23, 2013; Act No. 14839, Jul. 26, 2017> |
| (3) | Matters necessary for conducting business of deposits, etc. 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. 9628, Apr. 22, 2009]
| Article 12 (Issue of Deposit Passbook) |
A communications agency shall issue a deposit passbook or a certificate of deposit to a depositor when he/she first deposits.
[This Article Wholly Amended by Act No. 9628, Apr. 22, 2009]
| Article 13 (Seal and Signature) |
| (1) | Seal or signature (including authorized digital signature pursuant to subparagraph 3 of Article 2 of the Digital Signature Act) which a depositor is to use regarding his/her deposit shall be his/her seal or signature registered with a communications agency. |
| (2) | Seal pursuant to paragraph (1) may be changed upon reporting by a depositor. |
[This Article Wholly Amended by Act No. 9628, Apr. 22, 2009]
| Article 14 (Payment of Interest) |
| (1) | Interest on deposit shall be paid, as prescribed by Ordinance of the Ministry of Science and ICT. <Amended by Act No. 11690, Mar. 23, 2013; Act No. 14839, Jul. 26, 2017> |
| (2) | The Minister of Science and ICT shall determine and publicly announce interest rates of deposits by kind in consideration of interest rates of financial institutions. <Amended by Act No. 11690, Mar. 23, 2013; Act No. 14839, Jul. 26, 2017> |
[This Article Wholly Amended by Act No. 9628, Apr. 22, 2009]
| Article 15 (Deposit in Bank) |
| (1) | A deposit shall be made in cash, or with securities or certificates prescribed by Ordinance of the Ministry of Science and ICT. <Amended by Act No. 11690, Mar. 23, 2013; Act No. 14839, Jul. 26, 2017> |
| (2) | Where a depositor has made a deposit with securities or certificates pursuant to paragraph (1), he/shall not claim payment of such deposit unless he/she settles accounts or pays with such securities or certificates. |
| (3) | Unless a depositor settles accounts or pays with securities or certificates pursuant to paragraph (2), the relevant deposit shall not be deemed made. |
[This Article Wholly Amended by Act No. 9628, Apr. 22, 2009]
| Article 16 (Limitation of Deposited Amount) |
| (1) | The Minister of Science and ICT may determine, by kind of deposits, the maximum amount of deposit which a depositor may make. <Amended by Act No. 11690, Mar. 23, 2013; Act No. 14839, Jul. 26, 2017> |
| (2) | The Minister of Science and ICT may determine the minimum amount of deposit which a depositor may make at a time in consideration of trading practices and convenience in conducting business, etc. <Amended by Act No. 11690, Mar. 23, 2013; Act No. 14839, Jul. 26, 2017> |
| (3) | Where the Minister of Science and ICT has determined the maximum amount under paragraph (1) or the minimum amount under paragraph (2), he/she shall publicly announce such amount. <Amended by Act No. 11690, Mar. 23, 2013; Act No. 14839, Jul. 26, 2017> |
[This Article Wholly Amended by Act No. 9628, Apr. 22, 2009]
| Article 17 (Payment of Deposit) |
A communications agency shall pay a deposit at the request of a depositor on a deposit passbook or a certificate of deposit.
[This Article Wholly Amended by Act No. 9628, Apr. 22, 2009]
| Article 18 (Management of Deposited Money) |
| (1) | The Minister of Science and ICT shall manage the deposited money by the following methods within the extent that does not obstruct payment of deposits (including interest): <Amended by Act No. 11690, Mar. 23, 2013; Act No. 14839, Jul. 26, 2017> |
| 1. | Deposit in financial institutions; |
| 2. | Deposit in financial funds; |
| 6. | Acquisition, disposal and lease of real estate for business purpose prescribed by Presidential Decree. |
| (2) | The ratio of the respective total amount of purchasing of securities pursuant to paragraph (1) 3, of lending to financial institutions pursuant to subparagraph 4 of the same paragraph, and of trading of derivatives pursuant to subparagraph 5 of the same paragraph to the deposited money and the holding limit of real estate for business purpose under subparagraph 6 of the same paragraph shall be prescribed by Ordinance of the Ministry of Science and ICT within the extent that does not damage the stability of deposits. <Amended by Act No. 11690, Mar. 23, 2013; Act No. 14839, Jul. 26, 2017> |
| (3) | The Minister of Science and ICT may pay interest and appropriate to other incurred expenses from earnings accrued from management of funds pursuant to paragraph (1). <Amended by Act No. 11690, Mar. 23, 2013; Act No. 14839, Jul. 26, 2017> |
[This Article Wholly Amended by Act No. 9628, Apr. 22, 2009]
| Article 19 (Sale of National Bonds and Public Bonds) |
| (1) | A communications agency may sell national bonds and public bonds among securities purchased pursuant to Article 18 (1) 3. In such cases, upon the request of a purchaser, it may sell them on condition of repurchase. |
| (2) | The Minister of Science and ICT shall determine and publicly announce interest rates on trading of national bonds and public bonds sold on condition of repurchase pursuant to paragraph (1). <Amended by Act No. 11690, Mar. 23, 2013; Act No. 14839, Jul. 26, 2017> |
| (3) | Sale of national bonds and public bonds under paragraph (1), procedures for repurchase agreements, communications agencies dealing therein, and other necessary matters 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. 9628, Apr. 22, 2009]
| Article 20 (Re-Issuance of Deposit Passbook) |
| (1) | In any of the following circumstances, a communications agency may reissue a deposit passbook, a certificate of deposit or a certificate of payment upon the request of a depositor: |
| 1. | Where the depositor has lost it; |
| 2. | Where mentioned items are illegible because it has been defaced or has got damaged; |
| 3. | Where no blank space remains in a deposit passbook. |
| (2) | Charges for reissue of a deposit passbook, etc., payment or exemption thereof, and other procedures for re-issuance, etc. pursuant to paragraph (1) 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. 9628, Apr. 22, 2009]
| Article 21 (Submission of Deposit Passbook) |
Where a communications agency deems it necessary for conducting deposit business, it may request a depositor to submit his/her deposit passbook or certificate of deposit.
[This Article Wholly Amended by Act No. 9628, Apr. 22, 2009]
| Article 22 (Ascertainment of Rightful Person) |
Where a possessor of a deposit passbook or a certificate of deposit requests to pay his/her deposit, a communications agency may pay such deposit after ascertaining whether the possessor is a right rightful person.
[This Article Wholly Amended by Act No. 9628, Apr. 22, 2009]
| Article 23 (Exemption from Liability for Damage) |
In any of the following cases, a communications agency shall not be liable for damage which occurs due to delayed payment:
| 1. | Where a request for payment is not made pursuant to this Act; |
| 2. | Where a communications agency is unable to conduct business due to a natural disaster or any other extenuating circumstance. |
[This Article Wholly Amended by Act No. 9628, Apr. 22, 2009]
| Article 24 (Extinction of Right of Claim for Payment of Deposit) |
| (1) | Where a depositor fails to make a deposit for ten years or fails to make a request for payment of a deposit, addition of interest, change of his/her seal, re-issuance of a deposit passbook (including a certificate of deposit), etc., a communications agency shall give peremptory notice that he/she shall make a request for payment of such a deposit or other necessary request for disposal of the deposit, as prescribed by Ordinance of the Ministry of Science and ICT. <Amended by Act No. 11690, Mar. 23, 2013; Act No. 14839, Jul. 26, 2017> |
| (2) | Where a depositor fails to make a request for payment of a deposit or any other necessary request for disposition of the deposit until two months have passed after peremptory notice given under paragraph (1), a right of claim for payment of such deposit of a depositor shall become extinct. |
| (3) | A right of claim for payment of a deposit for which a certificate of payment has been issued shall become extinct where a depositor fails to make a request for payment with three years after the issuance thereof. |
| (4) | A period of deposit until the maturity of a deposit the maturity of which is fixed, and the term of validity of a certificate of payment shall not be included in the period referred to in paragraphs (1) and (3). |
| (5) | A deposit, the right of claim for payment of a depositor of which has become extinct pursuant to paragraph (2) or (3) shall revert to the National Treasury. |
[This Article Wholly Amended by Act No. 9628, Apr. 22, 2009]
| Article 24-2 (Support to Person who Fails to Request Deposit) |
| (1) | Where a depositor makes a request for payment of a deposit on ground prescribed by Ordinance of the Ministry of Science and ICT among deposits reverted to the National Treasury pursuant to Article 24 (5), the Minister of Science and ICT may pay a specific amount which takes the place of the deposit to the depositor. <Amended by Act No. 11690, Mar. 23, 2013; Act No. 14839, Jul. 26, 2017> |
| (2) | The limit of payment of the amount under paragraph (1) and other matters necessary for payment 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. 9628, Apr. 22, 2009]
| Article 25 (Acceptance of Application) |
| (1) | An insurance contract shall become effective where a person who intends to effect an insurance contract applies for an insurance contract together with payment of the first premium and a communications agency accepts such an application. |
| (2) | Where a communications agency accepts an application pursuant to paragraph (1), it shall prepare an insurance policy and produce it to a policyholder. |
| (3) | Items to be mentioned in an insurance policy referred to in paragraph (2) 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. 9628, Apr. 22, 2009]
| Article 26 (Prohibition against Disadvantageous Amendments According to Special Agreement) |
The Minister of Science and ICT shall not amend the provisions of this Act in any manner disadvantageous to a policyholder, etc. by special agreement with policyholder. <Amended by Act No. 11690, Mar. 23, 2013; Act No. 14839, Jul. 26, 2017>
[This Article Wholly Amended by Act No. 9628, Apr. 22, 2009]
| Article 27 (Terms and Conditions of Insurance) |
| (1) | The Minister of Science and ICT shall determine and publicly announce matters concerning the contents of an insurance contract as the terms and conditions of insurance within the extent prescribed by Ordinance of the Ministry of Science and ICT. <Amended by Act No. 11690, Mar. 23, 2013; Act No. 14839, Jul. 26, 2017> |
| (2) | With respect to an insurance contract, the terms and conditions of insurance shall apply to matters not prescribed by this Act or 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. 9628, Apr. 22, 2009]
| Article 28 (Kinds and Amount of Insurance) |
Kinds of insurance, the limit of contracted insurance proceeds, matters necessary to carry on insurance business, etc. 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. 9628, Apr. 22, 2009]
| Article 29 (Exemption from Physical Examinations) |
When effecting an insurance contract, no physical examination on the insured shall be held: Provided, That this shall not apply to the insured 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. 9628, Apr. 22, 2009]
| Article 30 (Beneficiary of Insurance) |
Where a policyholder does not designate a beneficiary of insurance, the policyholder shall be deemed a beneficiary of insurance.
[This Article Wholly Amended by Act No. 9628, Apr. 22, 2009]
| Article 31 (Payment of Insurance Proceeds after Reduction) |
Where an insured incident occurs within the period prescribed by Ordinance of the Ministry of Science and ICT after an insurance contract becomes effective, a communications agency need not partially pay the insurance proceeds, as 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. 9628, Apr. 22, 2009]
| Article 32 (Succession to Insurance Contract) |
| (1) | A policyholder may have a third party succeed to rights and duties according to an insurance contract with the consent of the insured. |
| (2) | Where a third party has succeeded to the rights and duties pursuant to paragraph (1), if a policyholder fails to advise a communications agency of the succession, he/she shall not oppose. |
[This Article Wholly Amended by Act No. 9628, Apr. 22, 2009]
| Article 33 (Effect of Revision of Terms and Conditions of Insurance) |
| (1) | The revision of the terms and conditions of insurance has no effect on an insurance contract already made. |
| (2) | In cases of the revision of the terms and conditions of insurance, where the Minister of Science and ICT deems it specially necessary for the protection of interest of a policyholder, etc., notwithstanding paragraph (1), he/she may acknowledge the effect thereof for the future. <Amended by Act No. 11690, Mar. 23, 2013; Act No. 14839, Jul. 26, 2017> |
[This Article Wholly Amended by Act No. 9628, Apr. 22, 2009]
| Article 34 (Revision of Insurance Contract) |
A policyholder may request a communications agency to revise the contents of a contract, as 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. 9628, Apr. 22, 2009]
| Article 35 (Cancellation of Insurance Contract) |
| (1) | A policyholder may cancel an insurance contract at any time before an insured incident occurs. |
| (2) | Where a policyholder or the insured fails to notify important matters prescribed by Ordinance of the Ministry of Science and ICT or is negligent in making a notification thereof due to willful misconduct or gross negligence when effecting an insurance contract, a communications agency may cancel such insurance contract within one month from the date it comes to know such fact or within five years from the date the insurance contract becomes effective. <Amended by Act No. 11690, Mar. 23, 2013; Act No. 14839, Jul. 26, 2017> |
| (3) | Where a communications agency becomes aware that an insured incident has already occurred or cannot occur except cases referred to in Article 36 (1) 2 at the time of the conclusion of an insurance contract, it may cancel the insurance contract. |
[This Article Wholly Amended by Act No. 9628, Apr. 22, 2009]
| Article 36 (Invalidation of Insurance Contract) |
| (1) | An insurance contract falling under any of the following subparagraphs shall be invalidated: |
| 1. | An insurance contract concluded by a policyholder or the insured, by fraud; |
| 2. | An insurance contract effected which a policyholder, etc. knows at the time of the conclusion of the insurance contract that an insured incident has already occurred or cannot occur. |
| (2) | Where an insurance contract is invalidated pursuant to paragraph (1), no communications agency shall pay insurance proceeds nor shall return relevant premiums already paid by a policyholder. |
[This Article Wholly Amended by Act No. 9628, Apr. 22, 2009]
| Article 37 (Loss of Effect of Insurance Contract) |
| (1) | Where a policyholder fails to pay premiums and the grace period prescribed by Ordinance of the Ministry of Science and ICT has lapsed, the insurance contract shall lose effect. <Amended by Act No. 11690, Mar. 23, 2013; Act No. 14839, Jul. 26, 2017> |
| (2) | Paragraph (1) shall not apply where a policyholder requests a communications agency, within one month after the grace period pursuant to paragraph (1) has lapsed, to change such insurance contract to an insurance contract of which payment of premiums has been completed. |
[This Article Wholly Amended by Act No. 9628, Apr. 22, 2009]
| Article 38 (Payment of Refunds) |
Where a communications agency has not come to pay insurance proceeds pursuant to Article 655 of the Commercial Act which is applied mutatis mutandis in Articles 34, 35, 36 (1), 37 (1), 43 and 50, it shall partially refund the amount accumulated for a beneficiary of an insurance policy to a policyholder. In such cases, matters concerning the extent of the amount to be refunded (hereinafter referred to as "refund") and procedures for refund, etc. shall be prescribed by Ordinance of the Ministry of Science and ICT: Provided, That where an insured incident pursuant to subparagraph 2 of Article 43 has occurred by a policyholder, a communications agency shall not refund. <Amended by Act No. 11690, Mar. 23, 2013; Act No. 14839, Jul. 26, 2017> [This Article Wholly Amended by Act No. 9628, Apr. 22, 2009]
| Article 39 (Revival of Insurance Contract) |
| (1) | A policyholder may request a communications agency to revive an insurance contract invalidated with payment of unpaid premiums within the period fixed in the provisions of insurance within two years after the insurance contract loses effect pursuant to Article 37 (1). |
| (2) | The revival pursuant to paragraph (1) shall become effective from the time a communications agency accepts such request. |
| (3) | Where an insurance contract is revived, the insurance contract shall not be deemed to have lost effect from the beginning. |
[This Article Wholly Amended by Act No. 9628, Apr. 22, 2009]
| Article 40 (Provisions Applicable Mutatis Mutandis at Time of Revival of Insurance Contract) |
Articles 31, 35 (2) and (3) and 36 shall apply mutatis mutandis to the revival of an insurance contract. [This Article Wholly Amended by Act No. 9628, Apr. 22, 2009]
| Article 41 (Lending of Refunds) |
Upon the request of a policyholder, a communications agency may lend money within the extent of the amount refundable in cases of the cancellation of an insurance contract, etc. as 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. 9628, Apr. 22, 2009]
| Article 42 (Deduction at Time of Payment of Insurance Money) |
If a loan has been made or an unpaid premium remains pursuant to Article 41 when a communications agency pays insurance proceeds or a refund, the communications agency shall pay insurance proceeds or a refund after the deduction of such loan or unpaid premium from the amount payable. [This Article Wholly Amended by Act No. 9628, Apr. 22, 2009]
| Article 43 (Exemption from Responsibility of Communications Agency) |
A communications agency shall not be responsible for payment of insurance proceeds upon an insured incident falling under any of the following subparagraphs:
| 1. | An insured incident which occurs because the insured commits suicide or injures himself/herself within two years after an insurance contract or the revival of the insurance contract pursuant to Article 39 (2) becomes effective; |
| 2. | An insured incident to life or body which caused intentionally by a policyholder or a beneficiary of an insurance policy: Provided, That where beneficiaries of an insurance policy are several people, it shall be applicable only to part of the proceeds he/she is to receive. |
[This Article Wholly Amended by Act No. 9628, Apr. 22, 2009]
| Article 44 (Payment of Insurance Proceeds after Reduction) |
| (1) | Where the occurrence of an insured incident due to a natural disaster, a war or any other uprising is likely to substantially affect the basis of the calculation of insurance proceeds, a communications agency may pay the insurance proceeds after the reduction. |
| (2) | The rate of reduction of payment of insurance proceeds pursuant to paragraph (1) 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. 9628, Apr. 22, 2009]
| Article 45 (Protection of Right of Receipt) |
| (1) | No right to receive insurance proceeds or a refund shall be transferred. |
| (2) | With regard to a right to receive insurance proceeds, no amount referred to in the following subparagraphs shall be seized: |
| 1. | The amount equivalent to 1/2 of a right of claim for a death benefit which a beneficiary of an insurance policy acquires due to death of his/her lineal ascendant, lineal descendant or spouse; |
| 2. | The amount equivalent to 1/2 of a right of claim for a disability benefit which a beneficiary of an insurance policy acquires due to disability of the person in question, his/her lineal ascendant, lineal descendant or spouse; |
| 4. | The amount equivalent to 1/2 of a right of claim for insurance proceeds (excluding a right of claim for insurance proceeds falling under subparagraphs 1 through 3) which a beneficiary of an insurance policy acquires because an insured incident occurs to a disabled person registered pursuant to Article 32 of the Act on Welfare of Persons with Disabilities. |
| (3) | With regard to a right to claim insurance proceeds and a right to claim a refund of term insurance except a right of claim for insurance proceeds referred to in the subparagraphs of paragraph (2), the amount prescribed by Presidential Decree (hereinafter in this Article referred to as "minimum guarantee amount") shall not be seized because it is deemed necessary for maintaining livelihood of a beneficiary of an insurance policy or a policyholder. In such cases, if insurance contracts are several, the aggregate amount falling under their rights to claim insurance proceeds or rights to claim refunds shall apply. |
| (4) | Where insurance contracts which acquire rights of claim for insurance proceeds referred to in the subparagraphs of paragraph (2) are several or the aggregate of insurance contracts which require rights of claim for insurance proceeds or rights of claim for refunds referred to in the subparagraphs of paragraph (2) and paragraph (3) are several, paragraph (3) shall not apply, and paragraph (2) shall apply to rights of claim for insurance proceeds only referred to in the subparagraphs of paragraph (2) by insurance contract. |
| (5) | Where the amount to which paragraphs (2) and (4) apply (where insurance contracts are several, referring to the total amount thereof) is less than the minimum amount of guarantee, notwithstanding paragraphs (2) and (4), the minimum amount of guarantee shall be the amount which shall not be seized. |
[This Article Wholly Amended by Act No. 9628, Apr. 22, 2009]
| Article 46 (Collection of Unfair Profits) |
| (1) | A communications agency may request a person who has received insurance proceeds by deceit or any other unlawful means to return the amount paid. In such cases, where a policyholder, etc. has caused insurance proceeds to be paid by misrepresentation or false testimony, the policyholder, etc. shall take the responsibility jointly and severally. |
| (2) | In cases under paragraph (1), a refund shall not be paid. |
[This Article Wholly Amended by Act No. 9628, Apr. 22, 2009]
| Article 46-2 (Re-Insurance) |
| (1) | Where the Minister of Science and ICT deems it necessary for the efficient management of insurance and the proper diversification of risks, he/she may purchase a re-insurance policy. <Amended by Act No. 11690, Mar. 23, 2013; Act No. 14839, Jul. 26, 2017> |
| (2) | The limit of re-insurance under paragraph (1) and other matters necessary for a re-insurance policy, etc. 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. 9628, Apr. 22, 2009]
| Article 47 (Installation of Welfare Facilities) |
| (1) | The Minister of Science and ICT may install facilities necessary for medical treatment, recuperation, etc. for the promotion of welfare of policyholders, etc. <Amended by Act No. 11690, Mar. 23, 2013; Act No. 14839, Jul. 26, 2017> |
| (2) | The Minister of Science and ICT may allow persons, other than policyholders, etc. to use facilities under paragraph (1). <Amended by Act No. 14839, Jul. 26, 2017> |
[This Article Wholly Amended by Act No. 9628, Apr. 22, 2009]
| Article 48 (Payment of Compensation) |
| (1) | A communications agency may pay compensation to any person who conducts insurance business, based on his/her performance |
| (2) | Matters concerning kinds of compensation, the extent of payment, and the amount of compensation, etc. under paragraph (1) 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. 9628, Apr. 22, 2009]
| Article 48-2 (Establishment and Composition of Postal Insurance Dispute Mediation Committee) |
| (1) | A Postal Insurance Dispute Mediation Committee (hereinafter referred to as the “Dispute Mediation Committee”) shall be established under the jurisdiction of the Minister of Science and ICT to mediate all dispute arising between the persons interested in postal insurance in connection to subscription to insurance and insurance contracts. <Amended by Act No. 11690, Mar. 23, 2013; Act No. 13517, Dec. 1. 2015; Act No. 14839, Jul. 26, 2017> |
| (2) | The Dispute Mediation Committee shall be comprised of not more than eleven members, including one chairperson. <Newly Inserted by Act No. 13517, Dec. 1. 2015> |
| (3) | The chairperson of the Dispute Mediation Committee shall be appointed by the Minister of Science and ICT from among the committee members and such members shall be commissioned by the Minister of Science and ICT from among: <Newly Inserted by Act No. 13517, Dec. 1. 2015; Act No. 14839, Jul. 26, 2017> |
| 1. | Persons with at least ten years’ experience in the review and dispute mediation and other related affairs in an insurance-related agency or organization or insurance company; |
| 2. | Certified attorneys-at-law or medical specialists; |
| 4. | Other persons with abundant knowledge about, and experience in, insurance or the mediation of insurance-related disputes, and recognized by the Minister of Science and ICT. |
| (4) | Each member shall hold office for a term of two years and may be appointed consecutively for further terms. <Newly Inserted by Act No. 13517, Dec. 1. 2015> |
| (5) | Except as otherwise expressly provided for in this Act, the composition and operation of, and procedures for mediation of the Dispute Mediation Committee, and other necessary matters, shall be prescribed by Presidential Decree. <Amended by Act No. 13517, Dec. 1. 2015> |
[This Article Wholly Amended by Act No. 9628, Apr. 22, 2009]
| Article 48-3 (Exclusion, Challenge or Recusal of Members) |
| (1) | Where a member of the Dispute Mediation Committee falls under any of the following, the member shall be excluded from deliberating and passing a resolution on the relevant dispute: |
| 1. | Where the member or his/her current or former spouse becomes a party to the relevant dispute (where a party to the relevant dispute is a corporation, association, etc., including its executives; the same shall apply hereafter in this subparagraph and subparagraph 2), or is a joint holder of any right or co-obligor with the party to the relevant dispute; |
| 2. | Where the member is or was a relative of a party to the relevant dispute; |
| 3. | Where the member has given a testimony, statement or advice or has conducted an examination in connection with the relevant dispute; |
| 4. | Where the member or a corporation, association, etc., with which that member is affiliated is the current or former agent of a party to the relevant dispute. |
| (2) | Where the circumstances indicate that it would be impracticable to expect fair deliberation and decisions of a member, any party to the relevant dispute may apply for a challenge to the member with the Dispute Mediation Committee and the Dispute Mediation Committee shall determine whether to approve the application by resolution. In such cases, the member subject to challenge shall not participate in such resolution. |
| (3) | Each member who has any of the grounds for exclusion provided for in the subparagraphs of paragraph (1) shall recuse himself/herself from deliberating and passing a resolution on the relevant agenda. |
[This Article Newly Inserted by Act No. 13517, Dec. 1. 2015]
| Article 48-4 (Dismissal of Members) |
The Minister of Science and ICT may dismiss a member if: <Amended by Act No. 14839, Jul. 26, 2017>
| 1. | The member becomes unable to perform any of his/her duties due to a mental disorder; |
| 2. | The member is deemed unfit to be in office due to neglect of duty, loss of dignity or on other grounds; |
| 3. | The member is prosecuted for a criminal charge in relation to his/her duty; |
| 4. | The member fails to recuse himself/herself although any of the subparagraphs of Article 48-3 (1) applies to him/her. |
[This Article Newly Inserted by Act No. 13517, Dec. 1. 2015]
| Article 48-5 (Dispute Mediation Process) |
| (1) | Upon receipt of an application for mediation of a dispute, the chairperson shall immediately submit the application to the meeting of the Dispute Mediation Committee and notify the disputing parties of the details thereof: Provided, That the chairperson need not submit any application to the meeting of the Dispute Mediation Committee if: |
| 1. | A lawsuit has been filed in court; |
| 2. | The details of the dispute are deemed to have no practical benefit for deliberation and mediation pursuant to related statutes, a judicial precedent, evidence, etc.; |
| 3. | The details of the dispute are deemed inappropriate for a subject matter of mediation. |
| (2) | Where the Dispute Mediation Committee deems it necessary to supplement information, etc. about the dispute submitted to the committee meeting, it may require the disputing parties to supplement such information or submit related information within the prescribed period. |
| (3) | The Dispute Mediation Committee shall finish deliberation and mediation of a dispute within 60 days from the date the dispute is submitted to the committee meeting. |
[This Article Newly Inserted by Act No. 13517, Dec. 1. 2015]
| Article 48-6 (Deemed Public Officials for Purposes of Penalty Provisions) |
[This Article Newly Inserted by Act No. 13517, Dec. 1. 2015]
| Article 49 (Special Accounts) |
Accounts of insurance pursuant to this Act shall be prescribed separately by law.
[This Article Wholly Amended by Act No. 9628, Apr. 22, 2009]
| Article 50 (Application Mutatis Mutandis of Commercial Act) |
[This Article Wholly Amended by Act No. 9628, Apr. 22, 2009]
| Article 51 (Delegation of Authority) |
The Minister of Science and ICT may delegate part of his/her authority under this Act to the head of its affiliated organization, 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. 9628, Apr. 22, 2009]
ADDENDUM
This Act shall enter into force on January 1, 1983: Provided, That the provisions on postal insurance shall enter into force on July 1, 1983.
ADDENDUM <Act No. 5454, Dec. 13, 1997>
This Act shall enter into force on January 1, 1998. (Proviso Omitted.)
ADDENDA <Act No. 5563, Sep. 17, 1998>
| (1) | (Enforcement Date) This Act shall enter into force on the date of its promulgation. |
| (2) | (Transitional Measures concerning Exemption from Responsibility of Communications Agency for Insured Incident) Notwithstanding the amended provisions of subparagraph 1 of Article 43, the previous provisions shall apply to the exemption from responsibility of a communications agency for an insured incident which occurs because the insured of an insurance contract which takes effect pursuant to Article 25 (1) or 39 (2) at the time this Act enters into force commits suicide or injures himself/herself. |
ADDENDA <Act No. 6062, Dec. 28, 1999>
Article 1 (Enforcement Date)
This Act shall enter into force on March 1, 2000.
Article 2 (Transitional Measures concerning Change of Name)
Communications savings and communications insurance pursuant to the previous provisions as at the time this Act enters into force shall be deemed postal savings and postal insurance respectively pursuant to 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.
Articles 2 and 3 Omitted.
ADDENDA <Act No. 6891, May 29, 2003>
Article 1 (Enforcement Date)
This Act shall enter into force three months after the date of its promulgation. (Proviso Omitted.)
Articles 2 through 34 Omitted.
ADDENDUM <Act No. 7141, Jan. 29, 2004>
This Act shall enter into force six months after the date of its promulgation.
ADDENDUM <Act No. 7819, Dec. 30, 2005>
This Act shall enter into force six months after the date of its promulgation.
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.
ADDENDA <Act No. 8863, Feb. 29, 2008>
Article 1 (Enforcement Date)
This Act shall enter into force on the date of its promulgation.
Articles 2 through 5 Omitted.
ADDENDA <Act No. 9628, Apr. 22, 2009>
Article 1 (Enforcement Date)
This Act shall enter into force six months after the date of its promulgation.
Article 2 (Applicability to Payment of Refund)
The amended provisions of Article 38 shall apply beginning with the first insurance contract invalidated pursuant to the amended provisions of Article 36 (1) after this Act enters into force. Article 3 (Applicability to Restrictions on Seizure of Insurance Proceeds or Refund)
The amended provisions of Article 45 (2) through (5) shall also apply to cases falling under any of the following subparagraphs from May 29, 2008 until this Act enters into force: | 1. | Where a collecting creditor of claims against insurance proceeds and a refund raises a lawsuit claiming payment of money collected (including money transferred) and the lawsuit is pending; |
| 2. | Where the court has issued orders to seize and collect (including orders to transfer) claims against insurance proceeds and a refund; |
| 3. | Where the State and a local government notify a communications agency of the seizure of claims against insurance proceeds and a refund. |
ADDENDA <Act No. 11115, Dec. 2, 2011>
Article 1 (Enforcement Date)
This Act shall enter into force from the date on which the Free Trade Agreement between the Republic of Korea and the United States of America and Exchange of Letters related to the Agreement takes effect: Provided, That the amended provisions of Article 10 (5) shall enter into force from the date on which two years lapse after the Free Trade Agreement between the Republic of Korea and the United States of America and Exchange of Letters related to the Agreement takes effect. Article 2 (Special Cases on Establishment of New Kinds of Insurance)
New kinds of insurance shall not be established in the Ordinance of the Ministry of Science, ICT and Future Planning under Article 28 after this Act enters into force: Provided, That existing kinds of insurance may be changed and the scope of changes shall be prescribed by Ordinance of the Ministry of Science, ICT and Future Planning.
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.
ADDENDUM <Act No. 13517, Dec. 1, 2015>
This Act shall enter into force six months after the date of its promulgation.
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 promulgated before this Act enters into force but the enforcement dates of which have yet to arrive, among the Acts amended under Article 5 of the Addenda, shall enter into force on the respective enforcement dates of the relevant Acts.
Articles 2 through 6 Omitted.