ENFORCEMENT DECREE OF THE ECONOMIC DEVELOPMENT COOPERATION FUND ACT
Presidential Decree No. 12141, Apr. 23, 1987
Amended by Presidential Decree No. 13870, Mar. 6, 1993
Presidential Decree No. 14447, Dec. 23, 1994
Presidential Decree No. 14438, Dec. 23, 1994
Presidential Decree No. 15135, Aug. 8, 1996
Presidential Decree No. 15391, jun. 13, 1997
Presidential Decree No. 16211, Mar. 31, 1999
Presidential Decree No. 16326, May 24, 1999
Presidential Decree No. 20720, Feb. 29, 2008
Presidential Decree No. 22075, Mar. 15, 2010
Presidential Decree No. 24087, Sep. 7, 2012
Presidential Decree No. 24441, Mar. 23, 2013
Presidential Decree No. 26991, Feb. 29, 2016
Presidential Decree No. 28211, Jul. 26, 2017
Presidential Decree No. 28678, Feb. 27, 2018
[This Article Wholly Amended by Presidential Decree No.24087, Sep. 7, 2012]
| Article 2 (Methods of Issuing Bonds) |
| (1) | Interest rates, maturity dates, and terms and conditions of redemption of, and other matters necessary for, Economic Development Cooperation Fund bonds (hereinafter referred to as "Bonds") issued in the Republic of Korea, shall be determined and publicly announced by the Minister of Strategy and Finance. |
| (2) | Bond interest rates shall be determined in consideration of the levels of interest rates of national bonds, public bonds, surety bonds, etc. at the time of issuance. |
| (3) | Bonds shall be issued either at a face value or at a discount. |
| (4) | Bonds shall be issued on the open market: Provided, That, if deemed necessary by the Minister of Strategy and Finance, some or all of the bonds issued may be acquired by financial companies, public institutions established under the Act on the Management of Public Institutions, exporters’ organizations, or other economic organizations, upon consultation with the heads of related central administrative agencies. |
[This Article Wholly Amended by Presidential Decree No.24087, Sep. 7, 2012]
| Article 3 (Handling of Bond-Related Affairs) |
The President of the Export-Import Bank of Korea shall handle affairs relating to the sale, redemption, etc. of Bonds.
[This Article Wholly Amended by Presidential Decree No.24087, Sep. 7, 2012]
| Article 4 (Entrustment of Affairs concerning Operation and Management of Fund) |
| (1) | The Minister of Strategy and Finance shall entrust the President of the Export-Import Bank of Korea to handle affairs concerning the operation and management of the Economic Development Cooperation Fund (hereinafter referred to as the "Fund") pursuant to Article 9 (2) of the Economic Development Cooperation Fund Act (hereinafter referred to as the "Act"). In this case, expenses incurred in handling affairs concerning such operation and management shall be paid out of the Fund assets. |
| (2) | Where the President of the Export-Import Bank of Korea handles any affairs entrusted pursuant to paragraph (1), he/she shall take necessary measures for the efficient operation of the Fund and owe the duty of care as a good fiduciary in handling such affairs. |
[This Article Wholly Amended by Presidential Decree No.24087, Sep. 7, 2012]
| Article 5 (Composition of Committee) |
| (1) | The Fund Management Committee established under Article 10 of the Act (hereinafter referred to as the "Committee") shall be composed of the following members: <Amended by Presidential Decree No. 24441, Mar. 23, 2013; Presidential Decree No. 28211, Jul. 26, 2017> |
| 1. | The Minister of Strategy and Finance; |
| 2. | The Minister of Science and ICT; |
| 3. | The Minister of Foreign Affairs; |
| 4. | The Minister of Agriculture, Food and Rural Affairs; |
| 5. | The Minister of Trade, Industry and Energy; |
| 6. | The Minister of Health and Welfare; |
| 7. | The Minister of Land, Infrastructure and Transport; |
| 8. | The Minister of Oceans and Fisheries; |
| 9. | The Minister of Office for Government Policy Coordination; |
| 10. | The Senior Secretary to the President for Economic Affairs; |
| 11. | The First Deputy Director of the National Intelligence Service; |
| 12. | The President of the Export-Import Bank of Korea; |
| 13. | The President of the Korea International Cooperation Agency. |
| (2) | The Minister of Strategy and Finance shall chair the Committee meetings (hereinafter referred to as the "Chairperson"). |
[This Article Wholly Amended by Presidential Decree No.24087, Sep. 7, 2012]
| Article 6 (Duties of Chairperson) |
| (1) | The Chairperson shall represent the Committee and preside over its meetings and affairs. |
| (2) | Where the Chairperson is unable to perform any of his/her duties due to unavoidable circumstances, a member of the Committee designated in advance by the Chairperson shall perform his/her duties on his/her behalf. |
[This Article Wholly Amended by Presidential Decree No.24087, Sep. 7, 2012]
| Article 7 (Operation of Committee) |
| (1) | A meeting of the Committee (hereinafter referred to as "meeting") shall be convened by the Chairperson when the Chairperson deems it necessary or upon request by a ministerial member of the Committee. |
| (2) | A meeting shall be opened with the attendance of at least two-thirds of the incumbent members including the Chairperson, and resolutions shall be passed with the concurrence of a majority of those members present. |
| (3) | Where necessary for deliberation by the Committee, the Chairperson may request the heads of related central administrative agencies and other relevant agencies to attend its meetings and present their opinions. |
[This Article Wholly Amended by Presidential Decree No.24087, Sep. 7, 2012]
| Article 8 (Submission of Agenda Items) |
The Minister of Strategy and Finance shall prepare agenda items involving the following and submit them to the Committee:
| 1. | An assistance plan for important programs under the proviso to Article 11 (1) 5; |
| 3. | A report on final accounts under Article 13 (1); |
| 4. | Important matters in the Fund Operation and Management Regulations under Article 20 (2). |
[This Article Wholly Amended by Presidential Decree No.24087, Sep. 7, 2012]
| Article 9 (Administrative Secretary of Committee) |
| (1) | The Committee shall have one administrative secretary and the administrative secretary shall become the Director General in charge of affairs of Economic Development Cooperation Fund of the Ministry of Strategy and Finance. <Amended by Presidential Decree No. 28678, Feb. 27, 2018> |
| (2) | The administrative secretary shall handle administrative affairs of the Committee under the supervision of the Chairperson. |
[This Article Wholly Amended by Presidential Decree No. 24087, Sep. 7, 2012]
| Article 10 (Operational Rules of Committee) |
In addition to the matters provided for in this Decree, detailed matters necessary for the operation of the Committee shall be determined by the Chairperson upon resolution by the Committee.
[This Article Wholly Amended by Presidential Decree No.24087, Sep. 7, 2012]
| Article 11 (Procedures for Assistance from Fund) |
| (1) | Assistance from the Fund at the request of the government of a developing country shall be made based on the following procedures: <Amended by Presidential Decree No. 24441, Mar. 23, 2013; Presidential Decree No. 28211, Jul. 26, 2017> |
| 1. | When the Minister of Foreign Affairs or any government delegate under the Act on the Appointment and Powers of Government Delegates and Special Envoys receives a request for assistance from the government of a developing country, he/she shall inform the Minister of Strategy and Finance of the content thereof via the Minister with jurisdiction over the program for which such request for assistance has been made (hereinafter referred to as "program"); |
| 2. | When the Minister with jurisdiction over the relevant program receives a request for assistance from the government of the developing country, he/she shall inform the Minister of Strategy and Finance of the details thereof via the Minister of Foreign Affairs; |
| 3. | When the Minister of Strategy and Finance receives a notice pursuant to subparagraph 1 or 2, he/she shall notify the heads of related central administrative agencies of the details thereof and request the President of the Export-Import Bank of Korea to examine the program; |
| 4. | When the President of the Export-Import Bank of Korea receives a request for examination of the program pursuant to subparagraph 3, he/she shall submit an examination report that states the feasibility and validity of, and the amount, conditions, etc. of assistance to, such program with the necessary help of related agencies to the Minister of Strategy and Finance; |
| 5. | The Minister of Strategy and Finance shall determine an assistance plan that includes the amount, conditions, etc. of assistance for the relevant program in consultation with the Minister of Science and ICT, the Minister of Foreign Affairs, the Minister of Trade, Industry and Energy, and the Minister with jurisdiction over the program: Provided, That determination of an assistance plan for an important program as prescribed by Ordinance of the Ministry of Strategy and Finance shall be determined through deliberation by the Committee; |
| 6. | The Minister of Strategy and Finance shall notify the Minister of Foreign Affairs, the Minister with jurisdiction over the program, the heads of related central administrative agencies, and the President of the Export-Import Bank of Korea of the assistance pan determined pursuant to subparagraph 5; |
| 7. | The Minister of Foreign Affairs shall inform the government of the relevant developing country of the assistance plan notified by the Minister of Strategy and Finance, and when the government of the developing country accepts such plan, both governments shall enter into an agreement thereon; |
| 8. | The President of the Export-Import Bank of Korea shall enter into a loan agreement, etc. with a borrower, etc. of the relevant developing country according to an agreement concluded pursuant to subparagraph 7. |
| (2) | Where a feasibility study for a program is required before the Minister of Strategy and Finance requests the President of the Export-Import Bank of Korea to examine the relevant program pursuant to paragraph (1) 3, the Minister of Strategy and Finance may request the Minister of Foreign Affairs to implement a development research program conducted by the Korea International Cooperation Agency in consultation with the Minister with jurisdiction over the program. <Amended by Presidential Decree No. 24441, Mar. 23, 2013> |
| (3) | Where an inter-governmental agreement under paragraph (1) 7 and a loan agreement under paragraph (1) 8 are concluded, the Minister of Foreign Affairs and the President of the Export-Import Bank of Korea shall make it clear that the determination of assistance under paragraph (1) 5 shall cease to have effect where a borrower, etc. fails to enter into a purchase agreement or technical service agreement within the period of one and a half years from the date the above loan agreement becomes effective. |
| (4) | In regards to a program for which funds are provided by means of syndicated loan by an international development financing organization, foreign development aid agency, or domestic or foreign financial institution, some of the procedures provided for in paragraph (1) may be omitted through deliberation by the Committee. |
| (5) | In addition to the matters provided for in paragraphs (1) through (4), necessary matters concerning the procedures for assistance from the Fund shall be prescribed by the Fund Operation and Management Regulations. |
[This Article Wholly Amended by Presidential Decree No.24087, Sep. 7, 2012]
| Article 12 (Fund Management Plan) |
The Minister of Strategy and Finance shall prepare and submit a Fund management plan or revise any existing Fund management plan pursuant to the National Finance Act. [This Article Wholly Amended by Presidential Decree No.24087, Sep. 7, 2012]
| Article 13 (Financial Report) |
Each fiscal year, the Minister of Strategy and Finance shall prepare and submit a report on final accounts of the Fund pursuant to the National Finance Act. [This Article Wholly Amended by Presidential Decree No.24087, Sep. 7, 2012]
| Article 14 (Management of Surplus Funds) |
"Other methods prescribed by Presidential Decree" in subparagraph 4 of Article 12 of the Act means either of the following: | 1. | Depositing surplus funds in international financial organizations or foreign financial companies; |
| 2. | Purchasing securities issued abroad. |
[This Article Wholly Amended by Presidential Decree No.24087, Sep. 7, 2012]
| Article 15 (Establishment of Account of Fund) |
The Minister of Strategy and Finance shall establish an account for the Economic Development Cooperation Fund at the Bank of Korea to clarify revenue and expenses of the Fund.
[This Article Wholly Amended by Presidential Decree No.24087, Sep. 7, 2012]
| Article 16 (Revenues and Expenses of Fund) |
| (1) | The revenues of the Fund shall be comprised of contributions, borrowings, money raised from bonds issued, money withdrawn, interest, dividends and other income accruing from the operation of the Fund. |
| (2) | The expenses of the Fund shall be comprised of loans, equity-investments, payments of principal and interest, expenses incurred in issuing bonds, and other expenses incurred in the operation and management of the Fund. |
[This Article Wholly Amended by Presidential Decree No.24087, Sep. 7, 2012]
| Article 17 (Fiscal Year of Fund) |
The fiscal year of the Fund shall coincide with that of the Government.
[This Article Wholly Amended by Presidential Decree No.24087, Sep. 7, 2012]
| Article 18 (Accounting Standards of Fund) |
| (1) | The President of the Export-Import Bank of Korea shall establish accounts for the Fund, separate from the other accounts of the Export-Import Bank of Korea. |
| (2) | The accounting standards of the Fund shall conform with the business accounting principles. |
[This Article Wholly Amended by Presidential Decree No.24087, Sep. 7, 2012]
| Article 19 (Reporting of Funding and Management Conditions of Fund) |
The President of the Export-Import Bank of Korea shall report quarterly funding and management conditions of the Fund to the Minister of Strategy and Finance within 20 days after the end of each quarter.
[This Article Wholly Amended by Presidential Decree No.24087, Sep. 7, 2012]
| Article 20 (Fund Operation and Management Regulations) |
| (1) | The Minister of Strategy and Finance shall prepare Fund Operation and Management Regulations including the following: <Amended by Presidential Decree No. 26991, Feb. 29, 2016> |
| 1. | Matters regarding investments such as investment methods; |
| 2. | Matters regarding loans, such as their types, interest rates, repayment schedules, and methods of principal and interest collection; |
| 3. | Matters regarding methods and procedures for compensating for losses under subparagraph 5 of Article 7 of the Act; |
| 4. | Other matters necessary for the operation and management of the Fund. |
| (2) | When the Minister of Strategy and Finance formulates the Fund Operation and Management Regulations under paragraph (1), important matters related to basic policies on the operation and management of the Fund shall be reviewed by the Committee. The same shall also apply where he/she intends to revise the aforesaid Regulations. |
[This Article Wholly Amended by Presidential Decree No.24087, Sep. 7, 2012]
ADDENDUM
This Decree shall enter into force on the date of its promulgation.
ADDENDA <Presidential Decree No. 13870, Mar. 6, 1993>
Article 1 (Enforcement Date)
This Decree shall enter into force on the date of its promulgation
Articles 2 through 4 Omitted.
ADDENDA <Presidential Decree No. 14438, Dec. 23, 1994>
Article 1 (Enforcement Date)
This Decree shall enter into force on the date of its promulgation.
Articles 2 through 5 Omitted.
ADDENDA <Presidential Decree No. 14447, Dec. 23, 1994>
Article 1 (Enforcement Date)
This Decree shall enter into force on the date of its promulgation. (Proviso Omitted.)
Articles 2 through 5 Omitted.
ADDENDA <Presidential Decree No. 15135, Aug. 8, 1996>
Article 1 (Enforcement Date)
This Decree shall enter into force on the date of its promulgation.
Articles 2 through 8 Omitted.
ADDENDA <Presidential Decree No. 15391, Jun. 13, 1997>
| (1) | (Enforcement Date) This Decree shall enter into force on the date of its promulgation. |
| (2) | (Examples of Application) The amended provisions of Article 11 (3) shall start to be applied in relation to a Project which the Government decides, for the first time after the entry into force of this Decree, to provide with a Fund. |
ADDENDA <Presidential Decree No. 16211, Mar. 31, 1999>
Article 1 (Enforcement Date)
This Decree shall enter into force on the date of its promulgation.
Articles 2 through 4 Omitted.
ADDENDA <Presidential Decree No. 16326, May 24, 1999>
Article 1 (Enforcement Date)
This Decree shall enter into force on the date of its promulgation.
Articles 2 through 4 Omitted.
ADDENDA <Presidential Decree No. 20720, Feb. 29, 2008>
Article 1 (Enforcement Date)
This Decree shall enter into force on the date of its promulgation. (Proviso Omitted.)
Articles 2 through 8 Omitted.
ADDENDA <Presidential Decree No. 22075, Mar. 15, 2010>
Article 1 (Enforcement Date)
This Decree shall enter into force on March 19, 2010. (Proviso Omitted.)
Article 2 Omitted.
ADDENDUM <Presidential Decree No. 24087, Sep. 7, 2012>
This Decree shall enter into force on the date of its promulgation.
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. 26991, Feb. 29, 2016>
This Decree shall enter into force on March 1, 2016.
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 amendments to the Presidential Decrees, which were promulgated before this Decree enters into force but enforcement dates of which have yet to arrive, from among the Presidential Decrees amended under Article 8 of the Addenda, shall enter into force on their respective enforcement dates.
Articles 2 through 8 Omitted.
ADDENDUM <Presidential Decree No. 28678, Feb. 27, 2018>
This Decree shall enter into force on the date of its promulgation.