ENFORCEMENT DECREE OF THE ACT ON REGISTRATION OF CREDIT BUSINESS AND PROTECTION OF FINANCE USERS
Presidential Decree No. 17765, Oct. 28, 2002
Amended by Presidential Decree No. 18312, Mar. 17, 2004
Presidential Decree No. 19019, Aug. 31, 2005
Presidential Decree No. 20313, Oct. 4, 2007
Presidential Decree No. 20653, Feb. 29, 2008
Presidential Decree No. 20758, Mar. 28, 2008
Presidential Decree No. 21446, Apr. 21, 2009
Presidential Decree No. 21673, Aug. 5, 2009
Presidential Decree No. 22135, Apr. 20, 2010
Presidential Decree No. 22298, Jul. 21, 2010
Presidential Decree No. 22991, jun. 27, 2011
Presidential Decree No. 23321, Nov. 30, 2011
Presidential Decree No. 23488, Jan. 6, 2012
Presidential Decree No. 23644, Feb. 29, 2012
Presidential Decree No. 24076, Aug. 31, 2012
Presidential Decree No. 24435, Mar. 23, 2013
Presidential Decree No. 24599, jun. 11, 2013
Presidential Decree No. 24638, jun. 28, 2013
Presidential Decree No. 25293, Apr. 1, 2014
Presidential Decree No. 25532, Aug. 6, 2014
Presidential Decree No. 25588, Sep. 3, 2014
Presidential Decree No. 25751, Nov. 19, 2014
Presidential Decree No. 25840, Dec. 9, 2014
Presidential Decree No. 27322, Jul. 6, 2016
Presidential Decree No. 27472, Aug. 31, 2016
Presidential Decree No. 28218, Jul. 26, 2017
Presidential Decree No. 28257, Aug. 29, 2017
Presidential Decree No. 28386, Oct. 17, 2017
Presidential Decree No. 28420, Nov. 7, 2017
Presidential Decree No. 29269, Oct. 30, 2018
Presidential Decree No. 29287, Nov. 13, 2018
[This Article Wholly Amended by Presidential Decree No. 21446, Apr. 21, 2009]
| Article 2 (Scope of Exclusion from Credit Business) |
| 1. | Where an employer lends a loan to his or her employee; |
| 3. | Where the State or a local government lends a loan; |
| 4. | Where a nonprofit corporation established pursuant to the Civil Act or any other Act lends a loan within the scope of the purposes stipulated in its articles of incorporation. |
[This Article Wholly Amended by Presidential Decree No. 21446, Apr. 21, 2009]
| Article 2-2 (Scope of Credit Financial Institutions) |
"Statutes and regulations specified by Presidential Decree" in subparagraph 4 of Article 2 of the Act means the following Acts: | 18. | Other Acts specified and publicly notified by the Financial Services Commission. |
[This Article Newly Inserted by Presidential Decree No. 27322, Jul. 6, 2016]
| Article 2-3 (Scope of Affiliated Persons) |
| (1) | "Persons who have any of the special relationships specified by Presidential Decree" in subparagraph 5 (a) of Article 2 of the Act means the following persons (hereinafter referred to as "affiliated persons"): |
| 1. | If the principal is an individual: Persons falling under the following items: |
| (a) | The spouse of the principal (including a person in a de facto marital relationship; the same shall apply hereinafter); |
| (b) | A paternal relative in the sixth or any closer degree of kinship or the spouse of a paternal relative in the fourth or any closer degree of kinship; |
| (c) | The husband of a paternal relative in the third or any closer degree of kinship and his children; |
| (d) | A maternal relative in the third or any closer degree of kinship and the spouse and children of such relative; |
| (e) | A paternal relative of the spouse in the second or any closer degree of kinship and the spouse of such relative; |
| (f) | A lineal ascendant from the biological family of an adoptee; |
| (g) | A child adopted to another family, the spouse of such child, and lineal descendants of the adopting family of the adopted child; |
| (h) | The biological mother of a child born out of wedlock; |
| (i) | A person who maintains a livelihood with money or any other asset of the principal or a person who makes a living together with the principal; |
| (j) | A corporation or organization, the principal of which, alone or together with the persons who have any of the relationships referred to in items (a) through (i), has invested at least 30/100 of the capital or over which the principal, alone or together with the persons who have any of the relationships referred to in items (a) through (i), exercises de facto control with regard to important matters related to the management of the corporation or organization (hereinafter referred to as "corporation or any similar entity"), such as the appointment and dismissal of executive officers, and executive officers of such corporation or any similar entity; |
| (k) | A corporation or any similar entity, the principal of which, alone or together with the persons who have any of the relationships referred to in items (a) through (j), has invested at least 30/100 of the capital or over which the principal, alone or together with the persons who have any of the relationships referred to in items (a) through (j), exercises de facto control with regard to important matters related to the management of the corporation or organization, such as the appointment and dismissal of executives, and executives of such corporation or any similar entity; |
| 2. | If the principal is a corporation or any similar entity: |
| (c) | An individual (including persons who have any of the relationships referred to in subparagraph 1 with the individual), a corporation (excluding affiliated companies; the same shall apply hereafter in this subparagraph), or an organization, who, alone or together with persons who have any of the relationships referred to in subparagraph 1 with the individual, has invested at least 30/100 of the capital in the principal or exercises de facto control over the principal with regard to important matters related to the management of the principal, such as the appointment and dismissal of executive officers, and executive officers of such corporation or organization; |
| (d) | A corporation or an organization, the principal of which, alone or together with persons who have any of the relationships referred to in items (a) through (c) with the principal, has invested at least 30/100 of the capital or over which the principal, alone or together with persons who have any of the relationships referred to in items (a) through (c) with the principal, exercises de facto control with regard to important matters related to the management of the corporation or organization, such as the appointment and dismissal of executive officers, and executive officers of such corporation or organization. |
| (2) | "A person specified by Presidential Decree" in subparagraph 5 (b) (ii) of Article 2 of the Act means any of the following persons: |
| 1. | A shareholder who, alone or together with other shareholders (including investors; the same shall apply hereafter in this paragraph) under an arrangement or agreement, has appointed the representative director or the majority of directors; |
| 2. | A shareholder identified by the Financial Services Commission as the person who exercises control in making decisions on important matters or executing business affairs, such as a business strategy and reorganization. |
| (3) | "The amount specified by Presidential Decree" in subparagraph 6 of Article 2 of the Act means an amount calculated by adding the amount erroneously reflected on an annual report to the sum of paid-in capital, capital surplus, retained earnings on the balance sheet prescribed in Article 30 (2) of the Commercial Act or by subtracting such erroneously reflected amount from the afore-mentioned sum. |
[This Article Newly Inserted by Presidential Decree No. 27322, Jul. 6, 2016]
| Article 2-4 (Credit Service Providers Required to Be Registered with Financial Services Commission) |
"Persons specified by Presidential Decree" in Article 3 (2) 6 of the Act means persons who intend to engage in a credit business, in connection with a person who publishes online information of the following persons: | 1. | Persons who intend to acquire rights only for the purpose of receiving principal of loan claims and interest on such principal (hereinafter referred to as "money lenders"); |
| 2. | Persons who intend to take a loan. |
[This Article Newly Inserted by Presidential Decree No. 28257, Aug. 29, 2017]
| Article 2-5 (Scope of Investors) |
"Standards prescribed by Presidential Decree" in Article 3 (3) 2 of the Act means 1/100 of the total number of outstanding shares or the total amount of contribution. <Amended by Presidential Decree No. 27322, Jul. 6, 2016> [This Article Newly Inserted by Presidential Decree No. 21446, Apr. 21, 2009]
| Article 2-6 (Procedures for Registration) |
| (1) | Any person who intends to register a credit business or loan brokerage business (hereinafter referred to as "credit business, etc.") pursuant to Article 3 (1) or (2) of the Act shall file an application for the registration of the credit business, etc. in the form prescribed and publicly notified by the Financial Services Commission, with the Mayor of the Special Metropolitan City, a Metropolitan City, or Special Self-Governing City or the Governor of a Do or a Special Self-Governing Province (hereinafter referred to as "Mayor/Do Governor") or with the Financial Services Commission, along with a document proving the location of a business office prescribed in Article 3 (3) 4 of the Act (limited to a certified copy of a register or a copy of a lease agreement or any similar agreement), a copy of a certificate of completion of the educational course prescribed in Article 2-8 (5) (hereinafter referred to as “copy of a certificate of completion of the educational course”), and other documents specified and publicly notified by the Financial Services Commission: Provided, That a person who falls under the proviso of Article 3-4 (1) of the Act and completes the educational course shall submit a copy of a certificate of completion of the educational course within one week from the day on which the person completes the educational course. <Amended by Presidential Decree No. 22135, Apr. 20, 2010; Presidential Decree No. 25293, Apr. 1, 2014; Presidential Decree No. 27322, Jul. 6, 2016; Presidential Decree No. 28257, Aug. 29, 2017; Presidential Decree No. 29287, Nov. 13, 2018> |
| (2) | The copy of a certificate of completion of the educational course submitted in accordance with paragraph (1) shall be the copy of a certificate of completion of the educational course (which is not limited to those issued by the Mayor/Do Governor or the Financial Services Commission, with whom the applicant intends to file an application (hereinafter referred to as "Mayor/Do Governor, etc.")) that was completed not more than six months before the date when an application for registration is filed. <Amended by Presidential Decree No. 27322, Jul. 6, 2016> |
| (3) | "The criteria prescribed by Presidential Decree" in Article 3 (2) 5 of the Act means the following criteria that shall be fully met: <Newly Inserted by Presidential Decree No. 27322, Jul. 6, 2016; Presidential Decree No. 29287, Nov. 13, 2018> |
| 1. | The value of assets as at the end of the immediately preceding business year shall be at least ten billion won; |
| 2. | The balance of receivables under loan agreements (hereinafter referred to as "loans receivable"), out of the assets prescribed in subparagraph 1, shall be at least five billion won. |
| (4) | "The documents specified by Presidential Decree" in the main clause of Article 3 (3) of the Act, with the exception of its subparagraphs, means the following documents: <Newly Inserted by Presidential Decree No. 27322, Jul. 6, 2016> |
| 1. | Documents that certify that the applicant has the equity capital specified in Article 3-5 (1) 1 or (2) 2 of the Act (referring to the value of net assets, if the applicant is not a corporation); |
| 2. | Documents that certify that the applicant has deposited a guarantee deposit or has subscribed to an insurance or mutual aid plan prescribed in Article 11-4 (2) of the Act; |
| 3. | Other documents specified and publicly notified by the Financial Services Commission as those necessary for examining the requirements for the registration made under the Act or this Decree. |
| (5) | Where a credit service provider or loan broker registered with a Mayor/Do Governor (hereinafter referred to as “credit service provider, etc.”) falls under any subparagraph of Article 3 (2) of the Act and has its registration authority changed to the Financial Services Commission or where a credit service provider, etc. registered with the Financial Services Commission ceases to fall under any subparagraph of Article 3 (2) of the Act and has its registration authority changed to a Mayor/Do Governor, the credit service provider, etc. shall file an application for the change in the form prescribed and publicly notified by the Financial Services Commission with the relevant Mayor/Do Governor or the Financial Services Commission, with whom the person is registered at the time, along with relevant documents, within 15 days from the date on which such change occurs. <Newly Inserted by Presidential Decree No. 27322, Jul. 6, 2016; Presidential Decree No. 29287, Nov. 13, 2018> |
| (6) | The form of the registration certificate prescribed in the main clause of Article 3 (4) of the Act, with the exception of its subparagraphs, shall be prescribed and publicly notified by the Financial Services Commission. <Amended by Presidential Decree No. 27322, Jul. 6, 2016> |
| (7) | "Matters prescribed by Presidential Decree" in the proviso of Article 3 (5) of the Act means the following matters: <Amended by Presidential Decree No. 27322, Jul. 6, 2016> |
| (8) | Any person who wishes to have a registration certificate reissued pursuant to Article 3 (7) of the Act shall submit a report on the loss of the registration certificate for credit business, etc. in the form prescribed and publicly notified by the Financial Services Commission to the Mayor/Do Governor, etc. with whom the business is registered at the time. <Amended by Presidential Decree No. 27322, Jul. 6, 2016> |
| (9) | Matters necessary for procedures for registration, etc. prescribed in paragraph (1) or (5) shall be prescribed and publicly notified by the Financial Services Commission. <Newly Inserted by Presidential Decree No. 27322, Jul. 6, 2016> |
[This Article Wholly Amended by Presidential Decree No. 21446, Apr. 21, 2009]
| Article 2-7 (Procedures for Renewal of Registration) |
| (1) | Any person who intends to apply for renewal pursuant to Article 3-2 (1) of the Act shall file an application for renewal of registration of a credit business, etc. in the form prescribed and publicly notified by the Financial Services Commission with the Mayor/Do Governor, etc., with whom the business is registered at the time, along with a document certifying the location of its business office prescribed in Article 3 (3) 4 of the Act (limited to the certified copy of a register or a copy of the relevant lease agreement or any similar agreement), a copy of a certificate of completion of the educational course, and other documents specified and publicly notified by the Financial Services Commission. <Amended by Presidential Decree No. 22135, Apr. 20, 2010; Presidential Decree No. 27322, Jul. 6, 2016> |
| (2) | The proviso of Article 2-6 (1) and Article 2-6 (2) shall apply mutatis mutandis to cases falling under paragraph (1). <Amended by Presidential Decree No. 28257, Aug. 29, 2017> |
[This Article Newly Inserted by Presidential Decree No. 21446, Apr. 21, 2009]
| Article 2-8 (Training for Credit Business) |
| (1) | "An extenuating circumstance specified by Presidential Decree" in the proviso of Article 3-4 (1) of the Act means the following: |
| 2. | An unavoidable event, such as the trainee's illness, accident, or business travel abroad; |
| 3. | Where it is impracticable to attend an education course due to the education institution's circumstances in relation to human resources or physical facilities. |
| (2) | "The period specified by Presidential Decree" in the proviso of Article 3-4 (1) of the Act means one month. <Amended by Presidential Decree No. 27322, Jul. 6, 2016> |
| (3) | The training regarding regulations on credit business, etc. under Article 3-4 (1) of the Act shall be conducted by a Mayor/Do Governor, etc., targeting the executive officers and employees of credit service providers, etc. as classified in the following subparagraphs: <Amended by Presidential Decree No. 29287, Nov. 13, 2018> |
| (a) | A branch office of a credit service provider, etc., which is a corporation: The employee who exercises general management over the affairs of such branch office (hereinafter referred to as "general manager"); |
| (b) | A person other than such branch referred to in item (a): The representative and the general manager; |
| (a) | A branch office of a credit service provider, etc., which is a corporation: The general manager of such branch; |
| (b) | A person other than that referred to in item (a): The following persons: |
| i) | The representative and the general manager; |
| ii) | Executive officers and employees equivalent to not less than 10/100 of the total number of executive officers and employees (including the representative and the employee in charge of general management over affairs). |
| (4) | The contents of the training under paragraph (3) shall be as follows: <Newly Inserted by Presidential Decree No. 29287, Nov. 13, 2018> |
| 1. | Restrictions on interest rates of credit service providers and the calculation method of interest rates under Article 8 of the Act; |
| 4. | Methods concerning advertisements by credit service providers, etc.; |
| 5. | Other matters deemed necessary for credit service providers, etc. to operate a credit business, etc. |
| (5) | A Mayor/Do Governor, etc. shall issue a certificate of completion of the educational course determined and publicly notified by the Financial Services Commission to a person who completes the training under paragraph (3). <Amended by Presidential Decree No. 27322, Jul. 6, 2016; Presidential Decree No. 29287, Nov. 13, 2018> |
[This Article Newly Inserted by Presidential Decree No. 21446, Apr. 21, 2009]
| Article 2-9 (Equity Capital) |
| (1) | "The amount specified by Presidential Decree" in Article 3-5 (1) 1 of the Act means the amount as classified in the following subparagraphs: |
| 1. | Where the registration applicant is a corporation: 50 million won; |
| 2. | Where the registration applicant is not a corporation: 10 million won. |
| (2) | "The amount specified by Presidential Decree" in Article 3-5 (2) 2 of the Act means the amount as classified in the following subparagraphs: <Amended by Presidential Decree No. 29287, Nov. 13, 2018> |
| 2. | In other cases: 300 million won. |
| (3) | The method of calculating the equity capital (referring to the value of net assets, if the applicant is not a corporation) prescribed in Article 3-5 (1) 1 or (2) 2 of the Act shall be prescribed and publicly notified by the Financial Services Commission. |
[This Article Newly Inserted by Presidential Decree No. 27322, Jul. 6, 2016]
| Article 2-10 (Permanent Place of Business) |
[This Article Newly Inserted by Presidential Decree No. 22135, Apr. 20, 2010]
| Article 2-11 (Types of Business Subject to Prohibition against Concurrent Holding of Office) |
| (1) | "The types of business specified by Presidential Decree" in Article 3-5 (2) 5 of the Act means the following types of business: <Amended by Presidential Decree No. 28257, Aug. 29, 2017> |
| (c) | The types of business specified and publicly notified by the Financial Services Commission as those that are likely to cause conflict of interest or to undermine rights and interests of users of credit business or credit service practices, among the types of value-added telecommunications business prescribed in Article 5 (4) of the Telecommunications Business Act; |
| 5. | Other types of business specified and publicly notified by the Financial Services Commission as those that are likely to cause a conflict of interest or to severely undermine rights and interests of users of loan business or the order in credit service. |
| (2) | "Persons specified by Presidential Decree" in Article 3-5 (2) 6 of the Act means the following persons: Provided, That the persons specified and publicly notified by the Financial Services Commission, based on the nature of a corporation in cases falling under subparagraph 1, shall be excluded herefrom: |
| 1. | The largest shareholder of a corporation that is the largest shareholder (including a person who has de facto control over the corporation, if the person who has de facto control over the corporation is not the largest shareholder of the corporation); |
| 2. | The representative of a corporation that is the largest shareholder. |
| (3) | "Have a good credit in the society as specified by Presidential Decree" in Article 3-5 (2) 6 and 7 of the Act means cases where the following requirements are fully met: Provided, That cases where the degree of a violation referred to in any of the following subparagraphs is minor shall be deemed cases where a person has a good credit in the society: <Amended by Presidential Decree No. 28257, Aug. 29, 2017; Presidential Decree No. 29287, Nov. 13, 2018> |
| 1. | The person shall have no record of criminal punishment equivalent to or heavier than a fine imposed for a violation of the Act, this Decree, a finance-related statute or regulation (referring to any of the finance-related statutes and regulations specified in Article 2-12; the same shall apply hereinafter), the Monopoly Regulation and Fair Trade Act, or the Punishment of Tax Offenses Act during the latest five years; |
| 2. | The person shall not be registered with a centralized credit information collection agency under Article 25 of the Credit Information Use and Protection Act as a customer of information disturbing sound practices in financial transactions or a person who fails to repay debts within an agreed deadline during the latest five years; |
| 3. | The person shall not be designated as an insolvent financial institution under the Act on the Structural Improvement of the Financial Industry or is not a major shareholder of a financial institution whose permission, authorization, or registration for business operation has been revoked or an affiliated person of the person (excluding persons who were recognized as independent business operators prescribed in Article 3-2 (1) 2 (a) of the Enforcement Decree of the Monopoly Regulation and Fair Trade Act or persons recognized by the Financial Services Commission as those separated from the scope of persons related to one and the same person under the aforesaid item of the aforesaid Decree as at the time the person is designated as an insolvent financial institution or the person's permission, etc. for business operation is revoked): Provided, That the persons who meet the criteria prescribed and publicly notified by the Financial Services Commission, such as a major shareholder or an affiliated person of a major shareholder, who is held not liable for insolvency, or a person who assumes financial liability for insolvency, shall be excluded herefrom; |
| 4. | The person shall not undermine the sound order in financial transactions in any other manner specified and publicly notified by the Financial Services Commission. |
[This Article Newly Inserted by Presidential Decree No. 27322, Jul. 6, 2016]
| Article 2-12 (Finance-Related Statutes and Regulations) |
"The finance-related statutes and regulations specified by Presidential Decree" in Article 4 (2) 2 of the Act means the following Acts: <Amended by Presidential Decree No. 27472, Aug. 31, 2016; Presidential Decree No. 29269, Oct. 30, 2018> | 22. | The Act on Special Measures for the Promotion of Specialized Enterprises for Materials and Components; |
| 48. | Other Acts determined and publicly notified by the Financial Services Commission. |
[This Article Newly Inserted by Presidential Decree No. 27322, Jul. 6, 2016]
| Article 3 (Modification of Registration) |
| (1) | Any credit service provider, etc. who intends to apply for modification of registration pursuant to the main clause of Article 5 (1) of the Act shall file an application for modification of registration of credit business, etc. in the form prescribed and publicly notified by the Financial Services Commission, along with documents that certify the relevant change, with the Mayor/Do Governor, etc., with whom the business is registered at the time. <Amended by Presidential Decree No. 27322, Jul. 6, 2016> |
| (2) | "Where a change occurs in regard to any of the minor matters specified by Presidential Decree" in the proviso of Article 5 (1) of the Act means any of the following cases: <Amended by Presidential Decree No. 25588, Sep. 3, 2014; Presidential Decree No. 27322, Jul. 6, 2016; Presidential Decree No. 29287, Nov. 13, 2018> |
| 1. | Where the address of the representative, an executive officer, an investor, or the general manager has been changed; |
| 2. | Where the title, name, or shareholding ratio of an investor whose total equity investment ratio is not more than five percent has been changed; |
| 3. | Where a credit service provider, etc. has at least two places of business and the name or location of any of such places of business has been changed (excluding the relevant place of business, the name or location of which has been changed); |
| 4. | Where a report under Article 12 (9) of the Act which reflects a changed matter concerning equity capital (referring to the value of net assets, if the applicant is not a corporation) is submitted. |
| (3) | A credit service provider, etc. who intends to permanently close his or her business under Article 5 (2) of the Act shall file a report on permanent closure of credit business, etc. in the form prescribed and publicly notified by the Financial Services Commission (including an electronic document defined in subparagraph 1 of Article 2 of the Framework Act on Electronic Documents and Transactions) with the Mayor/Do Governor, etc., with whom the business is registered at the time, within 15 days from the date of closure of business. <Amended by Presidential Decree No. 24076, Aug. 31, 2012; Presidential Decree No. 27322, Jul. 6, 2016> |
| (4) | Except as otherwise provided for in paragraphs (1) through (3), matters necessary for the modification of registration and the reporting of permanent closure of business defined in Article 5 of the Act shall be prescribed and publicly notified by the Financial Services Commission. <Newly Inserted by Presidential Decree No. 27322, Jul. 6, 2016> |
[This Article Wholly Amended by Presidential Decree No. 21446, Apr. 21, 2009]
| Article 3-2 (Trade Names) |
| (1) | "Standards prescribed by Presidential Decree" in Article 5-2 (3) of the Act means cases where the ratio of operating income accruing from credit business, etc. to gross operating income is less than 50/100. |
| (2) | Where a credit service provider, etc. does not use the term "credit business" or "loan brokerage" in his or her trade name because he or she falls under paragraph (1) conducts any business activity, such as advertisement, in relation to credit business, etc., he or she shall put words "credit business" or "loan brokerage" conspicuously together with his or her trade name. |
| (3) | The ratio of the operating income under paragraph (1) for credit business, etc. shall be calculated on the basis of the interest income stated on the profit and loss statement as at the end of the immediately preceding business year, while the ratio for any business other than credit business, etc. shall be calculated on the basis of the sales stated on the same profit and loss statement. In such cases, gains on management of financial products, such as investment in securities and deposits in financial institutions, shall be excluded from the calculation of the ratio of operating income. |
[This Article Newly Inserted by Presidential Decree No. 21446, Apr. 21, 2009]
| Article 3-3 (Scope of Duties of General Manager) |
| 1. | The general manager of a credit service provider: |
| (a) | Conclusion and execution of loan agreements; |
| (c) | Counseling on, and settlement of, complaints; |
| (d) | Solicitation of customers through advertisements, etc.; |
| (e) | Other business activities conducted on behalf of the credit service provider for customers’ convenience; |
| 2. | The general manager of a loan brokerage company: |
| (a) | Brokerage of loan agreements; |
| (b) | Conclusion and execution of brokerage agreements with credit service providers; |
| (c) | Counseling on, and settlement of, complaints; |
| (d) | Solicitation of customers through advertisements, etc.; |
| (e) | Other business activities conducted on behalf of the loan brokerage company for customers’ convenience. |
[This Article Newly Inserted by Presidential Decree No. 24599, Jun. 11, 2013]
| Article 4 (Mandatory Descriptions of Loan Agreement) |
| (1) | "Matters prescribed by Presidential Decree" in Article 6 (1) 12 and (3) 7 of the Act means the following: <Amended by Presidential Decree No. 22135, Apr. 20, 2010; Presidential Decree No. 23321, Nov. 30, 2011> |
| 1. | Registration number of credit business, etc.; |
| 2. | Deleted; <by Presidential Decree No. 22135, Apr. 20, 2010> |
| 3. | Terms and conditions concerning acceleration clause, if any; |
| 4. | Terms and conditions concerning the repayment order of the principal and interests of a loan, if any; |
| 5. | Fees and deadline for issuance of certificates related to debts or guaranteed debts. |
| (2) | "Documents related to an agreement as prescribed by Presidential Decree" in Article 6 (5) and the former part of paragraph (6) of the same Article means the following: |
| 1. | Loan agreement ledger; |
| 2. | Records of principal, interests, and incidental expenses disbursed to and received from a debtor by date; |
| 3. | Documents submitted by a counter-party (including a guarantor) in connection with the conclusion of a loan agreement or a guarantee agreement related thereto, including documents related to security (a written request for return of documents if the documents have been returned upon the written request for return thereof from the debtor after repayment of his or her debts). |
[This Article Wholly Amended by Presidential Decree No. 21446, Apr. 21, 2009]
| Article 4-2 (Handwriting of Material Facts) |
| (2) | "Means prescribed by Presidential Decree, such as voice recording" in Article 6-2 (3) 2 of the Act means those that fully meet the following requirements: <Newly Inserted by Presidential Decree No. 27322, Jul. 6, 2016> |
| 1. | The opposite contractual party shall be asked about his or her identity by using wire or wireless communication and the matters specified in Article 6-2 (1) of the Act and shall be given an explanation thereabout, and the answers and confirmation of the opposite contractual party thereon shall be recorded with a voice recorder; |
| 2. | The opposite contractual party shall be given an opportunity to confirm the contents of voice records prescribed in subparagraph 1 by the means that the opposite contractual party chooses, among the following means. In such cases, the credit service provider shall inform the opposite contractual party before signing a loan agreement that the credit service provider may request a written confirmation to the opposite contractual party: |
| (c) | Written confirmation. |
[This Article Newly Inserted by Presidential Decree No. 21446, Apr. 21, 2009]
| Article 4-3 (Prohibition of Excessive Lending) |
| (1) | "Evidentiary documents prescribed by Presidential Decree" in Article 7 (1) of the Act means the followings: <Amended by Presidential Decree No. 24638, Jun. 28, 2013; Presidential Decree No. 29269, Oct. 30, 2018; Presidential Decree No. 29287, Nov. 13, 2018> |
| 1. | If a counter-party is a person: |
| (c) | Documents that verify legal relationship concerning property, such as a registration certificate of real estate rights, real estate lease agreement (limited to a secured loan); |
| (d) | Result of credit information inquiry (only limited to cases where a credit service provider registered pursuant to Article 3 (2) of the Act intends to enter into a loan agreement); |
| (e) | Other documents making it possible to verify the status of income, property and debts; |
| 2. | If a counter-party is a corporation: |
| (c) | Documents specified in items (b), (c) and (e) of subparagraph 1. |
| (2) | "Amount prescribed by Presidential Decree" in the proviso of Article 7 (1) of the Act means any of the amounts referred to in the following subparagraphs. In such cases, the amount shall be calculated by adding the balance of loans already extended to a counter-party with whom a credit service provider intends to reach a new loan agreement to the amount of the loan on which the credit service provider intends to reach a new loan agreement: <Amended by Presidential Decree No. 22135, Apr. 20, 2010; Presidential Decree No. 23321, Nov. 30, 2011; Presidential Decree No. 29287, Nov. 13, 2018> |
| 1. | Where a counter-party is no more than 29 years old or not less than 70 years old: One million won; |
| 2. | Where a counter-party does not fall under subparagraph 1: Three million won. |
[This Article Newly Inserted by Presidential Decree No. 21446, Apr. 21, 2009]
| Article 4-4 (Limits on Total Assets) |
| (2) | The calculation of the limit on total assets prescribed in Article 7-3 (2) of the Act shall be based on the assets on the balance sheet prescribed in Article 30 (2) of the Commercial Act: Provided, That where a credit service provider registered with the Financial Services Commission under Article 3 (2) 6 of the Act and Article 2-4 of this Decree transfers to a money lender a right only to receive the principal of all loan claims held by such credit service provider and interest thereon, such loan claims shall not be included in total assets for the purpose of calculating the limit on total assets. <Amended by Presidential Decree No. 28257, Aug. 29, 2017> |
[This Article Newly Inserted by Presidential Decree No. 27322, Jul. 6, 2016]
| Article 5 (Limitations on Interest Rates) |
| (1) | Deleted. <by Presidential Decree No. 28257, Aug. 29, 2017> |
| (2) | "Rate prescribed by Presidential Decree" in Article 8 (1) of the Act means 24 percent per annum at a simple interest rate. <Amended by Presidential Decree No. 28257, Aug. 29, 2017; Presidential Decree No. 28420, Nov. 7, 2017> |
| (3) | When the rate referred to in paragraph (2) is applied on a monthly or daily basis, 24 percent per annum shall be converted at a simple interest rate. <Amended by Presidential Decree No. 28257, Aug. 29, 2017; Presidential Decree No. 28420, Nov. 7, 2017> |
| (4) | "Matters prescribed by Presidential Decree" in the proviso of Article 8 (2) of the Act means the following expenses: |
| 1. | Expenses incurred in relation to the creation of a security right; |
[This Article Wholly Amended by Presidential Decree No. 25293, Apr. 1, 2014]
| Article 6 (Posting Notice of Terms and Conditions of Loan) |
| (1) | "Important information prescribed by Presidential Decree" in Article 9 (1) of the Act means the following information: |
| 1. | Registration number of credit business; |
| 2. | Deleted; <by Presidential Decree No. 22135, Apr. 20, 2010> |
| 3. | Terms and conditions concerning incidental expenses related to a loan agreement. |
| (2) | "Matters prescribed by Presidential Decree" in Article 9 (2) 6 of the Act means the following: <Amended by Presidential Decree No. 23321, Nov. 30, 2011; Presidential Decree No. 25293, Apr. 1, 2014; Presidential Decree No. 27322, Jul. 6, 2016; Presidential Decree No. 28386, Oct. 17, 2017> |
| 1. | The address of the place of business and the telephone numbers used in labels or advertisements (referring to the labels and advertisements defined in the Act on Fair Labeling and Advertising; hereinafter referred to as "advertisements") which shall be registered pursuant to Article 3 (3) 6 of the Act, (referring to the address of the head office and the telephone numbers used in advertisements, if a credit service provider has places of business in areas within the jurisdiction of at least two local governments, such as the Special Metropolitan City, Metropolitan Cities, a Special Self-Governing City, Dos, and a Special Self-Governing Province (hereinafter referred to as "Cities/Dos")); |
| 2. | The name of the City/Do or the Financial Services Commission (hereinafter referred to as "City/Do, etc."), with which the business is registered, and the telephone number of the office of the City/Do, etc. from which information about registration information can be obtained; |
| 3. | Warning phrases indicating the risk of excessive borrowings and the possible decline in credit rating in connection with a loan agreement, as prescribed in subparagraph 2 (a) of attached Table 1. |
| (3) | "Matters prescribed by Presidential Decree" in Article 9 (3) 6 of the Act means the following facts: <Amended by Presidential Decree No. 23321, Nov. 30, 2011; Presidential Decree No. 27322, Jul. 6, 2016; Presidential Decree No. 28386, Oct. 17, 2017> |
| 1. | The address of the place of business and the telephone numbers used in advertisements registered pursuant to Article 3 (3) 6 of the Act (referring to the address of the head office and telephone number used for advertisements, if a loan broker has places of business in at least two Cities/Dos); |
| 2. | The name of the City/Do, etc. with which the loan brokerage business is registered at the time and the telephone number of the office of the City/Do, etc. from which information about registration can be obtained; |
| 3. | An expression "demanding or receiving a brokerage commission is illegal"; |
| 4. | Warning phrases indicating the risk of excessive borrowings and the possible decline in credit rating in connection with a loan agreement, as prescribed in subparagraph 2 (a) of attached Table 1. |
[This Article Wholly Amended by Presidential Decree No. 21446, Apr. 21, 2009]
| Article 6-2 (Advertisements of Credit Service Providers) |
"The manner prescribed by Presidential Decree" in Article 9 (4) of the Act means any of the following: <Amended by Presidential Decree No. 23321, Nov. 30, 2011; Presidential Decree No. 27322, Jul. 6, 2016> | 1. | Letters of the trade name of each credit service provider shall be larger than letters of a trademark and shall be legible; |
| 2. | The size of letters indicating the registration number, telephone number, interest rates for loans, expenses incidental to loan agreements, phrases referred to in Article 6 (2) 3 and (3) 3 and 4 shall be equal to or larger than the size of the trade name and shall be easily distinguishable from other words in each advertisement; |
| 3. | To comply with guidelines for placing advertisements of credit service providers, etc., as prescribed in attached Table 1. |
[This Article Newly Inserted by Presidential Decree No. 21446, Apr. 21, 2009]
| Article 6-3 (False or Exaggerated Advertisements of Credit Service Providers) |
| 1. | An advertisement that contains misleading expressions by which a credit service provider might be mistaken for a financial institution permitted, authorized, or registered under any other Act; |
| 2. | An advertisement that contains misleading expressions by which a product is mistaken for a petty-loan product for the low-income class (referring to a product specified and publicly notified by the Financial Services Commission as a product designed to support the financially-disadvantaged class, such as the low-income class). |
[This Article Wholly Amended by Presidential Decree No. 24599, Jun. 11, 2013]
| Article 6-4 (Prohibition against Transfer of Claims to Unregistered Credit Service Providers) |
"Those specified by Presidential Decree, including credit service providers, credit financial institutions" in Article 9-4 (3) of the Act means the following persons: | 2. | Credit financial institutions; |
| 3. | The Korea Deposit Insurance Corporation and financial resolution companies prescribed in the Depositor Protection Act; |
| 6. | Other persons specified by the Financial Services Commission among the persons similar to those specified in subparagraphs 1 through 5. |
[This Article Newly Inserted by Presidential Decree No. 27322, Jul. 6, 2016]
| Article 6-5 (Discontinuance of Services for Telephone Numbers Used for Illegal Loan Advertising) |
| (1) | "A Mayor/Do Governor, etc. or a person specified by Presidential Decree" in Article 9-6 (1) of the Act means any of the following persons: |
| 2. | The Prosecutor General; |
| 3. | The Commissioner of the Korean National Police Agency; |
| 4. | The Governor of the Financial Supervisory Service (referring to the Governor of the Financial Supervisory Service established under the Act on the Establishment of Financial Services Commission; the same shall apply hereinafter). |
| (2) | If a user for whom telecommunications services have been discontinued upon a request filed under Article 9-6 (1) or (2) of the Act intends to raise an objection prescribed in Article 9-6 (3) of the Act, he or she shall submit a written statement of the following matters to the authority that requested the discontinuance of telecommunications services prescribed in Article 9-6 (1) or (2) of the Act (hereafter referred to as "authority requesting the discontinuance of services" in this Article) by no later than 30 days from the date when telecommunications services are discontinued: |
| 1. | The title or name, address, and contact information of the petitioner; |
| 2. | Grounds for an objection; |
| 3. | The date when telecommunications services are discontinued. |
| (3) | Upon receipt of a petition for objection prescribed in paragraph (2), the authority requesting the discontinuance of services shall make a decision on the petition within 15 days and shall notify the petitioner of such decision in writing: Provided, That the period may be extended by up to 15 days, if it is impracticable to make a decision within the period due to any inevitable ground, and the petitioner shall be notified of a ground for the extension and the extended period. |
| (4) | If a document submitted under paragraph (2) has any defect or if it is necessary to verify any additional facts, the authority requesting the discontinuance of services may request the petitioner to supplement the document. The period required for such supplementation, in such cases, shall not be included in the period specified in the main clause of paragraph (3). |
| (5) | When the authority requesting the discontinuance of services concludes that a petition filed for objection prescribed in Article 9-6 (3) of the Act has a reasonable ground, he or she shall request the Minister of Science and ICT to revoke the discontinuance of telecommunications services, without delay. <Amended by Presidential Decree No. 28218, Jul. 26, 2017> |
[This Article Newly Inserted by Presidential Decree No. 25588, Sep. 3, 2014]
| Article 6-6 (Standards for Protection of Users of Credit Business) |
| (1) | "The value of assets specified by Presidential Decree" in Article 9-7 (1) of the Act means any of the amounts referred to in the following subparagraphs: <Amended by Presidential Decree No. 29287, Nov. 13, 2018> |
| 1. | A credit service provider who registers its business pursuant to Article 3 (2) 2 of the Act and intends to operate a business of collecting purchased loan claims: One billion won as at the end of the immediately preceding business year; |
| 2. | Other credit service providers, etc.: 50 billion won as at the end of the immediately preceding business year. |
| (2) | The standards for protection prescribed in Article 9-7 (1) of the Act (hereinafter referred to as "standards for protection") shall include the following matters: <Amended by Presidential Decree No. 29287, Nov. 13, 2018> |
| 1. | Matters concerning task allocation and organizational structure; |
| 2. | Matters concerning the procedures that executive officers and employees shall follow in performing their duties; |
| 3. | Matters concerning the procedures and methods for the inspection conducted to make sure whether executive officers and employees observe the standards for protection and the treatment of executive officers and employees who violated the standards for protection; |
| 4. | Matters concerning the procedures for the establishment or amendment of the standards for protection; |
| 5. | Matters concerning the procedures for the appointment and dismissal of the protection watch officers prescribed in Article 9-7 (2) of the Act (hereinafter referred to as "protection watch officer"); |
| 6. | Matters concerning the procedures or guidelines on the collection, management, transaction, etc. of claims for preventing wrongful conduct in collecting loans receivable; |
| 7. | Matters concerning the management, etc. of extinctive prescription of loan claims for protecting debtors; |
| 8. | Other matters determined and publicly notified by the Financial Services Commission, which are necessary for protecting the users of credits service. |
| (3) | When a credit service provider, etc. intends to establish or amend standards for protection, it shall obtain a resolution thereon from the board of directors: Provided, That the same shall not apply where there is no board of directors. |
| (4) | The Financial Services Commission may recommend that a credit service provider, etc. whose violation of any statute or regulation is found as a result of an inspection conducted under Article 12 of the Act to amend standards for protection to prevent recurrence of violations of such statute or regulation. |
| (5) | A protection watch officer shall perform the following tasks: |
| 1. | Formulation of the plan for protecting users of credit service; |
| 2. | Periodic inspection and improvement of actual operating conditions and practices related to the observance of statutes and regulations; |
| 3. | Formulation of plans for training executive officers and employees; |
| 4. | Other matters specified and publicly notified by the Financial Services Commission for the protection of users of credit service. |
| (6) | No protection watch officer shall be engaged in regular business affairs of another profit-making corporation. |
| (7) | Every protection watch officer shall perform his or her duties with due care as a good fiduciary and shall not take any job for carrying out any of the following matters: Provided, That a protection watch officer employed by a credit service provider, etc. who has less than 1,000 inside traders as at the end of the immediately preceding business year may take a job for conducting the business affairs specified in either of the following subparagraphs: |
| 1. | Business affairs related to asset management; |
| 2. | Business affairs that a credit service provider, etc. shall execute under subparagraph 1 or 2 of Article 2 of the Act and incidental business affairs. |
| (8) | Except as otherwise provided for in paragraphs (1) through (7), matters necessary for the standards for protection and protection watch officers shall be prescribed and publicly notified by the Financial Services Commission. |
[This Article Newly Inserted by Presidential Decree No. 27322, Jul. 6, 2016]
| Article 6-7 (Restrictions on Transactions with Major Shareholders) |
| 1. | A transaction of offering an asset as security for a major shareholder (including affiliated persons of such shareholder; the same shall apply hereafter in this Article); |
| 3. | A transaction of promising performance of investment to a major shareholder; |
| 4. | Lending an asset with an economic value, such as real estate and securities; |
| 5. | Purchasing securities as a means for lending a loan, guaranteeing payment, or providing financial support; |
| 6. | Any of the following transactions conducted for the purpose of circumventing the restriction on transactions under any of subparagraphs 1 through 5: |
| (a) | A transaction conducted by cross-dealing under an agreement, collusion, or any similar arrangement with a third party; |
| (b) | A transaction conducted by using a transaction of over-the-counter derivatives, a trust contract, a linked transaction, or any similar transaction; |
| 7. | A transaction that will actually result in a transaction equivalent to any of the transactions referred to in subparagraphs 1 through 6, although the credit service provider has not conducted such transaction by himself or herself. |
| (2) | Notwithstanding paragraph (1), the Financial Services Commission may exclude either of the following transaction from the scope of credit extension: |
| 1. | A transaction that is anticipated to incur a slight loss to a credit service provider; |
| 2. | A transaction that is found reasonable to exclude it from the scope of credit extension in light of actual conditions of the relevant transaction, such as the impact on the financial market. |
| (3) | "The amount specified by Presidential Decree" in Article 10 (2) of the Act means that the amount of a single transaction according to the standards prescribed by the Financial Services Commission is the smaller of the amount equivalent to 10/10,000 of equity capital or one billion won. |
[This Article Newly Inserted by Presidential Decree No. 27322, Jul. 6, 2016]
| Article 6-8 (Limitations on Brokerage Commission) |
| (2) | “The amount calculated by the rate prescribed by Presidential Decree” in Article 11-2 (3) of the Act means the amount specified for each loan amount bracket in the following table: <Amended by Presidential Decree No. 29287, Nov. 13, 2018> |
| Loan amount | Brokerage commission | | Not more than five million won | 4/100 | | More than five million won | 200,000 won + 3/100 of the amount exceeding five million won |
|
[This Article Newly Inserted by Presidential Decree No. 24599, Jun. 11, 2013]
| Article 6-9 (Deposit of Guarantee Money for Performance of Liability to Compensate Damage) |
| (1) | Pursuant to Article 11-4 (2) of the Act, a credit service provider, etc. shall deposit at least the amount specified in either of the following subparagraphs as guarantee money with the association of credit business and loan brokerage business prescribed in Article 18-2 (1) of the Act (hereinafter referred to as "Association") or subscribe to an insurance or mutual aid plan for the relevant amount as minimum coverage and shall maintain the plan continuously during the period of registration: |
| 1. | If the business is registered with a Mayor/Do Governor: 10 million won; |
| 2. | If the business is registered with the Financial Services Commission: 50 million won. |
| (2) | If a Mayor/Do Governor, etc. deems it necessary for protecting users of credit service, considering the volume of transactions of credit service providers, etc., violations of a statute or regulation, etc., the Mayor/Do Governor, etc. may issue an order to increase the amount specified in either subparagraph of paragraph (1). |
| (3) | A credit service provider, etc. shall maintain the guarantee money deposited or the insurance or mutual aid plan subscribed to under paragraph (1) or (2) until before the closing of the transaction under a loan agreement for three years from the day on which any of the following events occurs: Provided, That, if a lawsuit filed in relation to the liability to compensate for damage caused by wrongful conduct of a credit service provider, etc. is pending, the credit service provider, etc. shall maintain the guarantee money deposited or the insurance or mutual aid plan subscribed to until the payment of the guarantee money or the payment of claims against the insurance or mutual aid plan is completed according to a final judgment on the relevant lawsuit: |
| 1. | Where the effective period of registration prescribed in Article 3 (6) of the Act has expired but the registration has not been renewed; |
| (4) | Matters necessary for the procedures for depositing guarantee money, etc. under paragraphs (1) through (3) shall be prescribed and publicly notified by the Financial Services Commission. |
[This Article Newly Inserted by Presidential Decree No. 27322, Jul. 6, 2016]
| Article 7 (Credit Business subject to Inspection by Governor of Financial Supervisory Service) |
"Cases prescribed by Presidential Decree" in Article 12 (3) of the Act means the following cases: <Amended by Presidential Decree No. 22135, Apr. 20, 2010; Presidential Decree No. 27322, Jul. 6, 2016> | 1. | Deleted; <by Presidential Decree No. 27322, Jul. 6, 2016> |
| 2. | Where the monthly average balance of loans lent by a credit service provider, etc. as at the end of each month exceeds the amount prescribed by the Financial Services Commission; |
| 3. | Where business activities of a credit service provider, etc. violate any statute or regulation; |
| 4. | Where it is suspected that a person who is a major shareholder of at least two registered business entities intends to evade an inspection conducted by the Governor of the Financial Supervisory Service under Article 12 (2) of the Act by spin-off or any other means; |
| 5. | Where business activities of a credit service provider, etc. are highly likely to place a counter-party (including a guarantor, if a guarantee agreement is concluded in connection with a loan agreement) in a disadvantageous position, and an institution subject to inspection by the Financial Supervisory Service under Article 38 of the Act on the Establishment of Financial Services Commission (hereinafter referred to as "financial institution") is involved in such activities. |
[This Article Wholly Amended by Presidential Decree No. 21446, Apr. 21, 2009]
| Article 7-2 Deleted. <by Presidential Decree No. 27322, Jul. 6, 2016> |
| Article 7-3 (Submission of Reports by Credit Service Providers) |
| (1) | Pursuant to Article 12 (9) of the Act, each credit service provider, etc. shall prepare reports in the form prescribed and publicly notified by the Financial Services Commission as on June 30 and December 31 respectively and submit each of the reports to the competent Mayor/Do Governor, etc. by the end of the following month of the base date. <Amended by Presidential Decree No. 27322, Jul. 6, 2016> |
| (2) | "Matters prescribed by Presidential Decree" in Article 12 (9) 1 (c) and 2 (c) of the Act means those concerning the general status of the place of business, the current status of credit business, the current status of loan brokerage business, and the current status of borrowings described in the report under paragraph (1). |
[This Article Newly Inserted by Presidential Decree No. 21446, Apr. 21, 2009]
| Article 7-4 (Guidelines for Suspension of Business and Cancellation of Registration) |
| (1) | "Standards prescribed by Presidential Decree" in the main clause of Article 13 (1) of the Act, with the exception of its subparagraphs, means the guidelines prescribed in attached Table 2. <Amended by Presidential Decree No. 23321, Nov. 30, 2011> |
| (2) | "Number of times specified by Presidential Decree" in Article 13 (2) 5 of the Act means the frequency prescribed in attached Table 2. <Amended by Presidential Decree No. 23321, Nov. 30, 2011> |
[This Article Newly Inserted by Presidential Decree No. 21446, Apr. 21, 2009]
| Article 8 (Details and Methods of Public Announcement) |
Pursuant to Article 13 (2) 6 of the Act, a Mayor/Do Governor, etc. shall prepare a public announcement stating that the registration may be revoked if a credit service provider, etc. fails to notify its exact location in order to verify the location and shall publish the notice in the Official Gazette, the official bulletin of the City/Do, or a daily newspaper. <Amended by Presidential Decree No. 27322, Jul. 6, 2016> [This Article Wholly Amended by Presidential Decree No. 21446, Apr. 21, 2009]
| Article 8-2 (Standards for Imposing Penalty Surcharges) |
[This Article Wholly Amended by Presidential Decree No. 28386, Oct. 17, 2017]
| Article 8-3 (Procedures for Imposing Penalty Surcharges) |
| (1) | When the Financial Services Commission imposes a penalty surcharge under Article 14-2 (1) of the Act, it shall give a written notice for the payment of the penalty surcharge, clearly stating the type of the relevant violation and the amount of the penalty surcharge. |
| (2) | Upon receipt of the notice under paragraph (1), a person shall pay the penalty surcharge to the receiving agency designated by the Financial Services Commission within 60 days from the date on which the person receives the notice. |
| (3) | Except as otherwise provided for in paragraphs (1) and (2), matters necessary for the procedures for imposing penalty surcharges shall be prescribed and publicly notified by the Financial Services Commission. |
[This Article Newly Inserted by Presidential Decree No. 27322, Jul. 6, 2016]
| Article 8-4 (Additional Charges) |
"The additional charge prescribed by Presidential Decree" in the forepart of Article 14-2 (2) of the Act means an amount calculated by applying 6/100 per annum to the past due penalty surcharge. <Amended by Presidential Decree No. 28386, Oct. 17, 2017> [This Article Newly Inserted by Presidential Decree No. 27322, Jul. 6, 2016]
| Article 8-5 (Extension of Deadline for Payment and Payment in Installments) |
When the Financial Services Commission extends the deadline for the payment of a penalty surcharge imposed on a person obligated to pay the penalty surcharge or permits a person to pay a penalty surcharge in installments under Article 14-4 of the Act, the extended deadline for payment shall not exceed one year, and the interval between installments shall not exceed six months, while the number of installments shall not exceed three times. [This Article Newly Inserted by Presidential Decree No. 27322, Jul. 6, 2016]
| Article 8-6 (Interest on Additional Payment on Refund) |
The Financial Services Commission shall pay an additional payment on refund by applying the interest rate determined and publicly notified by the Financial Services Commission under Article 14-5 (1) of the Act, considering the interest rate for a time deposit maturing in one year in bank. [This Article Newly Inserted by Presidential Decree No. 27322, Jul. 6, 2016]
| Article 9 (Limitations on Interest Rates of Specialized Credit Financial Institutions) |
| (1) | "Rate specified by Presidential Decree" in Article 15 (1) of the Act means 24 percent per annum. <Amended by Presidential Decree No. 25293, Apr. 1, 2014; Presidential Decree No. 28257, Aug. 29, 2017; Presidential Decree No. 28420, Nov. 7, 2017> |
| (2) | If the rate prescribed in paragraph (1) is applied on a monthly or daily basis, 24 percent per annum at simple rate shall be converted at a simple interest rate. <Amended by Presidential Decree No. 25293, Apr. 1, 2014; Presidential Decree No. 28257, Aug. 29, 2017; Presidential Decree No. 28420, Nov. 7, 2017> |
| (3) | "Matters specified by Presidential Decree" in the proviso of Article 8 (2) of the Act, which are applicable mutatis mutandis pursuant to Article 15 (2) of the Act, means the following expenses: <Newly Inserted by Presidential Decree No. 25588, Sep. 3, 2014> |
| 1. | Expenses incurred in creating a security right; |
| 3. | Expenses incurred as a consequence of early repayment of a loan lent under a loan agreement with a maturity of at least one year, which shall not exceed 1/100 of the amount of early repayment. |
| (4) | "Rate set by Presidential Decree" in Article 15 (3) of the Act means the interest rates for overdue loans determined by the Financial Services Commission by reflecting characteristics, etc. of each type of financial services and loan agreements. In such cases, each rate shall not exceed 24 percent per annum: <Amended by Presidential Decree No. 29287, Nov. 13, 2018> |
[This Article Wholly Amended by Presidential Decree No. 21446, Apr. 21, 2009]
| Article 9-2 (Methods and Procedure for Conducting Surveys on Current Status) |
| (1) | In conducting a survey on the status of business operations of credit service providers, etc. pursuant to Article 16 (1) of the Act, the Mayor/Do Governor shall conduct such survey on the matters specified in Article 12 (9) of the Act as of June 30 and December 31 of each year, respectively. |
| (2) | When the Mayor/Do Governor submits a report on findings from a survey on the status under paragraph (1) to the Minister of the Interior and Safety and the Financial Services Commission pursuant to Article 16 (1) of the Act, he or she may submit such report in an electronic form through the electronic information system designated by the Governor of the Financial Supervisory Service. |
| (3) | The Minister of the Interior and Safety and the Financial Services Commission shall prepare a report on the status of credit service providers, etc. and findings from surveys on their business operations as of each base date, June 30 and December 31 every year, and shall publish such report in the Official Gazette or their websites within six months from the base date. |
[This Article Wholly Amended by Presidential Decree No. 28386, Oct. 17, 2017]
| Article 9-3 (Details of and Procedures for Disclosing Facts of Administrative Measures or Corrective Action Orders) |
| (1) | When the Mayor/Do Governor, etc. discloses an administrative measure taken or an order issued to take corrective measures under Article 16-2 (1) of the Act, he or she shall make sure that the following matters are included therein: <Amended by Presidential Decree No. 27322, Jul. 6, 2016> |
| 1. | Title whereby the publication may be recognized as the disclosure of the fact of the administrative measure or corrective action order; |
| 2. | Trade name, location and name (in cases of a corporation, referring to the name of its representative); |
| 3. | Registration number of credit business, etc. (in cases of a credit financial institution, referring to its business registration number); |
| 5. | Details of the administrative measure or corrective action order with regard to a violation; |
| 6. | Date of the administrative measure, date of the corrective action order and the period thereof. |
| (2) | The disclosure prescribed in paragraph (1) shall be made by publishing an administrative measure taken or an order issued to take corrective measures in the website of the City/Do, etc. immediately after the Mayor/Do Governor, etc. takes such administrative measure or issues such order. <Amended by Presidential Decree No. 27322, Jul. 6, 2016> |
| (3) | Where an administrative measure taken or an order to take corrective measures under paragraph (1) 5 is revoked, the Mayor/Do Governor, etc. shall disclose such revocation by publishing it in the website of the City/Do, etc. at least for the period during which such administrative measure or such order to take corrective measures has been published therein under paragraph (2). <Amended by Presidential Decree No. 27322, Jul. 6, 2016> |
[This Article Newly Inserted by Presidential Decree No. 25293, Apr. 1, 2014]
| Article 10 (Registration Fees) |
| (1) | Any person who intends to register a credit business, etc. shall pay 100,000 won as registration fee for each place of business in accordance with Article 17 (1) of the Act: Provided, That a different amount of the fee may be prescribed by municipal ordinance of each City/Do within the maximum of 100,000 won. |
| (2) | "Inspection fees prescribed by Presidential Decree" in Article 17 (2) of the Act means the amount determined by the Financial Services Commission within the maximum of 1/1,000 of the yearly average balance of loans as on the inspection date: Provided, That a different amount of the fee may be prescribed by municipal ordinance of each City/Do within the maximum of 1/1,000 of the yearly average balance of loans. |
[This Article Wholly Amended by Presidential Decree No. 21446, Apr. 21, 2009]
| Article 11 (Organization and Management of Committee for Conciliation of Disputes) |
| (1) | The Committee for Conciliation of Disputes prescribed in Article 18 (1) of the Act shall be composed of five members appointed or commissioned by the competent Mayor/Do Governor from among the following persons: <Amended by Presidential Decree No. 23644, Feb. 29, 2012; Presidential Decree No. 27322, Jul. 6, 2016> |
| 1. | A person who has at least three years' experience at a financial institution; |
| 2. | A lawyer or certified public accountant; |
| 3. | A person who has at least three years' experience at a consumer organization; |
| 4. | A public official who has at least three years' experience in the field of finance, credit business, or consumer protection; |
| 5. | A person who majored in finance or law and has at least three years' experience as an assistant professor or higher at a college or university. |
| (2) | The chairperson shall be elected by and among the members, and the term of office for the chairperson and members shall be one year but may be renewed consecutively. |
| (3) | In any of the following cases, the Mayor/Do Governor may remove or dismiss a committee member under any subparagraph of paragraph (1) from office: <Newly Inserted by Presidential Decree No. 27322, Jul. 6, 2016> |
| 1. | If a committee member is unable to perform his or her duties due to mental disorders; |
| 2. | If it is found that a committee member is involved in an irregularity in relation to his or her duties; |
| 3. | If it is found that a committee member is incompetent on the ground of a failure in duty or indecent conduct, or on any other ground; |
| 4. | If a committee member voluntarily confesses that he or she is unable to perform his or her duties. |
| (4) | The Committee for Conciliation of Disputes may adopt a proposal for conciliation of a dispute by an affirmative vote of 2/3 of incumbent members and may recommend the parties to the dispute to accept the proposal for conciliation of the dispute. <Amended by Presidential Decree No. 27322, Jul. 6, 2016> |
| (5) | Except as otherwise provided for in paragraphs (1) through (4), further details necessary for the efficient management of the Committee for Conciliation of Disputes shall be prescribed by the Committee for Conciliation of Disputes. <Amended by Presidential Decree No. 27322, Jul. 6, 2016> |
[This Article Wholly Amended by Presidential Decree No. 21446, Apr. 21, 2009]
| Article 11-2 (Credit Business and Credit Brokerage Business Association) |
| (1) | Pursuant to Article 18-2 (4) of the Act, the Association shall formulate articles of incorporation and complete the registration of establishment with the seat of its main office within two weeks from the day on which it obtains the authorization therefor from the Financial Services Commission. <Amended by Presidential Decree No. 27322, Jul. 6, 2016> |
| (2) | The registration of establishment under paragraph (1) shall include the following matters: |
| 3. | Locations of the principal place of business and branch associations; |
| 4. | Names and addresses of executive officers; |
| 5. | Methods of public announcement. |
| (3) | The application for registration of establishment under paragraph (1) shall be accompanied by the following documents: |
| 1. | Articles of incorporation; |
| 2. | A copy of the letter of authorization for articles of incorporation. |
| (4) | "Affairs prescribed by Presidential Decree" in Article 18-3 (1) 4 of the Act means the following business affairs: <Amended by Presidential Decree No. 23321, Nov. 30, 2011; Presidential Decree No. 27322, Jul. 6, 2016; Presidential Decree No. 29287, Nov. 13, 2018> |
| 1. | Educating executive officers and employees of credit service providers, etc.; |
| 2. | Conducting surveys and research for the development of credit business, etc.; |
| 3. | Autonomously reviewing advertisements of credit service providers, etc.; |
| 4. | Autonomously monitoring any violation of statutes or regulations by credit service providers, etc. and persons who actually run credit business, etc. without filing for registration of credit business, etc. as required by Article 3 of the Act; |
| 5. | Accepting deposits of guarantee money and providing mutual aid service for indemnifying credit service providers, etc. from liability for damage prescribed in Article 11-4 of the Act; |
| 6. | Self-regulatory affairs such as standardization and guidance on methods of providing service to maintain the sound business order of credit service providers, etc.; |
| 7. | Projects for common interests of credit service providers, etc.; |
| 8. | Other affairs necessary to achieve the purposes of the Association. |
| (5) | "Persons specified by Presidential Decree" in the proviso of Article 18-5 (1) of the Act means credit service providers, etc. who are corporations registered under Article 3 (1) of the Act. <Newly Inserted by Presidential Decree No. 27322, Jul. 6, 2016> |
[This Article Newly Inserted by Presidential Decree No. 21446, Apr. 21, 2009]
| Article 11-3 (Entrustment of Business Affairs) |
| (2) | Pursuant to Article 18-7 (2) of the Act, the Financial Services Commission shall entrust the following affairs to the Governor of the Financial Supervisory Service: <Newly Inserted by Presidential Decree No. 27322, Jul. 6, 2016; Presidential Decree No. 28386, Oct. 17, 2017; Presidential Decree No. 29287, Nov. 13, 2018> |
| 1. | Affairs relating to the procedures for the registration of credit business, etc., the renewal of such registration, the return of registration certificates, the receipt of reports on the loss of a registration certificate, etc. prescribed in Articles 3, 3-2, and 3-3 of the Act; |
| 2. | Affairs relating to the examination of requirements for the registration of credit business, etc. prescribed in Article 3-5 of the Act; |
| 3. | Affairs relating to the examination of qualifications of executive officers and general managers of credit service providers, etc. prescribed in Article 4 (2) of the Act; |
| 4. | Affairs relating to the amended registration of credit business, etc. and the receipt of reports on closure of business prescribed in Article 5 of the Act; |
| 5. | Receipt of reports on credit extension to credit service providers who belong to a business group subject to limitations on cross shareholding under Article 10 (2) of the Act; |
| 7. | An order issued to a credit service provider who is suspected to have violated the limit on credit extension prescribed in Article 10 (8) of the Act and the major shareholders of such credit service provider to submit documents; |
| 8. | An order to submit a report or documents about business operations of a credit service provider, etc. and property related to such business operations prescribed in Article 12 (1) of the Act and other necessary orders; |
| 10-2. | A decision made on a measure referred to in Article 13 (7) of the Act and the notification of such decision (limited to a decision made on such measure and the notification of such decision where it is deemed that a person would have been punished by the measure specified in Article 13 (6) 1 or 3); |
| 11. | Affairs related to inspections of actual conditions of credit service providers prescribed in Article 16 of the Act; |
| 14. | Requesting cooperation to related institutions, where it is necessary to verify relevant facts for the management, supervision, etc. of credit service providers, etc. prescribed in Article 18-8 of the Act. |
[This Article Newly Inserted by Presidential Decree No. 21446, Apr. 21, 2009]
| Article 11-4 (Measures to Be Taken against Association) |
| 1. | Requesting or recommending to improve management or operating methods; |
| 2. | Claiming compensation; |
| 3. | Filing a criminal charge or report concerning a violation with an investigative agency, if the Association violates the Act; |
| 4. | Reporting a violation to a relevant agency or investigative agency, if the Association violates any other Act; |
| 5. | Other measures that may be taken by the Financial Services Commission pursuant to the Act, this Decree, and other relevant statutes and regulations. |
| (2) | "Measures specified by Presidential Decree" in Article 18-10 (2) 6 and (3) 7 respectively means the measures specified in paragraph (1) 3 through 5. |
[This Article Newly Inserted by Presidential Decree No. 28257, Aug. 29, 2017]
| Article 11-5 (Processing of Personally Identifiable Information) |
| (1) | If it is inevitable for performing the following affairs, a Mayor/Do Governor, etc. (including persons entrusted with affairs of a Mayor/Do Governor, etc. prescribed in Article 11-3) may process data containing a resident registration number, a passport number, a foreigner registration number referred to in subparagraph 1, 2 or 4 of Article 19 of the Enforcement Decree of the Personal Information Protection Act (hereafter referred to as "resident registration number, etc." in this Article): <Amended by Presidential Decree No. 27322, Jul. 6, 2016> |
| 5. | Affairs concerning the examination of requirements for qualification of the representative, executive officer or the general manager of a credit service provider, etc. prescribed in Article 4 of the Act; |
| 6. | Affairs concerning modification of registration and reporting on the closure of business prescribed in Article 5 of the Act; |
| 7. | Affairs concerning standards for protection and protection watch officers prescribed in Article 9-7 of the Act; |
| 8. | Affairs concerning reporting on transactions with major shareholders of a credit service provider who belongs to a business group subject to limitations on cross shareholding prescribed in Article 10 of the Act, approval for the extension of the period of credit extension, orders to submit documents, etc.; |
| 9. | Affairs concerning the deposit of guarantee money for indemnifying the liability to compensate for damage prescribed in Article 11-4 (2) of the Act; |
| 10. | Affairs concerning inspections, suspension of business, revocation of registration, follow-up measures, etc. pursuant to Articles 12 and 13 of the Act; |
| 12. | Affairs concerning surveys, etc. on actual status of credit service providers pursuant to Article 16 of the Act; |
| (2) | If it is inevitable for performing the following affairs, the Minster of the Interior and Safety may process data that contains a resident registration number, etc.: <Amended by Act No. 24435, Mar. 23, 2013; Presidential Decree No. 25751, Nov. 19, 2014; Presidential Decree No. 27322, Jul. 6, 2016; Presidential Decree No. 28218, Jul. 26, 2017> |
| 2. | Affairs concerning surveys, etc. on the actual status of credit service providers pursuant to Article 16 of the Act. |
| (3) | If it is inevitable to perform business affairs related to an employment restriction, or the verification of a ground for a restriction on delegating business affairs or having agents that handle business affairs prescribed in Article 9-5 of the Act, a credit service provider, etc. may process data that contains resident registration numbers, etc. <Newly Inserted by Presidential Decree No. 25532, Aug. 6, 2014> |
[This Article Newly Inserted by Presidential Decree No. 23488, Jan. 6, 2012]
| Article 11-6 (Re-Examination of Regulations) |
The Financial Services Commission shall re-exam the validity of regulations on the following matters once every two years after each of the base dates set forth below (referring to the date before the every second anniversary of the base date) and shall take measures for the improvement thereof, etc.: <Amended by Presidential Decree No. 27322, Jul. 6, 2016>
| 1. | Descriptions of the loan agreement, etc. under Article 4: January 1, 2015; |
| 2. | Limitations on the brokerage commission under Article 6-8: January 1, 2015. |
[This Article Newly Inserted by Presidential Decree No. 25840, Dec. 9, 2014]
| Article 12 (Guidelines for Imposition of Administrative Fines) |
The guidelines for imposition of administrative fines are as prescribed in attached Table 3. <Amended by Presidential Decree No. 23321, Nov. 30, 2011>
[This Article Wholly Amended by Presidential Decree No. 21446, Apr. 21, 2009]
ADDENDUM
This Decree shall enter into force on the date of its promulgation.
ADDENDUM <Presidential Decree No. 18312, Mar. 17, 2004>
This Decree shall enter into force on the date of its promulgation.
ADDENDUM <Presidential Decree No. 19019, Aug. 31, 2005>
This Decree shall enter into force on September 1, 2005.
ADDENDA <Presidential Decree No. 20313, Oct. 4, 2007>
Article 1 (Enforcement Date)
This Decree shall enter into force on the date of its promulgation.
Article 2 (Applicability of Limitation to Interest Rates)
The amended provisions of Article 5 (3) and of the latter part of Article 9 shall apply to loan agreements made or renewed on or after the date when this Decree enters into force.
ADDENDA <Presidential Decree No. 20653, Feb. 29, 2008>
Article 1 (Enforcement Date)
This Decree shall enter into force on the date of its promulgation. (Proviso Omitted.)
Article 2 Omitted.
ADDENDUM <Presidential Decree No. 20758, Mar. 28, 2008>
This Decree shall enter into force on the date of its promulgation.
ADDENDA <Presidential Decree No. 21446, Apr. 21, 2009>
Article 1 (Enforcement Date)
This Decree shall enter into force on April 22, 2009.
Article 2 (Special Cases for Change of Trade Names of Credit Service Providers)
Where any credit service provider, etc. has several places of business to run the head office and branch offices changes the trade name, if the head office or a branch office files an application of renewal of registration of the place of business first because the expiration of the effective period of the registration is approaching, other offices, as well as the office filing the application for renewal, may also file an application for amended registration in relation to the trade name.
Article 3 (Transitional Measure in Response to Amendment of Other Statutes and Regulations)
"Article 4 (1) 1 of the Credit Information Use and Protection Act" in the amended provisions of Article 5 (3) 2 shall be construed as "Article 4 (4) 1 of the Credit Information Use and Protection Act" until October 1, 2009. Article 4 (Transitional Measure concerning Administrative Fines)
| (1) | The imposition of administrative fines for violations committed before this Decree enters into force shall be governed by the previous provisions. |
| (2) | Where the guidelines for the imposition of administrative fines shall be applied according to the frequency of violations pursuant to amended provisions of this Act, an violation committed first after this Decree enters into force shall be deemed the first violation. |
Article 5 Omitted.
ADDENDA <Presidential Decree No. 21673, Aug. 5, 2009>
Article 1 (Enforcement Date)
This Decree shall enter into force on August 7, 2009.
Article 2 (Transitional Measure)
Acts done before this Decree enters into force shall be governed by the guidelines for the administrative disposition under the previous provisions.
ADDENDUM <Presidential Decree No. 22135, Apr. 20, 2010>
This Decree shall enter into force on April 26, 2010.
ADDENDA <Presidential Decree No. 22298, Jul. 21, 2010>
Article 1 (Enforcement Date)
This Decree shall enter into force on the date of its promulgation.
Article 2 (Applicability to Limitations on Interest Rates)
The amended provisions of Articles 5 and 9 shall apply to loan agreements executed or renewed on or after this Decree enters into force.
ADDENDA <Presidential Decree No. 22991, Jun. 27, 2011>
Article 1 (Enforcement Date)
This Decree shall enter into force on the date of its promulgation.
Article 2 (Applicability to Limitations on Interest Rates)
The amended provisions of Articles 5 and 9 shall apply to loan agreements executed or renewed after this Decree enters into force.
ADDENDA <Presidential Decree No. 23321, Nov. 30, 2011>
Article 1 (Enforcement Date)
This Decree shall enter into force on the date of its promulgation: Provided, That the amended provisions of Articles 2-5, 4, 6, 6-2 and 6-3 shall enter into force three months after the date of its promulgation. Article 2 (Transitional Measures concerning Administrative Dispositions and Administrative Fines)
Administrative dispositions and administrative fines on any act done before this Decree enters into force shall be governed by the former provisions.
ADDENDA <Presidential Decree No. 23488, Jan. 6, 2012>
Article 1 (Enforcement Date)
This Decree shall enter into force on the date of its promulgation. (Proviso Omitted.)
Article 2 Omitted.
ADDENDA <Presidential Decree No. 23644, Feb. 29, 2012>
Article 1 (Enforcement Date)
This Decree shall enter into force on the date of its promulgation. (Proviso Omitted.)
Articles 2 through 4 Omitted.
ADDENDA <Presidential Decree No. 24076, Aug. 31, 2012>
Article 1 (Enforcement Date)
This Decree shall enter into force on September 2, 2012. (Proviso Omitted.)
Articles 2 through 4 Omitted.
ADDENDA <Presidential Decree No. 24435, Mar. 23, 2013>
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. 24599, Jun. 11, 2013>
Article 1 (Enforcement Date)
This Decree shall enter into force on June 12, 2013.
Article 2 (Applicability to False or Exaggerated Advertisements of Credit Service Providers)
The amended provisions of subparagraph 2 of Article 6-3 shall apply to advertisements conducted after this Decree enters into force.
ADDENDA <Presidential Decree No. 24638, Jun. 28, 2013>
Article 1 (Enforcement Date)
This Decree shall enter into force on July 1, 2013. (Proviso Omitted.)
Articles 2 through 17 Omitted.
ADDENDA <Presidential Decree No. 25293, Apr. 1, 2014>
Article 1 (Enforcement Date)
This Decree shall enter into force on April 2, 2014.
Article 2 (Applicability concerning Interest Rates on Overdue Loans)
The amended provision of Article 9 (3) shall apply beginning with a loan contract concluded or renewed after this Decree enters into force.
ADDENDUM <Presidential Decree No. 25532, Aug. 6, 2014>
This Decree shall enter into force on August 7, 2014.
ADDENDA <Presidential Decree No. 25588, Sep. 3, 2014>
Article 1 (Enforcement Date)
This Decree shall enter into force on September 19, 2014: Provided, That the amended provisions of Articles 7-2 (1) and 9 (3) and (4) shall enter into force on January 1, 2015. Article 2 (Applicability to Restrictions on Interest Rates)
The amended provisions of Article 9 (3) 3 shall apply, beginning with the first loan agreement executed or renewed on or after January 1, 2015.
ADDENDA <Presidential Decree No. 25751, Nov. 19, 2014>
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. 25840, Dec. 9, 2014>
Article 1 (Enforcement Date)
This Decree shall enter into force on January 1, 2015.
Articles 2 through 16 Omitted.
ADDENDA <Presidential Decree No. 27322, Jul. 6, 2016>
Article 1 (Enforcement Date)
This Decree shall enter into force on July 25, 2016.
Article 2 (Transitional Measures concerning Guidelines for Administrative Measures according to Frequency of Violations)
Notwithstanding the amended provisions of subparagraph 1 (b) of attached Table 2, the administrative measures taken against violations committed before this Decree enters into force shall be included in the calculation of the frequency of violations, only if such administrative measures were taken against violations committed during one year before violations committed after this Decree enters into force, for the purpose of applying the guidelines for administrative measures according to the frequency of violations.
Article 3 (Transitional Measures concerning Guidelines for Imposition of Administrative Fines according to Frequency of Violations)
Notwithstanding the amended provisions of subparagraph 1 (a) of attached Table 3, the administrative fines imposed against violations committed before this Decree enters into force shall be included in the calculation of the frequency of violations, only if such violations were committed during one year before the violations committed after this Decree enters into force, for the purpose of applying the guidelines for the imposition of administrative fines according to the frequency of violations.
Article 4 Omitted.
ADDENDA <Presidential Decree No. 27472, Aug. 31, 2016>
Article 1 (Enforcement Date)
This Decree shall enter into force on September 1, 2016.
Articles 2 through 7 Omitted.
ADDENDA <Presidential Decree No. 28218, Jul. 26, 2017>
Article 1 (Enforcement Date)
This Decree shall enter into force on the date of its promulgation.
Articles 2 and 3 Omitted.
ADDENDA <Presidential Decree No. 28257, Aug. 29, 2017>
Article 1 (Enforcement Date)
This Decree shall enter into force on the date of its promulgation.
Article 2 (Transitional Measures concerning Registration)
| (1) | Any person engaging in the credit business, defined in the amended provisions of Article 2-4 (hereafter referred to as "credit business linked to online loan information" in this Article), after registering the credit business with the competent Mayor/Do Governor in accordance with Article 3 (1) of the Act before this Decree enters into force, may continue the credit business linked to online loan information for six months after the enforcement date of this Decree without registering the business with the Financial Services Commission in accordance with Article 3 (2) of the Act. |
| (2) | Any person engaging in the credit business linked to online loan information after registering the credit business with the Financial Services Commission in accordance with Article 3 (2) of the Act before this Decree enters into force may continue the credit business linked to online loan information for six months after the enforcement date of this Decree without registering changes with the Financial Services Commission in accordance with the main sentence of Article 5 (1) of the Act. |
ADDENDA <Presidential Decree No. 28386, Oct. 17, 2017>
Article 1 (Enforcement Date)
This Decree shall enter into force on October 19, 2017.
Article 2 (Transitional Measures concerning Guidelines for Imposing Penalty Surcharges)
Notwithstanding the amended provisions of Article 8-2 hereof and Article 2-2 of the attached Table, former Article 8-2 shall apply to violations committed before this Decree enters into force in applying the standards for imposing penalty surcharges.
ADDENDA <Presidential Decree No. 28420, Nov. 7, 2017>
Article 1 (Enforcement Date)
This Decree shall enter into force three months after the date of its promulgation.
Article 2 (Applicability to Limitations on Interest Rates)
The amended provisions of Articles 5 and 9 shall apply beginning with the first conclusion, renewal or extension of an agreement after this Decree enters into force.
ADDENDA <Presidential Decree No. 29269, Oct. 30, 2018>
Article 1 (Enforcement Date)
This Decree shall enter into force on November 1, 2018.
Articles 2 through 11 Omitted.
ADDENDA <Presidential Decree No. 29287, Nov. 13, 2018>
Article 1 (Enforcement Date)
This Decree shall enter into force on the date of its promulgation: Provided, That the amended provisions of Article 6-8 (2) shall enter into force three months after the date of its promulgation and the amended provisions of Article 2-8 (3) and (4) shall enter into force six months after the date of its promulgation. Article 2 (Applicability to Limitations on Brokerage Commission)
The amended provisions of Article 6-8 (2) shall apply beginning with the first payment of a brokerage commission to a loan broker or solicitor after its enforcement date under the proviso of Article 1 of the Addenda. Article 3 (Transitional Measures concerning Procedures for Registration)
Where a person who has registered a credit business, etc. pursuant to Article 3 (1) of the Act at the time this Decree enters into force falls into the amended provisons of Article 2-6 (3) 1, it shall make registration under Article 3 (2) of the Act and the amended provisons of Article 2-6 (3) 1 of this Decree within six months after this Decree enters into force. Article 4 (Transitional Measures concerning Training for Credit Business)
Notwithstanding the amended provisions of Article 2-8 (3), the previous provisions thereof shall apply where, in cases of being unable to attend the training in advance due to an extenuating circumstance pursuant to the proviso of Article 3-4 (1) of the Act, a credit service provider, etc. required to complete the training after registering, or renewing or changing registration of, credit business, etc. has registered, or renewed or changed registration of, credit business, etc. before this Decree enters into force. Article 5 (Transitional Measures concerning Requirements for Equity Capital)
A person who has registered a credit business, etc. pursuant to the previous provisions at the time this Decree enters into force shall meet the requirements under the amended provisons of Article 2-9 (2) within two years from the enforcement date of this Decree. Article 6 (Transitional Measures concerning Standards for Protection of Users of Credit Business)
A credit service provider, etc. who has registered a credit business, etc. pursuant to the previous provisions at the time this Decree enters into force and is required to establish standards for protection pursuant to the amended provisions of Article 6-6 (1) or to include in the standards for protection the contents referred to in the amended provisions of Article 6-6 (2) 6 and 7 shall meet the requirements under the amended provisions of Article 6-6 within two years from the enforcement date of this Decree.