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ENFORCEMENT DECREE OF THE SPECIALIZED CREDIT FINANCE BUSINESS ACT

Presidential Decree No. 15569, Dec. 31, 1997

Amended by Presidential Decree No. 15761, Apr. 1, 1998

Presidential Decree No. 15817, jun. 24, 1998

Presidential Decree No. 16261, Apr. 24, 1999

Presidential Decree No. 16323, May 24, 1999

Presidential Decree No. 17264, jun. 30, 2001

Presidential Decree No. 17645, jun. 29, 2002

Presidential Decree No. 18170, Dec. 30, 2003

Presidential Decree No. 18297, Feb. 28, 2004

Presidential Decree No. 18312, Mar. 17, 2004

Presidential Decree No. 18365, Apr. 19, 2004

Presidential Decree No. 18401, May 25, 2004

Presidential Decree No. 20120, jun. 28, 2007

Presidential Decree No. 20549, Jan. 18, 2008

Presidential Decree No. 20653, Feb. 29, 2008

Presidential Decree No. 20947, Jul. 29, 2008

Presidential Decree No. 21674, Aug. 5, 2009

Presidential Decree No. 21765, Oct. 1, 2009

Presidential Decree No. 21775, Oct. 9, 2009

Presidential Decree No. 22151, May 4, 2010

Presidential Decree No. 22196, jun. 11, 2010

Presidential Decree No. 22493, Nov. 15, 2010

Presidential Decree No. 23643, Feb. 28, 2012

Presidential Decree No. 23644, Feb. 29, 2012

Presidential Decree No. 24136, Oct. 9, 2012

Presidential Decree No. 24219, Dec. 4, 2012

Presidential Decree No. 24697, Aug. 27, 2013

Presidential Decree No. 24759, Sep. 17, 2013

Presidential Decree No. 25050, Dec. 30, 2013

Presidential Decree No. 25532, Aug. 6, 2014

Presidential Decree No. 26037, Jan. 6, 2015

Presidential Decree No. 26178, Mar. 30, 2015

Presidential Decree No. 26248, May 26, 2015

Presidential Decree No. 26423, Jul. 20, 2015

Presidential Decree No. 26517, Sep. 11, 2015

Presidential Decree No. 26600, Oct. 23, 2015

Presidential Decree No. 27111, Apr. 26, 2016

Presidential Decree No. 27414, Jul. 28, 2016

Presidential Decree No. 27534, Sep. 29, 2016

Presidential Decree No. 27556, Oct. 25, 2016

Presidential Decree No. 28209, Jul. 26, 2017

Presidential Decree No. 28389, Oct. 17, 2017

Presidential Decree No. 29111, Aug. 21, 2018

Presidential Decree No. 29269, Oct. 30, 2018

Presidential Decree No. 29506, Jan. 29, 2019

 Article 1 (Purpose)
The purpose of this Decree is to provide for matters mandated by the Specialized Credit Finance Business Act and matters necessary for the enforcement ofsaid Act.
[This Article Wholly Amended by Presidential Decree No. 21674, Aug. 5, 2009]
 Article 1-2 (Scope of Prohibition of Settlement, etc.)
(1) "Financial instrument prescribed by Presidential Decree, including financial investment instrument, etc. prescribed in Article 3 (1) of the Financial Investment Services and Capital Markets Act" in subparagraph 3 (b) of Article 2 of the Specialized Credit Finance Business Act (hereinafter referred to as the "Act") means any of the following:
1. Financial investment instruments prescribed in Article 3 (1) of the Financial Investment Services and Capital Markets Act;
2. Deposits, installment savings, or installment contributions;
3. Financial instruments prescribed in Ordinance of the Prime Minister which are applicable mutatis mutandis to subparagraph 1 or 2.
(2) "The payment of costs and money for using matters prescribed by Presidential Decree" in subparagraph 3 (d) of Article 2 of the Act means any of the following: <Amended by Presidential Decree No. 29111, Aug. 21, 2018>
1. The payment of costs and money for taking advantage of the casino as prescribed in the Tourism Promotion Act: Provided, That the payment by a foreigner (including an emigrant to overseas under Article 2 of the Emigration Act) shall be excluded if he/she makes payment at a casino licensed under the Tourism Promotion Act by a credit card issued by a person operating any business equivalent to the credit card business in a foreign country;
2. The payment of costs and money for taking advantage of the bicycle and motorboat racing prescribed in subparagraph 1 or 2 of Article 2 of the Bicycle and Motorboat Racing Act;
3. The payment of costs and money for taking advantage of the speculative acts prescribed in Article 2 (1) 1 of the Act on Special Cases concerning Regulation and Punishment of Speculative Acts, Etc.;
4. The payment of costs and money for taking advantage of the traditional bullfighting match prescribed in subparagraph 2 of Article 2 of the Traditional Bullfighting Match Act;
5. The payment of costs and money for using horse racing prescribed in subparagraph 1 of article 2 of the Korea Racing Authority Act;
6. The payment of money made in sequence of a purchase of a merchandise coupon issued by a person who does not have a contract with a credit card company for transactions of merchandise coupons by means of a credit card; the contract hereof means the contract whereby an issuer of the merchandise coupons (including a person who has concluded a contract with the issuer for a consignment sale of the merchandise coupons. The same shall apply hereinafter) provides the credit card holders with the merchandise coupons issued by the issuer according to the transactions by means of a credit card (The same shall apply to subparagraph 7 hereunder);
7. The payment of money made by a personal credit card holder in sequence of a purchase exceeding the monthly use limit of one million won, calculating the aggregate amount of purchases by a prepaid card, electronic prepayment means prescribed in subparagraph 14 of Article 2 of the Electronic Financial Transactions Act (hereinafter referred to as "electronic prepayment means") and merchandise coupons (limited to merchandise coupons issued by an issuer who has a contract with a credit card company for transactions of merchandise coupons).
(3) "Matters prescribed by Presidential Decree" in subparagraph 5-2 of Article 2 of the Act means any of the following acts:
1. Where a transaction by means of a credit card is made, an act of confirming whether the credit card is used by the credit card holder himself/herself in a valid way;
2. Where a transaction by means of a credit card is made, an act of using an electronic device prescribed in subparagraph 8 of Article 2 of the Electronic Financial Transactions Act to transmit to a credit card company, information on electronic financial transaction by means of a credit card presented by the card holder.
[This Article Newly Inserted by Presidential Decree No. 22196, Jun. 11, 2010]
 Article 2 (Scope, etc. of Facility Leasing)
(1) "Goods prescribed by Presidential Decree" in subparagraph 10 of Article 2 of the Act means the following goods: <Amended by Presidential Decree No. 21674, Aug. 5, 2009; Presidential Decree No. 22196, Jun 11, 2010; Presidential Decree No. 26178, Mar. 30, 2015>
1. Facilities, equipment, machinery, and apparatuses;
2. Construction machinery, vehicles, ships, and aircraft;
3. Real property and property rights directly related to the goods referred to in subparagraphs 1 and 2;
4. Real estate to be leased in the form of a facility to small and medium enterprises (referring to small and medium enterprises defined by Article 2 of the Framework Act of Small and Medium Enterprises; hereafter the same shall apply in this Article), which meets each of the criteria determined and publicly notified by the Financial Services Commission;
5. Other goods prescribed by Ordinance of the Prime Minister to provide convenient banking to the public.
(2) and (3) Deleted. <by Presidential Decree No. 16261, Apr. 24, 1999>
(4) "Certain period prescribed by Presidential Decree" in subparagraph 10 of Article 2 of the Act means the period equivalent to 20/100 of the useful life under Articles 28, 29, and 29-2 of the Enforcement Decree of the Corporate Tax Act: Provided, That the useful life of the real estate leased in the form of a facility under paragraph (1) 4 shall be three years. <Amended by Presidential Decree No. 21674, Aug. 5, 2009; Presidential Decree No. 26178, Mar. 30, 2015>
(5) "Period prescribed by Presidential Decree" in subparagraph 11 of Article 2 of the Act means one year. <Amended by Presidential Decree No. 21674, Aug. 5, 2009>
(6) Where a contract for facility leasing, etc. prescribed in Article 29 of the Act (hereinafter referred to as "facility leasing, etc.") is terminated and a new contract for facility leasing, etc. is concluded, the period which has elapsed before the termination of the previous contract shall be deducted in applying the periods under paragraphs (4) and (5). <Amended by Presidential Decree No. 21674, Aug. 5, 2009>
(7) The Financial Services Commission may prescribe and publicly notify the detailed standards for the methods of leasing facilities by a facility lessor and for the methods of using real estate of small and medium enterprises, where a facility lessor leases real estate in the form of a facility to a small or medium enterprise pursuant to paragraph (1) 4. <Amended by Presidential Decree No. 26178, Mar. 30, 2015; Presidential Decree No. 27534, Sep. 29, 2016>
 Article 2-2 (Scope of New Technology Venture Entities)
(1) "Types of business prescribed by Presidential Decree" in the proviso to subparagraph 14-2 (a) of Article 2 of the Act means the following types of business:
1. Other activities auxiliary to financial service activities;
2. Activities auxiliary to insurance and pension funding.
(2) "Types of business prescribed by Presidential Decree" in the proviso to subparagraph 14-2 (b) of Article 2 of the Act means the following types of business:
1. Management of real estate;
2. Real estate brokerage, consultancy and appraisal.
(3) "Types of business prescribed by Presidential Decree" in subparagraph 14-2 (c) of Article 2 of the Act means the following types of business. In such cases, the classification of the types of business shall conform to the Korean Standard Industrial Classification publicly notified by the Commissioner of the Statistics Korea under Article 22 (1) of the Statistics Act (hereinafter referred to as the "Korean Standard Industrial Classification"):
1. General amusement and drinking places;
2. Dancing and drinking halls;
3. Racetrack operation;
4. Other gambling and betting activities;
5. Ballroom operation.
[This Article Newly Inserted by Presidential Decree No. 29111, Aug. 21, 2018]
 Article 2-3 (Restriction on Business of Specialized New Technology Venture Financing Companies)
"Financing business prescribed by Presidential Decree" in subparagraph 14-4 of Article 2 of the Act means financial and insurance activities prescribed in the Korean Standard Industrial Classification: Provided, That any of the following business shall be excluded herefrom: <Amended by Presidential Decree No. 29111, Aug. 21, 2018>
1. New technology venture business;
2. Business affairs assigned to the executive partner of a private equity fund under Article 16 (2) 5;
3. Business affairs assigned to the executive partner of a private equity fund for improving corporate structure under Article 16 (2) 10.
[This Article Newly Inserted by Presidential Decree No. 27534, Sep. 29, 2016]
 Article 2-4 (Scope of Credit Extension)
(1) "Transactions which are prescribed by Presidential Decree" in subparagraph 18 of Article 2 of the Act means each of the following subparagraphs: <Amended by Presidential Decree No. 22196, Jun. 11, 2010; Presidential Decree No. 24759; Presidential Decree No. 27534, Sep. 29, 2016>
1. The amount of credit incurred in respect of the transactions performed using a corporate purchase card (referring to a credit card or a debit card issued by a credit card company for the purpose of a purchase enterprise’s payment to a sales enterprise under the contract entered into by and among the sales enterprise, the purchase enterprise, and the credit card company);
2. The amount of financing granted to credit card holders;
3. The expenses incurred in acquiring the specific goods that a facility leasing business entity transferred to a lessee in accordance with a facilities lease contract, and all the expenses incurred in leasing facilities to the lessee;
4. The amount of sales on deferred payment;
5. The amount of installment financing (including all the expenses that a customer of installment financing services incurs purchasing goods in accordance with a contract for purchase or the sale of goods);
6. The amount of investment in and loans to a new technology business entity;
7. Loans;
8. Discount amount of bills;
9. The amount of accounts receivable purchased under Article 46 (1) 2 of the Act;
10. The amount of bonds or securities purchased under Article 16 (1) 1;
11. The amount of payment guarantee;
12. Deleted. <by Presidential Decree No. 26178, Mar. 30, 2015>
(2) Notwithstanding paragraph (1), the Financial Services Commission may not include any of the following transactions in the scope of credit extension:
1. Transactions deemed unlikely to cause any damage to financial institutions;
2. Transactions whose exclusion from the scope of the credit extension is deemed appropriate, in light of situations in which the relevant transactions take place, such as impacts on the financial market, etc.
[This Article Wholly Amended by Presidential Decree No. 21674, Aug. 5, 2009]
 Article 2-5 (Scope of Equity Capital)
"Prescribed by Presidential Decree" in subparagraph 19 of Article 2 of the Act means the sum of paid-in capital, capital surplus, retained earnings, etc. shown on the financial statement under subparagraph 2 of Article 2 of the Act on External Audit of Stock Companies, plus or minus the amount of money incurred as a result of any error in the settlement of accounts. <Amended by Presidential Decree No. 24759, Sep. 17, 2013; Presidential Decree No. 29269, Oct. 30, 2018>
[This Article Newly Inserted by Presidential Decree No. 20549, Jan. 18, 2008]
 Article 2-6 (Scope of Total Assets)
"Prescribed by Presidential Decree" pursuant to subparagraph 20 of Article 2 of the Act means the amount of assets shown on the balance sheet (in cases of a specialized credit finance business company that is not governed by the Korean International Financial Reporting Standards prescribed in Article 3 (1) of the Enforcement Decree of the Act on External Audit of Stock Companies, the amount of assets with actual credit risks shall be included). <Amended by Presidential Decree No. 29269, Oct. 30, 2018>
[This Article Newly Inserted by Presidential Decree No. 24219, Dec. 4, 2012]
 Article 3 (Concurrent Loan Service Provider)
(1) "One designated by Presidential Decree" in Article 3 (3) 1 of the Act means the following persons: <Amended by Presidential Decree No. 22493, Nov. 15, 2010; Presidential Decree No. 23496, Jan. 6, 2012; Presidential Decree No. 26178, Mar. 30, 2015; Presidential Decree No. 27111, Apr. 26, 2016; Presidential Decree No. 27556, Oct. 25, 2016>
1. A bank authorized under the Banking Act;
1-2. Nonghyup Bank established under the Agricultural Cooperatives Act;
1-3. Suhyup Bank established under the Fisheries Cooperatives Act;
2. The Korea Development Bank established under the Korea Development Bank Act;
3. The Industrial Bank of Korea established under the Industrial Bank of Korea Act;
4. The Export-Import Bank of Korea established under the Export-Import Bank of Korea Act;
5. A merchant bank established under the Financial Investment Services and Capital Markets Act;
5-2. A financial investment services entity (only applicable in cases of intending to conduct new technology venture capital business) under the Financial Investment Services and Capital Markets Act;
6. The Korea Federation of Savings Bank established under the Mutual Savings Banks Act;
6-2. A mutual savings bank with authorization granted under the Mutual Savings Banks Act (limited to where a mutual savings bank intends to engage in installment financing business);
7. The National Federation of Credit Unions established under the Credit Unions Act;
8. The Federation of Community Credit Cooperatives established under the Community Credit Cooperatives Act.
(2) "Persons designated by Presidential Decree" in Article 3 (3) 2 of the Act means any of the following persons:
1. A person operating a large scale store under subparagraph 3 of Article 2 of the Distribution Industry Development Act;
2. A person operating business of continuously guiding the management of and supplying the goods to the multiple wholesale and retail stores in the same line of business by contract.
[This Article Wholly Amended by Presidential Decree No. 21674, Aug. 5, 2009]
 Article 3-2 (Attached Documents for License and Registration)
(1) A person who intends to obtain a license for credit card business pursuant to Article 4 of the Act shall file an application (including applications in electronic format) with the Financial Services Commission, accompanying each of the following documents. In such cases, a public official in charge shall confirm a certified copy of corporate registration through the joint use of administrative information under Article 36 (1) or (2) of the Electronic Government Act: <Amended by Presidential Decree No. 22151, May 4, 2010>
1. Articles of incorporation;
2. Documents evidencing the payment of capital;
3. Business plans (including estimated financial statements and statement on estimated revenue and expenditure) for three years from the commencement of business;
4. Financial statements and accompanying documents;
5. If the largest stockholder under Article 4 is a corporation, the financial statements thereof and accompanying documents;
6. If an applicant is a specialized credit finance business company or concurrent loan service provider, documents indicating the current status of business, including credit performance, the number of customers, etc.;
7. Resume and certificate of career of an executive officer.
(2) A person who intends to register facility leasing business, installment financing business, or new technology venture capital business pursuant to Article 4 of the Act shall file an application with the Financial Services Commission, accompanying the documents under paragraph (1) 1, 2, 4, 6, and 7. In such cases, a public official in charge shall confirm a certified copy of corporate registration through the joint use of administrative information under Article 36 (1) or (2) of the Electronic Government Act. <Amended by Presidential Decree No. 22151, May 4, 2010>
[This Article Wholly Amended by Presidential Decree No. 21674, Aug. 5, 2009]
 Article 4 (Scope of Investors)
(1) "An investor determined by Presidential Decree" in Article 6 (1) 1 of the Act means a major stockholder (including a stockholder in a special relationship with the largest stockholder).
(2) "An investor determined by Presidential Decree" in Article 6 (1) 2 of the Act means a major stockholder (including a stockholder in a special relationship with the largest stockholder).
[This Article Wholly Amended by Presidential Decree No. 20549, Jan. 18, 2008]
 Article 5 (Persons in Default)
"A person who has not repaid his/her debt within the agreed date of business transactions, such as financial transactions, and is prescribed by Presidential Decree" in Article 6 (1) 3 of the Act means a person who has incurred loan charge-off to institutions under Article 2 (3) 1, 3, and 4 and Article 5 (1) 1 through 18 of the Enforcement Decree of the Credit Information Use and Protection Act, whose credit information is intensively controlled and utilized in a comprehensive credit information collection agency under Article 25 (2) 1 of the Credit Information Use and Protection Act, and for which three years have not elapsed from the date of such intensive control and utilization. <Amended by Presidential Decree No. 21765, Oct. 1, 2009>
[This Article Wholly Amended by Presidential Decree No. 21674, Aug. 5, 2009]
 Article 6 (Finance-Related Statutes)
"Finance-related statutes as determined by Presidential Decree" in Article 6 (1) 4 of the Act means the statutes (hereinafter referred to as "finance-related statutes") under Article 5 of the Enforcement Decree of the Act on Corporate Governance of Financial Companies: <Amended Presidential Decree No. 21775, Oct. 9, 2009; Presidential Decree No. 22493, Nov. 15, 2010; Presidential Decree No. 27414, Jul. 28, 2016>
1. and 2. Deleted; <by Presidential Decree No. 27414, Jul. 28, 2016>
3. and 4. Deleted. <by Presidential Decree No. 21775, Oct. 9, 2009>
[This Article Wholly Amended by Presidential Decree No. 21674, Aug. 5, 2009]
 Article 6-2 (Standards for Financial Soundness Necessary for License of Credit Card Business)
(1) The standards for financial soundness under Article 6 (1) 5 of the Act shall be as follows:
1. If an applicant for license is an institution subject to inspection by the Financial Supervisory Service pursuant to Article 38 of the Act on the Establishment, etc. of Financial Services Commission: The applicant shall comply with the standards for financial soundness prescribed by the Financial Services Commission, taking into account the standards for sound management prescribed by the statutes concerning the establishment and operation of the relevant institution;
2. If an applicant is a person other than in subparagraph 1: The ratio of total liabilities to equity capital of the relevant company [if a major stockholder is a company belonging to an enterprise group under subparagraph 2 of Article 2 of the Monopoly Regulation and Fair Trade Act (excluding enterprise groups falling under Article 17 (1) 1 and 2 of the Enforcement Decree of the same Act; hereinafter referred to as "enterprise group"), including enterprise groups which exclude the companies operating financial business or insurance business] shall be less than the ratio prescribed by the Financial Services Commission within the scope of 200/100.
(2) "A corporation, which is prescribed by Presidential Decree" in Article 6 (1) 6 of the Act means a corporation (including a stockholder who is a specially interested party of the largest stockholder) that is a major stockholder falling under Article 6 (1) 1 through 5 of the Act.
(3) The Financial Services Commission may prescribe the details on the standards under paragraph (1).
[This Article Wholly Amended by Presidential Decree No. 21674, Aug. 5, 2009]
 Article 6-3 (Detailed Requirements for License of Credit Card Business)
(1) A person who intends to obtain a license of credit card business under Article 6 (2) 2 of the Act shall meet the detailed requirements for experts and physical facilities under each subparagraph:
1. The person shall have necessary experts with specialty in credit card business and personnel for computerization;
2. The person shall install electronic computer system necessary for operating credit card business and secure stores, etc.
(2) The business plan under Article 6 (2) 3 of the Act shall comply with each of the following requirements:
1. A plan for securing credit card holders and credit card merchants necessary for the smooth operation of credit card business shall be appropriate and realizable;
2. A plan for financing funds for prompt settlement of charges related to the use of credit cards shall be appropriate and realizable;
3. The prospect of revenue and expenditure shall be appropriate and realizable;
4. It shall be unlikely to undermine sound financial order.
(3) "Shareholders determined by Presidential Decree" in Article 6 (2) 4 of the Act shall be as follows:
1. The largest stockholder (if a person who has de facto control over the matters material to the corporation that is the largest stockholder is obviously different from the largest stockholder of the corporation, including the person who has de facto control) of the corporation that is the largest stockholder;
2. The representative of the corporation that is the largest stockholder.
(4) The major stockholder under Article 6 (2) 4 of the Act shall meet the requirements prescribed in attached Table 1.
(5) Deleted. <by Presidential Decree No. 27414, Jul. 28, 2016>
(6) "Cases prescribed by Presidential Decree" in the proviso to Article 6-2 means where all of the following requirements shall be met: <Newly Inserted by Presidential Decree No. 22196, Jun. 11, 2010; Presidential Decree No. 27414, Jul. 28, 2016>
1. There shall not be an interference in protection of private information;
2. There shall not be worries about the interference of profit of a credit card holder or a credit card merchant due to delay of credit card services;
3. There shall not be interference on observing the criteria for internal control under Article 24 (1) of the Act on Corporate Governance of Financial Companies (hereinafter referred to as “criteria for internal control”).
(7) The Financial Services Commission may prescribe the details of the requirements under paragraphs (1) through (6). <Amended by Presidential Decree No. 22196, Jun. 11, 2010>
[This Article Wholly Amended by Presidential Decree No. 21674, Aug. 5, 2009]
 Article 6-4 (Application for Cancellation of Registration)
Any person who intends to apply for cancellation of registration pursuant to Article 10 (1) of the Act shall file, with the Financial Services Commission, an application for cancellation of registration stating the matters under each subparagraph:
1. Name of the company;
2. Details of the specialized credit finance business for which cancellation of registration is applied;
3. Grounds for cancellation of registration.
[This Article Wholly Amended by Presidential Decree No. 21674, Aug. 5, 2009]
 Article 6-5 (Standards for Operation of Incidental Business)
(1) No concurrent loan service provider registered for credit card business pursuant to the proviso to Article 3 (1) of the Act shall operate incidental business under Article 13 (1) of the Act.
(2) Any credit card company shall ensure that, as at the end of each quarter, the average balance of the credit incurred, during each quarter, in providing financing for credit card holders under Article 13 (1) 1 of the Act (excluding the credit a credit card company incurs in providing re-financing to the same credit card holders under modified terms and conditions, such as maturity and interest rates to restructure the debts owed by those credit card holders) does not exceed the sum of the following amounts: <Amended by Presidential Decree No. 24759, Sep. 17, 2013; Presidential Decree No. 29111, Aug. 21, 2018>
1. The average balance of the credit that credit card holders incur, during a quarter, in purchasing goods or receiving services using a credit card (excluding the amount of credit prescribed in Article 2-4 (1) 1);
2. The amount of payment debit card holders make with a debit card during a quarter.
(3) No credit card business entity shall enter into any of the financing transactions referred to in Article 13 (1) 1 with corporate credit card holders: Provided, That the same shall not apply where a corporate credit card holder borrows a loan in cash from abroad under an agreement made for the use of a password. <Newly Inserted by Presidential Decree No. 27534, Sep. 29, 2016>
(4) Any credit card business entity under Article 13 (2) of the Act may require a third party to perform any of the following affairs:
1. Issuance of debit cards and pre-paid cards;
2. Sales of pre-paid cards (including refund);
3. Payment of debit card bills and pre-paid card bills (including approval of transactions).
[This Article Wholly Amended by Presidential Decree No. 21674, Aug. 5, 2009]
 Article 6-6 (Renewal or Reissuance of Credit Cards and Debit Cards)
Any credit card company may renew or reissue a credit card or debit card pursuant to the proviso to Article 14 (1) of the Act in any of the following cases:
1. Credit cards or debit cards which have not been used within six months before the scheduled renewal or re-issuance: Where the credit card company obtain written consent (including the consent through electronic documents under subparagraph 1 of Article 2 of the Digital Signature Act with the certified digital signature under subparagraph 3 of Article 2 of the same Act) from the relevant credit card holders or debit card holders with respect to the renewal or re-issuance;
2. Credit cards or debit cards which have been used within six months before the scheduled renewal or re-issuance: Where the credit card company notifies the relevant credit card holders or debit card holders of the scheduled renewal or re-issuance before one month from the date of the scheduled renewal or re-issuance and such holders do not raise any objection within 20 days from the notification.
[This Article Wholly Amended by Presidential Decree No. 21674, Aug. 5, 2009]
 Article 6-7 (Issuance of Credit Cards and Methods of Credit Card Solicitation)
(1) "Matters prescribed by Presidential Decree" in Article 14 (2) 2 (e) of the Act means the following matters:
1. Whether an applicant for a credit card has a debt which he/she has failed to pay off to the credit card company or other financial institutions (referring to the financial institutions under Article 2 of the Act on the Structural Improvement of the Financial Industry) by the due date (hereinafter referred to as "delinquent debt");
2. If the debt is paid off or reimbursed, methods of such payment or reimbursement.
(2) "Persons who are above the age prescribed by Presidential Decree" in Article 14 (3) 2 of the Act shall mean those who have reached the age of majority and over under Article 4 of the Civil Act: Provided, That in any of the following cases, a credit card may be issued even to a person under the age of majority: <Amended by Presidential Decree No. 28389, Oct. 17, 2017>
1. Where policies, such as policies for self-support assistance in accordance with Article 38 of the Child Welfare Act, unavoidably require that the State or local governments allow issuance of a credit card;
2. Where his/her employment can be proved as of the date of issuing a card;
3. Where a credit card falling under paragraph (3) 1 (b) is issued for the purpose of functioning as a transportation card under subparagraph 6 of Article 2 of the Act on the Support and Promotion of Utilization of Mass Transit System.
(3) "Requirements prescribed by Presidential Decree" in Article 14 (3) 3 of the Act shall be as follows: <Amended by Presidential Decree No. 24136, Oct. 9, 2012; Presidential Decree No. 26517, Sep. 11, 2015>
1. The applicant's personal credit rating (referring to the rating set by a person who has obtained permission pursuant to Article 4 (2) of the Credit Information Use and Protection Act to engage in the credit inquiry business prescribed in Article 4 (1) 1 of the same Act) as of the date of application for the issuance of credit cards shall meet the requirements determined and publicly notified by the Financial Services Commission: Provided, That such requirements shall not apply in any of the following cases:
(a) Where the relevant credit card company can verify, based on objective data, that the applicant has the capability to pay credit card bills, or where the person in question can prove such capability;
(b) Where the Financial Services Commission set credit limits on debit-cum-credit cards in order to provide user convenience to credit card holders;
(c) Where credit cards are issued pursuant to the proviso to paragraph (2);
2. It shall be confirmed whether an applicant is the person in question according to the methods under the latter part of Article 30 (3) of the Enforcement Decree of Credit Information Use and Protection Act.
(4) "Solicitations which are prescribed by Presidential Decree" in Article 14 (4) 2 of the Act means cardholder solicitation by a credit card company without confirming whether the applicant is the person in question using the certified digital signature under subparagraph 3 of Article 2 of the Digital Signature Act: Provided, That any case where it can be confirmed that the applicant is the person in question by using identifiable information, such as the issuing authorities for the applicant’s identification card or issuance date thereof, or by receiving signature of the person in question shall be excluded.
(5) Pursuant to Article 14 (4) 3 of the Act, a credit card company shall not solicit credit card holders using any of the following methods: <Amended by Presidential Decree No. 27534, Sep. 29, 2016>
1. Solicitations by providing, or on the condition of providing, economic benefit exceeding 10/100 of the annual fee (referring to the average annual fee, if the annual fee is less than the average annual fee for major credit cards) for the credit card in connection with the issuance of the credit card: Provided, That a credit card holder may be solicited by providing, or on the condition of providing, economic not exceeding 100/100 of the annual fee for the credit card, if a person becomes a credit card holder voluntarily by using a computer communications network;
2. Solicitations on the streets, such as roads and private roads under Article 2 of the Road Act and Article 2 of the Private Road Act;
3. Solicitations through visits: Provided, That paying a visit after obtaining prior consent or paying a visit to a workplace shall be excluded herefrom.
(6) Matters relating to the average annual fee under paragraph (5) 1, the scope of the streets under subparagraph 2, the procedures for obtaining prior consent and the scope of a workplace under the proviso to subparagraph 3 shall be determined and publicly notified by the Financial Services Commission.
(7) "Matters prescribed by Presidential Decree" in the main sentence of Article 14 (5) of the Act shall be as follows: <Amended by Presidential Decree No. 24759, Sep. 17, 2013>
1. Terms of transactions, such as annual fee, interest rate, commission, credit limit, payment method, payment date, credit card validity, and credit ratings;
2. Procedures for raising objections performed by credit card holders or debit card holders when any dispute arises between a credit card company and credit card holders or debit card holders;
3. Matters that can justifiably be blamed on an intentional act, an act of negligence or of gross negligence on the part of credit card holders or debit card holders when their credit cards or debit cards are stolen, lost, forged, or falsified;
4. Grounds for the return of annual fees under Article 6-11 (1), methods of calculation of annual fees to return under (2) of the same Article, or deadline for returning such fees under (3) of the same Article.
[This Article Wholly Amended by Presidential Decree No. 21647, Aug. 5, 2009]
 Article 6-8 (Matters to be Observed by Solicitors, etc.)
(1) Any person who solicits credit card holders pursuant to Article 14-2 (2) of the Act (hereinafter referred to as "solicitor") shall comply with each of the following rules, when he/she solicits credit card customers: <Amended by Presidential Decree No. 23643, Feb. 28, 2012; Presidential Decree No. 24759, Sep. 17, 2013; Presidential Decree No. 26178, Mar. 30, 2015>
1. The solicitor shall inform an applicant that he/she is entitled to engage in credit card solicitation pursuant to Article 14-2 (1) of the Act;
2. The solicitor shall explain the terms and conditions of credit card transactions and matters described in Article 6-7 (7) 4, such as the terms and conditions and annual fee for the credit card;
3. The solicitor shall verify the applicant's identity and shall ensure that the applicant completes an application form personally (including an electronic application form) and prepares documents (including documents in electronic form) related to the issuance of a credit card on his/her own. In such cases, the solicitor shall observe each of the following rules:
(a) When the solicitor verifies the identity of a disabled person defined by Article 2 of the Act on the Prohibition of Discrimination against Persons with Disabilities, Remedy against Infringement of Their Rights, Etc. and assists the disabled person to prepare the documents for applying for the issuance of a credit card (including documents in electronic form), he/she shall provide legitimate convenience to the disabled person in accordance with Article 4 (2) of the aforesaid Act;
(b) Where an application, documents, etc. are prepared in electronic form, the information stated by the applicant shall be encrypted before being transmitted to the relevant credit card company;
4. The solicitor shall write his/her name and registration number (including other proof indicating the identity of the solicitor) on the application for the issuance of the credit card prepared by the applicant;
5. The solicitor shall not arrange signing of contracts for the issuance of credit cards for a person other than credit card companies;
6. The solicitor shall follow the methods under Article 14 (4) of the Act and Article 6-7 (5) of this Decree when soliciting credit card holders;
7. The solicitor shall not divulge or misappropriate confidential personal information about the applicant, such as his/her credit information (referring to the credit information under subparagraph 1 of Article 2 of the Credit Information Use and Protection Act) and information related to the privacy thereof acquired in the course of soliciting credit card holders for any purpose other than business;
8. When seeking to make loans under Article 13 (1) 1 of the Act, the solicitor shall not disguise or distort any of the terms of transactions, such as lending rates, overdue interest rates, and service fees, and shall explain them in an easy-to-understand manner.
(2) If deemed necessary for an investigation prescribed in Article 14-5 (4) of the Act, the Financial Services Commission may request the solicitor to submit each of the following matters: <Newly Inserted by Presidential Decree No. 22196, Jun. 11, 2010>
1. A written statement on relevant facts and the status of the case subject to investigation;
2. Books of accounts, documents, and other materials necessary for an inspection.
(3) A person who conducts an investigation as prescribed in paragraph (2) shall carry an identification verifying his/her authority and present it to interested persons. <Newly Inserted by Presidential Decree No. 22196, Jun. 11, 2010>
[This Article Wholly Amended by Presidential Decree No. 21674, Aug. 5, 2009]
 Article 6-9 (Liability to Credit Card Holders, etc.)
(1) "Period prescribed by Presidential Decree" in Article 16 (2) of the Act means a period of 60 days from the date the notification of loss, theft, etc. issued under paragraph (1) of the same Article is received. <Amended by Presidential Decree No. 26423, Jul. 20, 2015>
(2) The scope of intentional acts or gross negligence under Article 16 (9) of the Act is as follows: <Newly Inserted by Presidential Decree No. 26423, Jul. 20, 2015; Presidential Decree No. 27534, Sep. 29, 2016>
1. Where a password is divulged intentionally or by gross negligence;
2. Where a credit card or a debit card is transferred or offered as security to another person;
3. Any of the cases specified in Article 9 (2) 1 of the Electronic Financial Transactions Act and Article 8 of the Enforcement Decree of the same Act. In such cases, "financial company or electronic financial company" shall be construed as "credit card business entity", and "user" and "credit card holder or such".
[This Article Wholly Amended by Presidential Decree No. 21674, Aug. 5, 2009]
 Article 6-10 (Matters to be Observed, etc. by Solicitors of Credit Card Merchants)
(1) Pursuant to Article 16-2 (2) of the Act, a person who solicits credit card merchants shall observe each of the following matters: <Amended by Presidential Decree No. 27534, Sep. 29, 2016>
1. The solicitor shall notify the person who intends to become a credit card merchant, that the solicitor is qualified to solicit credit card merchants under Article 16-2 (1) of the Act;
2. The solicitor shall visit the place of business of the person who intends to become a credit card merchant to ascertain whether the person operates his/her business there, etc.;
3. The solicitor shall explain each of the following matters to the person who intends to become a credit card merchant:
(a) Standard terms and conditions for credit card merchants;
(b) Matters specified in subparagraph 4 of Article 18 of the Act;
4. No solicitor shall require another person to solicit credit card merchants on his/her behalf or entrust solicitation to another person;
5. No solicitor shall offer (or promise to offer) rewards, etc. (referring to rewards, etc. referred to in Article 18-3 (4) 2 of the Act) to any person who intends to become a large credit card merchant (referring to a large credit card merchant referred to in the main sentence of Article 18-3 (4) of the Act; hereinafter the same shall apply) to solicit the person unfairly to make transactions with him/her;
6. Other matters deemed necessary for establishing good order in soliciting member merchants, which are prescribed and publicly notified by the Financial Services Commission.
(2) If the Financial Services Commission deems it necessary for an inspection under Article 16-2 (3) of the Act, it may request a person who solicits credit card merchants to submit each of the following matters:
1. A written statement on relevant facts and the status of the case subject to inspection;
2. Books of accounts, documents, and other materials necessary for an inspection.
(3) A person who conducts an inspection under paragraph (2), shall carry a certificate indicating his/her authority and produce it to persons involved.
(4) In order to be qualified as a merchant solicitor under Article 16-3 (3) of the Act, a person shall be a business entity whose business is registered with the head of the relevant tax office.
(5) The business standards for merchant solicitors prescribed in Article 16-3 (3) of the Act, are as follows:
1. A merchant solicitor shall install a credit card terminal, registered with the Financial Services Commission under Article 27-4 (1) of the Act, in the place of business of each credit card merchant;
2. A merchant solicitor shall ascertain each of the following facts by visiting the place of business of each credit card merchant or by other methods:
(a) Whether the credit card merchant actually operates the relevant business;
(b) Whether the credit card merchant uses the credit card terminal installed under subparagraph 1;
3. A merchant solicitor shall observe the matters prescribed by Article 42 (1) of the Credit Information Use and Protection Act.
[This Article Wholly Amended by Presidential Decree No. 26423, Jul. 20, 2015]
 Article 6-11 (Grounds for Return of Annual Fees and Amount to Return, etc., upon Termination of Contract)
(1) Grounds for returning annual fees under Article 16-5 (2) of the Act exist when a credit card holder terminates his/her contract with the credit card company. <Amended by Presidential Decree No. 26423, Jul. 20, 2015>
(2) The amount of annul fees to be returned under Article 16-5 (2) of the Act shall be calculated on a daily basis from the date a credit card holder terminates his/her contract with a credit card company. In such cases, each of the following costs reflected in the annual fees already paid by the credit card holder shall be excluded from the calculation: <Amended by Presidential Decree No. 26423, Jul. 20, 2015>
1. The costs incurred in issuing a credit card (limited to cases of a new issuance), such as the cost of distribution and delivery of the card;
2. The costs incurred in providing optional services, such as additional benefits provided with a credit card.
(3) Credit card companies shall return the annual fees calculated pursuant to paragraph (2) within ten business days from the date the credit card holders terminate the contract with the credit card companies: Provided, That the annual fees may be returned within three months after the contract is terminated if the credit card companies cannot return the amount within ten business days after contract termination due to any unavoidable cause, such as time taken to confirm the details of additional services offered according to paragraph (2) 2.
(4) In returning the annual fee amount to be returned under paragraph (3), the credit card company shall inform the person who has terminated the contract with the relevant company of the calculation methods of such annual fee amount.
(5) Where the credit card company cannot return the annual fee amount to be returned within ten business days after the contract is terminated for the reasons set forth in the proviso to paragraph (3), it shall inform the person who has terminated his/her contract with the company concerned of a reason for delayed return and a scheduled return date, by no later than ten business days from the date of contract termination.
(6) Except as otherwise expressly provided for in paragraphs (1) through (5), other detailed matters necessary for the return of annual fees shall be determined and publicly notified by the Financial Services Commission.
[This Article Newly Inserted by Presidential Decree No. 24759, Sep. 17, 2013]
 Article 6-12 (Standards for Establishment of Credit Card Merchants’ Association)
(1) "Standards prescribed by Presidential Decree, such as annual sales" in Article 18-2 (1) of the Act means each of the following requirements that shall be fully satisfied: <Amended by Presidential Decree No. 23643, Feb. 28, 2012; Presidential Decree No. 24219, Dec. 4, 2012; Presidential Decree No. 26248, May 26, 2015>
1. The members shall be micro enterprises defined by Article 2 of the Act on the Protection of and Support for Micro Enterprises;
2. Annual sales shall not exceed 200 million won.
(2) The Financial Services Commission may prescribe and publicly notify matters necessary to determine the detailed standards for the requirements prescribed in the subparagraphs of paragraph (1).
[This Article Newly Inserted by Presidential Decree No. 22196, Jun. 11, 2010]
 Article 6-13 (Eligibility for Petty Small and Medium Credit Card Merchants)
(1) "Petty, small or medium credit card merchant whose scale does not exceed the scale prescribed by Presidential Decree" in Article 18-3 (3) of the Act means an individual or a corporate credit card merchant (hereinafter referred to as "petty, small or medium credit card merchant") with annual sales (the annual sales during a business period of less than one year shall be converted into the sales during 12 months; and the annual sales mean the sum of annual sales of credit card merchants, if an individual or a corporation owns two or more credit card merchants; hereafter the same shall apply in this Article) of not more than three billion won. <Amended by Presidential Decree No. 26037, Jan. 6, 2015; Presidential Decree No. 27534, Sep. 29, 2016; Presidential Decree No. 28209, Jul. 26, 2017; Presidential Decree No. 29506, Jan. 29, 2019>
(2) When the Financial Services Commission prescribes preferential fee rates pursuant to Article 18-3 (3) of the Act, it may prescribe different preferential fee rates applicable to petty, small or medium credit card merchants under paragraph (1) as follows: <Newly Inserted by Presidential Decree No. 26037, Jan. 6, 2015; Presidential Decree No. 28209, Jul. 26, 2017; Presidential Decree No. 29506, Jan. 29, 2019>
1. A credit card merchant with annual sales of not more than 300 million won;
2. A credit card merchant with annual sales of more than 300 million won but not more than 500 million won;
3. A credit card merchant with annual sales of more than 500 million won but not more than one billion won;
4. A credit card merchant with annual sales of more than one billion won but not more than three billion won.
(3) The Financial Services Commission may determine and publicly notify the detailed standards for calculating annual sales of petty, small or medium credit card merchants prescribed in paragraph (1). <Amended by Presidential Decree No. 26037, Jan. 6, 2015>
[This Article Newly Inserted by Presidential Decree 24219, Dec. 4, 2012]
 Article 6-14 (Standards of Large Credit Card Merchants)
(1) "Large credit card merchants whose scale of business is at least the scale prescribed by Presidential Decree" in the main sentence of Article 18-3 (4) of the Act means an individual or corporate credit card merchant whose annual sales for the immediately preceding year (the sales during a business period of less than one year shall be converted into sales during 12 months) exceed 300 million won (referring to the sum of annual sales of credit card merchants, if the individual or corporation owns two or more credit card merchants). <Amended by Presidential Decree No. 27111, Apr. 26, 2016; Presidential Decree No. 27534, Sep. 29, 2016>
(2) The Financial Services Commission may annually make a public announcement of large credit card merchants.
(3) The Financial Services Commission may determine and publicly notify detailed standards for calculation, etc. of the sales of large credit card merchants under paragraph (1) and detailed standards for public announcement, etc. under paragraph (2). <Amended by Presidential Decree No. 27111, Apr. 26, 2016>
[This Article Newly Inserted by Presidential Decree No. 24219, Dec. 4, 2012]
 Article 6-15 (Scope of Specially Related Persons of Large Credit Card Merchants)
"Specially-related person prescribed by Presidential Decree" in Article 19 (6) of the Act means any of the following persons:
1. If a large credit card merchant is an individual: The spouse of the representative (including a person who has a de facto marital relationship);
2. If a large credit card merchant is a corporation: Either of the following persons:
(a) A majority stockholder or an executive officer;
(b) An affiliated company (referring to an affiliated company as defined in subparagraph 3 of Article 2 of the Monopoly Regulation and Fair Trade Act; hereafter the same shall apply in this Article) or a majority stockholder or an executive officer of an affiliated company;
3. Other persons specified and publicly notified by the Financial Services Commission as those who have de facto control over a large credit card merchant.
[This Article Newly Inserted by Presidential Decree No. 27534, Sep. 29, 2016]
 Article 6-16 (Matters to be Observed by Merchant Agencies for Receipt)
"Matters prescribed by Presidential Decree" in subparagraph 3 of Article 19-2 of the Act means each of the following matters: <Amended by Presidential Decree No. 26423, Jul. 20, 2015>
1. To submit to the credit card company the details of vicarious activities which have been performed among those set forth in the subparagraphs of Article 1-2 (3) (hereafter referred to as "receipt" in this Article) and credit information about the credit card merchants which have entrusted the receipt to a merchant agency;
2. To inform credit card holders (referring to credit card holders, etc. defined by subparagraph 5 (a) of Article 2 of the Act; the same shall apply hereinafter) of trade names and addresses of the credit card merchants which entrust the receipt of payments to a merchant agency;
3. To comply with the request of the credit card holders for cancelling transactions or refund, etc.;
4. Matters determined and publicly notified by the Financial Services Commission to ensure the safety and reliability of the information and communications network and the electronic devices prescribed in Article 1-2 (3) 2 that are used for the transmission and processing of the credit information about credit card holders by the merchant agencies for receipt, credit card companies, and credit card merchants which have entrusted the receipt.
[This Article Newly Inserted by Presidential Decree No. 22196, Jun. 11, 2010]
 Article 6-17 (Termination of Merchant Agreement)
A credit card company shall terminate the merchant agreement concluded with a credit card merchant pursuant to Article 21 of the Act, in any of the following cases: <Amended by Presidential Decree No. 29111, Aug. 21, 2018>
1. Where a credit card merchant is sentenced to any punishment, in violation of Article 19 (4), (5), or 20 (1) of the Act;
2. Where a credit card merchant receives a written notice from the tax office, with respect to a violation of Article 19 (1), (4), (5) or (7) or Article 20 (1) of the Act;
2-2. Where a credit card merchant receives a written notice on the details of an administrative fine from the Financial Services Commission, with respect to a violation of Article 19 (3) of the Act: Provided, That the foregoing shall not apply where a credit card merchant eliminates reasons for the violation within one month after the written notice is received;
3. Other cases prescribed by Ordinance of the Prime Minister, as corresponding to those falling under subparagraphs 1, 2 and 2-2.
[This Article Wholly Amended by Presidential Decree No. 21674, Aug. 5, 2009]
 Article 7 (Restrictions on Solicitation of Merchants)
The scope of credit card merchants which may be solicited pursuant to Article 23 (1) of the Act by a concurrent loan service provider who makes registration of credit card business under the proviso to Article 3 (1) of the Act shall be as follows:
1. A business entity conducting business activities in the place of business of the concurrent loan service provider;
2. A business entity entering into a contract for sales agency with the concurrent loan service provider;
3. A business entity conducting business activities by adopting the trade name, trade mark, and management technique of the concurrent loan service provider in accordance with the contract for management consignment.
[This Article Wholly Amended by Presidential Decree No. 21674, Aug. 5, 2009]
 Article 7-2 (Restrictions on Credit Limit of Prepaid Card, etc.)
(1) The maximum limit of face value of a prepaid card under Article 24 of the Act shall be 500,000 won: Provided, That in cases of a registered prepaid card, the credit limit shall be five million won. <Amended by Presidential Decree No. 22196, Jun. 11, 2010>
(2) "Matters prescribed by Presidential Decree" in subparagraph 10 of Article 24 of the Act shall be as follows: <Amended by Presidential Decree No. 24136, Oct. 9, 2012; Presidential Decree No. 24219, Dec. 4, 2012; Presidential Decree No. 24759, Sep. 17, 2013; Presidential Decree No. 27111, Apr. 26, 2016>
1. If any separate procedure for obtaining consent of credit card holders, etc. with respect to the provision and use of credit information is not available or no consent is obtained for the provision and use of credit information, matters relating to the protection and management of credit information including the prohibition of refusal to issue a credit card;
2. If any credit card holder raises objections on the amount used pursuant to Article 16 (10) of the Act, matters relating to the procedures for inspection thereof;
3. If any credit card holder has not used his/her credit card for at least one year from the last date of its use (referring to the date of issuance if the credit card has not been used at all since its issuance), matters relating to the procedures for cancellation of dormant credit cards;
4. Matters relating to general credit card solicitation rules, such as matters to be observed by solicitors when seeking to acquire credit card customers, methods of inspecting whether solicitors have observed such matters, and measures to be taken when solicitors fail to observe such matters;
5. Matters that should be observed when designing and operating products, such as a debit card and a pre-paid card (hereinafter referred to as "credit card, etc.").
[This Article Wholly Amended by Presidential Decree No. 21674, Aug. 5, 2009]
 Article 7-3 (Violations of Credit Card Companies)
(1) Specific types of and guidelines for violations under Article 24-2 (2) of the Act shall be as specified in attached Table 1-3.
(2) The Financial Services Commission shall prescribe and publicly notify detailed standards for types of and guidelines for violations under paragraph (1) as the Commission deems necessary to apply to specific violations among those under paragraph (1).
[This Article Newly Inserted by Presidential Decree No. 21674, Aug. 5, 2009]
 Article 8 (Deposits)
"An amount prescribed by Presidential Decree" in Article 25 (1) of the Act means the amount equivalent to 3/100 of the total amount of pre-paid cards issued as at the end of each quarter.
[This Article Wholly Amended by Presidential Decree No. 21674, Aug. 5, 2009]
 Article 9 (Executor of Right of Deposit)
Any person eligible to become a right executor under Article 26 (2) of the Act shall be any of the following persons: <Amended by Presidential Decree No. 22493, Nov. 15, 2010; Presidential Decree No. 27534, Sep. 29, 2016>
1. Any bank authorized under the Banking Act;
2. Any financial institution established in accordance with a special Act;
3. Any other incorporated association established with authorization of the Financial Services Commission, including the Specialized Credit Finance Business Association under Article 62 of the Act (hereinafter referring to the "Specialized Credit Finance Business Association").
[This Article Wholly Amended by Presidential Decree No. 21674, Aug. 5, 2009]
 Article 9-2 (Standards, etc. for Registration of Value-Added Network Providers for Credit Cards, etc.)
(1) The facilities, equipment, and technical capacity referred to in Article 27-2 (1) of the Act shall meet each of the following standards:
1. A person who intends to operate value-added network business for credit cards, etc. shall have an adequate number of personnel with expertise and technical skills necessary for the value-added network business for credit cards, etc.;
2. A person who intends to operate value-added network business for credit cards, etc. shall be equipped with physical facilities and equipment, including each of the following electronic computer systems:
(a) Electronic computer systems and office equipment necessary for operating the intended value-added network business for credit cards, etc.;
(b) Security facilities for protecting electronic computer systems and safety of other physical equipment;
(c) Complementary facilities and equipment necessary for maintaining the continuity of business where an accident, such as power failure or fire, occurs.
(2) "A person who intends to provide services to small-sized member merchants not exceeding the scale specified by Presidential Decree" in the proviso to Article 27-2 (2) of the Act means a person who intends to make contracts on the installation of terminals and the provision of telecommunications services for authorizing and relaying payments by credit cards, etc. with not more than 30,000 credit card merchants.
(3) Further details about the standards prescribed in paragraph (1) shall be prescribed and publicly notified by the Financial Services Commission.
[This Article Newly Inserted by Presidential Decree No. 26423, Jul. 20, 2015]
 Article 9-3 (Procedures for Registration of Value-Added Network Business for Credit Cards, etc.)
(1) A person intends to register value-added network business for credit cards, etc. under Article 27-2 (1) of the Act, shall file an application for registration with the Financial Services Commission in the form prescribed and publicly notified by the Financial Services Commission.
(2) Further details about the methods of and procedures for filing applications for registration of value-added network business for credit cards, etc., the examination of applications for registration, etc. shall be prescribed and publicly notified by the Financial Services Commission.
[This Article Newly Inserted by Presidential Decree No. 26423, Jul. 20, 2015]
 Article 9-4 (Scope of Investors)
"Investors specified by Presidential Decree" in Article 27-2 (3) 1 and 2 of the Act means the following shareholders: <Amended by Presidential Decree No. 27534, Sep. 29, 2016>
1. A person who holds the largest number of outstanding voting shares issued by a value-added network provider, when the number of stocks held by him/her as principal and the number of stocks held by any person specially related to the principal on the principal's account are aggregated, regardless of whose name the account stands;
2. A person who holds at least 10/100 of outstanding voting stocks of a value-added network provider on his/her account, regardless of whose name the account stands;
2-2. Either of the following shareholders who have de facto control over important matters concerning the management of a value-added network provider by exercising the power to appoint or dismiss executive officers or by using other means:
(a) A shareholder who has appointed the representative director or the majority of directors, by himself/herself or under an arrangement, agreement, or such with other shareholders;
(b) A shareholder identified by the Financial Services Commission as a person who is deemed to have dominant control over the process of making decisions on important matters, such as business strategy or reorganization of a value-added network provider, or over the execution of business affairs;
3. A shareholder related to the person referred to in subparagraph 1.
[This Article Newly Inserted by Presidential Decree No. 26423, Jul. 20, 2015]
 Article 9-5 (Persons who Fail to Pay Debts)
"A person specified by Presidential Decree" in Article 27-2 (3) 3 of the Act means a person who incurred a charged-off loan on an institution referred to in any provision of Article 2 (3) 1, 3, and 4 and Article 5 (1) 1 through 18 of the Enforcement Decree of the Use and Protection of Credit Information Act and whose credit information has been subject to centralized control and utilization by the centralized credit information collection agency under Article 25 (2) 1 of the Credit Information Use and Protection Act, for whom three years have not passed since the date centralized control and utilization commenced.
[This Article Newly Inserted by Presidential Decree No. 26423, Jul. 20, 2015]
 Article 9-6 (Scope of Investing Corporations)
"A corporation specified by Presidential Decree" in Article 27-2 (3) 5 of the Act means a corporation which is a shareholder referred to in any subparagraph of Article 9-4.
[This Article Newly Inserted by Presidential Decree No. 26423, Jul. 20, 2015]
 Article 9-7 (Registration of Changes in Value-Added Network Business for Credit Cards, etc.)
(1) A person who intends to register any change in accordance with Article 27-2 (4) of the Act shall file an application for the registration of the change with the Financial Services Commission, which is prescribed and publicly notified by the Financial Services Commission.
(2) Further details about the methods, procedures, etc. for filing applications for registration of a change in value-added network business for credit cards, etc. and examination for the registration of changes shall be prescribed and publicly notified by the Financial Services Commission.
[This Article Newly Inserted by Presidential Decree No. 26423, Jul. 20, 2015]
 Article 9-8 (De-Registration of Value-Added Network Business for Credit Cards, etc.)
(1) A person who intends to apply for the de-registration in accordance with Article 27-2 (5) of the Act shall file an application for de-registration with the Financial Services Commission, which is prescribed and publicly notified by the Financial Services Commission.
(2) Further details about the methods, procedures, etc. for filing applications de-registration of value-added network business for credit cards, etc. shall be prescribed and publicly notified by the Financial Services Commission.
[This Article Newly Inserted by Presidential Decree No. 26423, Jul. 20, 2015]
 Article 9-9 (Procedures for Registration of Credit Card Terminals)
(1) A Person who intends to register a credit card terminal in accordance with Article 27-4 (1) of the Act shall file an application for registration with the Financial Services Commission, which is prescribed and publicly notified by the Financial Services Commission.
(2) Further details about the methods, procedures, etc. for filing applications for registration of a credit card terminal shall be prescribed and publicly notified by the Financial Services Commission.
[This Article Newly Inserted by Presidential Decree No. 26423, Jul. 20, 2015]
 Article 9-10 (Business of Value-Added Network Providers for Petty, Small and Medium Credit Card Merchants)
(1) "Business affairs prescribed by Presidential Decree, such as advice, education, etc." in Article 27-5 (2) 2 of the Act means the following services:
1. Conducting consulting and education services for petty, small and medium credit card merchants;
2. Installing and managing credit card terminals under Article 27-4 (1) and (2) for petty, small and medium credit card merchants.
(2) "Business affairs prescribed by Presidential Decree, such as advice, education, etc." in Article 27-5 (3) of the Act means the services specified in paragraph (1).
[This Article Newly Inserted by Presidential Decree No. 27534, Sep. 29, 2016]
 Article 9-11 (Designation of Value-Added Network Providers for Petty, Small and Medium Credit Card Merchants)
(1) A person who wishes to be designated as a value-added network provider who can provide telecommunications service to petty, small and medium credit card merchants pursuant to Article 27-5 (1) of the Act shall meet each of the following requirements:
1. The person shall be a value-added network provider;
2. The person shall have no record of a warning or severer sanction imposed upon him/her under any finance-related statute during the latest three years;
3. The person shall have a sound financial standing and social credibility;
4. The person shall have specialized human resources and physical facilities for performing the services specified in Article 9-10 (1).
(2) In any of the following cases, the head of the Specialized Credit Finance Business Association (hereinafter referred to as the "head of the Specialized Credit Finance Business Association") may revoke the designation of a value-added network provider who was designated under Article 27-5 (1) of the Act: Provided, That the designation must be revoked in cases of subparagraph 1:
1. If a value-added network provider was designated by fraud or other improper means;
2. If a value-added network provider violates an order issued or a measure taken under any finance-related statute;
3. If a value-added network provider does not perform the services specified in Article 9-10 (1) in good faith;
4. If it is deemed that a value-added network provider is incompetent to continue the services under Article 9-10 (1), due to deterioration of its financial structure or any other event.
(3) The head of the Specialized Credit Finance Business Association may establish and operate a committee for selecting value-added network providers for petty, small and medium credit card merchants (hereinafter referred to as the "selection committee") so as to deliberate on the designation of value-added network providers and the revocation of such designation under Article 27-5 (1) of the Act. In such cases, the head of the Specialized Credit Finance Business Association may establish regulations necessary for establishing and operating the selection committee.
[This Article Newly Inserted by Presidential Decree No. 27534, Sep. 29, 2016]
 Article 10 (Utilization of Various Funds)
(1) Any facility leasing business entity who intends to borrow funds pursuant to Article 29 of the Act shall submit documents verifying that a person concluding a contract for facility leasing, etc. (hereinafter referred to "leasee") is a person eligible for loans of the funds, and a written contract of facility leasing, etc. to a loan transaction institution.
(2) In cases falling under paragraph (1), a facility leasing business entity may borrow loans by means of comprehensively determining the amount of loans and the terms of use, etc. in consultation with a loan transaction institution.
[This Article Wholly Amended by Presidential Decree No. 21674, Aug. 5, 2009]
 Article 11 (Import of Medical Appliances)
Any facility leasing business entity who intends to obtain permission or report under Article 42 (1) of the Pharmaceutical Affairs Act in order to import medical appliances which are the specific goods under Article 31 (1) of the Act shall attach a written contract for facility leasing, etc. to the application or report.
[This Article Wholly Amended by Presidential Decree No. 21674, Aug. 5, 2009]
 Article 12 (Special Case concerning Administrative Disposition)
Any facility leasing business entity who intends to be subject to special cases concerning administrative disposition under Article 32 of the Act shall submit a written contract for facility leasing, etc. and documents verifying that the leasee meets the requirements necessary for the relevant disposition.
[This Article Wholly Amended by Presidential Decree No. 21674, Aug. 5, 2009]
 Article 13 (Special Case concerning Registration)
Any facility leasing business entity who intends to make registration of a ship or aircraft in his/her possession pursuant to Article 33 (2) of the Act shall attach, to an application, a written contract for facility leasing, etc. and documents evidencing that the leasee meets the requirements necessary for such registration.
[This Article Wholly Amended by Presidential Decree No. 21674, Aug. 5, 2009]
 Article 13-2 (Facility Leasing to Small or Medium Enterprises)
The rate of the facility leasing to small or medium enterprises under Article 37 of the Act shall be not less than 30/100 of the annual execution amount of the facility leasing, other than the facility leasing, etc. under each of the following subparagraphs:
1. Facility leasing, etc. to public institutions under the Act on the Management of Public Institutions and non-profit organizations;
2. Facility leasing, etc. to another facility leasing business entity for operating facility leasing to a leasee;
3. Facility leasing, etc. of passenger vehicles;
4. Facility leasing, etc. of goods manufactured by small and medium enterprises.
[This Article Wholly Amended by Presidential Decree No. 21674, Aug. 5, 2009]
 Article 14 (Scope of Funds)
"Funds prescribed by Presidential Decree" in Article 42 of the Act means funds under Article 4 (1) of the Act on the Special Measures for the Promotion of Venture Businesses.
[This Article Wholly Amended by Presidential Decree No. 21674, Aug. 5, 2009]
 Article 15 (Sharing Administrative information)
Where necessary to perform business affairs specified in Article 46 (1) of the Act, a specialized credit finance business company may verify the administrative information specified in attached Table 1-4 by sharing administrative information prescribed in Article 36 (2) of the Electronic Government Act. In such cases, it shall obtain prior consent from the data subject defined in subparagraph 3 of Article 2 of the Personal Information Protection Act.
[This Article Newly Inserted by Presidential Decree No. 29111, Aug. 21, 2018]
 Article 16 (Business Affairs)
(1) "Business affairs, which are prescribed by Presidential Decree" in Article 46 (1) 5 of the Act means the following business affairs: <Amended by Presidential Decree No. 22196, Jun. 11, 2010; Presidential Decree No. 27534, Sep. 29, 2016>
1. Purchase of credit held by other financial companies (referring to the institutions prescribed in each subparagraphs of Article 38 of the Act on the Establishment, etc. of Financial Services Commission) or securities issued based thereon with respect to the business affairs under Article 46 (1) 1 through 4 of the Act;
2. Payment guarantee;
3. Deleted; <by Presidential Decree No. 27534, Sep. 29, 2016>
4. Other business affairs prescribed by Ordinance of the Prime Minister as related to the specialized credit finance business and loan business.
(2) "Financial business affairs prescribed by Presidential Decree" in Article 46 (1) 6-2 of the Act means the following business affairs: <Newly Inserted by Presidential Decree No. 27534, Sep. 29, 2016>
1. Collective investment business under the Financial Investment Services and Capital Markets Act;
2. Investment advisory business under the Financial Investment Services and Capital Markets Act;
3. Trust business under the Financial Investment Services and Capital Markets Act;
4. Investment brokerage business for collective investment securities under the Financial Investment Services and Capital Markets Act;
5. Business affairs assigned to the executive partner of a private equity fund under the Financial Investment Services and Capital Markets Act;
6. Business affairs of an insurance agency under the Insurance Business Act;
7. Business affairs related to foreign exchange under the Foreign Exchange Transactions Act;
8. Management of securitized assets under the Asset-Backed Securitization Act;
9. Electronic financial business under the Electronic Financial Transactions Act;
10. Business affairs assigned to the executive partner of a private equity fund for improving corporate structure under Article 20 of the Industrial Development Act;
11. Brokerage or referral of loans.
[This Article Wholly Amended by Presidential Decree No. 21674, Aug. 5, 2009]
 Article 17 (Operating Standards for Loan Business)
(1) The amount of claims extended in connection with a credit card business and incidental business affairs under Article 13 of the Act shall be excluded from total assets in accordance with Article 46 (2) of the Act. <Newly Inserted by Presidential Decree No. 27534, Sep. 29, 2016>
(2) When calculating the amount of claims arising from loan business prescribed in Article 46 (1) 3 of the Act in accordance with Article 46 (2) of the Act, the following claims shall be excluded: <Amended by Presidential Decree No. 27534, Sep. 29, 2016; Presidential Decree No. 29111, Aug. 21, 2018>
1. Claims arising from loans lent to enterprises: Provided, That claims arising from loans lent to any credit service provider or loan broker prescribed in the Act on Registration of Credit Business and Protection of Finance Users shall be excluded;
2. Claims arising from loans re-lent to a debtor by changing the due date, interest rates, and other conditions of the loans for readjustment of claims against the debtor;
3. Mortgage-backed bonds prescribed in subparagraph 3 of Article 2 of the Korea Housing Finance Corporation Act;
4. Claims arising from financing provided to credit card holders prescribed in Article 13 (1) 1 of the Act;
5. Claims arising from loans lent as funds for purchasing a motor vehicle in any manner similar to installment financing;
6. Claims corresponding to 20/100 of the claims arising from loans that meet the criteria determined and publicly notified by the Financial Services Commission, such as interest rates, of personal credit loans of debtors whose personal credit ratings (referring to the ratings set by a person who has obtained permission pursuant to Article 4 (2) of the Credit Information Use and Protection Act to engage in the credit inquiry business prescribed in Article 4 (1) 1 of the same Act) are not higher than the prescribed ratings as of the date of application for the loans.
(3) The amount of claims calculated pursuant to Article 46 (2) of the Act shall be the average balance of the credit incurred, during the relevant quarter, as at the end of each quarter. <Newly Inserted by Presidential Decree No. 27534, Sep. 29, 2016>
(4) When the ratio of amount of claims to total assets exceeds the proportion prescribed in Article 46 (2) of the Act due to a decrease in the total assets without increasing the amount of claims, a specialized credit finance business company shall comply with the proportion prescribed in Article 46 (2) of the Act within a year from the date such excess occurs. <Newly Inserted by Presidential Decree No. 27534, Sep. 29, 2016>
[This Article Wholly Amended by Presidential Decree No. 21674, Aug. 5, 2009]
 Article 17-2 (Restriction on Incidental Business Affairs, Public Notice thereof, etc.)
(1) "Case prescribed by Presidential Decree" in Article 46-2 (2) 4 of the Act means any of the following cases:
1. Where any of the incidental business affairs specified in Article 46 (1) 7 of the Act (hereafter referred to as "incidental business affairs" in this Article) is a type of business suitable for small and medium enterprises as defined in subparagraph 11 of Article 2 of the Act on the Promotion of Collaborative Cooperation between Large Enterprises and Small-Medium Enterprises;
2. Where an incidental business affair is any of the business affairs specified and publicly notified by the Financial Services Commission as those in which it is not advisable for a specialized credit finance business company to engage.
(2) Upon receipt of a report on incidental business affairs under Article 46-2 (1) of the Act, the Financial Services Commission shall give public notice of the following matters on its website within seven days from the date of filing the report:
1. Name of the specialized credit finance business company;
2. Date of filing the report;
3. Details of reported business affairs;
4. Expected date or the date of commencing the reported business affairs.
(3) When the Financial Services Commission issues an order for restriction or correction under Article 46-2 (2) of the Act, it shall give public notice of the details of and grounds for the order through its website within seven days from the date of order pursuant to Article 46-2 (4) of the Act.
[This Article Newly Inserted by Presidential Decree No. 27534, Sep. 29, 2016]
 Article 17-3 (Accounting of Concurrently-Operated Business Affairs and Incidental Business Affairs)
If the sales from other financial business affairs or incidental business affairs of a credit card company under Article 46 (1) 6-2 or 7 are not less than 5/100 of the sum of the following profits, the credit card company shall manage profits and expenses of the relevant business affairs in accounts, separately from the accounts of the credit card business pursuant to Article 46-3 of the Act:
1. Merchant fees received;
2. Interest and fees received in connection with card assets;
3. Annual fees received.
[This Article Newly Inserted by Presidential Decree No. 27534, Sep. 29, 2016]
 Article 18 (Ways of Raising Funds)
(1) "Ways prescribed by Presidential Decree" in Article 47 (1) 5 of the Act shall be as follows:
1. Borrowing and issuance of foreign currency securities, which are conducted by being registered as a foreign exchange agency under Article 8 of the Foreign Exchange Transactions Act;
2. Transfer of credit held with respect to the business affairs under Article 46 (1) 1 through 4 of the Act;
3. Issuance of securities based on the credit held with respect to the business affairs under Article 46 (1) 1 through 4 of the Act.
(2) Article 19 (1) shall apply mutatis mutandis to where a specialized credit finance business company raises funds by the method prescribed by paragraph (1) 3.
[This Article Wholly Amended by Presidential Decree No. 21674, Aug. 5, 2009]
 Article 19 (Restriction on Issuance, etc. of Corporate Bonds or Bills)
(1) For the purpose of Article 47 (2) of the Act, no specialized credit finance business company shall issue corporate bonds or bills, or sell securities held in a manner falling under each of the following subparagraphs:
1. Issuance or sale to an individual;
2. Issuance or sale to unspecified multiple corporations by public offering, sales on the counter or any other means similar thereto.
(2) Paragraph (1) shall not apply to the issuance of corporate bonds or bills by the methods falling under any of the following subparagraphs:
1. Issuance of corporate bonds through underwriting of the person who obtains authorization of investment trading business in accordance with the Financial Investment Services and Capital Markets Act;
2. Issuance of bills through underwriting, discount, or arrangement by a merchant bank under the Financial Investment Services and Capital Markets Act or an investment broker or investment trader under the same Act.
[This Article Wholly Amended by Presidential Decree No. 21674, Aug. 5, 2009]
 Article 19-2 (Scope, etc. of Persons in Special Relationship with Major Stockholders)
(1) "Specially-related persons of the major shareholders as prescribed by Presidential Decree" in Articles 49-2 (1) and 50 (1) of the Act means persons having a special relationship with the largest stockholder, respectively: Provided, That the same shall not apply to an affiliated company, which becomes a new affiliated company of a specialized credit finance business company acquiring stocks of any company other than the affiliated company for the purpose of merging and which meets the criteria prescribed and publicly notified by the Financial Services Commission. <Amended by Presidential Decree No. 27534, Sep. 29, 2016>
(2) "The proportion prescribed by Presidential Decree" in Article 50 (1) of the Act means 150/100 of equity capital. <Newly Inserted by Presidential Decree No. 27534, Sep. 29, 2016>
[This Article Newly Inserted by Presidential Decree No. 20549, Jan. 18, 2008]
 Article 19-3 (Amount of Transactions with Major Stockholders, etc.)
(1) "Amount prescribed by Presidential Decree" in the former part of Article 49-2 (2) and the former part of Article 50 (2) of the Act means the amount for a single transaction determined and publicly notified by the Financial Services Commission (hereafter referred to as "amount for a single transaction" in this Article), which is the lesser of the amount equivalent to 10/10,000 of equity capital or one billion won: Provided, That in cases of stock acquisition, the amount acquired in the securities market, alternative trading systems, or similar markets located in a foreign country under the Financial Investment Services and Capital Markets Act shall not be counted toward the amount for a single transaction. <Amended by Presidential Decree No. 24697, Aug. 27, 2013; Presidential Decree No. 27534, Sep. 29, 2016>
(2) "Transactions prescribed by Presidential Decree" in the former part of Article 49-2 (2) of the Act means the transaction made to acquire corporate bonds issued by offering or sale under Article 9 (7) or (9) of the Financial Investment Services and Capital Markets Act. <Amended by Presidential Decree No. 27534, Sep. 29, 2016>
[This Article Wholly Amended by Presidential Decree No. 21674, Aug. 5, 2009]
 Article 19-4 (Reporting and Public Announcement of Transactions with Major Stockholders)
(1) "Matters prescribed by Presidential Decree" in Articles 49-2 (4) and 50 (4) of the Act means the following matters, respectively: <Amended by Presidential Decree No. 20653, Feb. 29, 2008; Presidential Decree No. 27534, Sep. 29, 2016>
1. Scale of the credit extension to major stockholders as at the end of each quarter;
2. Amount of increase and decrease of the credit extension and terms and conditions of transaction of the credit extension during each quarter;
3. Amount of stocks acquired by major stockholders as at the end of each quarter;
4. Amount of increase and decrease of the stocks held and price of acquisition of the stocks possessed during each quarter;
5. Other matters prescribed by the Financial Services Commission.
(2) Any specialized credit finance business company shall report and publicly notify the matters under paragraph (1) within one month from the end of each quarter.
[This Article Newly Inserted by Presidential Decree No. 20549, Jan. 18, 2008]
 Article 19-5 (Grace Period for Credit Extensions and Holding of Stocks in Excess of Limits)
"Period prescribed by Presidential Decree" in Articles 49-2 (5) and 50 (5) of the Act means one year, respectively. <Amended by Presidential Decree No. 27534, Sep. 29, 2016>
[This Article Newly Inserted by Presidential Decree No. 20549, Jan. 18, 2008]
 Article 19-6 (Extent of Exercise of Undue Influence of Major stockholders)
"Acts prescribed by Presidential Decree" in Article 50-2 (5) 3 of the Act means an act falling under any of the following subparagraphs:
1. Demanding a specialized credit finance business company to commit an offence;
2. Demanding any person to engage in a transaction with the major stockholder or any third party under conditions different from common terms of transaction with respect to interest rate, commission or security.
[This Article Wholly Amended by Presidential Decree No. 21674, Aug. 5, 2009]
 Articles 19-7 through 19-12 Deleted. <by Presidential Decree No. 27414, Jul. 28, 2016>
 Article 19-13 (Restrictions on Transactions with Major Stockholders, etc.)
"Cases as further prescribed by Presidential Decree" in Article 50-8 (2) of the Act, with the exception of its subparagraphs, means any of the following cases: <Amended by Presidential Decree No. 20653, Feb. 29, 2008; Presidential Decree No. 21765, Oct. 1, 2009; Presidential Decree No. 24697, Aug. 27, 2013>
1. Where the liabilities of a major stockholder (limited to a company, including a specially-related party, which is a company; hereafter the same shall apply in this Article) exceed its assets;
2. Where a major stockholder’s credit risk is rated below the standard requirements prescribed by the Financial Services Commission as a result of an appraisal of the relevant major stockholder’s credit risk performed by the financial institution which has the largest portion of credit extended to the major stockholder (excluding a financial institution whose major stockholder is the major stockholder concerned) according to the asset soundness classification criteria prescribed by the Financial Services Commission;
3. Where a major stockholder receives non-investment grade ratings from at least two credit rating agencies from among credit rating agencies stipulated in the Financial Investment Services and Capital Markets Act.
[This Article Newly Inserted by Presidential Decree No. 20549, Jan. 18, 2008]
 Article 19-14 (Advertising)
(1) "Business affairs prescribed by Presidential Decree" in the main sentence of Article 50-9 (1) of the Act means the following business affairs: <Newly Inserted by Presidential Decree No. 27534, Sep. 29, 2016>
1. Business affairs under Article 46 (1) 4 of the Act;
2. Business affairs specified and publicly notified by the Financial Services Commission among incidental business affairs specified in Article 46 (1) 7 of the Act.
(2) "Matters prescribed by Presidential Decree" in Article 50-9 (1) 4 of the Act means instructing a financial consumer to read a product description and terms and conditions before entering into a contract for a credit financial product prescribed in the said Article 50-9 (1) (hereinafter referred to as "credit financial product").
(3) "Making an advertisement specified by Presidential Decree" in Article 50-9 (2) 4 of the Act means any of the following acts:
1. Advertising terms of transactions as if they were definite or by using expressions tending to mislead users to believe they are applied to every person, although such terms can be differently applied depending on the other party, etc. to a transaction;
2. Advertising by using deceptive or misleading expressions, such as omitting or understating the contents disadvantageous to the users of credit financial products or emphasizing only benefit;
3. Making a false representation of, overstating or omitting matters having grave influence on the rights and duties of financial consumers, in the contents of the relevant credit financial product, or advertising by using ambiguous expressions.
(4) A specialized credit finance business company and a concurrent loan service provider (hereinafter referred to as "specialized credit finance business company, etc.") shall comply with the standards for advertising methods and procedures specified in attached Table 1-5 in advertising credit financial products. <Amended by Presidential Decree No. 27534, Sep. 29, 2016; Presidential Decree No. 29111, Aug. 21, 2018>
(5) The Financial Services Commission shall determine and publicly notify detailed standards for indications of advertising, other than for matters provided for in paragraphs (1) through (4). <Amended by Presidential Decree No. 27534, Sep. 29, 2016>
[This Article Newly Inserted by Presidential Decree No. 24219, Dec. 4, 2012]
 Article 19-15 (Products subject to Autonomous Deliberation on Advertisements)
"Credit finance product prescribed by Presidential Decree" in Article 50-10 (1) of the Act means any of the following credit finance products for individuals:
1. Financial products handled regarding the business affairs specified in Article 46 (1) 1 of the Act;
2. Financial products handled regarding the business affairs specified in Article 46 (1) 3 of the Act (including business affairs under Article 13 (1) 1 of the Act);
3. Financial products handled regarding the business affairs specified and publicly notified by the Financial Services Commission, among incidental business affairs specified in Article 46 (1) 7 of the Act.
[This Article Newly Inserted by Presidential Decree No. 27534, Sep. 29, 2016]
 Article 19-16 (Duty to Explain, etc.)
(1) "Finance user prescribed by Presidential Decree" in Article 50-11 (1) of the Act means a debit card holder or a prepaid card holder.
(2) "Important matters prescribed by Presidential Decree" in Article 50-11 (1) of the Act means the following matters:
1. Annual fee and additional services;
2. Use limit;
3. Term of loan;
4. Amount of repayment depending upon the method of repayment;
5. Various fees, fee rates, and incidental expenses;
6. Matters concerning cancellation or termination of the contract for the product;
7. Other matters specified and publicly notified by the Financial Services Commission as those that might significantly affect reasonable judgment of finance users or the value of the relevant financial product.
(3) "Method prescribed by Presidential Decree" in Article 50-11 (2) of the Act means any of the following methods:
1. Electronic mail or any other similar electronic communications means;
2. Post mail;
3. An automatic telephone answering system.
[This Article Newly Inserted by Presidential Decree No. 27534, Sep. 29, 2016]
 Article 19-17 (Measures for Protecting Employees Providing Services to Customers)
"Measures prescribed by Presidential Decree, such as legal measures necessary for protecting the employees" in Article 50-12 (1) 4 means the following measures:
1. Where it is found that a customer's verbal abuse, sexual harrassment, violence, or such any similar offense (hereinafter referred to as "verbal abuse or any similar offense") violates any criminal penalty provision of the relevant Act and an employee who has sustained an injury by such conduct requests a measure to be taken: Filing a criminal complaint with the relevant investigative agency or any similar authority;
2. Where it is deemed necessary to take a measure, considering the degree of damage of an employee who has sustained an injury by a customer's verbal abuse or any similar offense, the possibility of infliction of injuries upon the employee and other employees in the future, etc., although the customer's verbal abuse or any similar offense does not violate any criminal penalty provision of the relevant Act: Requesting the relevant investigative agency or any similar authority to take necessary measures;
3. Administrative and procedural assistance to employees in filing a criminal complaint against a customer who verbally abused or committed any similar offence to the relevant investigative agency or any similar authority, filing a claim for damages, and in taking other measures on their own;
4. Conducting educational programs for employees's code of conduct to prevent customers' verbal abuse and other similar offenses or to respond to such abuse and offenses;
5. Other measures necessary for protecting employees from customers' verbal abuse and other similar offenses, which are prescribed and publicly notified by the Financial Services Commission.
[This Article Newly Inserted by Presidential Decree No. 27534, Sep. 29, 2016]
 Article 19-18 (Grounds for Dispositions against Specialized Credit Finance Business Companies, etc. and Executives and Employees thereof)
"Cases prescribed by Presidential Decree" in Article 53 (4) of the Act and in subparagraph 57 in attached Table means any the following cases: <Amended by Presidential Decree No. 29111, Aug. 21, 2018>
1. Where a specialized credit finance business company determines merchant fee rates, in violation of Article 18-3 (1) of the Act;
2. Where a specialized credit finance business company fails to apply preferential fee rates, in violation of Article 18-3 (3) of the Act;
3. Where a specialized credit finance business company breaches the duties related to the matters to be observed in collecting claims under subparagraph 8 of Article 24 of the Act;
4. Where a specialized credit finance business company violates the standards for protection and management of credit information under subparagraph 10 of Article 24 of the Act and Article 7-2 (2) 1 of this Decree;
5. Where a specialized credit finance business company breaches the duties related to the maintenance of order in soliciting credit card members under subparagraph 10 of Article 24 of the Act and Article 7-2 (2) 4 of this Decree;
5-2. Where a specialized credit finance business company fails to register credit card terminals with the Financial Services Commission, in violation of Article 27-4 (1) of the Act;
6. Where a specialized credit finance business company exceeds the maximum ratio of total assets to equity capital, in violation of Article 48 of the Act.
[This Article Newly Inserted by Presidential Decree No. 24219, Dec. 4, 2012]
 Article 19-19 (Management Guidelines)
The management guidelines under Article 53-3 (1) of the Act shall include the following matters: <Amended by Presidential Decree No. 27414, Jul. 28, 2016>
1. Matters relating to the standards for equity capital ownership;
2. Matters relating to the standards for the classification and management of assets, such as loans held by a specialized credit finance business company;
3. Matters relating to the standards for accumulating allowances and reserves;
4. Matters relating to the standards for risk management and the standards for accounting under Article 27 (1) of the Act on Corporate Governance of Financial Companies.
[This Article Wholly Amended by Presidential Decree No. 21674, Aug. 5, 2009]
 Article 19-20 (Matters to be Reported)
(1) Where any cause prescribed by the subparagraphs of Article 54 (2) of the Act exists, such cause shall be reported to the Financial Services Commission within seven days from the date such cause arises.
(2) In cases falling under Article 54 (2) 3 of the Act, where the relevant largest stockholder obtains approval as a controlling stockholder pursuant to the main sentence of Article 31 (1) and paragraph (2) of the same Article, the report shall be deemed made, notwithstanding Article 54 (2) of the Act. <Amended Presidential Decree No. 27414, Jul. 28, 2016>
[This Article Wholly Amended by Presidential Decree No. 21674, Aug. 5, 2009]
 Article 19-21 (Planning for Information Technology Sector)
The provisions of Article 11-2 (2) through (4) of the Enforcement Decree of the Electronic Financial Transactions Act, shall apply mutatis mutandis to the matters that shall be included in plans for the information technology sector referred to in Article 54-4 (3) of the Act, and the timing, methods, etc. for the submission of such plans.
[This Article Newly Inserted by Presidential Decree No. 26423, Jul. 20, 2015]
 Article 19-22 (Protection of Credit Information)
(1) Article 19 of the Credit Information Use and Protection Act and Article 16 of the Enforcement Decree of the same Act shall apply mutatis mutandis to detailed measures for the protection and management of credit information by specialized credit finance business companies and value-added network providers under Article 54-5 (1) of the Act. In such cases, "providers and users of credit information" shall be construed as "specialized credit finance business companies, etc. and value-added network providers."
(2) Article 32 (1) of the Use and Protection of Credit Information Act and Article 28 (2) and (3) of the Enforcement Decree of the same Act shall apply mutatis mutandis to the methods, procedures, etc. applicable where a specialized credit finance business company or value-added network provider shall obtain consent from the owner of credit information in accordance with Article 54-5 (2) of the Act. In such cases, "providers and users of credit information" shall be construed as "specialized credit finance business companies, etc. and value-added network providers," and "personal credit information" as "credit information," respectively. <Amended by Presidential Decree No. 26517, Sep. 11, 2015>
[This Article Newly Inserted by Presidential Decree No. 26423, Jul. 20, 2015]
 Article 20 (Grounds for Demand for Designation as Auditor)
"Where a specialized credit finance business company falls under any cause as determined by Presidential Decree such as the violation of this Act" in Article 56 of the Act means any case falling under any of the following subparagraphs:
1. Where the Act or the order issued by the Financial Services Commission under the Act is violated for the latest three years;
2. Where the Financial Services Commission recognizes that it is necessary to designate an auditor as a result of the inspection under Article 53-2 of the Act.
[This Article Wholly Amended by Presidential Decree No. 21674, Aug. 5, 2009]
 Article 20-2 (Entities subject to Suspension of Business Operations)
"Business affairs prescribed by Presidential Decree" in the main sentence of Article 57 (1) of the Act means the business affairs referred to in Article 16 (1) 1 and 2 of Article 16.
[This Article Newly Inserted by Presidential Decree No. 27534, Sep. 29, 2016]
 Article 21 (Standards, etc. for Suspension of Business and Imposition of Penalty Surcharges)
(1) The period of suspension of business or the amount of penalty surcharges according to the types of violations subject to an order for suspension of business or imposition of penalty surcharges pursuant to Article 57 (1) or Article 58 (1) through (3) of the Act shall be as prescribed in attached Table 2.
(2) The Financial Services Commission may aggravate or mitigate sentences within the extent of a half of the period of suspension of business or the amount of penalty surcharges imposed in lieu of the order for suspension of business under paragraph (1), taking into account the severity and frequency of violations, etc.: Provided, That even in cases of the aggravation, the total period of suspension shall not exceed six months, and the total amount of penalty surcharges shall exceed 100 million won. <Amended by Presidential Decree No. 28389, Oct. 17, 2017>
(3) The amount of a penalty surcharge imposed under Article 58 (1), (3), and (4) of the Act shall be as prescribed in attached Table 3. <Amended by Presidential Decree No. 28389, Oct. 17, 2017>
(4) Except as otherwise provided for in this Decree, detailed matters necessary for imposing a penalty surcharge, etc. shall be prescribed and publicly notified by the Financial Services Commission. <Newly Inserted by Presidential Decree No. 22196, Jun. 11, 2010>
[This Article Wholly Amended by Presidential Decree No. 21674, Aug. 5, 2009]
 Article 22 (Imposition and Payment of Penalty Surcharges)
(1) When the Financial Services Commission intends to impose penalty surcharges under the provisions of Article 58 (1) through (4) of the Act, it shall notify the payment of the penalty surcharges, in writing, specifying the types of offences and the amount of the relevant penalty surcharges. <Amended by Presidential Decree No. 22196, Jun. 11, 2010>
(2) Any person who is notified pursuant to paragraph (1) shall pay the penalty surcharge to a receiving agency designated by the Financial Services Commission within 20 days of receipt of such notification: Provided, That when the person can not pay the penalty surcharge within the specified period due to natural disasters or any other inevitable ground, the person shall pay his/her penalty surcharge within seven days from the date when such reason is resolved.
(3) The receiving agency that receives penalty surcharges pursuant to paragraph (2) shall issue a receipt to the payer.
(4) When the receiving agency receives penalty surcharges pursuant to paragraph (2), it shall report such fact to the Financial Services Commission without delay.
(5) The penalty surcharges shall not be paid in installments.
[This Article Wholly Amended by Presidential Decree No. 21674, Aug. 5, 2009]
 Article 22-2 (Entrustment of Dispositions on Default)
(1) The Financial Services Commission shall entrust business affairs related to disposition on default to the Commissioner of the National Tax Service pursuant to Article 58 (7) of the Act in writing, accompanying each of the following documents:
1. Resolution of the Financial Services Commission;
2. Resolution and notice of tax collection;
3. Demand notice for payment.
(2) When the business affairs related to disposition on default entrusted pursuant to paragraph (1) is completed, the Commissioner of the National Tax Service shall notify the Financial Services Commission of the date of completion and other necessary matters within 30 days from the date of completion in writing.
[This Article Wholly Amended by Presidential Decree No. 21674, Aug. 5, 2009]
 Article 23 (Interest Rate of Additional Dues on Refund)
"Interest rate of additional dues prescribed by Presidential Decree" in Article 58-4 of the Act means an interest rate prescribed and publicly notified by the Financial Services Commission in consideration of the interest rates of term deposits of the banks (which are authorized by the Financial Services Commission for the banking business).
[This Article Newly Inserted by Presidential Decree No. 22195, Jun. 11, 2010]
 Article 23-2 (Donation of Unused Amounts, etc. of Prepaid Cards)
(1) "Amount prescribed by Presidential Decree" in the former part of Article 68 (3) of the Act means 50,000 won.
(2) When a credit card company gives notice of donation to the original right holder of the unused amount, etc., of a prepaid card under Article 68 (3) of the Act (excluding the unused amount of an unregistered prepaid card; hereinafter referred to as "unused amount, etc. of a prepaid card") pursuant to Article 68 (3) of the Act, it shall include the following matters in the notice:
1. The amount of donation;
2. The scheduled date of donation;
3. The donee;
4. The fact that the original right holder is deemed to consent to the donation under Article 68 (3) of the Act, if he/she does not raise an objection to the notice of donation within 30 days;
5. Other matters specified and publicly notified by the Financial Services Commission, which shall be notified to the original right holder regarding donation.
(3) The notice of donation shall be given by any of the following means:
1. A document;
2. An electronic document under subparagraph 1 of Article 2 of the Framework Act on Electronic Documents and Transactions;
3. Electronic mail;
4. Telephone.
(4) When a credit card company intends to obtain consent from the original right holder of the unused amount, etc. of a prepaid card under Article 68 (3) of the Act, it shall obtain such consent by any of the following means: Provided, That the credit card company may consider that the original right holder consents the donation under Article 68 (3) of the Act, if the original right holder does not raise an objection to the notice of donation within 30 days:
1. Affixing a signature (including digital signature under subparagraph 2 of Article 2 of the Digital Signature Act);
2. Printing the name and affixing a seal;
3. Recording conversations;
4. Recording with an automatic telephone answering system.
[This Article Newly Inserted by Presidential Decree No. 27534, Sep. 29, 2016]
 Article 23-3 (Entrustment of Business Affairs)
(1) The Financial Services Commission shall entrust the following business affairs to the Governor of the Financial Supervisory Service under the Act on the Establishment, etc. of Financial Services Commission (hereafter referred to as the "Governor of the Financial Supervisory Service" in this Article), pursuant to Article 69-2 (1) of the Act: <Amended by Presidential Decree No. 22196, Jun. 11, 2010; Presidential Decree No. 23643, Feb. 28, 2012; Presidential Decree No. 24219, Dec. 4, 2012; Presidential Decree No. 24759, Sep. 17, 2013; Presidential Decree No. 26178, Mar. 30, 2015; Presidential Decree No. 26423, Jul. 20, 2015; Presidential Decree No. 27111, Apr. 26, 2016; Presidential Decree No. 27534, Sep. 29, 2016; Presidential Decree No. 28389, Oct. 17, 2017>
1. Receipt of an application for registration, notification of whether the application is registered or not, and revocation of registration under Articles 3, 7, and 10 of the Act;
2. Examination to determine if an applicant meets the requirements for the approval and registration of the specialized credit finance business under Article 6 (1) and (2) of the Act;
3. Deleted; <by Presidential Decree No. 27414, Jul. 28, 2016>
4. Evaluation of whether he/she meets the requirements under the proviso to Article 6 (2) of the Act;
5. Provision of giving an opportunity to submit opinions under Article 14-4 (3) of the Act and notification to the solicitors under paragraph 4 of the same Article;
6. Examination under Article 14-5 (4) of the Act or request for submission of the matters under Article 6-8 (2) hereof;
7. Receipt of reports under Article 14-5 (5) of the Act;
7-2. Inspections under Article 16-2 (3) of the Act and requests for submitting documents, etc. under Article 6-10 (2) of this Decree;
7-3. Confirmation under Article 18-2 (2) of the Act and requests for submitting data therefor, and requests for providing data under paragraph (3) of the same Article;
7-4. Acceptance of applications for registration, registration of a change, or cancellation of registration under Article 27-2 of the Act, notification of a decision on registration or registration of a change, and cancellation of registration;
7-5. Receipt of reports under Article 46-2 (1) of the Act, issuance of orders under Article 46-2 (2) of the Act, and public notification under Article 46-2 (4) of the Act;
7-6. Receipt and review of detailed plans for approval under Articles 49-2 (7) and 50 (7) of the Act;
7-7. Demand for submission of data under Article 50-8 (1) of the Act;
8. Demand for and receipt of the reports under Article 53 (2) of the Act;
8-2. Establishment of the criteria for management guidance regarding the matters determined and publicly announced by the Financial Services Commission, in consideration of the occurrence of urgent cases, etc., from among matters under the subparagraphs of Article 53-3 (1) of the Act;
9. Receipt of reports under Article 54 of the Act;
9-2. Formulation of the detailed standards for the types and scope of the public disclosure of management performance under Article 54-2 (2) of the Act;
10. Receipt of reports under the main body of Article 54-3 (1), with the exception of its subparagraphs, and Article (4) of the Act, notification of financial standard terms and conditions or standard agreement forms to the Fair Trade Commission under Article 54-3 (5), and issuance of orders under Article 54-3 (7);
10-2. Decision on detailed matters necessary for the return of annual fees under Article 6-11 (6);
10-3. and 11. Deleted; <by Presidential Decree No. 27414, Jul. 28, 2016>
12. Formulation of the detailed standards concerning management guidelines under Article 19-19;
12-2. Receipt of plans submitted for the information technology sector under Article 54-4 (3) of the Act and Article 19-21 of this Decree;
13. Formulation of conditions under which the designation of auditors is deemed necessary under subparagraph 2 of Article 20.
(2) Pursuant to Article 69-2 (2) of the Act, the Financial Services Commission shall entrust the following business affairs to the head of the Specialized Credit Finance Business Association: <Amended by Presidential Decree No. 24219, Dec. 4, 2012; Presidential Decree No. 24759, Sep. 17, 2013; Presidential Decree No. 26178, Mar. 30, 2015; Presidential Decree No. 27534, Sep. 29, 2016>
1. Notification of revocation of registration of a solicitor, or notification of suspension of business operations of a solicitor under Article 14-4 (4) of the Act;
1-2. Formulation of necessary standards concerning the methods of disclosure under Article 54-2 (2) of the Act;
1-3. Receipt of reports under the proviso to Article 54-3 (1) of the Act, with the exception of its subparagraphs;
1-4. Notification of imposition of an administrative fine on a solicitor under Article 72 (1) 1 of the Act for a violation of Article 14-5 (2) or (3) of the Act;
2. Public announcement of large credit card merchants under Article 6-14 (2) and the formulation of detailed standards for public announcement.
(3) The Governor of the Financial Supervisory Service and the head of the Specialized Credit Finance Business Association shall report the results of performance of business affairs entrusted pursuant to paragraphs (1) and (2) to the Financial Services Commission, as prescribed by the Financial Services Commission. <Amended by Presidential Decree No. 27534, Sep. 29, 2016>
[This Article Wholly Amended by Presidential Decree No. 21674, Aug. 5, 2009]
 Article 24 (Management of Sensitive Information and Personally Identifiable Information)
(1) The Financial Services Commission (including those entrusted with the business affairs of the Financial Services Commission pursuant to Articles 14-3 (3), 16-3 (4), and 58 (7) of the Act and Article 23-3 of this Decree) and the Governor of the Financial Supervisory Service, may manage information that constitutes criminal records under subparagraph 2 of Article 18 of the Enforcement Decree of the Personal Information Protection Act and data containing resident registration numbers or alien registration numbers prescribed in subparagraph 1 or 4 of Article 19 of the same Decree, if necessary to perform any of the following affairs: <Amended by Presidential Decree No. 25532, Aug. 6, 2014; Presidential Decree No. 27111, Apr. 26, 2016; Presidential Decree No. 27414, Jul. 28, 2016; Presidential Decree No. 27534, Sep. 29, 2016>
1. License, registration, etc. under Articles 3, 4, 6, 6-2, 10, 14-3, 16-3, and 27-2 of the Act;
2. Revocation, etc. of registration and imposition, collection, etc., of surcharges under Articles 14-4, 16-4, 27-3, 57, and 58 of the Act;
3. Investigation, request for provision of necessary data, supervision, and inspection under Articles 14-5 (4), 18-2, 50-8, 53, and 53-2 of the Act and follow-up measures thereof;
4. Reporting, etc. under Articles 14-5 (5), 49-2 (3) and (4), 50 (3) and (4), and 54 of the Act and Article 19-11 (1) of this Decree;
5. Affairs concerning the matters to be observed, etc. under Articles 19 and 19-2 of the Act;
6. Approval under Articles 49-2 (6) and 50 (6) of the Act;
7. Deleted. <by Presidential Decree No. 27414, Jul. 28, 2016>
(2) If essential for performing the following business affairs, a credit card company may manage data containing resident registration numbers or alien registration numbers under subparagraph 1 or 4 of Article 19 of the Enforcement Decree of the Personal Information Protection Act: <Newly Inserted by Presidential Decree No. 25532, Aug. 6, 2014>
1. Registration of solicitors made under Article 14-3 (1) and (2) of the Act;
2. Reporting made under Article 14-5 (5) of the Act;
3. Ascertainment of liability to credit card members, etc. conducted under Article 16 of the Act.
(3) If essential for performing the following business affairs, the head of the Specialized Credit Finance Business Association may manage data containing resident registration numbers or alien registration numbers under subparagraph 1 or 4 of Article 19 of the Enforcement Decree of the Personal Information Protection Act: <Newly Inserted by Presidential Decree No. 25532, Aug. 6, 2014; Presidential Decree No. 27111, Apr. 26, 2016; Presidential Decree No. 27534, Sep. 29, 2016>
1. Verification of the revocation, etc. of registration under Article 14-4 of the Act for the management of business affairs relating to the registration under Article 14-3 of the Act;
1-2. Confirmation of registration cancellation, etc. under Article 16-4 of the Act for managing affairs concerning registration under Article 16-3 of the Act;
2. Counselling on, and dealing with, violations of any provision of Article 14-5 (1) through (3) in the course of engaging in business referred to in subparagraph 4 of Article 64 of the Act;
3. Verification of departure from and entry to the Republic of Korea at the request of credit card members, etc. as part of the business affairs referred to in subparagraph 4 of Article 64 of the Act;
4. Exchange of credit information and management of information under subparagraph 5 and 6 of the Act.
[This Article Newly Inserted by Presidential Decree No. 23488, Jan. 6, 2012]
 Article 25 (Re-Examination of Regulation)
The Financial Services Commission shall examine the appropriateness of the following matters every three years from each base date specified in the following subparagraphs (referring to the period that ends on the day before the base date of every third year) and shall take measures for improvement, etc.: <Amended by Presidential Decree No. 26423, Jul. 20, 2015>
1. Standards, etc. for operation of incidental business under Article 6-5: January 1, 2014;
2. Matters to be complied with by solicitors, etc. under Article 6-8 (1) 8: January 1, 2014;
3. The period during which the liability of a credit card company to credit card holders under Article 6-9 (1) shall apply: January 1, 2014;
4. The maximum face value of a prepaid card, etc. under Article 7-2: January 1, 2014;
5. Operating standards for loan business of specialized credit finance business companies under Article 17: January 1, 2014;
6. Ways of raising funds by specialized credit finance business companies under Article 18: January 1, 2014;
7. Restrictions on the issuance, etc. of corporate bonds or bills or on the sale of securities by specialized credit finance business companies under Article 19: January 1, 2014;
8. Requirements for members of the Audit Committee under Article 19-9: January 1, 2014.
[This Article Wholly Amended by Presidential Decree No. 25050, Dec. 30, 2013]
 Article 26 (Guidelines for Imposing Administrative Fines)
The guidelines for imposing administrative fines under Article 72 (1) and (3) of the Act are as prescribed in attached Table 4. <Amended by Presidential Decree No. 27534, Sep. 29, 2016; Presidential Decree No. 28389, Oct. 17, 2017>
[This Article Newly Inserted by Presidential Decree No. 26178, Mar. 30, 2015]
ADDENDA
Article 1 (Enforcement Date)
This Decree shall enter into force on January 1, 1998.
Article 2 (Repeal of other Statutes)
The following statutes shall be repealed:
1. Enforcement Decree of the Credit Card Business Act;
2. Enforcement Decree of the Equipment Rental Business Act.
Article 3 (Transitional Measures concerning Scope of Solicitation of Merchant Stores)
The provisions of Article 7 shall not apply to the merchant stores solicited after obtaining authorization of the Minister of Finance of Economy prior to the enforcement of this Decree by a concurrent credit business entity who has obtained the permission to engage in the credit card business under the provisions of Article 3 (2) 2 of the Act.
Article 4 Deleted. <by Presidential Decree No. 16261, Apr. 24, 1999>
Article 5 Omitted.
ADDENDA <Presidential Decree No. 15761, Apr. 1, 1998>
(1) (Enforcement Date) This Decree shall enter into force on the date of its promulgation.
(2) through (4) Omitted.
ADDENDA <Presidential Decree No. 15817, Jun. 24, 1998>
Article 1 (Enforcement Date)
This Decree shall enter into force on the date of its promulgation.
Articles 2 through 6 Omitted.
ADDENDUM <Presidential Decree No. 16261, Apr. 24, 1999>
This Decree shall enter into force on the date of its promulgation.
ADDENDA <Presidential Decree No. 16323, May 24, 1999>
Article 1 (Enforcement Date)
This Decree shall enter into force on the date of its promulgation.
Articles 2 through 4 Omitted.
ADDENDUM <Presidential Decree No. 17264, Jun. 30, 2001>
This Decree shall enter into force on the date of its promulgation.
ADDENDA <Presidential Decree No. 17645, Jun. 29, 2002>
Article 1 (Enforcement Date)
This Decree shall enter into force on July 1, 2002.
Article 2 (Transitional Measures concerning Restrictions on Business Affairs Incidental to Credit Cards)
(1) Any credit card business entity managing incidental business affairs in excess of the limits set forth in the amended provisions of Article 6-5 (2) at the time this Decree enters into force, shall bring it into compliance with the amended provisions by December 31, 2003. For the purpose of implementing such compliance, he/she shall submit to the Financial Supervisory Commission for approval a detailed plan to gradually reduce the excess by July 31, 2002.
(2) The credit sold shall be excluded from the credit which has arisen for credit card holders of the amended provisions of Article 6-5 (2) by December 31, 2004.
ADDENDA <Presidential Decree No. 18170, Dec. 30, 2003>
(1) (Enforcement Date) This Decree shall enter into force on the date of its promulgation.
(2) (Applicability concerning Renewal or Issuance in Substitution of Credit Cards and Debit Cards) The amended provisions of subparagraph 1 of Article 6-6 shall begin to apply from the first credit card or the debit card renewed or issued in substitution after this Decree enters into force.
(3) (Applicability concerning Requirements for Principal Investors at the Time of Approval of Credit Card Business) The amended provisions of attached Table 1 shall begin to apply from the first application for approval of the credit card business after this Decree enters into force.
(4) (Transitional Measures concerning Restriction on Incidental Business Affairs of Credit Card Business Entity) Any credit card business entity managing an incidental business affair in excess of the limit under the amended provisions of Article 6-5 (2) at the time this Decree enters into force, shall bring it into compliance with the amended provisions by December 31, 2007. For the purpose of performing such compliance, he/she shall submit to the Financial Supervisory Commission for approval a detailed plan for incremental reduction of the part exceeding the limit by January 31, 2004.
ADDENDA <Presidential Decree No. 18297, Feb. 28, 2004>
Article 1 (Enforcement Date)
This Decree shall enter into force on March 1, 2004.
Articles 2 through 5 Omitted.
ADDENDUM <Presidential Decree No. 18312, Mar. 17, 2004>
This Decree shall enter into force on the date of its promulgation.
ADDENDA <Presidential Decree No. 18365, Apr. 19, 2004>
(1) (Enforcement Date) This Decree shall enter into force on April 21, 2004.
(2) (Applicability concerning Period of Facilities Lease) The amended provisions of Article 2 (4) shall begin to apply from the first contract for facility leasing concluded after this Decree enters into force.
(3) (Transitional Measures concerning Management Standard of Loan Business of Specialized Credit Finance Company) Any specialized credit finance business company managing a loan business in excess of the limit under the amended provisions of Article 17 at the time this Decree enters into force, shall bring it into compliance with the amended provisions by December 31, 2008. For the purpose of performing such compliance, it shall submit for approval a detailed plan to reduce the excess to the Financial Supervisory Commission by June 30, 2004.
ADDENDA <Presidential Decree No. 18401, May 25, 2004>
Article 1 (Enforcement Date)
This Decree shall enter into force on May 30, 2004.
Article 2 Omitted.
ADDENDUM <Presidential Decree No. 20120, Jun. 28, 2007>
This Decree shall enter into force on July 4, 2007.
ADDENDA <Presidential Decree No. 20549, Jan. 18, 2008>
Article 1 (Enforcement Date)
This Decree shall enter into force on January 20, 2008: Provided, That the amended provisions of attached Table 1 shall enter into force on March 20, 2008.
Article 2 (Applicability concerning Requirements for Major Stockholder)
The amended provisions of attached Table 1 shall begin to apply from the first application set forth in Article 3-2 (1) submitted to the Financial Services Commission after this Decree enters into force. <Amended by Presidential Decree No. 20653, Feb. 29, 2008>
ADDENDA <Presidential Decree No. 20653, Feb. 29, 2008>
Article 1 (Enforcement Date)
This Decree shall enter into force on the date of its promulgation: Provided, That from among the Presidential Decrees which are amended under Article 2 of the Addenda, the amended part of Presidential Decree promulgated before this Decree enters into force, but its enforcement date has not arrived, shall enter into force on the respective enforcement date of the relevant Presidential Decree.
Article 2 Omitted.
ADDENDA <Presidential Decree No. 20947, Jul. 29, 2008>
Article 1 (Enforcement Date)
This Decree shall enter into force on February 4, 2009. (Proviso Omitted.)
Articles 2 through 28 Omitted.
ADDENDUM <Presidential Decree No. 21674, Aug. 5, 2009>
This Decree shall enter into force on August 7, 2009.
ADDENDA <Presidential Decree No. 21765, Oct. 1, 2009>
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. 21775, Oct. 9, 2009>
Article 1 (Enforcement Date)
This Decree shall enter into force on October 10, 2009.
Articles 2 and 3 Omitted.
ADDENDA <Presidential Decree No. 22151, May 4, 2010>
Article 1 (Enforcement Date)
This Decree shall enter into force on May 5, 2010.
Articles 2 through 4 Omitted.
ADDENDUM <Presidential Decree No. 22196, Jun. 11, 2010>
This Decree shall enter into force on June 13, 2010.
ADDENDA <Presidential Decree No. 22493, Nov. 15, 2010>
Article 1 (Enforcement Date)
This Decree shall enter into force on November 18, 2010.
Articles 2 through 5 Omitted.
ADDENDA <Presidential Decree No. 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. 23496, Jan. 6, 2012>
Article 1 (Enforcement Date)
This Decree shall enter into force on March 2, 2012.
Article 2 Omitted.
ADDENDUM <Presidential Decree No. 23643, Feb. 28, 2012>
This Decree shall enter into force on the date of its promulgation.
ADDENDA <Presidential Decree No. 23644, Feb. 29, 2012>
Article 1 (Enforcement Date)
This Decree shall enter into force on the date of its promulgation. Provided, That...<Omitted>...the amended provisions of Articles 2 and 3 of Addenda shall enter into force on July 22, 2012.
Articles 2 through 4 Omitted.
ADDENDA <Presidential Decree No. 24136, Oct. 9, 2012>
Article 1 (Enforcement Date)
This Decree shall enter into force on October 15, 2012: Provided, That the amended provisions of Article 19-8 (3) 5 shall enter into force on the date of its promulgation.
Article 2 (Applicability concerning Issuance of Credit Cards and Methods of Credit Card Solicitation)
The amended provisions of Article 6-7 (2) and (3) shall begin to apply from the first credit card issued following application which is made after this Decree enters into force.
Article 3 (Transitional Measures concerning Selection, etc. of Outside Directors)
The outside director who is on the job at the time this Decree enters into force shall be governed by the previous provisions until his/her term expires, notwithstanding the amended provisions of Article 19-8 (3) 5.
ADDENDUM <Presidential Decree No. 24219, Dec. 4, 2012>
This Decree shall enter into force on December, 22, 2012.
ADDENDA <Presidential Decree No. 24697, Aug. 27, 2013>
Article 1 (Enforcement Date)
This Decree shall enter into force on August 29, 2013. (Proviso Omitted.)
Articles 2 through 13 Omitted.
ADDENDA <Presidential Decree No. 24759, Sep. 17, 2013>
Article 1 (Enforcement Date)
This Decree shall enter into force on September 23, 2013.
Article 2 (Transitional Measures concerning Average Balance of Credit Mid-Quarter)
In calculating the average balance of the credit of a credit card company incurred by a credit card holder in purchasing goods or receiving services, etc. using a credit card during a quarter in which the date of enforcement of this Decree falls, notwithstanding the amended provisions of Article 6-5 (2) 1, the previous provisions shall apply.
ADDENDUM <Presidential Decree No. 25050, Dec. 30, 2013>
This Decree shall enter into force on January 1, 2014. (Proviso Omitted.)
ADDENDUM <Presidential Decree No. 25532, Aug. 6, 2014>
This Decree shall enter into force on August 7, 2014.
ADDENDUM <Presidential Decree No. 26037, Jan. 6, 2015>
This Decree shall enter into force on January 15, 2015.
ADDENDA <Presidential Decree No. 26178, Mar. 30, 2015>
Article 1 (Enforcement Date)
This Decree shall enter into force one month after the date of its promulgation.
Article 2 (Applicability concerning Requirements for Qualification of Executive Officers)
The amended provisions of Article 19-7 (5) shall begin to apply from the persons who become executive officers of a specialized credit finance business company after this Decree enters into force.
Article 3 (Transitional Measure concerning Appointment, etc. of Outside Directors)
Every specialized credit finance business company under the amended provisions of Article 19-8 (1) shall satisfy the criteria prescribed under Articles 50-4 (1) and 50-5 (1) of the Act within six months after this Decree enters into force.
Article 4 (Transitional Measure concerning Orders to Suspend Business Operation, etc.)
Notwithstanding the amended provisions of subparagraphs 3 and 3-2 in attached Table 2, the previous provisions shall apply in issuing an order to suspend business operation or imposing a penalty surcharge, against a violation committed before this Decree enters into force.
ADDENDA <Presidential Decree No. 26248, May 26, 2015>
Article 1 (Enforcement Date)
This Decree shall enter into force on May 28, 2015.
Articles 2 through 7 Omitted.
ADDENDA <Presidential Decree No. 26423, Jul. 20, 2015>
Article 1 (Enforcement Date)
This Decree shall enter into force on July 21, 2015.
Article 2 (Applicability concerning Plans for Information Technology Sector)
The amended provisions of Article 19-18 shall begin to apply from plans formulated and submitted with regard to the information technology sector for the business years that begin after this Decree enters into force.
ADDENDA <Presidential Decree No. 26517, Sep. 11, 2015>
Article 1 (Enforcement Date)
This Decree shall enter into force on September 12, 2015. (Proviso Omitted.)
Articles 2 through 6 Omitted.
ADDENDA <Presidential Decree No. 26600, Oct. 23, 2015>
Article 1 (Enforcement Date)
This Decree shall enter into force on October 25, 2015. (Proviso Omitted.)
Articles 2 through 9 Omitted.
ADDENDA <Presidential Decree No. 27111, Apr. 26, 2016>
Article 1 (Enforcement Date)
This Decree shall enter into force one month after the date of its promulgation.
Article 2 (Transitional Measure concerning Entrustment of Affairs)
Notwithstanding the amended provisions of Article 23-2 (1) 7-5, the previous provisions shall apply to the detailed plans submitted before this Decree enters into force.
ADDENDA <Presidential Decree No. 27414, Jul. 28, 2016>
Article 1 (Enforcement Date)
This Decree shall enter into force on August 1, 2016. (Proviso Omitted.)
Articles 2 through 4 Omitted.
ADDENDA <Presidential Decree No. 27534, Sep. 29, 2016>
Article 1 (Enforcement Date)
This Decree shall enter into force on September 30, 2016.
Article 2 Omitted.
ADDENDA <Presidential Decree No. 27556, Oct. 25, 2016>
Article 1 (Enforcement Date)
This Decree shall enter into force on December 1, 2016.
Article 2 Omitted.
ADDENDUM <Presidential Decree No. 28209, Jul. 26, 2017>
This Decree shall enter into force on July 31, 2017.
ADDENDA <Presidential Decree No. 28389, Oct. 17, 2017>
Article 1 (Enforcement Date)
This Decree shall enter into force on October 19, 2017.
Article 2 (Transitional Measures concerning Standards for Imposition of Penalty Surcharges)
Notwithstanding the amended provisions of Article 21 (2) and (3) and attached Tables 2 and 3, the previous provisions shall apply to the imposition of penalty surcharges for violations committed before this Decree enters into force.
ADDENDA <Presidential Decree No. 29111, Aug. 21, 2018>
Article 1 (Enforcement Date)
This Decree shall enter into force on the date of its promulgation: Provided, That the amended provisions of Article 2-2, and of subparagraph 2 (c) of attached Table 1-5, shall enter into force on August 22, 2018; and the amended provisions of the proviso to Article 17 (2) 1 and of Article 17 (2) 6 shall enter into force on October 1, 2018.
Article 2 (Applicability concerning Scope of Prohibition of Settlement to Be Made by Personal Credit Card Holders)
The amended provisions of Article 1-2 (2) 7 shall begin to apply from the first portions of the monthly use limit to be applied after this Decree enters into force.
Article 3 (Transitional Measures concerning Operating Standards for Loan Business)
Each specialized credit finance business company whose amount of claims falling under the amended provisions of the proviso to Article 17 (2) 1 and of Article 17 (2) 6 as of October 1, 2018 exceeds the proportion of the amount of claims prescribed in Article 46 (2) of the Act shall ensure to comply with the proportion of the amount of claims prescribed in Article 46 (2) of the Act within two years form October 1, 2018.
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.
ADDENDUM <Presidential Decree No. 29506, Jan. 29, 2019>
This Decree shall enter into force on the date of its promulgation.