ENFORCEMENT DECREE OF THE CREDIT UNIONS ACT
Wholly Amended by Presidential Decree No. 15753, Apr. 1, 1998
Amended by Presidential Decree No. 16249, Apr. 19, 1999
Presidential Decree No. 16323, May 24, 1999
Presidential Decree No. 16857, jun. 27, 2000
Presidential Decree No. 18113, Nov. 4, 2003
Presidential Decree No. 18297, Feb. 28, 2004
Presidential Decree No. 19010, Aug. 19, 2005
Presidential Decree No. 19422, Mar. 29, 2006
Presidential Decree No. 20142, jun. 29, 2007
Presidential Decree No. 20230, Aug. 22, 2007
Presidential Decree No. 20653, Feb. 29, 2008
Presidential Decree No. 20885, jun. 25, 2008
Presidential Decree No. 20947, Jul. 29, 2008
Presidential Decree No. 22493, Nov. 15, 2010
Presidential Decree No. 23316, Nov. 23, 2011
Presidential Decree No. 23356, Dec. 8, 2011
Presidential Decree No. 23488, Jan. 6, 2012
Presidential Decree No. 24096, Sep. 7, 2012
Presidential Decree No. 24600, jun. 11, 2013
Presidential Decree No. 25050, Dec. 30, 2013
Presidential Decree No. 25532, Aug. 6, 2014
Presidential Decree No. 26039, Jan. 6, 2015
Presidential Decree No. 26424, Jul. 20, 2015
Presidential Decree No. 27037, Mar. 11, 2016
Presidential Decree No. 28152, jun. 27, 2017
Presidential Decree No. 28283, Sep. 5, 2017
Presidential Decree No. 28390, Oct. 17, 2017
Presidential Decree No. 29394, Dec. 18, 2018
Presidential Decree No. 29991, Jul. 16, 2019
The purpose of this Decree is to provide for matters delegated by the Credit Unions Act and other matters necessary for the enforcement thereof. <Amended by Presidential Decree No. 20230, Aug. 22, 2007>
| Article 1-2 (Equity Capital) |
"Amount of which is prescribed by Presidential Decree" in subparagraph 9 of Article 2 of the Credit Unions Act (hereafter referred to as the "Act") means an amount calculated by adding or subtracting the amount of errors made on the settlement of accounts to or from the aggregate of capital stocks, reserves, other surplus, etc. of a credit union (hereafter referred to as "union"). <Amended by Presidential Decree No. 20230, Aug. 22, 2007> [This Article Newly Inserted by Presidential Decree No. 16857, Jun. 27, 2000]
| Article 2 (Registration of Establishment of Unions and National Federation) |
| (1) | Each union or the National Credit Union Federation of Korea (hereafter referred to as the "National Federation") shall complete registration of the following matters within three weeks from the day on which the letter of authorization for establishment is delivered. <Amended by Presidential Decree No. 16857, Jun. 27, 2000; Presidential Decree No. 18113, Nov. 4, 2003> |
| 4. | Date on which authorization for establishment is granted; |
| 5. | Grounds for dissolution if such grounds are stipulated; |
| 6. | Value per share of the investment and method for payment thereof; |
| 7. | Names, resident registration numbers, and addresses of the union president or the Chairperson of the National Federation (hereafter referred to as the "Chairperson of the National Federation") and the President for credit and mutual aid services; |
| 8. | Names and resident registration numbers of executive officers, except the union president or the Chairperson of the National Federation and the President for credit and mutual aid services; |
| 9. | Method of public announcement; |
| 10. | Details of restrictions, if any, on the directors' authority of representation. |
| (2) | When an application for registration of establishment is filed under paragraph (1) shall be accompanied by a copy of the written authorization for establishment, a copy of the articles of association, documents certifying appointment of directors, and copies of letters of acceptance of appointment as an executive officer. |
| Article 3 (Registration of Establishment of Branch Offices) |
When a union or the National Federation establishes a branch office or a local chapter (hereafter referred to as "branch office"), they shall register the following matters with each of the competent authorities stated below:
| 1. | The address of the branch office and the date of establishment at the registration office having jurisdiction over its principal place of business within two weeks; |
| 2. | The matters under Article 2 (1) 1, 3, and 7, the address of the branch office, and the date of establishment at the registration office having jurisdiction over the place of the branch office within three weeks. |
| Article 4 (Registration of Changes) |
| (1) | When the matters provided in subparagraphs of Article 2 (1) change, such changes shall be registered within two weeks at the registration office having jurisdiction over the principal place of business along with a document certifying such change, and when the matters provided in subparagraph 2 of Article 3 change, such changes shall be also registered at the registration office having jurisdiction over the branch office within three weeks. |
| (2) | When a union or the National Federation relocates its place of business to a place under jurisdiction of any other registration office, it shall, within two weeks, complete the registration of the relocation with the registration office having jurisdiction over the former place of business and the registration of the matters under subparagraphs of Article 2 (1) or the matters prescribed in subparagraph 2 of Article 3 with the registration office having jurisdiction over the new place of business. |
| Article 5 (Registration of Merger or Split-off) |
Where a union is merged or split off in accordance with Article 55 of the Act, it shall register the change of the union surviving the merger or split-off, dissolution of the union dissolving upon the merger, or the establishment of a union established by the merger or split-off at the registration office having jurisdiction over its principal place of business within two weeks and the registration office having jurisdiction over the address of each branch office within three weeks. <Amended by Presidential Decree No. 16857, Jun. 27, 2000>
| Article 6 (Registration of Dissolution or Completion of Liquidation) |
| (1) | When a union is dissolved, it shall complete the registration of the dissolution with the registration office having jurisdiction over its principal place of business within two weeks and also with the registration office having jurisdiction over each branch office within three weeks. |
| (2) | An application filed for the registration of dissolution in accordance with paragraph (1) shall be accompanied by the following documents: |
| 1. | Documents proving the grounds for dissolution; |
| 2. | Documents certifying the qualification of the applicant for registration if the president is not the liquidator. |
| (3) | When liquidation proceeding of a union is completed, it shall complete the registration of the closing of liquidation with the registration office having jurisdiction over its principal place of business within two weeks and with the registration office having jurisdiction over each branch office within three weeks from the date on which its general meeting approves the report on settlement of accounts in accordance with Article 59 of the Act. |
| (4) | Deleted. <by Presidential Decree No. 16249, Apr. 19, 1999> |
| Article 7 (Change and Registration of Trade Name) |
| (1) | It shall be deemed that a union's name recorded in the register for a credit union established on the basis of the common bond of a workplace (hereafter referred to as "workplace credit union") is changed when the trade name of the workplace is changed. |
| (2) | When the change under paragraph (1) occurs, the union concerned shall notify the competent registration office of the change without delay, and the registration office notified shall record such change in the register. |
| Article 7-2 (Registration on Appointment of Agent) |
| (1) | In cases of appointing an agent pursuant to Article 76-4 of the Act, the Chairperson of the National Federation and the President for credit and mutual aid services shall register the following matters at the registration office having jurisdiction over the principal office or branch office of the National Federation in which the agent is appointed, within two weeks from the date of appointment of the agent. The same shall apply where any registered matter has been changed: |
| 1. | Name and address of the agent; |
| 2. | Name and address of the principal office or branch office in which the agent is appointed; |
| 3. | Details of restrictions, if any, on the authority of the agent. |
| (2) | When an application for registration of appointment of an agent is filed under paragraph (1), documents certifying the appointment of the agent and documents certifying the fact of restrictions on authority of the agent, if any, shall be attached. |
[This Article Newly Inserted by Presidential Decree No. 26039, Jan. 6, 2015]
| Article 8 (Counting Period of Registration) |
Where an authorization or approval by the Financial Services Commission or the Chairperson of the National Federation is required to register under this Decree, the period of such registration shall be counted from the day on which the letter of authorization or approval is delivered to the applicant for registration. <Amended by Presidential Decree No. 16323, May 24, 1999; Presidential Decree No. 20653, Feb. 29, 2008>
| Article 9 (Applicants for Registration) |
| (1) | An application for the registration under Articles 2 through 5 shall be filed by the president for a union or the Chairperson for the National Federation. |
| (2) | For the registration of dissolution where such dissolution ensues from the Financial Services Commission's revocation of authorization for establishment, the Financial Services Commission may designate an employee of the National Federation as the registration applicant to authorize him/her to carry out such registration on behalf. <Amended by Presidential Decree No. 16323, May 24, 1999; Presidential Decree No. 20653, Feb. 29, 2008> |
| Article 10 (Application for Authorization for Establishment) |
| (1) | A person who intends to apply for authorization for the establishment of a union under Article 7 (1) of the Act shall complete an application form of authorization for the establishment prescribed by the Financial Services Commission with attaching following documents (hereafter referred to as "attached documents" in this Article) to submit the Financial Services Commission through the Chairperson of the National Federation: <Amended by Presidential Decree No. 16323, May 24, 1999; Presidential Decree No. 16857, Jun. 27, 2000; Presidential Decree No. 20653, Feb. 29, 2008; Presidential Decree No. 26424, Jul. 20, 2015> |
| 1. | Articles of association; |
| 2. | Minutes of the inaugural general meeting; |
| 4. | Resumes of the representative of promoters and executive officers; |
| 5. | List of persons who have submitted a written consent to the establishment in accordance with Article 7 (2) of the Act; |
| 6. | Location map of the place of office; |
| 7. | Minutes of the promoters' meeting; |
| 8. | Other documents describing matters in relation to the establishment of the union. |
| (2) | Where a union is established by the split-off under Article 55 (1) of the Act, the minutes of the inaugural general meeting under paragraph (1) 2 may be substituted with the minutes of the general meeting at which the split-off was resolved. In such cases, the minutes of the general meeting at which the split-off was resolved shall contain the resolution on the rights and obligations to which the union newly established shall succeed. <Amended by Presidential Decree No. 26424, Jul. 20, 2015> |
| (3) | In receipt of an application form of authorization for the establishment pursuant to paragraph (1), the Chairperson of the National Federation shall forward it to the Financial Services Commission within 30 days, by attaching his/her opinions. <Amended by Presidential Decree No. 16323, May 24, 1999; Presidential Decree No. 16857, Jun. 27, 2000; Presidential Decree No. 20653, Feb. 29, 2008; Presidential Decree No. 26424, Jul. 20, 2015> |
| (4) | Where the Financial Services Commission receives application documents for authorization from the Chairperson of the National Federation pursuant to paragraph (3), it shall review the details and decide whether to authorize the establishment of a union within 60 days from the date of receipt, and inform the applicant of its results and reasons without delay in accordance with Article 8 (2) of the Act. <Amended by Presidential Decree No. 26424, Jul. 20, 2015> |
| (5) | When calculating the review period prescribed in paragraph (4), the period falling under any of the following shall be excluded from the review period: <Newly Inserted by Presidential Decree No. 26424, Jul. 20, 2015> |
| 1. | The period which it takes to receive necessary materials from other agencies, etc., for confirming whether the requirements of each subparagraph of Article 8 (1) of the Act are met; |
| 2. | The period for supplement where it is requested to supplement defects in application form of authorization for the establishment or attached documents; |
| 3. | The period of time when procedures for proceeding or investigation, inspection, etc end, where criminal proceeding against promoters or executive officers (referring to executive officers who have been elected at the inaugural general meeting under Article 7 (2) and 27 (2) of the Act) who intend to be authorized for the establishment of a union continues, or investigation, examination, etc., on them by the Financial Services Commission, Fair Trade Commission, National Tax Service, Public Prosecutors’ Office, or Financial Supervisory Service (referring to the Financial Supervisory Service under the Act on the Establishment, etc. of Financial Services Commission; hereinafter the same shall apply) is conducted, and where it is deemed that the details of the proceeding, or investigation, inspection, etc. may significantly affect the review of authorization. |
| Article 11 (Detailed Requirements for Authorizations) |
| (1) | The detailed requirements for human resources, physical facilities, and business plan among the requirements for authorization for establishment of a union under Article 8 (1) of the Act shall be as follows: <Amended by Presidential Decree No. 16857, Jun. 27, 2000; Presidential Decree No. 26039, Jan. 6, 2015> |
| (a) | Neither a promoter (applicable only when a promoter is a private individual) nor an executive officer shall fall under the grounds for disqualification of an executive officer, as provided in Article 28 of the Act; |
| (b) | Executive officers and employees shall complete the training course offered by the Chairperson of the National Federation as necessary for establishment of a union; |
| (c) | The union shall secure human resources who satisfy the requirements determined by the Financial Service Commission in consideration of the professionalism for the performance of the relevant projects. |
| (a) | Each union shall have an office with a floor area of not less than 30 square meters; |
| (b) | Each union shall have an electronic computer system compatible with that of the National Federation's; |
| (a) | The business plan shall be proper for carrying on business continuously and the estimated financial statements and forecasted income for three years after commencement of the business shall be feasible; |
| (b) | The method of raising a fund including the capital required for the promotion of the business plan shall be appropriate. |
| (2) | A merger of unions established on the basis of an administrative district, economic sphere or life boundary as its common bond (hereinafter referred to as "local unions") shall be permitted only where the unions subject to the merger have the common bond of either the same Si (including the Special Self-Governing City, and an administrative city under Article 10 (2) of the Special Act on the Establishment of Jeju Special Self-Governing Province and the Development of Free International City; hereinafter the same shall apply), Gun or Gu (referring to an autonomous Gu; hereinafter the same shall apply), or adjoining Si/Gun/Gu. <Amended by Presidential Decree No. 16249, Apr. 19, 1999; Presidential Decree No. 18113, Nov. 4, 2003; Presidential Decree No. 26039, Jan. 6, 2015; Presidential Decree No. 28390, Oct. 17, 2017> |
| Article 12 (Sphere of Common Bond) |
| (1) | The sphere of a common bond under Article 9 (1) of the Act is as follows: <Amended by Presidential Decree No. 16249, Apr. 19, 1999; Presidential Decree No. 18113, Nov. 4, 2003; Presidential Decree No. 20653, Feb. 29, 2008; Presidential Decree No. 28390, Oct. 17, 2017> |
| 1. | Local unions: Eups/Myeons/Dongs within the same Si/Gun/Gu: Provided, That any Eups/Myeons/Dongs that are not within the same Si/Gun/Gu may also be included, if their living or economic circles are close together and their administrative districts are adjacent enough to create a common bond, and each sphere of common bond meets requirements such as financial soundness, based on which the Financial Services Commission has approved such inclusion; |
| 2. | Workplace credit unions: The same workplace; in such cases, branch offices, subsidiary companies, affiliated companies, and subordinate institutions of the workplace concerned may be included in the sphere of a common bond; |
| 3. | Organization unions: The following organizations or legal entities: |
| (a) | Religious organizations, including churches and temples; |
| (b) | Market merchants' organizations; |
| (c) | Incorporated associations the members of which have a close cooperative relationship with one another; |
| (d) | Trade organizations comprised of members who hold credentials or license officially recognized by the State and authorized by relevant statutes or regulations. |
| (2) | A religious organization falling under paragraph (1) 3 (a) may form a common bond with another religious organization in the same Si/Gun/Gu, notwithstanding paragraph (1). <Amended by Presidential Decree No. 16249, Apr. 19, 1999; Presidential Decree No. 18113, Nov. 4, 2003> |
| (3) | and (4) Deleted. <by Presidential Decree No. 16249, Apr. 19, 1999> |
| (5) | Where a local union's common bond changes because of an alteration to an administrative district, the former common bond shall be deemed a common bond of the local union concerned, notwithstanding paragraph (1) 1. |
| (6) | Matters necessary for requirements and procedures for approval including financial soundness set for each sphere of common bond under the proviso to paragraph (1) 1 shall be determined and publicly notified by the Financial Services Commission. <Newly Inserted by Presidential Decree No. 28390, Oct. 17, 2017> |
| Article 13 (Persons Eligible for Membership) |
| 1. | For a local union: A person (or an organization or a legal entity) whose address or residence is within the common bond stipulated by the articles of association or a person who engages in his/her business within the common bond; |
| 2. | For a workplace credit union or an organization union: A person (or an organization or a legal entity) who belongs to a workplace, organization, etc. stipulated by the articles of association. |
| (2) | "Persons prescribed by Presidential Decree" in Article 11 (2) of the Act means the following persons: <Amended by Presidential Decree No. 16249, Apr. 19, 1999; Presidential Decree No. 20230, Aug. 22, 2007> |
| 1. | A family member of a member (which means a spouse, lineal ascendant or descendant within the same household; the same shall apply hereafter); |
| 1-2. | A person who is no longer within the common bond of a union because of a merger or split-off of that union under Article 55 of the Act, the transfer of contracts under Article 86-4 of the Act, or the adjustment of extent of the common bond or the conversion of type of the common bond of the union; |
| 2. | An employee of the office of an organization or his/her family member; |
| 3. | An employee of a union or his/her family member; |
| 4. | An employer to which the union belongs (or an organization within the employer); |
| 5. | An employee of a business that a union member runs in connection with a specific trade where a union that is based on a common bond of an organization for the specific trade. |
| Article 14 (Scope of Unions Required to Appoint President as Standing Member) |
| (1) | Local unions or organization unions whose total assets calculated by the average balance as of the immediately preceding business year is 30 billion won or more shall have the president or only one person among directors who are not the president as a standing member pursuant to the main sentence of Article 27 (6) of the Act: Provided, That local unions or organization unions whose total assets calculated by the average balance as of the immediately preceding business year is 150 billion won or more may have the president and up to one director who is not the president as a standing member. <Amended by Presidential Decree No. 26424, Jul. 20, 2015; Presidential Decree No. 28390, Oct. 17, 2017> |
| (2) | Notwithstanding the main sentence of paragraph (1), either of the following organization unions (excluding organization unions whose total assets calculated by the average balance as of the immediately preceding business year is at least 150 billion won) may have the president or a director who is not the president as a non-standing member: <Amended by Presidential Decree No. 26424, Jul. 20, 2015; Presidential Decree No. 28390, Oct. 17, 2017> |
| 1. | Religious organizations under Article 12 (1) 3 (a) or incorporated associations under Article 12 (1) 3 (c), which are approved by the Chairperson of the National Federation under the criteria determined and publicly notified by the Financial Services Commission in consideration of the characteristics, size of assets, etc., of the relevant union; |
| 2. | Trade organizations under Article 12 (1) 3 (d). |
| (3) | Local unions or organization unions whose total assets calculated by the average balance as of the immediately preceding business year is at least 30 billion won which have not completed measures to improve their financial status until the date on which two years arrive from the date they have been requested to take measures to improve the financial status pursuant to Article 89 (4) of the Act shall have only one director who is not the president as a standing member under the proviso to Article 27 (6) of the Act. <Amended by Presidential Decree No. 26424, Jul. 20, 2015; Presidential Decree No. 28390, Oct. 17, 2017> |
| (4) | Deleted. <by Presidential Decree No. 28390, Oct. 17, 2017> |
| (5) | Local unions or organization unions whose total assets calculated by the average balance as of the immediately preceding business year is at least 200 billion shall have one person among those of auditors as a standing member pursuant to Article 27 (8) of the Act: Provided, That the unions need not to appoint a standing auditor, if they are organization unions under Article 12 (1) 3 (a), (c) or (d) and are approved by the Chairperson of the National Federation pursuant to the criteria specified and publicly notified by the Financial Services Commission in consideration of the characteristics, assets sizes, etc. of the relevant unions. |
<Newly Inserted by Presidential Decree No. 26424, Jul. 20, 2015; Presidential Decree No. 28390, Oct. 17, 2017>
[This Article Wholly Amended by Presidential Decree No. 24600, Jun. 11, 2013]
| Article 14-2 (Appointment Procedures of Standing President) |
| (1) | Unions which appoint the president or a director who is not the president as a standing member under the main sentence of Article 27 (6) of the Act shall appoint the president or a director who is not the president at the general meeting for appointment of executive officers which is held first after meeting requirements pursuant to Article 14 (1) and (2). <Amended by Presidential Decree No. 26424, Jul. 20, 2015; Presidential Decree No. 28390, Oct. 17, 2017> |
| (2) | Unions which appoint only a director who is not the president as a standing member under the proviso to Article 27 (6) of the Act shall appoint a director who is not the president within 60 days after the date when unions fall under the category of local unions or organization unions specified in Article 14 (3). <Amended by Presidential Decree No. 26424, Jul. 20, 2015; Presidential Decree No. 28390, Oct. 17, 2017> |
| (3) | The president or a standing director appointed under paragraph (1) or a standing director appointed under paragraph (2) shall continue to serve in office until his/her term ends, even if the relevant union falls short of the total asset standards under the main sentence of Article 14 (1) and (2), with the exception of its subpragraphs, or the measure to improve its financial state taken under Article 89 (4) of the Act for the relevant union is completed during his/her term. <Amended by Presidential Decree No. 26424, Jul. 20, 2015> |
| (4) | The standing president who is appointed under paragraph (1) shall, where the relevant union falls under the category of a local union or organization union provided in Article 14 (3), continue to serve in office as the president who is not a standing member once he/she satisfies any of the following requirements: <Amended by Presidential Decree No. 26424, Jul. 20, 2015; Presidential Decree No. 28390, Oct. 17, 2017> |
| 1. | Where the relevant union meets requirements prescribed in the main sentence of Article 14 (1): When a standing director is appointed under paragraph (2); |
| 2. | Where the relevant union meets requirements prescribed in the proviso to Article 14 (1) and does not have a director who is not the president as a standing member: When a standing director is appointed under paragraph (2); |
| 3. | Where the relevant union falls under the requirements of the proviso to Article 14 (1) and has a director who is not the president as a standing member: When it falls under the category of a local union or organization union specified in Article 14 (3). |
| (5) | A union which has an auditor as a standing member pursuant to Article 14 (5) shall appoint an auditor at a general meeting for appointing an auditor which is first convened after it comes to fall under the requirements referred to in Article 14 (5), and the appointed standing auditor shall continue to serve in office until his/her term ends, even though the relevant union falls short of the total asset standards under the same paragraph during his/her term. <Amended by Presidential Decree No. 26424, Jul. 20, 2015; Presidential Decree No. 28390, Oct. 17, 2017> |
| (6) | and (7) Deleted. <by Presidential Decree No. 26424, Jul. 20, 2015> |
[This Article Newly Inserted by Presidential Decree No. 24600, Jun. 11, 2013]
| Article 14-3 (Requirements for Appointment of Standing Director) |
Any of the following persons shall be eligible to be appointed as a standing president or standing auditor pursuant to Article 27 (6) or (8) of the Act and Article 14 (1) or (5) of this Decree: Provided, That no person who has ever worked as an executive officer or employee (excluding a standing auditor) in the relevant union for the latest three years shall become a standing auditor: <Amended by Presidential Decree No. 26424, Jul. 20, 2015; Presidential Decree No. 28390, Oct. 17, 2017> | 1. | A person who has at least ten years of full-time work experience in a union or the National Federation; |
| 2. | A person who has at least ten years of full-time work experience in a State agency, research institute or educational institution related to finance; |
[This Article Newly Inserted by Presidential Decree No. 24600, Jun. 11, 2013]
| Article 14-4 (Establishment and Operation of Union Election Committee) |
| (1) | The union election committee under Article 27-3 (1) of the Act (including cases applied mutatis mutandis in Article 72 (8) of the Act) shall be comprised of at least five members appointed by the board of directors of the union from among members (excluding executive officers and employees) who have extensive experience in election management and experts in election management of elections for pubic offices, etc. |
| (2) | The chairperson of the union election committee shall be elected by and from among its members. |
| (3) | A majority of the members of the union election committee shall constitute a quorum and any decision thereof shall require the concurring vote of a majority of those present. |
| (4) | Except otherwise provided in paragraphs (1) through (3), necessary matters concerning the establishment and operation of the union election committee shall be prescribed by the articles of association. |
[This Article Newly Inserted by Presidential Decree No. 29991, July 16, 2019]
| Article 15 (Scope of Finance-Related Statutes) |
| (1) | "Finance-related statute prescribed by Presidential Decree" under Article 28 (1) 5 of the Act means each of the following statutes: <Amended by Presidential Decree No. 20230, Aug. 22, 2007; Presidential Decree No. 20947, Jul. 29, 2008; Presidential Decree No. 26424, Jul. 20, 2015> |
| 5. | through 8. Deleted; <by Presidential Decree No. 20947, Jul. 29, 2008> |
| (2) | "Persons prescribed by Presidential Decree" in Article 28 (1) 8 of the Act means any of the following executive officers and/or employees who are incumbent as at the time the cause or event occurred, which leads to the revocation of permission or license for, or the registration of, business (or an executive officer and/or employee incumbent as at the time the cause or event occurred, which leads to the timely corrective measures under Article 10 of the Act on the Structural Improvement of the Financial Industry where permission or license of a corporation or company was revoked under Article 14 of the said Act): <Amended by Presidential Decree No. 20230, Aug. 22, 2007; Presidential Decree No. 26424, Jul. 20, 2015> |
| 1. | An auditor or a member of an audit committee; |
| 2. | An executive officer subject to a caution, warning, censure, suspension of performance of duties, demand for removal, or other disciplinary measure pursuant to this Act or finance-related statutes or regulations prescribed in paragraph (1) on account of his/her illegal or wrongful conduct in connection with the occurrence of a cause or event that leads to the revocation of permission, license, or registration; |
| 3. | An employee subject to a measure equivalent to or heavier than a demand for suspension from office pursuant to this Act or the finance-related statutes or regulations prescribed in paragraph (1) on account of his/her illegal or wrongful act in connection with the occurrence of a cause or event that leads to the revocation of permission, license, or registration; |
| 4. | A person subject to a disciplinary action pursuant to subparagraph 2 or 3, who retires or resigns from his/her office before he/she was punished by such measure. |
| (3) | "Disciplinary measure of suspension from office, suspension of performance of service, or any heavier discipline prescribed by Presidential Decree" in Article 28 (1) 9 of the Act means the suspension of performance of duties, suspension from office, or suspension of performance of service, while the "period prescribed by Presidential Decree" in the said subparagraph means four years from the termination date of such disciplinary measure or heavier punishment. <Newly Inserted by Presidential Decree No. 18113, Nov. 4, 2003; Presidential Decree No. 26424, Jul. 20, 2015> |
| (4) | "Disciplinary measure of suspension from office, suspension of performance of service, or any heavier discipline prescribed by Presidential Decree" in Article 28 (1) 11 of the Act means the suspension of performance of duties, suspension from office, or suspension of performance of service, while the "period specified by Presidential Decree" in the said subparagraph means four years, respectively. <Newly Inserted by Presidential Decree No. 24600, Jun. 11, 2013; Presidential Decree No. 26424, Jul. 20, 2015> |
[This Article Newly Inserted by Presidential Decree No. 16859, Jun. 27, 2000]
| Article 16 (Scope of Business) |
| (1) | The scope of welfare services prescribed in Article 39 (2) of the Act shall be as follows: <Amended by Presidential Decree No. 23356, Dec. 8, 2011> |
| 1. | Social welfare services: Services of establishing and running child-care centers, welfare facilities for older persons or persons with disability and similar services; |
| 2. | Cultural welfare services: The following services and similar services: |
| (a) | Services of establishing and operating social education facilities, such as homemakers' colleges or hobby classes; |
| (b) | Services of establishing and operating community sports facilities, such as table tennis courts, tennis courts, and fitness clubs; |
| (c) | Services of establishing and operating community convenience facilities, such as wedding halls, reading rooms, restaurants, and public baths; |
| 3. | Local community development projects: Services of collaborative purchasing and sales, warehouse services, funeral services, and similar services. |
| (2) | Deleted. <by Presidential Decree No. 16249, Apr. 19, 1999> |
| (3) | The fund for the operation of welfare services shall be limited to the following amounts, whichever smaller. In such cases, funds provided without compensation by the State, a local government, a public organization shall not be included in such limit: <Amended by Presidential Decree No. 16249, Apr. 19, 1999; Presidential Decree No. 16859, Jun. 27, 2000> |
| 1. | The equity capital under subparagraph 9 of Article 2 of the Act: Provided That, if the equity capital has been reduced to less than the lower limit on the total capital under Article 14 (4) of the Act due to losses incurred, the applicable amount shall be the lower limit on total capital; |
| 2. | An amount equivalent to 10/100 of assets as of the end of the immediately preceding business year. |
| (4) | Notwithstanding paragraph (3), a workplace credit union under Article 12 (1) 2 or an organization union under subparagraph 3 (d) of the said paragraph may appropriate an amount equivalent to twice its equity capital as funds for provision of welfare services, subject to prior approval of the Chairperson of the National Federation. <Newly Inserted by Presidential Decree No. 18113, Nov. 4, 2003> |
| (5) | When providing the welfare services under paragraph (1), a union may levy a charge on service users to cover the expenses. |
| Article 16-2 (Use of Services by Non-Union Members) |
Where a union allows persons who are not members prescribed in Article 40 (1) of the Act, and members of another union prescribed in paragraph (2) of the same Article to use the services referred to in Article 39 (1) of the Act, the loans and discount of bills (hereinafter referred to as "loans, etc.") related thereto shall not exceed 1/3 of the sum of amounts under the following: <Amended by Presidential Decree No. 23316, Nov. 23, 2011; Presidential Decree No. 29394, Dec. 18, 2018> | 1. | An amount equivalent to 150/100 of loans, etc. prescribed by the Financial Services Commission in consideration of the interest rate, etc., which are provided to members of the union (excluding members of another union) among the loans, etc. newly provided by the union during the relevant business year; |
| 2. | An amount excluding loans, etc. under subparagraph 1 among the loans, etc. newly provided by the union during the relevant business year. |
[This Article Newly Inserted by Presidential Decree No. 18113, Nov. 4, 2003]
| Article 16-3 (Limit on Borrowing) |
The limit on the loans that a union is permitted to borrow pursuant to Article 41 (1) of the Act shall be the amount equivalent to 5/100 of total assets as of the end of the immediately preceding business year or its equity capital, whichever is greater. [This Article Newly Inserted by Presidential Decree No. 18113, Nov. 4, 2003]
| Article 16-4 (Limit on Loans for the Same Person) |
| (1) | "Ceiling prescribed by Presidential Decree" in Article 42 of the Act means an amount equivalent to 20/100 of the equity capital or an amount equivalent to 1/100 of total assets as of the end of the immediately preceding business year, whichever is greater. In such cases, the Financial Services Commission may set a ceiling on an amount equivalent to 20/100 of the equity capital and an amount equivalent to 1/100 of total assets, respectively. <Amended by Presidential Decree No. 23316, Nov. 23, 2011> |
| (2) | Notwithstanding paragraph (1), the following loans shall not be included in calculating the amount of loans granted to the same person: <Amended by Presidential Decree No. 20230, Aug. 22, 2007; Presidential Decree No. 20653, Feb. 29, 2008; Presidential Decree No. 22496, Nov. 15, 2010; Presidential Decree No. 26424, Jul. 20, 2015> |
| 1. | A loan secured by a deposit or installment deposit in the union; |
| 2. | A loan secured by the mutual aid premium paid under a mutual aid contract made with the union; |
| 3. | A loan guaranteed by the State, the Bank of Korea (referring to the Bank of Korea under the Bank of Korea Act; hereinafter the same shall apply), or a bank under the Banking Act or a loan secured by securities issued or guaranteed by such institution; |
| 4. | Other loans specified by the Financial Services Commission. |
[This Article Newly Inserted by Presidential Decree No. 18113, Nov. 4, 2003]
| Article 17 (Reserve for Repayments) |
| (1) | The amount of the reserve for repayment that each union shall retain in accordance with Article 43 (1) of the Act shall be 10/100 of the balance of deposits and installment deposits as of the end of the preceding month. |
| (2) | Each union shall deposit an amount equivalent to 50/100 or more (or an amount equivalent to 100/100, if a union is the legal entity under Article 95 (1) of the Act) of the reserve for repayment under paragraph (1) with the National Federation by no later than the fifth day of the following month: Provided, That the Financial Services Commission may, if deemed necessary for the healthier operation of the National Federation or a union, raise the rate of the deposit out of the reserve for repayment with the National Federation. <Amended by Presidential Decree No. 16857, Jun. 27, 2000; Presidential Decree No. 18113, Nov. 4, 2003; Presidential Decree No. 20653, Feb. 29, 2008> |
| (3) | Each union shall keep the reserve for repayment, except the amount deposited with the National Federation in accordance with paragraph (2), in cash or by other means under subparagraph 2 of Article 44 of the Act. <Newly Inserted by Presidential Decree No. 18113, Nov. 4, 2003> |
| (4) | Gains from the management of the reserve for repayment deposited in the National Federation in accordance with Article 43 (2) of the Act shall be disposed of in the following order: <Newly Inserted by Presidential Decree No. 18113, Nov. 4, 2003; Presidential Decree No. 20653, Feb. 29, 2008> |
| 1. | Payment of expenses required for the operation and management of the reserve for repayment; |
| 2. | Payment of interest incurred for the reserve for repayment; |
| 3. | Coverage of losses incurred to the National Federation; |
| 4. | Other methods determined by the Chairperson of the National Federation, obtaining approval of the Financial Services Commission. |
| (5) | Details necessary for the payment of interest and coverage of losses in accordance with paragraph (4) 2 and 3 shall be prescribed by the Financial Services Commission. <Newly Inserted by Presidential Decree No. 18113, Nov. 4, 2003; Presidential Decree No. 20653, Feb. 29, 2008> |
| Article 17-2 (Management of Surplus Funds) |
| (1) | "Financial institution prescribed by Presidential Decree" in subparagraph 2 of Article 44 of the Act means a insured financial company defined in subparagraph 1 of Article 2 of the Depositor Protection Act (hereafter referred to as "insured financial company") or a postal service agency under the Postal Savings and Insurance Act (hereafter referred to as "postal service agency"). <Amended by Presidential Decree No. 20230, Aug. 22, 2007; Presidential Decree No. 27037, Mar. 11, 2016> |
| (2) | The types of securities that a union is permitted to purchase in accordance with subparagraph 3 of Article 44 of the Act in addition to the state bonds and public bonds are as follows: <Amended by Presidential Decree No. 20230, Aug. 22, 2007; Presidential Decree No. 20653, Feb. 29, 2008; Presidential Decree No. 20947, Jul. 29, 2008; Presidential Decree No. 28390, Oct. 17, 2017> |
| 1. | Corporate bonds publicly notified by the Financial Services Commission in view of credibility, credit ratings, etc.; |
| 4. | Other securities specified and publicly notified by the Financial Services Commission as deemed required for the management of surplus funds retained by unions. |
| (3) | No union shall purchase securities referred to in paragraph (2) 2 or 4 in excess of 100/100 of its equity capital as of the end of the immediately preceding business year. <Newly Inserted by Presidential Decree No. 20230, Aug. 22, 2007> |
| (4) | If deemed necessary for the sound management, etc., of surplus funds of unions, the Financial Services Commission may determine and publicly notify the limit on purchase of securities referred to in paragraph (2) 1 or 4, taking into consideration the credit rating of the securities and the risks, etc., in investment ensuing from excessive purchase of such securities issued by the same company. <Newly Inserted by Presidential Decree No. 20230, Aug. 22, 2007; Presidential Decree No. 20653, Feb. 29, 2008> |
[This Article Newly Inserted by Presidential Decree No. 18113, Nov. 4, 2003]
| Article 18 (Extent, etc. of Real Estate for Business Purposes) |
| (1) | The extent of real estate that a union or the National Federation is allowed to acquire for business purposes in accordance with Article 45 of the Act is as follows: |
| 1. | Business facilities (limited to cases where at least 10/100 of the total floor area of a building is used directly for its business purposes); |
| 2. | Real estate used directly as company houses, dormitories, and training facilities; |
| 3. | Real estate used directly for the welfare services under Article 16 (1). |
| (2) | A union or the National Federation may lease part of its business facilities under paragraph (1) 1 to a third party to the extent that such lease shall not cause any inconvenience to union members or member unions. |
| (3) | A union which possesses any real estate for the recovery of its claims pursuant to Article 45 of the Act shall dispose of such real estate in accordance with the methods and procedures determined and publicly notified by the Financial Services Commission. <Newly Inserted by Presidential Decree No. 28390, Oct. 17, 2017> |
| Article 18-2 (Protective Measures for Customer Service Employees) |
“Other measures prescribed by Presidential Decree, such as legal measures necessary for the protection of such employees” in Article 45-2 (1) 4 of the Act means the following: | 1. | Where verbal abuses, sexual harassment, assault, etc. (hereinafter referred to as “verbal abuses, etc.”) committed by a customer are deemed to violate criminal punishment provisions of any applicable Act and there is a request from an employee who suffers damage inflicted by such abusive act: Filing a criminal charge with the competent investigative authority, etc.; |
| 2. | Where a customer’s verbal abuses, etc. do not violate any criminal punishment provision but it is deemed necessary to take measures considering the extent of damage the relevant employee suffers due to such act and the possibility of future damage to the employee at issue as well as other employees: Requesting the competent investigative authority, etc. to take necessary measures; |
| 3. | Offering administrative and procedural assistance necessary for an employee to take measures in person, such as filing a criminal complaint, a criminal charge, or a claim for damages, with the competent investigative authority, etc. against a customer who commits any act of verbal abuses, etc.; |
| 4. | Offering education to prevent verbal abuses, etc. of customers or respond thereto, such as behavioral guidelines; |
| 5. | Other measures determined and publicly notified by the Financial Services Commission in order to protect employees from verbal abuses, etc. by customers. |
[This Article Newly Inserted by Presidential Decree No. 28390, Oct. 17, 2017]
| Article 18-3 (Unions Subject to External Audit) |
[This Article Wholly Amended by Presidential Decree No. 18113, Nov. 4, 2003]
| Article 18-4 (Replacement of External Auditors) |
"Where a union ... falls under any of the causes prescribed by Presidential Decree" in Article 47 (6) of the Act means any of the following cases: <Amended by Presidential Decree No. 20653, Feb. 29, 2008; Presidential Decree No. 26424, Jul. 20, 2015> | 1. | Where it has ever violated the Act, this Decree, or any order issued by the Financial Services Commission or the Governor of the Financial Supervisory Service (hereinafter referred to as "Financial Supervisory Service Governor") pursuant to the Act or this Decree during the preceding three years; |
| 2. | Where it overstates its income or understates its losses in excess of the guidelines prescribed by the Financial Services Commission; |
| 3. | Where the Chairperson of the National Federation deems it necessary to replace the auditor, upon inspection conducted under Article 89 (6) of the Act. |
[This Article Newly Inserted by Presidential Decree No. 18113, Nov. 4, 2003]
Where there is no union president to carry out the liquidation of the union or it is deemed that the union president is not competent to carry out the liquidation, the Chairperson of the National Federation may appoint a member of the union or an employee of the National Federation as the liquidator of the union pursuant to Article 57 (1) of the Act.
| Article 19-2 (Qualifications of Professional Directors) |
"Persons ... who meet the requirements prescribed by Presidential Decree" in Article 71-2 (3) of the Act means persons falling under any of the following subparagraphs: <Amended by Presidential Decree No. 20230, Aug. 22, 2007; Presidential Decree No. 20653, Feb. 29, 2008> | 2. | Any person who is licensed as an attorney-at-law or certified public accountant and has engaged in a business relating to such qualification for five years or longer; |
| 3. | Any person who has worked for a state agency, research institute, or educational institution related to finance, and is specified by the articles of association as having equivalent qualification prescribed in subparagraph 1. |
[This Article Newly Inserted by Presidential Decree No. 18113, Nov. 4, 2003]
| Article 19-3 (Internal Control Standards) |
| (1) | The internal control standards under Article 76-3 (1) of the Act (hereinafter referred to as “internal control standards”) shall include the following matters: <Amended by Presidential Decree No. 20653, Feb. 29, 2008> |
| 1. | Matters concerning the allocation of business affairs and the organizational structure; |
| 2. | Matters concerning the management of risks arising in the course of management of assets or performance of business; |
| 3. | Matters concerning the procedure with which executive officers and employees shall comply in performing their duties; |
| 4. | Matters concerning the establishment of a system which enables information required for making decisions on business management to be communicated efficiently; |
| 5. | Matters concerning the procedure and method for ascertaining whether executive officers and employees comply with the internal control standards and the dispositions imposed on executive officers and employees who fail to comply therewith; |
| 6. | Matters concerning the procedure or standards for preventing unfair trading, including the report on details of securities trading by executive officers and employees; |
| 7. | Matters concerning the procedure for the establishment and revision of the internal control standards; |
| 8. | Matters prescribed by the Financial Services Commission as specific standards for matters under subparagraphs 1 through 7. |
| (2) | When the National Federation intends to establish or revise the internal control standards, it shall refer the standards to its board of directors for resolution. |
| (3) | The Financial Services Commission may recommend to revise the internal control standards in order to prevent recurrence of violations if a violation of relevant statutes or regulations is discovered following the inspection of the Financial Supervisory Service under Article 83 (2) of the Act. <Amended by Presidential Decree No. 20653, Feb. 29, 2008> |
[This Article Newly Inserted by Presidential Decree No. 18113, Nov. 4, 2003]
| Article 19-4 (Duties of Compliance Officers) |
| (1) | When the National Federation appoints or dismisses a compliance officer under Article 76-3 (2) of the Act (hereafter referred to as "compliance officer"), it shall notify the Financial Services Commission of such fact. <Amended by Presidential Decree No. 20653, Feb. 29, 2008> |
| (2) | Each compliance officer shall perform his/her duties with the due care of a good manager, but shall not assume concurrent offices other than the following works: |
| 1. | Works relating to risk management; |
| (3) | Where a compliance officer demands executive officers and employees to furnish him/her with data or information while performing his/her duties, the National Federation shall ensure that the executive officer or employee concerned complies with such demand in good faith. |
| (4) | The National Federation shall not take unfavorable personnel actions against any person who has served as a compliance officer on any of the grounds relating to the performance of his/her duties as a compliance officer. |
[This Article Newly Inserted by Presidential Decree No. 18113, Nov. 4, 2003]
| Article 19-5 (Borrowings, etc.) |
| (1) | "Cases prescribed by Presidential Decree, considering the purpose, size, etc. of loan" in Article 78 (5) of the Act means cases where the National Federation borrows a loan, the maturity of which shall not exceed 30 days, from an insured financial company within the limit of 3/100 of its total assets as of the end of the immediately preceding business year in order to secure liquidity temporarily. <Amended by Presidential Decree No. 27037, Mar. 11, 2016> |
| (2) | "Cases prescribed by Presidential Decree, considering the purpose, size, etc. of investment" in Article 78 (5) of the Act means cases where the National Federation acquires less than 15/100 of outstanding voting stocks (including shares in investments) of any other company for the purposes of investment within the limit of 3/100 of its total assets as of the end of the immediately preceding business year. |
[This Article Newly Inserted by Presidential Decree No. 18113, Nov. 4, 2003]
| Article 19-6 (Size of Loans Granted by National Federation) |
| (1) | The size of loans granted by the National Federation to any person other than unions pursuant to Article 78-2 (2) of the Act may not exceed the guidelines prescribed by the Financial Services Commission within the limit of 1/3 of the total assets in the account for the receipt and management of the funds remaining after deducting the reserve for repayment (hereafter referred to as "credit deposits") from the accounts for the management of business under Article 78 (1) 5 (a) of the Act (hereafter referred to as "total assets of credit deposits"). <Amended by Presidential Decree No. 20653, Feb. 29, 2008> |
| (2) | The scope of loans granted, pursuant to Article 78-2 (2) of the Act, by the National Federation to any person other than unions is limited to the parts under each of the following categories: <Amended by presidential Decree No. 26424, Jul. 20, 2015> |
| 1. | When any person other than unions is a private individual: Parts where the relevant union cannot grant loans to the private individual due to the limits on loans, etc., for the same person under Article 42 of the Act; |
| 2. | When any person other than unions is a legal entity: Parts for which it is necessary to additionally grant loans to the legal entity where the relevant union has granted loans more than 50/100 of the limits on loans, etc., for the same person pursuant to Article 42 of the Act. |
| (3) | Notwithstanding paragraph (2) 2, where the National Federation and a temporary organization in which any of the following persons participating as a member grant loans to the legal entity shared by the National Federation under the conditions of loans which are agreed in advance between members, the National Federation may grant loans regardless of whether the relevant union grants loans to the legal entity or not: <Amended by Presidential Decree No. 26424, Jul, 20, 2015; Presidential Decree No. 28152, Jun, 27, 2017> |
| (4) | The limits on loans for any person who is not a union of the National Federation pursuant to Article 78-2 (2) of the Act shall be as follows: <Newly Inserted by Presidential Decree No. 26424, Jul. 20, 2015> |
| 1. | Loans to the same private individual: 300 million won; |
| 2. | Loans to the same legal entity: 30 billion won (50 billion won for loans specified in paragraph (3) with the exception of its subparagraphs); |
| 3. | Loans to the same person and persons who share credit risk with such a person (hereafter referred to as “same borrowers”): Within the scope of 5/100 of the size of loans granted to person other the unions referred to in paragraph (1); |
| 4. | Total amount of large loans to the same person and same borrowers in excess of 15 billion won (30 billion won for loans specified in paragraph (3) with the exception of its subparagraphs): Within the scope of 50/100 of the size of loans granted to persons other than the unions referred to in paragraph (1). |
| (5) | Specific criteria for calculation of limits on loan such as loans not included in the limits on loans under paragraph (4) shall be prescribed and notified by the Financial Services Commission. <Newly Inserted by Presidential Decree No. 26424, Jul. 20, 2015> |
[This Article Newly Inserted by Presidential Decree No. 18113, Nov. 4, 2003]
| Article 19-7 (Management of Fund) |
| (1) | "Financial institution specified by Presidential Decree" in Article 79 (1) 3 of the Act means an insured financial company or a postal service office. <Amended by Presidential Decree No. 27037, Mar. 11, 2016> |
| (2) | "Other manners prescribed by Presidential Decree" in Article 79 (1) 4 of the Act means any of the following manners: <Amended by Presidential Decree No. 20230, Aug. 22, 2007; Presidential Decree No. 26039, Jan. 6, 2015> |
| 1. | A loan to any person other than a union (limited to credit deposits); |
| 2. | Discount of bill for a union; |
| (3) | The types of securities that the National Federation may purchase under Article 79 (2) of the Act shall be classified as follows: <Amended by Presidential Decree No. 20230, Aug. 22, 2007; Presidential Decree No. 20653, Feb. 29, 2008; Presidential Decree No. 20947, Jul. 29, 2008; Presidential Decree No. 26039, Jan. 6, 2015> |
| 1. | Securities that may be purchased with the reserve for repayment: |
| (b) | Corporate bonds publicly notified by the Financial Services Commission, considering credibility, credit ratings, etc.; |
| (c) | Collective investment securities of a securities collective investment scheme under subparagraph 1 of Article 229 of the Financial Investment Services and Capital Markets Act or beneficiary certificates issued by a trust business entity under the same Act, for which the ratio of listed stocks included in underlying assets thereof shall be 30/100 or less; |
| (e) | Other securities specified and publicly notified by the Financial Services Commission as deemed necessary for the management of the reserve for repayment; |
| 2. | Securities that may be purchased with credit deposits: |
| (b) | through (d) Deleted; <by Presidential Decree No. 26039, Jan. 6, 2015> |
| (e) | Other securities specified and publicly notified by the Financial Services Commission as deemed necessary for the management of the credit deposits. |
| (4) | The limits on securities that the National Federation may purchase under Article 79 (2) of the Act are as follows: <Amended by Presidential Decree No. 20230, Aug. 22, 2007; Presidential Decree No. 20653, Feb. 29, 2008; Presidential Decree No. 20947, Jul. 29, 2008; Presidential Decree No. 26039, Jan. 6, 2015> |
| 1. | The National Federation shall not purchase securities referred to in paragraph (3) 1 (c) in excess of the limit specified and publicly notified by the Financial Services Commission within the limit of 10/100 of the funds for management of the reserve for repayment as of the end of the preceding month; |
| 2. | The National Federation shall ensure that its purchase amount of securities falling under the following items does not exceed the limit specified and publicly notified by the Financial Services Commission within the scope of 30/100 of its gross assets amount of credit deposits as of the end of the preceding month. In such cases, the purchase amount of securities falling under item (b) shall be the maximum amount of investments to both equity securities provided for in the relevant collective investment agreement (referring to equity securities under Article 4 (4) of the Financial Investment Services and Capital Markets Act; hereinafter the same shall apply) and derivatives for any purpose other than avoiding risk: |
| 3. | The National Federation shall ensure that the aggregate purchase amount of securities excluding the securities which fall under the following items among those securities under Article 4 of the Financial Investment Services and Capital Markets Act does not exceed the limit specified and publicly notified by the Financial Services Commission within the scope of 40/100 of the gross assets amount of credit deposits as of the end of the preceding month: |
| (a) | Securities falling under any item of subparagraph 2; |
| (5) | If necessary for the sound management, etc., of funds of the National Federation, the Financial Services Commission may specify and publicly notify the purchase limit of the securities as classified in the following subparagraphs in consideration of credit rating thereof, the investment risk arising from excessive purchase of any securities issued by the same company, and other similar matters: <Newly Inserted by Presidential Decree No. 20230, Aug. 22, 2007; Presidential Decree No. 20653, Feb. 29, 2008; Presidential Decree No. 26039, Jan. 6, 2015> |
| 1. | Securities under paragraph (3) 1 (b) and (e); |
| 2. | Securities under paragraph (3) 2 (e) and debt securities excluding those prohibited to be purchased under paragraph (3) 2 (a). |
| (6) | Other matters necessary for the management of funds of the National Federation shall be prescribed by the Financial Services Commission. <Amended by Presidential Decree No. 20230, Aug. 22, 2007; Presidential Decree No. 20653, Feb. 29, 2008> |
[This Article Newly Inserted by Presidential Decree No. 18113, Nov. 4, 2003]
| Article 19-8 (Limit of Guarantee for Members) |
| (1) | "Amount prescribed by Presidential Decree" in Article 80-2 (1) of the Act means each of the following amount: <Amended by Presidential Decree No. 20230, Aug. 22, 2007; Presidential Decree No. 20885, Jun. 25, 2008; Presidential Decree No. 24096, Sep. 7, 2012; Presidential Decree No. 26424, Jul. 20, 2015> |
| 1. | Principal and interest of deposits and installment savings that union members, etc., (referring to the union members, etc., under Article 80-2 (1) of the Act; hereinafter the same shall apply) deposited with the union. In such case, the interest shall be limited to the amount calculated by multiplying the principal by the interest rate fixed by the Fund Management Committee (hereinafter referred to as the "Committee") under Article 80-2 (3) of the Act in consideration of the average interest rate for one-year term deposits in banks; |
| 2. | Mutual aid money for which union members, etc., have a claim against the National Federation or a union under a mutual aid contract, and other pecuniary claims as agreed; |
| 3. | Special deposits of the National Federation to clear cashier's checks. |
| (2) | Notwithstanding paragraph (1), deposits and installment savings paid to the union by any of the following persons shall be excluded from the principal and interest of deposits and installment savings under paragraph (1) 1: <Newly Inserted by Presidential Decree No. 26424, Jul. 20, 2015; Presidential Decree No. 27037, Mar. 11, 2016> |
| 1. | The State and local government; |
| 3. | Financial Supervisory Service; |
| 5. | Insured financial companies. |
| (3) | The limit on the guarantee under which the National Federation shall perform obligations of a union to the same person in lieu of the union or other accounts of the National Federation pursuant to Article 80-2 (4) of the Act shall be 50 million won. <Amended by Presidential Decree No. 20885, Jun. 25, 2008; Presidential Decree No. 26424, Jul. 20, 2015> |
[This Article Newly Inserted by Presidential Decree No. 18113, Nov. 4, 2003]
| Article 19-9 (Organization and Operation of Committee) |
| (1) | The Committee shall consist of nine members, including one chairperson. |
| (2) | The Director for Inspection and Supervision of the National Federation shall serve as the chairperson, and the Committee shall be comprised of the following members: <Amended by Presidential Decree No. 20653, Feb. 29, 2008> |
| 1. | Two persons commissioned by the Chairperson of the National Federation from among union presidents; |
| 2. | One person designated by the Chairperson of the National Federation from among the professional directors under Article 71-2 (3) of the Act; |
| 3. | One person designated by the Chairman of the Financial Services Commission from among public officials under his/her control; |
| 4. | One person designated by the Minister of Economy and Finance from among public officials under his/her control; |
| 5. | One person commissioned by the Financial Services Commission from among those who possess sound knowledge and experience in finance, accounting, or law; |
| 6. | Two persons commissioned by the Governor of the Financial Supervisory Service from among those having sound knowledge and experience in finance, accounting, or law. |
| (3) | The term of office of members commissioned pursuant to paragraph (2) shall be three years. |
[This Article Newly Inserted by Presidential Decree No. 18113, Nov. 4, 2003]
| Article 19-10 (Operation of Committee) |
| (1) | The chairperson shall call meetings of the Committee and take the chair of such meetings. |
| (2) | Meetings of the Committee shall adopt resolutions with the attendance of a majority of incumbent members and by an affirmative vote of a majority of the members present at the meeting. |
| (3) | Other necessary matters concerning the operation of the Committee shall be determined by the chairperson, subject to a resolution of the Committee. |
[This Article Newly Inserted by Presidential Decree No. 18113, Nov. 4, 2003]
| Article 19-11 (Contributions) |
| (1) | Contributions paid by a union pursuant to Article 80-3 (1) 1 of the Act and contributions from other accounts of the National Federation under subparagraph 2 of the same paragraph shall be the amount calculated by multiplying the annual balance of deposits, etc. (referring to deposits, etc. under Article 80-2 (1) of the Act; hereinafter the same shall apply) by the rate fixed by the Committee (hereafter referred to as the "rate" in this Article) within the limits not exceeding 5/1,000: Provided, That in cases of mutual aid money, etc. under Article 19-8 (1) 2, it means the amount calculated according to the following formula: [(A+B)÷2×Rate]. <Amended by Presidential Decree No. 24096, Sep. 7, 2012> |
| (2) | "A" in the formula under the proviso of paragraph (1) shall be the total amount of amounts pursuant to the following classification, and "B" shall be fees for mutual aid (referring to fees for mutual aid received in the immediately preceding business year of the business year to which the period for payment of contributions belongs) received according to mutual aid contracts: <Newly Inserted by Presidential Decree No. 24096, Sep. 7, 2012> |
| 1. | A contract under which a reason for payment of mutual aid money, etc. (referring to the amount agreed to be paid or distributed to a contracting party to mutual aid where a reason for payment of mutual aid money occurs under a mutual aid contract or a contracting party to mutual aid requests revocation of such contract; hereafter referred to as "mutual aid money, etc." in this paragraph) has not occurred as of the end of each period for settlement of accounts: Accumulated fees for mutual aid and prepaid fees for mutual aid, both of which have been calculated based on the amount that should be paid at the time of revocation of a mutual aid contract according to methods stipulated in the mutual aid regulations pursuant to Article 97 of the Act by item of mutual aid or by lapse of the period of a contract; |
| 2. | A contract under which a reason for payment of mutual aid, etc. has occurred as of the end of each period for settlement of accounts: The total amount of the following amounts: |
| (a) | The amount that has been determined to be paid but has not been paid yet; |
| (b) | Where mutual aid money has not been paid yet because the amount that should be paid has not been determined, the estimated amount of such mutual aid money; |
| (c) | In cases of the pendency of action in relation to the amount of mutual aid money, etc. to be paid, the value of such action; |
| 3. | The amount accumulated by the National Federation and a union for distribution to contracting parties to mutual aid according to mutual aid contracts. |
| (3) | Deleted. <by Presidential Decree No. 29991, Jul. 16, 2019> |
| (4) | Each union shall pay the contribution under paragraph (1) within three months from the date each business year ends, and shall also pay the late payment charge, as prescribed by the Committee where it fails to pay the contribution by the deadline. <Amended by Presidential Decree No. 24096, Sep. 7, 2012> |
| (5) | Other matters necessary for the payment of contributions shall be prescribed by the Committee. <Amended by Presidential Decree No. 24096, Sep. 7, 2012> |
[This Article Newly Inserted by Presidential Decree No. 18113, Nov. 4, 2003]
| Article 19-12 (Management and Operation of Fund) |
| (1) | The Fund shall be managed as a special account. |
| (2) | Spare cash of the Fund may be managed by any of the following means: <Amended by Presidential Decree No. 27037, Mar. 11, 2016> |
| 1. | Depositing it in an insured financial company or a postal service agency; |
| 2. | Other methods prescribed by the Committee. |
| (3) | Accounting of the Fund shall be conducted by objects of guarantee under subparagraphs of Article 19-8 (1). <Newly Inserted by Presidential Decree No. 24096, Sep. 7, 2012> |
[This Article Newly Inserted by Presidential Decree No. 18113, Nov. 4, 2003]
| Article 19-13 (Purpose of Fund) |
| (1) | The Fund shall be used for the following purposes: <Amended by Presidential Decree No. 20230, Aug. 22, 2007; Presidential Decree No. 20653, Feb. 29, 2008; Presidential Decree No. 20885, Jun. 25, 2008> |
| 1. | Where a union or other accounts of the National Federation is unable to pay deposits, etc., pursuant to Article 80-2 (4) of the Act, payment of such deposits, etc.; |
| 2. | Financial aid for a merger of any of the following unions or for the transfer of contracts or for business normalization under Article 86-4 of the Act: |
| (a) | A union subject to the management under administratorship by an administrator appointed by the Financial Services Commission pursuant to Article 86 of the Act; |
| (b) | A union, the financial structure of which the Committee deems necessary to be improved for business normalization; |
| 4. | Other purposes determined by the Committee, including the payment of expenses required for the management and operation of the Fund. |
| (2) | When granting financial aid under paragraph (1) 2, the National Federation shall consider as to how fairly the person liable for insolvency of the union subject to the financial aid takes his/her shares of losses of the union and how much the union is making efforts to restructure itself. |
| (3) | When granting financial aid under paragraph (1) 2, the National Federation shall apply means that minimize losses of the Fund by conducting an actual inspection on the assets and liabilities of the union in advance to grasp the objective view of the current status of business management and finance of the union. <Newly Inserted by Presidential Decree No. 20230, Aug. 22, 2007; Presidential Decree No. 26424, Jul. 20, 2015> |
| (4) | The National Federation shall prepare and keep data proving that the financial aid under paragraph (1) 2 has been granted in compliance with paragraph (3). <Newly Inserted by Presidential Decree No. 20230, Aug. 22, 2007> |
| (5) | Notwithstanding paragraph (3) and (4), if the Committee deems that poor management, etc. of a union is likely to significantly undermine the sound development of a union and safety of financial system, the National Federation may provide financial aid by means other than those pursuant to paragraph (3). <Amended by Presidential Decree No. 26424, Jul. 20, 2015> |
| (6) | Matters necessary for the financial aid under paragraph (1) 2, the principle of minimum expenditure and the detailed criteria and procedures for related data under paragraphs (3) through (5) shall be prescribed by the National Federation after deliberation by the Committee. <Newly Inserted by Presidential Decree No. 26424, Jul. 20, 2015> |
[This Article Newly Inserted by Presidential Decree No. 18113, Nov. 4, 2003]
| Article 19-14 (Withholding Payment of Deposits, etc.) |
| (1) | "Amount prescribed by Presidential Decree" in Article 80-4 (3) of the Act means any of the following amounts: <Amended by Presidential Decree No. 20947, Jul. 29, 2008; Presidential Decree No. 28283. Sep. 5, 2017> |
| 1. | The amount of claims for the deposits and installment savings that a union member, etc. has provided the union as security for him/herself or a third party and the amount of guaranteed obligations that the union member or the person owes to the union; |
| (2) | The Committee shall, when it withholds repayment of deposits under Article 80-2 (4) of the Act pursuant to paragraph (1), deliver a written statement containing the following details to the union member, etc. who claims the payment of deposits: |
| 1. | The amount of deposits, etc. the repayment of which is withheld; |
| 2. | The grounds for withholding repayment of deposits, etc.; |
| 3. | The time period for withholding repayment of deposits, etc.; |
| 4. | The procedure and method for filing claims for repayment of withheld deposits, etc. when the grounds for withholding repayment terminate or the time period for withholding the repayment expires. |
[This Article Newly Inserted by Presidential Decree No. 18113, Nov. 4, 2003]
| Article 19-15 (Classification of Public Institutions) |
“Public institution prescribed by Presidential Decree” in the former part of Article 80-6 (1) of the Act means each of the following institutions: | 2. | Legal entities established under statutes; |
[This Article Newly Inserted by Presidential Decree No. 26424, Jul. 20, 2015]
| Article 19-16 (Reduction of or Exemption from Contributions) |
| (1) | Where the amount of reserves of the Fund as of the end of the immediately preceding fiscal year of the National Federation becomes not less than the lower limit or less than the upper limit of the target size of reserves (hereinafter referred to as "target size of reserves") under Article 80-7 (1) of the Act pursuant to paragraph (4) of the same Article, the National Federation shall reduce contributions of the relevant fiscal year paid by unions through a resolution adopted by the Committee. |
| (2) | Where the amount of reserves of the Fund as of the end of the immediately preceding fiscal year of the National Federation becomes not less than the upper limit of the target size of reserves pursuant to Article 80-7 (4) of the Act, the National Federation shall exempt unions from contributions of the relevant fiscal year paid by them through a resolution adopted by the Committee. |
| (3) | Necessary matters concerning specific procedures, methods, etc. for setting the target size of reserves and reducing and exempting from contributions under paragraphs (1) and (2) shall be prescribed by the National Federation through a resolution adopted by the Committee. |
| (4) | The National Federation shall post a notice containing matters determined pursuant to paragraph (3) on its website. |
[This Article Newly Inserted by Presidential Decree No. 29991, Jul. 16, 2019]
| Article 20 (Allotted Charges) |
| Article 20-2 (Guidelines for Soundness in Business Management) |
The guidelines for soundness in business management which are to be prescribed by the Financial Services Commission pursuant to Article 83-3 (1) 1 through 5 of the Act shall include the following: <Amended by Presidential Decree No. 20653, Feb. 29, 2008; Presidential Decree No. 24096, Sep. 7, 2012> | 1. | Matters concerning soundness in financial structure: |
| (a) | The equity capital-to-assets ratio; |
| (b) | The ratio of the appropriation for a bad debts to the amount of mandatory reserves; |
| (c) | The ratio of the retirement benefit appropriation fund to the estimated amount of retirement allowances; |
| 2. | Matters concerning soundness of assets: |
| (a) | The extent of assets subject to the classification of soundness of assets; |
| (b) | The grades and standards for the classification of soundness of assets; |
| 3. | Matters concerning the accounting and settlement of accounts: |
| (a) | Guidelines for the indication of the financial status and the state of profit or loss; |
| (b) | Guidelines for the accumulation of allowances and reserves; |
| (c) | Guidelines for writing-off bad debts; |
| 4. | Matters concerning risk management: |
| (a) | The basic policy on risk management; |
| (b) | Management's roles for risk management; |
| (c) | The internal control system required for risk management; |
| 5. | Other matters necessary for securing the soundness of business management: Standards for loans against deposits, installment savings, investments, etc. |
[This Article Wholly Amended by Presidential Decree No. 16857, Jun. 27, 2000]
| Article 21 (Reporting on Unions subject to Revocation of Authorization for Establishment) |
When the Governor of the Financial Supervisory Service discovers in the course of guidance, inspection, or supervision of a union that a ground exists for the revocation of authorization for establishment of the union under Article 85 (2) of the Act, he/she shall immediately report it to the Financial Services Commission by accompanying related data. <Amended by Presidential Decree No. 16323, May 24, 1999; Presidential Decree No. 16857, Jun. 27, 2000; Presidential Decree No. 20230, Aug. 22, 2007; Presidential Decree No. 20653, Feb. 29, 2008; Presidential Decree No. 26424, Jul. 20, 2015>
| Article 21-2 (Requirements for Business Administration) |
| (1) | "Illegal or non-performing loans as prescribed by Presidential Decree" in Article 86 (1) 1 of the Act means those falling under any of the following subparagraphs: |
| 1. | The amount of non-performing loans, where the amount of non-performing loans out of the aggregate of loans, etc. under subparagraph 5 (a) of Article 2 of the Act exceeds the greater of its equity capital or the amount of investments; |
| 2. | The amount of non-performing loans, where the aggregate of the non-performing loans exceeds two times the greater of its equity capital or the amount of investments. |
| (2) | "If it falls within the criteria as prescribed by Presidential Decree" in Article 86 (1) 4 of the Act means cases where it fails to meet the following standards. In such cases, further specific standards for each subparagraph shall be prescribed by the Financial Services Commission: <Newly Inserted by Presidential Decree No. 18113, Nov. 4, 2003; Presidential Decree No. 20653, Feb. 29, 2008> |
| 1. | Standards for the equity capital kept in preparation against credit risk of the union, including the equity-capital-to-assets ratio; |
| 2. | Standards for the soundness of assets owned by a union, including claims for repayment of loans; |
| 3. | Standards for the evaluation of the actual state of business management. |
| (3) | A union shall, when it becomes subject to business administration, provide public announcement thereof at the trading floors of its head office and branch offices without delay, and shall publish the public announcement in a daily newspaper circulated in the area where the head office of the union is located within two business days in accordance with Article 86 (6). |
[This Article Newly Inserted by Presidential Decree No. 16857, Jun. 27, 2000]
| Article 21-3 (Methods of Business Administration) |
| (1) | The scope of the business administration under Article 86 (1) of the Act is as follows: <Amended by Presidential Decree No. 20653, Feb. 29, 2008> |
| 1. | Management of supply of and demand for funds, the extension of credit, and the receipt of deposits; |
| 2. | Collection of illegal and non-performing loans and securing claims therefor; |
| 3. | Rectification of illegal and wrongful acts; |
| 4. | Disposal of non-performing assets; |
| 5. | Improvement of the management of human resources and organization; |
| 6. | Other matters prescribed by the Financial Services Commission concerning the management of unions. |
| (2) | Further details concerning business administration, including the method of business management by business administrators and reporting on the matters under business administration shall be prescribed by the Financial Services Commission. <Amended by Presidential Decree No. 20653, Feb. 29, 2008> |
[This Article Newly Inserted by Presidential Decree No. 16857, Jun. 27, 2000]
| Article 21-4 (Time Period for Business Administration) |
The time period for business administration under Article 86 of the Act shall be six months, but may be extended only once by no more than six months, if the Financial Services Commission deems it necessary to protect union members and promote business normalization: Provided, That the time period of such business administration may be extended until the bankruptcy administrator under Article 355 of the Debtor Rehabilitation and Bankruptcy Act is appointed, where an application for bankruptcy is filed in accordance with Article 88 of the Act. <Amended by Presidential Decree No. 20142, Mar. 29, 2006; Presidential Decree No. 20653, Feb. 29, 2008> [This Article Newly Inserted by Presidential Decree No. 16857, Jun. 27, 2000]
| Article 21-5 (Suspension of Payment for Obligations) |
| (1) | The obligations for which the Financial Services Commission has the power to suspend the payment pursuant to Article 86 (2) of the Act shall be those that do not fall under any of the following subparagraphs: <Amended by Presidential Decree No. 18113, Nov. 4, 2003; Presidential Decree No. 19010, Aug. 19, 2005; Presidential Decree No. 20142, Jun. 29, 2007; Presidential Decree No. 20653, Feb. 29, 2008> |
| 1. | Obligations to pay a tax, public due, or rent; |
| 2. | Obligations to pay wages for the preceding three months and compensation for a disaster, the right to preferential payment for which is granted pursuant to Article 38 (2) of the Labor Standards Act, and obligations to pay retirement benefits for the preceding three years, the right to preferential payment for which is granted pursuant to Article 11 (2) of the Act on the Guarantee of Workers' Retirement Benefits; |
| 3. | Funds for the settlement of domestic currency exchange; |
| 4. | Funds deposited temporarily for vicariously conducting the business affairs of the State, a public organization, the National Federation, or a financial institution; |
| 5. | Other obligations deemed necessary by the Financial Services Commission for the maintenance and management of the union. |
| (2) | "Where there is any ground as prescribed by Presidential Decree, including where the normalization of its management is possible" in Article 86 (5) of the Act means any of the following cases: |
| 1. | Where it is deemed that a union's obligations can be fully paid out of its assets; |
| 2. | Where it is deemed that a union is unable to fully pay its obligations, but it is possible to protect its members by a merger with another union; |
| 3. | Where it is determined that a union is unable to fully pay its obligations, but it is possible to normalize its business within three years with financial aid from the National Federation or by its own efforts, etc. for self-rescue. |
| (3) | The Financial Services Commission shall, when the suspension of payment for obligations, imposed upon a union pursuant to paragraph (2), is completely lifted, terminate the business administration of the union without delay. <Amended by Presidential Decree No. 20653, Feb. 29, 2008> |
[This Article Newly Inserted by Presidential Decree No. 16857, Jun. 27, 2000]
| Article 21-6 (Extent of Related Persons) |
"Person who has any such interest in an union or any such special relationship therewith as prescribed by Presidential Decree" in the main sentence of Article 86-2 (1) of the Act means any of the following persons: | 1. | Any executive officer or employee who is liable for the insolvency of the union and his/her spouse or his/her relative by blood or by marriage in the fourth degree or closer; |
| 2. | Any person who has borrowed an illegal or non-performing loan from the union and his/her spouse or his/her relative by blood or by marriage in the fourth degree or closer. |
[This Article Newly Inserted by Presidential Decree No. 16857, Jun. 27, 2000]
| Article 22 (Criteria for Recommendation of Mergers) |
Pursuant to Article 89 (4) of the Act, the Financial Services Commission may prescribe the criteria necessary when the Chairperson of the National Federation recommends a union that falls under any of the following subparagraphs to merge with another union or requests such union to take measures for improving its financial state, such as disposal of its own assets and downsizing of its organization: <Amended by Presidential Decree No. 20653, Feb. 29, 2008> | 1. | A union in whose case a result of the analysis and evaluation of data in accordance with Article 89 (3) of the Act reveals that it fails to meet the guidelines for soundness of business management under Article 83-3; |
| 2. | A union that needs to make improvement in its business management the analysis and evaluation of data in accordance with Article 89 (3) of the Act reveals that its financial state or management is unsound. |
[This Article Newly Inserted by Presidential Decree No. 16857, Jun. 27, 2000]
| Article 23 Deleted. <by Presidential Decree No. 16249, Apr. 19, 1999> |
| Article 24 (Entrustment of Authority) |
| (1) | Pursuant to Article 96 (1) of the Act, the Financial Services Commission shall entrust the Governor of the Financial Supervisory Service with its authority to: <Amended by Presidential Decree No. 23316, Nov. 23, 2011; Presidential Decree No. 29394, Dec. 18, 2018> |
| 4-2. | Analyze and evaluate the actual conditions of management for the supervision of affairs of unions and the National Federation under Article 83 (1) of the Act; |
| 5. | Control matters relating to the public disclosure of important information and data relating to the status of business management under Article 83-2 of the Act; |
| 10. | Suspend the payment for obligations, suspend the performance of executive officers' duties, or conduct asset inspections pursuant to Article 86 (2) of the Act; |
| 12. | Lift the suspension of payment for obligations or suspension of performance of executive officers' duties pursuant to Article 86 (5) of the Act; |
| 14. | Issue notices of business administration and request to register such business administration pursuant to Article 86-3 of the Act; |
| 22. | Recommend the revision of the internal control standards pursuant to Article 19-3 (3); |
| 23. | Accept notices on appointment or dismissal of compliance officers pursuant to Article 19-4 (1). |
| (2) | Pursuant to Article 96 (1) of the Act, the Financial Services Commission shall entrust the Chairperson of the National Federation with its authority to publicly notify the work process prescribed in Article 39 (3) of the Act. <Newly Inserted by Presidential Decree No. 23316, Nov. 23, 2011> |
| (3) | The authority which the Governor of the Financial Supervisory Service may entrust to the Chairperson of the National Federation shall be as follows: <Amended by Presidential Decree No. 16857, Jun. 27, 2000; Presidential Decree No. 20230, Aug. 22, 2007; Presidential Decree No. 23316, Nov. 23, 2011> |
| 2. | To demand unions to submit reports or data on their business or assets, demand persons concerned to make appearances and make statements in their favor pursuant to Article 83 (3) of the Act; |
| 3. | To demand unions to take measures against executive officers or employees pursuant to Article 84 (1) 2 or 3; |
| 4. | To appoint temporary executive officers and request to register such appointments pursuant to Article 84 (3) and (4). |
| (4) | Whenever the Governor of the Financial Supervisory Service exercises the authority under any provision of paragraph (1) 3, 9, 10, 12, 13, 15 through 17, 19 and 20, he/she shall report it to the Financial Services Commission. <Amended by Presidential Decree No. 16249, Apr. 19, 1999; Presidential Decree No. 16857, Jun. 27, 2000; Presidential Decree No. 20230, Aug. 22, 2007; Presidential Decree No. 20653, Feb. 29, 2008; Presidential Decree No. 23316, Nov. 23, 2011> |
| Article 24-2 (Management of Sensitive Information and Personally Identifiable Information) |
| (1) | The Financial Services Commission (including persons entrusted with the authority of the Financial Services Commission pursuant to Article 24) or the Governor of the Financial Supervisory Service (including persons entrusted with the authority of the Governor of the Financial Supervisory Service pursuant to Article 24) may manage data containing information on criminal history records prescribed in subparagraph 2 of Article 18 of the Enforcement Decree of the Personal Information Protection Act, resident registration numbers, passport numbers or alien registration numbers prescribed in subparagraph 1, 2 or 4 of Article 19, where it is unavoidable to perform the following affairs: <Amended by Presidential Decree No. 25532, Aug. 6, 2014; Presidential Decree No. 29991, Jul. 16, 2019> |
| 2. | Affairs concerning supervision, reporting, inspection, etc. and follow-up measures pursuant to Article 83 of the Act; |
| (2) | The National Federation or the Chairperson of the National Federation may manage data containing personal information prescribed in paragraph (1), with the exception of its subparagraphs, where it is unavoidable to perform the following affairs: <Amended by Presidential Decree No. 25532, Aug. 6, 2014; Presidential Decree No. 29991, Jul. 16, 2019> |
| (3) | Any union (including a union under Article 95 (1) in cases of subparagraphs 2 and 3) or the president thereof may manage data containing personal information under paragraph (1), with the exception of its subparagraphs, where it is unavoidable to perform any of the following affairs: <Newly Inserted by Presidential Decree No. 25532, Aug. 6, 2014> |
| 1. | Affairs concerning verification of restriction on qualification for executive officers, etc. under Article 28 of the Act; |
| (4) | Where it is unavoidable to perform the following affairs, any union or the National Federation may manage data containing information on health (hereafter referred to as “health information” in this paragraph) among sensitive information under Article 23 of the Personal Information Protection Act or resident registration numbers, passport numbers, licence numbers of driver’s licences, or alien registration numbers (hereafter referred to as “resident registration numbers, etc.” in this paragraph) under Article 19 of the Enforcement Decree of the same Act: <Newly Inserted by Presidential Decree No. 25532, Aug. 6, 2014; Presidential Decree No. 26039, Jan. 6, 2015> |
| 1. | For affairs concerning the conclusion, maintenance, and management of mutual aid agreements for mutual aid service and the payment of mutual aid money under Article 39 (1) 3 or 78 (1) 6 of the Act: Health information or resident registration numbers, etc. of the signatories of and the participants in mutual aid agreements; |
| 2. | For affairs concerning the conclusion, maintenance, and management of a mutual aid agreement for third parties’ benefits and the payment, etc. of mutual aid money under Articles 639 and 664 of the Commercial Act: Health information or resident registration numbers, etc. of the participants in mutual aid service; |
| 3. | For affairs for discharging liability for indemnification against third parties under Articles 664, 719 (including reinsurance contracts to which Article 726 of the Commercial Act applies mutatis mutandis) and 726-2 of the Commercial Act: Health information or resident registration numbers, etc. of the third parties; |
| 5. | For affairs concerning the conclusion, maintenance, and management of group mutual aid contracts and the payment of mutual aid money under Articles 664 and 735-3 of the Commercial Act: Health information or resident registration numbers, etc. of the participants in mutual aid service. |
[This Article Newly Inserted by Presidential Decree No. 23488, Jan. 6, 2012]
| Article 24-3 (Re-Examination of Regulation) |
The Financial Services Commission shall re-examine the appropriateness of the following matters and take necessary measures for improvement, etc. every three years from the base date set forth below (referring to until the day before the base date of every third year): <Amended by Presidential Decree No. 28283. Sep. 5, 2017>
| 1. | The extent, etc. of common bond for each type of unions under Article 12: January 1, 2014; |
| 2. | Eligibility for union membership under Article 13: January 1, 2014; |
| 3. | The limit on loans that a union is permitted to borrow under Article 16-3: January 1, 2014; |
| 4. | The extent, etc. of real estate that a union or the National Federation is allowed to acquire for business purposes under Article 18: January 1, 2014; |
| 5. | The reference amount of total assets for a union subject to external audit under Article 18-3: January 1, 2014; |
| 6. | The methods, etc. of fund management by the National Federation under Article 19-7: January 1, 2014. |
[This Article Newly Inserted by Presidential Decree No. 25050, Dec. 30, 2013]
| Article 25 (Criteria for Imposition of Administrative Fines) |
[This Article Wholly Amended by Presidential Decree No. 28283. Sep. 5, 2017]
ADDENDA
Article 1 (Enforcement Date)
This Decree shall enter into force on April 1, 1998.
Article 2 (Transitional Measures concerning Welfare Services)
Local community development projects implemented by a union pursuant to former provisions before this Decree enters into force shall be deemed to have been approved by the Chairperson of the National Federation pursuant to the amended provision of Article 16 (2). Article 3 Deleted. <by Presidential Decree No. 16249, Apr. 19, 1999>
Article 4 (Special Exception to Real Estate for Business Purposes)
Real estate owned by the former National Federation of Credit Unions for business purposes shall be deemed real estate owned by the National Federation for business purposes until December 31, 2003, notwithstanding the amended provisions of Article 18.
ADDENDA <Presidential Decree No. 16249, Apr. 19, 1999>
| (1) | (Enforcement Date) This Decree shall enter into force on the date of its promulgation. |
| (2) | (Transitional Measures Following Change in Common Bond) Where the extent of common bond of a local union established pursuant to former provisions as of the date this Decree enters into force deviate from the boundary of a single Si/ (which shall be limited to a Si without any Gu established therein) Gun/Gu, it may maintain its common bond as before, notwithstanding the amended provisions of Article 12 (1) 1. |
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.
ADDENDA <Presidential Decree No. 16857, Jun. 27, 2000>
Article 1 (Enforcement Date)
This Decree shall enter into force on the date of its promulgation.
Article 2 (Transitional Measures concerning Equity Capital)
| (1) | In calculating the limit on loans that may be borrowed by a union in accordance with Article 41 of the Act, the former provisions shall be applicable to loans borrowed by a union before this Decree enters into force, notwithstanding the amended provisions of Article 1-2. |
| (2) | In calculating the limit on loans to the same person in accordance with Article 42 of the Act, the former provisions shall apply to loans already granted by a union before this Decree enters into force and the loans that a union will grant during one year following the date of this Decree enters into force. |
| (3) | In calculating the limit on financial resources that a union is permitted to spend for welfare services in accordance with Article 16 (3), the former provisions shall apply to the equity capital in connection with the financial resources that may be spent for the welfare services already provided by a union before this Decree enters into force. |
ADDENDA <Presidential Decree No. 18113, Nov. 4, 2003>
Article 1 (Enforcement Date)
This Decree shall enter into force on the date of its promulgation: Provided, That the amended provisions of Articles 19-8 through 19-14 shall enter into force on January 1, 2004. Article 2 (Validity Period)
| (1) | The amended provisions of Article 17 (4) 3 shall be effective from the date this Decree enters into force until December 31, 2020. <Amended by Presidential Decree No. 20230, Aug. 22, 2007> |
| (2) | The amended provisions of Article 19-8 (1) 3 shall be effective for three years from the date the said subparagraph enters into force. |
Article 3 (Transitional Measures concerning Types of and Limits on Securities)
Where the funds have not been managed in compliance with the extent of and limits on the management of funds under the amended provisions of Articles 17-2 (2) and 19-7 (3) and (4) as of the date this Decree enters into force, the securities with a fixed maturity shall be disposed of by the maturity, while necessary measures shall be taken for those without any specific maturity date to meet the requirements under the amended provisions of Articles 17-2 (2) and 19-7 (3) and (4) no later than December 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.
ADDENDA <Presidential Decree No. 19010, Aug. 19, 2005>
Article 1 (Enforcement Date)
This Decree shall enter into force on December 1, 2005.
Articles 2 and 3 Omitted.
ADDENDA <Presidential Decree No. 19422, Mar. 29, 2006>
Article 1 (Enforcement Date)
This Decree shall enter into force on April 1, 2006.
Article 2 Omitted.
ADDENDA <Presidential Decree No. 20142, Jun. 29, 2007>
Article 1 (Enforcement Date)
This Decree shall enter into force on July 1, 2007.
Articles 2 through 5 Omitted.
ADDENDA <Presidential Decree No. 20230, Aug. 22, 2007>
Article 1 (Enforcement Date)
This Decree shall enter into force three months after the date of its promulgation: Provided, That the amended provisions of Articles 13 (2) 1-2, 15 (1), 19-7 (2) 4, 19-8 (1) 3, and 24 and the amended provisions of Addenda to the Amendment (Presidential Decree No. 18113) to the Enforcement Decree of the Credit Unions Act shall enter into force on the promulgation date of this Decree. Article 2 (Transitional Measures concerning Limits on Purchasing of Securities)
| (1) | A union or the National Federation that fails to manage its fund in conformity to the extent of and limits on the fund management under the amended provisions of Articles 17-2 (2) through (4) and 19-7 (3) through (6) as of the enforcement date of this Decree shall take measures to meet the requirements under the amended provisions of Articles 17-2 (2) through (4) and 19-7 (3) through (6) within one year from the date this Decree enters into force. |
| (2) | Notwithstanding paragraph (1), a union or the National Federation may dispose of the securities with a fixed maturity by the maturity date, while it may extend the time period for disposal of securities, subject to a prior approval of the Financial Services Commission, if it is foreseen to suffer any loss in investment due to a sudden reduction of prices of the securities or by selling off a substantial number of securities at once or if any other compelling reason to do so exists. |
| (3) | A union or the National Federation that desires to obtain approval under paragraph (2) shall submit to the Financial Services Commission, by no later than three months before the expiration of the time period under paragraph (1), a detailed plan for taking measures to meet the requirements under the amended provisions of Articles 17-2 (2) through (4) and 19-7 (3) through (6). In such cases, the Financial Services Commission shall make a decision as to whether to grant the approval and shall issue a notice of its decision within one month from the date on which the detailed plan is filed. |
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 among Presidential Decrees amended pursuant to Article 2 of the Addenda, the amended provisions of those Presidential Decrees promulgated before this Decree enters into force but the enforcement dates thereof have yet to arrive shall enter into force on the date each relevant Presidential Decrees enters into force.
Article 2 Omitted.
ADDENDUM <Presidential Decree No. 20885, Jun. 25, 2008>
This Decree shall enter into force on the date of its promulgation.
ADDENDA <Presidential Decree No. 20947, Jul. 29, 2008>
Article 1 (Enforcement Date)
This Decree shall enter into force on February 4, 2009. (Proviso Omitted.)
Articles 2 through 28 Omitted.
ADDENDA <Presidential Decree No. 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. 23316, Nov. 23, 2011>
Article 1 (Enforcement Date)
This Decree shall enter into force three months after the date of its promulgation: Provided, That the amended provisions of Article 16-2 shall enter into force on January 1, 2012. Article 2 (Transitional Measures concerning Limits of Loans, etc. per Person)
| (1) | Any union which has provided loans, etc. in excess of the limits prescribed by the amended provisions of Article 16-4 (1) as at the time this Decree enters into force shall comply with the amended provisions within two years after this Decree enters into force. |
| (2) | Notwithstanding paragraph (1), a union may extend the loan period by obtaining approval from the Chairperson of the National Federation by the time two years pass from the date of maturity in cases of the loans, etc., which mature within two years from the enforcement date of this Decree, and by the date of maturity in cases of the loans, etc. which mature two years after this Decree enters into force, if unavoidable grounds exist considering the scale of loans, etc. |
| (3) | A union that intends to obtain approval pursuant to paragraph (2) shall submit a redemption plan to comply with the amended provisions of Article 16-4 (1) to the Chairperson of the National Federation by no later than three months prior to the expiration of the period prescribed in paragraph (1), and the Chairperson of the National Federation shall determine whether to approve the redemption plan and notify the union of the determination made within one months after receipt of such redemption plan. |
ADDENDA <Presidential Decree No. 23356, Dec. 8, 2011>
Article 1 (Enforcement Date)
This Decree shall enter into force on December 8, 2011. (Proviso Omitted.)
Article 2 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. 24096, Sep. 7, 2012>
Article 1 (Enforcement Date)
This Decree shall enter into force on the date of its promulgation: Provided, That the amended provisions of Article 20-2 shall enter into force three months after the date of its promulgation. Article 2 (Transitional Measures concerning Mutual Aid Money under Former Mutual Aid Contracts and Other Agreed Pecuniary Claims)
Mutual aid money for which union members, etc. have a claim against the National Federation under the former mutual aid contract and other agreed pecuniary claims at the time this Decree enters into force shall be deemed mutual aid money and other agreed pecuniary claims under the amended provision of Article 19-8 (1) 2.
ADDENDA <Presidential Decree No. 24600, Jun. 11, 2013>
Article 1 (Enforcement Date)
This Decree shall enter into force on June 12, 2013.
Article 2 (Transitional Measure concerning Standing President)
The standing president who serves in office at the time this Decree enters into force shall continue to serve in that role until his/her term is complete, although the relevant union falls within the category under the amended provisions of the proviso to Article 14 (1) during his/her term.
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.
ADDENDA <Presidential Decree No. 26039, Jan. 6, 2015>
Article 1 (Enforcement Date)
This Decree shall enter into force on January 15, 2015.
Article 2 (Applicability concerning Requirements for Authorization for Establishment of Unions)
The amended provisions of Article 11 (1) 1 (b) and (c) shall apply beginning with an application for authorization of establishment of a union filed pursuant to Article 10 (1) after this Decree enters into force. Article 3 (Transitional Measures concerning Registration of Appointment of Representative)
Where there is any representative appointed by the Chairperson of the National Federation and the President for credit and mutual aid services pursuant to Article 76-4 of the Act as at the time this Decree enters into force, registration of appointment of the representative shall be completed within two weeks from the date on which this Decree enters into force.
ADDENDA <Presidential Decree No. 26424, Jul. 20, 2015>
Article 1 (Enforcement Date)
This Decree shall enter into force on July 21, 2015.
Article 2 (Applicability concerning Application for Authorization for Establishment)
The amended provisions of Article 10 (5) shall begin to apply to the case of an application filed for authorization of establishment of a union before this Decree enters into force and of application documents for authorization received by the Financial Services Commission after this Decree enters into force. Article 3 (Transitional Measures concerning Organization Unions Eligible to Have a President or Director who is Not a President as a Non-standing Member)
Organization unions which are authorized by the Chairperson of the National Federation under the former Article 14 (2) 1 before this Decree enters into force shall be considered as authorized by the Chairperson of the National Federation under the amended provisions of Article 14 (2) 1.
ADDENDA <Presidential Decree No. 27037, Mar. 11, 2016>
Article 1 (Enforcement Date)
This Decree shall enter into force on the date of its promulgation.
Article 2 Omitted.
ADDENDA <Presidential Decree No. 28152, Jun. 27, 2017>
Article 1 (Enforcement Date)
This Decree shall enter into force on the date of its promulgation.
Article 2 Omitted.
ADDENDA <Presidential Decree No. 28283, Sep. 5, 2017>
Article 1 (Enforcement Date)
This Decree shall enter into force three months after the date of its promulgation: Provided, That ...... <Omitted.>...... Article 6 of the Addenda shall enter into force on the date of its promulgation.
Articles 2 and 6 Omitted.
ADDENDA <Presidential Decree No. 28390, Oct. 17, 2017>
Article 1 (Enforcement Date)
This Decree shall enter into force on October 19, 2017: Provided, That the amended provisions of Articles 14 through 14-3 shall enter into force on April 19, 2018. Article 2 (Applicability concerning Requirements for Appointment of Standing Auditor)
The amended provisions of the proviso to the main sentence of Article 14-3 shall apply beginning with the first person who is appointed as a standing auditor after the enforcement date under the proviso to Article 1 of the Addenda. Article 3 (Transitional Measures concerning Mitigation of Restriction of Inclusion Ratio of Derivatives)
In cases of violating restriction of inclusion ratio of derivatives before this Decree enters into force, the former provisions of Article 17-2 (2) 2 shall, notwithstanding the amendment thereto, prevail when taking measures under Article 84 of the Act, notifying the content of measures under Article 84-2 of the Act, or taking measures under Article 85 of the Act.
ADDENDUM <Presidential Decree No. 29394, Dec. 18, 2018>
This Decree shall enter into force on the date of its promulgation.
ADDENDUM <Presidential Decree No. 29991, Jul. 16, 2019>
This Decree shall enter into force on July 16, 2019.