ENFORCEMENT DECREE OF THE BANKING ACT
Wholly Amended by Presidential Decree No. 15651, Feb. 20, 1998
Amended by Presidential Decree No. 15761, Apr. 1, 1998
Presidential Decree No. 15949, Dec. 29, 1998
Presidential Decree No. 16304, May 12, 1999
Presidential Decree No. 16308, May 13, 1999
Presidential Decree No. 16844, jun. 23, 2000
Presidential Decree No. 17231, jun. 8, 2001
Presidential Decree No. 17717, Aug. 21, 2002
Presidential Decree No. 17791, Dec. 5, 2002
Presidential Decree No. 18297, Feb. 28, 2004
Presidential Decree No. 18325, Mar. 22, 2004
Presidential Decree No. 18596, Dec. 3, 2004
Presidential Decree No. 18736, Mar. 8, 2005
Presidential Decree No. 18832, May 26, 2005
Presidential Decree No. 19422, Mar. 29, 2006
Presidential Decree No. 20331, Oct. 23, 2007
Presidential Decree No. 20653, Feb. 29, 2008
Presidential Decree No. 20947, Jul. 29, 2008
Presidential Decree No. 21154, Dec. 3, 2008
Presidential Decree No. 21518, May 29, 2009
Presidential Decree No. 21765, Oct. 1, 2009
Presidential Decree No. 21775, Oct. 9, 2009
Presidential Decree No. 22151, May 4, 2010
Presidential Decree No. 22493, Nov. 15, 2010
Presidential Decree No. 22577, Dec. 30, 2010
Presidential Decree No. 23427, Dec. 28, 2011
Presidential Decree No. 23488, Jan. 6, 2012
Presidential Decree No. 23644, Feb. 29, 2012
Presidential Decree No. 24658, Jul. 8, 2013
Presidential Decree No. 24697, Aug. 27, 2013
Presidential Decree No. 24722, Sep. 9, 2013
Presidential Decree No. 25176, Feb. 11, 2014
Presidential Decree No. 25279, Mar. 24, 2014
Presidential Decree No. 25532, Aug. 6, 2014
Presidential Decree No. 25840, Dec. 9, 2014
Presidential Decree No. 25945, Dec. 30, 2014
Presidential Decree No. 26205, Apr. 20, 2015
Presidential Decree No. 26600, Oct. 23, 2015
Presidential Decree No. 26817, Dec. 30, 2015
Presidential Decree No. 27205, May 31, 2016
Presidential Decree No. 27290, jun. 28, 2016
Presidential Decree No. 27414, Jul. 28, 2016
Presidential Decree No. 28382, Oct. 17, 2017
Presidential Decree No. 28927, May 29, 2018
Presidential Decree No. 29269, Oct. 30, 2018
Presidential Decree No. 29854, jun. 11, 2019
Presidential Decree No. 29892, jun. 25, 2019
The purpose of this Decree is to prescribe matters delegated by the Banking Act and matters necessary for the enforcement thereof. [This Article Wholly Amended by Presidential Decree No. 22493, Nov. 15, 2010]
| Article 1-2 (Scope of Equity Capital) |
The core capital and supplementary capital to be included in the equity capital under Article 2 (1) 5 of the Banking Act (hereinafter referred to as the "Act") shall be determined and publicly notified by the Financial Services Commission according to the following standards: <Amended by Presidential Decree No. 23427, Dec. 28, 2011> | 1. | The core capital shall be the sum of the followings: |
| (a) | The amount that can first make up for the loss of a bank, such as capital, capital surplus, and earned surplus, which incurs from the issuance of common stocks; |
| (b) | The amount that can make up for the loss of a bank in subsequent to the core capital under item (a), such as capital and capital surplus, which incurs from the issuance of equity securities that have permanent characteristics; |
| 2. | Supplementary capital, which is equivalent to the capital under subparagraph 1 such as junior bonds that are not included in those referred to in subparagraph 1, shall make up for the losses incurred when a bank is liquidated; |
| 3. | Those that do not make any substantial contribution to the improvement of the debt-to-equity balance, such as treasury stocks held by the relevant banks shall not be included in the core capital and supplementary capital. |
[This Article Wholly Amended by Presidential Decree No. 22493, Nov. 15, 2010]
| Article 1-3 (Scope of Credit Granting) |
| (1) | The scope of credit granting under Article 2 (1) 7 of the Act shall include the following, as determined and publicly notified by the Financial Services Commission: |
| 3. | Giving substitute payments following payment guarantee; |
| 4. | Purchase of notes and bonds; |
| 5. | Other transactions that may bring any loss on banks in the event of default of payment of the other party to the transactions; |
| 6. | Transactions that may incur loss on banks even if the banks do not engage directly in the transactions corresponding to those under subparagraphs 1 through 5. |
| (2) | The Financial Services Commission may choose not to include the following transactions in the scope of credit granting, notwithstanding paragraph (1): |
| 1. | Transactions that may have negligible probability of incurring loss on banks; |
| 2. | Transactions that the Financial Services Commission determines as reasonable to be excluded from the scope of credit granting in light of factors, such as the consequent effect on the financial market. |
[This Article Wholly Amended by Presidential Decree No. 22493, Nov. 15, 2010]
| Article 1-4 (Scope of Specially Related Persons) |
| (1) | "Person having a special relationship prescribed by Presidential Decree with the principal" in Article 2 (1) 8 of the Act means a person in a relationship with the principal, as provided for in the following subparagraphs (hereinafter referred to as "specially related person"): |
| 2. | A non-profit corporation, association or organization in which the principal and the persons under subparagraph 1 or 4 hold majority position of executive officers, or the said persons together with those defined in subparagraph 3 or 5 have made an amount of at least 50/100 of investment, or one of these persons is the founder; |
| 3. | A company in which the principal and the persons under subparagraphs 1, 2, and 4 own at least 30/100 of the total number of issued voting stocks (including the shares; hereinafter the same shall apply), or they participate in management as the largest stockholders; |
| 4. | A person employed by the principal or a person under subparagraph 2 or 3 (referring to an executive officer if the employer is a corporation, association, or organization, and if the employer is an individual, referring to a commercial employer, an employee under an employment contract, or a person who maintains his/her livelihood on the money or the property of such individual); |
| 5. | A company in which the principal and persons under subparagraphs 1 through 4 own at least 30/100 of the total number of issued voting stocks, or they participate in management as the largest stockholders; |
| 6. | Where the principal is a person who controls (hereinafter referred to as "affiliated holder") the enterprise group under subparagraph 2 of Article 2 of the Monopoly Regulation and Fair Trade Act (hereinafter referred to as "enterprise group"), a company that belongs to the enterprise group controlled by such person (including a foreign corporation in which an affiliated holder fulfills the requirements stipulated in subparagraphs 1 and 2 of Article 3 of the Enforcement Decree of the Monopoly Regulation and Fair Trade Act, independently or jointly with persons in a relationship corresponding to any item of subparagraphs 1 and 2 of the same Article; hereinafter the same shall apply in this Article), and the executive officers of such company; |
| 7. | Where the principal is in a relationship under subparagraph 1 or 2 with an affiliated holder, or is an executive officer of a company belonging to an enterprise group controlled by the affiliated holder, a company that belongs to the enterprise group controlled by the relevant affiliated holder and the executive officers of such company; |
| 8. | Where the principal is a company belonging to an enterprise group, a company that belongs to the enterprise group identical with that of the said company, and the executive officers of such company; |
| 9. | Persons who jointly exercise voting rights (including authority to direct an exercise of voting rights) of stocks issued by a bank pursuant to an agreement or contract with the principal or the persons defined in subparagraphs 1 through 8. |
| (2) | Notwithstanding paragraph (1), the following persons shall be excluded from the scope of a specially related person: <Amended by Presidential Decree No. 22577, Dec. 30, 2010; Presidential Decree No. 26600, Oct. 23, 2015> |
| 3. | Where any of the following private equity funds (referring to a private equity fund specified by the Financial Investment Services and Capital Markets Act; hereinafter referred to as "private equity fund") acquires stocks of any other company for the purpose of increasing the value of the company in which it has invested and distributing profits from the investment to its partners, it means such other company: |
| (b) | A private equity fund that is a subsidiary, etc. of a bank holding company. |
[This Article Wholly Amended by Presidential Decree No. 22493, Nov. 15, 2010]
| Article 1-5 (Scope, etc. of Financial Business) |
| (1) | "Financial business prescribed by Presidential Decree" in Article 2 (1) 9 (a) of the Act means any of the following business types or business affairs: <Amended by Presidential Decree No. 28382, Oct. 17, 2017> |
| 2. | Any of the following business affairs: |
| (a) | Offering services including computer network and electronic data processing to a company carrying on financial business; |
| (b) | Management of real estate and other assets retained by a company carrying on financial business; |
| (c) | Survey and research related to financial business; |
| (d) | Other business affairs directly relevant to proper business affairs of a company carrying on financial business. |
[This Article Wholly Amended by Presidential Decree No. 22493, Nov. 15, 2010]
| Article 1-6 (Standards for Exercising De Facto Influences and Standards for Participating in Management) |
| (1) | A person exercising de facto influence over major managerial matters of the bank under Article 2 (1) 10 (b) of the Act means a person falling under any of the following subparagraphs: |
| 1. | A stockholder who has selected the president of a bank or a majority of its executive officers, either independently or under an agreement, contract, etc. with other stockholders; |
| 2. | A person deemed to exercise dominant influence over principal decision-making, such as management strategy and organizational change, or business execution, who is designated by the Financial Services Commission. |
| (2) | Deleted. <by Presidential Decree No. 25176, Feb. 11, 2014> |
[This Article Wholly Amended by Presidential Decree No. 22493, Nov. 15, 2010]
| Article 1-7 (Detailed Requirements for Authorization of Banking Business) |
| (1) | A business plan under Article 8 (2) 5 of the Act (hereinafter in this Article, referred to as "business plan") shall meet all of the following requirements: |
| 1. | The estimated financial statements and profitability prospect shall be feasible and realizable; |
| 3. | To have an appropriate internal control system in place for risk management and prevention of financial incidents; |
| 4. | To be equipped with appropriate business practices for the protection of bank users. |
| (2) | Human resources, business facilities, computer systems, and other physical facilities under Article 8 (2) 7 of the Act shall meet the following requirements: |
| 1. | To have the appropriate level of necessary human resources, including, but not limited to, human resources having expertise and soundness in banking business and computer personnel for managing banking business; |
| 2. | To be equipped with the following physical facilities: |
| (a) | Computer facilities and means of communications necessary for managing banking business; |
| (b) | Security facilities capable of safely protecting physical facilities, such as computer facilities, etc.; |
| (c) | Supplementary facilities necessary for maintaining continuity in business affairs in case a power failure or fire, etc. occurs. |
| (3) | Detailed requirements for the authorization of banking business, in addition to the matters provided for in paragraphs (1) and (2), shall be determined and publicly notified by the Financial Services Commission. |
| (4) | Where the Financial Services Commission has imposed conditions in granting authorization for banking business pursuant to Article 8 (4) of the Act, it shall verify whether such conditions are fulfilled. |
[This Article Wholly Amended by Presidential Decree No. 22493, Nov. 15, 2010]
| Article 2 (Approval for Capital Reduction) |
| (1) | "An act that reduces its capital, as prescribed by Presidential Decree" in Article 10 (1) of the Act means a bank's substantial reduction of its capital by reducing the number of stocks or by lowering the value of stocks. |
| (2) | A person who intends to obtain the approval under Article 10 (1) of the Act shall file an application for approval with the Financial Services Commission, stating the following information: <Amended by Presidential Decree No. 27290, Jun. 28, 2016> |
| 1. | The purpose of capital reduction; |
| 2. | Details of the change in capital; |
| 3. | Matters concerning the procedure for capital reduction, time schedule, etc. of capital reduction; |
| 4. | Other matters determined and publicly notified by the Financial Services Commission as necessary for filing an application for approval. |
| (3) | An application form for approval filed under paragraph (2) shall be accompanied by the following documents: <Newly Inserted by Presidential Decree No. 27290, Jun. 28, 2016> |
| 1. | Articles of incorporation; |
| 2. | Minutes of meeting, if there is a resolution by the board of directors or by the general meeting of stockholders on the reasons for filing an application for approval; |
| 3. | A copy of a contract, if there is a contract related to the reasons for filing an application for approval; |
| 4. | Other documents determined and publicly notified by the Financial Services Commission as necessary for examining the approval. |
[This Article Wholly Amended by Presidential Decree No. 22493, Nov. 15, 2010]
| Article 3 (Content etc. of Applications for Authorization of Banking Business) |
| (1) | The following matters shall be stated in an application for authorization to be submitted to the Financial Services Commission pursuant to Article 11 (1) of the Act: |
| 2. | Locations where places of business, such as the head office and branches, are located; |
| 3. | Matters concerning promoters (only applicable to individuals) and executive officers; |
| 4. | Matters concerning financial affairs, such as capital; |
| 5. | Matters concerning business plans; |
| 6. | Matters concerning human resources, business facilities, computer systems, and other physical facilities; |
| 7. | A plan for the composition of stockholders; |
| 8. | Other matters determined and publicly notified by the Financial Services Commission as necessary for examining requirements for authorization. |
| (2) | An application for authorization referred to in paragraph (1) shall be accompanied by the following documents: <Amended by Presidential Decree No. 25176, Feb. 11, 2014; Presidential Decree No. 27414, Jul. 28, 2016> |
| 1. | Articles of incorporation; |
| 2. | Documents stating the location and names of the head office, branches, and other places of business; |
| 3. | Documents attesting decision-making on the establishment or application for authorization, such as meeting minutes, etc. of the general meeting of promoters, inaugural general meeting of stockholders or the board of directors; |
| 5. | Financial statements and supplementary schedules for the preceding three years (excluding a corporation in the process of establishment; referring to financial statements and supplementary schedules from the date of establishment to the recent business year in cases of a corporation for whom three business years have not passed yet since the date of its establishment); |
| 6. | Business plans (including estimated financial statements) and estimated statement of income and expense for three business years after the commencement of business; |
| 7. | Documents describing the current status of human resources, business facilities, computer systems, and other physical facilities; |
| 9. | Documents attesting that conditions imposed on preliminary authorization under Article 11-2 of the Act (hereinafter referred to as "preliminary authorization"), if any, are fulfilled; |
| 10. | Other documents determined and publicly notified by the Financial Services Commission as necessary for examining requirements for authorization. |
| (3) | Where no changes exist in the content of an application for preliminary authorization and attachments submitted when filing an application for preliminary authorization, an applicant for preliminary authorization who intends to obtain authorization for banking business, may choose not to enter some of the information to be entered in an application for authorization under paragraph (1), or not to submit some attachments required under paragraph (2) by specifying that the relevant part should be referred to. |
| (4) | Except as provided in paragraphs (1) through (3), matters necessary for filing an application for, examining, and authorizing banking business shall be determined and publicly notified by the Financial Services Commission. |
[This Article Newly Inserted by Presidential Decree No. 22493, Nov. 15, 2010]
| Article 3-2 (Preliminary Authorization) |
| (1) | A person who intends to apply for preliminary authorization pursuant to Article 11-2 (1) of the Act shall submit an application for preliminary authorization stating the following matters to the Financial Services Commission: |
| 2. | Locations where places of business, such as the head office and branches, are located; |
| 3. | Matters concerning promoters (only applicable to individuals) and executive officers; |
| 4. | Matters concerning financial affairs, such as capital; |
| 5. | Matters concerning business plans; |
| 6. | Matters concerning human resources, business facilities, computer systems, and other physical facilities; |
| 7. | A plan for the composition of stockholders; |
| 8. | Other matters determined and publicly notified by the Financial Services Commission as necessary for examining requirements for preliminary authorization. |
| (2) | An application for preliminary authorization under paragraph (1) shall be accompanied by the following documents: <Amended by Presidential Decree No. 25176, Feb. 11, 2014; Presidential Decree No. 27414, Jul. 28, 2016> |
| 1. | Articles of incorporation or draft articles of incorporation; |
| 2. | Documents stating locations and names of the head office, branches, and other places of business; |
| 3. | Documents attesting to decision-making on the establishment or application for authorization, such as meeting minutes, of the general meeting of promoters, inaugural general meeting of stockholders, or the board of directors; |
| 5. | Financial statements and supplementary schedules for the last three years (excluding a corporation in the process of establishment; referring to financial statements and supplementary schedules from the date of establishment to the recent business year in cases of a corporation for whom three business years have not passed yet since the date of its establishment); |
| 6. | Business plans (including estimated financial statements) and estimated statement of income and expense for three business years following the commencement of business affairs; |
| 7. | Documents describing the current status of human resources, business facilities, computer systems, and other physical facilities (including human resources and physical facilities scheduled to hire or purchase); |
| 9. | Other documents determined and publicly notified by the Financial Services Commission as necessary for examining requirements for preliminary authorization. |
[This Article Newly Inserted by Presidential Decree No. 22493, Nov. 15, 2010]
| Article 3-3 (Objects Subject to Prior Reporting on Establishment Plan of Overseas Local Corporation, etc) |
"Cases prescribed by Presidential Decree" in Article 13 (2), with the exception of its subparagraphs, of the Act means cases where the amount of investments by the relevant bank to an individual overseas local corporation (referring to an overseas local corporation under Article 13 (1) of the Act; hereinafter the same shall apply) or overseas branch (referring to an overseas branch under Article 13 (1) of the Act; hereinafter the same shall apply) exceeds 1/100 of the equity capital of the relevant bank, which fall under any of the following: <Amended by Presidential Decree No. 25176, Feb. 11, 2014; Presidential Decree No. 28927, May 29, 2018> | 1. | Where the relevant bank falls under any of the following cases: |
| (a) | Where the relevant bank's capital adequacy ratio to risk-weighted assets based on the standards set by the Bank for International Settlement as at the end of the previous quarter falls short of the standards determined and publicly notified by the Financial Services Commission; |
| (b) | Where the results of evaluating the relevant bank about its management soundness fall short of the standards determined and publicly notified by the Financial Services Commission; |
| 2. | Where the relevant bank intends to establish an overseas local corporation through investment in, or merger and acquisition with either of the following corporations, the size of which exceeds the size publicly notified by the Financial Services Commission in consideration of equity capital, etc. of the relevant bank: |
| (a) | A corporation rated below the investment grade determined and publicly notified by the Financial Services Commission; |
| (b) | A corporation for which the evaluation results of management soundness fall short of the standards determined and publicly notified by the Financial Services Commission; |
| 3. | Where an overseas local corporation or overseas branch is scheduled to run the services or perform business affairs other than those classified in the following: |
| (a) | In cases of an overseas local corporation: |
| (i) | Banking services referred to in Article 27 of the Act (hereinafter referred to as "banking services"); |
| (ii) | Incidental services referred to in Article 27-2 of the Act (hereinafter referred to as "incidental services"); |
| (iii) | Concurrent business affairs referred to in Article 28 of the Act (hereinafter referred to as "concurrent business affairs"); |
| (b) | In cases of an overseas branch: Business affairs that the relevant bank is running when it intends to establish an overseas branch; |
| 4. | Where a country in which an overseas local corporation or overseas branch is located falls under the following cases: |
| (a) | A country rated as investment grade or lower as determined and publicly notified by the Financial Services Commission; |
| (b) | A country that has no friendly relation with the Republic of Korea; |
| 5. | Other cases determined and publicly notified by the Financial Services Commission. |
[This Article Newly Inserted by Presidential Decree No. 22493, Nov. 15, 2010]
| Article 3-4 (Restrictions on Trade Names) |
"Characters prescribed by Presidential Decree" in Article 14 of the Act means bank or banking (including its Korean transcription), or any other foreign language script having the same meaning (including its Korean transcription). [This Article Newly Inserted by Presidential Decree No. 22493, Nov. 15, 2010]
| Article 4 (Request, etc. for Submission of Data) |
| (1) | In order to fix the scope of stocks held by the same person, a bank may request the related stockholder to submit the required data. |
| (2) | Where the related stockholders in receipt of a request for submitting the data under paragraph (1) fail to submit it within ten days from the date so requested, or submit false data, a bank shall fix the scope of stocks held by the same person on the basis of data known or available to the bank. |
| (3) | Where a bank fixes the scope of stocks to be held by a same person under paragraphs (1) and (2), it shall notify the related stockholder thereof, and report the current stockholding status of the relevant bank by the same person to the Governor of the Financial Supervisory Service established under the Act on the Establishment, etc. of Financial Services Commission (hereinafter referred to as the "Governor of the Financial Supervisory Service"), as determined by the Governor of the Financial Supervisory Service. |
| (4) | Where it is deemed that an error exists in the scope of stocks held by the same person as fixed by a bank, the Governor of the Financial Supervisory Service may directly request the related stockholder to submit the required data. |
[This Article Wholly Amended by Presidential Decree No. 22493, Nov. 15, 2010]
| Article 4-2 (Reporting on Stockholding Status, etc.) |
| 1. | Matters concerning the same person; |
| 2. | Matters related to the following items in cases of a private equity fund, etc. (referring to a private equity fund, etc. under Article 15-3 (2) of the Act; hereinafter the same shall apply): |
| (a) | Stockholders or partners; |
| (b) | The amount of investments by limited partners or general partners of a private equity fund; |
| 3. | Matters concerning the status of stockholding and change, and reasons therefor; |
| 4. | Matters concerning the purpose of stockholding, and whether the private equity fund participates in management of a bank; |
| 5. | Other details necessary to verify changes in stockholding status and stock holding ratio, as determined and publicly notified by the Financial Services Commission. |
| (3) | The same person falling under any subparagraph of Article 15 (2) of the Act shall report the matters specified in paragraph (2) to the Financial Services Commission within five days from the date the event subject to reporting occurs (referring to the date when the same person becomes aware that an event subject to reporting occurred in relation to the person, although the person did not acquire or sell the bank's stocks; hereinafter the same shall apply in paragraph (4)). In such cases, if the principal and specially related persons jointly file a report, such report may be jointly signed and filed by the person who holds the greatest number of stocks as the representative selected by and from among them. <Amended by Presidential Decree No. 27290, Jun. 28, 2016> |
| (4) | Notwithstanding paragraph (3), other persons including fund, etc., determined and publicly notified by the Financial Services Commission may file a report by the 10th day of the month following the quarter in which the date a reporting reason has occurred falls. |
| (5) | Except as provided in paragraphs (1) through (4), matters necessary for reporting on stockholding status, etc. shall be determined and publicly notified by the Financial Services Commission. |
[This Article Wholly Amended by Presidential Decree No. 22493, Nov. 15, 2010]
| Article 4-3 (Processing Period of Approval for Stockholding) |
"Period prescribed by Presidential Decree" in Article 15 (4) of the Act means 60 days from the date on which an application for approval is filed: Provided, That periods determined and publicly notified by the Financial Services Commission, including a period, etc. to supplement any deficiencies in an application for approval, shall not be included in the processing period. [This Article Wholly Amended by Presidential Decree No. 22493, Nov. 15, 2010]
| Article 5 (Requirements for Excess Holding of Stocks by Limit Excess Stockholders) |
A person who intends to hold stocks of a bank pursuant to Article 15 (5) of the Act shall meet the requirements stated in attached Table 1. [This Article Wholly Amended by Presidential Decree No. 22493, Nov. 15, 2010]
| Articles 6 and 7 Deleted. <by Presidential Decree No. 17717, Aug. 21, 2002> |
| Article 8 (Methods and Procedures for Approval of Stockholding) |
| (1) | The Financial Services Commission may restrict the time, methods, etc. of acquiring stocks, where deemed necessary in light of the qualification requirements for applicants and the distribution of equities of the bank, etc. in granting approval under Article 15 (3) of the Act. |
| (2) | A person who intends to obtain approval under Article 15 (3) of the Act shall submit an application for approval stating the following matters to the Financial Services Commission: |
| 1. | Matters concerning an applicant; |
| 2. | Status of holding stocks issued by a bank; |
| 3. | A plan for acquiring stocks issued by a bank. |
| (3) | The following documents shall be attached to the application for approval under paragraph (3): <Amended by Presidential Decree No. 29269, Oct. 30, 2018> |
| 1. | Articles of incorporation (limited to a corporation); |
| 2. | In cases of a foreign company, a document equivalent to a corporation registration certificate; |
| 3. | Financial statements as at the end of the latest business year and semi-annual financial statements since the end of the latest business year (limited to a corporation); |
| 6. | Other documents that are necessary for examination of approval requirements and determined and publicly notified by the Financial Services Commission. |
| (4) | The Financial Services Commission in receipt of the application for approval under paragraph (2) shall check the following administrative information through joint use of administrative information under Article 36 (1) of the Electronic Government Act: Provided, That where the applicant does not agree to check a certified copy of a residential registration card under subparagraph 2, it shall have the applicant attach such document to the application for approval: |
| 1. | A corporation registration certificate (limited to a domestic corporation); |
| 2. | A certified copy of a residential registration card (or business registration certificate); |
| 3. | A corporation registration certificate of a bank, the stocks of which are to be acquired. |
| (5) | Except provided in paragraphs (2) through (4), detailed matters necessary concerning an approval application form for holding stocks of a bank, methods, procedures, etc. of approval application shall be determined and publicly notified by the Financial Services Commission. |
[This Article Wholly Amended by Presidential Decree No. 22493, Nov. 15, 2010]
| Article 9 Deleted. <by Presidential Decree No. 25176, Feb. 11, 2014> |
| Article 10 (Approval for Stockholding of Private Equity Funds) |
| (1) | Deleted. <by Presidential Decree No. 25176, Feb. 11, 2014> |
| (2) | In cases of a private equity fund, etc. that intends to obtain approval under Article 15-3 (2) of the Act, the executive partner of the private equity fund or an executive officer of such executive partner (including persons referred to in Article 401-2 (1) 3 of the Commercial Act; hereinafter in this paragraph, the same shall apply) shall meet all of the following requirements: <Amended by Presidential Decree No. 25176, Feb. 11, 2014; Presidential Decree No. 26600, Oct. 23, 2015; Presidential Decree No. 27414, Jul. 28, 2016> |
| 1. | An executive partner shall be a corporation, and three years shall have elapsed since the establishment of the corporation; |
| 3. | The executive partner or the executive officer shall meet the following requirements: Provided, That cases where the Financial Services Commission finds that the degree of a violation, etc. is minor shall be excluded herefrom: |
| (b) | The executive partner or the executive officer shall not be the largest stockholder of an institution that was designated as an insolvent financial institution under the Act on the Structural Improvement of the Financial Industry or an institution whose business license or authorization was revoked under any finance-related statute nor a stockholder who holds voting stocks in excess of 10/100 of the total number of outstanding voting stocks or any of specially related person of such stockholder, during the latest five years: Provided, That the persons who meet the criteria determined and publicly notified by the Financial Services Commission, including the persons held not liable for insolvency by a court judgment or the persons who assume financial liability for insolvency, shall be excluded herefrom; |
| 4. | A private equity fund, etc. in which the person serves or served as executive partner shall satisfy any of the following conditions: |
| (a) | Where the amount (excluding the amount invested by the relevant executive partner) invested in one private equity fund, etc. is at least 500 billion won and is at least the amount determined and publicly notified by the Financial Services Commission; |
| (b) | Where the amount (excluding the invested amount, out of the amount contributed by the relevant executive partner) actually invested in at least two enterprises eligible for investment by a private equity fund, etc. in which stockholders or partners of one private equity fund, etc. has invested without designating objects for the management of assets is at least 300 billion won and is at least the amount determined and publicly notified by the Financial Services Commission; |
| 5. | Other necessary details concerning the capability of, and experience in, asset management, and social credibility, etc., determined and publicly notified by the Financial Services Commission. |
| (3) | "Information or data prescribed by Presidential Decree, such as the articles of association of the relevant private equity fund, etc., terms and conditions of a contract concluded between its stockholders or partners" in Article 15-3 (3) of the Act means the following information or data: <Amended by Presidential Decree No. 26600, Oct. 23, 2015> |
| 1. | Articles of incorporation of a private equity fund, etc.; |
| 2. | Terms and conditions of a contract, etc. concluded between its stockholders or partners; |
| 3. | Details about stockholders and partners of a private equity fund, etc.; |
| 4. | Details about specially related persons to stockholders and partners of a private equity fund, etc.; |
| 5. | Other information and data necessary to verify as to whether approval requirements in Article 15-3 (2) of the Act are satisfied, determined and publicly notified by the Financial Services Commission. |
| (4) | "Period prescribed by Presidential Decree" in Article 15-3 (4) of the Act means 30 days from the date on which an application for approval is filed: Provided, That periods determined and publicly notified by the Financial Services Commission including a period, etc. to correct defects in an application for approval, shall not be included in the processing period. |
| (5) | Article 8 (2) through (5) shall apply mutatis mutandis to the approval for holding of stocks of a bank by a private equity fund, etc.. <Amended by Presidential Decree No. 26600, Oct. 23, 2015> |
[This Article Wholly Amended by Presidential Decree No. 22493, Nov. 15, 2010]
| Article 10-2 (Restrictions, etc. on Voting Rights to Stocks Held in Excess of Limits) |
| (1) | "The period specified by Presidential Decree" in Article 16 (2) 1 (a) and 2 (a) of the Act means five business days from the day on which any of the trigger events pre-specified in accordance with objective and reasonable standards (hereinafter referred to as "trigger events") as at the time of issuing contingent bonds convertible into stocks of a bank under Article 33 (1) 3 of the Act (hereinafter referred to as "contingent bonds convertible into stocks of a bank") occurs. |
[This Article Newly Inserted by Presidential Decree No. 27290, Jun. 28, 2016]
| Article 11 (Period, etc. to be Regarded as Non-Financial Business Entities) |
| (2) | "Requirements prescribed by Presidential Decree including financial soundness, etc." in Article 16-2 (2) of the Act means the requirements listed in attached Table 2. <Amended by Presidential Decree No. 25176, Feb. 11, 2014> |
[This Article Wholly Amended by Presidential Decree No. 22493, Nov. 15, 2010]
| Article 11-2 (Requirements for Approval of Conversion Plans) |
| (1) | A conversion plan under Article 16-2 (3) 1 of the Act (hereafter referred to as "conversion plan" in this Article) shall meet the following requirements: |
| 1. | An assumption constituting the premise for the conversion plan, such as the market outlook, shall be rational; |
| 2. | The conversion plan shall be able to be realized within the implementing period presented in view of the size of issued stocks and property of a non-financial company subject to disposition; |
| 3. | Quarterly implementation plans shall be contained. |
| (3) | The Financial Services Commission may determine and publicly notified matters necessary to check the implementation of a conversion plan, including detailed standards for requirements under each subparagraph of paragraph (1) and the check methods, etc. under paragraph (2). |
[This Article Wholly Amended by Presidential Decree No. 22493, Nov. 15, 2010]
| Article 11-3 (Requirements for Preventing Conflicts of Interest between Funds) |
| 1. | To formulate standards for exercising voting rights to prevent conflicts of interest. In such cases, where a voting right is exercised for matters for which the standards for exercising voting rights are not formulated and the number of stocks for a bank retained by funds, etc. exceeds the number of the limit prescribed by Article 16-2 (1) of the Act, the relevant standards shall include details of exercising voting rights with no influence on resolution of the number of stocks calculated by subtracting the number of stocks exceeding the limit prescribed by Article 16-2 (1) of the Act from the number of stocks retained by funds, etc. among the number of stocks held by the stockholders present at the general meeting of stockholders of the bank that has issued stocks retained by funds, etc.; |
| 2. | To establish internal control standards to understand, evaluate, and manage the potential for conflicts of interest by controlling in such a manner that information obtained as a stockholder of a bank shall not be used for the purpose, other than exercising stockholder's right; |
| 3. | Other matters necessary to prevent conflicts of interest, which are determined and publicly notified by the Financial Services Commission. |
[This Article Wholly Amended by Presidential Decree No. 22493, Nov. 15, 2010]
| Article 11-4 (Procedures for Examinations on Qualifications of Limit Excess Stockholders) |
| (1) | The Financial Services Commission shall periodically examine every half year whether stockholders, etc. holding stocks in excess of limit meet the excess holding requirements, etc. under Article 16-4 (1) of the Act: Provided, That when the said Commission deems it specially necessary, such as cases where a sign of illegal trade exists between stockholders, etc. holding stocks in excess of limit and banks, it may perform occasional examinations. |
| (2) | Detailed necessary matters for procedures, methods, etc. of examinations on qualifications for stockholders, etc. holding stocks in excess of limit under paragraph (1) shall be determined and publicly notified by the Financial Services Commission. |
[This Article Wholly Amended by Presidential Decree No. 22493, Nov. 15, 2010]
| Articles 12 and 13 Deleted. <by Presidential Decree No. 27414, Jul. 28, 2016> |
| Article 13-2 Deleted. <by Presidential Decree No. 17717, Aug. 21, 2002> |
| Article 14 Deleted. <by presidential Decree No. 16304, May 12, 1999> |
| Articles 15 through 17-5 Deleted. <by Presidential Decree No. 27414, Jul. 28, 2016> |
| Article 18 (Scope of Incidental Services) |
| (1) | "Services prescribed by Presidential Decree" in Article 27-2 (2) 11 of the Act means any of the following: <Amended by Presidential Decree No. 25176, Feb. 11, 2014; Presidential Decree No. 27290, Jun. 28, 2016> |
| 1. | Leasing of real estate: Provided, That, if real estate is not for business under Article 21-2 of the Act (4), the services shall be limited to those for leasing until the day by which real estate shall be disposed of under Article 39 of the Act; |
| 2. | Sale of revenue stamps, lotteries, gift certificates, admission tickets, etc. as an agent; |
| 3. | Advertisement utilizing physical facilities such as the website, books, publications, computer facilities, etc. of a bank as an agent; |
| 4. | Other services determined and publicly notified by the Financial Services Commission that are unlikely to fall under any subparagraph of Article 27-2 (4) of the Act. |
| (2) | "Documents prescribed by Presidential Decree, such as business plans, documents on a profit and loss forecast, etc." in Article 27-2 (3) of the Act means the following documents: |
| 2. | An estimated statement on profits and losses; |
| 3. | Articles of incorporation; |
| 4. | A copy of the minutes of the board of directors that has resolved on the operation of incidental services; |
| 5. | Other documents determined and publicly notified by the Financial Services Commission, related to the operation of incidental services. |
| 2. | The reporting date of incidental services; |
| 3. | The scheduled commencement date of incidental services; |
| 4. | Particulars on incidental services. |
| (4) | Where the Financial Services Commission issues a restriction or corrective order pursuant to Article 27-2 (4) of the Act, it shall give public announcement of the details and reasons therefor on the website, etc. |
[This Article Wholly Amended by Presidential Decree No. 22493, Nov. 15, 2010]
| Article 18-2 (Scope of Concurrent Business Affairs) |
| (1) | "Finance-related statutes prescribed by Presidential Decree" in Article 28 (1) 1 of the Act means finance-related statutes. <Amended by Presidential Decree No. 27414, Jul. 28, 2016> |
| (2) | "Financial business prescribed by Presidential Decree" in Article 28 (1) 1 of the Act means any of the following: <Amended by Presidential Decree No. 24722, Sep. 9, 2013; Presidential Decree No. 27290, Jun. 28, 2016> |
| 15. | Business operations of a retirement pension trustee under subparagraph 13 of Article 2 of the Act on the Guarantee of Workers' Retirement Benefits (hereinafter in Article 18-3, referred to as "business operations of a retirement pension trustee"); |
| 19. | Financial business authorized, permitted, or registered under any other finance-related statutes. |
| (3) | "Statutes prescribed by Presidential Decree" in Article 28 (1) 2 of the Act means finance-related statutes. <Amended by Presidential Decree No. 27414, Jul. 28, 2016> |
| (4) | "Financial business prescribed by Presidential Decree" in Article 28 (1) 3 of the Act means any of the following business affairs: <Amended by Presidential Decree No. 25176, Feb. 11, 2014; Presidential Decree No. 25840, Dec. 9, 2014; Presidential Decree No. 27290, Jun. 28, 2016> |
| 2. | Entrustment of the management of securitization assets and debt collection of a special purpose company for mortgage-backed bonds under Article 2 (1) 7 of the Act on Special Purpose Companies for Mortgage-Backed Bonds; |
| 3. | Brokerage, mediation, or agency services of the merger and acquisition of enterprises; |
| 4. | Counseling and support services concerning the management, corporate restructuring and finance of enterprises; |
| 5. | Investment and loan transactions of securities; |
| 6. | Sale of commercial bills and trade bills; |
| 7. | Sale of financial products of a person who runs the financial business pursuant to finance-related statutes and trade insurance under the Trade Insurance Act as an agent; |
| 8. | Brokerage, intermediation, or agency for loans and for sale and purchase of loan claims; |
| 9. | Business affairs that can be conducted in accordance with the related statutes of a country in which an overseas branch is located (limited to cases where the relevant overseas branch conducts the business affairs); |
| 10. | Other business affairs determined and publicly notified by the Financial Services Commission that are unlikely to fall under any subparagraph of Article 27-2 (4) of the Act. |
[This Article Wholly Amended by Presidential Decree No. 22493, Nov. 15, 2010]
| Article 18-3 (Control of Conflicts of Interest) |
| (1) | Pursuant to Article 28-2 (1) of the Act, a bank shall impartially manage the following business operations, such as recognizing and assessing the possibility for occurrence of a conflict of interest between the business operations, and block the exchange of information between such business operations: <Amended by Presidential Decree No. 24722, Sep. 9, 2013> |
| 1. | Between the following business operations: |
| (a) | Banking services [referring to banking services, incidental services, and concurrent business operations, excluding the business operations provided for in items (b) through (d), the business operations provided for in subparagraph 2 (c), and investment advisory business, investment trading business, etc. provided for in subparagraph 4 (b) (limited to cases specified in the main sentence of the said subparagraph)]; |
| (b) | Collective investment business; |
| (d) | Business operations of a general administration company; |
| 2. | Between the following business operations: |
| (a) | Collective investment business; |
| (b) | Business operations of a general administration company; |
| (c) | Business operations of a retirement pension trustee, trust business for secured bonds, entrusted business for the management of securitization assets and debt collection of a special purpose company and a special purpose company for mortgage-backed bonds under Article 18-2 (4) 1 and 2; |
| 3. | Between investment advisory business and the business operations provided for in Article 18-2 (4) 5; |
| 4. | Between the following business operations where a person concurrently engages in trust business [excluding the business of safekeeping and management of collective investment property under Article 9 (20) of the Financial Investment Services and Capital Markets Act (hereinafter in this subparagraph, referred to as "collective investment property")] along with investment advisory business or investment trading business (referring to the investment trading business of collective investment securities, the investment brokerage business of collective investment securities, or the trading with repurchase/resale agreement; hereinafter in this subparagraph, the same shall apply): |
| (a) | Collective investment business; |
| (b) | Trust business (excluding the business of safekeeping and management of collective investment property), investment advisory business, and investment trading business, etc.; |
| (c) | Trust business (limited to the business of safekeeping and management of collective investment property); |
| (d) | Business operations of a general administration company; |
| 2. | Between the business operations provided in paragraph (1) 3: Matters necessary for prohibiting the following acts: |
| (a) | Providing details of a response to an inquiry into judgment on investment in financial investment products (referring to financial investment products under Article 3 of the Financial Investment Services and Capital Markets Act; hereinafter in this item, the same shall apply) or information on the sale, purchase, and holding of financial investment products: Provided, That this shall not include cases as determined and publicly notified by the Financial Services Commission, where the possibility for a conflict of interest is low; |
| (b) | Permitting executive officers (excluding a representative director, an auditor and a member of an audit committee who is not an outside director) or partners to hold concurrent office; |
| (c) | Joint use of an office or computer facilities; |
| (d) | A failure to assign an independent department to take charge of respective business or a failure of a department in charge to processing such business independently. |
| (3) | "Concurrent business and incidental services prescribed by Presidential Decree" in Article 28-2 (6) of the Act means any of the following business operations: <Amended by Presidential Decree No. 24722, Sep. 9, 2013> |
| 1. | Collective investment business; |
| 3. | Investment trading business of collective investment securities; |
| 4. | Investment brokerage business of collective investment securities; |
| (4) | A bank that conducts business defined in paragraph (3) shall distinguish such business from banking service pursuant to Article 28-2 (6) of the Act and shall keep separate accounting books and records. In such cases, a bank that conducts business defined in paragraph (3) 2 shall keep separate accounting books and records on respective funds, marketable securities or possessions belonging to such business. |
[This Article Wholly Amended by Presidential Decree No. 22493, Nov. 15, 2010]
| Article 18-4 (Request for Fall in Interest Rate) |
| (1) | A person who concludes a contract of credit granting with a bank may request a fall in interest rate to the relevant bank in accordance with Article 30-2 (1) of the Act, in any of the following cases: |
| 1. | Where an individual concludes a contract of credit granting: Where the credit standing is deemed to have been improved through employment, promotion, increase of property or credit rating upgrade; |
| 2. | Where a person who is not an individual (including an individual business entity) concludes a contract of credit granting: Where the credit standing is deemed to have been improved through enhancement of financial position or credit rating upgrade. |
| (2) | A bank which received a request for fall in interest rate pursuant to paragraph (1) may consider matters determined and publicly notified by the Financial Services Commission, such as whether the improved credit standing affects the calculation of interest rate, in deciding whether to accept such request. |
| (3) | The bank shall notify a person who requests a fall in interest rate of a decision whether to accept such request and grounds therefor within 10 business days from the date of receipt of request for a fall in interest rate pursuant to paragraph (1) (not including the period from the date when a person who requests a fall in interest rate is required to supplement materials to the date when such materials are submitted) in writing, or by telephone, text message, electronic mail or fax or in other similar manners. |
| (4) | Except as provided in paragraphs (1) through (3), matters necessary for requirements, procedures, etc. for request for a fall in interest rate shall be determined and publicly notified by the Financial Services Commission. |
[This Article Newly Inserted by Presidential Decree No. 29854, Jun. 11, 2019]
| Article 19 (Issuance of Bank Debentures) |
| (1) | "The limit specified by Presidential Decree" in the main sentence of Article 33 (1), with the exception of its subparagraph, of the Act means five times the amount of equity capital: Provided, That, if the issue amount of bank debentures exceeds five times the amount of equity capital due to the reduction of equity capital, a merger, conversion, etc., although no debenture defined in any subparagraph of Article 33 (1) of the Act (hereinafter referred to as "bank debentures") has been newly issued, the issuance of new bank debentures shall not be allowed until the amount of issuance thereof decreases to not more than five times the amount of equity capital. <Amended by Presidential Decree No. 23427, Dec. 28, 2011; Presidential Decree No. 27290, Jun. 28, 2016> |
| (2) | Where a bank issues new bank debentures in order to redeem bank debentures issued, the amount of issuance of the bank debentures to be redeemed shall not be included in the limit on the issuance of debentures in the main sentence of Article 33 (1) of the Act. In such cases, the bank debentures to be redeemed shall be redeemed within one month after new bank debentures are issued. <Amended by Presidential Decree No. 27290, Jun. 28, 2016> |
| (3) | A bank may issue bank debentures by selling them for a pre-specified period. |
| (4) | Deleted. <by Presidential Decree No. 27414, Jul. 28, 2016> |
| (5) | "Debentures specified by Presidential Decree" in Article 33 (1) 5 of the Act means the debentures determined and publicly notified by the Financial Services Commission, among debentures that a bank issued in accordance with the standards of the Bank for International Settlements or the debentures that a person who engages in a financial business may issue in accordance with any finance-related statutes or any equivalent finance-related statutes of a foreign country. <Newly Inserted by Presidential Decree No. 27290, Jun. 28, 2016> |
| (6) | Where debentures referred to in Article 33 (1) 2 through 4 of the Act (hereinafter referred to as "contingent convertible bonds") are issued, the time when the issuing bank is liquidated or bankrupt may be deemed the maturity of such debentures. <Newly Inserted by Presidential Decree No. 27290, Jun. 28, 2016> |
| 1. | A trigger event shall be an event in which there is a significantly low possibility of a change or an occurrence caused by ordinary efforts of the bank that issued or intends to issue contingent convertible bonds, stockholders or investors of the issuing bank, or other persons who have an interest in the issuance of contingent convertible bonds and shall meet the criteria determined and publicly notified by the Financial Services Commission; |
| (8) | Except as provided in paragraphs (1) through (7), detailed matters necessary concerning conditions, methods, etc. for the issuance of bank debentures shall be determined and publicly notified by the Financial Services Commission. <Newly Inserted by Presidential Decree No. 27290, Jun. 28, 2016> |
[This Article Wholly Amended by Presidential Decree No. 22493, Nov. 15, 2010]
| Article 19-2 (Procedure of Issuing Contingent Bonds Convertible into Stocks of Bank Holding Company) |
| 1. | The total amount of the contingent bonds convertible into stocks of the bank holding company; |
| 2. | Matters that shall be stipulated by articles of incorporation of the unlisted bank and the listed bank holding company under Article 33-3 (11) of the Act; |
| 3. | Matters concerning the capital or reserve, in cases of an increase of the capital or reserve of the unlisted bank or the listed bank holding company; |
| 4. | The date of resolution by the board of directors of the unlisted bank under Article 33-3 (1) 1 of the Act and the date of resolution by the board of directors and the date of resolution by the general meeting of stockholders of the listed bank holding company under Article 33-3 (1) 2 of the Act; |
| 6. | A clause that contingent bonds convertible into stocks of the bank holding company may be issued without a special resolution under the latter part of Article 33-4 (1) of the Act. |
| (2) | “Matters specified by Presidential Decree, including the total amount of the contingent bonds convertible into stocks of the bank holding company” in Article 33-3 (3) of the Act means: |
| 1. | The total amount of the contingent bonds convertible into stocks of the bank holding company; |
| 2. | The amount of each contingent bond convertible into stocks of the bank holding company; |
| 3. | The amount paid for each contingent bond convertible into stocks of the bank holding company; |
| 4. | Matters specified in paragraph (5). |
| (3) | “Day specified by Presidential Decree” in Article 33-3 (6) of the Act means the tenth business day from the day on which a trigger event occurs. |
| (4) | Matters that shall be stipulated in articles of incorporation of the unlisted bank and the listed bank holding company pursuant to Article 33-3 (11) of the Act are as follows: |
| 1. | A clause that the bank may issue the contingent bonds convertible into stocks of the bank holding company; |
| 2. | The total amount of the convertible into stocks of the bank holding company; |
| 4. | Types and details of stocks to be issued by conversion and exchange; |
| 5. | A clause that stockholders shall have an option to acquire the contingent bonds convertible into stocks of the bank holding company and the amount of the contingent bonds convertible into stocks of the bank holding company subject to the option; |
| 6. | A clause that the contingent bonds convertible into stocks of the bank holding company will be issued to any person other than stockholders and the amount of the contingent bonds convertible into stocks of the bank holding company that will be issued to such persons. |
| (5) | The following matters shall be stated in each debenture subscription agreement on the contingent bonds convertible into stocks of the bank holding company and the relevant debenture register: |
| 1. | A clause that the contingent bonds convertible into stocks of the bank holding company may be exchanged with stocks of the listed bank holding company simultaneously at the time such stocks are converted into stocks of the unlisted bank; |
| 2. | Trigger events and conditions of conversion and exchange, including the price of conversion into stocks; |
| 3. | Types and details of the stocks to be issued by conversion and exchange. |
| (6) | Detailed matters necessary concerning the price of conversion of contingent bonds convertible into stocks of a bank holding company into stocks shall be determined and publicly notified by the Financial Services Commission. |
| (7) | Except as provided in paragraphs (1) through (6), detailed matters necessary for the issuance of contingent bonds convertible into stocks of a bank holding company shall be determined and publicly notified by the Financial Services Commission |
[This Article Newly Inserted by Presidential Decree No. 27290, Jun. 28, 2016]
| Article 19-3 (Scope of Debentures) |
| 3. | Rights that may be or must be indicated on negotiable certificates of deposit. |
[This Article Newly Inserted by Presidential Decree No. 29892, Jun. 25, 2019]
| Article 19-4 (Application for Registration of Debentures) |
| (1) | Where a holder, pledgee or any other interested party of debentures, etc. pursuant to Article 33-5 (1) of the Act intends to register such rights, a bank which issues such debentures, etc. (hereinafter referred to as “issuing bank”) shall submit a registration application stating the amount and serial number of each debenture and other matters necessary for registration thereof. |
| (2) | Where the reason for registration pursuant to Article 33-5 (1) of the Act lies in an activity which has the other party, such as transfer or establishment of a pledge, a person who acquires rights by registration (including an agent; hereinafter referred to as “registered obligee”) and the other party (including an agent; hereinafter referred to as “registered obligor”) shall make a joint registration thereof: Provided, That where a written consent of a registered obligor is attached to a registration application, a registered obligee may independently make a registration thereof. |
| (3) | Matters necessary for registration application, such as a registration application, methods and procedures for registration and documents to be submitted, pursuant to paragraphs (1) and (2) shall be determined and publicly notified by the Financial Services Commission. |
[This Article Newly Inserted by Presidential Decree No. 29892, Jun. 25, 2019]
| Article 19-5 (Issuance of Registration Certificate) |
Where an issuing bank completes the registration of debentures, etc., it shall issue a registration certificate, as determined and publicly notified by the Financial Services Commission.
[This Article Newly Inserted by Presidential Decree No. 29892, Jun. 25, 2019]
| Article 19-6 (Application for Cancellation of Registration of Debentures) |
| (1) | A person who applies for cancellation of registration of registered debentures, etc. shall state the amount and serial number of each debenture, etc. to be canceled in a registration cancellation application and submit the application attached with a registration certificate pursuant to Article 19-5. |
| (2) | Matters necessary for application for cancellation of registration, such as a registration cancellation application under paragraph (1), methods and procedures for registration cancellation and documents to be submitted, shall be determined and publicly notified by the Financial Services Commission. |
[This Article Newly Inserted by Presidential Decree No. 29892, Jun. 25, 2019]
| Article 19-7 (Cancellation of Registration for Missing Registered Obligor) |
| (1) | Where a registered obligee is unable to apply for cancellation of registration due to unknown whereabout of a registered obligor, he or she may request a public summons pursuant to the Civil Procedure Act. |
| (2) | Where a registered obligee is unable to apply for cancellation of registration due to unknown whereabout of a registered obligor and a nullification judgement is made, he/she may apply for cancellation of registration by attaching an authenticated copy or certified copy of the nullification judgement to the application for cancellation of registration. |
[This Article Newly Inserted by Presidential Decree No. 29892, Jun. 25, 2019]
| Article 19-8 (Preparation, Keeping, and Management of Registry) |
| (1) | Upon receipt of an application for registration pursuant to Article 19-4 (1), an issuing bank shall prepare a registry, stating matters necessary for registration such as registration number, registration date, name and address of a registered obligee and grounds for registration. |
| (2) | Matters necessary for methods and procedures of preparing a registry pursuant to paragraph (1) and keeping and management thereof shall be determined and publicly notified by the Financial Services Commission. |
[This Article Newly Inserted by Presidential Decree No. 29892, Jun. 25, 2019]
| Article 19-9 (Precedence of Rights to Registered Debentures) |
| (1) | The precedence of rights to registered debentures, etc. shall be in order of registration. |
| (2) | The order of registration shall be according to the precedence number when registered in the same columns of the registration form, and shall be according to the receipt number when registered in separate columns. |
| (3) | The precedence of additional registration shall be according to the precedence of main registration: Provided, That the precedence of additional registrations relating to the same main registration shall be in order of additional registration. |
[This Article Newly Inserted by Presidential Decree No. 29892, Jun. 25, 2019]
| Article 19-10 (Deposit of Registered Bearer Debentures) |
[This Article Newly Inserted by Presidential Decree No. 29892, Jun. 25, 2019]
| Article 20 (Standards for Management Instruction) |
| (1) | The standards for management instruction provided in Article 34 (2) of the Act shall include the following matters: <Amended by Presidential Decree No. 23427, Dec. 28, 2011> |
| 1. | Matters concerning the standards for a bank to hold equity capital to address credit risk of the bank, such as the ratio of equity capital to risk-weighted assets based on the standards of the Bank of International Settlement; |
| 2. | Matters concerning the forward-looking criteria applicable to assets held by a bank, such as loan credits, etc.; |
| 3. | Matters concerning the standards for controlling credit granting to persons determined and publicly notified by the Financial Services Commission as the integrated control of credit granting is deemed necessary; |
| 4. | Matters concerning the standards for holding liquid assets against floating debts; |
| 5. | Other matters determined and publicly notified by the Financial Services Commission to secure soundness of a bank. |
| (2) | The Financial Services Commission may request the relevant bank to submit a plan or a contract to improve the vulnerabilities or may conclude an agreement with the relevant bank to improve its management, as part of the measures pursuant to Article 34 (4) of the Act, if the Commission considers that the bank fail to comply with the standards for management instruction provided in paragraph (1) or determines to have vulnerabilities in its management. <Newly Inserted by Presidential Decree No. 23427, Dec. 28, 2011> |
| (3) | The Financial Services Commission shall determine and publicly notify the request to submit a plan or a contract provided in paragraph (2), procedures and methods for concluding an agreement and other necessary matters. <Newly Inserted by Presidential Decree No. 23427, Dec. 28, 2011> |
[This Article Newly Inserted by Presidential Decree No. 22493, Nov. 15, 2010]
| Article 20-2 (Specific Types of Unsound Business Conduct) |
Specific types of, or criteria for, the unsound business conduct under Article 34-2 (1) of the Act are as follows: <Amended by Presidential Decree No. 28925, May 29, 2018> | 1. | Issuing a cashier's check or a negotiable certificate of deposit to a bank user or making the entry of a deposit without receiving any deposit from a bank user in order to give an undue benefit to the bank user; |
| 2. | Aiding and abetting a bank user to borrow a loan, deposit the borrowed money, and then borrow another loan secured by the deposit, in order to assist the bank user in unlawful transactions, such as evading a tax, window-dressing accounts, and making an unlawful inside transaction; or aiding and abetting other people to issue and sell a negotiable certificate of deposit or a debenture under Article 4 (3) of the Financial Investment Services and Capital Markets Act in the name of any bank user; |
| 3. | Providing an interest in property to a bank user in excess of the normal level determined and publicly notified by the Financial Services Commission in relation to banking services, incidental services, or concurrently-provided services (excluding services under Article 18-2 (2) 1 through 6, 8 through 10, and 13 through 18); |
| 4. | Using information, etc. obtained in connection with banking services, incidental services, or concurrently-provided services (hereinafter referred to as "banking services, etc.") in order to utilize the information, etc. for a transaction in which a conflict of interest is likely to arise between the bank and a bank user or between a specific bank user and any other bank user; |
| 5. | Other acts determined and publicly notified by the Financial Services Commission that undermine sound operation of banks or sound practices in credit transaction in connection with banking services, etc. |
[This Article Newly Inserted by Presidential Decree No. 27290, Jun. 28, 2016]
| Article 20-3 (Preventive Measures against Financial Accidents) |
| 1. | Measures for preventing suspicious criminal acts of executive officers and/or employees of the bank, such as fraud, embezzlement, misappropriation, theft, and bribery; |
| 2. | Measures for preventing recurrence of financial accidents that occurred in the past or similar financial accidents; |
| 3. | Other measures determined and publicly notified by the Financial Services Commission for preventing acts that hinder the protection of bank users by handling business affairs illegally or wrongfully. |
| (2) | "Measures prescribed by Presidential Decree" in Article 34-3 (1) 2 of the Act means internal inspection plans and guidelines for conducting inspections in regard to business operations of branch offices, including monitoring and evaluation of the performance of preventive measures against financial accidents. |
| (3) | "Measures prescribed by Presidential Decree" in Article 34-3 (1) 3 of the Act means the guidelines and procedure for the use of information of bank users, which shall be observed in the course of promotion, sales, etc. of bank products for the protection of information of bank users. |
| (4) | "Measures prescribed by Presidential Decree" in Article 34-3 (1) 4 of the Act means measures for developing and implementing inspection techniques necessary for business affairs with a high possibility of financial accidents, such as electronic computerization and cash transportation, and preventive measures against financial accidents in relation to such business affairs. |
| (5) | If the amount of a financial accident (referring to the amount of the loss that a bank sustains upon the occurrence of a financial accident without subtracting the amount that is expected to be recovered; hereinafter the same shall apply) is at least 300 million, the bank shall report details of the financial accidents to the Financial Services Commission in accordance with Article 34-3 (3) of the Act by the day immediately after the day on which the financial accident occurs and shall give a public notice thereof through the bank's website and by other means within 15 days from the date of occurrence of the financial accident: Provided, That if the amount of the relevant financial accident is less than one billion won, the relevant bank many not give a public notice thereof. |
| (6) | Matters necessary for the procedure, methods, etc. for a report and public notice made under Article 34-3 (3) of the Act shall be determined and publicly notified by the Financial Services Commission. |
[This Article Newly Inserted by Presidential Decree No. 27290, Jun. 28, 2016]
| Article 20-4 (Scope of Persons Sharing Credit Risk) |
[This Article Wholly Amended by Presidential Decree No. 22493, Nov. 15, 2010]
| Article 20-5 (Grounds for Exceeding Credit Granting Limits) |
| (1) | Credit granting by a bank may exceed 25/100 of its equity capital due to grounds stipulated under Article 35 (1) 1 of the Act in any of the following cases: |
| 1. | Where any credit is additionally granted to a company for which the rehabilitation procedure under the Debtor Rehabilitation and Bankruptcy Act is in progress, or for which management normalization is jointly implemented by banks for corporate restructuring, etc.; |
| 2. | Where any credit is additionally granted to a person who has taken over the company provided in subparagraph 1, as stipulated by a take-over contract; |
| 3. | Where the Financial Services Commission recognizes that it is essential for industrial development, such as facilitating projects for infrastructure, or the stabilizing the national life. |
| (2) | Credit granted by a bank may exceed 25/100 of its equity capital due to the ground provided in Article 35 (1) 2 of the Act in any of the following cases: |
| 1. | Where the value converted into Korean won increases following a fluctuation of exchange rates; |
| 2. | Where the equity capital of the relevant bank is reduced; |
| 3. | Where the constitution of same borrowers changes; |
| 4. | Where a merger or a transfer and/or acquisition of business occurs among the companies subjected to credit granting; |
| 5. | Where the Financial Services Commission recognizes that the credit granting limit is exceeded due to inevitable reasons, such as radical changes in economic conditions, and without any causes attributable to a bank. |
[This Article Wholly Amended by Presidential Decree No. 22493, Nov. 15, 2010]
| Article 20-6 (Reasons for Extension of Period for Credit Granting Limit) |
"Cases falling under extenuating circumstances prescribed by Presidential Decree" in the proviso to Article 35 (2) of the Act means any of the following cases: <Amended by Presidential Decree No. 27290, Jun. 28, 2016> | 1. | Where it is impracticable to make a recovery by the due date because the maturity of credit granting provided has yet to arrive; |
| 2. | Where grounds referred to in Article 20-5 (2) 1 or 2 continue to exist for a long period and the recovery of such credit granting is likely to significantly harm the business stability of the party to whom credit has been granted; |
| 3. | Other cases corresponding thereto under subparagraphs 1 and 2 where the Financial Services Commission recognizes that a prolonged excess of the credit for a specified period does not significantly harm the asset quality of the relevant banks. |
[This Article Wholly Amended by Presidential Decree No. 22493, Nov. 15, 2010]
| Article 20-7 (Credit Granting Limits on Large Stockholders of Banks) |
| (2) | The amount equivalent to the contribution ratio to the relevant bank by a large stockholder provided for in Article 35-2 (1) of the Act shall be the amount obtained by multiplying the ratio, computed by dividing the number of voting stocks of the relevant bank a large stockholder retains by the gross number of voting stocks the said bank issued, by the equity capital of the relevant bank. |
| (4) | Where a bank exceeds a limit stipulated in paragraphs (1) through (3) due to any of the following causes, notwithstanding that it has not extended any additional credit, it shall submit a plan for making it to satisfy the limit to the Financial Services Commission within three months from the occurrence of such causes, and obtain its approval: |
| 1. | Where the value converted into Korean won increases following a fluctuation of exchange rates; |
| 2. | Where the equity capital of the relevant bank is reduced; |
| 3. | Where the constitution of the same borrowers changes; |
| 4. | Where a merger or acquisition of the business occurs among the companies; |
| 5. | Other inevitable causes recognized by the Financial Services Commission. |
| (5) | "Amount prescribed by Presidential Decree" in the former part of Article 35-2 (4) and (5) of the Act means the value of a single transaction equivalent to 10/10,000 of the equity capital, or five billion won, whichever is a lesser amount. In such cases, the detailed standard for computing a single transaction shall be determined and publicly notified by the Financial Services Commission. |
| (7) | Pursuant to Article 35-2 (6) of the Act, a bank shall give a public notice of the scale of credit granting to large stockholders as at the end of each quarter, the amount of credit granting increased or decreased during a quarter, terms and conditions of transactions for credit granting, and other matters determined and publicly notified by the Financial Services Commission within one month after the end of each quarter. |
| (8) | A large stockholder defined in Article 35-2 (8) of the Act does not include a non-profit corporation or association or an organization, which meets all the following criteria (hereinafter referred to as “public service corporation”), among the large stockholder's specially related persons: <Amended by Presidential Decree No. 27290, Jun. 28, 2016> |
| 2. | The transfer, trading, etc. provided for in Article 35-2 (8) of the Act shall be in compliance with the standards determined and publicly notified by the Financial Services Commission. |
[This Article Wholly Amended by Presidential Decree No. 22493, Nov. 15, 2010]
| Article 20-8 (Acquisition Limits on Equity Securities Issued by Large Stockholders) |
| (3) | "Period set by Presidential Decree" in Article 35-3 (3) of the Act means one year: Provided, That where the Financial Services Commission deems that it is inevitable in consideration of the size of equity securities owned in excess by the bank, and the situations of stock markets, etc., it may extend such period. |
| (5) | Pursuant to Article 35-3 (6) of the Act, a bank shall give public notice of the scale of the issued equity securities acquired by the large stockholders as at the end of each quarter, the amount of the owned equity securities increased or decreased during a quarter, acquisition price of owned equity securities, and other matters determined and publicly notified by the Financial Services Commission within one month after the end of each quarter. |
[This Article Wholly Amended by Presidential Decree No. 22493, Nov. 15, 2010]
| Article 20-9 (Prohibition of Exercising Undue Influence by Large Stockholders) |
"Acts prescribed by Presidential Decree" in subparagraph 4 of Article 35-4 of the Act means the following acts: <Amended by Presidential Decree No. 27290, Jun. 28, 2016> | 1. | Demanding to establish disadvantageous terms and conditions of a contract, such as interest rate, security, etc., without any justifiable ground, when extending credit to competitive business entities; |
| 2. | Having a bank gratuitously transfer its assets to a public service corporation, etc. provided for in Article 20-7 (8), or trade and/or exchange its assets or extend credit under conditions that are substantially unfavorable to the relevant bank compared to ordinary terms and conditions of transactions. |
[This Article Wholly Amended by Presidential Decree No. 24658, Jul. 8, 2013]
| Article 20-10 (Restrictions, etc. on Transactions with Large Stockholders) |
| (1) | "Cases as prescribed by Presidential Decree" in Article 35-5 (2) of the Act means cases where large stockholders are highly likely to conduct an illegal transaction with the relevant bank provided for in the following subparagraphs: <Amended by Presidential Decree No. 24697, Aug. 27, 2013> |
| 1. | Where its liabilities exceed its assets; |
| 2. | Where the bank that has granted the largest amount of credit to large stockholders (excluding a bank in which the relevant large stockholder is the large stockholder) is classified below the standards determined by the Financial Services Commission as a result of evaluation on credit risk of the relevant large stockholder in accordance with the forward-looking criteria determined and publicly notified by the Financial Services Commission; |
| (2) | "Measures prescribed by Presidential Decree against the bank, including, but not limited to, issuing an order for the bank to restrict credit granting to the large stockholder" in Article 35-5 (2) of the Act means the following measures: <Amended by Presidential Decree No. 27290, Jun. 28, 2016> |
| 1. | Prohibition of new credit granting to the large stockholders; |
| 3. | Prohibition of new acquisition of stocks issued by the large stockholders. |
[This Article Wholly Amended by Presidential Decree No. 22493, Nov. 15, 2010]
| Article 21 (Limit, etc. on Investments, etc. in Subsidiaries) |
| (1) | “Ratio prescribed by Presidential Decree” in Article 37 (2) 1 of the Act means 20/100. <Amended by Presidential Decree No. 27290, Jun. 28, 2016> |
| (2) | Pursuant to Article 37 (2) of the Act, the Financial Services Commission may determine the following conditions as the requirements for banks that are eligible to acquire the equity securities issued by other companies: |
| 1. | Management status of a bank; |
| 2. | Management status of a subsidiary, etc. (referring to a subsidiary, etc. in the proviso to Article 37 (2) of the Act; hereinafter the same shall apply) prior-invested by a bank; |
| 3. | Gross ceiling on investments in a subsidiary, etc. |
| (3) | In the application of Article 37 (2) 2 of the Act, when computing the total amount of investment, the amount of investment in a trust account stipulating for the replenishment of capital shall be included, but an amount invested under statutes and amount for corporate restructuring, etc., recognized by the Financial Services Commission shall be excluded. |
| (5) | "Ceiling prescribed by Presidential Decree" in Article 37 (3) 1 of the Act means 10/100 of the equity capital of the relevant bank for respective subsidiaries, etc. and 20/100 of the equity capital of the relevant bank for all subsidiaries, etc. |
| (6) | "Cases prescribed by Presidential Decree, such as merger, etc. of the subsidiaries, etc. of the bank" in Article 37 (3) 1 of the Act means any of the following cases: |
| 1. | Where it is essential to grant credit to subsidiaries, etc., the merger of which is resolved at the board of directors of a bank; |
| 2. | Where banks have agreed to jointly grant credit to subsidiaries, etc. which is implementing the normalization of their management. |
| (7) | Where a bank exceeds the ceilings stipulated in paragraphs (5) due to any of the following causes, notwithstanding that it has not granted any additional credit, it shall submit a plan for making it to satisfy the ceilings to the Financial Services Commission within one month from the occurrence of such causes: |
| 1. | Where the value converted into Korean won increases following a fluctuation of exchange rates; |
| 2. | Where the equity capital of the relevant bank is reduced; |
| 3. | A merger among subsidiaries, etc., or transfer or acquisition of business; |
| 4. | Other cases determined and publicly notified by the Financial Services Commission. |
| 1. | Bearing expenses to be borne by a subsidiary, etc. without any justifiable ground; |
| 2. | Providing or obtaining information on bank users acquired in the course of conducting business affairs to/from a subsidiary, etc. without the consent of the bank users: Provided, That cases of providing or obtaining such information under statutes shall be excluded; |
| 3. | Other acts of favorably treating a subsidiary, etc. without any reasonable ground, which are determined and publicly notified by the Financial Services Commission. |
| 1. | Where a subsidiary bank already owns the stocks issued by another new subsidiary bank of the parent bank (referring to a parent bank provided for in Article 37 (5) of the Act; hereinafter the same shall apply); |
| 2. | Where a new subsidiary bank of the parent bank already owns the stocks issued by the relevant parent bank or its subsidiary bank; |
| (10) | Where a subsidiary bank owns stocks issued by the parent bank, etc. due to a cause provided in any subparagraph of paragraph (9), it shall dispose of the relevant stocks within two years from the date of acquisition: Provided, That where the Financial Services Commission deems that it is inevitable in light of the scale of stocks owned by a subsidiary bank, the situations of stock markets, etc., it may extend such period. |
| (11) | "Standards prescribed by Presidential Decree" in Article 37 (6) 3 of the Act means the following standards: Provided, That where a subsidiary bank falls under any subparagraph of paragraph (12), it shall endeavor to satisfy the following standards; and where it is deemed inevitable in light of the scale of credit granting by a subsidiary bank, the Financial Services Commission may extend the said period: |
| 1. | Prohibition of credit granting to the parent bank; |
| 2. | Credit granting to another subsidiary bank: Within 10/100 of the equity capital of said subsidiary bank; |
| 3. | The sum of credit granting to another subsidiary bank: Within 20/100 of the equity capital of said subsidiary bank. |
| (12) | "Where a subsidiary bank falls under any subparagraph of paragraph (12)" in paragraph (11) means any of the following cases: <Amended by Presidential Decree No. 27290, Jun. 28, 2016> |
| 1. | Where credit has been granted to the parent bank, prior to establishing a relationship of parent and subsidiary; |
| 2. | Where the scale of credit granting to a new subsidiary of the parent bank has exceeded the limit provided for in paragraph (11) 2 and 3; |
| 3. | Where the standards provided in paragraph (11) have been violated due to the causes provided in Article 20-7 (4) 1, 2, 4, and 5. |
| 1. | Credit granting for offering stocks issued by the parent bank, etc. as security or for purchasing them; |
| 2. | Loans to executive officers or employees of the parent bank, etc. (excluding petty loans determined by the Financial Services Commission). |
| (14) | Where a subsidiary bank grants credit to the parent bank, etc. in the main sentence of Article 37 (7) of the Act, a security in excess of the ratio determined and publicly notified by the Financial Services Commission by type of securities, such as marketable securities, real estate, etc. within the scope of 150/100 of the amount of credit granting. |
| (15) | "Cases meeting the requirements prescribed by Presidential Decree, such as the credit granting, etc. necessary for restructuring the subsidiary bank, parent bank, etc." in the proviso to Article 37 (7) of the Act means any of the following cases: |
| 1. | Cases applicable to credit granting necessary for restructuring the relevant subsidiary bank, the parent bank, etc.; |
| 2. | Cases applicable to credit granting provided before the relevant subsidiary becomes a subsidiary bank of the parent bank: Provided, That this shall be limited to cases where the relevant subsidiary bank satisfies paragraph (13) within two years from the date on which it becomes a subsidiary bank of the parent bank; |
| 4. | Cases applicable to temporary credit granting provided on the basis of assets under collection; |
| 5. | Cases applicable to overdraft facilities provided on the basis of the repayment of the fund on the day at an ordinary level. |
| (16) | "Bad assets prescribed by Presidential Decree" in the main sentence of Article 37 of the Act means claims, etc. against debtors, etc. who have or are considered to have difficulty repaying debts when taking account of their management details, debt status, future cash flows, etc., which are assets determined and publicly notified by the Financial Services Commission. |
[This Article Wholly Amended by Presidential Decree No. 22493, Nov. 15, 2010]
| Article 21-2 (Limit, etc. on Investment in Securities) |
| (1) | "Ratio prescribed by Presidential Decree" in the former part of subparagraph 1 of Article 38 of the Act with the exception of its items means 100/100. <Amended by Presidential Decree No. 25840, Dec. 9, 2014> |
| (4) | "Real estate for business purposes prescribed by Presidential Decree" in subparagraph 2 of Article 38 of the Act means any of the following real estate: |
| 1. | Business facilities, such as a place of business and office; |
| 4. | Land, buildings, and its appurtenant facilities to be used for purposes stipulated under subparagraphs 1 through 3. |
| (5) | "Ratio prescribed by Presidential Decree" in subparagraph 3 of Article 38 of the Act menas 60/100. <Newly Inserted by Presidential Decree No. 25840, Dec. 9, 2014> |
| (6) | Where a bank has come to exceed the limit under paragraph (5) as its equity capital inevitably decreased due to an occurrence of losses, etc. though it had not acquired any new real estate for business purposes under paragraph (4) (hereinafter in this paragraph, referred to as "real estate for business purposes"), it shall endeavor to satisfy the said limit within one year from the date on which it exceeded the limit: Provided, That the Financial Services Commission may extend the said period if deemed inevitable in view of the size of the real estate for business purposes excessively owned by a bank, situations of real estate markets, etc. <Amended by Presidential Decree No. 25840, Dec. 9, 2014> |
[This Article Wholly Amended by Presidential Decree No. 22493, Nov. 15, 2010]
| Article 21-3 Deleted. <by Presidential Decree No. 22493, Nov. 15, 2010> |
| Article 22 Deleted. <by Presidential Decree No. 17717, Aug. 21, 2002> |
| Article 23 (Timing for Branches of Foreign Banks to Accumulate Legal Reserves) |
Where a branch of a foreign bank (referring to a branch of a foreign bank provided for in the main sentence of Article 59 (1) of the Act; hereinafter the same shall apply) accumulates the legal reserves pursuant to Article 40 of the Act, the term "whenever it pays dividends on earned net profits" under Article 40 of the Act shall be construed as "when it settles accounts." [This Article Wholly Amended by Presidential Decree No. 22493, Nov. 15, 2010]
| Article 24 (Public Disclosure of Management) |
| 1. | Matters concerning financial affairs, and profits and losses; |
| 2. | Matters concerning fund-raising and operation; |
| (2) | The Financial Services Commission may set forth detailed standards concerning matters to be disclosed as referred to in paragraph (1) 1 through 3. |
[This Article Wholly Amended by Presidential Decree No. 22493, Nov. 15, 2010]
| Article 24-2 (Reports on Alterations, etc. of Articles of Association) |
| (1) | Where a bank falls under any subparagraph of Article 47 of the Act, it shall report such fact to the Financial Services Commission without delay: Provided, That where a bank falls under subparagraph 7 of Article 47 of the Act and, as a limited partner, invests in a subsidiary company, etc. determined and publicly notified by the Financial Service Commission, it may report such fact semi-annually. <Amended by Presidential Decree No. 25840, Dec. 9, 2014> |
| (2) | "Where it performs acts prescribed by Presidential Decree" in subparagraph 10 of Article 47 of the Act means cases where a bank falls under any of the following cases: |
| 1. | Where an overseas local corporation or overseas branch of a bank is subject to a sanction from a local supervisory agency, or major changes, such as a financial accident, occur; |
| 2. | Where a branch of a foreign bank falls under any of the following cases: |
| (a) | Where the articles of incorporation, trade name or capital of a foreign bank is altered; |
| (b) | Where the head of a foreign bank is dismissed; |
| (c) | Where a foreign bank is merged with another bank or is dissolved; |
| 3. | Where part of business is transferred or acquired: Provided, That this shall not apply where authorization is obtained under Article 55 (1) 3 of the Act; |
| 4. | Where a bank falls under a matter determined and publicly notified by the Financial Services Commission. |
[This Article Wholly Amended by Presidential Decree No. 22493, Nov. 15, 2010]
| Article 24-3 (Requests for Holding Reserves) |
"Measures prescribed by Presidential Decree, such as holding reserves for unsound assets" in Article 50 of the Act means the following measures: | 1. | To hold reserves for unsound assets; |
| 2. | To change the book values of assets; |
| 3. | To write off valueless assets. |
[This Article Wholly Amended by Presidential Decree No. 22493, Nov. 15, 2010]
| Article 24-4 (Prohibition, etc. of Unfair Business Practices) |
| (1) | Specific details on unfair business practices under Article 52-2 (1) of the Act (hereinafter referred to as "unfair business practices") shall be as follows: <Amended by Presidential Decree No. 25176, Feb. 11, 2014> |
| 1. | Coercing a borrower to purchase bank products, such as deposits and installment savings (referring to bank products referred to in Article 52-3 of the Act (1); hereinafter the same shall apply), contrary to his/her intent in connection with credit transactions; |
| 2. | Restricting cancellation or withdrawal of bank products, such as deposits and installment savings, contrary to borrower's intent in connection with credit transactions; |
| 3. | Requesting a borrower or any third person to provide comprehensive collateral security (referring to the provision of goods or rights to secure several liabilities that have incurred or uncertain liabilities that could incur in the future within the fixed limit) or comprehensive collateral guarantee (referring to the guarantee of several liabilities that have incurred or uncertain liabilities that could incur in the future within the fixed limit) without any justifiable ground in acquiring security or warranty in connection with credit transactions; |
| 4. | Requesting joint guarantee to a third person who provides security in connection with credit transactions; |
| 5. | Coercing related persons of a borrower determined and publicly notified by the Financial Service Commission, such as the representative, executive officers, etc. of a small and medium enterprise (referring to a small and medium enterprise determined and publicly notified by the Financial Services Commission from among small and medium enterprises referred to in Article 2 of the Framework Act on Small and Medium Enterprises; hereinafter in this paragraph, the same shall apply), to purchase bank products contrary to their intent in connection with credit transactions; |
| 6. | Selling bank products, in connection with credit transactions, to a small and medium enterprise which is a borrower and to other borrowers or related persons of such borrowers determined and publicly notified by the Financial Services Commission within one month before and after the day on which such credit transactions are conducted, which satisfies the requirements determined and publicly notified by the Financial Services Commission in consideration of the characteristics, the sale amount, etc. of bank products to protect relevant borrowers and related persons of such borrowers; |
| 7. | Other acts corresponding to those prescribed in subparagraphs 1 through 6, which are determined and publicly notified by the Financial Services Commission to protect bank users' rights and interests. |
| (2) | A bank shall take the following measures to protect the bank users, including depositors, etc. and to prevent financial dispute pursuant to Article 52-2 (2) of the Act: |
| 1. | To publish matters bank users need to attend to, such as interest rates, cancellation of contracts, and matters concerning the protection of depositors; |
| 2. | To provide relevant information and data, and explain details thereof in each stage of a financial transaction according to the following classifications: Provided, That the provision and explanation of information and data may be omitted in cases determined and publicly notified by the Financial Services Commission, such as renewal of a contract under the same terms and conditions as the one already executed: |
| (a) | When soliciting execution of a contract: Major particulars on terms and conditions of a contract, costs of transaction, etc.; |
| (b) | When a bank user makes subscription: Standard terms and conditions; |
| (c) | When executing a contract: Contract documents. |
| (3) | Any bank user may apply for an inspection of standard terms and conditions and contract documents. In such cases, a bank shall comply therewith without any justifiable ground. |
| (4) | Matters necessary for unfair business practices and protective measures of bank users, in addition to matters provided for in paragraphs (1) through (3) shall be determined and publicly notified by the Financial Services Commission. |
[This Article Newly Inserted by Presidential Decree No. 22493, Nov. 15, 2010]
| Article 24-5 (Advertisements) |
| (1) | A bank shall observe the following rules when it advertises bank products pursuant to Article 52-3 of the Act: <Amended by Presidential Decree No. 27414, Jul. 28, 2016> |
| 1. | Not to expressly indicate matters related to the scope and methods of calculating interest rates, timing to pay and impose interest, additional benefit and expenses when such matters are not determined; |
| 2. | Not to claim that a bank product has comparative superiority over other finance products without presenting a specific basis and details concerning the scope and methods of calculating interest rates, timing to pay and impose interest, additional benefit and expenses; |
| 3. | To reflect matters to be observed in connection with production and content of advertisements in the internal control standards; |
| (2) | A bank shall keep relevant records, such as the content of an advertisement, etc. on a bank product for a period longer than that during which the bank product exists. |
| (3) | Necessary matters concerning methods and procedures for advertisements, a period for keeping relevant records, such as the content of an advertisement and other relevant matters, in addition to matters provided for in paragraphs (1) and (2) shall be determined and publicly notified by the Financial Services Commission. |
[This Article Newly Inserted by Presidential Decree No. 22493, Nov. 15, 2010]
| Article 24-6 (Measures for Protecting Employees Providing Customer Service) |
| 1. | Where it is considered that a customer's abusive language, sexual harassment, physical violence, or any similar offense (hereinafter referred to as "abusive language, etc.") violates any provision concerning criminal punishment in a relevant Act and the employee who sustains damage by such act requests to take a measure: Filing a criminal complaint with the relevant investigative authority; |
| 2. | Where a customer's abusive language, etc. does not violate any provision concerning criminal punishment in a relevant Act but it is considered necessary to take a measure, taking into consideration of the degree of damage to an employee from such act, the possibility of incurrence of damage to the employee and other employees in the future, etc.: Requesting the relevant investigative authority to take necessary measures; |
| 3. | Rendering administrative and procedural assistance to employees in taking measures personally against a customer who uses abusive language, etc., such as filing criminal complaints or charges with the relevant investigative authority and claiming for damage; |
| 4. | Conducting educational programs with regard to the code of conduct of employees, etc. to prevent or respond to customers' abusive language, etc.; |
| 5. | Other measures determined and publicly notified by the Financial Services Commission as necessary for protecting employees from customers' abusive language, etc. |
[This Article Newly Inserted by Presidential Decree No. 27290, Jun. 28, 2016]
| Article 24-7 (Sanctions, etc. against Private Equity Funds, etc.) |
| 1. | Request or recommendation to improve business approaches; |
| 2. | Other measures the Financial Services Commission can take according to the Act, this Decree, and other related statutes. |
| 2. | Other measures the Financial Services Commission can take according to the Act, this Decree and other related statutes. |
| 2. | Other measures the Financial Services Commission can take according to the Act, this Decree and other related statutes. |
[This Article Wholly Amended by Presidential Decree No. 22493, Nov. 15, 2010]
| Article 24-8 (Authorization for Merger, etc.) |
| (1) | Where the Financial Services Commission intends to authorize a division or merger pursuant to Article 55 (1) 1 of the Act, it shall examine whether the following requirements are satisfied: |
| 1. | Not to impede the efficiency of the financial industry and maintenance of practices in credit transactions; |
| 2. | Business plans and organizational operation plans following the division or merger shall be appropriate; |
| 3. | A change in the ownership structure of a bank following the division or merger shall conform to the statutes; |
| (2) | Where the Financial Services Commission intends to authorize the dissolution or closure of the banking business under Article 55 (1) 2 of the Act, it shall examine whether the following requirements are satisfied: |
| 1. | It shall be inevitable in light of the management and financial status of the relevant bank; |
| 2. | It shall not impede the protection of users including depositors, etc., and maintenance of practices in credit transactions; |
| (3) | Paragraph (1) shall apply mutatis mutandis to authorizations for acquisition of business under Article 55 (1) 3 of the Act, and paragraph (2) shall apply mutatis mutandis to the authorization of the transfer of business. |
| (4) | The Financial Services Commission may determine specific requirements, application documents and other necessary matters for the authorization under Article 55 (1) of the Act. |
| (5) | "Transfer or acquisition of the major part prescribed by Presidential Decree" in Article 55 (1) 3 of the Act means any of the following transfer or acquisition: |
| 1. | Partial transfer or acquisition of services provided in each subparagraph of Article 27 (2); |
| 2. | Partial transfer or acquisition of business provided in each subparagraph of Article 28 (1). |
[This Article Wholly Amended by Presidential Decree No. 22493, Nov. 15, 2010]
| Article 24-9 (Authorization for Establishment, etc. of Branches of Foreign Banks) |
| (1) | Where the Financial Services Commission intends to authorize the establishment of a branch or agency of a foreign bank pursuant to Article 58 (1) of the Act, it shall verify matters in relation to the head office and representative of the relevant foreign bank. |
| (2) | Where the Financial Services Commission intends to authorize the closure of a branch or agency of a foreign bank pursuant to Article 58 (1) of the Act, it shall examine whether it is in conformity with the following: |
| 1. | Plans for liquidating the assets and debts following the closure shall be appropriate and shall not impede the protection of creditors including domestic depositors, etc.; |
| 2. | Plans for measures, such as the payment of retirement allowances to domestic partners, shall be appropriate. |
| (3) | The Financial Services Commission may determine specific requirements, application documents, and other necessary matters for the authorization under Article 58 (1) of the Act. |
[This Article Wholly Amended by Presidential Decree No. 22493, Nov. 15, 2010]
| Article 25 (Scope of Domestically-Held Assets) |
Scope of assets to be held in the Republic of Korea by a branch of a foreign bank under Article 62 (1) of the Act shall be the assets equivalent to the operating funds under Article 26. [This Article Wholly Amended by Presidential Decree No. 22493, Nov. 15, 2010]
| Article 26 (Fictitious Capital Stock) |
Pursuant to Article 63 of the Act, any of the following funds recognized by the Financial Services Commission as operating funds of a branch of a foreign bank shall be deemed its capital stock: <Newly Inserted by Presidential Decree No. 27290, Jun. 28, 2016> | 1. | Funds in Korean currency, which the head office of a foreign bank has supplied to its branch office by selling funds in a foreign currency to any of the following financial institutions, for the purposes of the establishment of the branch office and business activities: |
| (e) | The Nonghyup Bank established under the Agricultural Cooperatives Act; |
| (f) | The Suhyup Bank established under the Fisheries Cooperatives Act; |
| 3. | Funds transferred from earned surplus carried forward by a branch of a foreign bank prior-established in the Republic of Korea to establish an additional branch of the foreign bank; |
| 4. | Funds in Korean currency raised by selling funds in foreign currency by a branch of a foreign bank to the Bank of Korea; |
| 5. | Funds operated in the Republic of Korea, among those borrowed from the head office or overseas branch of a foreign bank with a maturity of more than one year. |
[This Article Wholly Amended by Presidential Decree No. 22493, Nov. 15, 2010]
| Article 26-2 (Entrustment of Authority) |
| (1) | The Financial Services Commission shall entrust authority stipulated in each subparagraph of attached Table 3 to the Governor of the Financial Supervisory Service pursuant to Article 65 of the Act. |
| (2) | The Governor of the Financial Supervisory Service shall report the details on processing affairs entrusted under paragraph (1) to the Financial Services Commission every six months: Provided, That the reporting period may be separately determined for affairs determined and publicly notified by the Financial Services Commission. |
[This Article Newly Inserted by Presidential Decree No. 22493, Nov. 15, 2010]
| Article 26-3 (Criteria, etc. for Imposition of Penalty Surcharges) |
| (1) | The criteria for imposing a penalty surcharge under Article 65-3 of the Act shall be as specified in attached Table 3-2. <Amended by Presidential Decree No. 28382, Oct. 17, 2017> |
| (2) | Where the Financial Services Commission intends to impose a penalty surcharge under Article 65-4 of the Act, it shall give a written notice of its payment by specifying the kind of the violation and the amount of the penalty surcharge. |
| (3) | A person in receipt of a notice under paragraph (2) shall pay the penalty surcharge to the receiving agency determined by the Financial Services Commission within 60 days from the date on which he/she receives the notice. <Amended by Presidential Decree No. 28382, Oct. 17, 2017> |
| (4) | Except as provided in this Decree, matters necessary for imposing penalty surcharges shall be determined and publicly notified by the Financial Services Commission. |
[This Article Wholly Amended by Presidential Decree No. 22493, Nov. 15, 2010]
| Article 26-4 (Extension of Payment Deadline of Penalty Surcharges and Payment of Penalty Surcharges in Installments) |
| (1) | Any extension of the payment deadline under Article 657 (1) of the Act shall not exceed one year from the date following the said payment deadline. |
| (2) | Where payment in installments is permitted under Article 65-7 (1) of the Act, the intervals between each of the installment payment deadlines shall be within six months, and the frequency of installments shall be within three occasions. |
| (3) | Matters necessary for the extension of the payment deadline under Article 65-7 (2) of the Act or an application for payment in installments shall be determined and publicly notified by the Financial Services Commission. |
[This Article Wholly Amended by Presidential Decree No. 22493, Nov. 15, 2010]
| Article 26-5 (Additional Dues) |
"Additional dues prescribed by Presidential Decree" in the former part of Article 65-8 (1) of the Act means an amount computed by applying 6/100 per year to the penalty surcharges in default. <Amended by Presidential Decree No. 28382, Oct. 17, 2017> [This Article Wholly Amended by Presidential Decree No. 22493, Nov. 15, 2010]
| (2) | The payment deadline for the penalty surcharges in default where a demand notice is issued under paragraph (1) shall be within ten days from the date on which the demand notice is issued. |
[This Article Wholly Amended by Presidential Decree No. 22493, Nov. 15, 2010]
| Article 26-7 (Entrustment of Disposition on Default) |
| (1) | Where the Financial Services Commission entrusts the Commissioner of the National Tax Service with the affairs of dispositions on defaults under Article 65-8 (3) of the Act, it shall do so in writing by attaching the following documents: |
| 1. | A written resolution of the Financial Services Commission; |
| 2. | A written resolution of collection of annual revenues and a notice thereof; |
| 3. | A demand notice for payment. |
| (2) | Where the Commissioner of the National Tax Service has been entrusted with the affairs of dispositions on defaults under paragraph (1), he/she shall notify in writing the Financial Services Commission of any of the following matters within 30 days from the date on which the reasons occurred: |
| 1. | Where the affairs of dispositions on defaults are finished, the date on which the said affairs are finished and other necessary matters; |
| 2. | Where he/she is requested a notice on the progress status from the Financial Services Commission, the said progress status. |
[This Article Wholly Amended by Presidential Decree No. 22493, Nov. 15, 2010]
| Article 27 (Interest Rates on Additional Amount on Refund) |
"Interest rate on the additional amount prescribed by Presidential Decree" in Article 65-10 (2) of the Act means the interest rate determined and publicly notified by the Financial Services Commission, in consideration of interest rates on time deposits with one-year maturity, sold by banks. [This Article Newly Inserted by Presidential Decree No. 22493, Nov. 15, 2010]
| Article 28 (Disposition on Deficits) |
[This Article Newly Inserted by Presidential Decree No. 22493, Nov. 15, 2010]
| Article 29 (Processing Sensitive Information and Personally Identifiable Information) |
| (1) | If it is essential for performing any of the following administrative affairs, the Financial Services Commission (including persons who are entrusted with the authority of the Financial Services Commission under Article 26-2 (1) and attached Table 3) or the Governor of the Financial Supervisory Service may process information constituting criminal records provided for in subparagraph 2 of Article 18 of the Enforcement Decree of the Personal Information Protection Act and data containing a resident registration number or an alien registration number provided in subparagraph 1 or 4 of Article 19 of the Enforcement Decree of the said Act: <Amended by Presidential Decree No. 25532, Aug. 6, 2014; Presidential Decree No. 26600, Oct. 23, 2015; Presidential Decree No. 27414, Jul. 28, 2016> |
| 5. | Deleted; <by Presidential Decree No. 25176, Feb. 11, 2014> |
| 10. | Examination, etc. of qualifications of stockholders, etc. holding stocks in excess of limit under Article 16-4 of the Act; |
| 12. | and 13. Deleted; <by Presidential Decree No. 27414, Jul. 28, 2016> |
| 31. | Request, etc. for the submission of data under Article 4. |
| 3-2. | Affairs concerning registration and cancellation of debentures, etc., issuance and recovery of a registration certificate, and preparation, keeping, and management of a registry provided in Article 33-5 of the Act and Articles 19-3 through 19-8 of this Decree; |
| 4. | Affairs concerning observance of the standards for management instruction to ensure the soundness in management under Article 34 (2) 4 of the Act and Article 20 (1) 5 of this Decree; |
[This Article Newly Inserted by Presidential Decree No. 23488, Jan. 6, 2012]
| Article 30 (Re-examination of Regulation) |
The Financial Services Commission shall examine the appropriateness of the following matters every three years counting from each base date specified in the following subparagraphs (referring to the period that ends on the day before the base date of every third year) and shall take measures, such as improvement: <Amended by Presidential Decree No. 26817, Dec. 30, 2015; Presidential Decree No. 27290, Jun. 28, 2016>
| 1. | The scope of concurrent business affairs under Article 18-2: January 1, 2016; |
| 2. | The scope of persons sharing credit risks under Article 20-4: January 1, 2014; |
| 3. | The limits on investment in securities by banks, the scope of real estate for business purposes, etc. under Article 21-2: January 1, 2014. |
[This Article Newly Inserted by Presidential Decree No. 25050, Dec. 30, 2013]
| Article 31 (Criteria for Imposition of Administrative Fines) |
The criteria for the imposition of administrative fines under Article 69 (1) through (4) of the Act are as prescribed in attached Table 4. <Amended by Presidential Decree No. 27290, Jun. 28, 2016> [This Article Newly Inserted by Presidential Decree No. 25176, Feb. 11, 2014]
ADDENDA
Article 1 (Enforcement Date)
This Decree shall enter into force on April 1, 1998: Provided, That the amendments to Articles 3, 5 through 11, 14 through 18, and 20 shall enter into force on the date of its promulgation. Article 2 (General Transitional Measures)
| (1) | Any authorization, approval, decisions, orders, dispositions or other acts by the Monetary Board Operational Committee or the Superintendent of the Banking Supervisory Authority under the previous provisions prior to the enforcement of this Decree shall be deemed the acts by the Financial Supervisory Commission or the Financial Supervisory Service Governor under this Decree. |
| (2) | Any declaration, reports or other acts to the Monetary Board Operational Committee or the Superintendent of the Banking Supervisory Authority under the previous provisions prior to the enforcement of this Decree shall be deemed the acts to the Financial Supervisory Commission or the Financial Supervisory Service Governor under this Decree. |
| (3) | The authorities of the Financial Supervisory Commission and the Financial Supervisory Service Governor related to the enforcement of this Decree shall be exercised by the Superintendent of the Banking Supervisory Authority from the date of its promulgation to March 31, 1998. |
Article 3 (Transitional Measures concerning Recognition of Exception to Restriction on Stockholding of Financial Institutions)
| (1) | Any association under liquidation as at the time of the enforcement of this Decree which corresponds to previous Article 4 (3) 2 shall, notwithstanding the amendments to Article 7 (1), be deemed to meet the requirements under the said paragraph not later than the completion of its liquidation. |
| (2) | Where any financial institution acquires stocks of other financial institutions due to a liquidation corresponding to previous Article 4 (3) 2, it may acquire the stocks of other financial institutions even if it fails to meet the requirements under Article 22. In this case, it shall dispose of the relevant stocks within one year from the acquisition date. |
Article 4 (Transitional Measures concerning Qualification Requirements for Executive Officers)
| (1) | The qualification requirements for executive officers of financial institutions in office as at the time of the enforcement of the Enforcement Decree of the Banking Act (Presidential Decree No. 15268), shall be governed by the previous provisions (referring to the provisions before they are amended pursuant to the Amendment to the Decree) not later than the expiration of their terms of office. |
| (2) | The qualification requirements for foreign executive officers of financial institutions other than those pursuant to the amendments to Article 12 as at the time of the enforcement of the Enforcement Decree of the Banking Act (Presidential Decree No. 15268), shall be governed by the previous provisions not later than the expiration of their terms of office. |
| (3) | The qualification requirements for executive officers of financial institutions in office as at the time of the enforcement of this Decree shall, notwithstanding the amendments to Article 13, be governed by the previous provisions not later than the expiration of their terms of office. |
Article 5 (Transitional Measures concerning Stockholding by Same Person)
Where the same person comes to hold or actually control stocks in excess of the ceiling under the amendments to Article 17-3 (1) of the Banking Act (Act No. 5253), due to the amendments to subparagraphs 2 and 6 of Article 3-2 of the Enforcement Decree of the Banking Act (Presidential Decree No. 15268), he shall ensure that it conforms to the provisions of Article 15 of the Act not later than February 4, 2000. In this case, the scope of exercising voting rights of the relevant stocks shall be restricted to the limit allowed pursuant to Article 15 of the Act. Article 6 (Transitional Measures concerning Joint Financial Institutions)
Persons deemed to be the joint financial institutions pursuant to Article 5 of the Addenda to the Enforcement Decree of the Banking Act (Presidential Decree No. 15268), shall be deemed the joint financial institutions under the amendment to Article 6 (1). Article 7 (Transitional Measures concerning Loans, etc. in Excess of Ceiling)
| (1) | Any financial institution which has provided the loans or payment guarantees in excess of the ceiling under Article 7 (2) and (3) of the relevant Amended Decree as at the time of the enforcement of the Enforcement Decree of the Banking Act (Presidential Decree No. 14634), shall ensure to conform to the said amended provisions not later than April 28, 1998: Provided, That this shall not apply to the case where it has obtained approval from the Financial Supervisory Service Governor. |
| (2) | Any financial institution falling under Article 5 of the Addenda to the Banking Act (Act No. 5253), which has provided the loans or payment guarantees in excess of the ceiling under the amendments to Article 10 (2) and (3) as at the time of the enforcement of this Decree shall ensure to conform to the amendments within three years from the date of the enforcement of this Decree: Provided, That this shall not apply to the case where it has obtained approval from the Financial Supervisory Service Governor. |
ADDENDA <Presidential Decree No. 15761, Apr. 1, 1998>
| (1) | (Enforcement Date) This Decree shall enter into force on the date of its promulgation. |
ADDENDUM <Presidential Decree No. 15949, Dec. 29, 1998>
This Decree shall enter into force on the date of its promulgation.
ADDENDA <Presidential Decree No. 16304, May 12, 1999>
| (1) | (Enforcement Date) This Decree shall enter into force on the date of its promulgation: Provided, That the amendments to Articles 10 (1) and (4), 11, and 20 through 20-4 (in case where the application of the proviso of Article 35 (4) of the Act is intended, the amendments to Article 20-3 shall be excluded) shall enter into force on January 1, 2000. |
| (2) | (Transitional Measures concerning Eligibility Criteria of Non-standing Directors) As at the time this Decree enters into force, with respect to the eligibility criteria of incumbent non-standing directors of financial institutions, previous provisions shall apply until the date of expiration of their tenure, notwithstanding the amendments to Article 16 (3). |
| (3) | (Transitional Measures concerning Limit on Issuance of Corporate Bonds, etc.) With regard to the financial institutions which are not in compliance with the issue ceiling on financial bonds under the amendments to Article 19 (1), the limit on investment to a subsidiary under the amendments to Article 21 (1), the limit on securities investment under the amendments to Article 21-2, as at the time this Decree enters into force, the financial institutions shall make their practices in compliance with the limit under the amendments within a year from the date of enforcement of this Decree: Provided, That this shall not apply to cases where the financial institutions have been granted approval by the Governor of the Financial Supervisory Service. |
ADDENDA <Presidential Decree No. 16308, May 13, 1999>
Article 1 (Enforcement Date)
This Decree shall enter into force on the date of its promulgation.
Articles 2 through 10 Omitted.
ADDENDUM <Presidential Decree No. 16844, Jun. 23, 2000>
This Decree shall enter into force on the date of its promulgation.
ADDENDUM <Presidential Decree No. 17231, Jun. 8, 2001>
This Decree shall enter into force on the date of its promulgation.
ADDENDUM <Presidential Decree No. 17717, Aug. 21, 2002>
This Decree shall enter into force on the date of its promulgation.
ADDENDA <Presidential Decree No. 17791, Dec. 5, 2002>
Article 1 (Enforcement Date)
This Decree shall enter into force on the date of its promulgation.
Articles 2 and 3 Omitted.
ADDENDA <Presidential Decree No. 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. 18325, Mar. 22, 2004>
Article 1 (Enforcement Date)
| (1) | This Decree shall enter into force on the date of its promulgation. (Proviso Omitted.) |
Articles 2 through 13 Omitted.
ADDENDA <Presidential Decree No. 18596, Dec. 3, 2004>
Article 1 (Enforcement Date)
This Decree shall enter into force on December 6, 2004.
Articles 2 through 5 Omitted.
ADDENDA <Presidential Decree No. 18736, Mar. 8, 2005>
Article 1 (Enforcement Date)
This Decree shall enter into force on the date of its promulgation.
Articles 2 through 5 Omitted.
ADDENDA <Presidential Decree No. 18832, May 26, 2005>
Article 1 (Enforcement Date)
This Decree shall enter into force on the date of its promulgation.
Article 2 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. 20331, Oct. 23, 2007>
Article 1 (Enforcement Date)
This Decree shall enter into force on October 28, 2007. (Proviso Omitted.)
Articles 2 and 3 Omitted.
ADDENDA <Presidential Decree No. 20653, Feb. 29, 2008>
Article 1 (Enforcement Date)
This Decree shall enter into force on date of its promulgation. (Proviso Omitted.)
Article 2 Omitted.
ADDENDA <Presidential Decree No. 20947, Jul. 29, 2008>
Article 1 (Enforcement Date)
This Decree shall enter into force on February 4, 2008. (Proviso Omitted.)
Articles 2 through 28 Omitted.
ADDENDUM <Presidential Decree No. 21154, Dec. 3, 2008>
This Decree shall enter into force on the date of its promulgation.
ADDENDA <Presidential Decree No. 21518, May 29, 2009>
Article 1 (Enforcement Date)
This Decree shall enter into force on June 1, 2009.
Articles 2 and 3 Omitted.
ADDENDA <Presidential Decree No. 21765, Oct. 1, 2009>
Article 1 (Enforcement Date)
This Decree shall enter into force on the date of its promulgation.
Articles 2 through 5 Omitted.
ADDENDA <Presidential Decree No. 21775, Oct. 9, 2009>
Article 1 (Enforcement Date)
This Decree shall enter into force on October 10, 2009.
Article 2 (Applicability)
The amended provisions of Article 4-2 (3) and (4) shall apply, beginning with the first case that falls under reasons for reporting after this Decree enters into force. Article 3 Omitted.
ADDENDA <Presidential Decree No. 22151, May 4, 2010>
Article 1 (Enforcement Date)
This Decree shall enter into force on May 5, 2010.
Articles 2 through 4 Omitted.
ADDENDA <Presidential Decree No. 22493, Nov. 15, 2010>
Article 1 (Enforcement Date)
This Decree shall enter into force on November 18, 2010.
Article 2 (Applicability to Compliance Officer's Prior Checking on Advertisements)
The amended provisions of Article 24-5 (1) 4 shall apply, beginning with the first advertisement of a bank product to be placed after this Decree enters into force. Article 3 (Transitional Measures concerning Restrictions on Use of Trade Name in Foreign Languages)
A person using a trade name in violation of Article 3-4 as at the time this Decree enters into force may use it until the time six months lapse from the date this Decree enters into force. Article 4 Omitted.
Article 5 (Relationship to other Statutes)
A citation of any provisions of the previous Enforcement Decree of the Banking Act by any other statute as at the time this Decree enters into force shall be deemed a citation of the provisions of this Decree in lieu of the previous provisions, if such corresponding provisions exists herein.
ADDENDA <Presidential Decree No. 22577, Dec. 30, 2010>
Article 1 (Enforcement Date)
This Decree shall enter into force on January 1, 2011.
Articles 2 through 21 Omitted.
ADDENDA <Presidential Decree No. 23427, Dec. 28, 2011>
Article 1 (Enforcement Date)
This Decree shall enter into force on the date of its promulgation: Provided, That the amended provision of Article 1-2 shall enter into force on January 1, 2013. Article 2 (Applicability to Persons Subject to Qualification Requirements for Executive Officers)
The amended provisions of Article 12 shall apply beginning with a person who is first appointed on or after this Decree enters into force.
ADDENDA <Presidential Decree No. 23488, Jan. 6, 2012>
Article 1 (Enforcement Date)
This Decree shall enter into force on the date of its promulgation. (Proviso Omitted.)
Article 2 Omitted.
ADDENDA <Presidential Decree No. 23644, Feb. 29, 2012>
Article 1 (Enforcement Date)
This Decree shall enter into force on the date of its promulgation. (Proviso Omitted.)
Articles 2 through 4 Omitted.
ADDENDUM <Presidential Decree No. 24658, Jul. 8, 2013>
This Decree shall enter into force on the date of its promulgation.
ADDENDA <Presidential Decree No. 24697, Aug. 27, 2013>
Article 1 (Enforcement Date)
This Decree shall enter into force on August 29, 2013. (Proviso Omitted.)
Articles 2 through 13 Omitted.
ADDENDUM <Presidential Decree No. 24722, Sep. 9, 2013>
This Decree shall enter into force on the date of its promulgation.
ADDENDUM <Presidential Decree No. 25050, Dec. 30, 2013>
This Decree shall enter into force on January 1, 2014. (Proviso Omitted.)
ADDENDUM <Presidential Decree No. 25176, Feb. 11, 2014>
This Decree shall enter into force on February 14, 2014: Provided, That the amended provisions of subparagraph 2 of Article 3-3 and Articles 18 (1) 2 and 18-2 (4) 8 and 9 shall enter into force on the date of its promulgation, while the amended provisions of Article 24-4 (1) shall enter into force on March 1, 2014.
ADDENDA <Presidential Decree No. 25279, Mar. 24, 2014>
Article 1 (Enforcement Date)
This Decree shall enter into force on the date of its promulgation.
Articles 2 and 3 Omitted.
ADDENDUM <Presidential Decree No. 25532, Aug. 6, 2014>
This Decree shall enter into force on August 7, 2014.
ADDENDA <Presidential Decree No. 25840, Dec. 9, 2014>
Article 1 (Enforcement Date)
This Decree shall enter into force on January 1, 2015.
Articles 2 through 16 Omitted.
ADDENDA <Presidential Decree No. 25945, Dec. 30, 2014>
Article 1 (Enforcement Date)
This Decree shall enter into force on the date on which the consolidation is registered under Article 4 (6) of the Addenda to the Korea Development Bank Act (Act No. 12663). Articles 2 through 5 Omitted.
ADDENDA <Presidential Decree No. 26205, Apr. 20, 2015>
Article 1 (Enforcement Date)
This Decree shall enter into force on April 29, 2015.
Articles 2 and 3 Omitted.
ADDENDA <Presidential Decree No. 26600, Oct. 23, 2015>
Article 1 (Enforcement Date)
This Decree shall enter into force on October 25, 2015. (Proviso Omitted.)
Articles 2 through 9 Omitted.
ADDENDUM <Presidential Decree No. 26817, Dec. 30, 2015>
This Decree shall enter into force on the date of its promulgation.
ADDENDA <Presidential Decree No. 27205, May 31, 2016>
Article 1 (Enforcement Date)
This Decree shall enter into force on September 30, 2016. (Proviso Omitted.)
Articles 2 and 3 Omitted.
ADDENDA <Presidential Decree No. 27290, Jun. 28, 2016>
Article 1 (Enforcement Date)
This Decree shall enter into force on July 30, 2016: Provided, That the amended provisions of Articles 21 (1), 24-6 through 24-9, and 31, and item (z) of subparagraph 2 of attached Table 4 shall enter into force on June 30, 2016, and the amended provision of item (f) of subparagraph 1 of Article 26 shall enter into force on December 1, 2016. Article 2 Omitted.
ADDENDA <Presidential Decree No. 27414, Jul. 28, 2016>
Article 1 (Enforcement Date)
This Decree shall enter into force on August 1, 2016. (Proviso Omitted.)
Articles 2 through 4 Omitted.
ADDENDA <Presidential Decree No. 28382, Oct. 17, 2017>
Article 1 (Enforcement Date)
This Decree shall enter into force on October 19, 2017: Provided, That the amended provisions of Article 1-5 (1) 1 and Article 3 of the Addenda shall enter into force on the date of its promulgation. Article 2 (Applicability to Criteria for Imposition of Penalty Surcharges)
The amended provisions of Article 26-3 (1) and attached Table 3-2 shall apply beginning with any violations committed after this Decree enters into force. Article 3 Omitted.
ADDENDUM <Presidential Decree No. 28927, May 29, 2018>
This Decree shall enter into force on the date of its promulgation.
ADDENDA <Presidential Decree No. 29269, Oct. 30, 2018>
Article 1 (Enforcement Date)
This Decree shall enter into force on November 1, 2018.
Articles 2 through 11 Omitted.
ADDENDUM <Presidential Decree No. 29854, Jun. 11, 2019>
This Decree shall enter into force on June 12, 2019.
ADDENDA <Presidential Decree No. 29892, Jun. 25, 2019>
Article 1 (Enforcement Date)
This Decree shall enter into force on September 16, 2019. (Proviso Omitted.)
Articles 2 through 10 Omitted.