KOREA ADVANCING SCHOOLS FOUNDATION ACT
Act No. 4103, Mar. 31, 1989
Amended by Act No. 4268, Dec. 27, 1990
Act No. 5067, Dec. 29, 1995
Act No. 5652, Jan. 21, 1999
Act No. 6400, Jan. 29, 2001
Act No. 7890, Mar. 24, 2006
Act No. 8852, Feb. 29, 2008
Act No. 13950, Feb. 3, 2016
Act No. 14166, May 29, 2016
Act No. 15969, Dec. 18, 2018
The purpose of this Act is to contribute to the promotion of private school education by supporting the improvement of educational environment of private school institutions through the establishment of the Korea Foundation for the Promotion of Private School.
[This Article Wholly Amended by Act No. 10780, Jun. 7, 2011]
| Article 1-2 (Definitions) |
As used in this Act, the term "private school institutions" means any of the following schools, juristic persons or lifelong educational institutions: <Amended by Act No. 11690, Mar. 23, 2013>
[This Article Wholly Amended by Act No. 10780, Jun. 7, 2011]
| Article 2 (Juristic Person) |
The Korea Foundation for the Promotion of Private School (hereinafter referred to as the "Foundation") shall be a juristic person.
[This Article Wholly Amended by Act No. 10780, Jun. 7, 2011]
| Article 3 (Establishment) |
The Foundation shall be established through its registration of incorporation at the seat of its principal office.
[This Article Wholly Amended by Act No. 10780, Jun. 7, 2011]
| Article 4 (Articles of Incorporation) |
| (1) | The articles of incorporation of the Foundation shall include the following matters: |
| 3. | Location of its principal office; |
| 4. | Matters concerning its business; |
| 5. | Matters concerning its board of directors; |
| 6. | Matters concerning its executive officers and employees; |
| 7. | Matters concerning its organization; |
| 8. | Matters concerning its funds; |
| 9. | Matters concerning its assets and accounts; |
| 10. | Matters concerning the modification of the articles of incorporation; |
| 11. | Matters concerning the public notice. |
| (2) | When the Foundation modifies its articles of incorporation, it shall obtain authorization from the Minister of Education. <Amended by Act No. 11690, Mar. 23, 2013> |
[This Article Wholly Amended by Act No. 10780, Jun. 7, 2011]
| Article 5 (Prohibition of Use of Similar Title) |
No person other than the Foundation may use the title "Korea Foundation for the Promotion of Private School" or similar one.
[This Article Wholly Amended by Act No. 10780, Jun. 7, 2011]
| (1) | The Foundation shall perform the following business to support private school institutions: <Amended by Act No. 11690, Mar. 23, 2013; Act No. 13950, Feb. 3, 2016> |
| 1. | Creation, operation and management of funds; |
| 2. | Training, examination and research to improve the management of private school institutions; |
| 2-2. | Support for business consulting and counseling to run private school; |
| 3. | Management and disposal of property of the private school institutions of which management and disposal is entrusted; |
| 4. | Business entrusted by the Minister of Education; |
| 5. | Business that may be executed by the Foundation under the provisions of other Acts; |
| 6. | Other business necessary for the promotion and management improvement of private schools. |
| (2) | Matters necessary for the operation of business referred to in paragraph (1) shall be determined by the Presidential Decree. |
[This Article Wholly Amended by Act No. 10780, Jun. 7, 2011]
| Article 7 (Executive Officers) |
| (1) | The Foundation shall have not less than 7 but not more than 9 directors including the chief director, and not more than two auditors. |
| (2) | The directors (excluding the chief director) and auditors under paragraph (1) shall be nominated by the board of directors and appointed by the Minister of Education. The chief director shall be nominated by a recommendation committee for chief directors and, after deliberation and resolution on such nomination by the board of directors, appointed by the Minister of Education. <Amended by Act No. 11690, Mar. 23, 2013> |
| (3) | At least two executive officers of school foundations shall be included among the directors referred to in paragraph (1). |
| (4) | Article 29 of the Act on the Management of Public Institutions shall apply mutatis mutandis to the composition of the recommendation committee for chief directors referred to in paragraph (2), and other matters necessary for the operation of such committee shall be determined by the articles of incorporation. |
[This Article Wholly Amended by Act No. 10780, Jun. 7, 2011]
| Article 8 (Term of Office for Executive Officers) |
| (1) | The term of office for the executive officers of the Foundation shall be three years and they may be reappointed. |
| (2) | The executive officers except the chief director shall be non-standing. |
[This Article Wholly Amended by Act No. 10780, Jun. 7, 2011]
| Article 9 (Duties of Executive Officers) |
| (1) | The chief director shall represent the Foundation and have general supervision and control of its affairs. <Amended by Act No. 10780, Jun. 7, 2011> |
| (2) | Deleted. <by Act No. 5652, Jan. 21, 1999> |
| (3) | The auditors shall audit the accounts and affairs of the Foundation. <Amended by Act No. 10780, Jun. 7, 2011> |
| Article 10 (Grounds for Disqualification) |
Any of the following persons shall not be eligible for an executive officer of the Foundation:
| 1. | Anyone who is not a citizen of the Republic of Korea; |
[This Article Wholly Amended by Act No. 10780, Jun. 7, 2011]
| Article 11 (Board of Directors) |
| (1) | The board of directors shall be established in the Foundation in order to deliberate and determine the important matters regarding the duties of the Foundation. |
| (2) | The board of directors shall be composed of the chief director and directors. |
| (3) | The chief director shall convene and preside over meetings of the board of directors. |
| (4) | The board of directors shall make a decision with the concurring vote of a majority of the enrolled directors, unless there is a special provision in the articles of incorporation. |
| (5) | The auditors may attend meetings of the board of directors and may state their opinions. |
[This Article Wholly Amended by Act No. 10780, Jun. 7, 2011]
| Article 12 (Restrictions on Remuneration for Non-Standing Executive Officers) |
No remuneration shall be paid to non-standing executive officers and auditors: Provided, That actual expenses may be paid to them.
[This Article Wholly Amended by Act No. 10780, Jun. 7, 2011]
| Article 13 (Appointment and Dismissal of Employees) |
The chief director shall appoint and dismiss employees of the Foundation in accordance with its articles of incorporation.
[This Article Wholly Amended by Act No. 10780, Jun. 7, 2011]
| Article 14 (Legal Fiction of Executive Officers and Employees as Public Officials in Application of Penalty Provisions) |
Executive officers and employees of the Foundation shall be regarded as public officials in applying the penalty provisions of the Criminal Act and other Acts. [This Article Wholly Amended by Act No. 10780, Jun. 7, 2011]
| Article 15 (Prohibition of Concurrent Offices of Executive Officers and Employees) |
The chief director and employees shall not concurrently serve as the directors or employees of private school institutions and shall not be engaged in any for-profit business other than their duties.
[This Article Wholly Amended by Act No. 10780, Jun. 7, 2011]
| Article 16 (Free Loan of State or Public Property) |
[This Article Wholly Amended by Act No. 14166, May 29, 2016]
| Article 17 (Establishment of Private Schools Promotion Fund) |
A Private School Promotion Fund (hereinafter referred to as the "Fund") shall be established in the Foundation in order to appropriate funds needed for establishment and operation of the Foundation.
[This Article Wholly Amended by Act No. 10780, Jun. 7, 2011]
| Article 18 (Raising of Fund) |
| (1) | The Fund shall consist of the following financial resources: |
| 1. | Contributions by the Government; |
| 2. | Transfers from other Funds; |
| 4. | Donations by juristic persons, groups or individuals; |
| 5. | Funds raised by issuing bonds under Article 27; |
| 6. | Funds and proceeds obtained from the operation of the Fund. |
| (2) | The Government shall appropriate a fixed amount of money in the budget every year with the contributions referred to in paragraph (1) 1, starting from March 31, 1989. |
[This Article Wholly Amended by Act No. 10780, Jun. 7, 2011]
The Fund shall be used for the following business: <Amended by Act No. 14166, May 29, 2016>
| 1. | Financing funds needed for the improvement, repair and expansion of educational facilities of private school institutions; |
| 2. | Financing funds, other than those referred to in subparagraph 1, necessary for the improvement of the educational environment and educational programs of private school institutions; |
| 3. | Business necessary for the improvement of the structure of private school institutions; |
| 4-2. | Business jointly promoted with the State or a local government, or public institutions, which is designed to establish and operate dormitories for the students of private school institutions; |
| 5. | Disbursement of the expenses necessary for the creation, operation and management of the Fund; |
| 6. | Other business necessary for the improvement of educational environment and management of private school institutions. |
[This Article Wholly Amended by Act No. 10780, Jun. 7, 2011]
| Article 19-2 (Deposit of Fund) |
A manager of other Fund may deposit all or part of the Fund to Private School Promotion Fund in order to use any of the following business:
| 2. | Business entrusted with by the Minister of Education. |
[This Article Newly Inserted by Act No. 14166, May 29, 2016]
| Article 19-3 (Reduction of or Exemption from Electric Utility Charge of Dormitory) |
An operator of the electric sales business under the Electric Utility Act may grant reduction of or exemption from electric utility charge of dormitories under subparagraph 1 of Article 19-2. [This Article Newly Inserted by Act No. 14166, May 29, 2016]
| Article 20 (Operation and Management of Fund) |
| (1) | The Foundation shall operate and manage the Fund. |
| (2) | Matters necessary for the operation and management of the Fund shall be determined by the Presidential Decree. |
[This Article Wholly Amended by Act No. 10780, Jun. 7, 2011]
| Article 21 (Financing of Funds) |
| (1) | Where funds are financed under each subparagraph of Article 19, it may be done without any security. |
| (2) | Matters necessary for the objects, conditions, and methods of financing of funds and redemption shall be determined by the Presidential Decree. |
[This Article Wholly Amended by Act No. 10780, Jun. 7, 2011]
The fiscal year of the Foundation shall be the same as that of the Government.
[This Article Wholly Amended by Act No. 10780, Jun. 7, 2011]
| Article 23 (Submission of Business Plan, etc.) |
The Foundation shall prepare a business plan and budget bill of revenue and expenditure, and shall submit them to the Minister of Education prior to the commencement of each fiscal year. The same shall also apply when it intends to modify them. <Amended by Act No. 11690, Mar. 23, 2013>
[This Article Wholly Amended by Act No. 10780, Jun. 7, 2011]
| Article 24 (Report on Balancing Accounts, etc.) |
The Foundation shall prepare its reports on balancing accounts and business, and shall report them to the Minister of Education along with an auditor's written opinion within two months before the commencement of each fiscal year. <Amended by Act No. 11690, Mar. 23, 2013>
[This Article Wholly Amended by Act No. 10780, Jun. 7, 2011]
| Article 25 (Management of Surplus) |
When surplus is left after settling accounts each fiscal year, the Foundation shall use such surplus to make up its loss and accumulate the remainder, if any, for the Fund.
[This Article Wholly Amended by Act No. 10780, Jun. 7, 2011]
| (1) | The Foundation may have a long-term or short-term borrowing in order to finance the Fund. |
| (2) | The short-term borrowing referred to in paragraph (1) shall be reimbursed within the business year concerned: Provided, That where reimbursement is impossible due to the shortage of funds, the Foundation may re-borrow only the shortfall. |
| (3) | Where the Foundation borrows money under paragraphs (1) and (2), it shall report the matters concerning the borrowing to the Minister of Education. <Amended by Act No. 11690, Mar. 23. 2013> |
[This Article Wholly Amended by Act No. 10780, Jun. 7, 2011]
| Article 27 (Issuance of Bonds of Private School Promotion) |
| (1) | The Foundation may issue the bonds of private school promotion (hereinafter referred to as the "bonds") in order to finance the Fund. <Amended by Act No. 10780, Jun. 7, 2011> |
| (2) | Deleted. <by Act No. 5652, Jan. 21, 1999> |
| (3) | The Government may guarantee the redemption of principal and interest of the bonds issued by the Foundation. <Amended by Act No. 10780, Jun. 7, 2011> |
| (4) | The Foundation shall, when it has issued the bonds referred to in paragraph (1), report to the Minister of Education on the matters determined by the Minister of Education in relation to such issuance. <Amended by Act No. 10780, Jun. 7, 2011; Act No. 11690, Mar. 23, 2013> |
| Article 28 (Compensation for Differences in Interest) |
The difference between the interest paid on borrowings, etc. and the interest income from loans shall be compensated for by the National Treasury.
[This Article Wholly Amended by Act No. 10780, Jun. 7, 2011]
| Article 29 (Charge of Expenses) |
The State may wholly or partly subsidize the expenses incurred in the operation of the Foundation.
[This Article Wholly Amended by Act No. 10780, Jun. 7, 2011]
The Minister of Education shall supervise the affairs of the Foundation and may conduct an inspection of or issue an order to it, if necessary for supervision. <Amended by Act No. 11690, Mar. 23, 2013>
[This Article Wholly Amended by Act No. 10780, Jun. 7, 2011]
| Article 31 (Application Mutatis Mutandis) |
Except as otherwise prescribed in this Act, the provisions of the Civil Act concerning an incorporated foundation shall apply mutatis mutandis to the Foundation. [This Article Wholly Amended by Act No. 10780, Jun. 7, 2011]
| Article 32 (Administrative Fines) |
| (1) | Any person who uses the name "Korea Foundation for the Promotion of Private School" or any similar name in violation of Article 5 shall be punished by an administrative fine not exceeding five million won. <Amended by Act No. 15969, Dec. 18, 2018> |
| (2) | The administrative fines referred to in paragraph (1) shall be imposed and collected by the Minister of Education. <Amended by Act No. 11690, Mar. 23, 2013> |
[This Article Wholly Amended by Act No. 10780, Jun. 7, 2011]
ADDENDA
Article 1 (Enforcement Date)
This Act shall enter into force on the date of its promulgation.
Article 2 (Preparation for Incorporation)
| (1) | The Minister of Education shall commission not more than five incorporators and have them deal with the matters pertaining to the incorporation of the Foundation by not later than three months after this Act enters into force. |
| (2) | The incorporators shall prepare the articles of association and obtain authorization thereof from the Minister of Education. |
| (3) | The incorporators shall, without delay, register the incorporation of the Foundation, when its articles of association is authorized under paragraph (2). |
| (4) | The incorporators shall, without delay, hand over their duties to the chief director of the Foundation, when he/she is appointed. |
| (5) | The incorporators shall be deemed dismissed, when they finish handing over their duties as referred to in paragraph (4). |
Article 3 (Executive Officers at Time of Establishment)
The executive officers at the time of the incorporation of the Foundation shall be appointed by the Minister of Education.
ADDENDA <Act No. 4268, Dec. 27, 1990>
Article 1 (Enforcement Date)
This Act shall enter into force on the date of its promulgation. (Proviso Omitted.)
Articles 2 through 10 Omitted.
ADDENDA <Act No. 5067, Dec. 29, 1995>
| (1) | (Enforcement Date) This Act shall enter into force on the date of its promulgation. |
| (2) | (Transitional Measures) The Private School Promotion Foundation at the time this Act enters into force, shall be considered as the Korea Foundation for the Promotion of Private School as referred to in this Act: Provided, That the Foundation shall amend its articles of association in accordance with the amended provisions of this Act, and obtain authorization thereof from the Minister of Education by not later than three months after this Act enters into force. |
ADDENDUM <Act No. 5652, Jan. 21, 1999>
This Act shall enter into force on the date of its promulgation.
ADDENDA <Act No. 6400, Jan. 29, 2001>
Article 1 (Enforcement Date)
This Act shall enter into force on the date of its promulgation. (Proviso Omitted.)
Articles 2 through 4 Omitted.
ADDENDA <Act No. 7890, Mar. 24, 2006>
| (1) | (Enforcement Date) This Act shall enter into force on the date of its promulgation. |
| (2) | (Transitional Measures regarding Chief Director) The chief director elected under the previous provisions at the time this Act enters into force shall be deemed to have been appointed in accordance with the amended provisions of Article 7 (2). |
ADDENDA <Act No. 8852, Feb. 29, 2008>
Article 1 (Enforcement Date)
This Act shall enter into force on the date of its promulgation. (Proviso Omitted.)
Articles 2 through 7 Omitted.
ADDENDUM <Act No. 10780, Jun. 7, 2011>
This Act shall enter into force on the date of its promulgation.
ADDENDA <Act No. 11690, Mar. 23, 2013>
Article 1 (Enforcement Date)
| (1) | This Act shall enter into force on the date of its promulgation. |
Articles 2 through 7 Omitted.
ADDENDUM <Act No. 13950, Feb. 3, 2016>
This Act shall enter into force on the date of its promulgation.
ADDENDUM <Act No. 14166, May 29, 2016>
This Act shall enter into force on the date of its promulgation.
ADDENDUM <Act No. 15969, Dec. 18, 2018>
This Act shall enter into force six months after the date of its promulgation.