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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

Act No. 17084, Mar. 24, 2020

Act No. 17256, May 19, 2020

Act No. 18373, Aug. 10, 2021

Act No. 18464, Sep. 24, 2021

 Article 1 (Purpose)
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 on Jun. 7, 2011]
 Article 1-2 (Definitions)
The term "private school institutions" in this Act means any of the following schools, juristic persons or lifelong educational institutions: <Amended on Mar. 23, 2013>
1. Private schools referred to in Article 2 of the Private School Act, and school foundations establishing and operating them;
2. Distance learning college-type lifelong educational establishments authorized by the Minister of Education under Article 33 (3) of the Lifelong Education Act, and juristic persons establishing and operating them.
3. School-type lifelong educational establishments established and operated by juristic persons under Article 31 of Lifelong Education Act, and juristic persons establishing and operating them.
[This Article Wholly Amended on 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 on 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 on Jun. 7, 2011]
 Article 4 (Articles of Incorporation)
(1) The articles of incorporation of the Foundation shall include the following matters:
1. Objectives;
2. Title;
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 public announcement.
(2) When the Foundation modifies its articles of incorporation, it shall obtain authorization from the Minister of Education. <Amended on Mar. 23, 2013>
[This Article Wholly Amended on 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 on Jun. 7, 2011]
 Article 6 (Business)
(1) The Foundation shall perform the following business to support private school institutions: <Amended on Mar. 23, 2013; Feb. 3, 2016; Mar. 24, 2020>
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;
3-2. Business for administrative and financial support to promote the procedures for the efficient liquidation of school foundations dissolved pursuant to Article 34 (2) or 47 of the Private School Act;
3-3. Business for transferring and managing records of dissolved school foundations and discontinued or closed schools under Article 48-2 of the Private School Act;
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 on 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 on 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 on 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 on 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 on Jun. 7, 2011>
(2) Deleted. <Jan. 21, 1999>
(3) The auditors shall audit the accounts and affairs of the Foundation. <Amended on Jun. 7, 2011>
[Title Amended on Jul. 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;
2. Anyone who falls under the grounds for disqualification provided in each subparagraph of Article 33 of the State Public Officials Act.
[This Article Wholly Amended on 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 on 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 on 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 on Jun. 7, 2011]
 Article 14 (Legal Fiction 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 on 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 on Jun. 7, 2011]
 Article 16 (Lending or Use of or Profiting from State or Public Property)
(1) Where necessary to establish and operate the Foundation and to perform its duties, the State and local governments may lend the State or public property gratuitously to the Foundation or permit the Foundation to use or profit from it, notwithstanding the State Property Act and the Public Property and Commodity Management Act. <Amended on May 19, 2020>
(2) Where necessary for the Foundation (including a special-purpose corporation established by the Foundation) to perform business under subparagraph 1 of Article 19-2, the State or local governments may lend the State or public property gratuitously to the Foundation or permit the Foundation to use or profit from it by means of private contracts, notwithstanding the State Property Act and the Public Property and Commodity Management Act. In such cases, the period of lending and permission for use or profiting may be up to 30 years. <Newly Inserted on May 19, 2020>
(3) The period of lending and permission for use or profiting under paragraph (2) may be renewed only once within the scope of such period. <Newly Inserted on May 19, 2020>
(4) Matters necessary for the details of and conditions, procedures, etc. for lending, use, or profiting under paragraphs (1) and (2) shall be prescribed by Presidential Decree. <Newly Inserted on May 19, 2020>
[This Article Wholly Amended on May 29, 2016]
[Title Amended on May 19, 2020]
 Article 17 (Establishment of Private Schools Promotion Fund)
(1) A Private School Promotion Fund (hereinafter referred to as the "Fund") shall be established in the Foundation in order to appropriate funds necessary for performing the business of the Foundation. <Amended on Aug. 10, 2021>
(2) The Fund shall be divided into the private school support account and the liquidation support account. <Newly Inserted on Aug. 10, 2021>
[This Article Wholly Amended on Jun. 7, 2011]
 Article 18 (Creation of Fund)
(1) The private school support account shall consist of the following financial resources: <Amended on Aug. 10, 2021>
1. Contributions from the Government;
2. Money transferred from other Funds;
3. Borrowed funds under Article 26;
4. Donations from corporations, organizations, or individuals;
5. Funds raised by issuing bonds under Article 27;
6. Funds and proceeds obtained from the operation of the Fund.
(2) The liquidation support account shall consist of the following financial resources: <Newly Inserted on Aug. 10, 2021>
1. Contributions from the Government;
2. Residual property under Article 35 (4) of the Private School Act;
3. Money transferred from other Funds;
4. Borrowed funds under Article 26;
5. Donations from corporations, organizations, or individuals;
6. Funds and proceeds obtained from the operation of the Fund.
(3) The Government shall appropriate the contributions under paragraphs (1) 1 and (2) 1 for the budget every year starting March 31, 1989. <Amended on Aug. 10, 2021>
[This Article Wholly Amended on Jun. 7, 2011]
 Article 19 (Use of Fund)
(1) The Fund shall be used for the following projects: <Amended on May 29, 2016; Mar. 24, 2020; Aug. 10, 2021>
1. Providing loans necessary for improving, repairing, , and expanding the properties (limited to lands and buildings) and educational facilities of private school institutions;
2. Providing loans, other than those under subparagraph 1, necessary for improving the educational environment and educational programs of private school institutions;
3. Projects necessary for improving the structure of private school institutions;
3-2; Deleted; <Aug. 10, 2021>
4. Projects implemented by applying the methods under Article 4 of the Act on Public-Private Partnerships in Infrastructure mutatis mutandis, which are necessary for expanding the properties under subparagraph 1;
4-2. Projects jointly implemented by the State or a local government and public institutions, which are designed to establish and operate dormitories for the students of private school institutions;
5. Disbursement of the expenses necessary for creating, operating, and managing the Fund;
6. Other projects necessary for improving the educational environment and management of private school institutions.
(2) The liquidation support account shall be used for providing loans necessary for liquidating a school foundation eligible for support under Article 6 (1) 3-2. <Newly Inserted on Aug. 10, 2021>
[This Article Wholly Amended on 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:
1. Business jointly promoted with the State or a local government, or public institution by applying the methods provided in Article 4 of the Act on Public-Private Partnerships in Infrastructure, which is to establish and operate dormitories for students of a school under Article 2 of the Higher Education Act;
2. Business entrusted by the Minister of Education;
[This Article Newly Inserted on 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 on May 29, 2016]
 Article 19-4 Deleted. <Aug. 10, 2021>
 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 on Jun. 7, 2011]
 Article 21 (Financing of Funds)
(1) Where funds are financed under each subparagraph of Article 19 (1), it may be done without any security. <Amended on Aug. 10, 2021>
(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 on Jun. 7, 2011]
 Article 22 (Fiscal Year)
The fiscal year of the Foundation shall be the same as that of the Government.
[This Article Wholly Amended on Jun. 7, 2011]
 Article 23 (Submission of Business Plans)
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 on Mar. 23, 2013>
[This Article Wholly Amended on Jun. 7, 2011]
 Article 24 (Report on Balancing Accounts)
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 on Mar. 23, 2013>
[This Article Wholly Amended on 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 on Jun. 7, 2011]
 Article 26 (Borrowings)
(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 on Mar. 23. 2013>
[This Article Wholly Amended on 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 on Jun. 7, 2011>
(2) Deleted. <Jan. 21, 1999>
(3) The Government may guarantee the redemption of principal and interest of the bonds issued by the Foundation. <Amended on 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 on Jun. 7, 2011; Mar. 23, 2013>
[Title Amended on Jun. 7, 2011]
 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 on Jun. 7, 2011]
 Article 29 (Contributions)
(1) The Government may provide the Foundation with contributions to meet expenses incurred in funding facilities of the Foundation, operating, and running the business of, the Foundation, within the budget.
(2) Matters necessary for the payment, use, and management of contributions under paragraph (1) shall be prescribed by Presidential Decree.
[This Article Wholly Amended on Sep. 24, 2021]
 Article 30 (Supervision)
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 on Mar. 23, 2013>
[This Article Wholly Amended on 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 on 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 on Dec. 18, 2018>
(2) The administrative fines referred to in paragraph (1) shall be imposed and collected by the Minister of Education. <Amended on Mar. 23, 2013>
[This Article Wholly Amended on Jun. 7, 2011]
ADDENDA <Act No. 4103, Mar. 31, 1989>
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.
(2) Omitted.
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.
ADDENDUM <Act No. 17084, Mar. 24, 2020>
This Act shall enter into force six months after the date of its promulgation.
ADDENDA <Act No. 17256, May 19, 2020>
Article 1 (Enforcement Date)
This Act shall enter into force three months after the date of its promulgation.
Article 2 (Applicability to Lending of State or Public Property)
The amended provisions of Article 16 shall also apply to the State or public property which has been lent gratuitously to or for which permission for use or profiting has been granted to the Korea Foundation for the Promotion of Private School (including a special-purpose corporation established by the Foundation) to perform business under subparagraph 1 of Article 19-2 before this Act enters into force.
ADDENDA <Act No. 18373, Aug. 10, 2021>
Article 1 (Enforcement Date)
This Act shall enter into force on January 1, 2022.
Article 2 (Transitional Measures concerning Private Schools Promotion Fund)
Assets, claim and obligation, and other rights and liabilities belonging to the Fund as at the time this Act enters into force shall be succeeded to the private school support account under the amended provisions of Article 17 (2).
ADDENDUM <Act No. 18464, Sep. 24, 2021>
This Act shall enter into force six months after the date of its promulgation.