STATE CREDIT MANAGEMENT ACT
Act No. 2250, Dec. 31, 1970
Amended by Act No. 3628, Dec. 31, 1982
Act No. 3947, Nov. 28, 1987
Act No. 4408, Nov. 30, 1991
Act No. 5454, Dec. 13, 1997
Act No. 6627, Jan. 26, 2002
Act No. 6626, Jan. 26, 2002
Act No. 7029, Dec. 31, 2003
Act No. 8050, Oct. 4, 2006
Act No. 8852, Feb. 29, 2008
Act No. 10571, Apr. 8, 2011
Act No. 12029, Aug. 13, 2013
Act No. 16957, Feb. 4, 2020
Act No. 21065, Oct. 1, 2025
CHAPTER I GENERAL PROVISIONS
The purpose of this Act is to ensure the proper management of claims held by the State by prescribing standards for managing agencies, management procedures, modification of the content of claims, release of claims, and other relevant matters.
[This Article Wholly Amended on Apr. 8, 2011]
The terms used in this Act are defined as follows:
| 1. | The term "claims" means the right of the State to receive monetary payments; |
| 2. | The term "head of a central government agency" means the Speaker of the National Assembly, the Chief Justice of the Supreme Court, the President of the Constitutional Court, or any other head of a central government agency established by the Constitution of the Republic of Korea, the Government Organization Act, or other statutes; |
| 3. | The term "claims management affairs" means business affairs related to the preservation and exercise of claims, modification of the content of claims, or extinction of claims held by the State as a creditor, excluding those falling under the following items: |
| b. | Business affairs performed by a person who executes a disposition on delinquency under statutes or regulations; |
| c. | Business affairs related to the receipt of repayment; |
| 4. | The term "claims management officer" means a person who is in charge of the management of claims as prescribed in Article 6(1) through (3). |
[This Article Wholly Amended on Apr. 8, 2011]
| Article 3 (Claims to which this Act does not apply) |
| (1) | This Act shall not apply to any of the following claims; provided, Article 36 and 37 shall apply to the claims prescribed by Presidential Decree: |
| 1. | Claims for fines, minor fines, criminal forfeitures, administrative fines, and other claims equivalent thereto as prescribed by Presidential Decree; |
| 2. | Claims in the form of securities; |
| 3. | Claims related to deposits and entrusted funds of the State; |
| 4. | Claims for the payment of money intended to become deposits in the custody; |
| 5. | Claims related to donations; |
| 6. | Claims related to national taxes, customs duties, and the collection thereof. |
| (2) | Some provisions of this Act need not apply to the following claims, as prescribed by Presidential Decree: |
| 1. | Claims for which a foreign country or an international organization is a debtor; |
| 2. | Claims that are extinguished immediately; |
| 3. | Claims prescribed by Presidential Decree, except as provided in subparagraphs 1 and 2. |
[This Article Wholly Amended on Apr. 8, 2011]
| Article 4 (Relationship to other statues) |
Except as otherwise provided by other statutes, matters concerning the management of claims shall be governed by this Act.
[This Article Wholly Amended on Apr. 8, 2011]
CHAPTER II CLAIMS MANAGEMENT AGENCY
| Article 5 (General supervision and control of claims management affairs) |
| (1) | The Minister of Economy and Finance shall perform the following business affairs for the appropriate management of claims: <Amended on Oct. 1, 2025> |
| 1. | Improvement of the system for claims management; |
| 2. | Establishment of uniform standards for claims management affairs; |
| 3. | Coordination regarding the handling of claims management affairs; |
| 4. | Performance management of claims management affairs. |
| (2) | The head of a central government agency shall manage claims under their jurisdiction and supervise the duties of the claims management officer. |
| (3) | If the Minister of Economy and Finance deems it necessary for the proper management of claims, he or she may require the heads of central government agencies to report on the content and management status of claims under their jurisdiction, cause public officials under his or her control to provide on-site guidance and to conduct inspection, or take other necessary measures. <Amended on Oct. 1, 2025> |
[This Article Wholly Amended on Apr. 8, 2011]
| Article 5-2 (General claims management officer) |
| (1) | The head of a central government agency shall appoint, from among the claims management officers of their agency, a general claims management officer who shall have general supervision and control of claims management affairs (hereinafter referred to as the "general claims management officer"). |
| (2) | The general claims management officer shall, as determined by the head of the central government agency to which they belong, perform the following duties which are under the jurisdiction of the relevant agency: |
| 1. | Preparation of a report on the current amount of claims under Article 36; |
| 2. | Modification of claims management procedures; |
| 3. | Coordination regarding the handling of claims management affairs; |
| 4. | Managing performance of duties regarding claims management affairs (including the formulation of a plan for collection of overdue claims); |
| 5. | Supervision over duties of claims management affairs. |
[This Article Wholly Amended on Apr. 8, 2011]
| Article 6 (Delegation of claims management affairs) |
| (1) | The head of a central government agency may delegate the claims management affairs under their jurisdiction to the public officials who belong to the relevant agency or other central government agencies, or the heads or the public officials of local governments, as prescribed by Presidential Decree. |
| (2) | When a public official to whom the claims management affairs is delegated under paragraph (1) is unable to perform their duties due to any unavoidable reason, the head of a central government agency may designate another public official who shall perform the relevant duties on their behalf, as prescribed by Presidential Decree. |
| (3) | The head of a central government agency may, if necessary, designate public officials to share part of the duties of the public officials who have been delegated claims management affairs under paragraph (1), as prescribed by Presidential Decree. |
| (4) | The delegation of claims management affairs under paragraph (1) may be substituted by the head of a central government agency designating a position established in their affiliated agency, another central government agency, or a local government. |
[This Article Wholly Amended on Apr. 8, 2011]
| Article 7 Deleted. <Dec. 31, 1982> |
| Article 8 (Consultation on delegation of duties) |
When the head of a central government agency intends to delegate claims management affairs under Article 6(1) to another central government agency or to a local government within their jurisdiction, they shall obtain the prior consent of the head of the relevant central government agency or the head of the relevant local government. [This Article Wholly Amended on Apr. 8, 2011]
| Article 9 (Handing over claims management affairs) |
| (1) | If there is a change of the debtor's address, a change in the organizational structure of the relevant central government agency, or any other such reason, the head of a central government agency may have all or part of the claim management affairs transferred to another claims management officer, as prescribed by Presidential Decree. |
| (2) | The head of a central government agency shall, when business affairs under their jurisdiction become business affairs under the jurisdiction of the head of another central government agency, transfer the debt management affairs pertaining to those business affairs to the head of that other central government agency, as prescribed by Presidential Decree. |
[This Article Wholly Amended on Apr. 8, 2011]
| Article 10 (Separation of claim management agencies and collection agencies) |
A claims management officer may not concurrently serve in a cash handling position; provided, this shall not apply to cases prescribed by Presidential Decree.
[This Article Wholly Amended on Apr. 8, 2011]
CHAPTER III STANDING RULES FOR CLAIMS MANAGEMENT
| Article 11 (Standard for management) |
Claims management affairs shall be conducted in accordance with statutes or regulations, as well as the cause and content of each claim, so as to serve the fiscal interests of the State.
[This Article Wholly Amended on Apr. 8, 2011]
| Article 11-2 (Notice of claims incurred) |
A person who has caused a debt to arise or has caused it to be vested in the State through statutes, regulations, contracts, or other acts, or a person who has knowledge of such facts, shall notify the claims management officer without delay that a debt has arisen, in the following cases; provided, in the case of subparagraph 1, when there is a suspensive condition regarding the arising or vesting of the claims, notification shall be made when one becomes aware that the condition has been fulfilled, and when there is an uncertain commencement date, notification shall be made when one becomes aware of the arrival of that deadline.
| 1. | Where they have entered into a contract or committed any other act that gives rise to a claim or causes a claim to be vested in the State; |
| 2. | Where they become aware that a claim for refund has arisen as a result of an encumbrance or a payment-incurring act; |
| 3. | Where they become aware, due to circumstances arising after the conclusion of a contract, that a claim has arisen from the contract or that such claim has been vested in the State; |
| 4. | Where they become aware that a claim has arisen while receiving, disbursing, keeping, or managing cash, commodities, or other State property. |
[This Article Wholly Amended on Apr. 8, 2011]
| Article 12 (Keeping and recording of books) |
The claims management officer shall keep books for recording matters related to the management of claims and shall, without delay, investigate and verify the matters classified under the following subparagraphs and record them in the books; provided, this shall not apply to claims prescribed by Presidential Decree:
| 1. | Where a claim is transferred under Article 9: The particulars of the transfer; |
| 2. | Where a notice of the occurrence of a claim is received under Article 11-2: The particulars of such notice. |
[This Article Wholly Amended on Apr. 8, 2011]
| Article 13 (Payment notices) |
| (1) | In order to exercise claims, a claims management officer shall request a revenue collection officer to give a payment notice to a debtor, as prescribed by Presidential Decree; provided, if the claims management officer concurrently holds the position of a revenue collection officer, or if the claims are not included in revenues and unless otherwise provided in other statutes, the claims management officer himself or herself shall give a payment notice to a debtor. |
| (2) | Upon receiving a request under paragraph (1), the revenue collection officer shall, without delay, give a payment notice to the debtor and notify the relevant claims management officer thereof. |
| (3) | Paragraphs (1) and (2) shall not apply to any of the claims which are subject to payment by self-assessment or to other claims prescribed by Presidential Decrees. |
[This Article Wholly Amended on Apr. 8, 2011]
| (1) | If all or part of a claim is not performed even after the payment deadline notified under Article 13 (referring to the performance deadline in the case of claims for which notification of payment is not required) has passed, the claims management officer shall request the revenue collection officer to issue a demand for performance. In such cases, the demand notice shall be issued within 7 days from the date the payment deadline has passed, and the payment deadline in response to the demand (hereinafter referred to as the "demand deadline") shall be set within 15 days from the date of issuance of the demand notice. |
| (2) | With respect to the demand under paragraph (1), the proviso of Article 13(1) and paragraph (2) of that Article shall apply mutatis mutandis. |
[This Article Wholly Amended on Apr. 8, 2011]
| Article 14-2 (Entrustment of overdue debt collection duties) |
| (1) | The head of a central government agency may, in accordance with the procedures prescribed by Presidential Decree and to the minimum extent necessary for the overdue debt collection duties that remain unpaid despite the demand under Article 14(1) (hereinafter referred to as "overdue debts"), entrust the collection of such overdue debts (hereinafter referred to as "overdue debt collection duties") to the Korea Asset Management Corporation established under the Act on the Establishment of Korea Asset Management Corporation or to a debt collection company defined in subparagraph 10-2 of Article 2 of the Act on the Use and Protection of Credit Information: <Amended on Nov. 26, 2019; Feb. 4, 2020> |
| 1. | Verifying the address or place of residence of a debtor subject to collection of overdue debts (hereinafter referred to as "delinquent debtor"); |
| 2. | Investigating into the properties of a delinquent debtor; |
| 3. | Sending letters demanding the payment of overdue debts and providing counseling services by telephone or in person; |
| 4. | Duties prescribed by Presidential Decree as simple factual acts equivalent to those provided in subparagraphs 1 through 3. |
| (2) | No one entrusted with the overdue debt collection duties under paragraph (1) (hereinafter referred to as "entrusted agency") shall re-entrust it to any third party. |
| (3) | If the head of a central government agency intends to entrust the overdue debt collection duties to a person in accordance with paragraph (1), he or she shall have a prior consultation with the Minister of Economy and Finance; in such cases, if the Minister of Economy and Finance deems it necessary for appropriately managing claims, they may place limits on the scope of persons who can be entrusted with the overdue debt collection duties, as prescribed by Presidential Decree. <Amended on Oct. 1, 2025> |
| (4) | The method of entrustment, the scope of overdue debts subject to entrustment, entrustment fees, and other matters necessary for the overdue debt collection duties shall be prescribed by Presidential Decree. |
[This Article Added on Aug. 13, 2013]
| Article 14-3 (Supervision over entrusted agencies) |
| (1) | If the head of a central government agency deems it necessary for managing the entrusted overdue debt collection duties, they may require entrusted agencies to file necessary reports or conduct an audit on the results of the entrusted duties. |
| (2) | If the head of a central government agency finds that business affairs performed by an entrusted agency are illegal or improper, they may request the head of the entrusted agency to take corrective measures or to give a reprimand to the executive officers and employees involved and may terminate the entrustment contract or disqualify the relevant entrusted agency from collecting overdue debts for a specified period. |
| (3) | If the Minister of Economy and Finance deems it necessary for the proper management of the overdue debt collection duties, they may require the head of a central government agency to provide relevant data on the entrusted duties, or request them to take necessary measures. <Amended on Oct. 1, 2025> |
| (4) | Other matters necessary for the supervision, audit, etc. of entrusted agencies shall be prescribed by Presidential Decree. |
[This Article Added on Aug. 13, 2013]
| Article 15 (Requests for compulsory performance) |
If all or part of claims are still not paid by the deadline specified in a demand notice issued under Article 14, the head of a central government agency shall take following measures; provided, this shall not apply where the collection of overdue debts has been entrusted to a person in accordance with Article 14-2, a measure discontinuing management has been taken under Article 24(1), the payment period is extended in accordance with Article 27 (including where the payment period is extended by settlement under Article 30, and a similar measure is taken in accordance with other statutes), a debt shall be collected in the same manner as national taxes and delinquent national taxes are collected, or the head of a central government agency make decisions in consultation with the Minister of Economy and Finance: <Amended on Aug. 13, 2013; Oct. 1, 2025> | 1. | In the case of a secured claim (including a claim secured by a guarantor; hereinafter the same shall apply), disposing of the collateral according to the content of the claim, requesting the Minister of Justice to initiate auction or other procedures for the exercise of security rights, or demanding performance from the guarantor; |
| 2. | Requesting the Minister of Justice to initiate compulsory execution procedures for claims supported by an enforceable title (including cases where such title has been obtained under subparagraph 3); |
| 3. | Requesting the Minister of Justice to file a claim for fulfillment through litigation procedures (including non-contentious case procedures) and to undertake procedures for obtaining an enforceable title, such as preparing a notarial deed, for claims not falling under subparagraphs 1 or 2 (including claims falling under subparagraph 1 that remain unfulfilled despite the measures taken under that subparagraph). |
[This Article Wholly Amended on Apr. 8, 2011]
| Article 16 (Collection prior to payment deadline) |
If a claims management officer becomes aware that a cause has arisen justifying advancing the payment deadline, they shall, without delay, take measures under Article 13; provided, this shall not apply to cases where the payment deadline can be extended under any subparagraph of Article 27(1). [This Article Wholly Amended on Apr. 8, 2011]
| Article 17 (Report of claims) |
When a claims management officer becomes aware of the occurrence of any of the following grounds, they shall demand the distribution of claims under their jurisdiction or file a report on claims under relevant statutes:
| 1. | Where a debtor becomes subject to compulsory execution; |
| 2. | Where a debtor has become subject to a disposition on delinquency of taxes or other public charges; |
| 3. | Where an auction of a debtor's property has commenced; |
| 4. | Where a debtor is declared bankrupt; |
| 5. | Where an incorporated debtor is dissolved; |
| 6. | Where a successor to a debtor approves qualified acceptance; |
| 7. | Except as provided in subparagraphs 4 through 6, where the procedure for liquidating the whole property of a debtor has been commenced. |
[This Article Wholly Amended on Apr. 8, 2011]
| Article 18 (Demand for provision of collateral) |
| (1) | A claims management officer shall, for the preservation of claims, require a debtor to provide collateral or a guarantor in accordance with statutes or regulations or as provided in a contract and, if necessary, shall require additional collateral, replacement of a guarantor, or other changes to the collateral. |
| (2) | When collateral is provided under paragraph (1), the claims management officer shall, without delay, complete registration of the security interest, or take other steps necessary to make the security interest enforceable against third parties. |
[This Article Wholly Amended on Apr. 8, 2011]
| Article 19 (Preservation of collateral or evidentiary objects) |
| (1) | A claims management officer shall handle and preserve, with the care of a good manager, any collateral to be held by the State as the creditor with respect to a claim (including any object received by way of subrogation of rights belonging to the debtor), as well as any documents or other objects necessary to prove the claim or matters pertaining to the collateral for the claim. |
| (2) | In cases falling under paragraph (1), where the collateral is a security, it shall be handled in accordance with the relevant statutes or regulations. |
| (3) | In cases falling under paragraph (1), if the collateral is a movable property to which the Commodity Management Act apply mutatis mutandis under Article 47 of that Act, such property shall be kept by the commodity management officer under Article 10 of that Act, and the claims management officer shall issue a disbursement order under Article 31 of that Act. |
[This Article Wholly Amended on Apr. 8, 2011]
| Article 20 (Provisional attachment or provisional disposition) |
The head of a central government agency shall request the Minister of Justice to initiate procedures for provisional attachment or provisional disposition, if necessary for the preservation of claims.
[This Article Wholly Amended on Apr. 8, 2011]
| Article 21 (Exercise of subrogation right of creditor) |
A claims management officer shall take measures to exercise a creditor's subrogation right, if necessary, for the preservation of claims.
[This Article Wholly Amended on Apr. 8, 2011]
| Article 22 (Revocation of fraudulent acts) |
Where the head of a central government agency becomes aware that a debtor has committed a fraudulent act detrimental to the interests of the State with respect to a claim, they shall promptly request the Minister of Justice to file an action with the court for the cancellation of such act.
[This Article Wholly Amended on Apr. 8, 2011]
| Article 23 (Interruption of prescription) |
When the claims management officer recognizes a risk that a claim may be extinguished by prescription, they shall, without delay, take measures to interrupt the prescription, such as requesting the Minister of Justice to file a judicial claim.
[This Article Wholly Amended on Apr. 8, 2011]
| Article 24 (Suspension of management) |
| (1) | If a claim is not fully satisfied even after a demand is made under Article 14, the claims management officer may, with the approval of the head of the central government agency to which they belong, suspend the preservation or collection of such claim, as prescribed by Presidential Decree, when the claim or the debtor falls under any of the following subparagraphs; provided, this shall not apply to the preservation of collateral or evidentiary objects under Article 19: |
| 1. | When the debtor is a corporation that has discontinued its business with no possibility of resumption, and the value of the property that can be seized does not exceed the cost of compulsory execution; provided, this shall not apply where there is another person who is able to repay the corporation's debt; |
| 2. | Where the whereabouts of the debtor are unknown, and the value of the property that can be seized does not exceed, or is equivalent to, the cost of compulsory execution, as prescribed by Presidential Decree; |
| 3. | Where the amount of claims is smaller than the costs of collection. |
| (2) | When a claims management officer, after taking the measures under paragraph (1), deems that it is no longer necessary or appropriate to maintain such measures due to a change in circumstances or for any other reason, they shall cancel such measures without delay. |
[This Article Wholly Amended on Apr. 8, 2011]
| Article 25 (Notification of extinction of claims) |
Where a revenue collection officer, a person who receives repayment in accordance with statutes or regulations, a person who gives notice of the occurrence of a claim under Article 11-2, or any other relevant person becomes aware in the course of their duties that a claim has been extinguished, they shall notify the claims management officer of such fact. [This Article Wholly Amended on Apr. 8, 2011]
| Article 25-2 (Provision of data on delinquency or suspension of management) |
| (1) | Where it is necessary for the recovery of delinquent amounts or for other public interest purposes, the head of each central government agency may provide data concerning the personal information of a delinquent obligor, the amount in arrears, or the amount of claims suspended from management (including claims written off under other statutes; hereinafter the same shall apply), to a credit information concentration agency referred to in Article 2 subparagraph 6 of the Credit Information Use and Protection Act or any other person prescribed by Presidential Decree, if such agency or person requests the data with respect to a delinquent obligor who falls under any of the following subparagraphs or a claim suspended from management under Article 24; provided, that such data shall not be provided where an objection, an administrative appeal, or an administrative litigation is pending with respect to the delinquent or suspended claim, or in any other case prescribed by Presidential Decree: <Amended on Feb. 4, 2020> |
| 1. | A person who still owes overdue debts in excess of the amount prescribed by Presidential Decree even 1 year after the demand deadline; |
| 2. | A person who has been delinquent 3 or more times in a year and whose total amount of overdue debts is equal to or greater than the amount prescribed by Presidential Decree; |
| 3. | A person, the total amount of whose debts subject to suspension of management exceeds the amount prescribed by Presidential Decree. |
| (2) | Any person who has been provided with data on delinquency or suspended management shall not disclose or use such data for any purpose other than business purposes. |
| (3) | Matters necessary for procedures for the provision of data on delinquency or suspension of management shall be prescribed by Presidential Decree. |
[This Article Added on Aug. 13, 2013]
CHAPTER IV MODIFICATION OF CONTENT OF CLAIMS AND RELEASE OF CLAIMS
| Article 26 (Decision on payment deadline) |
| (1) | Payment deadline shall be specified as a definite date. |
| (2) | Notwithstanding paragraph (1), if it is deemed advantageous for performance, the payment deadline for the claim may be set by dividing the claim amount into installments, unless otherwise provided by other statutes or regulations. |
[This Article Wholly Amended on Apr. 8, 2011]
| Article 27 (Deferment agreement) |
| (1) | Where a claim (excluding claims collected in accordance with the procedures for the collection or disposition for delinquent national taxes and other claims prescribed by Presidential Decree) or a debtor falls under any of the following subparagraphs, the claims management officer may, with the approval of the head of the central government agency to which they belong, enter into a special agreement or disposition to extend the payment deadline (hereinafter referred to as "deferment agreement"), as prescribed by Presidential Decree: |
| 1. | When a debtor is insolvent; |
| 2. | Where it is deemed advantageous for collection to extend the payment deadline, given that the debtor is unable to perform all obligations at once and in light of their current asset status; |
| 3. | Where, in the case of a contractual claim, the debtor is unable to perform the entire obligation at once and it is deemed that requiring performance by the prescribed deadline would likely cause significant harm to the public interest; |
| 4. | Where, in the case of a claim for damages or for the return of unjust enrichment, the debtor is unable to perform the entire obligation at once but is deemed to have demonstrated particular good faith in seeking to make repayment; |
| 5. | Where a claim pertains to a loan, and the debtor has re-lent the loan to a third party according to its intended use, if it is recognized that the third party falls under any of subparagraphs 1 to 3 and it is significantly impracticable to recover the loan from the third party, and the debtor is deemed unable to perform the entire obligation at once. |
| (2) | A claims management officer may enter into a deferment agreement even after the payment deadline has passed. In such cases, any overdue charges (referring to damages for delay or any other charges equivalent thereto; hereinafter the same shall apply) shall be collected in advance before entering into such agreement. |
| (3) | If a claims management officer enters into a deferment agreement for a claim that is to be repaid in installments, they may, when necessary and as prescribed by Presidential Decree, simultaneously extend the payment deadline for the amounts of the claim that are to be repaid after the original payment deadline. |
[This Article Wholly Amended on Apr. 8, 2011]
| Article 28 (Period of deferred performance) |
| (1) | When a claims management officer intends to extend the payment deadline under Article 27, the extended period shall not exceed 5 years from the original payment deadline. |
| (2) | In cases falling under paragraph (1), when necessary, the payment of the relevant claim amount may be made in installments within the period of deferred performance. |
[This Article Wholly Amended on Apr. 8, 2011]
| Article 29 (Measures concerning deferment agreement) |
| (1) | When entering into a deferment agreement, a claims management officer shall require the debtor to provide collateral, as prescribed by Presidential Decree, and attach interest to the claim; provided, collateral or interest may be released for debtors prescribed by Presidential Decree. |
| (2) | Where a claims management officer enters into a deferment agreement for a claim for which there is no enforceable title, they shall take measures necessary to obtain an enforceable title, except as provided by Presidential Decree. |
| (3) | When a claims management officer enters into a deferment agreement under Article 27, they shall attach conditions prescribed by Presidential Decree. |
[This Article Wholly Amended on Apr. 8, 2011]
| Article 30 (Settlement in lieu of deferment agreement) |
When the head of a central government agency deems it appropriate to substitute a deferment agreement with a settlement under Article 385 of the Civil Procedure Act, they shall request the Minister of Justice to initiate the relevant procedures. [This Article Wholly Amended on Apr. 8, 2011]
| (1) | With respect to a claim for which a deferment agreement has been made (including cases where the payment deadline is extended by settlement under Article 30 or where measures equivalent thereto have been taken under other statutes or regulations), if a claims management officer finds that 10 years have elapsed since the original payment deadline (or, where a deferment agreement is made after the original payment deadline, since the date on which the first deferment agreement was made) and the debtor has not regained solvency and is unlikely to be able to make repayment in the future, they may release the debtor from the relevant debt (including overdue charges and interest; hereafter in this Article the same shall apply), with the approval of the head of the central government agency to which they belong. |
| (2) | With respect to cases where a deferment agreement is made under Article 27(1)5, paragraph (1) shall apply mutatis mutandis; in such cases, it shall be conditional upon the third party being released from the obligation to repay loans to the debtor. |
| (3) | Notwithstanding paragraph (1), if the head of a central government agency deems it impracticable to collect all or part of a claim for which a foreign country or an international organization is the debtor, considering the economic and financial circumstances of the debtor, economic cooperation with the debtor, international relations, and other relevant factors, they may release all or part of such debt in consultation with the Minister of Economy and Finance; in such cases, approval of the President shall be obtained after deliberation by the State Council. <Amended on Oct. 1, 2025> |
| (4) | If the Government releases all or part of a debt under paragraph (3), it shall obtain prior approval of the National Assembly; provided, this shall not apply to debt release agreed upon by 2 or more creditor countries where it is deemed impracticable to obtain prior approval of the National Assembly; in such cases, the Government shall report the result of the debt release to the National Assembly without delay. |
| (5) | If the head of a central government agency releases part of a debt under paragraph (3), they may extend the payment deadline, notwithstanding Articles 27 through 29. |
[This Article Wholly Amended on Apr. 8, 2011]
| Article 32 (Special provisions concerning overdue charges) |
| (1) | A claims management officer need not impose overdue charges on claims that have not been repaid by the payment deadline if the amount of such claims is less than 10,000 won (excluding claims that bear interest or to which other statutes or regulations concerning overdue charges apply). |
| (2) | In the case of tuition fees for national schools or other claims as prescribed by Presidential Decree, when the full amount of principal has been repaid, all or part of the accrued overdue charges up to that time may be released. |
[This Article Wholly Amended on Apr. 8, 2011]
CHAPTER V SUPPLEMENTARY PROVISIONS
| Article 33 (Terms and conditions of contract on claims) |
| (1) | Unless otherwise provided by statutes or regulations, a person who performs acts regarding contracts or the incurrence of claims under statutes or regulations (hereinafter referred to as the "contracting officer") shall not stipulate the reduction, release, or deferment of a claim in determining the content of the claim. |
| (2) | When a contracting officer enters into a contract that creates claims, they shall stipulate the terms and conditions of the contract, as prescribed by Presidential Decree. |
[This Article Wholly Amended on Apr. 8, 2011]
| Article 34 Deleted. <Dec. 31, 1982> |
| Article 35 Deleted. <Dec. 31, 1982> |
| Article 36 (Reporting on current amount of claims) |
The head of a central government agency shall prepare a report on the current amount of claims as of the end of each financial year, as prescribed by Presidential Decree, and submit it to the Minister of Economy and Finance by the end of February of the following year. <Amended on Oct. 1, 2025>
[This Article Wholly Amended on Apr. 8, 2011]
| Article 37 (Comprehensive statement of current amount of claims) |
| (1) | The Minister of Economy and Finance shall prepare a comprehensive statement of the current amount of claims based on the report under Article 36. <Amended on Oct. 1, 2025> |
| (2) | The Minister of Economy and Finance shall submit the comprehensive statement under paragraph (1), together with the report under Article 36, to the Board of Audit and Inspection by April 10 of the following year to undergo its audit. <Amended on Oct. 1, 2025> |
| (3) | The Government shall report to the National Assembly by May 31 of the following year the comprehensive statement of the current amount of claims that has been audited by the Board of Audit and Inspection under paragraph (2), together with the audit report prepared by the Board of Audit and Inspection. |
[This Article Wholly Amended on Apr. 8, 2011]
| Article 38 (Payment of monetary awards) |
| (1) | The head of a central government agency may pay a monetary award not exceeding 100 million won to a person who reports a delinquent debtor's concealed property; provided, no monetary award shall be paid where the amount collected following a report on concealed property is less than the amount prescribed by Presidential Decree or where a public official files such a report in connection with their duties. |
| (2) | The concealed property under paragraph (1) shall include cash, deposits, stocks, and other tangible or intangible property of pecuniary value concealed by a delinquent debtor; provided, the following property shall be excluded: <Amended on Jun. 9, 2020> |
| 1. | Property that is the subject of a fraudulent conveyance cancellation lawsuit under Article 22; |
| 2. | Property for which the claims management officer, having become aware of its concealment, has commenced investigation procedures or procedures for compulsory execution under the subparagraphs of Article 15 (including disposition for delinquent national taxes in the case of claims collected in accordance with the procedures for national tax collection or disposition for delinquent national taxes); |
| 3. | Other property prescribed by Presidential Decree for which reporting of concealed properties of delinquent debtors is deemed unnecessary. |
| (3) | A report on concealed property under paragraph (1) shall be made in writing, stating the name and address of the reporter and bearing the reporter's signature or seal, and shall be accompanied by objectively verifiable supporting materials. |
| (4) | No public official in charge of business affairs related to the payment of monetary awards under paragraph (1) shall use any information on a report or information provided, such as the identity of the reporter or the provider of materials, for any purpose other than the intended purpose, or provide or divulge such information to any other person. |
| (5) | Criteria and methods for the payment of monetary awards under paragraph (1) and the method of reporting under paragraph (3), and other matters shall be prescribed by Presidential Decree. |
[This Article Added on Aug. 13, 2013]
| Article 39 Deleted. <Apr. 8, 2011> |
ADDENDA <Act No. 2250, Dec. 31, 1970>
| (1) | (Enforcement date) This Act shall enter into force on January 1,1971. |
| (2) | (Effective date of application of provisions concerning current amount of claims) Articles 36 and 37 shall begin to apply to the current amount of claims as of the end of fiscal year 1970 and thereafter. |
| (3) | (Repealed statutes or regulations) The Act on Disposal of Non-Tax Revenues (Act No. 899) shall be repealed by the enforcement of this Act. |
| (4) | (Transitional measures) Term loan claims, deferred loan claims, and other claims that arose or were vested in the State before the enforcement of this Act under the Act on Disposal of Non-Tax Revenues shall be deemed claims under this Act. |
| (5) | (Deemed date of agreement on deferred performance) With respect to claims incorporated into term loan claims or deferred loan claims under the Act on Disposal of Non-Tax Revenues, the date of such incorporation shall be deemed the date on which an agreement on deferred performance is made under this Act. |
ADDENDUM <Act No. 3628, Dec. 31, 1982>
This Act shall enter into force on the date of its promulgation.
ADDENDA <Act No. 3947, Nov. 28, 1987>
Article 1 (Enforcement date)
This Act shall enter into force 6 months after the date of its promulgation.
ADDENDA <Act No. 4408, Nov. 30, 1991>
Article 1 (Enforcement date)
This Act shall enter into force on the date of its promulgation.
ADDENDUM <Act No. 5454, Dec. 13, 1997>
This Act shall enter into force on January 1, 1998. (Proviso Omitted.)
ADDENDA <Act No. 6626, Jan. 26, 2002>
Article 1 (Enforcement date)
This Act shall enter into force on July 1, 2002.
ADDENDA <Act No. 6627, Jan. 26, 2002>
Article 1 (Enforcement date)
This Act shall enter into force on July 1, 2002.
ADDENDA <Act No. 7029, Dec. 31, 2003>
| (1) | (Enforcement date) This Act shall enter into force on the date of its promulgation. |
| (2) | (Transitional measures) The debt forgiveness that is granted by the Government in accordance with an agreement that has been reached between the Government and the Federal Government of Russia as a result of restructuring of debts Russia owe after receiving the Economic Development Cooperation Fund shall be deemed the debt forgiveness provided in the amended provisions of Article 31(3) and (4). |
ADDENDA <Act No. 8050, Oct. 4, 2006>
Article 1 (Enforcement date)
This Act shall enter into force on January 1, 2007; provided, ... <omitted> ... the provisions of Article 11(14) of the Addenda ... <omitted> ... shall enter into force on January 1, 2008, respectively.
ADDENDA <Act No. 8852, Feb. 29, 2008>
Article 1 (Enforcement date)
This Act shall enter into force on the date of its promulgation; provided, ... <omitted> ... among the Acts amended under Article 6 of the Addenda, the amended provisions of the Acts that were promulgated before the enforcement of this Act but whose effective dates have not yet arrived shall enter into force on the respective effective dates of such Acts.
ADDENDUM <Act No. 10571, Apr. 8, 2011>
This Act shall enter into force on the date of its promulgation.
ADDENDA <Act No. 12029, Aug. 13, 2013>
Article 1 (Enforcement date)
This Act shall enter into force 6 months after the date of its promulgation.
Article 2 (Applicability concerning payment of monetary awards)
The amended provisions of Article 38 shall begin to apply to cases where a delinquent debtor's concealed property is reported after this Act enters into force.
ADDENDA <Act No. 16652, Nov. 26, 2019>
Article 1 (Enforcement date)
This Act shall enter into force on the date of its promulgation.
ADDENDA <Act No. 16957, Feb. 4, 2020>
Article 1 (Enforcement date)
This Decree shall enter into force 6 months after the date of its promulgation. (Proviso Omitted.)
ADDENDUM <Act No. 17339, Jun. 9, 2020>
This Act shall enter into force on the date of its promulgation. (Proviso Omitted.)
ADDENDA <Act No. 21065, Oct. 1, 2025>
Article 1 (Enforcement date)
This Act shall enter into force on the date of its promulgation; provided, the amendments to statutes, which are amended under Article 7 of the Addenda and were promulgated before the enforcement of this Act but whose enforcement dates have not yet arrived, shall enter into force on the respective enforcement dates of such statutes, and the amended provisions under the following subparagraphs shall enter into force on the dates specified in the relevant subparagraph: | 1. | The amended provisions under the following items shall enter into force on January 2, 2026; provided, among the statutes amended under Article 7 of the Addenda (limited to the parts related to the amended provisions of items (a) and (b)), the amendments to statutes that were promulgated before the enforcement date prescribed in the main clause but whose enforcement dates have not yet arrived shall enter into force on the respective enforcement dates of such statutes: |
| b. | Amended provisions of Articles 12(2), 19(3), 22, and 29(2) (limited to the parts relating to the Minister of Finance and Economy and the Ministry of Finance and Economy); |
| c. | Statutes amended under Article 7 of the Addenda (limited to the parts related to the amended provisions of items a and b); |