CHAPTER I GENERAL PROVISIONS
The purpose of this Decree is to prescribe matters delegated by the Korea Development Bank Act and matters necessary for the enforcement thereof.
| Article 2 (Registration of incorporation) |
| (1) | The Chairperson of the Korea Development Bank (KDB) (hereinafter referred to as the "Chairperson") shall register the incorporation of KDB at the location of its head office, within two weeks from the date KDB is incorporated. |
| (2) | Matters to be registered for incorporation shall be as follows: |
| 3. | The location of the head office; |
| 4. | The location of branches; |
| 5. | Capital, the total number of stocks to be issued, and the face value of a stock; |
| 6. | The total number and types of stocks issued, and the contents and numbers by type; |
| 7. | Name, resident registration number, and address of the Chairperson; |
| 8. | Names and resident registration numbers of the Vice Chairperson, directors, and auditor; |
| 9. | Method of giving public notice. |
| (3) | KDB shall register the particulars provided for in each subparagraph of paragraph (2) at the location of its branches or sub-branches, within three weeks from the date of the registration of incorporation. |
| Article 3 (Registration of establishment of branches) |
If a branch office is established, the KDB shall register the name, location, and date of establishment of the branch office at the location of the head office within 2 weeks after establishment.
[This Article Wholly Amended on Jan. 21, 2025]
| Article 4 (Registration of relocation) |
| (1) | Where the KDB relocates its head office, it shall register the new location and the date of relocation at the former or the new location of the office within 2 weeks after such relocation. |
| (2) | Where the KDB relocates its branch office, it shall register the new location and the date of relocation at the new location of the head office within 2 weeks after such relocation. |
[This Article Wholly Amended on Jan. 21, 2025]
| Article 5 (Registration of change) |
Where any matter registered under each subparagraph of Article 2(2) or Article 3 is changed (excluding cases falling under the registration of relocation under Article 4), the KDB shall register such change at the location of its head office within 2 weeks after the change.
[This Article Wholly Amended on Jan. 21, 2025]
| Article 6 (Registration for appointment of agent) |
If its CEO appoints an agent under Article 15 of the Korea Development Bank Act (hereinafter referred to as the "Act"), the KDB shall register the following particulars at the location of the head office for which the agent is appointed, within 2 weeks following the appointment; and the same shall also apply to any change in the particulars registered: <Amended on Jan. 21, 2025>
| 1. | Name, resident registration number, and address of the agent; |
| 2. | Restrictions, if any, on the powers of the agent. |
| Article 7 (Computation of registration period) |
If authorization from the Financial Services Commission is required for any of the particulars to be registered pursuant to Articles 2 through 6, the registration period shall be counted from the date the relevant written authorization is received.
| Article 8 (Registry office) |
| (1) | The registration of the KDB shall be handled by the district court, branch court, or registry office having jurisdiction over the location of its head office. <Amended on Jan. 21, 2025> |
| (2) | Each registry office shall keep the register book of KDB. |
| Article 9 (Applicant for registration) |
An application for registration of KDB shall be filed by the Chairperson.
| Article 10 (Documents to be attached to application for registration) |
The following relevant documents shall be attached to an application for each registration referred to in Articles 2 through 6:
| 1. | In cases of registration of incorporation referred to in Article 2: The articles of incorporation, a copy of a written authorization for the articles of incorporation, a document certifying that initial capital has been paid in, and a document certifying the qualification of the Chairperson; |
| 2. | In cases of registration of the establishment of a new branch referred to in Article 3: A document certifying the establishment of the branch; |
| 3. | In cases of registration of the relocation of the head office or a branch referred to in Article 4: A document certifying the relocation of the head office or the branch; |
| 4. | In cases of registration of change referred to in Article 5: A document certifying change in the particulars registered; |
| 5. | In cases of registration for the appointment of an agent referred to in Article 6: A document certifying the appointment of the agent, and a document certifying restrictions, if any, on the powers of the agent. |
| Article 11 (Public notice of registration of incorporation) |
When KDB has completed the registration of its incorporation in accordance with Article 2, it shall serve public notice thereof without delay.
CHAPTER II INDUSTRIAL FINANCE BONDS
| Article 12 (Method of issuing bonds) |
| (1) | Industrial finance bonds referred to in Article 23(1) of the Act (hereinafter referred to as "industrial finance bonds") shall be issued by public offering or by contract with a specific person on the transfer or underwriting of bonds. |
| (2) | The issuance of industrial finance bonds by public offering shall be made by inviting subscription (including competitive tendering procedures) or by sales. |
| Article 13 (Subscription for bonds) |
| (1) | Any person who intends to subscribe for industrial finance bonds shall state on an application for subscription for industrial finance bonds in duplicate the number of industrial finance bonds for which he or she intends to subscribe, and his or her address, and shall place his or her signature and seal thereon. |
| (2) | An application for subscription for industrial finance bonds shall be prepared by the Chairperson, and shall contain the following particulars: <Amended on Jan. 5, 2021> |
| 2. | The total amount of industrial finance bonds to be issued; |
| 3. | The face value of each type of industrial finance bond; |
| 4. | The rate of interest on the industrial finance bonds; |
| 5. | The manner and timing of redemption of the principal; |
| 6. | The manner and timing of payment of interest; |
| 7. | The issue price or minimum level of the issue price of the industrial finance bonds; |
| 8. | The authorized capital and paid-in capital of KDB; |
| 9. | A statement indicating that industrial finance bonds are being issued under Article 24 of the Act, if issued thereunder; |
| 10. | The total amount of unredeemed industrial finance bonds, if any. |
| (3) | Notwithstanding paragraph (2)4, the subscriber shall indicate subscribed interest rates on the application for subscription for industrial finance bonds, unless the interest rate of industrial finance bonds is determined. |
| (4) | Notwithstanding paragraph (2)7, the subscriber shall indicate subscribed price on the application for subscription for industrial finance bonds, unless the issue price of industrial finance bonds is determined, or where its minimum level of issue price is determined. |
| Article 14 (Firm commitment underwriting) |
`Article 13 shall not apply where the total amount of industrial finance bonds being issued is taken up under an underwriting agreement.
| Article 15 (Total Amount of Bonds Issued) |
If it is stated in an application for subscription for industrial finance bonds that the industrial finance bonds are validly issued even when the total amount of subscriptions for the industrial finance bonds is less than the total amount of the issued industrial finance bonds stated in the application for subscription for industrial finance bonds, the total amount of subscriptions shall be that of the industrial finance bonds issued.
| Article 16 (Payment of subscription price for bonds) |
If the subscription period for industrial finance bonds has been closed, the Chairperson shall pay the full amount of each industrial finance bond, without delay.
| Article 17 (Timing to issue bonds) |
No certificate of industrial finance bonds shall be issued unless the total amount of the issued industrial finance bonds is paid in full; provided, the same shall not apply where the industrial finance bonds are issued under Article 18.
| Article 18 (Issuance of bonds by sales) |
| (1) | Where industrial finance bonds are issued by sales, the sales period shall be fixed in advance. |
| (2) | When industrial finance bonds are issued under paragraph (1), no application for subscription for industrial finance bonds shall be prepared. |
| (3) | In a certificate for industrial finance bonds issued under paragraph (1), the particulars mentioned in Article 13(2)1 and 3 through 6, and the serial number of each industrial finance bond shall be stated. |
| Article 19 (Public notice of issuance of bonds by sales) |
When KDB intends to issue industrial finance bonds by a sale, it shall serve public notice by advertising the sale period and the particulars stated in Article 13(2)1 through 7.
| Article 20 (Keeping of ledger of bonds) |
| (1) | KDB shall cause the ledger of industrial finance bonds to be kept at its head office. |
| (2) | In the ledger of industrial finance bonds, the following particulars shall be entered: |
| 1. | The total number of industrial finance bonds, and the serial number of each bond; |
| 2. | The date industrial finance bonds are issued; |
| 3. | The particulars stated in Article 13(2)2 through 6. |
| (3) | When industrial finance bonds are issued in non-bearer form, the following particulars shall be entered in the ledger of industrial finance bonds, in addition to those stated in each subparagraph of paragraph (2): |
| 1. | The name and address of each holder; |
| 2. | The date of acquisition thereof. |
| Article 21 (Inspection of ledger of bonds) |
Holders of industrial finance bonds shall be entitled to request the inspection of the ledger of industrial finance bonds at any time during the business hours of KDB.
| Article 22 (Transfer of bonds in non-bearer form) |
With respect to the transfer of an industrial finance bond in non-bearer form, no transferee shall defend against KDB or a third party unless and until the name and address of the transferee are entered in the ledger of industrial finance boards and the same name is entered in the certificate thereof.
| Article 23 (Creation of pledge on bonds in non-bearer form) |
| (1) | No pledge on an industrial finance bond in non-bearer form shall be created against KDB or other third parties unless and until the name and address of the pledgee are entered in the ledger of industrial finance bonds. |
| (2) | When a pledge is created in accordance with paragraph (1), KDB shall enter such fact on the relevant industrial finance bond certificate. |
| Article 24 (Retirement of bonds) |
KDB may retire industrial finance bonds by purchasing them to the extent not impeding the performance of business operations provided for in Article 18 of the Act.
| Article 25 (Deficiency of coupon) |
| (1) | When the coupon attached to an industrial finance bond in bearer form has been lost, an amount equivalent thereto shall be deducted from the sum to be repaid upon redemption. |
| (2) | The bearer of the coupon stated in paragraph (1) may request KDB to pay the amount which has been deducted at any time in exchange for the coupon. |
| Article 26 (Notice to subscribers for bonds) |
| (1) | Notices or peremptory notices to subscribers for industrial finance bonds shall be sent to the address entered on the subscription application; provided, if the subscriber gives KDB another address for the purpose of notices or peremptory notices, they shall be sent there. |
| (2) | The provisions of paragraph (1) shall also apply to notices or peremptory notices sent to persons having title to industrial finance bonds before the bond certificate is issued. |
| (3) | Notices or peremptory notices to holders of industrial finance bonds in non-bearer form shall be sent to the address appearing on the ledger of industrial finance bonds; provided, if the holder gives KDB another address for the purpose of notices or peremptory notices, they shall be sent there. |
| (4) | Notices or peremptory notices to holders of industrial finance bonds in bearer form may be given by public notice. |
CHAPTER III FUND MANAGEMENT COMMITTEE
| Article 27 (Composition of Committee) |
| (1) | The Fund Management Committee established under Article 29 of the Act (hereinafter referred to as the "Committee") shall be comprised of up to nine members, including one chairperson. |
| (2) | The members of the Council shall be the following persons: <Amended on Dec. 30, 2025> |
| 2. | Two persons, each of whom is designated by the Minister of Economy and Finance and the Chairperson of the Financial Services Commission, respectively, from among public officials under his or her jurisdiction who belong to the Senior Civil Service Corps; |
| 3. | One person designated by the Governor of the Bank of Korea under the Bank of Korea Act from among executives under his or her jurisdiction; |
| 4. | Two persons designated by the Chairperson of the Financial Services Commission from among executives of institutions funded with the contributions under Article 23-2(2)1 through 3 of the Act on the Structural Improvement of the Financial Industry, taking into account the gender composition of the entire members of the Committee; |
| 5. | Three persons commissioned by the Financial Services Commission from among persons with abundant expertise and experience in policy-banking or any other related area, taking into account the gender composition of the entire members of the Committee. |
| (3) | The term of office of each member of the Committee referred to in paragraph (2)5 shall be two years, and may be renewed only once. |
| (4) | A vacancy for a member referred to in paragraph (2)5 shall be filled by commissioning another member, and the term of office of the newly commissioned member shall be counted from the date he or she is commissioned. |
| Article 28 (Operation of Committee) |
| (1) | The Chairperson shall be the chairperson of the Committee (hereinafter referred to as the "chairperson"). |
| (2) | The chairperson shall represent the Committee and preside over the affairs of the Committee. |
| (3) | Where the chairperson is unable to perform any of his or her duties due to extenuating circumstances, a member pre-designated by the Committee shall act on his or her behalf. |
| (4) | Meetings of the Committee shall be called by the chairperson, as prescribed by the articles of incorporation. |
| (5) | The chairperson shall call a meeting without delay if requested by a majority of all incumbent members. |
| (6) | Meetings of the Committee shall be held with the attendance of a majority of all incumbent members, and resolutions shall be passed with the concurrent vote of a majority of the members present. |
| (7) | Except as provided for in paragraphs (1) through (6), matters necessary for the operation of the Committee shall be determined by the chairperson by a resolution of the Committee. |
CHAPTER III-2 KEY INDUSTRY STABILIZATION FUND FOR OVERCOMING CRISIS AND PROTECTING EMPLOYMENT
| Article 28-2 (Categories of business of key industries) |
"Types of Business prescribed by Presidential Decree" in the provisions, with the exception of the subparagraphs, of Article 29-2(2) of the Act means the following types of business according to the standard classification of industries publicly notified by the Minister of Data and Statistics under Article 22 of the Statistics Act: <Amended on Oct. 1, 2025; Dec. 30, 2025>
| 1. | Air transport services and air transport support services; |
| 2. | Marine transportation business, port and other marine terminal operation business, water cargo handling business; |
| 3. | Other types of business designated by the Financial Services Commission, from among the types of business falling under any subparagraph of Article 29-2(2) of the Act, which the Financial Services Commission deems it necessary to provide financial support from the key industrial industry stabilization fund for overcoming crisis and employment under paragraph (1) of that Article (hereinafter referred to as the "key industry stabilization fund") because it is likely to significantly affect the national economy, employment security, national security, etc. due to difficulties in business management, such as a rapid decline in sales, etc., after hearing opinions of the head of the competent central administrative agency. In such cases, the Financial Services Commission shall have a prior consultation with the Minister of Economy and Finance. |
[This Article Added on May 12, 2020]
| Article 28-3 (Methods of issuing key industry stabilization fund bonds) |
`Article 25 of the Act and Articles 12, 13(1), 13(2)1 through 7 and 10, (3) and (4), 14 through 21, 24, and 26 of this Decree shall apply mutatis mutandis to the method of issuing bonds of the key industry stabilization fund under the former part of Article 29-3(2) of the Act, with the exception of its subparagraphs, and other matters concerning the issuance of bonds of the key industry stabilization fund, respectively. In such cases, "industrial finance bonds" shall be construed as "bonds of the key industry stabilization fund," "industrial finance bonds under Article 23(1) of the Act" in Article 12 as "bonds of the key industry stabilization fund under the former part of Article 29-3(2) of the Act, with the exception of its subparagraphs, and "Article 18 of the Act" in Article 24 as "management and operation of and financial support for the key industry stabilization fund under Article 18(2)7 of the Act".
[This Article Added on May 12, 2020]
| Article 28-4 (Exercise of voting rights on stocks held in possession) |
"Cases prescribed by Presidential Decree" in the proviso of Article 29-4(5) of the Act means any of the following cases:
| 1. | Where a resolution is made on matters that may significantly affect the value of stocks (including investment shares), such as reduction of capital and issuance of stocks below par value, etc.; |
| 2. | Where a key industrial enterprise that has received financial support under Article 29-3(2) of the Act applies for restructuring procedures, such as rehabilitation procedures under the Debtor Rehabilitation and Bankruptcy Act or administrative procedures under the Corporate Restructuring Promotion Act, and it is necessary to exercise its voting rights to preserve the property of the key industrial enterprise stabilization fund. |
[This Article Added on May 12, 2020]
| Article 28-5 (Composition and operation of deliberative committee on operation of key industry stabilization fund) |
| (1) | The members of the deliberative committee on the operation of the key industry stabilization fund established under Article 29-6 of the Act (hereinafter referred to as "deliberative committee on the operation of the key industry stabilization fund") shall be commissioned by the Chairperson of the Financial Services Commission from among the following persons; provided, a person who falls under any subparagraph of Article 7 of the Special Act on the Management of Public Funds shall not become a member: <Amended on Dec. 30, 2025> |
| 1. | Two persons recommended by the competent Standing Committee of the National Assembly; |
| 2. | One person recommended by the Minister of Economy and Finance; |
| 3. | One person recommended by the Minister of Employment and Labor; |
| 4. | One person recommended by the Chairperson of the Financial Services Commission; |
| 5. | One person recommended by the chairperson of the Korea Chamber of Commerce and Industry; |
| 6. | One person designated by the Chairperson from among executive officers and employees of KDB. |
| (2) | The chairperson of the deliberative committee on the operation of the key industry stabilization fund shall be elected by and from among its members. |
| (3) | Committee members shall hold office for a term of 2 years and may be commissioned consecutively for further terms. |
| (4) | Where a vacancy occurs in Committee members, a new Committee member shall be commissioned, and his or her term of office shall be the remaining period of his or her predecessor's term of office. |
| (5) | Article 28(2) through (7) shall apply mutatis mutandis to the operation of the deliberative committee on the operation of the key industry stabilization fund. In such cases, "deliberative committee" shall be construed as "deliberative committee on the operation of the key industry stabilization fund." |
[This Article Added on May 12, 2020]
CHAPTER III-3 HIGH-TECH STRATEGIC INDUSTRY FUND
| Article 28-6 (Scope of companies related to advanced strategic industries) |
| (1) | "Enterprises prescribed by Presidential Decree" in the provisions, with the exception of the subparagraphs, Article 29-7(2) of the Act means the following enterprises: |
| 1. | A company that supplies equipment necessary for the production and operation of advanced strategic industry enterprises (hereinafter referred to as "advanced strategic industry enterprises"), under the part, with exception of, the subparagraphs of Article 29-7(2) of the Act or establishes related facilities; |
| 2. | A company that invests in advanced strategic industry enterprises through means such as capital contributions, loans, debt guarantees, and acquisition of corporate bonds to support the construction of production facilities or technological development; |
| 3. | A counterparty purchasing products from advanced strategic industry companies (including content provided by content providers under Article 2(1)5 of the Content Industry Promotion Act). |
| (2) | "Business types prescribed by Presidential Decree" in Article 29-7(2)3 of the Act means the following business types: |
| 1. | The industry to which a content provider belongs under Article 2(1)5 of the "Content Industry Promotion Act"; |
| 2. | The industry to which a company belongs, as a supplier institution under subparagraph 6 of Article 2 of the "Special Act on National Resources Security", performs the work of producing, importing, converting, processing, transporting, storing, or selling core minerals under subparagraph 1 b of Article 2, or installs, operates, or manages core mineral-related supply infrastructure (referring to supply infrastructure under subparagraph 5 of Article 2). |
[This Article Added on Nov. 25, 2025]
| Article 28-7 (Issuance of high-tech strategic industry fund bonds) |
`Article 25 of the Act and Articles 12, 13(1), 13(2)1 through 7 and 10, (3) and (4), 14 through 21, 24, and 26 of this Decree shall respectively apply mutatis mutandis to issuance of bonds of the high-tech strategic industry fund under Article 29-8(2)2 of the Act the key industry stabilization fund. In such cases, "industrial finance bonds" shall be construed as "bonds of the high-tech strategic industry fund," "Article 23(1) of the Act" in Article 12 as "the former part, with the exception of its subparagraphs, of Article 29-8(2) of the Act" and "under Article 18 of the Act" in Article 24 as "management and operation of and financial support for the high-tech strategic industry fund under Article 18(2)7 of the Act".
[This Article Added on Nov. 25, 2025]
| Article 28-8 (Management, investment, and accounting of high-tech strategic industry fund bonds) |
| (1) | Expenses necessary for KDB to handle affairs related to the management and operation of the high-tech strategic industry fund (hereinafter referred to as the "high-tech strategic industry fund") under Article 29-9(1) of the Act shall be borne by the high-tech strategic industry fund. |
| (2) | "Enterprises prescribed by Presidential Decree" in Article 29-7(2)4 of the Act means the following enterprises falling under Article 28-6(1)1 and 2. |
[This Article Added on Nov. 25, 2025]
| Article 28-9 (Exercise of voting rights on held stocks) |
"Cases prescribed by Presidential Decree" in Article 29-9(5)1 of the Act means any of the following cases:
| 1. | Where a high-tech strategic industrial enterprise, etc. that has received financial support under Article 29-7(1) of the Act (hereinafter referred to as "financial support" in this Chapter) (referring to a high-tech strategic industrial enterprise, etc. under Article 29-8(1)3 of the Act; this shall apply hereinafter) uses the supported funds for purposes other than the purpose of the financial support or violates the conditions imposed by the KDB pursuant to Article 29-10(2) of the Act; |
| 2. | Where a high-tech strategic industrial enterprise, which has received financial support, has applied for restructuring procedures such as rehabilitation procedures under the Debtor Rehabilitation and Bankruptcy Act or management procedures under the Act on the Promotion of Corporate Restructuring, and where the KDB or a high-tech strategic industry support company, etc. (hereinafter referred to as "high-tech strategic industry support company, etc."), under Article 29-9(2)2 of this Act, needs to exercise voting rights attached to the voting stocks (including investment shares; hereinafter this shall apply in this Article) of the relevant high-tech strategic industry enterprise; |
| 3. | Where a high-tech strategic industry enterprise, having received financial support, passes a resolution concerning matters that may significantly affect the value of its shares, such as reduction of capital or issuance of shares at a price below par value; |
| 4. | When a high-tech strategic industry company, etc. that has received financial support passes a resolution on matters that have a significant impact on the continuation of the relevant high-tech strategic industry company, etc., such as merger, division, transfer or acquisition of all or a significant part of the business, dissolution, or amendment of the articles of incorporation; |
| 5. | If the KDB or a high-tech strategic industry support company, etc. enters into an agreement to exercise voting rights on the voting stocks of a high-tech strategic industry enterprise, etc. when a reason significantly affecting the management or assets of the high-tech strategic industry enterprise, etc. occurs, and the reason stipulated in the agreement occurs; |
| 6. | In other cases where the Financial Services Commission recognizes the necessity for the KDB or the high-tech strategic industry support company, etc. to exercise voting rights attached to the voting stocks of high-tech strategic industry enterprises, etc. that have received financial support. |
[This Article Added on Nov. 25, 2025]
| Article 28-10 (Financial support for high-tech strategic industry fund) |
| (1) | The requirements for financial support under Article 29-10 of the Act shall be as follows: |
| 1. | Such financial support shall contribute to maintaining and strengthening the industrial competitiveness of high-tech strategic industry enterprises; |
| 2. | The content of the work to be performed by the high-tech strategic industry enterprises, etc., through the relevant financial support shall be feasible and specific; |
| 3. | Other requirements determined upon resolution by the deliberative committee on the operation of the high-tech strategic industry fund under Article 29-11(1) (hereinafter referred to as "deliberative committee on the operation of the high-tech strategic industry fund") shall be met. |
| (2) | Details concerning the procedures and requirements for financial support, other than those provided in paragraph (1) shall be determined by the resolution of the deliberative committee on the operation of the high-tech strategic industry fund. |
[This Article Added on Nov. 25, 2025]
| Article 28-11 (Composition and operation of deliberative committee on operation of high-tech strategic industry fund) |
| (1) | The members of the deliberative committee on the operation of the high-tech strategic industry fund shall be commissioned by the Chairperson of the Financial Services Commission from among the following persons; provided, a person who falls under any subparagraph of Article 7 of the Special Act on the Management of Public Funds shall not become a member: <Amended on Dec. 30, 2025> |
| 1. | Two persons recommended by the competent Standing Committee of the National Assembly; |
| 2. | One person recommended by the Minister of Economy and Finance; |
| 3. | One person recommended by the Minister of Science and ICT; |
| 4. | One person recommended by the Minister of Trade, Industry and Resources; |
| 5. | One person recommended by the Minister of SMEs and Startups; |
| 6. | One person recommended by the Chairperson of the Financial Services Commission; |
| 7. | One person recommended by the chairperson of the Korea Chamber of Commerce and Industry; |
| 8. | One person designated by the Chairperson from among executive officers and employees of KDB. |
| (2) | The chairperson of the deliberative committee on the operation of the high-tech strategic industry fund shall be elected by and from among its members. |
| (3) | Committee members shall hold office for a term of 2 years and may be commissioned consecutively for further terms. |
| (4) | Where a vacancy occurs in Committee members, a new Committee member shall be commissioned, and his or her term of office shall be the remaining period of his or her predecessor's term of office. |
| (5) | Article 28(2) through (7) shall apply mutatis mutandis to the operation of the deliberative committee on the operation of the high-tech strategic industry fund. In such cases, "deliberative committee" shall be construed as "deliberative committee on the operation of the high-tech strategic industry fund." |
[This Article Added on Nov. 25, 2025]
| Article 29 (Methods for distributing dividends in kind) |
| (1) | Where KDB intends to distribute part of its net profits from settlement of accounts as dividends in kind pursuant to Article 31(3) of the Act, it shall do so with the contributions in kind to KDB. |
| (2) | Article 62 of the State Property Act shall apply mutatis mutandis to the value computation of dividends in kind under paragraph (1). |
CHAPTER V CRITERIA AND SUPERVISION FOR SOUND MANAGEMENT
| Article 30 (Supervision for sound management) |
| (1) | The Financial Services Commission shall exercise supervision over KDB to secure its sound management in accordance with Article 34 of the Act and this Chapter; provided, business operations specified in Article 18(2)7 of the Act shall be excluded herefrom. |
| (2) | The Financial Services Commission may determine detailed matters necessary to exercise supervision under paragraph (1). |
| Article 31 (Ceiling on credit extension to same borrower) |
| (1) | KDB may not extend credit (referring to credit granting defined under Article 2(1)7 of the Banking Act; hereafter in this Chapter the same shall apply) in excess of 25/100 of its equity capital (referring to equity capital defined under Article 2(1)5 of the Banking Act; hereafter in this Chapter the same shall apply) to the same individual, juristic person, or a person belonging to the same enterprise group (referring to the enterprise group defined under subparagraph 2 of Article 2 of the Monopoly Regulation and Fair Trade Act) as such individual or juristic person (hereinafter referred to as "same borrower"); provided, the same shall not apply to any of the following cases: <Amended on Dec. 30, 2025> |
| 1. | Where an additional credit is extended to a company for which rehabilitation procedures are under way in accordance with the Debtor Rehabilitation and Bankruptcy Act, or management normalization of which is in progress in a joint effort by financial institutions as part of corporate restructuring, etc.; |
| 2. | Where an additional credit is extended to a person who acquires a company falling under subparagraph 1 in compliance with acquisition agreement; |
| 3. | Where the ceiling on the credit extension referred to in the main sentence above is exceeded due to any of the following causes, in spite of the absence of any additional credit extension: |
| a. | Where the amount of money converted into won currency is increased by the fluctuation of exchange rate; |
| b. | Where the equity capital of KDB is decreased; |
| c. | Where any alteration is made in the constitution of the same borrower; |
| d. | Where any merger or any transfer or taking over of business is made among the enterprises to which are extended credit; |
| e. | Where there exists any compelling cause, such as the sudden change in economic conditions, which is recognized by the Financial Services Commission; |
| 4. | Where any credit is extended to an electric source development business entity in accordance with the electric source development business execution plan under the Electric Power Source Development Promotion Act; |
| 5. | Where it is necessary to implement an industrial policy, such as infrastructure facility business, or to stabilize national life, which is recognized by the Financial Services Commission after consulting with the Minister of Economy and Finance; |
| 6. | Any other case deemed necessary by the Financial Services Commission to accomplish the objectives for establishment of KDB. |
| (2) | Where the ceiling on credit extension referred to in the main sentence of paragraph (1) is exceeded due to such cause as provided for in paragraph (1)3, it shall be adjusted to suit the ceiling within one year from the date the ceiling is exceeded; provided, in the following cases, the said period may be extended by the Financial Services Commission to a certain time: |
| 1. | Where it is impracticable to collect the extended credit within the said period because the deadline for the collection has yet to come; |
| 2. | Where the stabilization of management of a person who is extended credit may be materially impaired, if any cause falling under paragraph (1)3a or b continues to exist in the long term and the extended credit is collected; |
| 3. | Where the Financial Services Commission deems that the soundness of assets of KDB would not be materially impaired even if the state of excess of the ceiling continues for a certain period, which is similar to any causes referred to in subparagraphs 1 and 2. |
| Article 32 (Ceiling on credit extension to same individual or juristic person) |
| (1) | KDB may not extend credit in excess of 20/100 of its equity capital to the same individual or juristic person, respectively. |
| (2) | The sum total of a large amount of credit extension of KDB (referring to where the amount of credit extension to the respective same borrowers exceeds 10/100 of the equity capital of KDB) may not exceed five times the equity capital. |
| (3) | The proviso to Article 31(1), each subparagraph of the same paragraph, and paragraph (2) of the same Article shall apply mutatis mutandis to paragraphs (1) and (2). |
| Article 33 (Restrictions on investments in another juristic person) |
| (1) | KDB may not acquire stocks in excess of 15/100 of the voting stocks (including contribution quota; hereafter in this Article this shall apply) issued by another juristic person; provided, this shall not apply to the following cases: <Amended on Apr. 20, 2015; Oct. 23, 2015; Mar. 31, 2020; Aug. 11, 2020; Oct. 21, 2021; Dec. 5, 2023; Jul. 2, 2024> |
| 1. | Where KDB acquires the stocks of another juristic person in consequence of investment in KDB by the Government; |
| 2. | Where KDB acquires stocks in consequence of stock dividend or free issue of new stocks; |
| 3. | Where KDB acquires stocks by the conversion of loans into investments due to corporate restructuring, etc.; |
| 4. | Where KDB acquires stocks in consequence of the exercise of security right; |
| 5. | Where KDB acquires stocks in consequence of the participation in the issue of new stocks to be purchased within the scope of its own existing share; |
| 6. | Where KDB acquires stocks in consequence of converting stock-related bonds, such as bonds with warrants, into stocks; |
| 7. | Where KDB acquires stocks by investment in a company, more than 15/100 of issued voting stocks of which are owned by KDB (hereinafter referred to as "subsidiary company") and which belongs to the category of business determined by the Financial Services Commission. In such cases, the total amount (excluding the amount of investments under subparagraphs 8 and 10) of investments in each subsidiary company shall not exceed 20/100 of the equity capital of KDB; |
| 8. | Where stocks are acquired by investment in venture investment associations defined in subparagraph 11 of Article 2 of the Venture Investment Promotion Act; new technology venture investment associations defined in the Specialized Credit Finance Business Act; specialized investment associations defined in the Act on Special Measures for Strengthening Competitiveness of Materials, Components, and Equipment Industries and Stabilizing Supply Chain Stability; corporate restructuring associations registered pursuant to Article 15 of the Industrial Development Act (referring to the Act before being wholly amended by the Industrial Development Act (Act No.9584)); an institutional private equity fund for improving corporate structure under Article 20 of the Industrial Development Act; a private equity fund under Article 9(19) of the Financial Investment Services and Capital Markets Act; |
| 9. | Where KDB acquires stocks by investment in venture businesses under the Special Act on the Promotion of Venture Businesses or small and medium enterprises under the Framework Act on Small and Medium Enterprises; |
| 10. | Where it is necessary to achieve the objectives for establishment of KDB, which is approved by the Financial Services Commission. |
| (2) | KDB shall not perform the following activities in doing business with its subsidiary companies: |
| 1. | Extending credit to its subsidiary companies in excess of the ceiling determined by the Financial Services Commission; |
| 2. | Extending credit by taking the stocks of its subsidiary companies as security; |
| 3. | Extending credit in order to solicit for the purchase of the stocks of its subsidiary companies. |
| Article 34 (Restrictions on holding of securities) |
KDB shall not engage in any of the following activities:
| 1. | Holding stocks or securities with a maturity of more than three years in excess of 60/100 of its equity capital; provided, this shall not include the following securities: |
| a. | Stocks underwritten in accordance with Article 18(2)2 of the Act; |
| b. | Bonds issued by the State, local governments, or special corporations under any special Acts; |
| c. | Monetary stabilization bonds issued by the Bank of Korea; |
| d. | Bonds issued by the Fund under the State Finance Act; |
| e. | Securities acquired through investment by the Government; |
| 2. | Owning real estate, other than real estate for business use; provided, this shall not include the acquisition of real estate through the exercise of security right, such as mortgages; |
| 3. | Owning real estate for business in excess of 60/100 of its equity capital; |
| 4. | Loaning funds to executives or employees of KDB or its subsidiary companies; provided, this shall not include small-size loaning determined by the Financial Services Commission. |
| Article 35 (Disposal of assets for non-business use) |
Where KDB acquires through the exercise of security right any assets the acquisition or ownership of which is prohibited under this Decree, it shall dispose of them as prescribed by the Financial Services Commission.
| Article 36 (Building of risk management system) |
KDB shall prepare business conduct standards and procedures to properly manage various risks which might exist in all process of management and shall build and operate a risk management system to systematically manage assets and debts, etc.
| Article 37 (Accounting standards) |
The accounting of KDB shall be conducted in accordance with the accounting standards under Article 5(1)1 of the Act on External Audit of Stock Companies and the bank-related accounting standards determined by the Financial Services Commission. <Amended on Oct. 30, 2018>
| Article 38 (Scope of supervision over soundness of management) |
The supervision and inspection of the soundness of management by the Financial Services Commission shall be conducted only with respect to the matters which are not subject to the accounting inspection under Article 22 of the Board of Audit and Inspection Act and to the supervision of duties under Article 24 of the same Act.
| Article 39 (Guidance of sound management) |
| (1) | KDB shall regularly grade its holding assets according to their soundness to accumulate and hold appropriate bad debt allowances; provided, the claims on the State, local governments, or government-invested institutions shall be excluded from the claims subject to the establishment of bad debt allowances. |
| (2) | KDB shall observe the asset management standards determined by the Financial Services Commission, such as the ratio of equity capital to assets weighted by risk pursuant to the standards of the Bank for International Settlements and the ratio of current assets expressed in won currency to current liabilities expressed in won currency. |
| (3) | Where the Financial Services Commission deems that the soundness of management of KDB might be severely impaired for failure to meet the standards of sound management under this Chapter, the Commission may request KDB to take necessary measures to correct it. |
| Article 40 (Public announcement of management) |
KDB shall publicly disclose major information and data on the status of its management, as determined by the Financial Services Commission.
| Article 41 (Inspection of documents) |
| (1) | Where the Financial Services Commission entrusts the Governor of the Financial Supervisory Service with the inspection specified in Article 36(1) of the Act pursuant to Article 36(2) of the Act, it shall require him or her to pre-report the specific purpose, scope, etc. of the inspection to be conducted. |
| (2) | Where the Governor of the Financial Supervisory Service completes the inspection entrusted pursuant to paragraph (1), he or she shall report the results thereof to the Financial Services Commission without delay. |
CHAPTER VI SUPPLEMENTARY PROVISIONS
| Article 42 (Management of personally identifiable information) |
The Financial Services Commission (including a person to whom the power of the Financial Services Commission has been delegated pursuant to Article 36(2) of the Act) may manage data which includes a resident registration number, passport number, driver’s license number, or alien registration number referred to in Article 19 of the Enforcement Decree of the Personal Information Protection Act in extenuating circumstances in order to conduct any of the following affairs:
| 1. | Affairs concerning appointment or dismissal of executives referred to in Article 13 of the Act; |
| 2. | Affairs concerning supervision or orders referred to in Article 34(1) of the Act as well as follow-up measures, etc. therefor; |
| 3. | Affairs concerning measures, etc. referred to in Article 34(3) through (5) of the Act; |
| 4. | Affairs concerning a request for submission of reports or inspection referred to in Article 36(1) of the Act as well as follow-up measures, etc. therefor. |
| Article 43 (Procedures for application for authorization) |
The Financial Services Commission may determine procedures necessary for application for authorization, supervision, etc. prescribed in the Act.
ADDENDA <Presidential Decree No. 25945, Dec. 30, 2014>
Article 1 (Enforcement date)
This Decree shall enter into force on the date the merger is registered under Article 4(6) of the Addenda to the Korea Development Bank Act (Act No. 12663).
Article 2 (Repeal of other statutes)
The Enforcement Decree of the Korea Finance Corporation Act is hereby repealed.
Article 3 (Special cases concerning ceiling on credit extension)
Notwithstanding the amended provisions of the main sentence of Article 31(1) and Article 32(1), "25/100" in the amended provisions of the main sentence of Article 31(1) and "20/100" in the amended provisions of Article 32(1) shall be deemed "30/100" and "25/100," respectively, for five years from the date this Decree enters into force.
Article 4 Omitted.
Article 5 (Relation with other statutes)
| (1) | Any citation of any provisions of the former Enforcement Decree of the Korea Development Bank Act in any other statute, as at the time this Decree enters into force, shall be deemed a citation of the corresponding provisions of this Decree in lieu of the former provisions, if such provisions corresponding thereto exist in this Decree. |
| (2) | Any citation of the former Enforcement Decree of the Korea Finance Corporation Act in any other statute, as at the time this Decree enters into force, shall be deemed a citation of this Decree in lieu of the former provisions. |
ADDENDA <Presidential Decree No. 26205, Apr. 20, 2015>
Article 1 (Enforcement date)
This Decree shall enter into force on April 29, 2015.
Article 2 Omitted.
Article 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 8 Omitted.
Article 9 Omitted.
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 9 Omitted.
Article 10 Omitted.
Article 11 Omitted.
ADDENDA <Presidential Decree No. 30586, Mar. 31, 2020>
Article 1 (Enforcement date)
This Decree shall enter into force on April 1, 2020. (Proviso Omitted.)
Articles 2 through 8 Omitted.
Article 9 Omitted.
Article 10 Omitted.
ADDENDA <Presidential Decree No. 30677, May 12, 2020>
Article 1 (Enforcement date)
This Decree shall enter into force on the date of its promulgation.
Article 2 (Succession of rights and obligations concerning the operation of the key industry stabilization fund and disposal of remaining assets)
| (1) | When the operation period of the key industry stabilization fund managed by the KDB ends, the KDB shall promptly prepare a plan including the following matters (hereinafter referred to as the "liquidation plan") and obtain approval from the deliberative committee on the operation of the key industry stabilization fund. |
| 1. | The content of rights and obligations related to the operation of the key industry stability fund existing as of the termination date of the operation period of the key industry stability fund, a list of remaining assets, and the financial statement; |
| 2. | Timing, procedures, and methods for the State succession of rights and obligations concerning the operation of the key industry stabilization fund; |
| 3. | Timing, procedures, and methods for the transfer of remaining assets of the key industry stabilization fund to the State Treasury. |
| (2) | KDB shall transfer the rights and obligations related to the operation of the key industry stabilization fund to the State in accordance with the liquidation plan and shall vest the remaining assets in the State Treasury. |
| (3) | KDB shall prepare a settlement report without delay after taking measures under paragraph (2) and report it to the deliberative committee on the operation of the key industry stabilization fund. |
ADDENDA <Presidential Decree No. 30934, Aug. 11, 2020>
Article 1 (Enforcement date)
This Decree shall enter into force on August 12, 2020.
Articles 2 through 5 Omitted.
ADDENDUM <Presidential Decree No. 31380, Jan. 5, 2021>
This Decree shall enter into force on the date of its promulgation. (Proviso Omitted.)
ADDENDA <Presidential Decree No. 32091, Oct. 21, 2021>
Article 1 (Enforcement date)
This Decree shall enter into force on October 21, 2021.
Articles 2 through 5 Omitted.
Article 6 Omitted.
ADDENDUM <Presidential Decree No. 33899, Dec. 5, 2023>
Article 1 (Enforcement date)
This Decree shall enter into force on December 14, 2023.
Article 2 Omitted.
ADDENDUM <Presidential Decree No. 34657, Jul. 2, 2024>
Article 1 (Enforcement date)
This Decree shall enter into force on July 10, 2024 (Proviso Omitted.)
Article 2 Omitted.
Article 3 Omitted.
ADDENDUM <Presidential Decree No. 35228, Jan. 21, 2025>
This Decree shall enter into force on January 31, 2025.
ADDENDA <Presidential Decree No. 35607, Jun. 25, 2025>
This Decree shall enter into force on the date of its promulgation.
ADDENDUM <Presidential Decree No. 35811, Oct. 1, 2025>
This Decree shall enter into force on the date of its promulgation; provided, among Presidential Decrees amended pursuant to this Decree, the amended provisions of Presidential Decrees which were promulgated before this Decree enters into force but the enforcement dates of which have not arrived shall enter into force on the enforcement dates of the relevant Presidential Decrees, respectively.
ADDENDA <Presidential Decree No. 35873, Nov. 25, 2025>
Article 1 (Enforcement date)
This Decree shall enter into force on December 10, 2025.
Article 2 (Succession of rights and obligations concerning the operation of the high-tech strategic industry fund and disposal of remaining assets)
| (1) | When the operation period of the high-tech strategic industry fund managed by KDB ends, KDB shall promptly prepare a plan including the following matters (hereinafter in this Article referred to as the "liquidation plan") and obtain approval from the deliberative committee on the operation of the high-tech strategic industry fund. |
| 1. | The content of rights and obligations related to the operation of the high-tech strategic industry fund existing as of the termination date of the operation period of the high-tech strategic industry fund, a list of remaining assets, and the financial statement; |
| 2. | Timing, procedures, and methods for the State succession of rights and obligations concerning the operation of the high-tech strategic industry fund; |
| 3. | Timing, procedures, and methods for the transfer of remaining assets of the high-tech strategic industry fund to the State Treasury. |
| (2) | KDB shall transfer the rights and obligations related to the operation of the high-tech strategic industry fund to the State in accordance with the liquidation plan and shall vest the remaining assets in the State Treasury. |
| (3) | KDB shall prepare a settlement report without delay after taking measures under paragraph (2) and report it to the deliberative committee on the operation of the high-tech strategic industry fund. |
ADDENDA <Presidential Decree No. 35947, Dec. 30, 2025>
Article 1 (Enforcement date)
This Decree shall enter into force on January 2, 2026; provided, the amended provisions of Presidential Decree which have been promulgated before this Decree enters into force, but the enforcement date of which has not arrived, among amended provisions of Presidential Decree under Article 6 of the Addenda, shall enter into force on the date the relevant Presidential Decree enters into force, respectively.
Articles 2 through 5 Omitted.
Article 6 Omitted.