| (1) | Where a financial institution falls under any of the following subparagraphs, the Financial Services Commission shall, on the recommendation of the Governor of the Financial Supervisory Service, order executive officers of the relevant financial institution to suspend the execution of their business and may appoint management supervisors to conduct the business on behalf of such executive officers or recommend a general meeting of stockholders to dismiss such executive officers: <Amended on Mar. 12, 2010> |
| 1. | Where the financial institution fails to comply with any request or order made or issued under Article 10 (1); |
| 2. | Where the financial institution fails to perform as order under Article 12 (3). |
| (2) | Where an insolvent financial institution falls under any of the following subparagraphs, the Financial Services Commission may make administrative dispositions, such as a decision on the transfer of contracts, suspension of business for a period of not more than six months against the insolvent financial institution, and revocation of authorization, permission, etc. for its business: Provided, That in cases of any insolvent financial institution falling under subparagraph 4, it may make an administrative disposition only to suspend its business for up to six months, and in cases of any insolvent financial institution not falling under subparagraph 1 or 2, the same shall not apply: <Amended on Mar. 12, 2010> |
| 1. | Where the insolvent financial institution fails to or is unable to perform as ordered under Article 10 (1) or 12 (3); |
| 2. | Where the insolvent financial institution fails to merge under an order or arrangement issued or made under Articles 10 (1) and 11 (3); |
| 3. | Where the insolvent financial institution is deemed unable to perform any order issued or to merge with another financial institution as ordered under Article 10 (1) because its liabilities significantly exceed its assets; |
| 4. | Where the insolvent financial institution is recognized as undoubtedly infringing on depositors’ rights and interests and disrupts order in credit after it has been unable to pay claims, such as deposits, and repay borrowings due to its abruptly destabilized financial standing. |
| (3) | Deleted. <May 24, 1999> |
| (4) | A financial institution shall be dissolved if authorization, permission, etc. for its business is revoked under paragraph (2). <Amended on Mar. 12, 2010> |
| (5) | Where the Financial Services Commission decides to transfer contracts pursuant to paragraph (2), it shall determine the scope of contracts to be transferred, terms for the transfer of contracts, and the financial institution to which contracts are transferred. In such cases, it shall in advance obtain the consent of the board of directors of the financial institution to which the contracts are to be transferred. <Amended on Mar. 12, 2010> |
| (6) | The transfer of contracts according to a decision under paragraph (2) shall not require resolution by the board of directors, and a general meeting of stockholders, of an insolvent financial institution to transfer contracts, notwithstanding the provisions of related Acts and the articles of incorporation. <Amended on Mar. 12, 2010> |
| (7) | Where the Financial Services Commission decides the transfer of contracts pursuant to paragraph (2), it shall appoint a management supervisor for the insolvent financial institution. <Amended on Mar. 12, 2010> |
| (8) | An insurance company for which the Financial Services Commission has decided the transfer of contracts shall be deemed to have been granted authorization on dissolution, consolidation, etc. by the Financial Services Commission pursuant to Article 139 of the Insurance Business Act. <Amended on Mar. 12, 2010> |
| (9) | The provisions of Article 5 shall apply mutatis mutandis where the financial institution to which contracts are transferred from an insolvent financial institution pursuant to paragraph (2) performs procedures, such as resolution of a general meeting of stockholders, request for stock purchase, and creditor’s filing of objections in connection with the transfer of contracts. <Amended on Mar. 12, 2010> |
[Title Amended on Mar. 12, 2010]