| (1) | "Profit margins on any of the savings insurances specified by Presidential Decree" in the main sentence of Article 16(1)9 of the Act, means the amounts calculated by subtracting paid-in insurance premiums or paid-in mutual-aid contributions (hereafter in this Article referred to as "insurance premiums") from the insurance or mutual-aid proceeds receivable upon the expiration of an insurance contract or during the insurance contract period, or from the refund receivable upon the termination of an insurance contract before the expiration thereof (limited to those not receivable for the death, illness, wounds, or any other bodily injuries or for the destruction of or damage to assets; hereafter in this Article referred to as "insurance proceeds"): <Amended on Feb. 3, 2017; Feb. 13, 2018> |
| (2) | "Insurance contracts" in paragraph (1) means any of the following contracts: <Amended on Dec. 30, 1995; Dec. 31, 1998; Mar. 28, 2000; Dec. 29, 2000; Feb. 19, 2005; Aug. 19, 2005; Feb. 9, 2006; Jul. 24, 2012; Feb. 15, 2013; Jun. 11, 2013> |
| 1. | Life insurance contracts or accident insurance contracts provided for in the Insurance Business Act; |
| 2. | Life mutual-aid contracts or accident mutual-aid contracts administered pursuant to relevant Acts by any of the following institutions: |
| a. | Deleted; <Feb. 15, 2013> |
| b. | The National Federation of Fisheries Cooperatives and cooperatives incorporated under the Fisheries Cooperatives Act; |
| c. | Deleted; <Dec. 31, 1999> |
| d. | The National Credit Unions Federation of Korea incorporated under the Credit Unions Act; |
| e. | The Community Credit Cooperatives Federation incorporated under the Community Credit Cooperatives Act; |
| 3. | Postal insurance contracts established under the Postal Savings and Insurance Act. |
| (3) | "An insurance that meets the requirements prescribed by Presidential Decree" in Article 16(1)9a of the Act, means any of the following insurance contracts from the time of signing the insurance contract: <Added on Feb. 3, 2017> |
| 1. | A savings insurance contract for which the sum of insurance premiums to be paid by each policy holder (referring to the sum of insurance premiums of all saving insurance contracts signed by a policy holder (excluding savings insurance contracts under subparagraph 2 and life pension insurance contracts under paragraph (4)) does not exceed the following amounts; provided, the same shall not apply where the period from the date of initial payment (hereafter referred to as "date of initial payment" in this Article) to the date of expiration or early termination is at least ten years, but paid-in insurance premiums shall be paid in installments in the form of annuities during a fixed period before the lapse of ten years from the date of payment of the initial insurance premium: |
| a. | In cases of an insurance contract signed on or before March 31, 2017: 200 million won; |
| b. | In cases of an insurance contract signed on or after April 1, 2017: 100 million won; |
| 2. | A savings insurance contract in monthly installments, which meets the following requirements: |
| a. | The period of payment from the date of initial payment for the savings insurance contract in monthly installments shall be at least five years; |
| b. | The basic insurance premiums payable monthly from the date of initial payment shall be in equal installments (including where the basic insurance premiums may be increased by not more than one time the basic insurance premiums initially agreed), and the period of advance payment of the basic insurance premiums shall not exceed six months; |
| c. | The sum of insurance premiums to be paid monthly by each policy holder (referring to the sum of monthly paid-in insurance premiums, including basic insurance premiums of all insurance contracts in monthly installments signed by each policy holder (excluding insurance contracts specified by Decree of the Ministry of Economy and Finance, among insurance contracts under which the amount refundable at maturity does not exceed paid-in insurance premiums) and additionally paid insurance premiums, as calculated by the method prescribed by Decree of the Ministry of Economy and Finance), shall not exceed 1,500,000 won (limited to insurance contracts signed on or after April 1, 2017). |
| (1) | "Gains, as prescribed by Presidential Decree" in subparagraph 2c of Article 119 of the Act means the gains generated from the repurchases, etc. of collective investment securities under Article 150-7; provided, any of the following gains or incomes shall be excluded herefrom: <Amended on Feb. 28, 2023> |
| 1. | Insurance proceeds, profits, etc. shall be paid to the policy holder in annuities from the time when the policy holder attains the age of 55 years after the lapse of the contract period for the payment of insurance premiums until death; |
| 2. | Insurance proceeds, profits, etc. shall not be paid in any form other than annuities; |
| 3. | Upon death (referring to the expiration of the period of guarantee, where the period during which the payment of insurance proceeds, profits, etc. in annuities is guaranteed (hereafter in this Article, referred to as "period of guarantee") within the limit of the life expectancy by gender and by age according to the statistical tables approved and publicly notified by the Commissioner of the Statistics Korea pursuant to Article 18 of the Statistics Act (a figure below the decimal point shall be cut off; hereafter in this Article, referred to as "life expectancy")), the insurance contract and the resources for the pension shall be extinguished; |
| 4. | The policy holder, the insured, and the beneficiary shall be the same person, and the insurance contract shall not be terminated early before the date of death after the initial payment of annuities commences; |
| 5. | The amount of annuity receivable annually (the amount changed according to a change of the interest rate after the receipt of pension commences and the amount of annuity to be received after deferred shall not be included herein) shall not exceed the amount calculated by the following formula: |
Assessed amount of the pension account as at the commencement date of receipt of pension/Life expectancy as at the commencement date of receipt of pension x 3
| (5) | If an insurance contract under paragraph (3) or (4) ceases to meet the relevant requirements after it is signed, it shall be excluded from the insurance contracts referred to in paragraphs (3) and (4); provided, if an insurance contract under paragraph (3)2 meets the requirement under paragraph (3)1, although it ceases to meet the relevant requirements after it is signed, the insurance contract shall be deemed qualified as an insurance contract under paragraph (3)1, while an insurance contract under paragraph (4) shall be deemed qualified as an insurance contract under any subparagraph of paragraph (3), even where it ceases to meet the relevant requirements after it is signed, but meets the requirement in any subparagraph of paragraph (3). <Added on Feb. 3, 2017> |
| (6) | When any of the following changes (with respect to any previous insurance agreement, limited to the change under subparagraph 3) is made to an insurance agreement under paragraph (3)1 and 2 and an insurance agreement entered into before February 15, 2013 (referring to an insurance agreement subject to application of former Article 25(1) pursuant to Article 35 of the Addenda to the Enforcement Decree of the Income Tax Act (Presidential Decree No. 24356); hereafter referred to as "previous insurance agreement" in this paragraph), the date of change shall be the first payment date of the relevant insurance agreement; provided, if a change referred to in subparagraph 1 or 2 is made to an insurance contract under paragraph (3)2, the period of installment payment of premiums until the date of amendment of the contract shall be included in the period of installment payment under paragraph (3)2b, and the premiums already paid before the amendment of the contract shall be deemed to meet the requirements in paragraph (3)2b even after the amendment of the contract: <Added on Feb. 15, 2013; Jun. 11, 2013; Feb. 21, 2014; Feb. 3, 2017> |
| 1. | Where the name of policyholder is changed (excluding the change due to death); |
| 2. | Where an indemnity insurance is changed to a savings insurance; |
| 3. | Where a standard insurance premium is increased by more than 100% of the initially contracted standard insurance premium. |
| (7) | Where an insurance contract is amended under paragraph (6), the method of calculating the sum of insurance premiums under paragraph (3)1 and 2c shall be prescribed by Decree of the Ministry of Economy and Finance. <Added on Feb. 3, 2017> |
| (8) | In calculating an insurance premium under paragraph (1), dividends and other money similar thereto (hereafter referred to as "dividends, etc." in this paragraph) paid under an insurance contract during an insurance contract period shall be deducted from paid-up insurance premium. In cases of offsetting an insurance premium with dividends, etc., the insurance premium shall be deemed paid with dividends, etc. from an insurance contract. <Amended on Feb. 3, 2017> |