CHAPTER I GENERAL PROVISIONS
법령 이단보기
| Article 1 (Purpose) |
The purpose of this Act is to facilitate the ordinary corporate restructuring under the market functions by enhancing the accounting transparency of enterprises and setting the systems for efficiently managing credit risks by the financial institutions, while prescribing matters necessary to make the corporate restructuring facilitated swiftly and smoothly.
법령 이단보기
| Article 2 (Definitions) |
The definitions of terms used in this Act shall be as follows:
| 1. | The term "creditor financial institution" means a person who extends credits to the relevant enterprise and falls under any of the following items: |
| (j) | Any mutual savings bank established under the Mutual Savings Banks Act; |
| (l) | The Korea Asset Management Corporation established under the Act on the Efficient Disposal of Non-Performing Assets, etc. of Financial Institutions and the Establishment of the Korea Asset Management Corporation; |
| (n) | Any other person who runs the banking business under applicable Acts, as prescribed by the Presidential Decree; |
| 2. | The term "creditor bank" means a financial institution carrying on the banking business regularly and systematically, from among the creditor financial institutions; |
| 3. | The term "principal creditor bank" means a leading creditor bank of the relevant enterprise (where there exists no leading creditor bank, the bank having the largest amount of credit extension). In such case, matters concerning the selection and alteration, etc. of the principal creditor bank shall be determined by the Financial Supervisory Commission; |
| 4. | The term "enterprise" means a company having obtained any credit extension from the creditor financial institution, of which the total sum is not less than 50 billion won (hereafter in this subparagraph, referred to as the "standard amount"). In such case, where the total sum of credit extension amount becomes short of the standard amount due to the credit readjustment, repayment of indebtedness, etc., after being deemed to be an enterprise with an insolvency sign under subparagraph 5, it shall be deemed to be an enterprise; |
| 5. | The term "enterprise with insolvency signs" means an enterprise deemed, through the customer enterprise' credit risk assessment under Article 9, by the principal creditor bank or the creditor banks' council under Article 24 (hereinafter referred to as the "council") to be difficult to repay the indebtedness from the financial institution without any fund assistance from outside or any separate borrowing (excluding the borrowing occurring in the ordinary financial transactions); |
| 6. | The term "credit extension" means those falling under each of the following items, and as determined by the Financial Supervisory Commission: |
| (b) | Purchase of bills and bonds; |
| (e) | Disbursement of a substitute payment following payment guarantee; |
| (f) | Trade that may cause any losses to the financial institution when the counterpart of trade becomes insolvent; and |
| (g) | If it is not the case where the financial institution has directly conducted the trade falling under items (a) through (f), the trade that may substantially bring about the results corresponding thereto; and |
| 7. | The term "credit readjustment" means any adjustment of the retained bonds by the creditor financial institution, by means of the extension of repayment time limit, abatement or exemption of the principal and interests, conversion of loans into investment, and others corresponding thereto. |
법령 이단보기
| Article 3 (Relationship with Other Acts) |
This Act shall be applicable in preference to other Acts that prescribe the corporate restructuring, etc.
CHAPTER II MANAGEMENT OF ENTERPRISE ACCOUNTING INFORMATION AND CREDIT RISKS
법령 이단보기
| Articles 4 through 6 Deleted.<by Act No. 6991, Dec. 11, 2003> |
법령 이단보기
| Article 7 (Request for Furnishing Audit Reports) |
Creditor financial institutions may request the enterprise intending to obtain a credit extension, to furnish the audit reports for the immediately preceding two business years under the Act on External Audit of Stock Companies.
법령 이단보기
| Article 8 Deleted.<by Act No. 6991, Dec. 11, 2003> |
법령 이단보기
| Article 9 (Assessment of Credit Risks) |
| (1) | Creditor banks shall perform the regular assessment of credit risks of customer enterprises, and take the pertinent measures for post management. |
| (2) | The creditor banks shall, for the purpose of the assessment of credit risks and post management under paragraph (1), prepare and operate the standards for regular assessment of enterprise's credit risks and for the post management containing such management index as the profitability, growth factors, soundness, stability, etc. under the guidance of the Financial Supervisory Commission, and notify them to the customer enterprises. |
CHAPTER III RESTRUCTURING OF ENTERPRISE WITH INSOLVENCY SIGNS
법령 이단보기
| Article 10 (Measures against Enterprise with Insolvency Signs) |
| (1) | The principal creditor bank shall take the measures under Article 12 against an enterprise with insolvency signs without delay. |
| (2) | Other creditor banks than the principal creditor bank shall, where they deem that any customer enterprise corresponds to an enterprise with insolvency signs as a result of credit risk assessments under Article 9, request the principal creditor bank to take the measures under paragraph (1) without delay. |
| (3) | Creditor banks shall, where deemed that any customer enterprise does not correspond to an enterprise with insolvency signs as a result of credit risk assessments under Article 9 but it is most likely to become an enterprise with insolvency signs, recommend that the relevant enterprise take measures for business improvement including the self survival plans, etc. |
법령 이단보기
| Article 11 (Assessment by Outside Specialized Agencies) |
| (1) | The principal creditor bank or the council may request an enterprise with insolvency signs to undergo the inspection of assets and liabilities and the assessment on the surviving ability as a going concern, etc. by the outside specialized agencies, such as the accounting firms, selected in consultation with the said enterprise. |
| (2) | Where an enterprise with insolvency signs fails to comply with the request under paragraph (1) without any justifiable grounds, the creditor financial institutions shall not be required to give any credit extension or may suspend it to the relevant enterprise. |
법령 이단보기
| Article 12 (Management of Enterprise with Insolvency Signs) |
| (1) | The principal creditor bank shall, where judged that there exists a possibility of management normalization of an enterprise with insolvency signs as a result of assessment of business plans, etc. furnished by it, without delay commence the management procedures falling under any of the following subparagraphs or take necessary measures for the commencement of such procedures through applying directly to a court or requesting the relevant enterprise to make such an application: |
| 1. | Joint management by the creditor financial institutions through the council; |
| 2. | Joint management by the creditor banks through the creditor banks' council under Article 22 (1); |
| 3. | Management by the principal creditor bank; |
| (2) | The principal creditor bank shall, where judged that an enterprise with insolvency signs has no possibility of management normalization or where no procedure among those falling under any subparagraph of paragraph (1) has been initiated (including the case of suspension after commencing the management procedures), take without delay the measures falling under any of the following subparagraphs: Provided, That this shall not apply to the cases where judged that the expenses required for it exceed the profit to be gained by the creditor financial institutions, where judged that the recovery of claims is possible by other means, or where any measure falling under any of the following subparagraphs has been taken under other causes: |
| 1. | A request to the relevant enterprise for a dissolution or liquidation; and |
| 2. | Where judged that there exist in the relevant enterprise any causes for a bankruptcy under the Bankruptcy Act, a request for bankruptcy and a request for making an application for bankruptcy. |
| (3) | Notwithstanding the provisions of paragraphs (1) and (2), the creditor financial institutions may apply for a company reorganization procedure under the Company Reorganization Act. In such case, if there exists a decision on commencing a company reorganization procedure, the management procedures under paragraph (1) 1 through 3 shall be deemed to have been suspended. |
| (4) | The principal creditor bank or the council may, before taking measures under paragraph (1) or (2), facilitate the management normalization by selling a third party the stocks acquired through a conversion into investment or as a security, etc., or entrusted for disposal. In such case, the measures under paragraph (1) or (2) shall not be required to be taken if the stocks are sold to the third party. |
| (5) | The principal creditor bank shall, where an enterprise with insolvency signs falls under the proviso of paragraph (2), notify the causes therefor to the Korea Federation of Banks established under Article 32 of the Civil Act (hereinafter referred to as the "Federation of Banks") so as to let other financial institutions know of them. |
| (6) | With respect to whether the management procedures under paragraph (1) 2 and 3 have commenced or their details, etc., the whole or part of them may be closed to the public. |
법령 이단보기
| Article 13 (Joint Management by Creditor Financial Institutions) |
| (1) | Creditor financial institutions may, through a resolution by the council, commence the procedures for joint management by creditor financial institutions under Article 12 (1) 1. |
| (2) | Any person requesting a convocation of the council for commencing the joint management procedures under paragraph (1) shall provide a prima facie proof that the relevant enterprise with insolvency signs meets the requirements under Article 12 (1). In such case, where there exists any inevitable cause such as requiring the inspection of assets and liabilities under Article 11, a prima facie proof may be provided not later than the expiry of deferment period for exercising the claims under Article 14 through a resolution by the council. |
| (3) | The council may, where judged necessary for securing the claims, request the relevant enterprise to obtain approval of the person designated by the council (hereinafter referred to as the "fund manager") from the date of commencing the joint management procedures under paragraph (1) on the implementation of major business such as the fund management, etc., and where the relevant enterprise fails to comply with it without any justifiable grounds, or carries out any business without approval of the fund manager, it may suspend the deferment of exercising the claims or the joint management procedures against the relevant enterprise, notwithstanding the provisions of Article 14. |
| (4) | The qualification requirements, authorities and responsibilities, etc. for the fund manager shall be prescribed by the Presidential Decree. |
법령 이단보기
| Article 14 (Deferment of Exercising Claims) |
| (1) | The principal creditor bank shall, where it convenes the council for commencing the joint management procedures of the creditor financial institutions under Article 12 (1), notify the Governor of the Financial Supervisory Service and the creditor financial institutions thereof. In such case, the Governor of the Financial Supervisory Service may request that any exercising of claims (including the exercising of any security, but excluding referring to the clearing for any interruption of prescription) is to be deferred from the date of notifying the creditor financial institutions of the convocation of the council to the date of first convocation of the council. |
| (2) | Creditor financial institutions may, in view of the size of the enterprise in question and the number of the creditor financial institutions, etc., determine the deferment period of exercising the claims at the first council convened within 7 days from the convocation notice within the limit of not exceeding one month from the date of commencing the deferment (3 months in case where the inspection of assets and liabilities is required), and extend such a period just for once within the limit of one month. |
| (3) | Where the consultative fails to determine the deferment period of exercising the claims under paragraph (2), or fails to fix the plans for management normalization of the enterprise in question under Article 15 (1) not later than the expiry of the deferment period of exercising the claims, the joint management procedures of the creditor financial institutions against the enterprise shall be deemed to have been suspended from the next date. |
법령 이단보기
| Article 15 (Agreement for Executing Management Normalization Plans) |
| (1) | The council shall conclude with an enterprise with insolvency signs, for which the joint management procedures under Article 13 have been commenced, an agreement for executing the plans for normalizing the management of the relevant enterprise (hereinafter referred to as the "plans for management normalization") (hereinafter referred to as the "agreement") through a resolution within the deferment period of exercising the claims under Article 14. |
| (2) | The agreement under paragraph (1) shall contain the following matters for normalizing the management of the relevant enterprise: |
| 1. | Level of management objectives of the relevant enterprise such as turnover, and operating profits; |
| 2. | Definite execution plans containing the restructuring plans such as the personnel, organization, wage adjustment of the relevant enterprise and plans for improving the financial structures such as the issuance of new stocks, the decrease of capital necessary for the achievement of objective levels under subparagraph 1. In such case, the execution period of such plans shall be the period of not more than one year, but may be extended by a resolution of the council; |
| 3. | Execution plans to be carried out additionally by the relevant enterprise, such as the adjustment of gross personnel expenses, in case where the objective levels under subparagraph 1 are not to be attained; |
| 4. | Consent letter for matters requiring the consent of interested parties, such as the trade union or stockholders of the relevant enterprise in connection with matters under subparagraphs 2 and 3; |
| 5. | Plans for readjusting the claims and for credit extension devised in order to support the liquidity required for the management normalization of the relevant enterprise; |
| 6. | Definite plans in case where normalizing the management by means of sale to a third party, entrustment of management, establishment of a corporate restructuring investment company under the Corporate Restructuring Investment Companies Act, etc.; and |
| 7. | Such other matters prescribed by the Presidential Decree as necessary for the management normalization of an enterprise. |
| (3) | Creditor financial institutions shall not grant an additional credit extension to an enterprise with insolvency signs prior to a conclusion of an agreement: Provided, That this shall not apply to the case where there exists an urgent need for funds such as the raising of operating funds prior to the conclusion of the agreement for which a resolution is adopted at the council. |
법령 이단보기
| Article 16 (Examination on Executing Agreement) |
| (1) | The principal creditor bank shall quarterly examine the record of executing the agreement. |
| (2) | An enterprise with insolvency signs shall, where the principal creditor bank requests the said enterprise to furnish the reports or data on the business or assets or for the presence and statement, etc. of related persons for the examinations under paragraph (1), comply with it. |
| (3) | The principal creditor bank shall regularly assess and examine whether the joint management of the relevant enterprise is to be continued and the possibility of management normalization of the relevant enterprise on the basis of the results of examinations under paragraph (1), and report to the council thereon. In such case, it shall request the outside specialized agencies not less than once every two years from the date of commencing the joint management procedures to make such assessment. |
법령 이단보기
| Article 17 (Readjustment, etc. of Claims) |
| (1) | Creditor financial institutions may, where judged necessary for the management normalization of an enterprise with insolvency signs, render through a resolution of the council the readjustment of claims or a new credit extension to the relevant enterprise (excluding any alteration in the existing terms for credit extension; hereinafter the same shall apply). In such case, the readjustment of claims shall, in view of the order of the rights, be achieved fairly and with meeting the equity. |
| (2) | A resolution of the council on the readjustment of claims under paragraph (1) shall be valid only with a concurrent vote of the creditor financial institutions having not less than 3/4 of security claims from among the gross security claims of creditor financial institutions (referring to the claims corresponding to the valid security values within the scope of liquidation values of relevant assets; hereinafter the same shall apply). |
법령 이단보기
| Article 18 (Preferential Repayment of New Credit Extension) |
A new credit extension by the creditor financial institutions under Article 17 shall be repaid in preference of the claims of other creditor financial institutions next to the legal security interests.
법령 이단보기
| Article 19 (Interruption of Joint Management Procedures) |
The council shall interrupt the joint management procedures pursuant to a resolution of the council in the following cases:
| 1. | Where the relevant enterprise fails to execute the important matters of the plans for management normalization without any justifiable grounds, or where judged that the plans for management normalization are difficult to be executed, as the result of an examination under Article 16 (1); or |
| 2. | Where judged that the continuance of joint management is inadequate, or where judged that there exists no possibility for management normalization of the relevant enterprise, as the result of an assessment under Article 16 (3). |
법령 이단보기
| Article 20 (Prior Submission of Reorganization Plans) |
| (1) | Where the joint management procedures of creditor financial institutions have been interrupted under Article 19, and where the relevant enterprise or its creditor financial institution applies for the reorganization procedures under Article 30 of the Company Reorganization Act, the principal creditor bank shall submit to the competent court the plans for management normalization or the plans for improvement thereof. |
| (3) | Where the procedures of joint management by creditor financial institutions have been interrupted under Article 19, and where the relevant enterprise applies for the commencement of composition under Article 12 of the Composition Act, the principal creditor bank shall request the relevant enterprise to submit to the competent court the plans for management normalization or the plans for improvement thereof as a condition for composition. |
법령 이단보기
| Article 21 (Examination of Possibility for Management Normalization of Enterprises for Reorganization or Composition) |
| (1) | The principal creditor bank shall examine the actual record, etc. of implementing the reorganization plans or composition conditions against the enterprise in progress of the company reorganization procedures or composition procedures, and regularly valuate or examine not less than once in every year the possibility of the relevant enterprise for management normalization. |
| (2) | The enterprise in progress of the company reorganization procedures or composition procedures shall, where the principal creditor bank requests the relevant enterprise to furnish the report or data on the business or assets or for the presence or statement of the related persons for the examination under paragraph (1), comply with it. |
| (3) | The principal creditor bank shall, where judged that the enterprise for which company reorganization procedures or composition procedures are in progress has no possibility for a management normalization, file without delay an application with the competent court for an abolition of such reorganization procedures or an abolition or cancellation of such composition. |
| (4) | The provisions of Article 12 (2) shall apply mutatis mutandis to the case where the competent court decides on an abolition of reorganization procedures or of composition according to the application under paragraph (3). |
법령 이단보기
| Article 22 (Joint Management by Creditor Banks) |
| (1) | The principal creditor bank may, where deemed that joint management by creditor banks is necessary for restructuring of the enterprise with insolvency signs, establish the creditor banks' council composed of only the creditor banks. |
| (2) | The provisions of Articles 24 through 30, 32, and 33 shall apply mutatis mutandis to the creditor banks' council under paragraph (1). In such case, the term "creditor financial institutions" and "council" shall read as "creditor banks" and "creditor banks' council", respectively. |
| (3) | Where the principal creditor bank commences management by the creditor banks' council under paragraph (1), the provisions of Articles 11, 12 (4), and 13 through 20 shall be applicable mutatis mutandis. In such case, the term "creditor financial institutions" and "council" shall read as "creditor banks" and "creditor banks' council", respectively. |
법령 이단보기
| Article 23 (Management by Principal Creditor Bank) |
| (1) | The principal creditor bank may independently commence the management procedures against the relevant enterprise with insolvency signs in order to normalize the management thereof under Article 12 (1) 3. |
| (2) | The provisions of Articles 15, 16, 17 (1) and 19 shall apply mutatis mutandis to the case where the management procedures by the principal creditor bank commence under paragraph (1). In such case, the term "council" and "joint management" shall read as "principal creditor bank" and "management by the principal creditor bank", respectively. |
CHAPTER IV COUNCIL, ETC. OF CREDITOR FINANCIAL INSTITUTIONS
법령 이단보기
| Article 24 (Council of Creditor Financial Institutions) |
| (1) | For the purpose of an efficient restructuring of an enterprise with insolvency signs, a council composed of creditor financial institutions of the relevant enterprise shall be established. |
| (2) | The convocation and operation of the council shall be managed by the principal creditor bank. |
| (3) | The principal creditor bank may convene the council in order to deliberate and resolve on the matters under each subparagraph of Article 26 (1). The creditor financial institutions that are not the principal creditor bank may, where the amount of credit extension to the enterprise in question is in excess of 1/4 of the gross amount of credit extension by the creditor financial institutions, independently or together with other creditor financial institutions, request the principal creditor bank to convene the council, and the principal creditor bank in receipt of such a request shall convene the council without delay. |
| (4) | Where the creditor financial institution intends to sell the retained bonds (including the stocks converted into investments pursuant to the plans for management normalization) to other persons than the creditor financial institutions or entrust them with the management rights after a convocation of the council is notified, the relevant creditor financial institution shall obtain a definite promise note from such other persons to the effect that they shall comply with the provisions of this Act, and submit it to the council. |
| (5) | The principal creditor bank may request the enterprise in question to obtain a definite promise note from other creditors than the creditor financial institutions to the effect that they shall comply with the provisions of this Act and to submit it to the council, and such other creditors that have submitted the definite promise note shall be deemed creditor financial institutions under this Act. |
법령 이단보기
| Article 25 (Exclusion of Petty-Sum Creditor Financial Institutions) |
The council may, where judged necessary for efficient restructuring, exclude from the council any creditor financial institution whose credit extension amount is not more than the ratio as determined by the council within the limit of 5/100 of the gross amount of credit extension by the creditor financial institutions (hereinafter referred to as the "petty-sum creditor financial institutions"). In such case, the excluded petty-sum creditor financial institutions shall be deemed not to be the creditor financial institutions.
법령 이단보기
| Article 26 (Duties of Council) |
| (1) | The council shall deliberate and resolve on the matters falling under any of the following subparagraphs: |
| 1. | Recognition of an enterprise with insolvency signs; |
| 2. | Decision on the commencement of joint management procedures by the creditor financial institutions and on whether they are to be continued; |
| 3. | Decision on and extension of a deferment period of exercising the claims; |
| 4. | Conclusion of an agreement; |
| 5. | Examination on and measures for the actual record of implementing an agreement; |
| 6. | Examination and assessment on and measures for the possibility of management normalization of the enterprise in question; |
| 7. | Formulation of the plans for readjustment of claims or credit extension; |
| 9. | Decision on exclusion of petty-sum creditor financial institutions; and |
| 10. | Other matters related to subparagraphs 1 through 9. |
| (2) | The council shall, where it deliberates or resolves under paragraph (1), provides in advance the operator of the enterprise concerned with an opportunity to state his opinions orally or in writing. |
| (3) | The council may, where deemed necessary for efficient restructuring of the enterprise with insolvency signs, entrust by its resolution the steering committee composed of representatives of the creditor financial institutions belonging to the council or the principal creditor bank with the whole or part of duties under each subparagraph of paragraph (1). |
법령 이단보기
| Article 27 (Methods, etc. of Resolution by Council) |
| (1) | The council shall take decision with a concurrent vote of the creditor financial institutions retaining 3/4 or more of the gross amount of credit extension by the creditor financial institutions (including the loans converted into investments pursuant to the plans for management normalization; hereinafter the same shall apply): Provided, That the council may determine by its resolution the methods of resolution differently by setting forth the scope of definite cases. |
| (2) | The creditor financial institutions shall faithfully perform the matters resolved under paragraph (1). |
| (3) | Other matters required in connection with the operation of the council shall be determined by the said council under the conditions as prescribed by the Presidential Decree. |
법령 이단보기
| Article 28 (Reports, etc. on Credit Extension Amount) |
| (1) | Creditor financial institutions shall file a report with the principal creditor bank on the credit extension amount to the relevant enterprise on the basis of the date immediately preceding that of notifying the convocation, within 5 days from the date on which a notice for convocation of the council is given for commencing the joint management procedures under Article 13. |
| (2) | The creditor financial institutions shall exercise a voting right at the council in proportion to the credit extension amount reported under paragraph (1): Provided, That within the period for report under paragraph (1), they may exercise a voting right on the basis of the latest credit extension amount of the creditor financial institutions that has been notified by the Korea Federation of Banks to the principal creditor bank. |
| (3) | The resolution of the council under the proviso of paragraph (2) shall be valid only in case where the credit extension amount reported by the creditor financial institutions that have voted for such a resolution satisfies the requirement for resolution under Article 27 (1). |
| (4) | The council may, where there is any dispute in regard to whether the credit extension reported by the creditor financial institutions exists, etc., restrict the exercise of said voting right until the fixing of whether it exists. |
| (5) | The creditor financial institutions whose exercising of voting rights is restricted under paragraph (4) may exercise their voting rights from the date of fixing whether the credit extension amount exists, but the effect of such exercise shall not set up against the past resolutions of the council. In such case, the period for requesting the purchase of claims under Article 29 (1) shall be calculated from the date of fixing whether the credit extension amount exists. |
| (6) | Any person who reports on his credit extension amount after the reporting period under paragraph (1) may exercise the voting right from the date of fixing the said amount, but the effect of such exercise shall not set up against the past resolutions of the council. |
법령 이단보기
| Article 29 (Request by Opposing Creditor for Purchase of Claims) |
| (1) | Where there exists a resolution of the council under Article 27 (1) on matters falling under any of the following subparagraphs, the creditor financial institutions opposing the resolution may request the council within 7 days from the date of the council's resolution to purchase their claims. In such case, the creditor financial institutions that may request the purchase of claims shall be limited to those that have not attended the council or those that have attended there and expressed their opposing intent in writing, and any person that has not requested the purchase of claims within the said period shall be deemed to have agreed to the resolution of the relevant council: |
| 1. | Commencement of joint management procedures by the creditor financial institutions under Article 13 (1); and |
| 2. | Readjustment of claims or new credit extension under Article 17. |
| (2) | The council shall, where there exists a request under paragraph (1), notify the opposing creditor of the purchase price of claims and conditions thereof within a month therefrom, and have the creditor financial institutions belonging to the council that have voted for the resolution purchase them within the period for performing the management normalization. |
| (3) | The council may request the Korea Asset Management Corporation under the Act on the Efficient Disposal of Non-Performing Assets, etc. of Financial Institutions and the Establishment of the Korea Asset Management Corporation, the Deposit Insurance Corporation and the reorganizing financial institutions under the Depositor Protection Act, or other agencies designated by the council to purchase the claims of opposing creditors, or request the relevant enterprise to redeem them. |
| (4) | The price of purchase or redemption of claims and conditions thereof under paragraph (2) or (3) shall be determined by a consultation between the council and the opposing creditors. In such case, if it is difficult to fix the price of purchase or redemption of the claims, it may be paid at the temporary price for now, and the balance between the consulted price and the temporary one may be settled later. |
| (5) | Where the consultation under paragraph (4) is not attained, the mediation committee under Article 31 (1) shall make a decision on the price of purchase or redemption of claims and conditions thereof. In such case, the mediation committee shall take into consideration the price computed by an accounting specialist selected under a consultation between the council and opposing creditors by evaluating the value of the relevant enterprise with insolvency signs and the possibility for implementing the agreement, as well as the situation of funds of purchase institutions. |
법령 이단보기
| Article 30 (Responsibilities for Compensating Losses) |
| (1) | Creditor financial institutions shall, where they fall under any of the following subparagraphs, be liable for compensating jointly and severally for the losses within the limit of losses incurred by other creditor financial institutions: |
| 1. | Where the creditor financial institutions that have attended the council and expressed the concurrent intent fail to perform the resolution of the council; and |
| 2. | Where the creditor financial institutions fail to submit to the council a definite promise note after obtaining it under Article 24 (4), while they sell the retained claims to other persons than the creditor financial institutions or entrust them with the management right under the said paragraph. |
| (2) | The creditor financial institutions liable for compensating the losses under paragraph (1) may pay the penalty to the council for all of the other creditor financial institutions. In such case, the responsibility for compensating the losses under paragraph (1) shall be exempted. |
| (3) | The value of penalty and the distribution of paid penalty under paragraph (2) shall be determined by the council, and where an agreement is not attained thereon, they shall be governed by mediation of the mediation committee under Article 31. |
법령 이단보기
| Article 31 (Mediation Committee for Creditor Financial Institutions) |
| (1) | A mediation committee for creditor financial institutions (hereinafter referred to as the "mediation committee") shall be established for the purpose of an efficient reorganization of enterprises with insolvency signs and of mediation, etc. of dissenting opinions between the creditor financial institutions. |
| (2) | The mediation committee shall consist of 7 members selected under the conditions as prescribed by the Presidential Decree, who fall under any of the following subparagraphs (excluding persons working at the Government, financial supervisory agencies, creditor financial institutions, and enterprises with insolvency signs): |
| 1. | Persons having experiences of working for 10 or more years at financial institutions or in finance-related fields; |
| 2. | Attorneys-at-law or certified public accountants; |
| 3. | Persons having at least master's degree in finance-related fields, who have experiences of working for 10 or more years at the post of researchers or full-time lecturers or higher position at a research institute or college or university, and have the speciality relevant to the corporate restructuring; and |
| 4. | Persons who have experiences of engaging for 3 or more years in the corporate restructuring duties. |
| (3) | The terms of office of the chairman and members shall be one year, but a consecutive appointment may be permitted, and the chairman shall be elected from among and by the members. |
| (4) | The mediation committee shall perform the duties falling under any of the following subparagraphs: |
| 1. | Mediation of dissenting opinions (excluding the dissenting opinions on the resolution of the council) that are not settled despite an autonomous consultation between the creditor financial institutions, which are matters as prescribed by the Presidential Decree; |
| 2. | Mediation of the price of purchase or redemption of claims and conditions thereof under Article 29 (5); |
| 3. | Mediation of the value of penalty and the distribution of paid penalty under Article 30 (3); |
| 4. | Judgment of whether the resolved matters of the council are violated and the decision on implementation thereof; |
| 5. | Enactment or amendment of the provisions relevant to the operation of the mediation committee; and |
| 6. | Other matters as prescribed by the Presidential Decree relevant to the operation of the council. |
| (5) | The mediation committee shall independently perform the duties belonging to its authority. |
| (6) | The mediation committee shall take decisions with a concurrent vote of 2/3 or more of the total members. |
| (7) | Matters necessary for the organization, operation, etc. of the mediation committee shall be prescribed by the Presidential Decree. |
법령 이단보기
| Article 32 (Mediation Application) |
| (1) | A creditor financial institution may, where it has any objection in regard to matters deliberated by the council, file a request with the mediation committee in writing clarifying the details of application. |
| (2) | The creditor financial institution filing an application for mediation under paragraph (1) shall provide a prima facie proof that it has exerted all-out efforts for an autonomous consultation. |
법령 이단보기
| Article 33 (Mediation Procedures, etc.) |
| (1) | The mediation committee shall forthwith notify the creditor financial institution and the council of the result of mediation of an application for mediation under Article 32. |
| (2) | Mediation by the mediation committee shall have the same validity as a resolution of the council: Provided, That any creditor financial institution dissatisfied with the result of mediation may apply to the competent court for a decision of modification thereof. |
CHAPTER V SPECIAL CASE FOR PROMOTION OF CORPORATE RESTRUCTURING
법령 이단보기
| Article 34 (Special Case of Restriction, etc. on Investment and Asset Operation) |
| (1) | Where a creditor financial institution converts the liabilities into investments or performs the readjustment of claims under a resolution of the council for the purpose of corporate restructuring, the provisions listed in any of the following subparagraphs shall not be applicable: <Amended by Act No. 6891, May 29, 2003> |
| 5. | Other provisions of the Acts and subordinate statutes as prescribed by the Presidential Decree among the Acts and subordinate statutes related to the restriction, etc. on investment and asset operation. |
| (2) | Where the creditor financial institution converts the liabilities into investments under paragraph (1), the relevant enterprise with insolvency signs may, notwithstanding the provisions of Article 417 of the Commercial Act, issue its stocks at the price falling short of the face value with only a resolution of the stockholders' general meeting under Article 434 of the Commercial Act, without obtaining an authorization from the competent court. In such case, the stocks shall be issued within one month from the date of resolution at the stockholders' general meeting, except as otherwise determined by the stockholders' general meeting. |
법령 이단보기
| Article 35 (Special Case of Corporate Restructuring Investment Company) |
| (2) | Where the creditor financial institution under subparagraph 1 of Article 2 of the Corporate Restructuring Investment Companies Act invests in a corporate restructuring investment company, the provisions of subparagraph 1 of Article 38 of the Banking Act shall not be applicable. |
CHAPTER VI CORRECTIVE MEASURES AND PENAL PROVISIONS
법령 이단보기
| Article 36 (Corrective Measures against Creditor Financial Institution) |
| (1) | The Financial Supervisory Commission may, where any creditor financial institution commits an act falling under any of the following subparagraphs, request a correction thereof with fixing a specific period: |
| 1. | Where it neglects the assessment of credit risks or the post management measures in contravention of Article 9 (1); |
| 2. | Where it fails to commence the management procedures without any justifiable grounds in contravention of Article 12; |
| 3. | Where it renders the fund supports in contravention of Article 15 (3); |
| 5. | Where it sells its retained bonds or entrusts its management right in contravention of Article 24 (4). |
| (2) | Where the creditor financial institution in receipt of the request for corrections under paragraph (1) fails to comply with the request for corrections within the specific period without any justifiable grounds, the Financial Supervisory Commission may request or order the relevant creditor financial institution to take measures falling under any of the following subparagraphs: |
| 1. | Caution, warning, censure or salary reduction against the creditor financial institution and its officers and employees; |
| 2. | Suspension of the officers' duties or selection of a manager performing the officers' duties as proxy; |
| 3. | Suspension of part of the business; and |
| 4. | Other measures corresponding to subparagraphs 1 through 3, that are deemed necessary for the correction of violated matters. |
법령 이단보기
| Articles 37 through 39 Deleted.<by Act No. 6991, Dec. 11, 2003> |
ADDENDA
Article 1 (Enforcement Date)
This Act shall enter into force one month after the date of its promulgation.
Article 2 (Valid Period)
| (1) | This Act shall be valid not later than December 31, 2005. |
| (2) | In applying the penal provisions and a fine for negligence to the offenses committed during the period whereto this Act is applicable, this Act shall be applicable even after this Act becomes invalid. |
| (3) | Where the principal creditor bank notifies a convocation of the council within the valid period of this Act, this Act shall be applicable not later than the completion or suspension of management procedures under Article 12 (1). |
Article 3 (General Transitional Measures)
Any resolution, deferment of exercising claims, conclusion of an agreement for implementing the management normalization plans, readjustment of claims, and other activities taken or conducted by the principal creditor bank or the council prior to the enforcement of this Act against the enterprises with insolvency signs for which the management normalization is in progress pursuant to an agreement of the creditor financial institutions at the time of enforcement of this Act, shall be deemed the activities that have been performed by the principal creditor bank or the council pursuant to this Act.
Article 4 (Applicable Cases)
| (1) | The provisions of Article 18 shall be applicable beginning with the portion of credit extension first provided after the enforcement of this Act. |
| (2) | The provisions of Articles 28 through 30 shall be applicable beginning with the case of resolution taken by the council after the enforcement of this Act. |
ADDENDA<Act No. 6891, May 29, 2003>
Article 1 (Enforcement Date)
This Act shall enter into force three months after its promulgation. (Proviso Omitted.)
Articles 2 through 34 Omitted.
ADDENDA<Act No. 6991, Dec. 11, 2003>
Article 1 (Enforcement Date)
This Act shall enter into force on April 1, 2004.
Articles 2 through 7 Omitted.
