No. 15549
Promulgation Date 2018-03-27
Financial Services Commission
ALL
PART I GENERAL PROVISIONS
Article 1 (Purposes)
Article 2 (Applicability to Activities Conducted Abroad)
Article 3 (Financial Investment Instruments)
Article 4 (Securities)
Article 5 (Derivatives)
Article 6 (Financial Investment Business)
Article 7 (Exception of Financial Investment Business from Application)
Article 8 (Financial Investment Business Entities)
Article 8-2 (Financial Investment Instruments Market, etc.)
Article 9 (Other Definitions)
Article 10 (Relation to other Acts)
PART II FINANCIAL INVESTMENT BUSINESS
CHAPTER I AUTHORIZATION AND REGISTRATION OF FINANCIAL INVESTMENT BUSINESS
Section 1 Requirements and Procedure for Authorization
Article 11 (Prohibition against Business Activities without Authorization)
Article 12 (Authorization for Financial Investment Business)
Article 13 (Application for Authorization and Examination)
Article 14 (Preliminary Authorization)
Article 15 (Meeting with Requirements for Authorization)
Article 16 (Addition of Business Activities and Revision to Authorization)
Section 2 Requirements and Procedure for Registration
Article 17 (Prohibition against Unregistered Business Activities)
Article 18 (Registration of Investment Advisory Business or Discretionary Investment Business)
Article 19 (Application for Registration, etc.)
Article 20 (Maintenance of Requirements for Registration)
Article 21 (Addition of Business Activities and Revision to Registration)
CHAPTER II GOVERNANCE OF FINANCIAL INVESTMENT BUSINESS ENTITY
Articles 22 through 28 Deleted.
Article 28-2 (Person in Charge of Derivatives Business)
Article 29 Deleted.
CHAPTER III MAINTENANCE OF SOUND BUSINESS MANAGEMENT
Section 1 Supervision over Soundness in Business Management
Section 1 Supervision over Soundness in Business Management
Article 30 (Maintenance of Financial Soundness)
Article 31 (Guidelines for Soundness in Business Management)
Article 32 (Accounting)
Article 33 (Business Report and Public Disclosure, etc.)
Section 2 Restriction, etc. on Trading with Major Shareholders
Article 34 (Restriction on Trading, etc. with Major Shareholders)
Article 35 (Prohibition on Exercise of Undue Influence by Major Shareholders)
Article 36 (Order of Financial Services Commission to Submit Materials)
CHAPTER IV BUSINESS CONDUCT RULES
Section 1 Common Rules of Business Conduct
Subsection 1 Duty of Good Faith, etc.
Article 37 (Duty of Good Faith, etc.)
Article 38 (Trade Names)
Article 39 (Prohibition on Lending of Names)
Article 40 (Financial Investment Business Entity Engaging in Other Financial Business)
Article 41 (Financial Investment Business Entity Engaging in Incidental Business)
Article 42 (Entrustment of Affairs by Financial Investment Business Entity)
Article 43 (Inspection and Taking Action)
Article 44 (Control of Conflicts of Interest)
Article 45 (Suspending Exchanges of Information)
Subsection 2 Investment Recommendations, etc.
Article 46 (Principle of Suitability, etc.)
Article 46-2 (Principle of Adequacy, etc.)
Article 47 (Duty to Explain)
Article 48 (Liability for Damage)
Article 49 (Prohibition on Undue Recommendation)
Article 50 (Working Rules on Investment Recommendations)
Article 51 (Registration of Investment Solicitors, Etc.)
Article 52 (Prohibited Acts, etc. of Investment Solicitors)
Article 53 (Inspection and Disposition)
Subsection 3 Prohibition of Use of Job-Related Information, etc.
Article 54 (Prohibition on Use of Job-related Information)
Article 55 (Prohibition on Compensation for Losses, Etc.)
Article 56 (Terms and Conditions)
Article 57 (Advertisements Soliciting Investment)
Article 58 (Fees)
Article 59 (Delivery of Contract Documents and Cancellation of Contract)
Article 60 (Keeping and Maintaining Records)
Article 61 (Depositing of Acquired Securities)
Article 62 (Public Announcement of Discontinuance of Financial Investment Business, etc.)
Article 63 (Trading of Financial Investment Instruments by Executive Officers and/or Employees)
Article 63-2 (Obligations to Take Measures to Protect Customer Service Personnel)
Article 64 (Liability for Damage)
Article 65 (Special Cases concerning Foreign Financial Investment Business Entities)
Section 2 Rules on Business Conduct by Financial Investment Business Entities
Subsection 1 Rules on Business Conduct by Investment Traders and Investment Brokers
Subsection 1 Rules on Business Conduct by Investment Traders and Investment Brokers
Article 66 (Explicit Indication of Form of Trading)
Article 67 (Prohibition on Self-Contracting)
Article 68 (Best Execution Obligation)
Article 69 (Exceptional Acquisition of Treasury Stocks)
Article 70 (Prohibition on Discretionary Trading)
Article 71 (Prohibition on Unsound Business Activities)
Article 72 (Credit Granting)
Article 73 (Notification of Details of Trading)
Article 74 (Separate Depositing of Investor's Deposit)
Article 75 (Depositing of Securities Deposited by Investors)
Article 76 (Special Cases concerning Sale, etc. of Collective Investment Securities)
Article 77 (Special Cases concerning Deposits and Insurance with Investment Risk)
Article 77-2 (Designation, etc. of Comprehensive Financial Investment Business Entities)
Article 77-3 (Special Cases concerning Comprehensive Financial Investment Business Entities)
Article 78 (Special Cases concerning Alternative Trading Systems)
Subsection 2 Rules on Business Conduct by Collective Investment Business Entities
Article 79 (Fiduciary Duty of Due Care and Duty of Good Faith)
Article 80 (Instructions on, and Execution of, Asset Management)
Article 81 (Restrictions on Asset Management)
Article 82 (Restriction on Acquisition of One's Own Collective Investment Securities)
Article 83 (Restrictions on Borrowing Money)
Article 84 (Restrictions, etc. on Transactions with Interested Parties)
Article 85 (Prohibition on Unsound Business Activities)
Article 86 (Restriction on Contingent Remuneration)
Article 87 (Voting Rights, etc.)
Article 88 (Delivery of Asset Management Reports)
Article 89 (Ad Hoc Public Disclosure)
Article 90 (Reporting on Collective Investment Property, etc.)
Article 91 (Inspection, Public Disclosure, etc. of Account Books and Documents)
Article 92 (Notice of Deferment of Redemption, etc.)
Article 93 (Special Cases concerning Management of Derivatives)
Article 94 (Special Cases concerning Management of Real Property)
Article 95 (Liquidation)
Subsection 3 Rules on Business Conduct by Investment Advisory Business Entities and Discretionary Investment Business Entities
Article 96 (Fiduciary Duty of Due Care and Duty of Good Faith)
Article 97 (Execution of Contract)
Article 98 (Prohibition on Unsound Business Activities)
Article 98-2 (Restriction on Contingent Remuneration)
Article 99 (Delivery of Discretionary Investment Report)
Article 100 (Special Cases concerning Offshore Investment Advisory Business Entity, etc.)
Article 101 (Reporting on Quasi-Investment Advisory Business)
Subsection 4 Rules on Business Conduct by Trust Business Entities
Article 102 (Fiduciary Duty of Due Care and Duty of Good Faith)
Article 103 (Restrictions on Trust Property, etc.)
Article 104 (Segregation of Trust Property from Proprietary Property)
Article 105 (Restrictions on Management of Trust Property, etc.)
Article 106 (Management of Surplus Fund)
Article 107 Deleted.
Article 108 (Prohibition on Unsound Business Activities)
Article 109 (Trust Contract)
Article 110 (Beneficiary Certificate)
Article 111 (Repurchasing Beneficiary Certificates)
Article 112 (Voting Rights, etc.)
Article 113 (Inspection, Public Disclosure, etc. of Account Books and Documents)
Article 114 (Accounting of Trust Property, etc.)
Article 115 (Auditor's Liability for Damage)
Article 116 (Merger, etc.)
Article 117 (Liquidation)
Article 117-2 (Special Cases concerning Managerial Trust)
CHAPTER V SPECIAL CASES CONCERNING CROWDFUNDING BROKERS, ETC.
Article 117-3 (Prohibition on Business Activities without Registration)
Article 117-4 (Registration)
Article 117-5 (Prohibition, etc. on Use of Similar Name)
Article 117-6 (Corporate Governance, etc.)
Article 117-7 (Regulations, etc. on Business Activities)
Article 117-8 (Management of Subscription Deposits)
Article 117-9 (Special Cases concerning Advertisements Soliciting Investment)
Article 117-10 (Special Cases concerning Public Offering of Securities)
Article 117-11 (Ascertaining Facts of Posted Matters)
Article 117-12 (Liability for Damage, etc.)
Article 117-13 (Central Record Keeping Agency)
Article 117-14 (Management of Register of Investors)
Article 117-15 (Responsibilities of Providers of Electronic Message Board Services)
Article 117-16 (Inspections and Measures)
PART III ISSUANCE AND CIRCULATION OF SECURITIES
CHAPTER I REGISTRATION STATEMENT
Article 118 (Scope of Application)
Article 119 (Registration of Public Offering or Sale)
Article 119-2 (Right to Request Data, etc.)
Article 120 (Effective Date of Registration Statement, etc.)
Article 121 (Restrictions on Trading)
Article 122 (Corrective Registration Statement)
Article 123 (Preparation and Public Notice of Investment Prospectus)
Article 124 (Fair Use of Investment Prospectus)
Article 125 (Liabilities for Damage Caused by False Descriptions, etc.)
Article 126 (Amount of Damages)
Article 127 (Cease of Claims for Damage)
Article 128 (Post-Issuance Report)
Article 129 (Public Notice of Registration Statement and Post-issuance Report)
Article 130 (Public Offering or Sale without Filing Registration Statement)
Article 131 (Reporting and Inspection)
Article 132 (Measures by Financial Services Commission)
CHAPTER II SYSTEMS RELATED TO CORPORATE ACQUISITIONS AND MERGERS
Section 1 Public Tender Offer
Section 1 Public Tender Offer
Section 1 Public Tender Offer
Article 133 (Subject Matters of Tender Offer)
Article 134 (Public Notice of Tender Offer and Submission of Tender Offer Statement)
Article 135 (Submission of Copied Tender Offer Statement)
Article 136 (Corrective Statement, Public Notice thereof, etc.)
Article 137 (Preparation and Public Notice of Prospectus for Tender Offer)
Article 138 (Manifestation of Opinion on Tender Offer)
Article 139 (Revocation, etc. of Tender Offer)
Article 140 (Prohibition on Purchase, etc. Other than through Tender Offer)
Article 141 (Terms, Conditions and Manner of Tender Offer)
Article 142 (Liability for Damage of Tender Offeror, etc.)
Article 143 (Post Tender Offer Report)
Article 144 (Public Notice of Statements, etc.)
Article 145 (Limitations on Voting Rights, etc.)
Article 146 (Inspections and Measures)
Section 2 Report on Stocks, etc. Held in Bulk
Article 147 (Report on Stocks, etc. Held in Bulk)
Article 148 (Dispatching of Report on Stocks Held in Bulk, etc. to Issuer)
Article 149 (Public Notice of Reports, etc.)
Article 150 (Restrictions, etc. on Exercise of Voting Rights in Relation to Stocks, etc. Held in Violation)
Article 151 (Inspection, Demand for Correction, etc.)
Section 3 Restriction on Solicitation to Exercise Voting Right by Proxy
Article 152 (Solicitation to Exercise Voting Rights by Proxy)
Article 152-2 (Relationship between Issuer and Proxy Solicitor)
Article 153 (Keeping and Inspection on Proxy Form and Reference Documents)
Article 154 (Fair Use of Proxy Form, etc.)
Article 155 (Manifestation of Opinion)
Article 156 (Demand for Correction, etc.)
Article 157 (Public Notice of Proxy Forms, etc.)
Article 158 (Inspection and Disposition)
CHAPTER III LISTED CORPORATION'S BUSINESS REPORT, ETC.
Article 159 (Submission of Business Report, etc.)
Article 160 (Submission of Half-Yearly and Quarterly Reports)
Article 161 (Submission of Reports on Material Facts)
Article 161-2 (Right to Request Data, etc.)
Article 162 (Liability for Damage Caused by False Description, Etc.)
Article 163 (Public Notice of Business Report, etc.)
Article 164 (Inspection and Disposition)
Article 165 (Special Cases concerning Submission of Business Reports, etc.)
CHAPTER III-2 SPECIAL CASES CONCERNING STOCK-LISTED CORPORATIONS
Article 165-2 (Scope of Application)
Article 165-3 (Special Cases concerning Acquisition and Disposition of Own Stocks)
Article 165-4 (Special Cases concerning Mergers, etc.)
Article 165-5 (Special Cases concerning Appraisal Rights of Shareholders)
Article 165-6 (Special Cases concerning Issuance, Allocation of Stocks, etc.)
Article 165-7 (Special Cases concerning Allocation of Stocks, etc. to Members of Employee Stock Ownership Associations)
Article 165-8 (Special Cases concerning Issuance Less Than Par Value)
Article 165-9 (Special Cases concerning Notification or Public Notice to Shareholders)
Article 165-10 (Special Cases concerning Issuance, Allocation, etc. of Bonds)
Article 165-11 (Issuance, etc. of Contingent Capital Securities)
Article 165-12 (Special Cases concerning Dividends)
Article 165-13 (Special Cases concerning Stock Dividends)
Article 165-14 Special Cases concerning Dividends of Public Purpose Corporations, etc.)
Article 165-15 (Special Cases concerning Stocks with No, or Limited Voting Rights)
Article 165-16 (Standards for Financial Management of Stock-listed Corporations)
Article 165-17 (Reporting on Granting of Stock Options, Etc.)
Article 165-18 (Measures against Stock-Listed Corporations)
Article 165-19 (Special Cases concerning Outside Directors and Standing Auditors)
CHAPTER IV OVER-THE-COUNTER TRADING, ETC.
Article 166 (Over-the-Counter Trading)
Article 166-2 (Trading, etc. of Over-the-Counter Derivatives)
Article 166-3 (Obligation to Clear Over-the-Counter Transactions)
Article 167 (Limitations on Ownership of Stocks Issued by Public Purpose Corporations)
Article 168 (Restrictions on Foreigners' Trading of Securities and Exchange-Traded Derivatives)
Article 169 (Audit Certification by Auditors)
Article 170 (Auditor's Liability for Damage)
Article 171 (Alternative Payment for Security Deposit, etc.)
PART IV REGULATION OF UNFAIR TRADING
CHAPTER I INSIDER TRADING, ETC.
Article 172 (Return of Insider's Short-Swing Profit)
Article 173 (Report on Status of Specific Securities, etc. Owned by Executive Officers, etc.)
Article 173-2 (Reporting on Exchange-Traded Derivatives, etc. Held in Bulk)
Article 174 (Prohibition on Use of Material Nonpublic Information)
Article 175 (Liability for Damage Caused by Use of Material Nonpublic Information)
CHAPTER II MARKET PRICE MANIPULATION, ETC.
Article 176 (Prohibition on Market Price Manipulation, Etc.)
Article 177 (Liability for Damage Caused by Market Price Manipulation)
CHAPTER III UNFAIR TRADING, ETC.
Article 178 (Prohibition on Unfair Trading, etc.)
Article 178-2 (Prohibition on Market Disturbances)
Article 178-3 (Notification, etc. of Unfair Trade Practices)
Article 179 (Liability for Damage Caused by Unfair Trading, Etc.)
Article 180 (Restriction on Short Sales)
Article 180-2 (Reporting on Net Positions)
Article 180-3 (Public Disclosure of Net Positions)
PART V COLLECTIVE INVESTMENT SCHEME
CHAPTER I GENERAL PROVISIONS
Article 181 (Application of Related Acts)
Article 182 (Registration of Collective Investment Scheme)
Article 183 (Name of Collective Investment Scheme)
Article 184 (Business Execution, etc. of Collective Investment Schemes)
Article 185 (Joint Liability)
Article 186 (Restriction, etc. on Acquisition of One's Own Collective Investment Securities)
Article 187 (Keeping and Maintaining Records of Data)
CHAPTER II ORGANIZATION, ETC. OF COLLECTIVE INVESTMENT SCHEMES
Section 1 Investment Trust
Section 1 Investment Trust
Section 1 Investment Trust
Article 188 (Execution, etc. of Trust Contract)
Article 189 (Beneficiary Certificate, etc.)
Article 190 (General Meeting of Beneficiaries)
Article 191 (Dissenting Beneficiary's Right to Require Purchase of Beneficiary Certificates)
Article 192 (Termination of Investment Trust)
Article 193 (Merger of Investment Trusts)
Section 2 Collective Investment Scheme in Form of Company
Subsection 1 Investment Company
Subsection 1 Investment Company
Article 194 (Incorporation, etc. of Investment Company)
Article 195 (Amendment of Articles of Incorporation, etc.)
Article 196 (Investment Company's Stocks)
Article 197 (Classification, etc. of Directors)
Article 198 (Corporate Director)
Article 199 (Supervisory Director)
Article 200 (Directors' Meeting)
Article 201 (General Meeting of Shareholders)
Article 202 (Dissolution)
Article 203 (Liquidation)
Article 204 (Merger)
Article 205 (Special Cases concerning Investment Companies)
Article 206 (Relation to Commercial Act)
Subsection 2 Investment Limited Liability Company
Article 207 (Incorporation of Investment Limited Liability Company, etc.)
Article 208 (Equity Securities)
Article 209 (Corporate Director)
Article 210 (General Meeting of Partners)
Article 211 (Provisions Applicable Mutatis Mutandis)
Article 212 (Relation to Commercial Act)
Subsection 3 Investment Limited Partnership Company
Article 213 (Incorporation of Investment Limited Partnership Company, Etc.)
Article 214 (Managing Member)
Article 215 (General Meeting of Partners)
Article 216 (Provisions Applicable Mutatis Mutandis)
Article 217 (Relation to Commercial Act)
Subsection 4 Investment Limited Liability Company
Article 217-2 (Establishment, etc. of Investment Limited Liability Company)
Article 217-3 (Equity Securities)
Article 217-4 (Managers)
Article 217-5 (General Meeting of Partners)
Article 217-6 (Provisions Applicable Mutatis Mutandis)
Article 217-7 (Relation to Commercial Act)
Section 3 Collective Investment Scheme in Form of Association
Subsection 1 Investment Limited Partnership
Article 218 (Establishment, etc. of Investment Limited Partnership)
Article 219 (General Partner, etc.)
Article 220 (General Meeting of Partners)
Article 221 (Dissolution and Liquidation of Investment Limited Partnership)
Article 222 (Provisions Applicable Mutatis Mutandis)
Article 223 (Relation to Commercial Act and Civil Act)
Subsection 2 Undisclosed Investment Association
Article 224 (Establishment of Undisclosed Investment Association, etc.)
Article 225 (Business Operator)
Article 226 (General Meeting of Undisclosed Partners)
Article 227 (Provisions Applicable Mutatis Mutandis)
Article 228 (Relation to Other Acts)
CHAPTER III TYPES, ETC. OF COLLECTIVE INVESTMENT SCHEMES
Section 1 Types of Collective Investment Schemes
Section 1 Types of Collective Investment Schemes
Article 229 (Types of Collective Investment Schemes)
Section 2 Collective Investment Schemes in Extraordinary Form
Article 230 (Closed-end Fund)
Article 231 (Multiple Class Fund)
Article 232 (Umbrella Fund)
Article 233 (Master-Feeder Fund)
Article 234 (Exchange-Traded Fund)
Article 234-2 Deleted.
CHAPTER IV REDEMPTION OF COLLECTIVE INVESTMENT SECURITIES
Article 235 (Claim for Redemption, Manner therefor, etc.)
Article 236 (Redemption Price and Commission)
Article 237 (Postponement of Redemption)
CHAPTER V ASSESSMENT AND ACCOUNTING
Article 238 (Assessment of Collective Investment Property, Computation, etc. of Base Price)
Article 239 (Preparation, etc. of Documents of Settlement of Accounts)
Article 240 (Accounting, etc. of Collective Investment Property)
Article 241 (Auditor's Liability for Damage)
Article 242 (Distribution of Profit)
Article 243 Deleted.
CHAPTER VI SAFEKEEPING AND MANAGEMENT OF COLLECTIVE INVESTMENT PROPERTY
Article 244 (Fiduciary Duty of Due Care)
Article 245 (Exclusion from Application)
Article 246 (Limitations on Business of Trust Business Entities)
Article 247 (Monitoring of Operational Acts, etc.)
Article 248 (Delivery of Report on Safekeeping and Management of Assets)
CHAPTER VII SPECIAL PROVISIONS CONCERNING PRIVATELY PLACED FUNDS, ETC.
Section 1 Hedge Funds
Article 249 (Prohibition on Business Activities without Registration)
Article 249-2 (Investors in Hedge Funds)
Article 249-3 (Registration of Collective Investment Business)
Article 249-4 (Investment Recommendations, etc. of Hedge Funds)
Article 249-5 (Advertisements Soliciting Investment by Hedge Funds)
Article 249-6 (Creation or Establishment of, and Reporting on, Hedge Funds)
Article 249-7 (Methods, etc. of Managing Collective Investment Property Held by Hedge Funds)
Article 249-8 (Special Cases concerning Hedge Funds)
Article 249-9 (Measures in Relation to Hedge Funds)
Section 2 Private Equity Funds
Article 249-10 (Establishment and Reporting)
Article 249-11 (Partners and Contributions)
Article 249-12 (Methods, etc. for Managing Collective Investment Property of Private Equity Funds)
Article 249-13 (Special-Purpose Companies)
Article 249-14 (Managing Members, Etc.)
Article 249-15 (Registration, etc. of Managing Members)
Article 249-16 (Restrictions on Transactions with Interested Parties, etc.)
Article 249-17 (Transfer of Equity Shares, etc.)
Article 249-18 (Restrictions on Private Equity Funds, etc. Affiliated with Business Groups subject to Limitations on Cross Shareholding)
Article 249-19 (Special Cases concerning Regulation on Holding Companies)
Article 249-20 (Special Cases concerning Private Equity Funds)
Article 249-21 (Measures against Private Equity Funds)
Article 249-22 (Special Cases concerning Private Equity Funds for Corporate Financial Stability, etc.)
Article 249-23 (Special Cases concerning Private Equity Fund, etc. Specializing in Start-up or Venture Business)
Section 3 Special Provisions concerning Banks and Insurance Companies
Article 250 (Special Provisions concerning Banks)
Article 251 (Special Provisions concerning Insurance Companies)
CHAPTER VIII SUPERVISION AND INSPECTION
Article 252 (Supervision and Inspection of Investment Companies, etc.)
Article 253 (De-Registration of Collective Investment Scheme)
CHAPTER IX COMPANIES RELATED TO COLLECTIVE INVESTMENT SCHEMES
Article 254 (Fund Accounting and Administration Company)
Article 255 (Provisions Applicable Mutatis Mutandis)
Article 256 (Supervision and Inspection of Fund Accounting and Administration Companies)
Article 257 (Measures against Fund Accounting and Administration Companies)
Article 258 (Fund Rating Companies)
Article 259 (Business Conduct Standards, etc.)
Article 260 (Provisions Applicable Mutatis Mutandis)
Article 261 (Supervision and Inspection of Fund Rating Companies)
Article 262 (Measures against Fund Rating Companies)
Article 263 (Bond Rating Companies)
Article 264 (Business Conduct Standards, etc.)
Article 265 (Provisions Applicable Mutatis Mutandis)
Article 266 (Supervision and Inspection of Bond Rating Companies)
Article 267 (Measures against Bond Rating Companies)
CHAPTER X (Articles 268 through 278-3) Deleted.
CHAPTER XI SPECIAL CASES CONCERNING FOREIGN COLLECTIVE INVESTMENT SECURITIES
Article 279 (Registration, etc. of Foreign Collective Investment Scheme)
Article 280 (Domestic Sale of Foreign Collective Investment Securities)
Article 281 (Supervision and Inspection of Foreign Collective Investment Business Entity, etc.)
Article 282 (De-Registration of Foreign Collective Investment Scheme)
PART VI FINANCIAL SERVICES-RELATED INSTITUTIONS
CHAPTER I KOREA FINANCIAL INVESTMENT ASSOCIATION
Article 283 (Establishment)
Article 284 (Prohibition on Using Similar Names)
Article 285 (Membership)
Article 286 (Business Affairs)
Article 287 (Articles of Incorporation)
Article 288 (Self-Resolution of Disputes)
Article 288-2 (Deliberative Committee of Over-the-Counter Derivatives)
Article 289 (Provisions Applicable Mutatis Mutandis)
Article 290 (Reporting on Rules of Business)
Article 291 (Training Institute)
Article 292 (Inspection of Association)
Article 293 (Measures against Association)
CHAPTER II KOREA SECURITIES DEPOSITORY
Section 1 Establishment and Supervision
Section 1 Establishment and Supervision
Section 1 Establishment and Supervision
Article 294 (Establishment)
Article 295 (Prohibition on Using Similar Names)
Article 296 (Business Affairs)
Article 297 (Securities Market Settlement Institution)
Article 298 (Prohibition on Securities Depository Business)
Article 299 (Articles of Incorporation)
Article 300 (Application Mutatis Mutandis of Commercial Act)
Article 301 (Executive Officers, etc.)
Article 302 (Rules on Deposit Business)
Article 303 (Rules on Settlement Business)
Article 304 (Application Mutatis Mutandis)
Article 305 (Approval and Report on Business Rules)
Article 306 (Inspection of Securities Depository)
Article 307 (Measures against Securities Depository)
Section 2 Systems Related to Deposit of Securities
Article 308 (Designation of Securities to be Deposited, etc.)
Article 309 (Deposit, etc. in Securities Depository)
Article 310 (Investor's Deposit of Securities in Depositor, etc.)
Article 311 (Effect of Statement in Account Book)
Article 312 (Presumption of Rights, etc.)
Article 313 (Liability for Coverage)
Article 314 (Exercise, etc. of Rights of Deposited Securities, etc.)
Article 315 (Exercise of Rights by Beneficial Shareholders, etc.)
Article 316 (Preparation of Register of Beneficial Shareholders, etc.)
Article 317 (Civil Execution)
Article 318 (Certificate of Beneficial Ownership)
Article 319 (Exercise of Voting Rights by Beneficial Owners, etc.)
Article 320 (Special Cases concerning Deposit, etc. by Foreign Securities Depository, etc.)
Article 321 (Report, Confirmation, etc.)
Article 322 (Control of Securities, etc.)
Article 323 (Notification, etc. of Description of Issuance and Notification of Description of Irregular Securities, etc.)
CHAPTER II-2 CENTRAL COUNTERPARTY
Article 323-2 (Prohibition against Clearing Business without Authorization)
Article 323-3 (Authorization for Central Counterparty Clearing Business)
Article 323-4 (Application for Authorization and Examination)
Article 323-5 (Preliminary Authorization)
Article 323-6 (Sustainment of Requirements for Authorization)
Article 323-7 (Addition of Business Activities and Revision to Authorization)
Article 323-8 (Prohibition on Using Similar Names)
Article 323-9 (Executive Officers, etc.)
Article 323-10 (Duties)
Article 323-11 (Rules on Clearing Business, etc.)
Article 323-12 (Prohibition on Undue Discrimination)
Article 323-13 (Guarantee Money for Clearing)
Article 323-14 (Joint Compensation Fund)
Article 323-15 (Order of Repayment of Obligations)
Article 323-16 (Report, etc. on Transaction Information of Central Counterparty)
Article 323-17 (Application Mutatis Mutandis)
Article 323-18 (Restrictions on Stockholding)
Article 323-19 (Inspection of Central Counterparty)
Article 323-20 (Dispositions against Central Counterparty)
CHAPTER III SECURITIES FINANCE COMPANY
Article 323-21 (Prohibition against Unauthorized Securities Finance Business)
Article 324 (Authorization)
Article 325 (Prohibition on Using Similar Names)
Article 326 (Business Affairs)
Article 327 (Executive Officers, Etc.)
Article 328 (Provisions Applicable Mutatis Mutandis)
Article 329 (Issuance of Corporate Bonds)
Article 330 (Deposit of Money by Financial Investment Business Entities)
Article 331 (Supervision)
Article 332 (Approval of Discontinuation of Business)
Article 333 (Report on Articles of Incorporation and Rules)
Article 334 (Inspection of Securities Finance Companies)
Article 335 (Measures against Securities Finance Companies)
CHAPTER III-2 CREDIT RATING COMPANY
Article 335-2 (Prohibition on Credit Assessment without Authorization)
Article 335-3 (Authorization)
Article 335-4 (Application for Authorization and Examination)
Article 335-5 (Preliminary Authorization)
Article 335-6 (Sustainment of Requirements for Authorization)
Article 335-7 (Prohibition on Using Similar Names)
Article 335-8 (Executive Officers and Internal Control Standards)
Article 335-9 (Independence and Fairness)
Article 335-10 (Concurrent Business and Incidental Business)
Article 335-11 (Business Conduct Standards for Credit Rating Companies)
Article 335-12 (Submission, Public Disclosure, etc. of Credit Rating Reports)
Article 335-13 (Restrictions on Voting Rights)
Article 335-14 (Provisions Applicable Mutatis Mutandis)
Article 335-15 (Dispositions against Credit Rating Companies)
CHAPTER IV MERCHANT BANKS
Article 336 (Business of Merchant Banks)
Article 337 (Establishment of Branches)
Article 338 (Prohibition on Using Similar Names)
Article 339 (Matters subject to Authorization)
Article 340 (Issuance of Bonds)
Article 341 (Special Cases concerning Collective Investment Business)
Article 342 (Limits on Credit Granting, etc. to Same Borrower, etc.)
Article 343 (Restrictions on Transactions with Major Shareholders)
Article 344 (Limits on Investment in Securities)
Article 345 (Prohibited Acts regarding Funding)
Article 346 (Holding of Assets Required for Reserve)
Article 347 (Restrictions on Acquisition of Real Restate)
Article 348 Deleted.
Article 349 (Penalty Surcharges)
Article 350 (Provisions Applicable Mutatis Mutandis)
Article 351 Deleted.
Article 352 (Relations with Other Acts)
Article 353 (Inspection of Merchant Banks)
Article 354 (Measures against Merchant Banks)
CHAPTER V FUND BROKERAGE COMPANY
Article 355 (Authorization for Fund Brokerage Companies)
Article 356 (Prohibition on Using Similar Names)
Article 357 (Restrictions on Activities of Fund Brokerage Companies)
Article 358 (Inspection of Fund Brokerage Companies)
Article 359 (Measures against Fund Brokerage Companies)
CHAPTER VI SHORT-TERM FINANCE COMPANY
Article 360 (Short-term Financing Business of Financial Institutions)
Article 361 (Application Mutatis Mutandis)
Article 362 (Exemption from Deeming as Short-term Financing Business)
Article 363 (Inspection of Short-term Finance Company)
Article 364 (Measures against Short-term Finance Company)
CHAPTER VII TRANSFER AGENT
Article 365 (Registration of Transfer Agents)
Article 366 (Incidental Business of Transfer Agents)
Article 367 (Application Mutatis Mutandis)
Article 368 (Inspection of Transfer Agents)
Article 369 (Measures against Transfer Agents)
CHAPTER VIII FINANCIAL SERVICES-RELATED ORGANIZATION
Article 370 (Establishment of, and Supervision on, Financial Services-Related Organizations)
Article 371 (Inspection of Financial Services-related Organizations)
Article 372 (Measures against Financial Services-related Organizations)
PART VII EXCHANGE
CHAPTER I GENERAL PROVISIONS
Article 373 (Prohibition against Establishment of Markets without Permission)
Article 373-2 (Permission for Exchange)
Article 373-3 (Application for Permission and Examination)
Article 373-4 (Preliminary Permission)
Article 373-5 (Maintaining Requirements for Permission)
Article 373-6 (Addition of Market Establishment Units and Revision to Permission)
Article 373-7 (Responsibility for Listing and Market Supervision, etc.)
Article 374 (Application of Commercial Act)
CHAPTER II ORGANIZATION, ETC.
Article 375 Deleted.
Article 376 (Articles of Incorporation)
Article 377 (Business Affairs)
Article 378 (Clearing Institution and Settlement Institution)
Article 379 (Prohibition of Use of Similar Names)
Article 380 (Executive Officers)
Article 381 (Board of Directors)
Article 382 (Qualifications for Executive Officers)
Article 383 (Prohibition, etc. on Use of Information)
Article 384 (Audit Committee)
Article 385 (Director Nomination Committee)
CHAPTER III MARKETS
Article 386 (Establishment and Operation of Markets)
Article 387 (Members)
Article 388 (Eligibility for Trading in Market)
Article 389 (Conclusion of Transactions)
Article 390 (Listing Regulations)
Article 391 (Disclosure Regulations)
Article 392 (Securing Effectiveness of Disclosure)
Article 393 (Business Regulations)
Article 394 (Joint Compensation Fund)
Article 395 (Fidelity Guarantee Money)
Article 396 (Good Faith Deposit and Member Margin)
Article 397 (Appropriation of Member Margin and Fidelity Guarantee Money for Repayment of Debt)
Article 398 (Repayment by Exchange)
Article 399 (Exchange's Liability for Damage)
Article 400 (Repayment Order)
Article 401 (Publication of Quotations)
CHAPTER IV MARKET OVERSIGHT AND DISPUTE RESOLUTION
Article 402 (Market Oversight Commission)
Article 403 (Market Oversight Regulations)
Article 404 (Investigations into Abnormal Trading and Inspection of Members)
Article 405 (Self-Resolution of Disputes)
CHAPTER V REGULATIONS ON OWNERSHIP, ETC.
Article 406 (Restrictions on Stockholding)
Article 407 (Non-Performance Penalties)
Article 408 (Approval of Business Transfer)
Article 409 (Approval of Listing and De-listing Securities Issued by Exchange)
CHAPTER VI SUPERVISION, ETC.
Article 410 (Report and Inspection)
Article 411 (Measures against Exchange)
Article 412 (Approval of Regulations of Exchange)
Article 413 (Disposition in Emergency)
Article 414 (Market Efficiency Committee)
PART VIII SUPERVISION AND DISCIPLINARY ACTION
CHAPTER I ORDER, APPROVAL, ETC.
Article 415 (Supervision)
Article 416 (Financial Services Commission's Authority to Issue Orders)
Article 417 (Matters subject to Approval, etc.)
Article 418 (Matters subject to Reporting)
CHAPTER II INSPECTION AND DISPOSITIONS
Article 419 (Inspection on Financial Investment Business Entity)
Article 420 (Dispositions against Financial Investment Business Entities)
Article 421 (Special Cases concerning Revocation, etc. of Authorization or Registration of Branch Offices, etc. of Foreign Financial Investment Business Entities)
Article 422 (Dispositions against Executive Officers and/or Employees)
Article 423 (Hearings)
Article 424 (Keeping Records, Public Disclosure, etc. of Dispositions, etc.)
Article 425 (Objection)
CHAPTER III INVESTIGATION, ETC.
Article 426 (Reporting and Investigation)
Article 427 (Seizure and Search for Investigation into Unfair Trading)
Article 427-2 (Prohibition against Abuse of Authority of Investigation)
CHAPTER IV PENALTY SURCHARGE
Article 428 (Penalty Surcharge on Financial Investment Business Entities)
Article 429 (Penalty Surcharges on Violation in Public Disclosure)
Article 429-2 (Penalty Surcharge on Acts of Disturbing Market Order)
Article 430 (Imposition of Penalty Surcharges)
Article 431 (Presentation of Opinions)
Article 432 (Objection)
Article 433 (Extension of Deadline for Payment of Penalty Surcharges and Installment Payment)
Article 434 (Collection of Penalty Surcharges and Dispositions on Default)
Article 434-2 (Refund of Overpayments or Erroneous Payments)
Article 434-3 (Additional Payment on Refund of Penalty Surcharges)
Article 434-4 (Disposition on Deficits)
PART IX SUPPLEMENTARY PROVISIONS
Article 435 (Reporting on Violation and Protection of Informant)
Article 436 (Electronic Reporting)
Article 437 (Exchange of Information with Foreign Financial Investment Supervisory Agencies)
Article 438 (Delegation or Entrustment of Authority)
Article 439 (Deliberation by the Securities and Futures Commission)
Article 440 (Instruction to, and Supervision over, the Governor of the Financial Supervisory Service)
Article 441 (Restriction, etc. on Trading of Financial Investment Instruments)
Article 442 (Liability for Expenses)
PART X PENALTY PROVISIONS
Article 443 (Penalty Provisions)
Article 444 (Penalty Provisions)
Article 445 (Penalty Provisions)
Article 446 (Penalty Provisions)
Article 447 (Concurrent Imposition of Imprisonment with Labor and Fine)
Article 447-2 (Confiscation and Additional Collection)
Article 448 (Joint Penalty Provisions)
Article 449 (Administrative Fines)
ADDENDA
ADDENDA <Act No. 8852, Feb. 29, 2008>
ADDENDA <Act No. 8863, Feb. 29, 2008>
ADDENDA <Act No. 9407, Feb. 3, 2009>
ADDENDA <Act No. 9408, Feb. 3, 2009>
ADDENDA <Act No. 9625, Apr. 22, 2009>
ADDENDA <Act No. 9784, Jun. 9, 2009>
ADDENDA <Act No. 10063, Mar. 12, 2010>
ADDENDA <Act No. 10303, May 17, 2010>
ADDENDA <Act No. 10361, Jun. 8, 2010>
ADDENDA <Act No. 10366, Jun 10, 2010>
ADDENDA <Act No. 10580, Apr. 12, 2011>
ADDENDA <Act No. 10629, May 19, 2011>
ADDENDA <Act No. 10866, Jul. 21, 2011>
ADDENDA <Act No. 10924, Jul. 25, 2011>
ADDENDA <Act No. 11040, Aug. 4, 2011>
ADDENDA <Act No. 11758, Apr. 5, 2013>
ADDENDA <Act No. 11845, May 28, 2013>
ADDENDA <Act No. 12102, Aug. 13, 2013>
ADDENDA <Act No. 12383, Jan. 28, 2014>
ADDENDA <Act No. 12892, Dec. 30, 2014>
ADDENDA <Act No. 12947, Dec. 30, 2014>
ADDENDA <Act No. 13448, Jul. 24, 2015>
ADDENDA <Act No. 13453, Jul. 31, 2015>
ADDENDA <Act No. 13782, Jan. 19, 2016>
ADDENDA <Act No. 14075, Mar. 18, 2016>
ADDENDA <Act No. 14129, Mar. 29, 2016>
ADDENDA <Act No. 14130, Mar. 29, 2016>
ADDENDA <Act No. 14242, May 29, 2016>
ADDENDA <Act No. 14458, Dec. 20, 2016>
ADDENDA <Act No. 14817, Apr. 18, 2017>
ADDENDA <Act No. 14827, Apr. 18, 2017>
ADDENDUM <Act No. 15021, Oct. 31, 2017>
ADDENDA <Act No. 15022, Oct. 31, 2017>
ADDENDUM <Act No. 15549, Mar. 27, 2018>