HOUSING AND URBAN FUND ACT
Act No. 12989, Jan. 6, 2015
Amended by Act No. 13379, jun. 22, 2015
Act No. 13489, Aug. 11, 2015
Act No. 13499, Aug. 28, 2015
Act No. 13805, Jan. 19, 2016
Act No. 14567, Feb. 8, 2017
Act No. 14569, Feb. 8, 2017
Act No. 14865, Aug. 9, 2017
Act No. 15458, Mar. 13, 2018
Act No. 15489, Mar. 20, 2018
Act No. 15121, May 29, 2018
Act No. 15782, Sep. 18, 2018
Act No. 16392, Apr. 23, 2019
Act No. 16499, Aug. 20, 2019
Act No. 17453, jun. 9, 2020
Act No. 18316, Jul. 20, 2021
Act No. 19316, Mar. 28, 2023
CHAPTER I GENERAL PROVISIONS
The purpose of this Act is to support the enhancement of housing welfare and the revitalization of urban regeneration by establishing the Housing and Urban Fund and incorporating Korea Housing and Urban Guarantee Corporation, thereby contributing to improvement of citizens' quality of life.
| (1) | The terms used in this Act are defined as follows: <Amended on Aug. 11, 2015; Aug. 28, 2015; Jan. 19, 2016> |
| 3. | The term "national housing" means national housing financed by the Housing and Urban Fund established under this Act among national housing defined in subparagraph 5 of Article 2 of the Housing Act; |
| 4. | The term "national standard housing" means the size of a national housing unit defined in subparagraph 6 of Article 2 of the Housing Act; |
| 8. | The term "limited liability loan" means a loan which restricts the liability for performance by a debtor as a security (excluding loans provided by the debtor's fraud, other improper means, etc.). |
CHAPTER II HOUSING AND URBAN FUND
| Article 3 (Establishment of Fund) |
The Government shall establish the Housing and Urban Fund (hereinafter referred to as the "Fund") in order to secure and provide the funds for accomplishing the purpose of this Act.
| Article 4 (Division of Accounts) |
The Fund shall be operated and managed by dividing its account into a housing account and an urban account.
| Article 5 (Financial Resources of Fund) |
| (1) | The housing account shall be financed by any of the following: <Amended on Jun. 22, 2015; Jan. 19, 2016> |
| 1. | Funds raised by issuing national housing bonds pursuant to Article 7; |
| 4. | Contributions or deposits received from a general account; |
| 8. | Funds borrowed from foreign countries to implement a housing construction project or a housing site preparation project; |
| 9. | Principal repaid to and interest earned by the housing account, and profits accruing from the operation of the housing account; |
| 10. | Dividend incomes of institutions financed by the housing account; |
| 11. | Funds raised from the sale of loan assets of the housing account; |
| 12. | Funds raised from the securitization of assets of the housing account; |
| 13. | Incidental earnings accruing from the implementation of national housing projects; |
| 14. | Any other earnings prescribed by Presidential Decree. |
| (2) | The urban account shall be financed by any of the following: <Amended on Mar. 20, 2018> |
| 1. | Contributions or deposits received from a general account; |
| 5. | Principal repaid to and interest earned by the urban account, and profits accruing from the operation of the urban account; |
| 6. | Dividend incomes of institutions financed by the urban account; |
| 7. | Funds raised from the sale of loan assets of the urban account; |
| 8. | Funds raised from the securitization of assets of the urban account; |
| 9. | Funds transferred or borrowed from the housing account; |
| 10. | Any other earnings prescribed by Presidential Decree. |
| (3) | The Minister of Land, Infrastructure and Transport may borrow funds from the Bank of Korea, a financial institution, etc. at the Fund’s expense, if necessary for operating the Fund. |
| (4) | Methods and procedures for selling loan assets prescribed in paragraph (1) 11 or (2) 7, and other necessary matters shall be prescribed by Presidential Decree. |
| (5) | The Minister of Land, Infrastructure and Transport may engage in asset-backed securitization specified in the Asset-Backed Securitization Act in relation to assets of the Fund pursuant to paragraph (1) 12 or (2) 8. |
| Article 6 (Depositing Capital into Fund) |
| (1) | A manager or saver of any of the following funds or capital may deposit all or part of the funds or capital into the Fund: |
| 2. | Any other funds or capital prescribed by Presidential Decree. |
| (3) | The scope of and methods and conditions for depositing funds or capital into the Fund prescribed in paragraph (1), and other necessary matters shall be prescribed by Presidential Decree. |
| Article 7 (Issuance of National Housing Bonds) |
| (1) | The Government may issue national housing bonds at the expense of the Fund in order to raise funds required for implementing national housing projects. |
| (2) | The national housing bonds referred to in paragraph (1) shall be issued by the Minister of Economy and Finance, upon a request by the Minister of Land, Infrastructure and Transport. |
| (3) | Except as provided in this Act, the State Bond Act shall apply to national housing bonds. <Amended on Jun. 9, 2020> |
| (4) | The types and interest rates of national housing bonds, methods and procedures for issuing the bonds, affairs on redemption and issuance thereof, and other necessary matters shall be prescribed by Presidential Decree. |
| Article 8 (Purchase of National Housing Bonds) |
| (1) | A person prescribed by Presidential Decree, among the following persons, shall purchase national housing bonds: |
| 1. | A person who obtains a license, permission, or authorization from the State or a local government; |
| 2. | A person who files an application for registry or registration with the State or a local government; |
| 3. | A person who concludes a contract for a construction project with the State, a local government, or a public institution prescribed by Presidential Decree, among public institutions specified in the Act on the Management of Public Institutions; |
| 4. | A person who is supplied with housing constructed and supplied pursuant to the Housing Act. |
| (2) | Matter necessary for purchase amounts, procedures, etc. for persons who purchase national housing bonds pursuant to paragraph (1) shall be prescribed by Presidential Decree. |
| (1) | The housing account of the Fund shall be used for any of the following purposes: <Amended on Jan. 19, 2016; Mar. 13, 2018; Jul. 20, 2021> |
| 1. | Financing or lending for the following: |
| (a) | Construction of national housing; |
| (b) | Purchase, renting, or renovation of a housing unit not bigger than national standard housing; |
| (c) | Construction of quasi-housing; |
| (d) | Purchase, renting, or renovation of quasi-housing; |
| (e) | Remodeling of a housing unit not bigger than national standard housing; |
| (f) | A housing site preparation project designed to construct national housing; |
| (g) | Construction of industrialized housing prescribed in Article 51 of the Housing Act (limited to housing units not bigger than the size prescribed by Presidential Decree); |
| (h) | Construction of a housing unit the size of which is not bigger than that of national standard housing, which recruits occupants after its housing construction process reaches the standard prescribed by the Ordinance of the Ministry of Land, Infrastructure and Transport; |
| (i) | Expenses incurred by the Korea Land and Housing Corporation in purchasing housing units subject to the sales price ceiling system under Article 64 (2) of the Housing Act; |
| 2. | Financing, contributions, or loans for any of the following institutions, Funds, and special accounts: |
| (a) | Korea Housing and Urban Guarantee Corporation established pursuant to Article 16 (hereinafter referred to as "HUG"); |
| (b) | Korea Land and Housing Corporation; |
| (e) | Deleted; <Aug. 9, 2017> |
| (d) | Any other securities prescribed by Presidential Decree, which relate to the supply of rental housing; |
| 4. | Repayment of principal and interest of the following: |
| (a) | Deposits received, deposits, or loans referred to in Article 5 or 6; |
| (b) | National housing bonds referred to in Article 7; |
| 5. | Transfer or loans to the urban account; |
| 6. | Expenses incurred in financing, operating, and managing the Fund; |
| 7. | Education and training in Korea and abroad designed to train professional human resources in the housing and urban field, as well as research and surveys to improve relevant systems; |
| 8. | Housing projects promoted as the Government policy; |
| 9. | Any other projects prescribed by Presidential Decree to fulfill the purpose of establishing the housing account. |
| (2) | The urban account of the Fund shall be used for any of the following purposes:<Amended on Feb. 8, 2017; Mar. 13, 2018; Apr. 23, 2019; Aug. 20, 2019> |
| 1. | Loans for the following: |
| 2. | Financing, investments, or loans for expenses incurred in implementing any project meeting the requirements prescribed by Presidential Decree among the following projects: |
| 2-2. | Financing or loans provided to an entrusted management real estate investment company (referring to an entrusted management real estate investment company defined in subparagraph 1 (b) of Article 2 of the Real Estate Investment Company Act) that is operated for the purpose of promoting urban regeneration by purchasing real estate created from a project under subparagraphs 1 (a) and 2 (a); |
| 3. | Loans for any of the following Funds and special accounts: |
| (b) | A special account for urban renewal acceleration established under Article 24 of the Promotion of Urban Renewal; |
| 3-3. | Purchase of securities issued by a real estate investment company (referring to a real estate investment company defined in subparagraph 1 of Article 2 of the Real Estate Investment Company Act) established to conduct the projects specified in the items of subparagraph 2, and by a real estate investment company established pursuant to subparagraph 2-2; |
| 4. | Repayment of principal and interest of the deposits received, deposits, or loans referred to in Article 5 or 6; |
| 5. | Expenses incurred in financing, operating, and managing the Fund; |
| 6. | Any other projects prescribed by Presidential Decree to accomplish the purpose of establishing the urban account. |
| (3) | The limits on the total amount to be financed or invested pursuant to paragraph (1) or (2) shall be prescribed by Presidential Decree. |
| (4) | The Minister of Land, Infrastructure and Transport may operate any surplus funds in the Fund by the methods prescribed by Presidential Decree. |
| (5) | The Minister of Land, Infrastructure and Transport may operate the Fund as limited liability loans by methods prescribed by Presidential Decree, in any of the following circumstances: <Newly Inserted on Aug. 11, 2015> |
| 1. | Purchasing a housing unit not bigger than national standard housing prescribed in paragraph (1) 1 (b); |
| 2. | Purchasing quasi-housing prescribed in paragraph (1) 1 (d). |
| (6) | The Minister of Land, Infrastructure and Transport may limit financing or lending under paragraph (1) or (2) in accordance with Ordinance of the Ministry of Land, Infrastructure and Transport, if the project entity or constructor is suspended from business or the black mark given under Article 53 of the Construction Technology Promotion Act meets the criteria prescribed by Ordinance of the Ministry of Land, Infrastructure and Transport. <Newly Inserted on Mar. 13, 2018> |
| Article 10 (Operation and Management of Fund) |
| (1) | The Fund shall be operated and managed by the Minister of Land, Infrastructure and Transport. |
| (2) | The Minister of Land, Infrastructure and Transport may entrust all or some of the affairs relating to the operation and management of the Fund to HUG. |
| (3) | HUG may re-entrust some of the affairs previously entrusted pursuant to paragraph (2) to a financial institution, etc. with approval from the Minister of Land, Infrastructure and Transport: Provided, That the Minister of Land, Infrastructure and Transport may directly entrust the affairs to a financial institution, etc., if deemed necessary. |
| (4) | HUG shall report to the Minister of Land, Infrastructure and Transport on the status of financing for and operation of the Fund, as prescribed by Presidential Decree. |
| (5) | HUG, or a fund re-trustee, etc. (referring to a financial institution, etc. re-entrusted with some of the affairs of the Fund or entrusted with the affairs pursuant to paragraph (3); hereinafter the same shall apply) shall perform the entrusted affairs with the fiduciary care of a good manager. |
| (6) | Where the Minister of Land, Infrastructure and Transport intends to formulate a plan for operating the Fund, he or she shall first consult with the Minister of Economy and Finance. |
| Article 11 (Digitalization of Operation and Management of Fund) |
| (1) | The Minister of Land, Infrastructure and Transport may establish and operate an electronic system to efficiently handle the operation and management of the Fund pursuant to Article 10. |
| (2) | The Minister of Land, Infrastructure and Transport, HUG, and a fund re-trustee, etc., to which the affairs relating to the operation and management of the Fund have been entrusted pursuant to Article 10 (2) or (3), may use the electronic system referred to in paragraph (1) by electronically linking it with the information system referred to in Article 6-2 of the Social Welfare Services Act. |
| Article 12 (Fiscal Year of Fund) |
Except as provided in this Act, the National Finance Act shall apply to the fiscal year, operation plan, settlement of accounts, etc. for the Fund. <Amended on Jun. 9, 2020>
| Article 13 (Fund Accounting Organization) |
| (1) | The Minister of Land, Infrastructure and Transport shall appoint a fund revenue collection officer, a fund treasurer, a fund disbursement officer, and a fund accounting official, from among public officials under his or her jurisdiction, in order to assign them to perform affairs relating to the revenue and expenditure of the Fund. |
| (2) | Where HUG or a fund re-trustee, etc. is entrusted with affairs relating to the operation and management of the Fund pursuant to Article 10 (2) or (3), he, she, or it shall appoint the following persons from among its or their executive officers and employees and report such appointment to the Minster of Land, Infrastructure and Transport. In such cases, the appointed persons shall perform the duties classified as follows: |
| 1. | Executive officer or employee in charge of fund revenues: The duties of the fund revenue collection officer; |
| 2. | Executive officer or employee in charge of obligation of the Fund: The duties of the fund treasurer; |
| 3. | Fund disburser: The duties of the fund disbursement officer; |
| 4. | Fund cashier: The duties of the fund accounting official. |
| (3) | Where the Minister of Land, Infrastructure and Transport, HUG, and a fund re-trustee, etc. appoint a fund revenue collection officer, fund treasurer, fund disbursement officer, fund accounting official, executive officer or employee in charge of fund revenues, executive officer or employee in charge of obligation of the Fund, executive officer or employee in charge of fund disbursements, or fund cashier, the appointed shall notify the Board of Audit and Inspection of Korea, the Ministry of Economy and Finance, and the Bank of Korea of such appointment pursuant to paragraph (1) or (2). |
| Article 14 (Disposal of Profits and Losses) |
| (1) | Where any profit is generated from the settlement of accounts of the Fund each business year, the Minister of Land, Infrastructure and Transport shall accumulate the total profit in the Fund. |
| (2) | Where any loss accrues from the settlement of accounts of the Fund each business year, the Minister of Land, Infrastructure and Transport shall offset the loss by the reserves accumulated pursuant to paragraph (1); and, where any loss remains even after the offset, the Government may cover the loss from a general account. |
| Article 15 (Writing off Loan Claims of Fund) |
| (1) | Where it is impracticable to recover any loan of the Fund due to the relevant debtor's insolvency, etc., HUG or a fund re-trustee, etc. may write the loan claim off, as prescribed by Ordinance of the Ministry of Land, Infrastructure and Transport: Provided, That, in cases of limited liability loans, the claim for an uncovered loan may be written off even if the relevant debtor is not insolvent. <Amended on Aug. 11, 2015> |
| (2) | Where the period prescribed by Ordinance of the Ministry of Land, Infrastructure and Transport expires while HUG or a fund re-trustee, etc. is performing the managerial duties to preserve or collect claims written off pursuant to paragraph (1), he, she, or it shall suspend such duties and report to the Minister of Land, Infrastructure and Transport on the details thereof. |
CHAPTER III KOREA HOUSING AND URBAN GUARANTEE CORPORATION
| Article 16 (Incorporation) |
Korea Housing and Urban Guarantee Corporation shall be incorporated to conduct various forms of guarantee business and policy projects for accomplishing the purpose of this Act, as well as efficiently operating and managing the Fund.
| Article 17 (Legal Personality) |
HUG shall be incorporated as a corporation.
| (1) | The location of the principal office of HUG shall be prescribed by its articles of incorporation. |
| (2) | HUG may establish branch offices or business offices, as prescribed by its articles of incorporation, if necessary for performing its duties. |
| (1) | The capital of HUG shall be five trillion won, at least 1/2 of which shall be financed by the Government. |
| (2) | Stockholders' rights over the stocks of HUG held by the Government shall be exercised by the Minister of Land, Infrastructure and Transport. |
| (3) | The class of stocks to be issued by HUG pursuant to paragraph (1), the amount per stock, and other necessary matters shall be prescribed by its articles of incorporation. |
| (4) | Where HUG adopts a resolution to reduce capital by retiring or consolidating its stocks, it may publicly announce through at least two daily newspapers (referring to general daily newspapers defined in subparagraph 1 (a) of Article 2 of the Act on the Promotion of Newspapers) that creditors may raise objections to such resolution during a given period for at least 10 days, notwithstanding Article 439 (2) of the Commercial Act. In such cases, a peremptory notice to individual creditors may not be given. |
| Article 20 (Registration for Incorporation and Articles of Incorporation) |
| (1) | HUG shall be duly formed when registration for its incorporation is completed with the registry at the seat of its principal office, as prescribed by its articles of incorporation. |
| (2) | Where HUG intends to formulate or amend its articles of incorporation, it shall obtain authorization from the Minister of Land, Infrastructure and Transport. |
| Article 21 (Prohibition against Use of Similar Names) |
No person, other than HUG prescribed in this Act, shall use the name, Korea Housing and Urban Guarantee Corporation, or any other similar name.
| Article 22 (Executive Officers and Employees) |
| (1) | HUG shall have as its executive officers one president, not more than five full-time directors, and not more than eight part-time directors. <Amended on Apr. 23, 2019> |
| (2) | Any vacancy for an executive officer shall be filled by appointing a new executive officer, and the term of office for the new executive officer shall be calculated from the date he or she has been appointed. |
| (3) | Staff of HUG shall be appointed and dismissed by the President. |
| Article 23 (Board of Directors) |
| (1) | A board of directors shall be established under the jurisdiction of HUG to deliberate and decide on important matters in connection with the operations of HUG. |
| (2) | The board of directors shall be comprised of the President and directors. |
| (3) | Meetings of the board of directors shall be convened by the President or upon a request by at least 1/3 of all incumbent directors, which shall be presided over by the President. |
| (4) | The board of directors shall adopt resolutions with a consent of a majority of its incumbent directors. |
| (5) | Deleted. <Apr. 23, 2019> |
| Article 24 (Appointment of Agents) |
The President of HUG may appoint an agent who shall be delegated with all judicial and extrajudicial matters, in connection with the operation of HUG among staff members of HUG, as prescribed by its articles of incorporation.
| Article 25 (Prohibition against Divulgence) |
No current or former executive officer and employee of HUG shall divulge any confidential information learned in the course of performing his or her duties.
| (1) | To fulfill its purposes, HUG shall perform the following affairs: <Amended on Aug. 9, 2017> |
| 1. | Affairs relating to the operation and management of the Fund prescribed in Article 10 (2); |
| 2. | Guarantee for the sale of housing, guarantee for rental deposits, guarantee for repair of defects, or any other guarantee prescribed by Presidential Decree; |
| 3. | Affairs relating to the construction of housing, repair of defects, etc. required to provide a guarantee prescribed in subparagraph 2, and affairs for the exercise of the right to indemnity; |
| 6. | Acquisition, management, and renovation of real estate as well as receipt of requests for disposal thereof; |
| 7. | Affairs entrusted by the State, a local government, a public organization, etc.; |
| 8. | Surveys and research relating to the affairs specified in subparagraphs 1 through 7; |
| 9. | Any other affairs prescribed by Presidential Decree. |
| (2) | In order to perform the affairs prescribed in paragraph (1) 1 or 2, HUG may underwrite a trust in connection with the rights to the relevant real estate (including buildings under construction). In such cases, the Financial Investment Services and Capital Markets Act shall not apply to HUG underwriting the trust. |
| (3) | Matters necessary for performing the affairs prescribed in paragraph (1) shall be prescribed by Presidential Decree. |
| (4) | HUG may finance or contribute to a corporation engaging in any affairs specified in any subparagraph of paragraph (1) or other similar affairs by a resolution of the board of directors. |
| Article 27 (Limits on Guarantees) |
The limits on the total amount of guarantees that HUG is eligible to provide shall be prescribed by Presidential Decree within the limit not exceeding 60 times the equity capital. <Amended on Jul. 20, 2021>
| Article 28 (Separate Accounting) |
HUG shall keep accounts of HUG separately from those of the Fund.
| Article 28-2 (Operation of Surplus Funds) |
The surplus funds of the HUG shall be operated in the following ways: Provided, That approval from the Minister of Land, Infrastructure and Transport is required in cases of subparagraphs 3 and 4:
| 1. | Deposit into a financial institution; |
| 2. | Purchase of Government bonds and municipal bonds as well as of bonds guaranteed by the Government, a local government, or a financial institution; |
| 3. | Subscription and purchase of shares (including equity securities), debentures, and other securities; |
| 4. | Other means necessary for achieving the purpose of this Act. |
[This Article Newly Inserted on Sep. 18, 2018]
| Article 29 (Disposal of Profits) |
| (1) | Where any profit is generated from the settlement of accounts each fiscal year, HUG shall appropriate the profits in the following order: |
| 1. | Coverage of losses carried forward; |
| 2. | Accumulating at least 2/10 of the profits as an earned surplus reserve until such reserve amounts to the amount of the capital; |
| 3. | Accumulating at least 2/10 of the profits as a reserve for provision of guarantees until such reserve amounts to 1/2 of the capital; |
| 4. | Distribution of profits. |
| (2) | No reserve referred to in paragraph (1) 2 or 3 shall be used for any purpose other than covering deficits or being transferred to the capital. |
| (3) | Where a loss is incurred as a result of the settlement of accounts of HUG, it shall be covered by the reserve for provision of guarantees referred to in paragraph (1) 3; if such reserve is insufficient to cover the loss, the earned surplus reserve referred to in paragraph (1) 2 shall be used; and if such reserve is insufficient to cover the loss, the Government may make up the loss. <Newly Inserted on Sep. 18, 2018> |
[Title Amended on Sep. 18, 2018]
| Article 30 (Relationship to Other Statutes) |
CHAPTER IV SUPPLEMENTARY PROVISIONS
The Minister of Land, Infrastructure and Transport shall supervise the affairs of HUG and may issue an order necessary for such supervision.
| Article 32 (Reporting and Inspections) |
| (1) | Where deemed necessary, the Minister of Land, Infrastructure and Transport may require HUG to report matters, etc. in connection with its affairs, accounting, and property; or may have public officials under his or her jurisdiction inspect the affairs of HUG, its accounting records, documents, facilities, or any other necessary articles. |
| (2) | Notwithstanding paragraph (1), the Financial Services Commission may conduct an inspection necessary for maintaining the management soundness of HUG, as prescribed by Presidential Decree. In such cases, the Financial Services Commission shall notify the Minister of Land, Infrastructure and Transport of the findings of such inspection without delay. |
| (3) | Where any unlawful or unfair act of HUG is discovered in an inspection conducted under paragraph (2), the Financial Services Commission may request the Minister of Land, Infrastructure and Transport to rectify the unlawful or unfair act discovered. |
| (4) | Where necessary for efficiently operating and managing the Fund and maintaining its soundness, the Minister of Land, Infrastructure and Transport may have public officials under his or her jurisdiction conduct an on-site inspection on the relevant fund re-trustee, etc.; require them to submit data on loans, etc.; or may give any other instructions necessary for the supervision. |
| Article 33 (Requests for Provision of Data) |
| (1) | Where the Minister of Land, Infrastructure and Transport deems it necessary for operating and managing the Fund, the Minister or a fund re-trustee, etc. may request a State agency such as the Supreme Court, local government, financial institution, the National Pension Service established under the National Pension Act, the National Health Insurance Service established under the National Health Insurance Act, or any other public organization to provide the following data or information, in which case the specific scope of the providing institution and data and information shall be prescribed by Presidential Decree: <Amended on Apr. 23, 2019> |
| 2. | Data on national taxes and local taxes; |
| 3. | Data on all types of pensions, insurances, and benefits, such as the national pension, public officials pension, military pension, pension for private school teachers and staff, special post office pension, health insurance, employment insurance, industrial accident compensation insurance, and veteran's benefits; |
| 5. | Other data or information necessary for operating and managing the Fund. |
| (2) | Where deemed necessary for performing the affairs referred to in Article 26, HUG may request relevant institutions to provide data or information by applying mutatis mutandis Article (1). |
| (3) | HUG may request the head of the competent office of tax affairs or the head of the competent local government to provide taxation information in writing, stating the relevant taxpayer's personal information and the use of such information. In such cases, a request for provision of taxation information shall be made to the minimum extent necessary for exercising the right to indemnity under Article 26 (1) 3, and shall not be abused for any other purpose. |
| (4) | Upon receipt of a request prescribed in paragraphs (1) through (3), the relevant person shall comply therewith unless there is a compelling reason not to do so. |
| (5) | No person (including a person entrusted with the duties pursuant to Article 34-4) who has been provided with data under paragraphs (1) through (3) shall use such data beyond the scope of achieving the purposes for which they were provided, provide such data to other persons or institutions, or divulge them. <Newly Inserted on Apr. 23, 2019> |
| (6) | Fees or charges, etc. shall be exempted for any data or information provided pursuant to paragraphs (1) through (3) for the Minister of Land, Infrastructure and Transport, HUG, or a fund re-trustee, etc. or for the Minister of Health and Welfare entrusted with the duties pursuant to Article 34-4. <Newly Inserted on Apr. 23, 2019> |
[Title Amended on Apr. 23, 2019]
| Article 34 (Submission of Written Consent Required to Request Provision of Financial Information) |
| (1) | Where deemed necessary, the Minister of Land, Infrastructure and Transport may request a person who applies for loans relating to the Fund to submit a written consent required to be provided with the following data or information (hereinafter referred to as "written consent") relating to the applicant for a loan or his or her spouse, by a financial institution or a credit information collection agency under Article 25 of the Credit Information Use and Protection Act (hereinafter referred to as "credit information collection agency"): |
| 1. | Balance, amount paid in installments, or paid amount of deposits, installment deposits, or savings accounts, or value of securities and certificates of financial assets, such as securities (hereinafter referred to as "financial information"), among data or information on the details of financial assets and financial transactions defined in subparagraphs 2 and 3 of Article 2 of the Act on Real Name Financial Transactions and Confidentiality; |
| 3. | Insurance premiums paid after purchasing insurance policies specified in the subparagraphs of Article 4 (1) of the Insurance Business Act and other insurance-related data or information prescribed by Presidential Decree (hereinafter referred to as “insurance information”). |
| (2) | Where the Minister of Land, Infrastructure and Transport requests the submission of written consent pursuant to paragraph (1), the person who applies for a loan related to the Fund and his or her spouse shall submit the written consent. |
| (3) | Matters concerning the methods and procedures for giving consent pursuant to paragraph (1) and specific details of data or information shall be prescribed by Presidential Decree. |
[This Article Wholly Amended on Apr. 23, 2019]
| Article 34-2 (Provision of Financial Information) |
| (5) | No person who engages or has engaged in the duties specified in paragraphs (1) and (2) shall use any financial information, etc. acquired while performing such duties for purposes other than those prescribed in this Act or provide or divulge it to any third person or institution. |
| (6) | Matters necessary for requests to provide financial information, etc. and provision, etc. of such information under paragraphs (1), (2), and (4) shall be prescribed by Presidential Decree. |
[This Article Newly Inserted on Apr. 23, 2019]
| Article 34-3 (Collection of Data or Information) |
The Minister of Land, Infrastructure and Transport, HUG, a fund re-trustee, etc., and the Minister of Health and Welfare entrusted with the duties pursuant to Article 34-4 may collect, manage, hold, or utilize data or information provided pursuant to Articles 33 (1) through (3) and 34-2 within the scope of purposes for which such data or information is provided. [This Article Newly Inserted on Apr. 23, 2019]
| Article 34-4 (Entrustment of Authority) |
The Minister of Land, Infrastructure and Transport may entrust the following duties to the Minister of Health and Welfare:
| 1. | Duties relating to a request, etc. to provide data under Article 33; |
| 2. | Duties relating to a request to provide financial information, etc. under Article 34-2. |
[This Article Newly Inserted on Apr. 23, 2019]
| Article 34-5 (Disclosure of Names of Habitual Defaulters) |
| (1) | Where all of the following requirements are satisfied with regard to a lessor (hereinafter referred to as "habitual defaulter"), the Minister of Land, Infrastructure and Transport or HUG may disclose his or her name (where a lessor is a corporation or an organization, referring to its title and the name of its representative), age, and address, matters regarding any liability to return a deposit for lease, and matters regarding any liability for reimbursement assumed by the lessor after HUG fulfills a guarantee liability, on the website of the Ministry of Land, Infrastructure and Transport or HUG or by using an information and communications network defined in Article 2 (1) 1 of the Act on Promotion of Information and Communications Network Utilization and Information Protection: Provided, That this shall not apply where there exists any reason prescribed by Presidential Decree, such as that the lessor dies or civil litigation is pending with respect to the liability for reimbursement: |
| 1. | The liability for reimbursement shall arise after HUG fulfills a guarantee liability prescribed by Presidential Decree under Article 26 including a guarantee for rental deposits, as the lessor of a housing lease contract fails to pay the lessee a deposit for a lease; |
| 2. | The lessor of a housing lease contract shall, without good cause, fail to fulfill the liability to return a deposit for a lease separate from that resulting in the liability for reimbursement prescribed in subparagraph 1 within three years before such liability for reimbursement arises; |
| 3. | The total amount of HUG's claims for reimbursement against the lessor shall be at least 200 million won; |
| 4. | HUG shall file an application for compulsory execution or preservative measures under the Civil Execution Act based on claims for reimbursement and such compulsory execution or preservative measures shall take effect. |
| (2) | Matters regarding the liability to return a deposit for a lease and the liability for reimbursement under paragraph (1) shall be as follows: |
| 1. | The amount of the liability to return a deposit for a lease; |
| 2. | The period for fulfilling or not fulfilling the liability to return a deposit for a lease; |
| 3. | The date when HUG fulfills a guarantee liability; |
| 4. | The amount of the liability for reimbursement; |
| 5. | The number of times that HUG files an application for compulsory execution or preservative measures under the Civil Execution Act. |
| (3) | Where the Minister of Land, Infrastructure and Transport or HUG intends to disclose the names, etc. of habitual defaulters under paragraph (1), he, she, or it shall notify the relevant persons subject to disclosure of such fact and give them an opportunity to provide an explanation, as prescribed by Presidential Decree. |
| (4) | A Deliberation Committee on Disclosure of Lessors' Information (hereafter in this Article referred to as the "Information Disclosure Deliberation Committee") shall be established in the Ministry of Land, Infrastructure and Transport or HUG in order to deliberate on whether to disclose the names, etc. of habitual defaulters under paragraph (1). In such cases, matters necessary for the composition, operation, etc. of the Information Disclosure Deliberation Committee shall be prescribed by Presidential Decree. |
| (5) | Matters necessary for the methods, procedures, etc. for disclosing the names, etc. of habitual defaulters prescribed in paragraphs (1) through (3) shall be prescribed by Presidential Decree. |
[This Article Newly Inserted on Mar. 28, 2023]
CHAPTER V PENALTY PROVISIONS
| Article 35 (Penalty Provisions) |
| (1) | A person who uses, provides, or divulges data or information in violation of Article 33 (5) or 34-2 (5) shall be punished by imprisonment for not more than five years or by a fine not exceeding 50 million won. <Amended on Nov. 28, 2017; Apr. 23, 2019> |
| (2) | A person who divulges any secret, in violation of Article 25, shall be punished by imprisonment for not more than two years or by a fine not exceeding 20 million won. <Amended on Nov. 28, 2017> |
| Article 36 (Administrative Fines) |
| (1) | A person who uses the name, HUG, or any other similar name in violation of Article 21 shall be subject to an administrative fine not exceeding 10 million won. |
| (2) | An administrative fine referred to in paragraph (1) shall be imposed and collected by the Minister of Land, Infrastructure and Transport. |
ADDENDA <Act No. 12989, Jan. 6, 2015>
Article 1 (Enforcement Date)
This Act shall enter into force on July 1, 2015.
Article 2 (Transitional Measures concerning the National Housing Fund)
| (1) | The National Housing Fund established under the Housing Act as at the time this Act enters into force shall be deemed the Housing and Urban Fund established under this Act. |
| (2) | Any investments, contributions, loans, or other juristic acts made, provided or performed from the National Housing Fund under the Housing Act as at the time this Act enters into force shall be deemed made, provided or performed under the relevant provisions of this Act. |
| (3) | Property, claims, and debts belonging to the National Housing Fund under the Housing Act as at the time this Act enters into force shall be transferred to the housing account of the National Housing Fund established under this Act. |
Article 3 (Transitional Measures concerning National Housing Bonds)
National housing bonds specified in the Housing Act as at the time this Act enters into force shall be deemed national housing bonds specified in this Act. Article 4 (Transitional Measures following Change of Name of Korea Housing Guarantee Company)
| (1) | Korea Housing Guarantee Company incorporated under the Housing Act (hereinafter referred to as "Korea Housing Guarantee Company") as at the time this Act enters into force shall be deemed Korea Housing and Urban Guarantee Corporation incorporated under this Act. |
| (2) | Acts performed or other legal relationships established in the name of the Korea Housing Guarantee Company as at the time this Act enters into force shall be deemed acts performed or legal relationships established in the name of the Korea Housing Guarantee Company incorporated under this Act. |
| (3) | The name of the Korea Housing Guarantee Company stated in registers or other public records as at the time Act enters into force shall be deemed the name of Korea Housing and Urban Guarantee Corporation incorporated under this Act. |
Article 5 Omitted.
Article 6 (Relationship to Other Statutes)
| (1) | A citation of any previous provisions of the Housing Act by any other statute as at the time this Act enters into force shall be deemed a citation of the corresponding provisions of this Act if such corresponding provisions exist herein. |
| (2) | A citation of the National Housing Fund, national housing bonds, and Korea Housing Guarantee Company by any other statute as at the time this Act enters into force shall be deemed a citation of the Fund, national housing bonds, and HUG under this Act, respectively. |
ADDENDA <Act No. 13379, Jun. 22, 2015>
Article 1 (Enforcement Date)
This Act shall enter into force six months after the date of its promulgation. (Proviso Omitted.)
Articles 2 through 6 Omitted.
ADDENDA <Act No. 13489, Aug. 11, 2015>
Article 1 (Enforcement Date)
This Act shall enter into force four months after the date of its promulgation.
Article 2 (Applicability to Limited Liability Loans)
The amended provisions of Article 9 (5) shall begin to apply with the first application for a loan to purchase a housing unit not bigger than the size of a national housing unit or quasi-housing filed after this Act enters into force.
ADDENDA <Act No. 13499, Aug. 28, 2015>
Article 1 (Enforcement Date)
This Act shall enter into force four months after the date of its promulgation.
Articles 2 through 16 Omitted.
ADDENDA <Act No. 13805, Jan. 19, 2016>
Article 1 (Enforcement Date)
This Act shall enter into force on August 12, 2016.
Articles 2 through 22 Omitted.
ADDENDA <Act No. 14567, Feb. 8, 2017>
Article 1 (Enforcement Date)
This Act shall enter into force one year after the date of its promulgation.
Articles 2 through 40 Omitted.
ADDENDA <Act No. 14569, Feb. 8, 2017>
Article 1 (Enforcement Date)
This Act shall enter into force one year after the date of its promulgation.
Articles 2 through 9 Omitted.
ADDENDUM <Act No. 14865, Aug. 9, 2017>
This Act shall enter into force on the date of its promulgation.
ADDENDUM <Act No. 15121, Nov. 28, 2017>
This Act shall enter into force six months after the date of its promulgation.
ADDENDUM <Act No. 15458, Mar. 13, 2018>
This Act shall enter into force six months after the date of its promulgation.
ADDENDA <Act No. 15489, Mar. 20, 2018>
Article 1 (Enforcement Date)
This Act shall enter into force on the date of its promulgation. (Proviso Omitted.)
Articles 2 through 7 Omitted.
ADDENDA <Act No. 15782, Sep. 18, 2018>
Article 1 (Enforcement Date)
This Act shall enter into force on January 1, 2019.
Article 2 (Transitional Measures concerning Operation of Surplus Funds)
HUG shall obtain approval from the Minister of Land, Infrastructure and Transport within three months from the date this Act enters into force, in regard to the surplus funds operated in the manner described in the amended provisions of subparagraphs 3 and 4 of Article 28-2 as at the time this Act enters into force.
ADDENDUM <Act No. 16392, Apr. 23, 2019>
This Act shall enter into force three months after the date of its promulgation: Provided, That the amended provisions of Articles 9 (2) 2-2 and 22 (1) shall enter into force on the date of the promulgation.
ADDENDUM <Act No. 16499, Aug. 20, 2019>
This Act shall enter into force on the date of its promulgation.
ADDENDUM <Act No. 17453, Jun. 9, 2020>
This Act shall enter into force on the date of its promulgation. (Proviso Omitted.)
ADDENDUM <Act No. 18316, Jul. 20, 2021>
This Act shall enter into force on the date of its promulgation.
ADDENDA <Act No. 19316, Mar. 28, 2023>
Article 1 (Enforcement Date)
This Act shall enter into force six months after the date of its promulgation.
Article 2 (Applicability to Disclosure of Names of Habitual Defaulters)
The amended provisions of Article 34-5 shall begin to apply where claims for reimbursement of HUG arise after this Act enters into force. Article 3 (Special Cases concerning Requirements for Disclosing Names of Habitual Defaulters)
A lessor's failure to fulfill the liability to return a deposit for a lease that arises before this Act enters into force shall be included in any determination as to whether the requirements for disclosing names, etc. under the amended provisions of Article 34-5 (1) 2 are met.