ENFORCEMENT DECREE OF THE ACT ON THE CREDIT GUARANTEE FOR FARMERS AND FISHERS
Presidential Decree No. 5638, May 15, 1971
Amended by Presidential Decree No. 6848, Sep. 8, 1973
Presidential Decree No. 8477, Mar. 8, 1977
Presidential Decree No. 10330, jun. 5, 1981
Presidential Decree No. 13157, Nov. 8, 1990
Presidential Decree No. 13656, jun. 1, 1992
Presidential Decree No. 14438, Dec. 23, 1994
Presidential Decree No. 14669, jun. 17, 1995
Presidential Decree No. 14830, Dec. 14, 1995
Presidential Decree No. 15135, Aug. 8, 1996
Presidential Decree No. 16368, May 27, 1999
Presidential Decree No. 16646, Dec. 28, 1999
Presidential Decree No. 17312, Jul. 24, 2001
Presidential Decree No. 20653, Feb. 29, 2008
Presidential Decree No. 20854, jun. 20, 2008
Presidential Decree No. 21484, May 6, 2009
Presidential Decree No. 21774, Oct. 8, 2009
Presidential Decree No. 21847, Nov. 26, 2009
Presidential Decree No. 22493, Nov. 15, 2010
Presidential Decree No. 23088, Aug. 19, 2011
Presidential Decree No. 23488, Jan. 6, 2012
Presidential Decree No. 23535, Jan. 25, 2012
Presidential Decree No. 24195, Nov. 23, 2012
Presidential Decree No. 24435, Mar. 23, 2013
Presidential Decree No. 25450, Jul. 7, 2014
Presidential Decree No. 26425, Jul. 20, 2015
Presidential Decree No. 29088, Aug. 7, 2018
Presidential Decree No. 29723, Apr. 30, 2019
Presidential Decree No. 30893, Aug. 4, 2020
Presidential Decree No. 31380, Jan. 5, 2021
Presidential Decree No. 32449, Feb. 17, 2022
Presidential Decree No. 33495, May 30, 2023
[This Article Wholly Amended on Aug. 19, 2011]
| Article 2 (Scope of Farmers and Fishermen, etc.) |
| (2) | "Agricultural, forestry and fishery organizations as prescribed by Presidential Decree" in Article 2 (1) 6 of the Act means persons under the following subparagraphs: <Amended on Jul. 24, 2001; Feb. 29, 2008; Jun. 20, 2008; May 6, 2009; Oct. 8, 2009; Aug. 19, 2011; Mar. 23, 2013> |
| 5. | Agricultural associations and agricultural companies prescribed in the Act on Fostering and Supporting Agricultural and Fisheries Entities; |
| 6. | Fisheries associations and fisheries companies prescribed in the Act on Fostering and Supporting Agricultural and Fisheries Entities; |
| 7. | Corporations employing 150 or fewer full-time employees, among fishery owners referred to in the Fisheries Act; |
| 8. | Organizations of producers of agricultural, forestry and fishery products, where persons referred to in Article 2 (1) 1, 2 or 4 of the Act hold a majority of voting rights; |
| 9. | Other organizations that contribute to the development of the agriculture, forestry and fisheries, which are determined and publicly announced by the Financial Services Commission in consultation with the Minister of Agriculture, Food and Rural Affairs or the Minister of Oceans and Fisheries. |
| (4) | "Persons prescribed by Presidential Decree" in Article 2 (1) 7 of the Act means any of the following persons, among persons conducting the business of distributing and processing agricultural, forestry and fishery products: <Amended on Jul. 24, 2001; Feb. 29, 2008; Nov. 26, 2009; Aug. 19, 2011; Mar. 23, 2013; Jul. 7, 2014; Apr. 30, 2019> |
| 2. | Organizations for distributing and processing agricultural, forestry and fishery products where persons prescribed in subparagraph 1 hold a majority of voting rights; |
| 4. | Other persons deemed necessary for strengthening the competitiveness of agricultural, forestry and fishery industries and designated by the Financial Services Commission in consultation with the Minister of Agriculture, Food and Rural Affairs or the Minister of Oceans and Fisheries. |
| (5) | "Small and medium enterprises manufacturing tools and materials necessary for the production related to the agricultural, forestry and fishery industries, as prescribed by Presidential Decree" in Article 2 (1) 9 of the Act means persons manufacturing tools and materials falling under any of the following subparagraphs: <Amended on Aug. 19, 2011; Apr. 30, 2019> |
| 1. | Tools and materials necessary for agricultural and forestry industries, such as fertilizers, agricultural chemicals, agricultural machinery, feeds, and facility materials; |
| 2. | Tools and materials necessary for fishery industry, such as fishing boats and fishing tackle. |
| (6) | "Salt producers as prescribed by Presidential Decree" prescribed in Article 2 (1) 10 of the Act mean persons falling under any of the following subparagraphs: <Newly Inserted on Aug. 19, 2011; Nov. 23, 2012; Mar. 23, 2013; Apr. 30, 2019> |
| 2. | Salt producers under subparagraph 14 of Article 2 of the Salt Industry Promotion Act, who are deemed necessary for strengthening the competitiveness of the salt industry and designated by the Financial Services Commission in consultation with the Minister of Oceans and Fisheries. |
| (7) | "Person prescribed by Presidential Decree" referred to in Article 2 (1) 11 of the Act means any of the following persons: <Newly Inserted on Jul. 20, 2015; Apr. 30, 2019> |
| 2. | Next-generation agricultural or fisheries enterprisers selected under Article 10 of the Act on Fostering and Supporting Agricultural and Fisheries Entities; |
| (8) | "Entities ... prescribed by Presidential Decree" in Article 2 (1) 12 of the Act means any of the following entities: <Newly Inserted on Apr. 30, 2019> |
[This Article Wholly Amended on May 27, 1999]
| Article 2-2 Deleted. <May 27, 1999> |
| Article 3 (Agricultural, Forestry and Fishery Funds) |
"Funds as prescribed by Presidential Decree" in Article 2 (3) of the Act means the following funds: <Amended on Jul. 20, 2015; Apr. 30, 2019; Jan. 5, 2021> | 1. | Funds necessary for developing agriculture, such as farming funds, funds for planting and growing of fruit trees, etc., stock farming funds, sericultural funds, etc., financed to a person specified in Article 2 (1) 1 of the Act; |
| 2. | Funds necessary for developing fisheries, such as fisheries funds and funds for building fishing boats, etc., financed to a person specified in Article 2 (1) 2 of the Act; |
| 4. | Funds necessary for developing forestry, such as forestation funds and funds for installing nursery gardens, etc., financed to a person specified in Article 2 (1) 4 of the Act; |
| 5. | Funds necessary for installing facilities for after-sales service on agricultural machinery or securing parts for after-sales service on agricultural machinery financed to a person specified in Article 2 (1) 5 of the Act; |
| 6. | Funds for projects necessary to achieve the objectives of establishment of the relevant organizations financed to a person specified in Article 2 (1) 6 of the Act; |
| 7. | Funds necessary for distributing and processing agricultural, forestry and fishery products financed to a person specified in Article 2 (1) 7 of the Act; |
| 8. | Funds necessary for exporting agricultural, forestry and fishery products and their processed products financed to a person specified in Article 2 (1) 8 of the Act; |
| 9. | Funds necessary for manufacturing tools and materials for agricultural, forestry and fishery products financed to a person specified in Article 2 (1) 9 of the Act; |
| 11. | Funds necessary for settlement and business start-up such as purchasing farmland, stables, fishing vessels, or houses, financed to a person specified in Article 2 (1) 11 of the Act; |
| 12. | Funds necessary for developing the agriculture and fisheries convergence industry financed to a person specified in Article 2 (1) 12 of the Act. |
[This Article Wholly Amended on Aug. 19, 2011]
| Article 4 (Members who are Representatives of Agricultural, Forestry and Fishery Business Circles) |
| (1) | Where the term of office of a member prescribed in Article 3 (2) 9 of the Act expires, the Financial Services Commission shall commission the successor at least 20 days prior to the expiration of such term of office. <Amended on Jul. 24, 2001; Aug. 19, 2011; Jul. 7, 2014> |
| (2) | The initial date of reckoning the term of office of a successor commissioned under paragraph (1) shall be the date immediately following the date on which the term of office of the predecessor expire. <Amended on Mar. 8, 1977> |
| Article 5 (Convocation of Commission) |
| (1) | Meetings of a credit guarantee commission for farmers and fishermen (hereinafter referred to as the "Commission") prescribed in Article 3 (1) of the Act shall be convened by the head of the management institution (hereinafter referred to as "management institution") prescribed in Article 5 (2) of the Act as necessary or at the request of a majority of the incumbent members of the Commission. <Amended on Jul. 24, 2001> |
| (2) | When the chairperson of the Commission is unable to perform his/her duties due to unavoidable reasons, the staff attending on behalf of the chairperson under the provisions of Article 3 (5) of the Act shall act on behalf of the chairperson <Amended on Jul. 24, 2001> |
[Title Amended on Jul. 24, 2001]
| (1) | The head of the management institution shall draw up the bills of the Commission. |
| (2) | The head of the management institution shall notify the members of the bills under paragraph (1) three days prior to the opening of a meeting: Provided, That this shall not apply in cases of emergency. <Amended on Mar. 8, 1977> |
| Article 7 (Methods of Passing Resolution) |
Meetings of the Commission shall be held with the attendance of a majority of the incumbent members, and resolutions shall be passed with the approval of a majority of members present. <Amended on May 27, 1999>
| Article 8 (Statements of Opinions) |
| (1) | Executives and employees of the management institution may attend meetings of the Commission to state their opinions. |
| (2) | The Commission may, where necessary, invite related persons to hear their opinions. |
| Article 9 (Restrictions on Participation in Meetings) |
No member of the Commission may participate in the deliberation of any bill in which the member himself/herself, his/her spouse, an organization to which the member himself/herself or his/her spouse belongs, or a person related to the member himself/herself within the fourth degrees of consanguinity or within the second degrees of affinity, is directly interested.
| Article 9-2 (Monetary Obligations Related to Commercial Transactions) |
"Monetary obligations as prescribed by Presidential Decree" in Article 4 (3) 2 of the Act means monetary obligations which farmers and/or fishermen, etc. (hereinafter referred to as "farmers and fishermen, etc.") prescribed in Article 2 (1) of the Act assume in conducting commercial transactions with any of the following persons: <Amended on Jul. 24, 2001; Aug. 19, 2011> | 2. | Other persons separately designated by the Commission, who is deemed necessary for developing agriculture, forestry and fisheries and as having public confidence. |
[This Article Newly Inserted on May 27, 1999]
| Article 9-3 (Operation of Surplus Funds) |
"Financial institutions as prescribed by Presidential Decree" in Article 7 (2) 3 of the Act means the following financial institutions: <Amended on May 6, 2009; Aug. 19, 2011> [This Article Newly Inserted on May 27, 1999]
| Article 10 (Applications for Credit Guarantees) |
| (1) | Any person who intends to apply for a credit guarantee under Article 8 (2) of the Act shall submit an application to the management institution through the financial institution from which he/she intends to obtain the loan. |
| (2) | Any person who intends to obtain a credit guarantee under the provisions of Article 8-2 of the Act shall submit an application for credit guarantee to the management institution: Provided, That where a person who will be the creditor is a financial institution, an applicant shall submit the application through the financial institution. <Newly Inserted on May 27, 1999> |
| Article 11 (Credit Guarantee) |
Where the management institution which has received the application for a credit guarantee under Article 10 guarantees the credit of farmers and fishermen, etc., it shall issue the credit guarantee to the person to be the relevant creditor. <Amended on Mar. 8, 1977; May. 27, 1999>
| Article 11-2 (Limit of Guarantee) |
| (1) | The limit on the total credit guarantee amount under the provisions of Article 10 (1) of the Act shall be 20 times that of the Fund. <Amended on July 24, 2001; Jul. 20, 2015> |
| (2) | The upper limits on the total credit guarantee amount allowed to be provided by the management institution for the same farmers and fishermen, etc. under the provisions of Article 10 (3) of the Act shall be governed by the following classifications: Provided, That where the Financial Services Commission deems it necessary for developing agriculture, forestry, and fisheries or the national economy, another upper limits may be determined through resolutions by the Commission: <Newly Inserted on Jul. 20, 2015; Aug. 7, 2018> |
| 1. | Where farmers and fishermen, etc. are private persons: 1.5 billion won; |
| 2. | Where farmers and fishermen, etc. are corporations: 2 billion won. |
[This Article Newly Inserted on Dec. 14, 1995]
| Article 11-3 (Entrustment of Business Affairs) |
| (1) | Where the management institution entrusts business affairs pursuant to Article 10-2 of the Act, it shall do so according to the following classifications: <Amended on May 6, 2009; Aug. 19, 2011; Aug. 4, 2020; Feb. 17, 2022> |
| 1. | Financial institutions: Business affairs prescribed in subparagraphs 2 through 4 and 6 (limited to business affairs incidental to business affairs falling under the provisions of subparagraphs 2 through 4 of that Article) of Article 5-2 of the Act; |
| 2. | The Korea Asset Management Corporation under the Act on the Establishment of Korea Asset Management Corporation or a credit information company and a claims collection agency under the Credit Information Use and Protection Act: Business affairs prescribed in subparagraphs 4 and 6 (limited to business affairs incidental to business affairs prescribed in subparagraph 4 of that Article) of Article 5-2 of the Act. |
| (2) | When the management institution has entrusted business affairs under paragraph (1), it shall notify the Financial Services Commission thereof. <Amended on Feb. 29, 2008> |
[This Article Newly Inserted on July 24, 2001]
| Article 11-4 (Processing of Sensitive Information and Personally Identifiable Information) |
| (1) | To conduct the following affairs, the management institution (including any person who is entrusted with the business of the management institution pursuant to Article 11-3) may, if necessary, process the information related to any criminal history prescribed in subparagraph 2 of Article 18 of the Enforcement Decree of the Personal Information Protection Act, and materials in which any resident registration number, passport number, driver's license number, or alien registration number is stated pursuant to Article 19 of that Decree: |
| 1. | Affairs relating to the business affairs of the management institution prescribed in subparagraphs 1 through 4 and 6 of Article 5-2 of the Act; |
| 2. | Affairs relating to any financial institution's guaranty relationship on monetary obligations related to loans prescribed in Article 8 of the Act; |
| 3. | Affairs relating to any guaranty relationship on any other monetary obligations prescribed in Article 8-2 of the Act; |
| (2) | If unavoidable for the supervision prescribed in Article 14 of the Act and the follow-up measure thereon, the Financial Services Commission (including the person who is entrusted with affairs of the Financial Services Commission pursuant to Article 14 (4) of the Act), may handle materials containing personally identifiable information. |
[This Article Newly Inserted on Jan. 6, 2012]
| Article 12 (Fees for Guarantees) |
| (1) | The fees for guarantee which the management institution receives under the provisions of Article 11 of the Act shall be an amount of money computed by multiplying the amount guaranteed by the rate of the fees for guaranty. In such cases, the fees for guarantees shall not exceed two percent per annum. |
| (2) | When the management institution receives the fees for guarantee under the provisions of paragraph (1), it may apply the differential rate to the fees for guaranty taking the following matters into consideration: |
| 1. | Credit rating of a person entitled to the guarantee; |
| 2. | The amount guaranteed; |
| 4. | Operation circumstances of the Fund. |
| (3) | Detailed matters necessary for the collection of fees for guarantee under the provisions of paragraphs (1) and (2) shall be determined through resolutions of the Commission. |
[This Article Newly Inserted on May 27, 1999]
[Previous Article 12 moved to Article 14 <May 27, 2020>]
| Article 13 (Penalties for Breach of Contracts) |
| (1) | The penalties for breach of contract which the management institution collects under the provisions of Article 11-2 of the Act shall be the amount of money computed by multiplying the unfulfilled amount of the guaranteed obligation by the rate not exceeding two percent per annum. |
| (2) | The provisions of Article 12 (2) and (3) shall apply mutatis mutandis to the collection of penalties for breach of contract under the provisions of paragraph (1). |
[This Article Wholly Amended on May 27, 1999]
| Article 14 (Claims for Performance of Guaranteed Obligations) |
| (1) | The irrevocable debt of the credit amount under Article 12 of the Act shall be settled by the determination of irrevocable debts by the head of the management institution. <Amended on May 27, 1999; Jul. 7, 2014> |
| (2) | A creditor who intends to receive the determination of irrevocable debts under paragraph (1) shall submit to the management institution a written application for determination of irrevocable debts, attaching the documentary evidence necessary for settlement of such irrevocable debt. <Amended on May 27, 1999> |
| (3) | Deleted. <Jul. 7, 2014> |
| (4) | The management institution shall notify the creditor concerned of the result of the determination under paragraph (1). <Amended on May 27, 1999> |
| (5) | When the creditor intends to claim the performance of a guaranteed obligation under Article 12 of the Act, it shall submit to the management institution a written claim for the performance of a guaranteed obligation. <Amended on May 27, 1999> |
[This Article Wholly Amended on Jun. 17, 1995]
[Moved from Article 12 <May 27, 1999>]
| Article 15 (Request for Information and Cooperation) |
[This Article Newly Inserted on May 6, 2009]
| Article 16 (Sale of Claims for Indemnity) |
"Persons prescribed by Presidential Decree" in subparagraph 5 of Article 13-4 of the Act means companies in which the Korea Asset Management Corporation under the Act on the Establishment of Korea Asset Management Corporation has invested to perform the business affairs under Article 26 (1) 1 and 2 of that Act. [This Article Newly Inserted on May 30, 2023]
ADDENDUM <Presidential Decree No. 5638, May 15, 1971>
This Decree shall enter into force on the date of its promulgation.
ADDENDUM <Presidential Decree No. 6848, Sep. 8, 1973>
This Decree shall enter into force on the date of its promulgation.
ADDENDA <Presidential Decree No. 8477, Mar. 8, 1977>
| (1) | (Enforcement Date) This Decree shall enter into force on the date of its promulgation. |
| (2) | (Transitional Measures) The guaranteed obligation which has been materialized before this Decree enters into force shall be as prescribed by this Decree. |
ADDENDUM <Presidential Decree No. 10330, Jun. 5, 1981>
This Decree shall enter into force on the date of its promulgation.
ADDENDUM <Presidential Decree No. 13157, Nov. 8, 1990>
This Decree shall enter into force on the date of its promulgation.
ADDENDA <Presidential Decree No. 13656, Jun. 1, 1992>
| (1) | (Enforcement Date) This Act shall enter into force on the date of its promulgation. |
| (2) | (Applicability) The amended provisions of Article 13 shall apply beginning with the fee for guaranty for which the payment duty arises first after the enforcement of this Decree. |
ADDENDA <Presidential Decree No. 14438, Dec. 23, 1994>
| (1) | (Enforcement Date) This Act shall enter into force on the date of its promulgation. |
Articles 2 through 5 Omitted.
ADDENDA <Presidential Decree No. 14669, Jun. 17, 1995>
| (1) | (Enforcement Date) This Decree shall enter into force on the date of its promulgation. |
| (2) | (Applicability) The amended provisions of Article 13 shall apply beginning with the fee for guaranty for which the payment duty arises first after this Decree enters into force. |
ADDENDUM <Presidential Decree No. 14830, Dec. 14, 1995>
This Decree shall enter into force on the date of its promulgation.
ADDENDA <Presidential Decree No. 15135, Aug. 8, 1996>
| (1) | (Enforcement Date) This Decree shall enter into force on the date of its promulgation. |
Articles 2 through 8 Omitted.
ADDENDA <Presidential Decree No. 16368, May. 27, 1999>
| (1) | (Enforcement Date) This Decree shall enter into force on the date of its promulgation. |
| (2) | (Transitional Measure concerning Farmland Improvement Cooperative) Notwithstanding the amended provisions of Article 2 (2), the farmland improvement cooperative under the previous provisions of subparagraph 1 of Article 2 shall be deemed the agricultural, forestry and fishery organizations under the amended provisions under that Article and same paragraph by December 31, 1999. |
ADDENDA <Presidential Decree No. 16646, Dec. 28, 1999>
Article 1 (Enforcement Date)
This Decree shall enter into force on January 1, 2000.
Articles 2 through 4 Omitted.
ADDENDUM <Presidential Decree No. 17312, Jul. 24, 2001>
This Decree shall enter into force on the date of its promulgation.
ADDENDA <Presidential Decree No. 20653, Feb. 29, 2008>
Article 1 (Enforcement Date)
This Decree shall enter into force on the date of its promulgation: Provided, That from among Presidential Decree amended under Article 2 of the Addenda, the amendments which have been promulgated before this Decree enters into force but the enforcement dates of which have yet to arrive, shall enter into force on the enforcement date of the relevant Presidential Decree. Article 2 Omitted.
ADDENDA <Presidential Decree No. 20854, Jun. 20, 2008>
Article 1 (Enforcement Date)
This Decree shall enter into force on June 22, 2008.
Articles 2 through 6 Omitted.
ADDENDA <Presidential Decree No. 21484, May. 6, 2009>
Article 1 (Enforcement Date)
This Decree shall enter into force on May 7, 2009.
Article 2 (Transitional Measures)
"Credit information company" in the amended provisions of Article 11-3 (1) 2 shall be deemed "credit information business entity" by October 1, 2009.
ADDENDA <Presidential Decree No. 21774, Oct. 8, 2009>
Article 1 (Enforcement Date)
This Decree shall enter into force on the date of its promulgation.
Article 2 Omitted.
ADDENDA <Presidential Decree No. 21847, Nov. 26, 2009>
Article 1 (Enforcement Date)
This Decree shall enter into force on November 28, 2009.
Articles 2 through 6 Omitted.
ADDENDA <Presidential Decree No. 22493, Nov. 15, 2010>
Article 1 (Enforcement Date)
This Decree shall enter into force on November 18, 2010.
Articles 2 through 5 Omitted.
ADDENDA <Presidential Decree No. 23088, Aug. 19, 2011>
This Decree shall enter into force on the date of its promulgation: Provided, That the amended provisions of Article 2 (5) and subparagraph 10 of Article 3 shall enter into force on August 20, 2011.
ADDENDA <Presidential Decree No. 23488, Jan. 6, 2012>
Article 1 (Enforcement Date)
This Decree shall enter into force on the date of its promulgation. (Proviso Omitted.)
Article 2 Omitted.
ADDENDA <Presidential Decree No. 23535, Jan. 25, 2012>
Article 1 (Enforcement Date)
This Decree shall enter into force on January 26, 2012.
Articles 2 and 3 Omitted.
ADDENDA <Presidential Decree No. 24195, Nov. 23, 2012>
Article 1 (Enforcement Date)
This Decree shall enter into force on the date of its promulgation.
Articles 2 through 4 Omitted.
ADDENDA <Presidential Decree No. 24435, Mar. 23, 2013>
Article 1 (Enforcement Date)
This Decree shall enter into force on the date of its promulgation.
Articles 2 through 4 Omitted.
ADDENDA <Presidential Decree No. 25450, Jul. 7, 2014>
Article 1 (Enforcement Date)
This Decree shall enter into force on the date of its promulgation.
Articles 2 (Transitional Measures concerning Determination of Irrevocable Debts)
With respect to the determination of irrevocable debts where a written application for determination of irrevocable debts is filed pursuant to Article 14 (2) before this Decree enters into force, the previous provisions shall apply, notwithstanding the amended provisions of Article 14 (1) and (3).
ADDENDA <Presidential Decree No. 26425, Jul. 20, 2015>
Article 1 (Enforcement Date)
This Decree shall enter into force on July, 21, 2015.
Article 2 (Applicability concerning Upper Limits to Same Farmers and Fishermen, etc.)
The amended provisions of Article 11-2 (5) shall also apply to applications for credit guarantee filed by farmers and fishermen, etc. with the management institution before this Decree enters into force.
ADDENDUM <Presidential Decree No. 29088, Aug. 7, 2018>
This Decree shall enter into force on the date of its promulgation.
ADDENDUM <Presidential Decree No. 29723, Apr. 30, 2019>
This Decree shall enter into force on July 1, 2019.
ADDENDA <Presidential Decree No. 30893, Aug. 4, 2020>
Article 1 (Enforcement Date)
| (1) | This Decree shall enter into force on August 5, 2020. (Proviso Omitted.) |
Articles 2 through 4 Omitted.
ADDENDUM <Presidential Decree No. 31380, Jan. 5, 2021>
This Decree shall enter into force on the date of its promulgation. (Proviso Omitted.)
ADDENDA <Presidential Decree No. 32449, Feb. 17, 2022>
Article 1 (Enforcement Date)
This Decree shall enter into force on February 18, 2022.
Articles 2 and 3 Omitted.
ADDENDUM <Presidential Decree No. 33495, May 30, 2023>
This Decree shall enter into force on the date of its promulgation.