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STATUTES

THE REPUBLIC OF KOREA

Volume

ACT ON REAL NAME FINANCIAL TRANSACTIONS AND CONFIDENTIALITY

Article 1 (Purpose)

The purpose of this Act is to realize economic justice and to facilitate the sound development of national economy by implementing real name financial transactions and ensuring the confidentiality thereof through normalized financial transactions.

[This Article Wholly Amended on Jul. 14, 2011]

Article 2 (Definitions)

The definitions of terms used in this Act are defined as follows: <Amended on May 29, 2016>

1. The term "financial companies, etc." means:

(a) Banks under the Banking Act;

(b) The Industrial Bank of Korea under the Industrial Bank of Korea Act;

Article 1 ~ 2

Korea Development Bank under the Korea Development Bank Act;

(d) The Export-Import Bank of Korea established under the Export-Import Bank of Korea Act;

(e) The Bank of Korea under the Bank of Korea Act;

(f) An investment trader, investment broker, collective investment business entity, trust business entity, financial securities company, merchant bank, and a transfer agency company under the Financial Investment Services and Capital Markets Act;

(g) Mutual savings banks and the Federation of Savings Banks under the Mutual Savings Banks Act;

(h) Cooperatives, the National Agricultural Cooperative Federation, and NongHyup Bank under the Agricultural Cooperatives Act;

(i) Cooperatives, the National Federation of Fisheries Cooperatives, and Suhyup Bank under the Fisheries Cooperatives Act;

(j) Credit unions and the National Credit Union Federation under the Credit Unions Act;

(k) Community credit cooperatives and the Korean Federation

Article 2

under the Community Credit Cooperatives Act;

(l) Insurance companies under the Insurance Business Act;

(m) Communications agencies under the Postal Savings and Insurance Act;

(n) Other institutions prescribed by Presidential Decree;

2. The term "financial assets" means cash and securities, such as demand deposits, installment deposits, installments, fraternity dues, depositary receipts, investments, trust property, stocks, bonds, beneficiary certificates, contribution quotas, bills, checks and debt certificates that are dealt with by financial companies, etc., and other similar items prescribed by Ordinance of the Prime Minister;

3. The term "financial transactions" means transactions in which financial companies, etc. receive, sell and purchase, repurchase, mediate, discount, issue, redeem, return, are entrusted with, register, or exchange financial assets, or in which financial companies, etc. pay interest, money discounted, or dividends of those financial assets or carry out such payment as an agent, or other transactions involving financial assets prescribed Ordinance of the Prime Minister;

Article 2

4. The term "real name" means a name entered in a resident registration card, a name entered in a business registration certificate, or any other name prescribed by Presidential Decree.

[This Article Wholly Amended on Jul. 14, 2011]

Article 3 (Financial transactions under real name)

(1) Financial companies, etc. shall perform financial transactions with customers under their real names.

(2) Notwithstanding the provisions of paragraph (1), financial companies, etc. need not to verify real names of the customers concerned in case of any transactions falling under any of the following subparagraphs:

1. Continuous transactions by accounts in which the real names of the customers have been verified, and transactions such as receipt of public impositions and transfers of not more than one million won, as prescribed by Presidential Decree;

2. Transactions such as the purchase of foreign currency, receipt of deposits in foreign currency or transfers of bonds in foreign currency, during the period prescribed by Presidential Decree;

3. Transactions of bonds that fall under any of the following (hereinafter referred to as "specific bonds") and are issued under

Article 3

the issue tms such as the piod of issue, intest rate, and maturity as determined by the Minister of Finance and Economy between the enforcement date (December 31, 1997) of the Act on Real Name Financial Transactions and Confidentiality (Act No. 5493) and December 31, 1998:

(a) Bonds issued for employment stabilization, improvement of workers' vocational abilities and livelihood stabilization prescribed by Presidential Decree;

(b) Bonds in foreign currency that are foreign exchange equalization fund bonds referred to in Article 13 of the Foreign Exchange Transactions Act;

(d) Corporate bonds issued by a securities finance company under Article 329 of the Financial Investment Services and Capital Markets Act;

(e) Other bonds issued for the stabilization of people's livelihood and the sound development of the national economy, as determined by Presidential Decree.

(3) No person shall perform financial transactions under the real name of another

Article 3

person for the purpose of concealing illegitimate property under subparagraph 4 of Article 2 of the Act on Reporting and Using Specified Financial Transaction Information, money laundering under subparagraph 5 of the aforementioned Article or financing of terrorism and evading compulsory execution under subparagraph 6 of the aforesaid Article, and other evasions of the law. <Added on May 28, 2014; Mar. 24, 2020>

(4) No person that works at a financial company, etc. shall render services for or arrange financial transactions under paragraph (3). <Added on May 28, 2014>

(5) Financial assets held in the account that is identified under the real name of the account owner pursuant to paragraph (1) or in the account that is identified under the real name of the owner by means similar thereto pursuant to the relevant statutes or regulations of foreign countries shall be presumed to be owned by the account owner. <Added on May 28, 2014>

(6) Any financial company, etc. shall explain the main content referred to in paragraph (3) to customers according to the method prescribed by the Financial Services Commission. <Added on May 28, 2014>

(7) Methods and procedures for identifying real name transactions, entrustment of the task of identifying real name transactions and other necessary matters shall be prescribed by Presidential Decree. <Amended on May 28, 2014>

Article 3

[This Article Wholly Amended on Jul. 14, 2011]

Article 4 (Confidentiality of financial transactions)

(1) No person working for a financial company, etc. shall provide or reveal information or data concerning the contents of financial transactions (hereinafter referred to as "transaction information, etc.") to other persons unless he or she receives a request or consent in writing from the holder of a title deed (in case of trust, meaning a truster or beneficiary), and no person may request a person working for a financial company, etc. by fraud or other improper means or methods to provide transaction information, etc.; provided, the same shall not apply in any of the following cases in which the said transaction information, etc. is requested or provided to the minimum limit necessary for the purpose of use thereof: <Amended on May 28, 2013; Nov. 26, 2019; Dec. 29, 2020; Apr. 1, 2025>

1. Provision of transaction information, etc. by a court order to produce evidence, or by a warrant issued by a judge;

2. Provision of tax data that must be submitted under tax-related Acts, and provision of transaction information, etc. necessary for the heads of the competent agencies to confirm inherited or donated property, confirm evidence to show a suspicion of tax evasion, inquire into the property of taxpayers in arrears (including a person falling under any of the following items deemed suspicious of concealing the

Article 4

property of a taxpayer in arrears, in case of a person with unpaid taxes of at least 50 million won), or make inquiries and investigation under tax-related Acts due to the cause falling under any subparagraph of Article 9 (1) of the National Tax Collection Act:

(a) Spouse of a taxpayer in arrears (including a person in a de facto marital relationship);

(b) Blood relatives of the taxpayer in arrears within the sixth degree of relationship;

3. Provision of transaction information, etc. by the Governor of the Financial Supervisory Service (referring to the Governor of the Financial Supervisory Service under Article 24 of the Act on the Establishment, etc. of Financial Services Commission; hereinafter the same shall apply) and the President of the Korea Deposit Insurance Corporation (referring to the President of the Korea Deposit Insurance Corporation under Article 3 of the Depositor Protection Act; hereinafter the same shall apply), as necessary for the legislative investigation of state affairs under the Act on the Inspection and Investigation of State Administration, through a resolution by the relevant investigation committee;

4. Provision of

Article 4

transaction inormation, etc. necessary or the Financial Services Commission (referring to the Securities Futures Commission in the case of investigation of unfair trades in the securities or derivatives markets; hereafter the same shall apply in this Article), the Governor of the Financial Supervisory Service and the President of the Korea Deposit Insurance Corporation to supervise and inspect financial companies, etc., where it falls under any of the following and where it is to be presented to the relevant investigation committee pursuant to subparagraph 3:

(a) Where it is necessary to investigate inside transactions and unfair transaction practices;

(b) Where it is necessary to detect financial misconduct such as embezzlement of deposits from customers or cash withdrawal after receiving payments without sources;

(c) Where it is necessary to investigate unsound financial transaction practices such as receipt of compulsory deposits and pre-issuance of cashier's checks;

(d) Where it is necessary to investigate the violation of Acts and subordinate statutes such as a violation of real name financial transactions, off-book transactions, loans for contributors, or excessive loans to one person;

Article 4

(e) Where it is necessary for the deposit insurance services under the Depositor Protection Act and to carry out the functions of making a list of depositors by the President of the Korea Deposit Insurance Corporation under the Act on the Structural Improvement of the Financial Industry;

5. Provision of transaction information, etc. necessary for business inside any financial company, etc. or between financial companies, etc.;

6. Provision of transaction information, etc. that is necessary for the Financial Services Commission and the Governor of the Financial Supervisory Service to cooperate with foreign financial supervisory institutions (including international financial supervisory bodies; hereinafter the same shall apply), which perform the work equivalent to the Commission's or Service's work, in facilitating their work cooperation on the matters falling under each of the following:

(a) The supervision and inspection of financial companies, etc. and the overseas branches, local corporations, etc. of the financial companies, etc.;

(b) The cooperation in facilitating the exchange, inspection, etc. of information provided for in Article 437 of the Financial Investment Services and Capital Markets Act;

Article 4

7. Provision of transaction information, etc. that is held by investment traders and investment brokers and is needed by the Korea Exchange that is established pursuant to the Financial Investment Services and Capital Markets Act (hereinafter referred to as the "Korea Exchange") in the case falling under each of the following:

(a) Where the investigation of any abnormal trading or the supervision of members is performed pursuant to Article 404 of the Financial Investment Services and Capital Markets Act;

(b) Where it is necessary to cooperate with any foreign exchange, etc. that performs the work equivalent to the work of the Korea Exchange in connection with the investigation of any abnormal trading or the supervision of members; provided, the same shall apply only in cases where prior approval therefor is obtained from the Financial Services Commission;

8. Other provision of transaction information, etc. under Acts that must be disclosed to many and unspecified persons under the relevant Acts.

(2) A person who requests transaction information, etc. pursuant to paragraph (1) 1 through 4 or 6 through 8 shall do so at a specified business place of a financial company, etc. by means of the standard form as stipulated by the Financial Services Commission containing information provided in the following subparagraphs;

Article 4

provided, in the event that anyone intends to request the provision of transaction information, etc. under paragraph (1) 1 or transaction information, etc. under paragraph (1) 2, both of which are concerned with a person who is recognized to be suspected of having evaded the income tax or the corporate tax, which is corroborated by indisputable data on his or her holding period of real estate (including any right to such real estate; hereafter in this paragraph the same shall apply), the number of his or her real estate, the scale of his or her transaction of real estate, his or her ways of executing real estate transaction, etc. in connection with the real estate transaction prescribed by Presidential Decree, and are necessary to confirm the fact of his or her evading taxes (including any person who has acted as an agent or a broker for the transaction of the relevant real estate), or to request the provision of transaction information, etc. that is necessary to inquire about the property of any defaulter whose arrearage amounts to not less than 10 million won as prescribed by Presidential Decree, he or she may request the department that keeps and manages such transaction information, etc. to provide such information, etc.:

1. Personal information on the holder of a title deed;

2. Trade period subject to a request;

3. Legal ground for a request;

4. Purpose of the use of information;

Article 4

5. Contents of transaction information, etc. requested;

6. Personal information, such as the names, duties, etc., of the person in charge and the responsible person in the institution to be requested.

(3) Where persons working for financial companies, etc. receive a request for the provision of transaction information, etc. in violation of paragraph (1) or (2), they shall refuse it.

(4) No person who comes to know transaction information, etc. pursuant to each subparagraph of paragraph (1) [including Article 5 (1) 1 through 4 of the former Real Name Financial Transactions Act (referring to the Act that had been in force before it was repealed by the Presidential Financial and Economic Emergency Order (Order No. 16) and each subparagraph of Article 4 (1) of the Presidential Financial and Economic Emergency Order on Real Name Financial Transactions and Confidentiality (referring to the Order that had been in force before it was repealed by Act No. 5493; hereinafter the same shall apply)] shall provide or disclose such information, etc. to other persons, or use such information, etc. for other purposes than the original purpose, and no person shall request a person who comes to know such information, etc. by fraud or other improper means or methods to provide such information, etc.; provided, the same shall not apply in cases where the Financial Services Commission or the Governor of the Financial Supervisory Service provides any foreign financial supervisory institution with the transaction information, etc. that it or

Article 4

he o she has leaned pusuant to paagaph (1) 4 and 6 o the Korea Exchange provides any foreign exchange, etc. with any transaction information, etc. pursuant to paragraph (1) 7. <Amended on May 28, 2013; Apr. 1, 2025>

(5) Persons who have any transaction information, etc. provided or disclosed in violation of paragraph (1) or (4) (including those who have obtained such transaction information, etc. again from them) shall not provide or disclose such information, etc. to others where they come to know such violation.

(6) Where provision of transaction information, etc. is requested pursuant to any of the following Acts, it shall be based upon the standard form as stipulated by the Financial Services Commission under paragraph (2), notwithstanding the provisions of the relevant Acts: <Amended on Mar. 24, 2020>

1. Article 27 (2) of the Board of Audit and Inspection Act;

2. Article 52 (2) of the Political Funds Act;

3. Article 8 (5) of the Public Service Ethics Act;

4. Deleted. <Dec. 29, 2020>

5. Article 83 (1) of the Inheritance Tax and Gift Tax Act;

6. Article 13 (3) of the Act on Reporting and Using Specified Financial Transaction Information;

7. Article 6 (1)

Article 4

of the Act on the Submission and Management of Taxation Data.

[This Article Wholly Amended on Jul. 14, 2011]

[Simple unconstitutionality, 2020 Constitutional Act No. 5, 2022.2.24, formerly the Act on Financial Secrecy Transactions and Confidentiality (amended by Act No. 16651 of November 26, 2019, and amended by Act No. 17758 of December 29, 2020), Article 4 (1), "No person shall require a person engaged in a financial company to provide transaction information, etc." and Article 6 (1) of that Act, "No person shall require a person engaged in a financial company to provide transaction information, etc. The part of Article 4 (1) of the Act on Financial Real Name Transactions and Secrecy (as amended by Act No. 17758 of December 29, 2020) that states that "No person shall require a person engaged in a financial company to provide transaction information, etc." and the above part of Article 6 (1) of that Act are unconstitutional].

Article 4-2 (Notice of fact of providing transaction information)

(1) Where financial companies, etc. has provided transaction information, etc. with the written consent of the holder of a title deed, or has provided it pursuant to Article 4 (1) 1, 2 (excluding taxable data, etc. that shall be submitted under the tax-related Acts), 3 and 8, the financial companies, etc. shall notify in writing the holder of the title deed of the major contents, purpose of use, person provided, date of provision, etc., within 10 days from the date of such provision (where such notice is deferred under paragraph (2) or (3), the date on

Article 4-2

which the deferred period of notice expires).

(2) Where financial companies, etc. receive a written request for a deferment of notice from a requester for transaction information, etc. subject to notice on the grounds falling under any of the following subparagraphs, the financial companies, etc. shall defer such notice for the requested deferment period (six months where the deferment of notice has been requested for six months or longer on the grounds of subparagraph 2 or 3), notwithstanding the provisions of paragraph (1):

1. Where the relevant notice carries a matter of concern about threatening the safety of human life or body;

2. Where the relevant notice carries a matter of obvious concern about obstructing the progress of a fair judicial process such as destruction of evidence or threat to witness;

3. Where the relevant notice carries a matter of obvious concern about obstructing, or delaying to excess, the progress of administrative procedures such as an interrogation or investigation.

(3) Where a requester for transaction information, etc. presents that the reason falling under any subparagraph of paragraph (2) is continued and repeatedly requests in writing a deferment of notice, financial companies, etc. shall defer such notice for the requested deferment period within the limit of three months

Article 4-2

for each time, limited to only twice from the date of such request (excluding the case of paragraph (2) 1); provided, where a requester for transaction information, etc. under Article 4 (1) 2 (excluding taxable data, etc. that shall be submitted under the tax-related Acts) requests a deferment of notice, it shall defer such notice for the requested deferment period within the limit of six months from the date of request each time it is requested.

(4) Expenses spent by financial companies, etc. to notify the title holder of the fact of provision of transaction information, etc. under paragraph (1) shall be borne by anyone who has requested provision of such transaction information, etc. pursuant to Article 4 (1), as prescribed by Presidential Decree.

(5) Where provision of transaction information, etc. is requested pursuant to any of the following Acts, paragraphs (1) through (4) shall be applicable:

1. Article 27 (2) of the Board of Audit and Inspection Act;

2. Article 52 (2) of the Political Funds Act;

3. Article 8 (5) of the Public Service Ethics Act;

4. Deleted; <Dec. 29, 2020>

5. Article 83 (1) of the Inheritance Tax and Gift Tax Act;

6. Article 6 (1)

Article 4-2

of the Act on the Submission and Management of Taxation Data.

[This Article Wholly Amended on Jul. 14, 2011]

Article 4-3 (Record and management of details concerning provision of transaction information)

(1) Financial companies, etc. shall record and manage, pursuant to the standard form as stipulated by the Financial Services Commission, information containing each of the following subparagraphs, in cases where it has provided transaction information, etc. to other persons than the holder of a title deed with his or her written consent, has received a request for provision of transaction information, etc. from other persons than the holder of a title deed pursuant to Article 4 (1) 1, 2 (excluding taxable data, etc. that shall be submitted under the tax-related Acts), 3, 4, 6, 7 or 8 or has provided transaction information, etc. to other persons than the holder of a title deed: <Amended on Aug. 13, 2013; Dec. 11, 2018>

1. Personal information on a requester (person in charge and responsible person), details and date of such request;

1-2. Purpose of the use of information (excluding cases where transaction information, etc. is provided to other persons than the holder of a title deed with his or her written consent);

2. Personal information

Article 4-3

on a provider (person in charge and responsible person) and the date of provision;

3. Details of transaction information, etc. provided;

4. Legal grounds for provision;

5. Date on which the financial company, etc. has notified the holder of the title deed;

6. Where notice is deferred, the date of and grounds for deferring the notice, and the period and number of such deferment.

(2) Records under paragraph (1) shall be preserved for five years from the date of provision of transaction information, etc. (where such provision has been refused, the date of receiving a request for such provision).

(3) Where provision of transaction information, etc. is requested pursuant to any of the following Acts, paragraphs (1) and (2) shall be applicable: <Amended on Mar. 24, 2020>

1. Article 27 (2) of the Board of Audit and Inspection Act;

2. Article 52 (2) of the Political Funds Act;

3. Article 8 (5) of the Public Service Ethics Act;

4. Deleted; <Dec. 29, 2020>

Article 4-3

5. Article 83 (1) of the Inheritance Tax and Gift Tax Act;

6. Article 13 (3) of the Act on Reporting and Using Specified Financial Transaction Information;

7. Article 6 (1) of the Act on the Submission and Management of Taxation Data.

[This Article Wholly Amended on Jul. 14, 2011]

Article 4-4 (Duties of Financial Services Commission)

The Financial Services Commission shall ascertain and analyze the current status on demand for, provision of, notice of and deferment of such notice of transaction information, etc. under this Act or other statutes, and at the request of the National Assembly, submit a report thereon to the National Assembly. <Amended on Aug. 13, 2013; Dec. 11, 2018>

[This Article Wholly Amended on Jul. 14, 2011]

Article 5 (Differential taxation on income accruing from non-real name assets)

With respect to the income from interest and dividends accruing from financial assets transacted under non-real names, the withholding tax rate for income tax shall be 90/100 [20/100 (15/100 on and after January 1, 2001) for the income from interest arising from specific bonds], and such income shall not be included

Article 4-4 ~ 5

in the calculation of tax base for global income referred to in Article 14 (2) of the Income Tax Act.

[This Article Wholly Amended on Jul. 14, 2011]

Article 5-2 (Administrative measures)

(1) Where the Financial Services Commission discovers that financial companies, etc. violate this Act, or orders or instructions under this Act, it may take measures falling under any of the followings or require the head of a related administrative agency having the authority to impose administrative sanctions on the business of the relevant financial company, etc. to take such measures:

1. Orders to correct or stop an offense;

2. Orders to officially announce or post a notice of the fact that the financial company, etc. has been subject to measures due to an offense;

3. Warning to an organization;

4. Caution to an organization.

(2) Where financial companies, etc. fall under any of the followings, the Financial Services Commission may require the financial companies, etc. to suspend all or any part of its business or require the head of a related administrative agency having the authority to impose administrative sanctions on the business of the relevant financial companies, etc. to take such measures:

Article 5-2

1. Where it fails to comply with orders under paragraph (1) 1 and 2;

2. Where it receives a warning to an organization under paragraph (1) 3 at least three time;

3. Where it is likely to undermine considerably healthy financial transactional order or interest of customers because it violates this Act or orders or instructions under this Act.

(3) Where the Financial Services Commission discovers that an executive officer or employee of a financial company, etc. has violated this Act or orders or instructions under this Act, it may require the head of the relevant financial companies, etc. to take measures in accordance with the following classification:

1. Executive officer: Measures falling under any of the followings:

(a) Release from office;

(b) Suspension from office within six months;

(d) Cautionary warning;

Article 5-2

(e) Caution;

2. Employee: Measures falling under any of the followings:

(a) Dismissal from office;

(b) Suspension from office within six months;

(d) Reprimand;

(e) Caution.

(4) The head of a related administrative agency who receives a request under paragraph (1) or (2) shall comply with such request unless there is justifiable ground.

[This Article Added on May 28, 2014]

Article 6 (Penalty provisions)

(1) A person that violates the provisions of Article 3 (3) or (4), Article 4 (1) or (3) through (5) shall be punished by imprisonment with labor for not more than five years or by a fine not exceeding 50 million won. <Amended on May 28, 2014>

(2) Penalty of imprisonment with labor and fines pursuant to paragraph (1) may be concurrently imposed.

Article 6

[This Article Wholly Amended on Jul. 14, 2011]

Article 7 (Administrative fines)

(1) An administrative fine not exceeding 30 million won shall be imposed on an executive officer or employee of a financial company, etc. who violates Article 3, 4-2 (1) and (5) (limited to cases where Article 4-2 (1) applies) or 4-3. <Amended on May 28, 2014>

(2) Administrative fines pursuant to paragraph (1) shall be imposed and collected by the Financial Services Commission, as prescribed by Presidential Decree.

[This Article Wholly Amended on Jul. 14, 2011]

Article 7

Article 8 (Joint penalty provisions)

If the representative of a legal entity, or an agent, an employee, or any other employed person of a legal entity or an individual commits an act of violation under Article 6 or 7 in connection with the business of the legal entity or the individual, not only shall such an actor be punished accordingly, but also the legal entity or the individual shall be punished by a fine or an administrative fine under the same Article; provided, this shall not apply in cases where the legal entity or the individual has not neglected to supervise that business with due care in order to prevent the act of violation.

[This Article Wholly Amended on Jul. 14, 2011]

Article 9 (Relationship to other statutes)

(1) Where this Act conflicts with other statutes, this Act shall apply.

(2) Notwithstanding the provisions of paragraph (1), at the time the Presidential Financial and Economic Emergency Order on Real Name Financial Transactions and Confidentiality enters into force, statutes applied in preference to the said Presidential Financial and Economic Emergency Order shall apply in preference to this Act.

[This Article Wholly Amended on Jul. 14, 2011]

Article 10 (Entrustment of authority)

Article 8 ~ 10

The Financial Services Commission may entrust part of its authority under this Act to the Governor of the Financial Supervisory Service, as prescribed by Presidential Decree.

[This Article Added on Jan. 26, 2021]

ADDENDA <Act No. 5493, Dec. 31, 1997>

Article 1 (Enforcement date)

This Act shall enter into force on the date of its promulgation.

Article 2 (Repeal of emergency order)

The Presidential Financial and Economy Emergency Order on Real Name Financial Transactions and Guarantee of Secrecy (hereinafter referred to as the "Emergency Order") shall be hereby repealed.

Article 3 (General transitional measures)

Except as otherwise provided by this Act, the guarantee of secrecy in financial transactions, conversion of assumed or borrowed name for financial assets into real ones and taxation at the source of income from financial assets prior to the entry into force of this Act shall be governed by the previous Emergency Order.

Article 4 (Transitional measures on penalty provisions)

Addenda

The application of penalty provisions and administrative fines to acts committed prior to the entry into force of this Act shall be governed by the previous Emergency Order.

Article 5 (Verification of real names for existing financial assets)

(1) For holders of title deed for financial assets whose real names are not verified before the entry into force of this Act from among financial assets for which financial accounts have been opened prior to the entry into force of the previous Emergency Order (hereinafter referred to as "existing financial assets"), financial institutions shall verify whether any name is real when the first financial transactions are executed after the entry into force of this Act.

(2) Financial institutions shall not pay, redeem, refund or repurchase existing financial assets which are not verified pursuant to paragraph (1) or for which it is confirmed that they are not real names.

(3) The provisions of Articles 7 and 8 shall apply mutatis mutandis to cases in which the officers or employees of financial institutions violate the provisions of paragraph (1) or (2). In this case, the term "Article 3" of Article 7 (1) shall be deemed to read "Article 5 (1) or (2) of the Addenda".

Article 6 (Imposition of charges on those who have converted into real names)

Addenda

(1) Financial institutions shall collect withholding taxes as charges at the source of the amount calculated by applying 50/100 to the value of financial assets as of the date of entry into force of the previous Emergency Order and pay them to the Government by the 10th day of the fol- lowing month in which they are collected, where customers with existing financial assets convert their names into real ones after the entry into force of this Act.

(2) Where it is deemed difficult for customers with existing financial assets to convert their names into real ones for any cause as determined by the Presidential Decree but where they convert their names into real ones within one month from the date on which such cause disappears, charges shall not be imposed notwithstanding the provisions of paragraph (1).

(3) Where, in case of paragraph (1), charges collected or to be collected by financial institutions are not paid in full within the time limit, the Minister of Finance and Economy shall collect additional dues equivalent to 10/100 of the charges, plus unpaid charges, from the financial institutions.

(4) The Minister of Finance and Economy may delegate the functions on the collection, payment, delinquent disposition and refund of charges and additional dues referred to in paragraphs (1) and (3) (hereinafter referred to as "collection") to the Commissioner of the National Tax Ad- ministration.

(5) The National Tax Collection Act, the Framework Act on National Taxes and

Addenda

the Income Tax Act shall apply mutatis mutanis with respect to the collection of charges and additional dues referred to in paragraphs (1) and (3). In this case, the term "national taxes" shall be deemed to read "charges".

Article 7 (Taxation at source for income tax on real name-converted assets)

(1) For interest and dividend income derived from existing financial as- sets converted into real names after the entry into force of this Act, financial institutions shall collect withholding taxes at the source of the total amount of deficiencies in withholding taxes referred to in any of the following subparagraphs, and shall pay them to the Government by the 10th day of the following month:

1. Balance when the existing income tax amount collected at the source is deducted from the amount of withholding taxes at the source of income calculated by applying the withholding tax rate referred to in Article 5 for interest and dividend income derived after the entry into force of this Act;

2. Balance when the existing income tax amount collected at the source is deducted from the amount of withholding taxes at the source of income calculated by applying the withholding tax rate referred to in Article 9 of the previous Emergency Order for interest and dividend income derived before the entry into force of this Act from October 13, 1993; and

Addenda

3. Amount of withholding taxes at the source of income tax calculated pursuant to Article 8 (1) of the previous Emergency Order for interest and dividend income derived until October 12, 1993.

(2) The amount of income tax collected at the source pursuant to para- graph (1) shall be within the limit of the value of financial assets concerned as of the date of conversion into real names.

(3) The provisions of Article 158 (1) of the Income Tax Act shall not apply where financial institutions tax at the source for income tax and pay it pursuant to paragraph (1).

Article 8 (Special cases for tax investigations on real name-converted financial assets)

(1) Notwithstanding tax Acts, investigations shall not be made into the source of funds for existing financial assets converted into real names after the entry into force of this Act, and obligations to pay taxes which arose prior to the entry into force of the previous Emergency Order based on the tax data for financial assets concerned shall not be imposed: Pro- vided, That this shall not apply in any of the following subparagraphs:

1. Where the financial assets have been converted into the real name of a person of less than thirty years of age and the value exceeds thirty million won;

Addenda

2. Where taxes are imposed based on the tax data other than the financial assets.

(2) Financial institutions shall notify the Commissioner of the National Tax Administration of the converted contents on the financial assets referred to in paragraph (1) 1 as determined by the Presidential Decree.

(3) The provisions of paragraph (1) shall also apply to financial assets which have been converted into real names and reported to the Commissioner of the National Tax Administration prior to the entry into force of this Act.

Article 9 (Special cases for tax investigations on transactions of specific bonds)

Notwithstanding tax Acts, investigations shall not be made into the source of funds for bearers of specific bonds, and obligations to pay taxes which arose prior to the purchase of such bonds based on the tax data shall not be imposed; provided, this shall not apply where taxes are imposed based on the tax data other than the funds which purchased the bonds.

Article 10 (Special cases for tax investigations on small and medium business investments)

(1) Where any resident referred to in Article 1 of the Income Tax Act falls under any of the following subparagraphs during the period

Addenda

as determined by the Presidential Decree, investigations shall not be made into the sources of funds in connection with such contributions or investments for such funds notwithstanding tax Acts, and obligations to pay taxes which arose prior to the contribution or investment based on the tax data shall not be imposed; provided, this shall not apply where taxes are imposed based on the tax data other than the funds contributed or in vested:

1. Where he or she contributes to any small and medium business (limited to juristic persons) as determined by the Presidential Decree;

2. Where he or she contributes to any small and medium enterprise establishment investment company, small and medium enterprise establishment investment association or other similar juristic person or association under the Support for Small and Medium Enterprise Establishment Act, as determined by the Presidential Decree;

3. Where he or she contributes to any financial institution which provides assisting funds to small and medium businesses as determined by the Presidential Decree;

4. Where he or she converts beneficiary certificates of any venture business investment trust referred to in Article 13-3 (1) 2 of the Act on Regulation of Tax Reduction and Exemption.

(2) Any resident who intends to be subject to the provisions of paragraph (1)

Addenda

3 shall contribute imposts on contribution (hereinafter referred to as "contribution imposts") to any credit guarantee institution as determined by the Presidential Decree.

(3) The provisions of the main sentence of paragraph (1) shall not apply in cases falling under any of the following subparagraphs:

1. Where a person of less than thirty years of age contributes or invests;

2. Where he or she contributes or invests in the method of transfer of another's contribution quotas or beneficiary certificates;

3. Where he or she falls under any of the following subparagraphs before 5 years have elapsed from the date of contribution or investment; provided, this shall not apply due to the contributor's or investor's death or other causes as determined by the Presidential Decree:

(a) Where he or she transfers or recovers his or her contribution quatos referred to in paragraph (1) 1 through 3;

(b) Where he or she transfers beneficiary certificates of any venture business investment trust referred to in paragraph (1) 4, or a management company referred to in Article 2 (3) of the Securities Investment Trust

Addenda

Business Act repurchases the beneficiary certificates.

4. Where it is deemed that he has contributed or invested to evade taxes, as determined by the Presidential Decree.

(4) The contribution imposts referred to in paragraph (2) shall be an amount calculated by applying the following bearing rates to respective amounts of contributions:

10/100 of the amount of investment not exceeding one billion won;

100 million won over 10 billion won + 15/100 of the amount over 10 billion won.

(5) Other matters necessary for contribution method of contribution imposts shall be prescribed by Presidential Decree.

Article 11 (Promoting real name financial transactions and total taxation)

Organizations in exclusive charge established under Article 11 of the previous Emergency Order shall exist until the time as prescribed by the Presidential Decree.

Article 12 Deleted.

Article 13 (Amendment to other Acts and relations with other statutes)

Addenda

(1) through (7) Omitted.

(8) Where any other statute or regulation cites the previous Emergency Order or any provisions of the previous Emergency Order as at the time this Act enters into force, this Act or the corresponding provisions of this Act, if any, shall be deemed to be cited in lieu of the previous provisions.

Article 14 (Applicability to amendment of Other Acts)

(1) The amended provisions of the Inheritance Tax and Gift Tax Act as referred to in Article 13 (3) of the Addenda shall be begin to apply from the inheritance tax or gift tax determined for the first time after this Act enters into force.

(2) The amended provisions of the Act on Special Tax for Rural Development under Article 13 (7) of the Addenda shall apply to the payment of income derived for the first time after January 1, 1998.

ADDENDA <Act No. 5552, Sep. 16, 1998>

Article 1 (Enforcement date)

This Act shall enter into force on the first day of the month following the month to which the date of its promulgation belongs.

Article 2 Omitted.

Article 3 Omitted.

Addenda

Article 4 (Examples of application pursuant to amendment of other statutes)

(1) Omitted.

(2) The amended provisions of the Act on Real Name Financial Transactions and Guarantee of Secrecy as prescribed in Article 3 (2) of the Addenda shall apply to the portion of income paid on or after the date this Act enters into force: Provided, That for bonds, etc. under Article 46 (1), it shall apply to the portion issued on or after the date this Act enters into force.

ADDENDA <Act No. 6051, Dec. 28, 1999>

Article 1 (Enforcement date)

This Act shall enter into force on January 1, 2000; provided, the amendment provisions of Articles 14, 62 and 129, and the amended provisions of Article 12 of the Addenda of the Act on Real Name Financial Transactions and Guarantee of Secrecy under the provisions of Article 6 (2) of the Addenda shall enter into force on January 1, 2001, and the amended provisions of Articles 81 (1) and 87 (2) shall enter into force on the date of its promulgation.

Article 2 (General Applicability)

This Act shall apply

Addenda

to the portion of income which accrues on or after the date this Act enters into force; provided, the amended provisions of Articles 14, 62 and 129, and the provisions of Article 12 of the Addenda of the the Act on Real Name Financial Transactions and Guarantee of Secrecy under the provisions of Article 6 (2) of the Addenda shall apply to the portion of income which accrues and is paid on or after January 1, 2001, and the amended provisions of Articles 81 (1) and 87 (2) shall apply to the portion of the first taxable period belonging to the date on which this Act is promulgated.

Articles 3 through 5 Omitted.

Article 6 Omitted.

Article 7 (Application Example following Amendment of Other Acts)

The amended provisions of the Act on Special Rural Development Tax under Article 6 (1) of the Addenda and the amended provisions of Article 5 of the Act on Real Name Financial Transactions and Guarantee of Secrecy under Article 6 (2) of the Addenda shall apply to the portion of income accrued and paid for the first time after this Act enters into force shall apply. In such cases, the tax rate (15/100 respectively) applied after January 1, 2001 shall apply to the portion of income accruing and paid after January 1, 2001.

ADDENDA <Act No. 6062, Dec. 28, 1999>

Article 1 (Enforcement date)

Addenda

This Act shall enter into force on March 1, 2000.

Article 2 Omitted.

Article 3 Omitted.

ADDENDA <Act No. 6429, Mar. 28, 2001>

Article 1 (Enforcement date)

This Act shall enter into force on the date as prescribed by the Presidential Decree within the limit not exceeding two years from the date of its promulgation. (Proviso Omitted.)

Articles 2 through 11 Omitted.

ADDENDUM <Act No. 6682, Mar. 30, 2002>

This Act shall enter into force on July 1, 2002.

ADDENDUM <Act No. 7115, Jan. 29, 2004>

This Act shall enter into force six months after the date of its promulgation.

ADDENDA <Act No. 7189, Mar. 12, 2004>

Article 1 (Enforcement date)

This Act shall enter into force on the date of its promulgation.

Addenda

Articles 2 through 18 Omitted.

ADDENDUM <Act No. 7886, Mar. 24, 2006>

This Act shall enter into force three months after the date of its promulgation.

ADDENDA <Act No. 8635, Aug. 3, 2007>

Article 1 (Enforcement date)

This Act shall enter into force one year and six months after the date of its promulgation. (Proviso Omitted.)

Articles 2 through 43 Omitted.

ADDENDA <Act No. 8863, Feb. 29, 2008>

Article 1 (Enforcement date)

This Act shall enter into force on the date of its promulgation.

Articles 2 through 5 Omitted.

ADDENDUM <Act No. 9324, Dec. 31, 2008>

This Act shall enter into force on the date of its promulgation.

Addenda

ADDENDA <Act No. 10303, May 17, 2010>

Article 1 (Enforcement date)

This Act shall enter into force six months after the date of its promulgation. (Proviso Omitted.)

Articles 2 through 10 Omitted.

ADDENDA <Act No. 10522, Mar. 31, 2011>

Article 1 (Enforcement date)

This Act shall enter into force on March 2, 2012. (Proviso Omitted.)

Articles 2 through 28 Omitted.

ADDENDA <Act No. 10854, Jul. 14, 2011>

Article 1 (Enforcement date)

This Act shall enter into force on the date of its promulgation; provided, the amended provisions of subparagraph 1 (k) of Article 2 shall take effect on September 9, 2011; and the amended provisions of Articles 4 (6) 2, 4-2 (5) 2, and 4-3 (3) 2, three months after the date of its promulgation.

Article 2 (Applicability to Request, etc. for Provision of Transaction Information, etc. under the Political Funds Act)

Addenda

The amended provisions of Articles 4 (6) 2, 4-2 (5) 2, and 4-3 (3) 2 shall apply to a request for transaction information, etc. that is made on or after the enforcement date of this Act.

Article 3 Omitted.

ADDENDA <Act No. 11845, May 28, 2013>

Article 1 (Enforcement date)

This Act shall enter into force three months after the date of its promulgation. (Proviso Omitted.)

Articles 2 through 17 Omitted.

ADDENDUM <Act No. 12098, Aug. 13, 2013>

This Act shall enter into force one month after the date of its promulgation.

ADDENDA <Act No. 12711, May 28, 2014>

Article 1 (Enforcement date)

This Act shall enter into force 6 months after the date of its promulgation.

Article 2 (Transitional Measures concerning Penal Provisions or Fines for Negligence)

Addenda

When penal provisions or the provisions on fines for negligence apply to any act performed before this Act enters into force, the former provisions shall apply thereto.

ADDENDA <Act No. 14242, May 29, 2016>

Article 1 (Enforcement date)

This Act shall enter into force on December 1, 2016. (Proviso Omitted.)

Articles 2 through 22 Omitted.

ADDENDUM <Act No. 15929, Dec. 11, 2018>

This Act shall enter into force 6 months after the date of its promulgation.

ADDENDUM <Act No. 16651, Nov. 26, 2019>

This Act shall enter into force one month after the date of its promulgation.

ADDENDA <Act No. 17113, Mar. 24, 2020>

Article 1 (Enforcement date)

This Act shall enter into force one year after the date of its promulgation.

Articles 2 through

Addenda

6 Omitted.

ADDENDA <Act No. 17758, Dec. 29, 2020>

Article 1 (Enforcement date)

This Act shall enter into force on January 1, 2021.

Articles 2 through 25 Omitted.

ADDENDA <Act No. 17799, Dec. 29, 2020>

Article 1 (Enforcement date)

This Act shall enter into force one year after the date of its promulgation. (Proviso Omitted.)

Articles 2 through 26 Omitted.

ADDENDUM <Act No. 17914, Jan. 26, 2021>

This Act shall enter into force 6 months after the date of its promulgation.

ADDENDUM <Act No. 20894, Apr. 1, 2025>

This Act shall enter into force on the date of its promulgation.

Addenda

ACT ON REAL NAME FINANCIAL TRANSACTIONS AND CONFIDENTIALITY
- Articles
- Addenda

1. 금융실명거래 및 비밀보장에 관한 법률

2025-04-01 / 제20894호 / 시행 2025-04-01
ACT ON REAL NAME FINANCIAL TRANSACTIONS AND CONFIDENTIALITY

2. 금융실명거래 및 비밀보장에 관한 법률

2019-11-26 / 제16651호 / 시행 2019-12-27
ACT ON REAL NAME FINANCIAL TRANSACTIONS AND CONFIDENTIALITY

3. 금융실명거래 및 비밀보장에 관한 법률

2018-12-11 / 제15929호 / 시행 2019-06-12
ACT ON REAL NAME FINANCIAL TRANSACTIONS AND CONFIDENTIALITY

4. 금융실명거래 및 비밀보장에 관한 법률

2016-05-29 / 제14242호 / 시행 2016-12-01
ACT ON REAL NAME FINANCIAL TRANSACTIONS AND CONFIDENTIALITY

5. 금융실명거래 및 비밀보장에 관한 법률

2014-05-28 / 제12711호 / 시행 2014-11-29
ACT ON REAL NAME FINANCIAL TRANSACTIONS AND CONFIDENTIALITY

6. 금융실명거래 및 비밀보장에 관한 법률

2013-08-13 / 제12098호 / 시행 2013-09-14
ACT ON REAL NAME FINANCIAL TRANSACTIONS AND CONFIDENTIALITY

7. 금융실명거래 및 비밀보장에 관한 법률

2013-05-28 / 제11845호 / 시행 2013-08-29
ACT ON REAL NAME FINANCIAL TRANSACTIONS AND CONFIDENTIALITY

8. 금융실명거래 및 비밀보장에 관한 법률

2011-07-14 / 제10854호 / 시행 2011-10-15
ACT ON REAL NAME FINANCIAL TRANSACTIONS AND CONFIDENTIALITY

9. 금융실명거래 및 비밀보장에 관한 법률

2011-03-31 / 제10522호 / 시행 2012-03-02
ACT ON REAL NAME FINANCIAL TRANSACTIONS AND CONFIDENTIALITY

10. 금융실명거래 및 비밀보장에 관한 법률

2010-05-17 / 제10303호 / 시행 2010-11-18
ACT ON REAL NAME FINANCIAL TRANSACTIONS AND CONFIDENTIALITY

11. 금융실명거래 및 비밀보장에 관한 법률

2008-12-31 / 제9324호 / 시행 2008-12-31
ACT ON REAL NAME FINANCIAL TRANSACTIONS AND CONFIDENTIALITY

12. 금융실명거래 및 비밀보장에 관한 법률

2008-02-29 / 제8863호 / 시행 2008-02-29
ACT ON REAL NAME FINANCIAL TRANSACTIONS AND CONFIDENTIALITY

13. 금융실명거래 및 비밀보장에 관한 법률

2007-08-03 / 제8635호 / 시행 2009-02-04
ACT ON REAL NAME FINANCIAL TRANSACTIONS AND CONFIDENTIALITY

14. 금융실명거래 및 비밀보장에 관한 법률

2006-03-24 / 제7886호 / 시행 2006-06-25
ACT ON REAL NAME FINANCIAL TRANSACTIONS AND CONFIDENTIALITY

15. 금융실명거래 및 비밀보장에 관한 법률

2004-03-12 / 제7189호 / 시행 2004-03-12
ACT ON REAL NAME FINANCIAL TRANSACTIONS AND CONFIDENTIALITY

16. 금융실명거래 및 비밀보장에 관한 법률

2004-01-29 / 제7115호 / 시행 2004-07-30
ACT ON REAL NAME FINANCIAL TRANSACTIONS AND CONFIDENTIALITY

17. 금융실명거래 및 비밀보장에 관한 법률

2002-03-30 / 제6682호 / 시행 2002-07-01
ACT ON REAL NAME FINANCIAL TRANSACTIONS AND CONFIDENTIALITY

18. 금융실명거래 및 비밀보장에 관한 법률

2001-03-28 / 제6429호 / 시행 2002-03-01
ACT ON REAL NAME FINANCIAL TRANSACTIONS AND CONFIDENTIALITY

19. 금융실명거래 및 비밀보장에 관한 법률

1999-12-28 / 제6062호 / 시행 2000-03-01
ACT ON REAL NAME FINANCIAL TRANSACTIONS AND CONFIDENTIALITY

20. 금융실명거래 및 비밀보장에 관한 법률

1999-12-28 / 제6051호 / 시행 2000-01-01
ACT ON REAL NAME FINANCIAL TRANSACTIONS AND CONFIDENTIALITY

21. 금융실명거래 및 비밀보장에 관한 법률

1998-09-16 / 제5552호 / 시행 1998-10-01
ACT ON REAL NAME FINANCIAL TRANSACTIONS AND CONFIDENTIALITY

22. 금융실명거래 및 비밀보장에 관한 법률

1997-12-31 / 제5493호 / 시행 1997-12-31
ACT ON REAL NAME FINANCIAL TRANSACTIONS AND CONFIDENTIALITY