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ENFORCEMENT DECREE OF THE ACT ON THE FUND FOR REPAYMENT OF PUBLIC FUNDS

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ENFORCEMENT DECREE OF THE ACT ON THE FUND FOR REPAYMENT OF PUBLIC FUNDS

Presidential Decree No. 17822, Dec. 30, 2002

Amended by Presidential Decree No. 19513, Jun. 12, 2006 Presidential Decree No. 19806, Dec. 29, 2006

Presidential Decree No. 20653, Feb. 29, 2008

Article 1 (Purpose)

The purpose of this Decree is to provide for matters delegated by the Act on the Fund for Repayment of Public Funds as well as for those necessary for the enforcement thereof.

Article 2 (Definition of Debts of Fund for Redemption of Deposit Insurance Fund Bonds and Non-performing Loan Resolution Fund) The term "bonds which are provided for by Presidential Decree" used in subparagraph 1 of Article 2 of the Act on the Fund for Repayment of Public Funds (hereinafter referred to as the "Act") means the following bonds which the Financial Services Commission determines and publicly announces in consultation with the Minister of Strategy and Finance:

1. A bond with the par value of not more than thirty-three hundred billion won, which is bound to be redeemed out of the Non-performing Loan Resolution Fund established under the Act on the Efficient Disposal of Non-Performing Assets, etc. of Financial Institutions and the Establishment of Korea Asset Management Corporation (hereinafter referred to as the "Non-performing Loan Resolution Fund"); and

2. A bond with the par value of not more than the amount of money obtained by deducting that of any other bond provided in subparagraph 1 from forty-nine trillion won, which is bound to be redeemed out of the Fund for Redemption of Deposit Insurance Fund Bonds established under the Depositor Protection Act (hereinafter referred to as the "Fund for ENFORCEMENT DECREE OF THE ACT ON THE FUND FOR REPAYMENT OF PUBLIC FUNDS

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Redemption of Deposit Insurance Fund Bonds").

Article 3 (Financial Resources of Fund for Repayment of Public Funds) The term "funds provided for by Presidential Decree" used in Article 3 (2) 8 of the Act means funds received after the settlement among funds which are contributed to the Non-performing Loan Resolution Fund and the Fund for Redemption of Deposit Insurance Fund Bonds out of the Fund for Repayment of Public Funds (hereinafter referred to as the "Fund") under Article 4 (2) and (3) of the Act.

Article 4 (Entrustment of Affairs relating to Administration and Management of Fund)

(1) The Financial Services Commission shall entrust affairs relating to the administration and management of the Fund to the Governor of the Bank of Korea under Article 4 (5) of the Act.

(2) The Governor of the Bank of Korea shall report the details of raising and administration of the Fund of each month to the Financial Services Commission not later than the twentieth day of the following month. (3) The Governor of the Bank of Korea shall submit a report on the settlement of accounts of the Fund of each fiscal year to the Financial Services Commission together with the following documents not later than 20st February of the following fiscal year:

1. Documents relating to general conditions and analyses of the Fund;

2. Balance sheet;

3. Income statement;

4. Documents specifying revenues and expenditures in cash, such as revenue and expenditure accounts; and

5. Other documents related to the settlement of accounts of the Fund. (4) Except as provided in this Decree, matters necessary for the performance of affairs relating to the administration and management of the Fund by the Bank of Korea shall be determined by the Governor of the Bank of Korea with the approval of the Financial Services Commission.

Article 5 (Contribution to Fund)

(1) The term "ratio provided for by Presidential Decree" used in Article 5 (4) of the Act means 1/1000.

ENFORCEMENT DECREE OF THE ACT ON THE FUND FOR REPAYMENT OF PUBLIC FUNDS

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(2) The term "amount of money provided for by Presidential Decree" used in Article 5 (5) of the Act means the amount of money calculated by applying mutatis mutandis Article 16 (3) of the Enforcement Decree of the Depositor Protection Act, and the term "ratio provided for by Presidential Decree" means 1/1000.

(3) The amounts of money falling under Article 5 (4) and (5) of the Act shall, within three months after the expiration of each fiscal year, be contributed to the Fund from the special accounts for communication business and the special accounts for postal insurance, respectively. Article 6 (Plan for Redemption of Principal on Public Funds) Specifications of and plans for the redemption of public funds which the Financial Services Commission submits to the National Assembly under Article 8 of the Act shall include specifications of the redemption of public funds in the year in question as well as public funds subject to the redemption and plans for raising financial resources for such redemption in the following year. Article 7 (Institutions to Lend Funds Temporarily) The term "institutions provided for by Presidential Decree" used in Article 9 of the Act means insured financial institutions provided in the Depositor Protection Act.

Article 8 (Fund Administration Council)

(1) The Fund Administration Council established under Article 10 of the Act (hereinafter referred to as the "Council") shall be composed of ten or less members, including one Chairperson.

(2) The Chairperson shall be the vice chairperson of the Financial Services Commission.

(3) The members shall be the following persons:

1. A Grade public official of the Financial Services Commission or public official in general service belonging to the Senior Civil Service who is in charge of the management of the Fund;

2. A Grade public official of the Ministry of Strategy and Finance or public official in general service belonging to the Senior Civil Service who is appointed by the Minister of Planning and Budget;

3. A person who is deemed to have much professional knowledge and ENFORCEMENT DECREE OF THE ACT ON THE FUND FOR REPAYMENT OF PUBLIC FUNDS

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experience on the management or administration of the funds and who is appointed by the Financial Services Commission;

4. An Assistant Governor of the Bank of Korea in charge of the management of the funds;

5. An executive of the Korea Deposit Insurance Corporation in charge of the management of the Fund for Redemption of Deposit Insurance Fund Bonds; and

6. An executive of the Korea Asset Management Corporation in charge of the management of the Non-performing Loan Resolution Fund. (4) The term of office of each member falling under paragraph (3) 3 shall be two years.

(5) As used in Article 10 (2) 5 of the Act, the term "matters provided for by Presidential Decree" means changes in disbursement items subject to consultation with the Minister of Strategy and Finance under Article 29 (4) of the Enforcement Decree of the State Finance Act. (6) Except as provided in this Decree, matters necessary for the operation of the Council shall be determined by the Chairperson in accordance with a resolution of the Council.

ADDENDUM

This Decree shall enter into force on January 1, 2003: Provided, That Article 5 shall do so on January 1, 2004.

ADDENDA Article 1 (Enforcement Date)

This Decree shall enter into force on July 1, 2006. Articles 2 through 4 Omitted.

ADDENDA Article 1 (Enforcement Date)

This Decree shall enter into force on January 1, 2007. Articles 2 through 5 Omitted.

ADDENDA ENFORCEMENT DECREE OF THE ACT ON THE FUND FOR REPAYMENT OF PUBLIC FUNDS

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Article 1 (Enforcement Date)

This Decree shall enter into force on the on the date of its promulgation. (Proviso Omitted.)

Article 2 Omitted.