|
|
Home
| Databases
| WorldLII
| Search
| Feedback
Laws of the Republic of Korea |
1
ENFORCEMENT DECREE OF THE CREDIT UNIONS ACT
Wholly Amended by Presidential Decree No. 15753, Apr. 1, 1998 Amended by Presidential Decree. No. 16249, Apr. 19, 1999 Presidential Decree No. 16323, May 24, 1999
Presidential Decree No. 16857, Jun. 27, 2000
Presidential Decree No. 18113, Nov. 4, 2003
Presidential Decree No. 18297, Feb. 28, 2004
Presidential Decree No. 19010, Aug. 19, 2005
Presidential Decree No. 19422, Mar. 29, 2006
Presidential Decree No. 20142, Jun. 29, 2007
Presidential Decree No. 20230, Aug. 22, 2007
Presidential Decree No. 20653, Feb. 29, 2008
Article 1 (Purpose)
The purpose of this Decree is to provide for matters delegated by the Credit
Unions Act and those necessary for the enforcement
thereof.
Article 1-2 (Equity Capital)
The term "amount as specified by Presidential Decree" in subparagraph
9 of Article 2 of the Credit Unions Act (hereinafter referred
to as the
"Act") means an amount calculated by adding or subtracting the amount
of errors made on the settlement of accounts to
or from the aggregate
of capital, reserves, other surplus earnings, and similar of a credit union
(hereinafter referred to as "union").
[This Article Newly Inserted by Presidential Decree No. 16857, Jun. 27, 2000]
Article 2 (Registration of Establishment of Unions
and National
Federation)
(1) Every union or the National Credit Union Federation of Korea
(hereinafter referred to as the "National Federation" ) shall complete
registration of the following matters within three weeks from the day on
which the authorization letter is issued. 1. Purposes;
2. Name;
ENFORCEMENT DECREE OF THE CREDIT UNIONS ACT
2
3. Place of business;
4. Date of establishment;
5. Grounds for dissolution, if such grounds are stipulated;
6. Value per unit of invested capital and method for payment of such
invested capital;
7. Names, national identification numbers, and addresses of the union
president or the Chairperson of the National Federation (hereinafter
referred to as the "National Federation Chairperson" ) and the President
for credit and mutual aid services;
8. Names and national identification numbers of executives, except the
union president or the National Federation Chairperson and
the
President for credit and mutual aid services;
9. Method of public notification; and
10. Details of restriction on directors' power of representation, if such
restriction exists.
(2) The application for registration of establishment that shall be filed
in accordance with paragraph (1) shall be accompanied
by a copy of the
authorization letter for establishment, a copy of the articles of association,
documents certifying appointment
of directors, and copies of letters of
acceptance of appointment as an executive.
Article 3 (Registration of Establishment of Branch Offices)
Every union or the National Federation shall, when it establishes a
branch
office or a local chapter (hereinafter referred to as "branch office" ), register
the following matters with each of the
competent authorities stated below:
1. The address of the branch office and the date of establishment with
the registry office having jurisdiction over its principal
place of business
within two weeks; and
2. The matters under Article 2 (1) 1, 3, and 7, the address of the branch
office, and the date of establishment with the registry
office having
jurisdiction over the address of the branch office.
Article 4 (Registration of Changes)
(1) Whenever any change occurs in the matters registered in accordance
with subparagraphs of Article 2 (1), an application for registration
of such
change shall be filed with the registry office having jurisdiction over the
principal place of business. along with a document
certifying such change,
ENFORCEMENT DECREE OF THE CREDIT UNIONS ACT
3
within two weeks. Whenever any change occurs in the matters registered
in accordance with subparagraph 2 of Article 3, an application
for
registration of such change shall be filed also with the registry office having
jurisdiction over the branch office within
three weeks.
(2) When a union or the National Federation relocates its place of business
to any place over which another registry
office has jurisdiction, it shall,
within two weeks, complete the registration of the relocation with the
registry office having
jurisdiction over the former place of business and
the registration of the matters under subparagraphs of Article 2 (1) or
the
matters under subparagraph 2 of Article 3 with the registry office
having jurisdiction over the new place of business.
Article
5 (Registration of Merger or Split-off)
When a union is merged or split off in accordance with Article 55 of the
Act, it shall complete the registration of the merger or
split-off with the
registry office having jurisdiction over its principal place of business within
two weeks and the registration
of the change of the union surviving the
merger or split-off, the registration of dissolution of the union dissolving
upon the
merger, or the registration of the union newly established by
the merger or split-off within the registry office having the address
of
each branch office within three weeks.
Article 6 (Registration of Dissolution or Closing of Liquidation)
(1) When a union is dissolved, it shall complete the registration
of the
dissolution with the registry office having jurisdiction over its principal
place of business within two weeks and also
with the registry office having
jurisdiction over each branch office within three weeks.
(2) An application filed for the registration
of dissolution in accordance
with paragraph (1) shall be accompanied by the following documents:
1. A document proving the ground for dissolution; and
2. A document certifying the qualification of the applicant for registration
if the president is not the liquidator.
(3) When liquidation proceeding of a union is completed, it shall complete
the registration of the closing of liquidation with the
registry office having
jurisdiction over its principal place of business within two weeks from
the date on which its general meeting
approves the report on settlement
ENFORCEMENT DECREE OF THE CREDIT UNIONS ACT
4
of accounts in accordance with Article 59 of the Act and with the registry
office having jurisdiction over each branch office within
three weeks from
the above-stated date.
(4) Deleted.
(2) When the change under paragraph (1) occurs, the union concerned
shall notify the competent registry office of the change forthwith,
and the
registry office shall, upon receiving such notice, record such change in
the register.
Article 8 (Beginning of Time Period for Registration)
In cases where an authorization or approval by the Financial Services
Commission
or the National Federation Chairperson is required by any
provision of this Act to register a matter, the time period for such registration
shall begin on the day on which the letter of authorization or approval
is delivered to the applicant for registration.
(1) An application for the registration under any provision of Article 2
through 5 shall be filed by the union president for a union
or the Chairperson
for the National Federation.
(2) For the registration of dissolution in cases where such dissolution ensues
from the Financial Services Commission's revocation
of authorization for
establishment, the Financial Services Commission may designate an
employee of the National Federation as the
registration applicant to
authorize him/her to carry out such registration vicariously.
5
Federation Chairperson along with the following documents:
1. Articles of association;
2. Minutes of the inaugural general meeting;
3. Business plan;
4. Resumes of the representative of promoters and executives;
5. List of persons who have submitted a letter of consent to the
establishment in accordance with Article 7 (2) of the Act;
6. Location map of the place of business;
7. Minutes of the promoters' meeting; and
8. Other documents describing the matters relating to the establishment
of the union.
(2) In cases where a union is established by the split-off under Article
55 (1) of the Act, the minutes of the inaugural general
meeting under
paragraph (1) 2 may be substituted with the minutes of the general meeting
at which the split-off was resolved. In
such cases, the minutes of the general
meeting at which the split-off was resolved upon shall contain the resolution
on the rights
and obligations to which the union newly established shall
succeed.
(3) The National Federation Chairperson shall, upon receiving an
application for authorization for establishment pursuant to paragraph
(1),
forward it to the Financial Services Commission within 30 days along with
a written statement on his/her opinion attached
thereto.
(4) The time limit for the notice under Article 8 (2) of the Act on whether
an approval is granted shall not be more than 60 days
from the day on
which the Financial Services Commission receives documents for application
authorization submitted by the National
Federation.
Article 11 (Detailed Requirements for Authorizations)
(1) The detailed requirements for human resources, physical facilities,
and
business plan among the requirements for authorization for
establishment of a union under Article 8 (1) of the Act are as follows:
ENFORCEMENT DECREE OF THE CREDIT UNIONS ACT
6
1. Human resources:
(a) Neither a promoter (applicable only if a promoter is a private
individual) nor an executive shall fall under
the disqualifications
as an executive, as provided in Article 28 of the Act: and
(b) Executives shall complete the training course
conducted by the
National Federation Chairperson as necessary for establishment
of a union;
2. Physical facilities:
(a) Each union shall have an office with a floor area of not less than
30 square meters; and
(b) Each union shall have an electronic computer system compatible
with that of the National Federation's;
3. Business plan:
(a) The business plan shall be proper for carrying on business
continuously and the estimated financial statements
and forecasted
income for three years after commencement of the business shall
be feasible; and
(b) The method of raising a fund including the capital required for
the promotion of the business plan shall be suitable.
(2) A
merger of unions established on the basis of an administrative district,
an economic zone, or a habitate boundary as its common
bond (hereinafter
referred to as "local unions" ) shall be permitted only in cases where the
unions subject to the merger have
the common bond of the same Si/Gun/Gu
(Si shall be limited to those in which there is no Gu established; the same
shall apply hereinafter)
or in cases where a union exists in a Si/Gun/Gu
adjoining another Si/Gun/Gu in which another union is.
(1) The extent of a common bond under Article 9 (1) of the Act is as
follows: 1. Local unions: Eup/Myeong/Dong within the same Si/Gun/Gu: Provided,
That any Eup/Myeong/Dong that is not within the same Si/Gun/Gu
may also be included within the extent of a common bond in cases
ENFORCEMENT DECREE OF THE CREDIT UNIONS ACT
7
where it is recognized and approved by the Financial Services
Commission that unions are within the extent of a common bond because
their habitate boundaries or economic zones are close one another and
their administrative districts adjoin each other;
2. Workplace unions: In such cases, branch offices, subsidiary companies,
and subordinate institutions of the work-places concerned
may be
included in the extent of a common bond; and
3. Organization unions: The following organizations or legal entities:
(a) Religious organizations, including churches and temples;
(b) Market merchants' organizations;
(c) Incorporated associations the members of which have a close
cooperative relationship with one another: and
(d) Trade organizations comprised of members who hold a qualification
or license officially recognized by the State and authorized
by a
relevant statute.
(2) A religious organization falling under paragraph (1) 3 (a) may form
a common bond with another religious organization in the
same Si/Gun/Gu,
notwithstanding paragraph (1).
(1) Persons eligible for membership under Article 11 (1) of the Act are
as follows:
1. For a local union: A person (or an organization or a legal entity) whose
residence or abode within the common bond is stipulated
by articles
of association or a person who engages in his/her business within the
common bond; and
2. For a workplace union or an organization union: A person (or an
organization or a legal entity) who belongs to a workplace or
organization
stipulated by articles of association.
(2) The term "persons ...... specified by Presidential Decree" in Article
ENFORCEMENT DECREE OF THE CREDIT UNIONS ACT
8
11 (2) of the Act means the following persons: 1. A family member of a member (which means his/her spouse, lineal
ascendant or descendant within the same household; the same shall
apply hereinafter);
1-2. A person who is no longer within the common bond of a union because
of a merger or split-off of that union under Article 55
of the Act, the
assignment of contracts under Article 86-4 of the Act, or the adjustment
of extent of the common bond or the conversion
of type of the common
bond of the union;
2. An employee of the office of an organization or his/her family member;
3. An employee of a union or his/her family member;
4. A workplace to which the union belongs (or an organization within
such a workplace); and
5. An employee of a business that a union member runs in connection
with a specific trade, in cases where a union that is based on
a common
bond of an organization for the specific trade.
Article 14 (Unions Required to Have Standing President)
Unions shall have a president appointed in accordance with the proviso
to Article 27 (6) of the Act shall be local unions and organization unions
whose total assets calculated by the average balance
as of the immediately
preceding business year amount to 30 billion or more: Provided, That an
organization union under Article
12 (1) 3 (d) may resolve not to have
such a standing president.
[This Article Wholly Amended by Presidential Decree No. 16857, Jun. 27, 2000]
Article 15 (Scope of Finance-Related Statues)
The term "finance-related statute as prescribed by Presidential Decree"
under Article 28 (1) 4 of the Act means any of the following
statutes:
1. The Act on the Structural Improvement of the Financial Industry;
2. The Banking Act;
3. The Long-Term Credit Bank Act;
4. The Merchant Banks Act;
5. The Trust Business Act;
6. The Securities and Exchange Act;
ENFORCEMENT DECREE OF THE CREDIT UNIONS ACT
9
7. The Futures Trading Act;
8. The Indirect Investment Asset Management Business Act;
9. The Insurance Business Act;
10. The Mutual Savings Banks Act;
11. The Specialized Credit Financial Business Act;
12. The Use and Protection of Credit Information Act;
13. The Special Purpose Companies for Mortgage-Backed Bonds Act;
14. The Agricultural Cooperatives Act;
15. The Fisheries Cooperatives Act;
16. The Forestry Cooperatives Act;
17. The Community Credit Cooperatives Act; and
18. The Korea Housing Finance Corporation Act.
(2) The term "person ...... prescribed by Presidential Decree" in Article
28 (1)
7-2 of the Act means an executive or employee who was incumbent
at the time when the cause or event that led to the revocation of
the
permit or license for, or the registration of, the business arose (or an executive
or employee incumbent at the time when the
cause or event that led to
the time corrective measures under Article 10 of the Act on the Structural
Improvement of the Financial
Industry arose, in cases where a legal entity
or company had its permit or license revoked pursuant to Article 14 of
the said Act)
and who falls under any of the following subparagraphs:
1. An auditor or a member of an audit committee;
2. An executive who has been subjected to a caution, a warning, a censure,
suspension of performance of duties, a demand for removal,
or other
disciplinary measure pursuant to this Act or any of the finance-related
statutes enumerated in paragraph (1) on account
of his/her illegal
or wrongful conduct in connection with the cause or event that led
to such revocation of permit or license;
3. An employee who has been subjected to a measure equivalent to or
heavier than a demand for suspension from office pursuant to
this
Act or any of the finance-related statutes enumerated in paragraph
(1) on account of his/her illegal or wrongful act in connection
with
the cause or event that led to the revocation of a permit, license, or
registration; and
ENFORCEMENT DECREE OF THE CREDIT UNIONS ACT
10
4. A person who has been subjected to the disciplinary measure under
subparagraph 2 or 3 but who had retired or resigned from his/her
office before he was punished by such measure.
(3) The term "disciplinary measure of suspension from office, suspension
of performance of service, or any heavier discipline as
prescribed by
Presidential Decree" in Article 28 (1) 7-3 of the Act means the suspension
of performance of duties, suspension from
office, or suspension of
performance of service, while the term "period of time prescribed by
Presidential Decree" in the said
subparagraph means four years from the
termination date of the disciplinary measure or heavier punishment.
(1) The scope of welfare services under Article 39 (2) of the Act is as
follows:
1. Social welfare services: Services of establishing and operating child-care
facilities, welfare facilities for the elderly and
disabled and similar
services;
2. Cultural welfare services: The following services and similar services;
(a) Services of establishing and operating social education
facilities,
such as homemakers' colleges and hobby classes;
(b) Services of establishing and operating community sports facilities,
such as table tennis courts, tennis courts, and fitness
clubs;
(c) Services of establishing and operating community convenience
facilities, such as wedding halls, reading rooms, restaurants,
and
public baths; and
(d) Scholarship funds; and
3. Local community development projects: Services of collaborative
purchasing and sales, warehouse services, funeral services, and
similar
services.
(2) Deleted.
Apr. 19, 1999; Presidential Decree No. 16859, Jun. 27, 2000>
1. The equity capital under subparagraph 9 of Article 2 of the Act: Provided,
That, if the equity capital has been reduced to less
than the maximum
limit on the total capital under Article 14 (4) of the Act due to a deficit
incurred, the applicable amount shall
be the minimum limit on total
capital; and
2. An amount equivalent to 10/100 of assets as of the end of the immediately
preceding business year.
(4) Notwithstanding paragraph (3), a workplace union under Article 12
(1) 2 or an organization union under subparagraph 3 (d) of
the said paragraph
may appropriate an amount equivalent to two times its equity capital as
funds for provision of welfare services,
subject to prior approval of the
National Federation Chairperson.
(5) Every union may, when it provides the welfare services under paragraph
(1), levy expenses on service users.
Article 16-2 (Non-Members Use of Services)
In cases where a union allows persons who are not members (hereinafter
referred to as "non-members" ) to use the services under
Article 39 (1)
of the Act in accordance with Article 40 (1) of the Act, the loans and
discount of bills (hereinafter referred to
as "loans" ) granted to non-members
shall not exceed one-third of the loans newly granted by the union during
the pertinent business
year.
[This Article Newly Inserted by Presidential Decree No. 18113, Nov. 4, 2003]
Article 16-3 (Limit on Borrowings)
The limit on the loans that a union is permitted to borrow pursuant to
Article 41 (1) of the Act shall be the greater of an amount
equivalent
to 5/100 of total assets as of the end of the immediately preceding business
year and its equity capital.
[This Article Newly Inserted by Presidential Decree No. 18113, Nov. 4, 2003]
Article 16-4 (Limit on Loans per Person)
(1) The term "limit prescribed by Presidential Decree" in Article 42 of
the Act means the greater of an amount equivalent to 20/100
of its equity
capital as of the end of the immediately preceding business year and an
amount equivalent to 1/100 of its total assets.
In such cases, the Financial
Services Commission may set an amount equivalent to 1/100 of total assets
ENFORCEMENT DECREE OF THE
CREDIT UNIONS ACT
12
as the maximum limit. 1. A loan secured by a deposit or installment deposit in the union;
2. A loan secured by the mutual aid premium paid under a mutual aid
contract made with the union;
3. A loan guaranteed by the State, the Bank of Korea, or a financial
institution under the Banking Act or a loan secured by securities
issued
or guaranteed by such institution; and
4. Other loans specified by the Financial Services Commission.
[This Article Newly Inserted by Presidential Decree No. 18113, Nov.
4, 2003]
Article 17 (Reserve for Repayments)
(1) The amount of the reserve for repayment that each union shall retain
in accordance with Article 43 (1) of the Act shall be 10/100
of the balance
of deposits and installment deposits as of the end of the preceding month.
(2) Every union shall deposit an amount
equivalent to 50/100 (or an amount
equivalent to 100/100, if a union is the legal entity under Article 95 (1)
of the Act) of the
reserve for repayment under paragraph (1) in the National
Federation by no later than the fifth day of the following month: Provided,
That the Financial Services Commission may, if deemed necessary for the
healthier operation of the National Federation or a union,
raise the rate
of the deposit out of the reserve for repayment in the National Federation.
1. Payment of expenses required for the operation and management of
the reserve for repayment;
ENFORCEMENT DECREE OF THE CREDIT UNIONS ACT
13
2. Payment of interest incurred for the reserve for repayment;
3. Offset of deficits incurred to the National Federation; and
4. Other methods determined by the National Federation Chairperson,
subject to prior approval of the Financial Services Commission.
(5) Further specific matters necessary for the payment of interest and
offset of deficits under paragraph (4) 2 and 3 shall be
prescribed by the
Financial Services Commission.
(1) The term "financial institution specified by Presidential Decree" in
subparagraph 2 of Article 44 of the Act means a financial
institution insured
pursuant to Article 2 of the Depositor Protection Act (hereinafter referred
to as "insured financial institution"
) or a post office under the Postal
Savings and Insurance Act (hereinafter referred to as "post office" ).
(2) The types of securities a union is permitted to purchase in accordance
with subparagraph 3 of Article 44 of the Act in addition
to the state bonds
and public bonds are as follows: 1. Corporate bonds publicly notified by the Financial Services Commission,
considering credibility and credit ratings;
2. Indirect investment certificates of a securities fund under subparagraph
1 of Article 27 of the Indirect Investment Asset Management
Business
Act or beneficiary certificates issued by a trust company under the
Trust Business Act, for which the ratio of listed
stocks included in
underlying assets (which means the stocks, exchange-traded
derivatives and over-the-counter derivatives acquired
in the securities
market under Article 2 (12) of the Securities and Exchange Act, the
KOSDAQ market under Article 2 (14) of the
said Act, or similar foreign
market; the same shall apply hereinafter) shall not exceed 30/100;
3. Indirect investment securities of a money market fund under
subparagraph 5 of Article 27 of the Indirect Investment Asset
Management
Act; and
4. Other securities specified and publicly notified by the Financial Services
Commission as deemed required for the management of
surplus earnings
ENFORCEMENT DECREE OF THE CREDIT UNIONS ACT
14
retained by unions.
(3) No union may purchase the securities under paragraph (2) 2 or 4
in excess of the limit of 100/100 of its equity capital as at
the end of
the immediately preceding business year.
(4) The Financial Services Commission may, if deemed necessary for the
healthier management of surplus earnings of unions, prescribe
and publicly
notify the limit on the purchase of the securities under paragraph (2)
1 or 4, considering the credit rating of the
securities and the risks in
investment ensuing from excessive purchase of such securities issued by
a single company.
[This Article Newly Inserted by Presidential Decree No. 18113, Nov. 4, 2003]
Article 18 (Extent of Real Estate for Business Purposes)
(1) The extent of real estate that a union or the National Federation is
allowed to acquire for business purposes in accordance
with Article 45
of the Act is as follows:
1. Business facilities (limited to cases where at least 10/100 of the total
floor area of a building is used directly for its business
purposes;
2. Real estate used directly as company houses, dormitories, and training
facilities; and
3. Real estate used directly for the welfare services under Article 16 (1).
(2) Any union or the National Federation may lease part
of its business
facilities under paragraph (1) 1 to a third party to the extent that such
lease shall not cause any inconvenience
to use by union members or member
unions.
Article 18-2 (Extent of Real Estate for Business Purposes)
The term "reference amount prescribed by Presidential Decree" in the
main
text of Article 47 (5) of the Act means 30 billion won.
[This Article Newly Inserted by Presidential Decree No. 18113, Nov.
4, 2003]
Article 18-3 (Replacement of External Auditors)
The term "if the union ...... falls under any of the grounds prescribed
by Presidential Decree" in Article 47 (6) of the Act means
cases where
it falls under any of the following subparagraphs:
1. Where it has ever violated the Act, this Decree, or any order issued
ENFORCEMENT DECREE OF THE CREDIT UNIONS ACT
15
by the Financial Services Commission or the Governor of the Financial
Supervisory Service pursuant to the Act or this Decree during
the
preceding three years;
2. Where it overstates its income or understates its losses in excess of
the guidelines prescribed by the Financial Services Commission;
and
3. Where the National Federation Chairperson deems it necessary, as
a result of an inspection under Article 89 (6) of the Act, to
replace
the auditor.
[This Article Newly Inserted by Presidential Decree No. 18113, Nov. 4, 2003]
Article 19 (Liquidators)
The National Federation Chairperson may, if there is no union president
to carry out the liquidation of the union or it is found
that the union
president is not competent to carry out the liquidation, appoint a member
of the union or an employee of the National
Federation as the liquidator
of the union pursuant to Article 57 (1) of the Act.
Article 19-2 (Qualifications for Professional
Directors)
The term "people ...... who meet the requirements prescribed by Presidential
Decree" in Article 71-2 (3) of the Act
means persons falling under any
of the following subparagraphs: 1. A person who has worked for the Bank of Korea, the Financial Supervisory
Service, or a financial institution subject to inspection
under Article
38 of the Act on the Establishment, etc. of Financial Services Commission
(or an foreign financial institution equivalent
thereto) for ten years
or longer;
2. A person who is qualified as an attorney-at-law or certified public
accountant and who has engaged in a business relating to such
qualification for five years or longer; and
3. A person who has worked for a state agency, a research institute,
or an educational institution and who is specified by articles
of
association as qualified as those under subparagraph 1.
[This Article Newly Inserted by Presidential Decree No. 18113, Nov.
4, 2003]
Article 19-3 (Internal Control Guidelines)
(1) The internal control guidelines under Article 76-3 (1) of the Act shall
include the following matters:
ENFORCEMENT DECREE OF THE CREDIT UNIONS ACT
16
1. Matters concerning the allocation of business affairs and the
organizational structure;
2. Matters concerning the management of risks arising in the course of
management of assets and performance of business;
3. Matters concerning the procedure with which executives and employees
shall comply in performing their duties;
4. Matters concerning the establishment of a system with which information
required for making decisions on business management can
be
communicated efficiently;
5. Matters concerning the procedure and method for insuring whether
executives and employees comply with the internal control guidelines
and the disposition of executives and employees who violate the internal
control guidelines;
6. Matters concerning the procedure or standards for preventing unfair
trading of executives and employees, including the procedure
for
reporting details of securities trading by executives and employees;
7. Matters concerning the procedure for the establishment of and
amendment to the internal control guidelines; and
8. Matters prescribed by the Financial Services Commission as specific
standards for matters under subparagraphs 1 through 7.
(2)
The National Federation shall, when it intends to establish or revise
the internal control guidelines under paragraph (1), refer
the standards
to its board of directors for resolution.
(3) The Financial Services Commission may recommend the National
Federation to revise internal control guidelines in order to prevent
recurrence of violations, if a violation of a relevant statute is discovered
as a result of the inspection of the Financial Supervisory
Service under
Article 83 (2) of the Act.
[This Article Newly Inserted by Presidential Decree No. 18113, Nov. 4, 2003]
Article 19-4 (Compliance Officers' Duties)
(1) The National Federation shall, whenever it appoints or dismisses a
compliance officer under Article 76-3 (2) of the Act (hereinafter
referred
to as "compliance officer" ), notify the Financial Services Commission of
such fact.
17
(2) Every compliance officer shall exercise due care and good faith in
performing his/her duties, but shall assume any duty to perform
any work
other than the following works concurrently:
1. Works relating to risk management; and
2. Auditing.
(3) The National Federation shall, whenever its compliance officer demands
any of its executives and employees to furnish
him/her with any data
or information, ensure that the executive or employee complies with such
demand sincerely.
(4) The National Federation shall not unfairly discriminate against any
person who has served as a compliance officer in personnel
management
on any ground relating to the performance of his/her duties as a compliance
officer.
[This Article Newly Inserted by Presidential Decree No. 18113, Nov. 4, 2003]
Article 19-5 (Borrowings)
(1) The term "cases prescribed by Presidential Decree, considering the
purpose, size, etc. of loan" in Article 78 (5) of the Act
means cases where
the National Federation borrows a loan, the maturity of which shall not
exceed 30 days, from an insured financial
institution within the limit of
3/100 of its total assets as of the end of the immediately preceding business
year in order to
secure temporarily liquidity.
(2) The term "cases prescribed by Presidential Decree, considering the
purpose, size, etc. of investment" in Article 78 (5) of the
Act means cases
where the National Federation acquires less than 15/100 of outstanding
voting stocks (including shares in invested
capital) of any other company
for the purposes of investment within the limit of 3/100 of its total assets
as at the end of the
immediately preceding business year.
[This Article Newly Inserted by Presidential Decree No. 18113, Nov. 4, 2003]
Article 19-6
(Size of Loans Granted by National Federation)
(1) The size of loans granted by the National Federation to any person
other than
unions pursuant to Article 78-2 (2) of the Act shall not exceed
the guidelines prescribed by the Financial Services Commission within
the limit of one-third of its total assets in the account for the receipt
and management of the funds remaining after deducting
the reserve for
repayment (hereinafter referred to as "credit deposits" ) from the accounts
ENFORCEMENT DECREE OF THE CREDIT UNIONS
ACT
18
for the management of the business under Article 78 (1) 5 (a) of the Act
(hereinafter referred to as "total assets of credit deposits"
).
(2) The limits on the loans granted by the National Federation to any
person other than unions pursuant to Article 78-2 (2) of the
Act are as
follows: 1. Loans to a single private individual: 300 million won;
2. Loans to a single legal entity: Eight billion won;
3. Loans to a single person and the persons who share credit risk with
such person (hereinafter referred to as "identical borrowers"
): Ten
billion won; and
4. Total amount of large loans to a single person and identical borrowers
in excess of Five billion won: No more than 50/100 of loans
granted
to those who are not unions in accordance with paragraph (1).
(3) Further specific guidelines for the calculation of the
limits on loans
that are not included in the limits on loans under paragraph (2) and other
matters shall be prescribed by the Financial
Services Commission.
[This Article Newly Inserted by Presidential Decree No. 18113, Nov. 4, 2003]
Article 19-7 (Management of Fund)
(1) The term "financial institution specified by Presidential Decree" in Article
79 (1) 3 of the Act means an insured financial
institution or a post office.
(2) The term "manner prescribed by Presidential Decree" in Article 79
(1) 4 of the Act means any
of the following manner:
1. A loan to any person other than a union (only from credit deposits);
2. Discount of bill for a union;
3. A loan for the credit union depositors protection fund under Article
80-2 (1) of the Act (hereinafter referred to as the "fund"
);
4. Deleted.
1. Securities that may be purchased with the reserve for repayment:
(a) Securities under Article 2 (1) 1 through 3 of the Securities
and
ENFORCEMENT DECREE OF THE CREDIT UNIONS ACT
19
Exchange Act;
(b) Corporate bonds publicly notified by the Financial Services
Commission, considering credibility and credit ratings;
(c) Indirect
investment securities of a securities fund under
subparagraph 1 of Article 27 of the Indirect Investment Asset
Management Act or
beneficiary certificates issued by a trust company
under the Trust Business Act, for which the ratio of listed stocks
included
in underlying assets thereof shall not exceed 30/100;
(d) Indirect investment securities of a money market fund under
subparagraph
5 of Article 27 of the Indirect Investment Asset
Management Act; and
(e) Other securities specified and publicly notified by the Financial
Services Commission as deemed required for the management
of
the reserve for repayment.
2. Securities that may be purchased with credit deposits:
(a) Securities under subparagraphs 1 through 3 of Article 2 of the
Securities
and Exchange Act;
(b) Corporate bonds publicly notified by the Financial Services
Commission, considering credibility and credit ratings;
(c) Stocks;
(d) Indirect investment securities of a securities fund under
subparagraph 1, 3, 5, or 6 of Article 27 of the Indirect Investment
Asset Management Act or beneficiary certificates issued by a trust
company under the Trust Business Act; and
(e) Other securities specified and publicly notified by the Financial
Services Commission as deemed required for the management
of
the credit deposits.
(4) The limits on the securities that the National Federation may purchase
pursuant to Article 79 (2) of the Act are as follows:
1. The National Federation shall not purchase the securities under
paragraph (3) 1 (c) in excess of the limit prescribed and publicly
notified
by the Financial Services Commission within the limit of 10/100 of
the fund for management of the reserve for repayment
as at the end
of the preceding month;
ENFORCEMENT DECREE OF THE CREDIT UNIONS ACT
20
2. The National Federation shall not purchase the following securities
in excess of the limit prescribed and publicly notified by
the Financial
Services Commission within the limit of 20/100 of the total assets
of credit deposits as at the end of the preceding
month:
(a) Securities under paragraph (3) 2 (c);
(b) Securities under paragraph (3) 2 (d) (which shall exclude the indirect
investment securities of a money market fund under subparagraph
5 of Article 27 of the Indirect Investment Asset Management Act,
limited to those for which the ratio of exchange-traded derivatives
and over-the-counter derivatives under paragraph (2) 8 and (9)
included in the underlying assets aexceed 30/100);
3. The National Federation shall not purchase the securities under
paragraph (3) 2 (d) (which shall exclude the indirect investment
securities of a money market fund under subparagraph 5 of Article
27 of the Indirect Investment Asset Management Act, limited to
those
for which the ratio of exchange-traded derivatives and over-the-counter
derivatives under subparagraphs 8 and (9) of Article
2 of the Indirect
Investment Asset Management Act, included in underlying assets,
do not exceed 30/100) in excess of the limit
prescribed and publicly
notified by the Financial Services Commission within the limit of 30/100
of its total assets of credit
deposits as at the end of the preceding
month.
(5) The Financial Services Commission may, if deemed necessary for the
healthier management of the fund of the National Federation,
prescribe
and publicly notify the limit on the purchase of the securities under
paragraph (3) 1 (b) or (e) or paragraph (3) 2 (b)
or (e), considering the
credit rating of such securities and the risks in investment ensuing from
excessive purchase of securities
issued by a single company.
(6) Other necessary matters concerning the fund management of the
National Federation shall be prescribed by the Financial Services
Commission.
[This Article Newly Inserted by Presidential Decree No. 18113, Nov. 4, 2003]
ENFORCEMENT DECREE OF THE CREDIT UNIONS ACT
21
Article 19-8 (Management of Fund)
(1) The term "amount prescribed by Presidential Decree" in Article 80-2
(1) of the Act means the aggregate of following amounts:
1. Principal of and interest for deposits and installment deposits that
union members and others (which mean the union members and
others
as defined in Article 80-2 (1) of the Act; the same shall apply hereinafter)
deposit in the union. In such cases, the interest
shall be limited to
the amount calculated by multiplying the principal by the interest
rate fixed by the fund management committee
under Article 80-2 (3)
of the Act (hereinafter referred to as the "committee" ), considering
the average interest rate for one-year
term deposits in banks;
2. Mutual aid money for which union members and others have a claim
against the union under a mutual aid contract and other pecuniary
claims as agreed; and
3. Deleted.
(2) The Director for Inspection and Supervision of the National Federation
shall serve as the committee chairperson, and the committee
shall be
comprised of the following members:
1. Two persons commissioned by the National Federation Chairperson
from among union presidents;
2. One person designated by the National Federation Chairperson from
among the professional directors under Article 71-2 (3) of the
Act;
3. One person designated by the Chairperson of the Financial Services
Commission from among public officials under his/her control;
4. One person designated by the Minister of Planning and Finance from
among public officials under his/her control;
ENFORCEMENT DECREE OF THE CREDIT UNIONS ACT
22
5. One person commissioned by the Financial Services Commission from
among those who possess sound knowledge and experience in finance,
accounting, or law; and
6. Two persons commissioned by the Governor of the Financial Supervisory
Service from among those who possess sound knowledge and
experience
in finance, accounting, or law.
(3) The term of office of the committee members commissioned pursuant
to paragraph (2) shall be three years.
[This Article Newly Inserted by Presidential Decree No. 18113, Nov. 4, 2003]
Article 19-10 (Operation of Committee)
(1) The committee chairperson shall call meetings of the committee and
take the chair of such meetings.
(2) Meetings of the committee shall adopt resolutions with the attendance
of a majority of incumbent committee members and by an
affirmative vote
of a majority of the members present at the meeting.
(3) Other necessary matters concerning the operation of the
committee
shall be determined by the committee chairperson, subject to a resolution
of the committee.
[This Article Newly Inserted by Presidential Decree No. 18113, Nov. 4, 2003]
Article 19-11 (Contributions)
(1) The amount of the contribution that each union is obligated to pay
pursuant to Article 80-3 (1) 1 of the Act shall be calculated
by multiplying
the balance of deposits (which mean the deposits and similar under Article
80-2 (1) of the Act; the same shall apply
hereinafter) as at the end of
each year by the rate fixed by the committee within the limit of 5/1000
of the balance.
(2) The term "borrowed loans as prescribed by Presidential Decree" in Article
80-3 (1) 3 of the Act means loans borrowed from insured
financial
institutions.
(3) Each union shall pay the contribution under paragraph (1) within
three months from the end of each business year, and shall
also pay the
late payment charge at the rate fixed by the committee, if it fails to pay
the contribution within by deadline.
(4) Other necessary matters concerning the payment of contributions shall
be prescribed by the committee.
ENFORCEMENT DECREE OF THE CREDIT UNIONS ACT
23
[This Article Newly Inserted by Presidential Decree No. 18113, Nov. 4, 2003]
Article 19-12 (Management and Operation of Fund)
(1) The fund shall be managed as a special account.
(2) Fund surpluses may be managed by any of the following means:
1. Depositing it in an insured financial institution or a post office; and
2. Other methods prescribed by the committee.
[This Article Newly Inserted by Presidential Decree No. 18113, Nov. 4, 2003]
Article
19-13 (Use of Fund)
(1) The fund shall be used for the following purposes: 1. Payment of deposits pursuant to Article 80-2 (4) of the Act, if a union
is unable to pay such deposits;
2. Financial aid for a merger of unions falling under any of the following
items or for the assignment of contracts or for business
normalization
under Article 86-4 of the Act:
(a) A union under the business administration by an administrator
appointed by the Financial Services Commission pursuant to Article
86 of the Act; and
(b) A union, the financial structure of which the committee deems
necessary to improve for business normalization;
3. Repayment of loans borrowed in accordance with Article 80-3 (1) 2
and 3 of the Act;
4. Other purposes determined by the committee, including the payment
of expenses required for the management and operation of the
fund.
(2) The National Federation shall, when it grants financial aid under
paragraph (1) 2, consider as to how fairly the persons
liable for insolvency
of the union subject to the financial aid take their shares of losses of the
union and how wiling the union
is in making efforts to restructure itself
on its own.
(3) The National Federation shall, when it grants the financial aid under
paragraph (1) 2, make efforts to minimize the losses of
the fund by conducting
an actual inspection on the assets and liabilities of the union in advance
to grasp the objective view of
the current status of business management
and finance of the union.
(4) The National Federation shall prepare and retain data proving that
ENFORCEMENT DECREE OF THE CREDIT UNIONS ACT
24
the financial aid under paragraph (1) 2 has been granted in compliance
with paragraph (3).
[This Article Newly Inserted by Presidential Decree No. 18113, Nov. 4, 2003]
Article 19-14 (Withholding Payment of Deposits)
(1) The term "amount prescribed by Presidential Decree" in Article 80-4
(3) of the Act means any of the following amounts:
1. The amount of claims for the deposits and installment payments that
a union member or any other person has provided the union
as security
for him/herself or a third party and obligations that the union member
or the person owes to the union as surety; and
2. Deposits of a person who is held liable for the insolvency of the union
pursuant to Article 80-5 (1) of the Act or a person who
has the
relationship under any subparagraph of Article 10-3 (2) of the
Enforcement Decree of the Securities and Exchange Act with
such
person.
(3) The committee shall, when it withholds payment of deposits under
Article 80-2 (4) pursuant to paragraph (1), deliver a written
statement
containing the following details to the union member or any other person
who claims for payment the deposits:
1. The amount of deposit the payment of which is withheld;
2. The grounds on which payment of deposits is withheld;
3. The time period during which payment of deposits is withheld; and
4. The procedure and method for filing claims for payment of withheld
deposits when the grounds for withholding the payment terminate
or
the time period for withholding the payment expires.
[This Article Newly Inserted by Presidential Decree No. 18113, Nov. 4,
2003]
Article 20 (Allotted Expenses)
As to the rate of and limit on the allocation of expenses under Article
83-5 of the Act and other matters concerning the payment
of allotted
expenses, Article 12 of the Enforcement Decree of the Act on the
ENFORCEMENT DECREE OF THE CREDIT UNIONS ACT
25
Establishment, etc. of Financial Services Commission shall apply.
Article 20-2 (Guidelines for Soundness in Business Management)
(1) The guidelines for soundness in business management that shall
be
prescribed by the Financial Services Commission pursuant to subparagraphs
1 through 4 of Article 83-3 shall include the provisions
for the following
matters: 1. Matters concerning soundness in financial structure:
(a) The equity capital-to-assets ratio;
(b) The reserve for bad debts-to-amount of mandatory reserves ratio;
and
(c) The reserve for retirement benefits-to-estimated amount of
retirement benefits ratio;
2. Matters concerning soundness of assets:
(a) The extent of assets subject to the classification of soundness of
assets; and
(b) The grades and standards for the classification of soundness of assets;
3. Matters concerning the accounting and settlement of accounts:
(a) Guidelines for the indication of the financial status and the
state
of profit or loss;
(b) Guidelines for the accumulation of allowances and reserves; and
(c) Guidelines for writing-off bad debts;
4. Matters concerning risk management:
(a) The basic policy on risk management;
(b) Management's roles for risk management; and
(c) The internal control system required for risk management.
[This Article Wholly Amended by Presidential Decree No. 16857, Jun.
27, 2000]
Article 21 (Reporting on Unions subject to Revocation of Authorization
for Establishment)
(1) The Governor of the Financial Supervisory Service established pursuant
to the Act on the Establishment, etc. of Financial Services
Commission
(hereinafter referred to as the "Governor of the Financial Supervisory
Service" ) shall, when he/she discovers in the
course of guidance, inspection,
or supervision of a union that a ground exists for the revocation of
authorization for establishment
of the union under Article 85 (2) of the
ENFORCEMENT DECREE OF THE CREDIT UNIONS ACT
26
Act, immediately report it to the Financial Services Commission along
with related data.
Article 21-2 (Requirements for Business Administration)
(1) The term "illegal or non-performing loans as prescribed by Presidential
Decree" in Article 86 (1) 1 of the Act means those falling under any of
the following subparagraphs:
1. The amount of non-performing loans, in cases where the amount of
non-performing loans out of the aggregate of loans under subparagraph
5 (a) of Article 2 of the Act exceeds the greater of its equity capital
or invested capital; and
2. The amount of non-performing loans, in cases where the aggregate
of the non-performing loans exceeds two times the greater of
its equity
capital or invested capital;
(2) The term "if ...... it falls within the criteria as prescribed by Presidential
Decree" in Article 86 (1) 4 of the Act means
cases where it fails to meet
the following standards. In such cases, further specific standards for each
subparagraph shall be
prescribed by the Financial Services Commission:
1. Standards for the equity capital kept in preparation against credit
risk of the union, including the equity-capital-to-assets
ratio;
2. Standards for the soundness of assets owned by a union, including
claims for repayment of loans; and
3. Standards for the evaluation of the actual state of business management.
(3) A union shall, when it becomes subject to business
administration,
issue public notice thereof at the trading floors of its head office and branch
offices forthwith, and shall publish
the public notice in a daily newspaper
circulated in the area where the head office of the union is located within
two business
days.
[This Article Newly Inserted by Presidential Decree No. 16857, Jun. 27, 2000]
Article 21-3 (Methods of Business Administration)
(1) The scope of the business administration under Article 86 (1) of the
Act is as follows: 1. Management of supply of and demand for funds, the extension of credit
ENFORCEMENT DECREE OF THE CREDIT UNIONS ACT
27
, and the receipt of deposits;
2. Collection of illegal and non-performing loans and securing claims
therefore;
3. Rectification of illegal and wrongful acts;
4. Disposal of non-performing assets;
5. Improvement of the management of human resources and organization;
and
6. Other matters prescribed by the Financial Services Commission
concerning the management of unions.
(2) Further details concerning business administration, including the
method of business management by business administrators and
reporting
on the matters under business administration shall be prescribed by the
Financial Services Commission.
[This Article Newly Inserted by Presidential Decree No. 16857, Jun. 27, 2000]
Article 21-4 (Time Period for Business Administration)
The time period for business administration under Article 86 of the Act
shall be six months, but may be extended only once by no
more than six
months, if the Financial Services Commission deems it necessary to protect
union members and promote business normalization:
Provided, That the
time period of such business administration may be extended until the
bankruptcy administrator under Article
355 of the Debtor Rehabilitation
and Bankruptcy Act is appointed, in cases where an application for
bankruptcy is filed in accordance
with Article 88 of the Act.
1. Obligations to pay a tax, public due, or rent;
2. Obligations to pay wages for the preceding three months and
compensation for a disaster, the right to preferential payment for
which
ENFORCEMENT DECREE OF THE CREDIT UNIONS ACT
28
is granted pursuant to Article 38 (2) of the Labor Standards Act, and
obligations to pay retirement benefits for the preceding three
years,
the right to preferential payment for which is granted pursuant to
Article 11 (2) of the Guarantee of Workers' Retirement
Benefits Act;
3. Funds for the settlement of domestic currency exchange;
4. Funds deposited temporarily for vicariously carrying out the business
affairs of the State, a public organization, the National
Federation,
or a financial institution; and
5. Other obligations deemed necessary by the Financial Services
Commission for the maintenance and management of the union.
(2)
The term "if there is a ground as prescribed by Presidential Decree"
in Article 86 (5) of the Act means any of the following cases:
1. Where it is judged that a union's obligations can be fully paid out
of its assets;
2. Where it is judged that a union is unable to fully pay its obligations,
but it is possible to protect its members by a merger
with another
union; and
3. Where it is judged that a union is unable to fully pay its obligations,
but it is possible to normalize its business within three
years with
financial aid from the National Federation or by its own efforts for
self-rescue.
(3) The Financial Services Commission shall, when the suspension of
payment for obligations, imposed upon a union pursuant to paragraph
(2), is completely lifted, terminate the business administration of the union
forthwith.
The term "person who has an interest in or a special relationship with
a union as prescribed by Presidential Decree" in the main
text of Article
86-2 (1) of the Act means a person falling under any of the following
subparagraphs:
1. An executive or employee who is liable for the insolvency of the union;
his/her spouse; and his/her relative by blood or by marriage
in the
fourth degree or closer; and
2. A person who has borrowed an illegal or non-performing loan from
ENFORCEMENT DECREE OF THE CREDIT UNIONS ACT
29
the union; his/her spouse; and his/her relative by blood or by marriage
in the fourth degree or closer.
[This Article Newly Inserted by Presidential Decree No. 16857, Jun. 27, 2000]
Article 22 (Criteria for Recommendation of Mergers)
Pursuant to Article 89 (4) of the Act, the Financial Services Commission
may prescribe the criteria necessary when the National
Federation
Chairperson recommends a union that falls under any of the following
subparagraphs to merge with another union or requests
such union to
take measures for improving its financial state, such as disposal of its
own assets and downsizing of its organization:
1. A union in whose case a result of the analysis and evaluation of data
in accordance with Article 89 (3) of the Act reveals that
it fails to
meet the guidelines for soundness of business management under Article
83-3; and
2. A union that needs to nake improvements in its business management
the analysis and evaluation of data in accordance with Article
89 (3)
of the Act reveals that its financial state or management is unsound.
[This Article Newly Inserted by Presidential Decree
No. 16857, Jun. 27, 2000]
Article 23 Deleted.
(1) The Financial Services Commission shall, pursuant to Article 96 (1)
of the Act, entrust the Governor of the Financial Supervisory
Service with
authority to: 1. Make requests to conduct audits under Article 47 (5) of the Act;
1-2. Demands to take corrective measures pursuant to Article
75 (2)
of the Act;
1-3. Demands to submit reports on the settlement of accounts or audit
reports pursuant to Article 81 (4) of the Act;
1-4. Control matters relating to the public disclosure of important
information and data relating to the status of business management
under Article 83-2 of the Act;
2. Deleted; 3. Deleted;
30
4. Demands to take measures against executives or employees pursuant
to Article 84 (1) 2 or 3 of the Act;
5. Appoint ad hoc executives or request to register such appointments
pursuant to Article 84 (3) or (4) of the Act;
6. Take measures under Article 85 (1) 1 of the Act;
6-2. Deleted; 7. Enforce business administration under Article 86 (1) of the Act and
appoint administrators;
8. Suspend the payment for obligations, suspend the performance of
executives' duties, or conduct actual inspections of assets pursuant
to Article 86 (2) of the Act;
9. Deleted; 10. Requests to submit data pursuant to Article 86 (4) of the Act;
11. Lift suspensions of payment for obligations or suspensions of performance
of executives' duties pursuant to Article 86 (5) of
the Act;
11-2. Exercise the power to remove administrators and appoint agents
of such administrators pursuant to Article 86-2 (4)
and (5) of the Act;
11-3. Issue notices of business administration and request to register such
business administration pursuant
to Article 86-3 of the Act;
11-4. Requests the committee under Article 86-4 (1) of the Act to present
opinions and receive such
opinions;
11-5. Designate assignee-unions under Article 86-4 (2) of the Act;
11-6. Appoint administrators pursuant to Article 86-4 (5) of
the Act;
11-7. Issue notices and request to register pursuant to Article 86-4 (6)
of the Act;
12. File applications for bankruptcy pursuant to Article 88 of the Act;
12-2. Grant authorizations under Article 97 (1) or (3) of
the Act;
13. Grant approval pursuant to Article 12 (1) 1;
14. Recommend the revision of internal control guidelines under Article
19-3 (3); and
15. Accept notices of appointment or dismissal of compliance officers under
Article 19-4 (1).
(2) The Governor of the Financial Supervisory Service may entrust the
National Federation Chairperson with his/her authority to:
31
1. Conducts inspections of the business and assets of unions pursuant
to Article 83 (2) of the Act;
2. Demand unions to submit reports or data on their business or assets,
demand persons concerned to make appearances and make statements
in their favor pursuant to Article 83 (3) of the Act;
3. Demand unions to take measures against executives or employees
pursuant to Article 84 (1) 2 or 3; and
4. Appoint ad hoc executives and request to register such appointments
pursuant to Article 84 (3) and (4).
(3) The Governor of the Financial Supervisory Service shall, whenever
he/she exercises the power under any provision of paragraph
(1) 1-2, 7,
8, 11, 11-2, 11-4 through 11-6, 12, and 12-2, report it to the Financial
Services Commission.
Article 25 (Procedure for Imposition and Collection of Fines for Negligence)
(1) The Financial Services Commission shall, whenever
it intends to impose
a fine for negligence pursuant to Article 101 (2) of the Act, investigate
and corroborate on the violation
in question, and shall notify the person
subject to the disposition of fine for negligence of the details in writing,
clearly stating
the facts relevant to the violation, the time period for filing
an objection, and other matters and demanding payment thereof.
(2) The Financial Services Commission shall, whenever it intends to impose
a fine for negligence under paragraph (1), provide the
person subject to
the disposition of fine for negligence an opportunity to make a statement
on his/her case, orally or in writing,
within a given period of time, of
at least ten days. In such cases, it shall be deemed that the person has
no objection if he/she
fails to make a statement within the given period
of time.
32
mutandis. In such cases, the notice of demand for payment shall state
the method and time period for filing an objection.
[This Article Newly Inserted by Presidential Decree No. 18113, Nov. 4, 2003]
ADDENDA
This Decree shall enter into force on April 1, 1998.
Article 2 (Transitional Measure concerning Welfare Services)
Local community
development projects implemented by a union pursuant
to former provisions before this Decree enters into force shall be deemed
to have been approved by the National Federation Chairperson pursuant
to the amended provision of Article 16 (2).
Article 3 Deleted.
ADDENDA
(2) (Transitional Measure Following Change in Common Bond) In cases where
the extent of common bond of a local union established
pursuant to former
provisions as of the date this Decree enters into force deviate from the boundary
of a single Si (which shall
be limited to a Si without any Gu established
therein)/Gun/Gu, it may maintain its common bond as before,
notwithstanding the amended
provisions of Article 12 (1) 1.
ADDENDA
This Decree shall enter into force on the date of its promulgation.
Articles 2 through 4 Omitted.
ENFORCEMENT DECREE OF THE CREDIT UNIONS ACT
33
ADDENDA
This Decree shall enter into force on the date of its promulgation.
Article 2 (Transitional Measure concerning Equity Capital)
(1) In calculating the limit on loans that may be borrowed by a union
in accordance with Article 41 of the Act, the former provisions
shall be
applicable to loans borrowed by a union before this Decree enters into
force, notwithstanding the amended provisions of
Article 1-2.
(2) In calculating the limit on loans to a single person in accordance with
Article 42 of the Act, the former provisions
shall apply to loans already
granted by a union before this Decree enters into force and the loans that
a union will grant during
one year following the date of this Decree enters
into force.
(3) In calculating the limit on financial resources that a union is permitted
to spend for welfare services in accordance with Article
16 (3), the former
provisions shall apply to the equity capital in connection with the financial
resources that may be spent for
the welfare services already provided by
a union before this Decree enters into force.
ADDENDA
This Decree shall enter into force on the date of its promulgation: Provided,
That the amended provisions of Articles 19-8 through
19-14 shall enter
into force on January 1, 2004.
Article 2 (Effective Period)
(1) The amended provisions of Article 17 (4) 3 shall be effective from
the date this Decree enters into force until December 31,
2020.
(2) The amended provisions of Article 19-8 (1) 3 shall be effective for
three years from the date the said subparagraph enters into
force.
Article 3 (Transitional Measure concerning Types of and Limits on
Securities)
In cases where the fund has not been managed in conformity with the
extent of and limits on fund management under the amended provisions
of Article 17-2 (2) and 19-7 (3) and (4) as of the date this Decree enters
ENFORCEMENT DECREE OF THE CREDIT UNIONS ACT
34
into force, the securities with a fixed maturity shall be disposed of by
the maturity, while necessary measures shall be taken for
those without
any specific maturity date to meet the requirements under the amended
provisions of Articles 17-2 (2) and 19-7 (3)
and (4) no later than December
31, 2004.
ADDENDA
This Decree shall enter into force on March 1, 2004.
Articles 2 through 5 Omitted.
ADDENDA
This Decree shall enter into force on December 1, 2005.
Articles 2 and 3 Omitted.
ADDENDA
This Decree shall enter into force on April 1, 2006.
Article 2 Omitted.
ADDENDA
This Decree shall enter into force on July 1, 2007.
ADDENDA
This Decree shall enter into force three months after the date of its
promulgation: Provided, That the amended provisions of Articles
13 (2)
1-2, 15 (1), 19-7 (2) 4, 19-8 (10 3, and 24 and the amended provisions
of Addenda to the Amendment (Presidential Decree
No. 18113) to the
Enforcement Decree of the Credit Unions Act shall enter into force on
the promulgation date of this Decree.
ENFORCEMENT DECREE OF THE CREDIT UNIONS ACT
35
Article 2 (Transitional Measures Concerning Limits on Purchasing of
Securities)
(1) A union or the National Federation that fails to manage its fund in
conformity to the extent of and limits on the fund management
under
the amended provisions of Articles 17-2 (2) through (4) and 19-7 (3)
through (6) as of the enforcement date of this Decree
shall take measures
to meet the requirements under the amended provisions of Articles 17-2
(2) through (4) and 19-7 (3) through
(6) within one year from the date
this Decree enters into force.
(2) Notwithstanding paragraph (1), a union or the National Federation
may dispose of the securities with a fixed maturity by the
maturity date,
while it may extend the time period for disposal of securities, subject to
a prior approval of the Financial Services
Commission, if it is foreseen
to suffer any loss in investment due to a sudden reduction of prices of
the securities or by selling
off a substantial number of securities at once
or if any other compelling reason to do so exists.
(3) A union or the National Federation that desires to obtain approval
under paragraph (2) shall submit to the Financial Services
Commission,
by no later than three months before the expiration of the time period
under paragraph (1), a detailed plan for taking
measures to meet the
requirements under the amended provisions of Articles 17-2 (2) through
(4) and 19-7 (3) through (6). In such
cases, the Financial Services
Commission shall make a decision as to whether to grant the approval
and shall issue a notice of
its decision within one month from the date
on which the detailed plan is filed.
ADDENDA
This Decree shall enter into force on the date of its promulgation: Provided,
That the amended parts of the Presidential Decrees
promulgated before
the enforcement of this Decree, but are hereby amended pursuant to Article
2 of Addenda although their enforcement
dates have not yet arrived, shall
enter into force on the respective enforcement dates of the Presidential
ENFORCEMENT DECREE OF
THE CREDIT UNIONS ACT
36
Decrees.
Article 2 Omitted.
AsianLII:
Copyright Policy
|
Disclaimers
|
Privacy Policy
|
Feedback
URL: http://www.asianlii.org/kr/legis/laws/edotcua350