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Laws of the Republic of Korea |
1
ENFORCEMENT RULE OF THE SECURITIES AND EXCHANGE ACT
Wholly Amended by Ordinance of the Ministry of Finance No. 1232, Feb. 15, 1977 Amended by Ordinance of the Ministry of Finance No. 1258, May 9, 1977 Ordinance of the Ministry of Finance No. 1299, Nov. 10, 1977 Ordinance of the Ministry of Finance, No. 1340, May 20, 1978 Ordinance of the Ministry of Finance No. 1371, Dec. 19, 1978 Ordinance of the Ministry of Finance No. 1521, Apr. 1, 1982 Ordinance of the Ministry of Finance No. 1533, Jul. 23, 1982 Ordinance of the Ministry of Finance No. 1571, May 16, 1983 Ordinance of the Ministry of Finance No. 1583, Aug. 29, 1983 Ordinance of the Ministry of Finance No. 1593, Dec. 29, 1983 Ordinance of the Ministry of Finance No. 1687, Sep. 15, 1986 Ordinance of the Ministry of Finance No. 1745, Jan. 22, 1988 Ordinance of the Ministry of Finance No. 1879, Apr. 28, 1992 Ordinance of the Ministry of Finance No. 1942, Jul. 28, 1993 Ordinance of the Ministry of Finance No. 1975, Apr. 30, 1994 Ordinance of the Prime Minister No. 548, Feb. 12, 1996 Ordinance of the Prime Minister No. 623, Apr. 1, 1997 Ordinance of the Prime Minister No. 673, Dec. 31, 1997 Ordinance of the Ministry of Finance and Economy No. 94, Jun. 12, 1999 Ordinance of the Ministry of Finance and Economy No. 129, Mar. 15, 2000 Ordinance of the Ministry of Finance and Economy No. 167, Nov. 21, 2000 Ordinance of the Ministry of Finance and Economy No. 223, Sep. 28, 2001 Ordinance of the Ministry of Finance and Economy No. 271, Aug. 12, 2002 Ordinance of the Ministry of Finance and Economy No. 304, Mar. 10, 2003 Ordinance of the Ministry of Finance and Economy No. 371, Apr. 1, 2004 Ordinance of the Ministry of Finance and Economy No. 411, Jan. 27. 2005 Ordinance of the Ministry of Finance and Economy No. 429, Mar. 28, 2005 Ordinance of the Ministry of Finance and Economy No. 501, Mar. 30, 2006 Ordinance of the Ministry of Finance and Economy No. 527, Nov. 8, 2006 Ordinance of the Prime Minister No. 875, Mar. 3, 2008 Article 1 (Purpose)
The purpose of these Rules is to provide for the matters delegated from
the Securities and Exchange Act (hereinafter referred to
as the "Act") and
the Enforcement Decree (hereinafter referred to as the "Decree") of the
same Act and matters necessary for their
enforcement.
ENFORCEMENT RULES OF THE SECURITIES AND EXCHANGE ACT
2
The definitions of terms used in these Rules shall be as prescribed by
the Act and the Decree.
Article 1-3 (Designation of Securities)
(1) The term "securities or bonds issued by the standard as prescribed
by Ordinance of the Prime Minister" in Article 2-3 (1) 6
and 7 of the
Decree means the securities or bonds issued by the securities company
under the provisions of Article 36-2 (2) 1 of
the Decree.
(2) The term "standards as prescribed by Ordinance of the Prime Minister"
in Article 2-3 (1) 8 of the Decree means the standards
falling under each
of the following subparagraphs: 1. It shall be the securities or bonds issued by the securities company
under the provisions of Article 36-2 (2) 1 of the Decree
(limited to
cases of securities or bonds issued in connection with the price of the
securities or the bond falling under any of
the following items or changes
in the numerical value of the index based thereon);
(a) Stock certificates; and
(b) Things that have the character of the stock certificates of the things
falling under the provisions of paragraph (3) 1;
2. An issuer shall receive the total amount of consideration at the same
time when it issues the stock certificate or bond; and
3. No owner shall bear any additional payment obligation, regardless
of what pretext it may be, other than for consideration to be
paid under
the provisions of subparagraph 2 during the duration of the securities
or bonds (excluding cases where an owner exercises
the right to trade
or transact the securities or bonds).
(3) The term "thing as prescribed by Ordinance of the Prime Minister"
in Article 2-3 (1) 8 (b) of the Decree means things falling
under any of
the following subparagraphs: 1. Things traded on the securities market or KOSDAQ market and a foreign
market as a similar market as the thing that has the character
of
the securities under the provisions of the subparagraphs of Article 2
(1) of the Act;
ENFORCEMENT RULES OF THE SECURITIES AND EXCHANGE ACT
3
2. Currency; and
3. General merchandise (referring to general merchandise under the
provisions of subparagraph 1 of Article 2 of the Futures Trading
Act)
[This Article Newly Inserted by Ordinance of the Ministry of Finance and Economy No. 304,
Mar. 10, 2003]
Article 1-4 (Sale Price of Mediation, etc. of Trade using Electronic Data
Processing System, etc.)
The term "price fixed by the method as prescribed by Ordinance of the
Prime Minister" in Article 2 (8) 8 (b) of the Act means the
price fixed
by the method meeting the requirements of the following subparagraphs:
1. Time to receive the price requested to fix a single price shall be 30
minutes: Provided, That the time to receive the price requested
may
be extended or shortened within five minutes according to the conclusion
of time of trade arbitrarily fixed by the information
communications
network or the electronic data processing system; and
2. The price requested shall be less than the price equivalent to 105/100
and more than the price equivalent to 95/100, based on
the final
quotation price of the securities concerned announced officially in the
securities market or in the KOSDAQ market.
[This Article Newly Inserted by Ordinance of the Ministry of Finance and Economy No. 304,
Mar. 10, 2003]
Article 1-5 (Scope of Foreign Corporations, etc.)
The term "person as prescribed by Ordinance of the Prime Minister" in
Article
2 (16) of the Act means any person falling under any of the following
subparagraphs: 1. An international organization established by treaty;
2. A fund or cooperative established, supervised or managed by foreign
Acts and subordinate statutes;
3. A fund or cooperative established, supervised or managed by a foreign
government, foreign local government or foreign public agency;
and
4. A fund or cooperative established, supervised or managed by an
international financial institution or international organization
by a
treaty.
[This Article Newly Inserted by Ordinance of the Ministry of Finance and Economy No. 38, Aug.
10, 1998]
ENFORCEMENT RULES OF THE SECURITIES AND EXCHANGE ACT
4
Article 2 (Securities Issue subject to Report)
Cases in which to submit a report upon subscription or sales of the securities
under the provisions in the main sentence of Article
8 (1) of the Act shall
be as follows: 1. In cases where the total subscription value or sale value of the securities
intended for the relevant subscription or sale and
the subscription value
or sale value (excluding the relevant sale value in cases where a minority
stockholder (excluding the issuer
and the underwriter of the securities
concerned) under the provisions of Article 2-7 (5) of the Decree sells
the securities by
means of mediation under the provisions of Article
84-27 (5) of the Decree) on which the report has not been submitted
as the subscription
or sale of the securities of the same kind realized
in the preceding one year (referring to the period after the report in
cases
where a report on the subscription or sale of the securities of
the same kind and in the same period has been made) from the relevant
subscription date or sale date is two billion won or more;
2. In cases where the total amount of all subscription invitations to be
aggregated is two billion won or more, in cases of aggregation
under
the provisions of the main sentence of Article 2-4 (3) of the Decree;
and
3. In cases where the amount calculated under the provisions of
subparagraph 1 or 2 is one billion won or more, when the relevant
securities are subscribed or sold to newly list the securities in the
items of Article 5-4 (3) 5 of the Decree on the securities
market or
the KOSDAQ market.
[This Article Wholly Amended by Ordinance of the Prime Minister No. 623, Apr. 1, 1997]
Article 2-2 Deleted.
Article 2-3 (Presentation of Package Report)
(1) The securities on which a package report (hereinafter referred to as
"package report") under the provisions of the proviso to
Article 8 (1) of
the Act may be presented, shall be the securities of the following
subparagraphs, the scheduled period of the
issuance shall exceed two months
and shall be within one year from the effective date of the package report,
and such securities
shall be issued more than three times during the
ENFORCEMENT RULES OF THE SECURITIES AND EXCHANGE ACT
5
scheduled period of the issuance: 1. Debentures (excluding convertible debentures, debentures with
warrant, participating debentures and exchangeable debentures);
and
2. Securities under the provisions of Article 2-3 (1) 6 through 8 of the
Decree.
(2) A person who may present a package report shall be a person who
meets the requirements of the following subparagraphs as a listed
corporation, a KOSDAQ- listed corporation or a registered corporation
(referring to a registered corporation under the provisions
of Article 6
of the Act; hereinafter the same shall apply):
1. The actual results of subscription or sale of securities of the same
kind as securities under the provisions of the subparagraphs
of paragraph
(1) shall fall under any of the following items:
(a) It shall have achieved of subscription or sale of the securities more
than two times in the preceding three years as a person
who has
submitted a business report and a half year report in the preceding
three years consecutively; and
(b) It shall have achieved of subscription or sale of the securities every
year in the preceding three years;
2. The audit opinion of the auditor (referring to the auditor under the
provisions of Article 3 of the Act on External Audit of Stock
Companies;
hereinafter the same shall apply in this Article) on the financial
statements of the preceding three business years
shall be unqualified
or qualified; and
3. It shall not have be subject to any measure restricting the issuance
of the securities from the Financial Services Commission
within the
preceding year.
(3) In cases where a corporation which is established or continues to exist
ENFORCEMENT RULES OF THE SECURITIES AND EXCHANGE ACT
6
due to a split or a split and merger meets the requirements of the following
subparagraphs, notwithstanding the provisions of paragraph
(2), it may
submit the package report until have passed three business years since
the relevant establishment or continuance:
1. A corporation before the split or the split and merger shall meet the
requirements of paragraph (2); and
2. A corporation established due to the split or the split and merger shall
be a listed corporation, KOSDAQ-listed corporation or
registered
corporation and the audit opinion of the auditor on the financial
statements of the preceding business year shall be
unqualified or
qualified.
(4) Deleted
Article 2-5 Deleted
Article 3 (Time of Effectuation of Reports)
Securities reports under the provisions of Article 9 (1) of the Act shall
come into effect on the date when the period of the following
subparagraphs
has passed from the date of the securities report are accepted: 1. Fifteen days in cases of subscription or sale of the securities: Provided,
That it shall be 10 days in cases of subscription to
or sale of the securities
of a listed corporation or KOSDAQ-listed corporation, seven days in
cases of subscription or sale of
securities by means of allocation to
the stockholders or a third party;
2. Seven days in cases of subscription to or sale of corporate debentures:
Provided, That it shall be five days in cases of corporate
debentures
falling under any of the following items:
(a) Secured debentures issued under the Secured Debentures Trust
Act;
(b) Corporate debentures payment of the principal and interest of which
is guaranteed by financial institutions, etc.;
ENFORCEMENT RULES OF THE SECURITIES AND EXCHANGE ACT
7
(c) Corporate debentures issued according to an asset-backed
securitization plan; and
(d) Corporate debentures subscribed to or sold according to a package
report;
3. Fifteen days in cases of subscription to or sale of securities, other
than under subparagraphs 1 and 2; and
4. Period falling under subparagraphs 1 through 3 for the securities of
Article 2 (1) 7 of the Act according to the character of
the relevant
securities or bonds or the objects of subscription or sale.
(2) In cases where a corrected report is submitted under
the provisions
of Article 11 of the Act due to a change in the issuing price and issuing
interest and matters related thereto,
notwithstanding the provisions of
the subparagraphs of paragraph (1), the relevant securities report shall
come into effect on
the date when three days has passed since the date
the relevant corrected report is accepted: Provided, That in cases where
the
corrected report is accepted and it comes into effect before the period
of the subparagraphs of paragraph (1) has passed, it shall
be in accordance
with the provisions of the subparagraphs of paragraph (1).
(3) In cases where it is necessary to advance the time of the effectuation
of a securities report as it falls under any of the following
subparagraphs,
the Financial Services Commission may determine the time of the
effectuation separately by reducing the period under
the provisions of the
subparagraphs of paragraph (1) and paragraph (2): 1. The contents of the securities report shall already be widely known
to the general public or shall be easily understandable: and
2. The public character of the securities issuer shall already be recognized
widely by the general public as a person established
by law or under
the supervision of the State and local governments, and the international
institution or organization prescribed
by the Financial Services
Commission.
[This Article Wholly Amended by Ordinance of the Ministry of Finance No. 1521, Apr. 1, 1982]
Article 3-2 Deleted.
ENFORCEMENT RULES OF THE SECURITIES AND EXCHANGE ACT
8
Article 3-3 Deleted.
Article 3-4 (Correction of Matters Stated in Securities Reports)
The term "time when there is a change in important matters as prescribed
by Ordinance of the Prime Minister" in the latter part of Article 11 (3)
of the Act means the relevant time falling under any of
the following
subparagraphs: 1. When there is a change in the conditions of issuance, such as issuing
price and issuing interest, etc.;
2. When there is a change in the basic date of allocation, subscription
period or payment date;
3. When the purpose of use of a fund is changed;
4. When there is a change of underwriting institution, guarantee institution
or depositing company;
5. When the financial statement or a half year report of the preceding
business year is determined;
6. When the purpose of business of a company has changed;
7. When a contract for transfer and acquisition of business or for merger
is entered into;
8. When it becomes a party to a suit, greatly affecting the management
property, etc. of a company;
9. When a bill or check issued is dishonored or the transaction with a
bank is suspended;
10. When a commencement request or a composition request for the company
reorganization procedures has been made; and
11. When reason as prescribed by the Financial Services Commission arises
as a reason corresponding to subparagraphs 1 through 10.
[This Article Newly Inserted by Ordinance of the Ministry of Finance and Economy No. 38, Aug.
10, 1998]
Article 3-5 Deleted.
Article 4 (Keeping and Displaying Explanation of Business in Public)
Places where the explanation of business should be kept under
the provisions
of Article 12 (1) of the Act shall be as set out in the following subparagraphs:
1. Head office and branch offices of the company issuing the relevant
securities;
2. Financial Services Commission;
3. Korea Securities and Futures Exchange (hereinafter referred to as
the "Exchange"); and
4. Place where the subscription business is conducted.
[This Article Wholly Amended by Ordinance of the Prime Minister No. 623, Apr.
1, 1997]
Article 4-2 Deleted.
Article 4-3 Deleted.
Article 4-4 Deleted.
Article 4-5 (Method of Calculating Number of Stocks, etc. Subject to Public
Purchase)
(1) The number of stocks, etc. under the provisions of Article 21 (4) of
the Act shall be as follows:
1. Number of stocks in cases of stock certificate;
2. Number of stocks which are the object of preemptive rights to new
stocks in cases of bonds indicating such preemptive rights to
new stocks
(Number obtained by dividing the total issuing price concerned by the
issuing price concerned, in cases where the total
amount of issuing
price and the issuing price of stocks which are the object of the preemptive
rights to new stocks are indicated);
3. Number obtained by dividing the par value by the issuing price of
the stocks to be issued by conversion in cases of convertible
debentures.
In such cases, fractions of less than 1 shall not be calculated;
4. Number of the stocks which are the object of preemptive rights to
new stocks in cases of the debentures with warrant; and
5. Number falling under subparagraphs 1 through 4 classified by the
securities subject to exchange in cases of exchangeable debentures.
(2) Total number of stocks, etc. under the provisions of Article 21 (4)
of the Act shall be the total number put the total number
of issued stocks
which have rights to vote on resolutions and the number of stocks possessed
after purchasing, etc. of the issued
stocks concerned (excluding stock
certificates and stock certificates subject to exchange) together.
ENFORCEMENT RULES OF THE SECURITIES
AND EXCHANGE ACT
10
(3) In cases where the stock option (hereinafter referred to as "stock option")
under the provisions of Article 189-4 of the Act
has been granted, the
number of stocks which have rights to vote on resolutions to be purchased
by the exercise of the stock option
concerned shall be added to the total
number of stocks, etc. of paragraph (1) and the number of stocks, etc.
of paragraph (2).
[This Article Newly Inserted by Ordinance of the Prime Minister No. 623, Apr. 1, 1997]
Article 5 Deleted.
Article 6 Deleted.
Article 7 Deleted.
Article 7-2 Deleted.
Article 8 (Explanation of Public Purchases)
(1) The matters in the subparagraphs of Article 21-2 (2) of the Act shall
be stated in the explanation of the public purchase under
the provisions
of Article 24 (1) of the Act: Provided, That in cases where a public purchaser
is a listed corporation or KOSDAQ-listed
corporation, a statement on the
matters concerning the finances of the corporation concerned may be
omitted. 1. Financial Services Commission;
2. The Exchange; and
3. Head office and branch offices of a public purchase business transactor.
Article 9 Deleted.
Article 10 Deleted.
Article 11-2 (Limit of Securities Savings of Executives and Employees of
ENFORCEMENT RULES OF THE SECURITIES AND EXCHANGE ACT
11
Securities Company)
(1) The amount of securities savings allowed to an executive or an employee
of securities companies under the provisions of Article
42 of the Act shall
be within 50/100 of a monthly salary: Provided, that if the calculated
amount is less than 100 thousand won,
it shall be 100 thousand won.
[This Article Wholly Amended by Ordinance of the Ministry of Finance No. 1745, Jan. 22, 1988]
Article 12 Deleted.
Article 13 (Outside Financial Derivatives Dealings, etc.)
(1) The term "dealings as prescribed by Ordinance of the Prime Minister"
in Article 36-2 (1) 1-2 of the Decree means dealings falling under any
of the following subparagraphs : 1. Dealings for which the parties concerned enter into an agreement to
give and receive the securities under the provisions of the
subparagraphs
Article 2 (1) of the Act or things (hereinafter referred to as "underlying
assets" in this Article) falling under
the subparagraphs of Article 1-3
(3) of these Rules at the previously fixed price, at a given time in
the future (including, in
cases of resale or repurchase, dealings of which
accounts may be settled by giving and receiving the difference between
the previously
agreed amount and the amount at the time of resale
or repurchase);
2. Dealings for which the parties concerned fix the prices of the underlying
assets or the interest rate, or the agreed numerical
value based on
the index (hereinafter referred to as "index, etc." in this Article) on
the basis thereof in advance and enter into
an agreement to give and
receive the money calculated by the difference from the numerical value
of the index, etc. concerned at
a fixed time in the future;
3. Dealings for which the parties concerned enter into an agreement to
ENFORCEMENT RULES OF THE SECURITIES AND EXCHANGE ACT
12
exchange the basic assets at the previously fixed price for a given period
in the future or exchange the money calculated by the
index, etc.;
4. Dealings for which the parties concerned enter into an agreement that
one party concerned gives the rights to materialize the
dealings falling
under any of the following items to the other party concerned, and
the other party concerned who is given the
rights pays the counterpart
the price for such rights:
(a) Dealings under the provisions of subparagraphs 1 through 3;
(b) Dealings of the basic assets; and
(c) Dealings to give and receive the money calculated by the difference
of the agreed numerical value based on the index, etc. ;
5. Dealings similar to subparagraphs 1 through 4 as dealings in connection
with the change of index of the credit risk (referring
to changes in
credit ratings, bankruptcy, rescheduling, etc. of the parties concerned
or a third party)
(2) The term "amount of money as prescribed by Ordinance of the Prime
Minister" in Article 36-2 (2) 1 (c) of the Decree means one
hundred billion
won based on the end of the quarter immediately preceding the date of
filing an application for authorization.
[This Article Newly Inserted by Ministry of Finance and Economy No. 271, Aug. 12, 2002]
Article 13-2 (Prohibited Conduct by Securities
Company, etc.)
The term "cases as prescribed by Ordinance of the Prime Minister" in the
proviso to subparagraph 15 of Article 36-3
of the Decree means cases falling
under any of the following subparagraphs:
1. In cases where it is hardly deemed that the contents of the research
and analysis data or the transaction solicitation data (hereinafter
referred to as "research and analysis data" in this Article) directly or
indirectly solicit the transactions of the securities
concerned;
2. In cases where it may not be deemed that the solicitation of transactions
or the price change by the public announcement of the
research analysis
data has been intentionally utilized; and
3. In cases where it is proved that transactions have been made without
awareness of the contents of the research and analysis data
publicly
ENFORCEMENT RULES OF THE SECURITIES AND EXCHANGE ACT
13
announced.
[This Article Wholly Amended by Ordinance of the Ministry of Finance and Economy No. 304,
Mar. 10, 2003]
Article 13-3 Deleted.
Article 14 Deleted.
Article 14-2 Deleted.
Article 14-4 Deleted.
Article 14-5 Deleted.
Article 15 Deleted.
(2) In cases where the securities company has conducted entrusted
transactions under the provisions of Article 107 (3) of the Act,
it shall
report the name of such customer, quantity, price and time of such
transactions, etc. of the securities to the Financial
Services Commission
and the Exchange respectively by the tenth day of the month the date
when such transactions have been conducted.
(3) The Financial Services Commission shall prescribe the form of contract
for the entrusted transactions, the designation of the
account administrator
ENFORCEMENT RULES OF THE SECURITIES AND EXCHANGE ACT
14
and administration, the report on the entrusted transactions and other
detailed matters necessary for the entrusted transactions.
Article 21 Deleted.
Article 24 (Receipt of Fund Deposits, etc. of Securities Finance Companies)
(1) Securities finance companies may receive a fund
deposits from persons
of the following subparagraphs under the provisions of Article 161 (1)
of the Act: 1. Listed corporations and KOSDAQ-listed corporations;
2. Insurance companies;
3. The State, local governments, various kinds of pension funds and other
public funds or their management institutions;
4. Employee stock ownership associations;
5. Persons who has a transaction account in a securities company; and
6. Investment consulting companies.
(2) An obligation as prescribed by Article 161 (2) of the Act shall be a
bill the maturity of
which arrives within a year after issuance. 1. Turn of issue, kind and number of the securities;
2. Total issuing price;
3. Conditions of issue; and
4. Other matters requested by the Korea Securities Depository established
by the provisions of Article 173 of the Act deemed necessary
in connection
with the information on the issue of securities.
ENFORCEMENT RULES OF THE SECURITIES AND EXCHANGE ACT
15
(2) The term "matter as prescribed by Ordinance of the Prime Minister"
in Article 173-8 (2) of the Act means any matter falling
under any of
the following subparagraphs: 1. Issuing company, kind and number of securities in question;
2. Name and address of the reporter of the trouble; and
3. Other matters requested by the Korea Securities Depository deemed
necessary in connection with the information on the securities
in
question.
[This Article Newly Inserted by Ordinance of the Prime Minister No. 623, Apr. 1, 1997]
Article 25 (Matters to be stated in Account
Ledger of Depositor)
The matters to be stated in the account ledger of a depositor under the
provisions of Article 174 (3) 3 of
the Act shall be as follows subparagraphs:
1. Cause of increase and decrease in the quantity of deposited securities;
2. Name and address of a pledgee in an account for the deposited securities
for the purpose of pledge;
3. Indication of the property in trust if the deposited securities are the
property in trust; and
4. Matters concerning the restriction of disposal on deposited securities.
[This Article Wholly Amended by Ordinance of the Ministry
of Finance No. 1745, Jan. 22, 1988]
Article 26 (Matters to be Stated in Account Ledger of Customer)
The matters to be stated in
the account ledger of a customer under the
provisions of Article 174-2 (1) 3 of the Act shall be as the following
subparagraphs:
1. Causes of increase or decrease in the quantity of deposited securities;
2. Name and address of a pledgee in an account for the deposited securities
for the purpose of pledge;
3. Indication of the property in trust if the deposited securities are the
property in trust; and
4. Matters concerning the restriction on disposal of the deposited securities.
[This Article Wholly Amended by Ordinance of the Ministry
of Finance No. 1745, Jan. 22, 1988]
Article 26-2 (Restriction on Return, etc. of Securities Deposited by
Customer)
(1) In cases where the Korea Securities Depository restricts the return
or the transfer between accounts of securities deposited
by customers under
the provisions of Article 174-4 (3) of the Act, it shall announce the details
ENFORCEMENT RULES OF THE SECURITIES
AND EXCHANGE ACT
16
publicly in advance.
(2) When restricting the return or transfer between accounts of securities
deposited by customers, the Korea Securities Depository
may restrict it
classified by kind of the securities as prescribed by the Financial Services
Commission.
Article 26-3 Deleted.
Article 27 (Aggregating Number of Stocks of Same Person)
(1) The term "when a person stated as a stockholder in the register of
the stockholders and a person stated as an actual stockholder in the register
of the actual stockholders are deemed the same person"
in Article 174-8
(3) of the Act means cases where the stated name is the actual name
under the provisions of subparagraph 4 of
Article 2 of the Act on Real
Name Financial Transactions and Guarantee of Secrecy and are the same
as each other.
(2) A person who is stated as a stockholder in the register of the stockholders
shall exercise the right as the stockholder personally,
such as the preemptive
rights to new stocks additionally arising by aggregating the number of
stocks under the provisions of Article
174-8 (3) of the Act. In such cases,
the issuing company, etc. of the stock certificate concerned shall notify
the Korea Securities
Depository of its details.
[This Article Newly Inserted by Ministry of Finance No. 1745, Jan. 22, 1988]
Article 27-2 (Issuance of Real Stockholder Certificates)
(1) When the Korea Securities Depository has received an application for
issuance of an actual stockholder certificate under the
provisions of Article
174-19 of the Act, it shall issue the actual stockholder certificate pursuant
to the account ledger of a
depositor for his/her portion held of a depositor
and pursuant to the account ledger of a customer of which the depositor
concerned
has notified the Korea Securities Depository for the portion
deposited by the customer.
ENFORCEMENT RULES OF THE SECURITIES AND EXCHANGE ACT
17
(2) The matters of the following subparagraphs shall be stated in the
real stockholder certificate under the provisions of paragraph
(1):
1. Name or title and address of the actual stockholder;
2. Kind and Number of stocks held;
3. Details of stockholder's rights intended to be exercised; and
4. Period of exercise of stockholder's rights.
(3) When the Korea Securities Depository issues an actual stockholder
certificate,
the purport that the disposal of the stock concerned is restricted
during the period of exercise of the stockholder's rights under
the provisions
of paragraph (2) 4 shall be indicated in the account ledger of a depositor
of the relevant depositor for the depositor's
own possession by the Korea
Securities depository and in the account ledger of a customer of the relevant
customer for the customer's
holding by the relevant depositor respectively,
when the actual stockholder certificate is returned before the period of
exercise
of the relevant stockholder's rights expires, the indication of the
purport that disposal of the relevant stock is restricted shall
be erased.
[This Article Newly Inserted by Ordinance of the prime Minister No. 623, Apr. 1, 1997]
Article 28 Deleted.
Article 34-3 Deleted.
Article 34-4 (Exemption from Presentation of Business Reports)
The cases exempted from presentation of business reports under the
provisions of Article 83-2 (2) 2 of the Decree shall be as follows:
1. In cases where, as a corporation whose grounds for dissolution has
arisen under the provisions of Article 157 of the Commercial
Act and
other Acts, the presentation of the business report of the preceding
business year is actually impossible; and
ENFORCEMENT RULES OF THE SECURITIES AND EXCHANGE ACT
18
2. In cases where an issuer of a stock certificate falling under the
requirements of the delisting is unable to present the business
report
due to a reason as recognized by the Financial Services Commission
as a reason which is not the fault of the relevant corporation.
[This Article Newly Inserted by Ordinance of the Ministry of Finance and Economy No. 38, Aug.
10, 1998]
Article 34-5 (Special Cases to Foreign Corporation, etc.)
(1) Foreign public agencies and international financial institutions not
governed by the provisions of Articles 186-2, 186-3 and 186-5 of the Act
under the provisions of Article 38-4 (1) 3 of the Decree
shall be as follows:
1. An agency, established by foreign law and managing the public utilities,
whose stake is held by a foreign government or foreign
local government;
and
2. An international financial institutions falling under any of the
subparagraphs of Article 2 (1) of the Act on the Measures for
the
Admission to International Financial Institutions.
(2) Deleted
Article 35 (Securities Subject to Restriction on Insider Trading)
The term "other securities as prescribed by Ordinance of the Prime
Minister"
in Article 188 (1) of the Act means the securities falling under any of
the following subparagraphs: 1. Participating debentures;
2. Exchangeable debentures claimable for exchange with stocks of the
relevant corporation;
2-2. Securities under the provisions of Article 2-3 (1) 6 through 8 of
the Decree (limited to cases falling under the transactions
of the stock
certificates as a result of the exercise of rights to the securities, when
applying the provisions of Article 188
(1) of the Act, it is limited to
cases of holding the position of seller of the stocks as cases in which
such person is able to
exercise the right or becoming the counterpart
of the exercise of such rights); and
ENFORCEMENT RULES OF THE SECURITIES AND EXCHANGE ACT
19
3. Futures trading deemed as securities under Article 2-3 (2) of the Decree.
[This Article Wholly Amended by Ordinance of the Ministry
of Finance and Economy No. 271,
Aug. 12, 2002]
Article 35-2 Deleted.
Article 35-3 Deleted.
Article 35-4 Deleted.
Article 35-5 Deleted.
Article 36 (Disclosing Information to Public)
The information made known to a large number of people under the provisions
of Article 188-2 (2) of the Act shall be information
falling under any of
the following subparagraphs:
1. The information for which one day has passed from the date when
the documents containing the details of the information were kept
as
prescribed by the Financial Services Commission and the Exchange
as the information stated in the documents filed or reported
to the
Financial Services Commission and the Exchange under Acts and
subordinate statutes;
2. The information for which one day has passed from the date when
its details were reported in more than two newspapers distributed
nationwide from among general daily newspapers or special daily
newspapers in the field of economy under the Registration, etc.
of
Periodicals Act;
3. The information for which 12 hours have passed after the details of
which were broadcasted through the broadcasting audible and
visible
nationwide from among the means of broadcastings (excluding special
broadcasting) under the Broadcasting Act; and
4. The information for which 24 hours have passed after the details of
which were made available to the public through electronic
communication media established and operated by the Financial
Services Commission or the Exchange.
ENFORCEMENT RULES OF THE SECURITIES AND EXCHANGE ACT
20
[This Article Newly Inserted by Ordinance of the Ministry of Finance No. 1879, Apr. 28, 1992]
Article 36-2 (Scope of Special Relations)
A person who may entrust the transaction of securities for the manipulation
of stability under the provisions of Article 83-8 (4)
3 of the Decree shall
be the company concerned or its executive in cases where the issuer of
the relevant securities subscribed
or sold (hereinafter referred to as the
"issuer of securities") is in a relationship falling under any of the following
subparagraphs
with another company, or other company is in a relationship
falling under any of the following subparagraphs with the issuer: 1. Relationship possessing the stocks or the stake exceeding 30/100 of
the total number of the stocks issued or total amount of the
investment;
and
2. Relations dominating by possessing the stocks or the stake exceeding
10/100 of the total number of stocks issued or total amount
of the
investment and maintaining the close relations continuously with the
principal management activities.
[This Article Newly Inserted by Ordinance of the Prime Minister No. 623, Apr. 1, 1997]
Article 36-3 Deleted.
Article 36-4 Deleted.
Article 36-5 Deleted.
Article 36-6 Deleted.
Article 36-7 (Elimination of Application of Period for Restriction on
Disposal and Acquisition of One's Own Stocks)
Cases not subject to restriction on disposal and acquisition under the main
sentence of Article 84-3 (2) 6 of the Decree under the
provisions of the
proviso to the same Article shall be cases falling under any of the following
subparagraphs:
1. Cases of disposing of one's own stocks exceeding the limit under the
ENFORCEMENT RULES OF THE SECURITIES AND EXCHANGE ACT
21
provisions of the subparagraphs of Article 189-2 (1) of the Act;
2. Cases of paying one's own stocks (including cases of investing in the
fund under the Intra-company Labor Welfare Fund Act) for
a retirement
allowance, a reward for distinguished service and incentive wages to
executives and employees;
2-2. Cases of disposing of one's own stocks to the employee stock ownership
association under the Framework Act on Worker's Welfare;
3. Cases of disposing of one's own stocks inevitably by Acts and subordinate
statutes or the fulfillment of obligations, etc.;
3-2.
Cases where an enterprise governed by the Act on the Improvement
of Managerial Structure and Privatization of Public Enterprises
issues
the exchangeable debentures claimable for exchange with the stocks
of the relevant enterprise privatization;
3-3. Cases where an enterprise which has acquired its own stocks from
the State or the Korea Deposit Insurance Corporation under
the
Depositor Protection Act issues the exchangeable debentures claimable
in exchange for such stocks (including stock depositary
receipts issued
in lieu of its own stocks when the relevant enterprise issues such
exchangeable debentures abroad). In such cases.
it is limited to the
exchangeable debentures claimable in exchange after six months from
the date of acquisition of its own stocks
subject to exchange: Provided,
That in cases where, as cases of issuing the exchangeable debentures
abroad, the exchangeable debentures
claimable in exchange for stock
depositary receipts issued in lieu of one's own stocks are issued, the
provisions of restriction
for six months shall not apply; and
4. Cases of disposing of one's own stocks to issue stock depositary receipts
abroad based on one's own stocks after the lapse of
the period set
by the Financial Services Commission.
[This Article Wholly Amended by Ordinance of the Ministry of Finance and Economy No. 38,
Aug. 10, 1998]
Article 36-8 Deleted.
Article 36-9 (Stock Option Grant Contracts, etc.)
(1) A corporation which has granted stock options (hereinafter referred
to as
a "stock option grant corporation") under the provisions of Article
189-4 of the Act shall enter into a contract for the matters
of the following
ENFORCEMENT RULES OF THE SECURITIES AND EXCHANGE ACT
22
subparagraphs with the executives and employees who have been granted
stock options, deliver the copy of the contract to the relevant
executives
and employees and retain the contract until the exercise period of the
relevant stock option:
1. Price of the exercise of the stock options;
2. Matters concerning the adjustment of price of the exercise of the stock
options;
3. Period of the exercise of the stock options;
4. Method and procedure for the exercise of the stock options;
5. Purport of restrictions on transfer and security offer, etc. of the stock
options;
6. Performance period of the stock options grant corporation according
to the exercise of stock options; and
7. Matters concerning the cancellation of the stock option grant.
(2) In cases where any executive or employee who has been granted
a
stock option dies, retires from office or from the service the age limit,
and retires from office or retires from service due
to any reason not
attributable to the fault of the person himself/herself, the stock option
grant corporation may have them exercise
the stock option during such
period of exercise.
(3) In cases where the deadline for the exercise of an stock option is fixed
on the date of retirement from office or from service
of the executive or
the employee concerned, when the relevant executive or employee retires
from office or from service due to
any reason not attributed to the fault
of the person himself/herself, a period of exercise of more than three months
from that
date shall be further granted.
[This Article Newly Inserted by Ordinance of the Ministry of Finance and Economy No. 38, Aug.
10, 1998]
Article 36-10 (Limit on Grant of Stock Options)
When a corporation, other than a listed corporation or KOSDAQ-listed
corporation has become a listed corporation or KOSDAQ-listed
corporation
and the limit on stocks providing on stock options has been reduced, the
stock options shall not be granted until the
allowances occur in such limit:
Provided, That such rights of stock options already granted may be exercised
ENFORCEMENT RULES
OF THE SECURITIES AND EXCHANGE ACT
23
until such deadline for exercise.
Article 36-11 (Reports and Public Announcements, etc.)
(1) When the stock option grant corporation reports under the provisions
of Article 84-6 (7) of the Decree, it shall attach the minutes of the general
meeting of stockholders (in cases falling under the
proviso to Article 189-4
(3), the minutes of the board of directors) to such report.
(2) Each stock option grant corporation shall keep the documents of the
following subparagraphs in the head office and branch offices
and offer
them for perusal by the executives and employees, the stockholders or
the creditors. In such cases, the documents of
subparagraphs 1 and 2
shall be retained from the day following the relevant special resolution
date (the resolution date of the
board of director in cases falling under
the proviso to Article 189-4 (3) of the Act) or from the date of entering
into contract
to the deadline for exercise of stock options, respectively.
The documents under subparagraph 3 shall be retained for two years
after
the end of the business year:
1. Documents reported under the provisions of Article 84-6 (7) of the
Decree (including documents attached under the provisions of
paragraph
(1));
2. Written contract for the stock option grant; and
3. Present status of the stock option grant of the relevant business year
as of the end of each business year.
[This Article Newly Inserted by Ordinance of the Ministry of Finance and Economy No. 38, Aug.
10, 1998]
Article 36-12 (Method of Calculating Value of Merger)
(1) The value of a merger between listed corporations, between
KOSDAQ-listed
corporations or between a listed corporation and a
KOSDAQ-listed corporation under the provisions of Article 84-7 (1) 1 of
ENFORCEMENT
RULES OF THE SECURITIES AND EXCHANGE ACT
24
the Decree shall be the lower value out of: the value of the arithmetical
mean of the closing price of the following subparagraphs
and the closing
price of subparagraph 3, after setting the preceding day of the earlier
date as the initial date in reckoning out
of the date of the resolution of
the board of directors for the merger and the date when a contract for
the merger has been entered
into. In such cases, the mean closing price
of subparagraphs 1 and 2 shall be calculated on the weighted arithmetical
mean of the
closing price by the volume of dealings:
1. Mean closing price for the preceding month: Provided, That in cases
where the period from the date of ex dividend or ex rights
to the initial
date in reckoning exceeds seven days as a case where there is ex dividend
or ex rights during the period subject
to calculation, it shall be the
mean closing price during that period;
2. Mean closing price for the preceding week; and
3. Most recent closing price.
(2) The term "case as prescribed by Ordinance of the Prime Minister" in
the proviso to Article 84-7
(1) 2 (a) of the Decree means cases where
the price under the provisions of the main sentence of item (c) is less
than the asset
value.
ENFORCEMENT RULES OF THE SECURITIES AND EXCHANGE ACT
25
[This Article Newly Inserted by Ordinance of the Ministry of Finance and Economy No. 38, Aug.
10, 1998]
Article 36-13 (Outside Appraisal Agency)
(1) An outside appraisal agency (hereinafter referred to as "outside appraisal
agency") under the provisions of Article 84-7 (2)
1 of the Decree shall
be a person falling under any of the Following subparagraphs:
1. A company permitted to conduct the procedures under Article 28 (2)
3 of the Act on the stock;
2. A person permitted to engage in credit appraisal business under the
provisions of Article 4 of the Act on the Use and Protection
of Credit
Information Act; and
3. An accounting corporation under the Certified Public Accountants Act.
(2) In cases where a person of the subparagraphs of paragraph
(1) falls
under any of the following subparagraphs, he/she shall not operate the
appraisal business during such period: Provided,
That in cases of
subparagraph 4, he/she is unable to operate the appraisal business for
the relevant specific enterprise, only:
1. That period of restriction in cases where a person under paragraph
(1) 1 against whom measures have been taken for restriction
on
participation in subscription of stocks, from the Financial Services
Commission;
2. That period of suspension of business in cases where a person under
paragraph (1) 2 against whom measures have been taken for
suspension
of the credit appraisal business, from the Financial Services Commission
in connection with credit appraisal business;
3. That period of suspension in cases where a person under paragraph
(1) 3 against whom measures have been taken for suspension of
business
under the provisions of the Act on External Audit of Stock Companies;
and
4. That period of restriction in cases where a person under paragraph
(1) 3 against whom measures have been taken for restriction
on the
audit business on the specific company under the Act on External Audit
ENFORCEMENT RULES OF THE SECURITIES AND EXCHANGE
ACT
26
of Stock Companies.
(3) In cases where an outside appraisal agency is in a special relationship
with a company subject to appraisal as prescribed by
the Financial Services
Commission, it shall not conduct the appraisal for the merger.
[This Article Newly Inserted by Ordinance of the Ministry of Finance and Economy No. 38, Aug.
10, 1998]
Article 36-14 (Special Cases to Issuance of Stocks without Rights to Vote
on Resolutions)
(1) In cases where a listed corporation, KOSDAQ-listed corporation or
corporation subscribing to or selling stocks to list the stocks
newly issues
the foreign securities as stocks without rights to vote on resolutions by
the issuance requirements and methods as
prescribed by the Financial
Services Commission under the provisions of Article 192 (1) 4 of the Act,
it shall not be included
in the limit of the stocks without rights to vote
on resolutions.
(2) Deleted
Article 36-15 (Issuance of Depositary Certificates)
(1) In cases where the Korea Securities Depository issues a depositary
certificate
under the provisions of the latter part of Article 84-16 (2) of
the Decree, it shall issue a depositary certificate according to
the account
ledger of depositor for possession by the depositor and according to the
account ledger of customer of which the depositor
concerned has notified
the Korea Securities Depository for the deposit on behalf of the customer.
(2) The matters of the following
subparagraphs shall be stated in a depositary
certificate under the provisions of paragraph (1):
ENFORCEMENT RULES OF THE SECURITIES
AND EXCHANGE ACT
27
1. Name, title and address of depositor or actual owner on the account
ledger of customer;
2. Kind and number of securities;
3. Purpose of use of depositary certificate;
4. Purport that it shall not be used for purpose other than payment in
lieu of a guarantee or a deposit under the provisions of Article
84-16
(1) of the Decree; and
5. Purport that a person who has received a payment by a depositary
certificate in lieu of a guarantee or a deposit under the provisions
of
Article 84-16 (1) of the Decree may apply for the transfer of the relevant
depositary securities to his/her own account on the
account ledger of
the customer or the account ledger of the depositor.
(3) When the Korea Securities Depository issues a depositary
certificate,
it shall be indicated on the account ledger of depositor of the depositor
concerned by the Korea Securities Depository
for his/her own possession
of depositor, and on the account ledger of customer of the customer concerned
by the depositor concerned
for the deposit of customer that the disposition
of the securities concerned shall be restricted until the depositary certificate
concerned is returned or the application for transfer is made by a person
who has received the payment in substitute under the
provisions of Article
84-16 (4). The indication of such restriction shall be erased when the
depositary certificate concerned is
returned or the application for the
transfer is made.
[This Article Newly Inserted by Ordinance of the Ministry of Finance and Economy No. 38, Aug.
10, 1998]
Article 36-16 (Retention Place of Convocation Notice of General Meeting
of Stockholders and Matters of Official Announcement)
Places
where a listed corporation or KOSDAQ-listed corporation should
a notice of the convocation of the general meeting of stockholders
or the
matters of an official announcement under the provisions of Article 191-10
(3) of the Act shall be as follows: 1. Head office and branch offices of a listed corporation or KOSDAQ-listed
corporation;
2. Transfer agency;
ENFORCEMENT RULES OF THE SECURITIES AND EXCHANGE ACT
28
3. Financial Services Commission; and
4. The Exchange.
[This Article Newly Inserted by Ordinance of the Ministry of Finance and Economy No. 38, Aug.
10, 1998]
Article 36-17 Deleted.
Article 36-18 (Standard of Outside Financial Derivatives Dealings)
(1) The term "foreign exchange market as prescribed by Ordinance
of the
Prime Minister" in subparagraph 1 of Article 84-28 of the Decree means
the exchange market where dealings are made according
to a standardized
procedure and method.
(2) The term "person as prescribed by Ordinance of the Prime Minister"
in subparagraph 2 of Article 84-28 of the Decree means a
person under
the following subparagraphs:
1. A person falling under any of the subparagraphs of Article 61 (2) of
the Enforcement Decree of the Corporate Tax Act;
2. A fund governed by the Framework Act on Fund Management;
3. A corporation operating a mutual aid business pursuant to law;
4. A postal insurance reserve under the Act on Special Accounts for Postal
Insurance;
5. An indirect investment organization (including a foreign indirect
investment asset management business operator) under the Indirect
Investment Asset Management Business Act;
6. A futures business operator under the Futures Trading Act;
7. A listed corporation, KOSDAQ-listed corporation or corporation whose
credit rating is above investment grade;
8. The Government, local governments or government-invested
institutions under the Framework Act on the Management of
Government-Invested
Institutions; and
9. A foreign financial institution (including a subsidiary whose performance
of outside derivative securities dealings is guaranteed
by a foreign
financial institution) whose credit appraisal rating of a credit appraisal
agency internally recognized is above investment
grade.
ENFORCEMENT RULES OF THE SECURITIES AND EXCHANGE ACT
29
(3) The term "limit as prescribed by Ordinance of the Prime Minister"
in subparagraph 3 of Article 84-28 of the Decree means 30/100
of the
equity capital.
[This Article Newly Inserted by Ordinance of the Ministry of Finance and Economy No. 271,
Aug. 12, 2002]
Article 36-19 (Audit Completion Reports)
An auditor under the provisions of the Act on External Audit of Stock
Companies shall submit an audit completion report attached
with an audit
report to the Financial Services Commission seven days prior to the date
of a regular general meeting of the stockholders
of the relevant audited
corporation, and the Financial Services Commission shall notify the
Exchange of the audit report without
delay when an audited corporation
is a listed corporation or KOSDAQ-listed corporation: Provided, That when
an audit is made during
a fiscal year, an audit completion report shall
be submitted immediately after completion of an audit.
[This Article Newly Inserted by Ordinance of the Ministry of Finance and Economy No. 38, Aug.
10, 1998]
Article 36-20 (Special Cases of Audit on Foreign Corporations, etc.)
(1) A foreign public agency or an international financial institution
deemed
to have been audited under the provisions of Article 84-31 (1) 1 of the
Decree shall be the agency and the organization
under the subparagraphs
of Article 34-5 (1):
ENFORCEMENT RULES OF THE SECURITIES AND EXCHANGE ACT
30
Article 36-21 (Place to Retain Reference Documents)
Places where reference documents concerning the proxy exercise of the
right
to vote on resolutions under the provisions of Article 85 (1) of the
Decree should be retained shall be the places in the subparagraphs
of
Article 36-16.
[This Article Newly Inserted by Ordinance of the Ministry of Finance and Economy No. 38, Aug.
10. 1998]
Article 37 Deleted.
Article 38 (Person Exempted from Duty to Report on Holdings Status,
etc.)
A person who is exempted from the duty to report on the stock holding
status and details of changes therein under the provisions
of Article 86-3
(1) 5 of the Decree shall be the issuer of the relevant stocks, etc.
Article 38-2 (Payment Notice, etc. of Penalty Surcharges)
(1) When the Financial Services Commission notifies the payment of a
penalty surcharge under the provisions of Article 91 (3) of the Decree,
it shall be notified by notice in which the details in the
following
subparagraphs are stated. The same shall also apply when the payment
of a penalty surcharge is notified by the extension
of payment period or
the determination of the payment in installments under the provisions
of Article 206-15 (1) of the Act:
1. Issuance number;
2. Payer of penalty surcharge;
3. Date of violation;
4. Classification of violation;
5. Amount of penalty surcharge payable;
6. Payment deadline; and
7. Receiving agency.
(2) A person who intends to apply for an extension of the payment deadline
or for payment of a penalty surcharge
in installments under the provisions
of Article 92 (3) of the Decree shall apply with an application in which
the matters of the
following subparagraphs are stated. In such cases, the
ENFORCEMENT RULES OF THE SECURITIES AND EXCHANGE ACT
31
documents proving the matter of subparagraph 6 shall be attached:
1. Issuance number of the payment notice of penalty surcharge;
2. Date of violation;
3. Classification of violation;
4. Imposition Amount of penalty surcharge;
5. Payment deadline; and
6. Reason for application for the extension, etc. of payment deadline.
(3) Form of notice and an application under the provisions
of paragraphs
(1) and (2) shall be prescribed by the Financial Services Commission.
Article 39 (Procedure for Collection of Fines for Negligence)
The Enforcement Rules of the Management of National Funds Act shall
apply mutatis mutandis to the procedure for collection of fines for negligence
under the provisions of Article 94 (4) of the Decree.
In such cases, the
method of raising objection and period, etc. within which to raise objections
shall be stated together in a
notice of payment.
[This Article Newly Inserted by Ordinance of the Ministry of Finance No. 1975, Apr. 30, 1994]
ADDENDA
These Rules shall enter into force on the date of their promulgation.
Article 2 (Transitional Measures Concerning Accounting Firm
and
Counting Houses)
(1) Any accounting firm or counting house registered with the Ministry
of Finance at the time when these Rules enter into force
shall be deemed
to have been registered under these Rules, and the constituents belonging
to such firm or such counting house shall
be deemed to have joined the
relevant accounting firm or counting house on the date of these Rules
enter into force.
(2) In cases where an accounting firm or counting house is unable to audit
a corporation subject to audit because a number of certified
public
accountants belonging to an accounting firm or counting house is less than
the standard in subparagraph 2 of Article 32,
the Minister of Finance
ENFORCEMENT RULES OF THE SECURITIES AND EXCHANGE ACT
32
may adjust the standard under the provisions of the same Article limited
to during the year of 1977 only.
(3) An accounting firm or counting house which has entered into an audit
contract with a corporation to be audited at the time when
these Rules
enter into force shall be deemed to have entered into an audit contract
under these Rules. In such cases, the provisions
of Article 32 shall not
apply.
ADDENDUM
(2) (Transitional Measures) Interest rates concerning the credit offering
at the time when these Rules enter into force shall be
deemed to have obtained
the approval of the Minister of Finance under this Rule.
ADDENDUM
(2) (Transitional Measures concerning Transitional Period after Effectuation)
In cases where the securities report has come into
effect under the provisions
of Article 8 (1) of the Act prior to these Rules entering into force, a transitional
period for subscription
and sale of the securities concerned and issuance
ENFORCEMENT RULES OF THE SECURITIES AND EXCHANGE ACT
33
of new stocks shall be in accordance with the former provisions notwithstanding
the amended provisions of Article 1.
(3) (Transitional Measures concerning Time of Effectuation of Report) Time
of effectuation on the securities report accepted under
the provisions of Article
9 (1) of the Act prior to these Rules entering into force shall be in accordance
with the former provisions
notwithstanding the amended provisions of the
proviso to Article 3 (1) 3.
(4) (Transitional Measures concerning Time of Effectuation of Corrected
Report) Time of effectuation on the corrected securities
report accepted under
the provisions of the former Article 3 (20) prior to the enforcement of these
Rules shall be in accordance
with the former provisions notwithstanding
the amended provisions of Article 3 (2).
ADDENDA
(2) (Applicability) These Rules shall apply from the securities report submitted
to the Securities Management Commission under the
provisions of Article
8 of the Act after these Rules enter into force.
ADDENDUM
ADDENDA
(1) (Enforcement Date) These Rules shall enter into force on the date of
their promulgation.
(2) (Abrogation of other Acts and subordinate Statutes) A designation
ordinance of the securities payable in lieu of a guarantee,
etc. shall be
abrogated.
ADDENDA
(2) (Applicability) The amended provisions of Article 15 (2) and (4) shall
apply from the business year firstly commenced after
these Rules enter into
force.
ADDENDA
(2) (Applicability concerning Time of Effectuation of Reports) The amended
provisions of Article 3 concerning the time of effectuation
of securities reports
shall apply from the first securities report accepted after these Rules enter
into force.
ADDENDA
(2) (Transitional Measures concerning Notice to Korea Securities Depository)
The term "Korea Securities Depository" in the amended
provisions in the
latter part of Article 27 (2) shall be deemed "Transfer Settlement Company"
until the Korea Securities Depository
is established under the Securities
and Exchange Act.
ADDENDA
(2) (Transitional Measures concerning Fee, etc.) Fees, etc. shall be in
ENFORCEMENT RULES OF THE SECURITIES AND EXCHANGE ACT
35
accordance with the former provisions until the Commission sets the rate
under the amended provisions of Articles 22 and 22-2.
ADDENDA
ADDENDA