Home | Databases | WorldLII | Search | Feedback Laws of the Republic of Korea

SPECIAL ACT ON THE TRANSFER OF DORMANT ACCOUNTS

1

SPECIAL ACT ON THE TRANSFER OF DORMANT ACCOUNTS

Act No. 8573, Aug. 3, 2007

Article 1 (Purpose)

The purpose of this Act is to prescribe the matters necessary for the transfer of dormant deposits to an active account opened in the name of the original rightful owner, at the relevant financial institution or another financial institution, and to protect the rights and interests of the original rightful owner of the dormant deposit.

Article 2 (Definitions)

The definitions of terms used in this Act shall be as follows:

1. The term "financial institution" means an agency falling under any of the following items:

(a) Financial institution under the Banking Act;

(b) The Korea Development Bank under the Korea Development Bank Act; (c) The Industrial Bank of Korea under the Industrial Bank of Korea Act; (d) Insurance company under the Insurance Business Act; (e) Agricultural cooperative and the National Agricultural Cooperative Federation under the Agricultural Cooperatives Act; (f) Fisheries cooperatives and the National Federation of Fisheries Cooperatives under

the Fisheries Cooperatives Act;

(g) Savings banks under the Mutual Savings Banks Act; (h) Community credit cooperatives and the Korean Federation of Community Credit Cooperatives under the Community Credit Cooperatives Act; (i) Credit union and the National Credit Union Federation of Korea under the Credit Unions Act;

(j) Merchant bank under the Merchant Banks Act;

(k) Postal office under the Postal Savings and Insurance Act; or (l) Other agencies dealing with financial business as prescribed by Presidential Decree.

2. The term "deposit, etc." means those falling under any of the following items:

(a) Money that a financial institution has raised by assuming liabilities SPECIAL ACT ON THE TRANSFER OF DORMANT ACCOUNTS

2

from the many and undefined persons by means of deposits, installment savings, installments, etc.; or

(b) Refunds, insurance benefits and dividends for a policyholder that a financial institution shall pay in the future according to the insurance contract.

3. The term "dormant deposit" means a deposit, etc. for which obligatory rights or claims have extinguished by negative prescription;

4. The term "original rightful owner of dormant deposit" means the person who has lost the obligatory rights or claims to the deposit, etc. because it has extinguished by negative prescription; and

5. The term "active account" means an account for which a financial institution assumes liabilities according to the provisions of relevant Acts or to the contract between interested parties: Provided, That the account which is limited in the fulfillment, etc. of liabilities according to the order of temporary seizure, etc. under Article 280 of the Civil Execution Act shall be excluded.

Article 3 (Transfer of Dormant Deposits)

Financial institutions may transfer the dormant deposit of any amount less than the amount prescribed by Presidential Decree to an active account of the original rightful owner of the dormant deposit. Article 4 (Renunciation of Benefit of Prescription) As for the dormant deposit transferred under Article 3, the financial institution concerned shall be deemed to have renounced the benefit of prescription.

Article 5 (Special Cases Concerning Supply and Use of Information on Transfer of Dormant Deposit)

(1) When a financial institution transfers a dormant deposit to the active account of another financial institution, it shall supply information, such as the name, resident registration number, name of financial institution, account number, amount, last date of transaction, date of establishment of account, etc. of the original rightful owner of the dormant deposit to the relevant financial institution by means prescribed by Presidential Decree.

(2) The financial institution that has been supplied with information under paragraph (1) may use such information for the transfer of dormant deposit. (3) As for the supply of information under paragraph (1) and the use of information under paragraph (2), it shall be deemed that approval under Article 4 (1) of the Act on the Real Name Financial Transactions and Guarantee of Secrecy and Article 23 (1) of the Use and Protection of Credit Information Act has been obtained.

SPECIAL ACT ON THE TRANSFER OF DORMANT ACCOUNTS

3

ADDENDA

(1) (Enforcement Date) This Act shall enter into force on the date of its promulgation.

(2) (Period of Validity) This Act shall remain in force for six months after this Act enters into force.

(3) (Applicability) This Act shall be applicable to the dormant deposits arrising in 2003 onwards, and may be applicable to dormant deposits arrising before then in cases where financial institutions renounce the benefit of prescription.