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Laws of the Republic of Korea |
1
USE AND PROTECTION OF CREDIT INFORMATION ACT
Act No. 4866, Jan. 5, 1995
Amended by Act No. 5378, Aug. 28, 1997
Act No. 5453, Dec. 13, 1997
Act No. 5493, Dec. 31, 1997
Act No. 5505, Jan. 13, 1998
Act No. 5694. Jan. 29, 1999
Act No. 5982, May 24, 1999
Act No. 6022, Sep. 7, 1999
Act No. 6172, Jan. 21, 2000
Act No. 6428, Mar. 28, 2001
Act No. 6562, Dec. 31, 2001
Act No. 6705, Aug. 26, 2002
Act No. 7110, Jan. 29, 2004
Act No. 7344, Jan. 27, 2005
Act No. 7428, Mar. 31, 2005
Act No. 7883, Mar. 24, 2006
Act No. 8701, Dec. 21, 2007
Act No. 8863, Feb. 29, 2008
CHAPTER GENERAL PROVISIONS
Article 1 (Purpose)
The purpose of this Act is to contribute to the establishment of a sound credit order by promoting the credit information business soundly and pursuing the efficient utilization and systematic management of credit information, and by protecting privacy adequately from the misuse and abuse of credit information.
Article 2 (Definitions)
The definitions of terms used in this Act shall be as follows:
1. The term "credit information" means information as determined by
Presidential Decree, which is necessary for the judgement on
iden-
tification, credit rating, and credit transactions capacities of trans-
USE AND PROTECTION OF CREDIT INFORMATION ACT
2
acting parties in commercial transactions including financial trans-
actions;
2. The term "credit information object" means a person identified by the
processed credit information, who is an object of the credit
infor-
mation concerned;
3. The term "credit information business" means operation of all or part of
activities listed in any subparagraphs of Article 4 (4)
as a business;
4. The term "operator of credit information business" means a person
who has been licensed by the Financial Services Commission pursuant
to the provisions of Article 4 to run credit information business;
5. The term "credit information collection agency" means a person reg-
istered pursuant to the provisions of Article 17 (1), who
manages and
utilizes intensively credit information;
6. The term "credit information provider or user" means a person pre-
scribed by the Presidential Decree, who provides any operator
of credit
information business or credit information collection agency with credit
information obtained or produced in relation
to his own business for
purposes of commercial transactions such as financial transactions
with customers, or who has been continuously
supplied with credit
information from the operator of credit information business or credit
information collection agencies, and
uses such information for his own
business;
7. Deleted; 8. The term "credit inquiry service" means the act of collecting, adjusting
and processing credit information to furnish such credit
information
to clients upon their requests;
9. The term "credit survey service" means the act of surveying credit
information to furnish such credit information to clients upon
their
requests;
10. The term "debt collection service " means the act of exercising claims
(limited to monetary claims that accrue from commercial
acts pro-
vided for in the Commercial Act and claims for which any credit in-
formation business operator is commissioned to collect
them pursuant
to any other Act) in lieu of creditors through asset investigations of
persons who fail to repay the debts within
the agreed time limit, de-
mands for repayment, or acceptance of payment from debtors upon
USE AND PROTECTION OF CREDIT INFORMATION
ACT
3
delegation by creditors who are credit information providers or users;
11. The term "credit rating service" means the act of rating the possi-
bility of repaying the principal and interest of securities
prescribed
by the Presidential Decree as deemed necessary to make an objective
rating thereof for the protection of investors from
among the secu-
rities under the Securities and Exchange Act; and
12. The term "processing" means the act of inputting, saving, working on,
editing, searching, deleting and printing credit information
by using
computers, or providing credit information to others by means of delivery,
postal service, or electronic transmission,
or other similar acts.
Article 3 (Promotion of Credit Information Business)
(1) Where the Financial Services Commission deems it
necessary for the
improvement of abilities of the operator of credit information business to
provide credit information and for
the smooth utilization of credit information,
it may development plans for promotion of credit information business.
(2) Where it is necessary for the smooth implementation of plans as pre-
scribed in the provisions of paragraph (1), the Financial
Services Com-
mission may request cooperation of the heads of the administrative agencies
concerned, and the heads of the administrative
agencies concerned who
receive the request shall comply with it in the absence of justifiable
grounds.
CHAPTER LICENSING AND ACTIVITIES
OF CREDIT INFORMATION
BUSINESS
Article 4 (Licensing of Business)
(1) Any person who intends to run credit information business shall obtain
a license from the Financial Services Commission according
to the types
of business as prescribed in paragraph (4).
(2) Only the person falling under each of the following subparagraphs is
USE AND PROTECTION OF CREDIT INFORMATION ACT
4
eligible to be granted a license for the service as prescribed in paragraph
(4) 1 through 3: 1. The Credit Guarantee Fund established pursuant to the Credit Guar-
antee Fund Act;
2. The Korea Technology Credit Guarantee Fund established pursuant
to the Korea Technology Credit Guarantee Fund Act;
3. A credit guarantee foundation established pursuant to the Regional
Credit Guarantee Foundation Act;
4. A corporation whose not less than 50/100 of the capital is invested
by financial institutions, etc. prescribed by the Presidential
Decree;
and
5. The Korea Export Insurance Corporation established pursuant to the
Export Insurance Act.
(3) Any person falling under any of the following subparagraphs shall
be prohibited from obtaining a license for the service of
paragraph (4)
4:
1. A corporation whose not less than 10/100 of the capital is invested
by the enterprise group restricted on mutual contribution
as pre-
scribed in Article 9 of the Monopoly Regulation and Fair Trade Act
(including the specially related person as prescribed
in Article 7 of the
same Act; hereinafter referred to as a "company affiliated with the
enterprise group restricted on mutual contribution");
2. A corporation whose not less than 10/100 of the capital is invested
by financial institutions, etc. as prescribed in paragraph
(2) 4 (includ-
ing the specially related person under Article 7 of the Monopoly
Regulation and Fair Trade Act; hereinafter referred
to as "investment
financial institutions, etc."); and
3. A corporation whose largest investor is a corporation falling under
each of the following items:
(a) A corporation whose not less than 10/100 of the capital is invested
by a company affiliated with the enterprise group restricted
on
mutual contribution; and
(b) A corporation whose not less than 10/100 of the capital is invested
by the investment financial institutions, etc.
USE AND PROTECTION OF CREDIT INFORMATION ACT
5
(4) Kinds of credit information businesses shall be as follows and any
operator of credit information business may provide services
for which he
has obtained approval from the Financial Services Commission in order to
render the service of each of the following
subparagraphs and to attain the
objectives of Article 1:
1. The credit inquiry service and other services incidental thereto;
2. The credit survey service and other services incidental thereto;
3. The service of collecting claims and other services incidental thereto;
and
4. The credit rating service and other services incidental thereto.
(5) Any person who intends to get the license referred to in
paragraph (1)
shall file an application with the Financial Services Commission under the
conditions as prescribed by the Presidential
Decree.
(6) The Financial Services Commission may attach conditions to the license
referred to in paragraph (1).
(7) Where any person who intends to modify matters which have been
licensed pursuant to the provisions of paragraph (1), he shall
obtain a
license of the Financial Services Commission in accordance with the
Presidential Decree: Provided, That the same shall
not apply to the case
where minor matters prescribed by the Presidential Decree are modified.
(1) Any person who intends to get the license for the credit information
business in accordance with the provisions of Article 4
(1) shall satisfy
requirements falling under each of the following subparagraphs:
1. He is required to install physical facilities, including manpower and
computer equipment, which are adequate to run the credit
informa-
tion business;
2. He is required to make his business plan sound;
3. Major investors prescribed by the Presidential Decree are required
USE AND PROTECTION OF CREDIT INFORMATION ACT
6
to have full capacity to make necessary investments, sound finan-
cial standing and social credit; and
4. He is required to have the expertise adequate to run the credit infor-
mation business.
(2) Detailed matters necessary for the license referred to in paragraph (1)
shall be prescribed by the Presidential Decree.
[This Article Newly Inserted by Act No. 6172, Jan. 21, 2000]
Article 4-3 (Publication of License, etc.)
The Financial Services Commission shall, when it grants the license in
accordance with the provisions of Article 4 (1) or cancels
the license in
accordance with the provisions of Article 12, promptly publish such actions
in the Official Gazette and make them
known to the public by using
computer communications, etc.
A person who intends to obtain a license for credit information busi-
ness shall possess capital or fundamental property as classified
in the
following subparagraphs:
1. Not less than five billion won, where his business activities include
activities of the credit inquiry service and credit rating
service; and
2. Not more than five billion won but not less than the amount as pre-
scribed by the Presidential Decree, where he operates credit
inves-
tigation activities and debt collection activities, separately or jointly.
Article 6 Deleted.
Any operator of credit information business may receive investigation
fees, inquiry fees, debt collection fees or other charges
from users of credit
information within the scope of the maximum limit as determined by the
Financial Services Commission.
(1) Where any operator of credit information business intends to transfer
or take over all of his business (including cases similar
thereto) or to
merge with another juristic person, he shall obtain authorization from
USE AND PROTECTION OF CREDIT INFORMATION
ACT
7
the Financial Services Commission as determined by the Presidential Decree:
Provided, That if he intends to transfer or take over
a part of such business,
he shall report to the Financial Services Commission in advance.
(2) Where the operator of credit information business transfers his busi-
ness or merges with another juristic person on authorization
or by making
a report referred to in paragraph (1), the transferee, or the juristic per-
son which continue to exist after the
merger (excluding where the juristic
person which is an operator of credit information business amalgamates
with a juristic person
which is not an operator of credit information busi-
ness) or a juristic person newly established due to the merger shall succeed
to the status of the transferrer or the juristic person before the merger
as an operator of credit information business. In this
case, a license
granted to the existing operator of credit information business shall lose
effect (limited to the extent of the
transferred business in case of a partial
transfer under the proviso of paragraph (1)).
(3) The provisions of Articles 4 (2) and (3) and 9 (1) shall apply mutatis
mutandis to the cases referred to in paragraph (1).
(4) Where the operator of credit information business intends to sus-
pend or close all or part of his businesses, he shall report
to the Financial
Services Commission.
1. Minors: Provided, That this shall not apply to the case where they
are employed or appointed for activities as determined by the
Finan-
cial Services Commission;
2. Legally incompetent persons or quasi-incompetent persons;
3. Persons who have yet to be rehabilitated after having been declared
USE AND PROTECTION OF CREDIT INFORMATION ACT
8
bankrupt;
4. Persons who have been sentenced to imprisonment without prison la-
bor or a severer punishment and for whom three years have not
passed since the completion of the sentence or exemption from the
sentence;
5. Persons who are in a stay period after having been sentenced to a
stay of the execution of the imprisonment without prison labor
or a
severer punishment;
6. Persons who have been removed from their post or dismissed and
for whom five years have yet to elapse from the date of removal
or
dismissal; and
7. Persons who have worked as officers or employees of juristic persons
or companies whose business licenses or authorizations, etc.
have
been cancelled (referring to persons, prescribed by the Presidential
Decree, who have been directly or correspondingly responsible
for
causes of such cancellation) and for whom 5 years have yet to elapse
from the date of cancellation of such business licenses
or authori-
zations.
(2) Where officers or employees who are engaged in credit information
business carry out activities of collecting or investigating
credit infor-
mation or collecting debts, they shall carry certificates indicating their
engagement in credit information business
and present it to the persons
concerned.
Article 9-2 (Matters to be Observed by Operators of Credit Rating Service)
(1) Any person who has obtained a license for the service
as prescribed
in Article 4 (4) (hereinafter referred to as "operator of credit rating ser-
vice") shall, when he makes a credit
rating for clients upon their request,
take into account not only their financial position and business achieve-
ments but their
comprehensive business prospects such as their business
risk, management risk and financial risk, etc.
(2) Any operator of credit rating service shall be prohibited from mak-
ing a credit rating on securities issued by a person, prescribed
by the
Presidential Decree, with whom the former is in an investment relation
of higher than a certain ratio.
(3) In the event that any operator of credit rating service makes a credit
rating on securities issued by a person who is not prescribed
by the
USE AND PROTECTION OF CREDIT INFORMATION ACT
9
Presidential Decree, but with whom the former is in an investment rela-
tion, the operator of credit rating service shall enter
matters concerning
such investment relation in his written credit rating statement.
(4) Any operator of credit rating service shall,
when he delivers a written
credit rating statement to his client who has requested such credit rat-
ing, append a document describing
matters prescribed by the Financial
Services Commission as deemed necessary to grasp his credit-rating
capability and credit rating
records under paragraph (5) to such written
credit rating statement.
(1) In the event that a company affiliated with the enterprise group
restricted on mutual contribution or an investment financial
institution,
etc. holds stocks in excess of the investment limits as prescribed in each
subparagraph of Article 4 (3) (including
equity shares; hereafter in this
Article the same shall apply), the scope of exercising the voting right on
the relevant stocks
shall be restricted to the limits of each of the same
subparagraph and such stock holdings shall be promptly brought into
conformity
with such investment limits.
(2) The Financial Services Commission may, if a company affiliated with
the enterprise group restricted on mutual contribution or
an investment
financial institution, etc. fails to comply with the provisions of para-
graph (1), order such company or such investment
financial institution,
etc. to dispose of the stocks held in excess of the investment limits within
the limit of six months.
Feb. 29, 2008>
[This Article Newly Inserted by Act No. 6428, Mar. 28, 2001]
Article 10 (Prohibition on Concurrent Operation of Business)
Any operator
of credit information business shall be prohibited from
concurrently running another business for the purpose of making profits
and any of his standing officers shall be prohibited from working as a
standing officer for another profit-making juristic person:
Provided, That
the same shall not apply to the case where he has obtained an approval
of the Financial Services Commission.
Persons other than operators of credit information business who have
been licensed pursuant to this Act shall not use credit information,
credit
survey, credit rating or any other similar terms in their trade names.
Article 12 (Suspension of Activities and Revocation of License)
(1) The Financial Services Commission may revoke a license or au-
thorization for the operator of credit information business falling under
any of the following subparagraphs:
1. Where he obtains the license referred to in Article 4 (1) or (7) or autho-
rization referred to in Article 8 (1) through fraud
or other unlawful
means;
2. Where he fails to meet the investment requirements for financial
institutions, etc. under Article 4 (2) 4: Provided, That the
same
shall not apply to a case where the stock of a corporation that has
obtained a license for the credit information business
is listed on or
registered with the securities market or KOSDAQ under the Secu-
rities and Exchange Act;
3. Where he violates the provisions of Article 4 (3);
4. Where the capital (referring to the amount obtained by deducting to-
tal amount of debts from total amount of assets on the balance
sheet
as of the end of the current business year) of the operator of credit
information business [excluding any operator of credit
information
business for whom three business years (five business years if the
credit inquiry service or the credit rating service
is included) have
USE AND PROTECTION OF CREDIT INFORMATION ACT
11
yet to elapse from the date on which he obtains a license for the
credit information business] has continuously failed to meet the
re-
quirements for the capital and basic property as prescribed in Ar-
ticle 5 for not less than one business year;
5. Where he violates an order for suspension of business or performs
an act falling under suspension of business within one year
after
the date on which he receives a disposition of suspension;
6. Where he violates the provisions of subparagraph 1 through 3, 5 or
8 of Article 26;
6-2. Where he violates the provisions of Article 26-2 (1) 1, 2 or 4; and
7. Where he violates the contents and terms of a license or authorization.
(2) The Financial Services Commission may order to suspend
all or part
of business for a fixed period of not less than six months where an operator
of credit information business falls under
any of the following sub-
paragraphs:
1. Where he receives the charges, etc. in excess of the maximum limit
referred to in Article 7;
2. Where he violates the provisions of Article 9 (1), 9-2 (2), 10, 15, 26-2
(1) 3 or 26-2 (2);
3. Where he violates an order issued by the Financial Services Commission
under this Act;
4. Where he violates the provisions of subparagraph 6 of Article 26; and
5. Where he violates other Acts and subordinate statutes or the articles
of incorporation or causes or threatens to cause serious
injury to
public interests due to unsound operational conditions.
(3) Detailed standards for administrative dispositions referred
to in
paragraph (2) shall be determined by the Presidential Decree in con-
sideration of the types and extents, etc. of offenses.
AND PROCESSING, ETC. OF
CREDIT INFORMATION
Article 13 (Principles of Collection and Investigation)
USE AND PROTECTION OF CREDIT INFORMATION ACT
12
In collecting and investigating credit information, operators of credit
information business, credit information collection agencies,
and credit
information providers or users (hereinafter referred to as "operators of
credit information business, etc.") shall make
clear the purposes of col-
lection and investigation within the scope of business activities as
determined by this Act or the articles
of incorporation, and shall employ
fair and reasonable means to the extent that they are necessary for
attainment of the purposes.
Article 14 (Requests for Inspection and Provision of Credit Information
in Respect of Public Institutions)
(1) The operators of credit information business or credit information
collection agencies may request access to credit information
which is held
by the State, local governments or public organizations as prescribed
by the Presidential Decree (hereinafter referred
to as "public institu-
tions") and which is allowed to be made public pursuant to the provi-
sions of related Acts and subordinate
statutes. In this case, the public
institutions in receipt of the request shall comply with it unless it has
a special ground.
1. Information concerning national security or secrets;
2. Trade secrets or creative research and development information of
enterprises;
3. Individual political thought, religious beliefs and other private infor-
mation unrelated to credit information;
4. Uncertain personal credit information;
5. Information collection of which is prohibited by other Acts; and
USE AND PROTECTION OF CREDIT INFORMATION ACT
13
6. Other information as prescribed by the Presidential Decree.
(2) Where any operator of credit information business, etc. intends
to
collect or investigate information concerning personal illness, he shall
obtain the consent of the person concerned and use
the information con-
cerned only for the purposes prescribed by the Presidential Decree.
Article 16 (Entrusting of Collection,
Investigation and Processing)
(1) Any operator of credit information business, etc. may entrust, within
the scope of his business
activities, collection and investigation of credit
information to other operator of credit information business, etc. with
the
consent of his clients.
(2) The operator of credit information business, etc. may entrust the
processing of collected credit information to another person.
In this case,
the person to be entrusted shall satisfy certain requirements as deter-
mined by the Presidential Decree, and in
carrying out the activities en-
trusted the provisions of Articles 19 through 21, 26, 28 and 29 (includ-
ing penalty provisions)
shall apply.
AND MANAGEMENT OF
CREDIT INFORMATION
Article 17 (Credit Information Collection Agencies)
(1) Any operator of credit information business who intend to manage
credit
information systematically and comprehensively by collecting and
keeping it intensively and to exchange and utilize credit information
among operators of credit information business (hereinafter "manage
and utilize intensively credit information"), shall register
credit infor-
mation collection agencies at the Financial Services Commission. 1. Comprehensive credit information collection agencies: credit informa-
tion collection agencies that manage and utilize intensively
credit
information obtained from the whole of financial institutions as pre-
USE AND PROTECTION OF CREDIT INFORMATION ACT
14
scribed by the Presidential Decree; and
2. Independent credit information collection agencies: credit informa-
tion collection agencies that manage and utilize intensively
credit
information obtained from financial institutions which are of the same
kind as themselves, from among those prescribed in
subparagraph
1, or those that manage and utilize intensively credit information
under agreements of parties such as associations
established by busi-
nessmen in the same kind of business other than financial institu-
tions.
(3) A person who intends to get his credit information collection agency
registered in accordance with the provisions of paragraph
(1) shall meet
requirements falling under each of the following subparagraphs:
1. He is required not to run such agency for the purpose of reaping prof-
its; and
2. He is required to have manpower, and facilities and equipment pre-
scribed by the Presidential Decree.
(4) Matters necessary for the registration and revocation as prescribed
in the provisions of paragraphs (1) and (2), the scope of
credit information
managed and used, and exchange partners shall be determined by the
Presidential Decree.
(5) In order to secure accurate and quick collection of credit informa-
tion, comprehensive credit information collection agencies
as prescribed
in paragraph (2) 1 may investigate the performance by financial in-
stitutions of duties to provide credit information,
under the conditions
as prescribed by the Credit Information Council as referred to in Article
17-2.
24, 2006>
Article 17-2 (Credit Information Council)
A Credit Information Council may be established in the comprehensive
credit information collection agencies as prescribed in Article
17 (2) in
order to deliberate and decide on the following matters:
1. Matters concerning allotment of ordinary expenditure necessary to
manage and utilize intensively credit information and of the
amount
invested to operate new business, etc.;
2. Matters concerning investigation into the performance by financial in-
stitutions of duties to provide credit information, and
the imposi-
tion of penalties;
3. Matters concerning prevention measures for disclosure or use of credit
information not related to the objective of credit information
busi-
ness; and
4. Other matters necessary to manage and utilize intensively credit in-
formation.
[This Article Newly Inserted by Act No. 5378, Aug. 28, 1997]
Article 18 (Maintenance of Most Accurate and Up-to-Date Credit Infor-
mation)
(1) Any operator of credit information business, etc. shall manage credit
information properly so as to keep its accuracy and keep
it up-to-date.
(2) Records of old credit information which may be potentially harmful
to credit information objects, shall be deleted
in accordance with the pro-
visions of the Presidential Decree.
Article 19 (Security of Computer System for Credit Information)
Any operator of credit information business, etc. shall formulate
tech-
nological and physical security measures with respect to the unlawful
access by third parties to computer systems for credit
information (in-
cluding joint computer networks), or the modification, damage, destruc-
tion or other danger to inputted information.
Article 20 (Clarification of Credit Information Management Responsibil-
ities and Preservation of Business Records)
(1) Any operator of credit information business, etc. shall prepare inter-
nal management provisions for collection, processing
and use, etc. of
credit information pursuant to the determinations of the Financial Services
Commission.
USE AND PROTECTION OF CREDIT INFORMATION ACT
16
(2) Any operator of credit information business, etc. shall preserve re-
cords of the following matters for three years:
1. Addresses and names of clients or of institutions of providing or ex-
changing information;
2. Details of activities requested and date of request;
3. Processing details of activities requested or details of credit infor-
mation provided and corresponding dates; and
4. Other matters as prescribed by the Presidential Decree.
Article 21 (Processing of Information Held after Closure of Business)
Where the operators of credit information business and credit informa-
tion collection agencies intend to close their business,
they shall dispose
of, eliminate or destroy information in their possession pursuant to the
determinations of the Financial Services
Commission.
INFORMATION OBJECTS
Article 22 (Public Notice of Credit Information Utilization System)
The operators of credit information business and credit information
collection agencies shall make a public notice of the kind, purpose of use,
recipients of managed information, and the rights,
etc. of credit infor-
mation objects, as determined by the Presidential Decree.
Article 23 (Consent Regarding Provision and Use
of Personal Credit In-
formation)
(1) Where credit information providers or users intend to provide the fol-
lowing credit information on individuals (hereinafter
referred to as
"personal credit information") to credit information business operators,
they shall obtain such individuals' consents
in writing or by electronic
documents (referring to the electronic document under subparagraph 1
of Article 2 of the Framework
Act on Electronic Commerce; hereinafter
the same shall apply) bearing a certified digital signature (referring to
the certified
digital signature under subparagraph 3 of Article 2 of the
Digital Signature Act; hereinafter the same shall apply), or consents
by
such ways as entering personal identification numbers through wire or
wireless communications which ensure stability and reliability
of con-
USE AND PROTECTION OF CREDIT INFORMATION ACT
17
sents on providing information, taking the details and purpose of pro-
viding personal credit information into consideration, as
determined by
the Presidential Decree:
1. Information or data concerning the details of financial transactions
as prescribed in the provisions of Article 4 of the Act on
Real Name
Financial Transactions and Guarantee of Secrecy;
2. Information concerning personal illness;
3. Information by which an individual may be identifiable, such as his
name, address, resident registration number (in the case of
a for-
eigner, his foreigner registration number or passport number), sex,
nationality and occupation, etc.; and
4. Other personal credit information as prescribed by the Presidential
Decree.
(2) Notwithstanding the provisions of paragraph (1), if the credit in-
formation providers or users intend to provide the information
falling
under paragraph (1) 3 from among personal credit information, they may
provide it to the operators of credit information
business, etc. by ob-
taining a consent of the principal over the telephone or an indication of
consent made by the principal on
a consent column of the Internet home-
page.
(1) Personal credit information may be provided and used only for the
purpose of determining whether or not the commercial transaction
re-
lationship (excluding the employment relationship) with the credit in-
formation objects concerned, such as financial transactions,
has been
formed and maintained, etc.: Provided, That this shall not apply to the
case falling under any of the following subparagraphs:
1. Where an individual consents in writing or by an electronic document
carrying a certified digital signature to the provision and
use for a
purpose other than that of determining whether the commercial
transaction relationship such as financial transactions
has been
USE AND PROTECTION OF CREDIT INFORMATION ACT
18
formed and maintained, or where he provides his own credit infor-
mation;
2. Where personal credit information is provided and used pursuant to
a submission order issued by a court or a warrant issued by
any
judge;
2-2. Where personal credit information is provided to and used by any
prosecutor or any judicial police officer at his request on
the grounds
that any crime in a tense situation is feared to seriously endanger the
life and body of the victim and it is difficult
to find time to seek the
issuance of a warrant from any judge pursuant to the provisions of
subparagraph 2. In this case, any prosecutor
who is provided the
personal credit information shall promptly file a claim for a warrant
with any judge and any judicial police
officer shall apply for a warrant
to a prosecutor who, in turn, files the claim for a warrant with any
judge and in case where
both the prosecutor and the judicial police
officer fail to obtain the warrant within 36 hours from the time when
they are provided
the personal credit information, they shall promptly
scrap the provided personal credit information;
3. Where personal credit information is provided and used to manage and
utilize intensively among the operators of credit information
business
and credit information collection agencies;
4. Where personal credit information is provided and used according to
written requests by the heads of the competent government
depart-
ments for inquiries and investigations as prescribed in the provisions
of the Acts concerning taxation, or according to
requests for the pro-
vision of tax data, which is subject to a submission obligation pur-
suant to the provisions of the Acts
concerning taxation;
5. Where personal credit information is provided and used in accordance
with the provisions of other Acts; and
6. Where personal credit information is provided and used for the pur-
poses prescribed by the Presidential Decree such as debt collection,
authorization or license.
(2) Where any operator of credit information business, etc. provides
personal credit information, he shall confirm the identity
and purpose of
use of the client pursuant to the determinations of the Financial Services
Commission.
Act No. 8863, Feb. 29, 2008>
(3) Deleted.
Article 24-2 (Demand for Notification of Facts of Providing Credit In-
formation)
Any credit information object may demand the operators of credit infor-
mation business, etc., when they provide the credit information
on the
principal (hereinafter referred to as the "principal's information"), to
make a notification of the person who has received
the provision, pur-
pose of use thereof, date of provision, major details of the provided prin-
cipal's information, etc., under
the conditions as prescribed by the
Presidential Decree. In this case, the operators of credit information
business, etc. shall
comply with it unless there exists any special ground.
[This Article Newly Inserted by Act No. 7110, Jan. 29, 2004]
Article 25
(Access to Credit Information and Request for Correction)
(1) Any credit information object may apply for the supply or the ex-
amination of the principal's information in the possession of any oper-
ator of credit information business, etc. after producing
a certificate
showing his identity to the operator of credit information business, etc.
or having himself identified in an objective
method prescribed by the
Presidential Decree and where such principal's information is different
from the fact, he may request
a correction of such difference, under the
conditions as prescribed by the Financial Services Commission.
(3) The operator of credit information business, etc. who has deleted or
corrected credit information pursuant to the provisions
of paragraph (2)
shall inform persons who were provided with the credit information
concerned within the last six months, or other
persons as requested by
the credit information object of the details deleted or corrected.
USE AND PROTECTION OF CREDIT INFORMATION
ACT
20
(4) The operator of credit information business, etc. shall notify the
credit information object of the results of the processes
prescribed in par-
agraphs (2) and (3) within seven days, and where the credit informa-
tion object is dissatisfied with the results,
he may request the Financial
Services Commission for the correction as determined by the Presiden-
tial Decree.
(5) Where the Financial Services Commission has received a request for
the correction as prescribed in the provisions of paragraph
(4), he may
have the Governor of the Financial Supervisory Service investigate the
facts of the case and, according to the results
of that investigation, may
order corrections or take such measures as are necessary with regard to
the operator of credit information
business, etc.
(7) Where the operator of credit information business, etc. takes measures
of correction in accordance with correction orders of
the Financial Services
Commission as prescribed in the provisions of paragraph (5), he shall report
the results of such measures
to the Financial Services Commission.
Operators of credit information business, etc. shall not conduct the fol-
lowing acts, nor shall persons other than operators of
credit information
business conduct the acts as prescribed in the main sentence of sub-
paragraph 5 as their business or the acts
as prescribed in subpara-
graph 6: 1. The act of giving false information to the client;
2. The act of coercing solicitations for investigation regarding credit
information;
3. The act of coercing persons who are the subject of investigations
concerning credit information for the provision of investigative
data
or responses;
4. The act of requesting or receiving money or other valuables in excess
USE AND PROTECTION OF CREDIT INFORMATION ACT
21
of the maximum limits of investigation fees, inquiry fees, debt col-
lection fees or charges, etc. as prescribed in the provisions
of Ar-
ticle 7;
5. The act of ascertaining locations of specific individuals or investi-
gating private lives, etc. other than commercial transaction
relation-
ships such as financial transactions: Provided, That this shall not
apply where the operators of credit information business
who are li-
censed for debt collection activities are ascertaining the locations of
specific individuals for the purpose of carrying
out those activities, or
where they are allowed to ascertain locations of specific individuals
pursuant to the provisions of other
Acts or subordinate statutes;
6. The act of using the title of, or titles similar to, intelligence agents
or detectives;
7. Deleted; and 8. The act of causing great damage to the investor of securities by making
an inaccurate credit rating for him by intention or gross
negligence.
Article 26-2 (Prohibited Matters for Claim Collection Business Operators)
(1) Anyone who obtains permission for performing
the service provided
for in the provisions of Article 4 (4) 3 (hereinafter referred to as the "claim
collection business operator")
shall be prohibited from using the method
falling under each of the following subparagraphs when he performs his
claim collection
service:
1. The method of resorting to violence, threat, deceptive means or force;
2. The method of making the false information on the debt known to
the debtor (including the guarantor; hereinafter the same shall
apply)
or his related persons (referring to the persons who live together,
share the livelihood with the debtor, are the relatives
of the debtor
or work together with the debtor in the same workplace; hereinafter
the same shall apply);
3. The method of making the fact of the debt known to anyone other
than the debtor including a request for the repayment of the debt,
etc. by means of postcards; and
4. The method of disturbing the privacy and business of the debtor or
his related persons by causing fears and misgivings to them
through
the act falling under each of the following items:
(a) The act of causing words, letters, sounds, images and things to
USE AND PROTECTION OF CREDIT INFORMATION ACT
22
reach the debtor or his related persons;
(b) The act of visiting the debtor or his related persons without any
justifiable grounds;
(c) The act of coercing the debtor to raise a repayment fund by means
of borrowings or by other similar means; and
(d) The act of coercing the related persons of the debtor to repay the
debt on behalf of the debtor.
(2) Every claim collection business operator may inquire about the
whereabouts, etc. of the debtor to his related persons only in
case where
it is difficult to find out the whereabouts of the debtor on the grounds
of the lost contact with the debtor. In this
case, every claim collection
business operator shall not make the fact of the debt known to the re-
lated persons.
[This Article Newly Inserted by Act No. 7883, Mar. 24, 2006]
Article 27 (Prohibition of Disclosure of Secrets for Non-Business Purposes)
(1) Operators of credit information business, etc. and persons who are
or were officers or employees of persons entrusted with
the processing
of credit information pursuant to the provisions of Article 16 (2) (herein-
after referred to as "credit information
business personnel") shall not
disclose or use personal secrets such as credit information and private
information obtained professionally
for purposes other than business
purposes.
(2) The following cases shall not be considered to be acts of disclosing
or using credit information for purposes other than business
purposes as
prescribed in paragraph (1). In those cases, between credit information
providers and users, or between credit information
providers or users and
operators of credit information business, respectively, the contracts in-
cluding the safety management
measures for credit information provided
shall be entered into: 1. Where credit information providers or users provide other credit in-
formation providers or users with credit information obtained
or
created in connection with their businesses to help the other credit
information users or providers with their businesses; and
2. Where credit information providers or users provide operators of credit
information business with credit information of others
obtained or
created in connection with their businesses at the request of operators
USE AND PROTECTION OF CREDIT INFORMATION ACT
23
of credit information business.
(3) Persons who have been provided with credit information from credit
information business personnel shall not provide that credit
information
to others: Provided, That this shall not apply in cases where the provi-
sion of information is permitted pursuant
to the provisions of this Act
or other Acts.
Article 28 (Indemnification for Damages)
(1) Where operators of credit information business, etc. and other users
of credit information cause any damage to credit information
objects by
violating the provisions of this Act, they shall be liable for damages for
the credit information objects concerned:
Provided, That this shall not
apply in cases where operators of credit information business, etc. or other
users of credit information
prove the absence of malice or negligence.
(2) Where any claim collection business operator causes any damage to
the related persons
of the debtor in violation of this Act, he shall indem-
nify for such damage: Provided, That the same shall not apply to a case
where he prove the absence of malice or negligence.
(3) Where any operator of credit information business who has been
requested to carry out the activities provided in Article 4 (4)
causes
damage to the client through his own fault, he shall compensate the client
for damage.
Article 29 (Supervision and Inspection)
(1) The Financial Services Commission may supervise the operators of
credit information business, etc. and give necessary orders
them to file
reports with respect to their business or property to secure sound busi-
ness for them.
by Act No. 6172, Jan. 21, 2000>
(4) The provisions of Article 25 (6) shall apply mutatis mutandis to the
inspection as prescribed in paragraph (2).
(5) The Financial Services Commission may order the operators of credit
information business, etc. to improve and suspend the business
activities
concerned, suspend the provision of credit information, or take other
necessary measures according to inspection results
as prescribed in
paragraph (2).
(7) The sharing ratio, limit or other matters necessary for the payment
of contributions referred to in paragraph (6) shall be determined
by the
Presidential Decree.
Article 29-2 (Special Application Example for Operator of Credit Rating
Service)
The provisions of Articles 20 (1), 22 and 25 shall not apply to every oper-
ator of credit rating service.
[This Article Newly Inserted by Act No. 6428, Mar. 28, 2001]
Article 30 (Hearing)
Where the Financial Services Commission intends to revoke the license
or authorization of an operator of credit information business
pursuant
to the provisions of Article 12, he shall hold a hearing.
USE AND PROTECTION OF CREDIT INFORMATION ACT
25
Article 32 (Penal Provisions)
(1) Any person who falls under any of the following subparagraphs shall
be punished by imprisonment for not more than five years
or a fine not
exceeding fifty million won:
1. The person who performs the service provided for in the provisions
of Article 4 (4) 3 without obtaining permission or authorization
therefor in violation of the provisions of Article 4 (1) or the main sen-
tence of Article 8 (1); and
2. The person who performs the debt collection service in violation of
the provisions of Article 26-2 (1) 1.
(2) Any person who falls under any of the following subparagraphs shall
be punished by imprisonment for not more than three years
or a fine
not exceeding thirty million won:
1. The person who operates the business as prescribed in Article 4 (4) 1,
2 or 4 without a license or authorization as prescribed
in Article 4
(1) and (7) or the main sentence of Article 8 (1) (excluding the case
where he collects and provides the credit information
publicly an-
nounced or opened to the public under the provisions of other Acts
and subordinate statutes or through the mass media
such as pub-
lications, broadcasting, and the case where a credit information col-
lection agency and a credit information provider
or user collect and
provide credit information under the provisions of this Act);
2. The person who obtains a license or authorization as prescribed in
Article 4 (1) and (7) or the main sentence of Article 8 (1)
by fraud-
ulence or other unlawful means;
2-2. The person who violates the provisions of Article 9-2 (2);
3. The person who operates business during the period of its suspension
as prescribed in Article 12 (2);
4. The person who violates the provisions of Article 15;
5. The person who is not a credit information collection agency, but builds
the joint computer network as prescribed in Article 17
(6);
6. The person who violates the provisions of Article 23;
USE AND PROTECTION OF CREDIT INFORMATION ACT
26
7. The person who violates the provisions of Article 24 (1);
8. The person who violates the provisions of subparagraphs 1 through
3, 5, 6 or 8 of Article 26;
8-2. The person who performs the debt collection service in violation of
the provisions of Article 26-2 (1) 2 or 4;
9. The person who violates the provisions of Article 27;
10. The person who violates the order of the Financial Services Commission
as prescribed in Article 29 (5); and
11. The person who modifies or deletes information or makes it unusable
in a credit information computer system (including a joint
computer
network) without authority, or who searches, copies or uses by other
means credit information without authority.
(3) Any person who falls under any of the following subparagraphs shall
be punished by imprisonment for not more than one year or
a fine not
exceeding ten million won:
1. The person who violates the provisions of Article 9-3 (2);
1-2. The person who violates the provisions of Article 11;
2. The person who entrusts the collection and investigation of credit in-
formation without the client's consent in violation of
the provisions
of Article 16 (1);
3. The person who entrusts the processing of credit information to a per-
son not satisfying the requirements in violation of the
provisions of
Article 16 (2), and the trustee;
4. The person who violates the provisions of Article 20 (2);
5. The person who violates the provisions of Article 21;
6. The person who violates the correction orders as prescribed in Ar-
ticle 25 (5);
7. The person who violates the provisions of subparagraph 4 of Ar-
ticle 26;
8. The operator of credit information business who has committed the
act falling under any debt collection service after having been
com-
missioned by a person who is not a credit information provider or
user; and
9. The operator of credit information business who has committed the
act falling under any debt collection service for a claim that
is not
USE AND PROTECTION OF CREDIT INFORMATION ACT
27
the claim provided for in the provisions of subparagraph 10 of Ar-
ticle 2.
[This Article Wholly Amended by Act No. 5378, Aug. 28, 1997]
Article 33 Deleted.
Where the representative of a juristic person, or any agent, employee or
other employed person of a juristic person or an individual
violates the
provisions of Article 32 in connection with business of the juristic person
or individual, the fine as prescribed
in the same Article shall be imposed
upon the juristic person or individual concerned in addition to the pun-
ishment of the violator.
(1) Any person who inquires the related persons of the debtor about the
whereabouts, etc. of the debtor in violation of the provisions
of Article
26-2 (2) or makes the fact of the debt known to the related persons of
the debtor shall be punished by a fine for negligence
not exceeding 20
million won.
1. The person who fails to produce his certificate to persons concerned
in violation of the provisions of Article 9 (2); and
2. The person who performs the debt collection service in violation of
the provisions of Article 26-2 (1) 3.
(3) Any person falling under any of the following subparagraphs shall
be punished by a fine for negligence not exceeding three million
won:
1. A person who violates the proviso of Article 8 (1) or the provisions
of Article 8 (4);
1-2. A person who violates the provisions of Article 9-2 (3), (4) or (5);
1-3. A person who violates the provisions of Article 10;
2. A person who violates the provisions of Article 18 (2);
3. A person who violates the provisions of Article 19;
4. A person who violates the provisions of Article 20 (1);
5. A person who violates the provisions of Article 22;
USE AND PROTECTION OF CREDIT INFORMATION ACT
28
6. A person who violates the provisions of Article 24 (2);
7. A person who violates the provisions of Article 25 (2), (3) or (7) or
who fails to notify as prescribed in the provisions of Article
25 (4);
7-2. A person who fails to make a notification under the provisions of
Article 24-2; and
8. A person who rejects, hinders or dodges the order, inspection and
request under the provisions of Article 29 (1) through (3).
(4) A fine for negligence referred to in paragraphs (1) through (3) shall
be imposed and collected by the Financial Services Commission
under the
conditions as prescribed by the Presidential Decree.
(7) Where no objection has been made and nor has fine for negligence
been paid within the period as prescribed in paragraph (5),
it shall be
collected pursuant to the examples of dispositions on the national or lo-
cal taxes in arrears.
(1) (Enforcement Date) This Act shall enter into force six months after
the date of its promulgation.
(2) (Abrogation of Other Acts) The Credit Investigation Business Act is
repealed.
(3) (Transitional Measures concerning Licensing of Credit Investigators)
A person who had received a credit investigation business
license pursuant
USE AND PROTECTION OF CREDIT INFORMATION ACT
29
to the Credit Investigation Business Act at the time of the entry into force
of this Act shall be regarded as an operator of credit
information business
who may operate only the activities and related activities of subparagraph
1 of Article 6 of this Act: Provided,
That where he intends to operate the
activities prescribed in subparagraph 2 or 3 of Article 6 of this Act, he
shall receive a
license pursuant to the provisions of Article 4 of this Act.
In this case, where a person who applies for a license pursuant to
these
provisions obtains the approval of the Minister of Finance and Economy
upon submitting capital increase plans in order to
satisfy the capital
requirements prescribed in the provisions of Article 5 of this Act, he shall
be regarded as having received
a license pursuant to the provisions of Ar-
ticle 4 of this Act until the completion of capital increase according to the
capital
increase plans.
(4) (Transfer of Business of Credit Investigator) Where a person who had
received a credit investigation business license pursuant
to the Credit
Investigation Business Act at the time of the entry into force of this Act
wishes to transfer the business, the transferee
shall be a juristic person
which has received a credit information business license pursuant to the
provisions of Article 4.
(5) (Transitional Measures concerning Penalties and Fines) In terms of
the penalties and fines for negligence for acts committed
prior to the entry
into force of this Act, the previous provisions of the Credit Investigation
Act shall apply.
ADDENDA
Article 1 (Enforcement Date)
This Act shall enter into force three months after the date of its promul-
gation.
Article 2 (Transitional Measures concerning License of Operator of Credit
Information Business)
(1) At the time when this Act enters into force, any person who has ob-
tained the license for the credit information business as
prescribed in
Article 4 of the Use and Protection of Credit Information Act, Act No.
4866, shall be regarded as having obtained
the license for all activities
as prescribed in the amended provisions of subparagraphs of Article 4 (3),
and the operator of credit
information business who may operate only the
activities as prescribed in subparagraph 1 of Article 6 of the same Act
under the
provisions of paragraph (3) of the Addenda of the same Act
USE AND PROTECTION OF CREDIT INFORMATION ACT
30
and their incidental activities (hereinafter referred to as the "credit
investigator") shall be regarded as having obtained the
license for the
activities as prescribed in the amended provisions of Article 4 (3) 1.
(2) Where the credit investigator satisfies
the requirements of the capital
as prescribed in the amended provisions of Article 5 (including the case
where a person who desires
to operate the activities as prescribed in Ar-
ticle 4 (3) 3 as a credit investigator pays not less than fifty hundredths
of the
minimum capital within the period of two years after this Act en-
ters into force, under the provisions of Article 3 (1) of the
Addenda),
the activities as prescribed in Article 4 (3) 2 and 3 may be licensed, not-
withstanding the amended provisions of Article
4 (2).
Article 3 Deleted.
(2) Where a person other than the largest stockholder of the credit in
vestigator (including any person who has got a license of
Article 4 (3)
2 or 3 in accordance with the provisions of Article 2 (2) of the Addenda)
for the business described in Article intends
to be the largest stock-
holder by acquiring the stocks of the credit investigator, he shall in ad-
vance obtain authorization
from the Financial Services Commission.
Any person who has been designated as a credit information collection
agency under the previous provisions of Article 17 (1) at
the time when
this Act enters into force, shall be regarded as having been designated
as a comprehensive credit information collection
agency as prescribed in
USE AND PROTECTION OF CREDIT INFORMATION ACT
31
the amended provisions of Article 17 (2) 1.
Article 7 Deleted.
Article 1 (Enforcement Date)
This Act shall enter into force on January 1, 1998. (Proviso Omitted.)
Article 2 Omitted.
ADDENDA
Article 1 (Enforcement Date)
This Act shall enter into force on the date of its promulgation.
Articles 2 through 14 Omitted.
ADDENDA
(1) (Enforcement Date) This Act shall enter into force on April 1, 1998.
(Proviso Omitted.)
(2) (Transitional Measures on Disposition) At the time of the entry into
force of this Act, authorization or other actions taken
by administrative
agencies, or various reports or other actions submitted to administrative
agencies under this previous provisions,
shall be deemed to be actions taken
by or submitted to administrative agencies under this Act.
(3) through (5) Omitted.
ADDENDA
Article 1 (Enforcement Date)
This Act shall enter into force on the date of its promulgation.
Article 2 (Transitional Measures regarding Capital Stock Requirements)
(1) Where the credit investigator (hereinafter referred to as "credit in-
vestigator") under Article 2 of the Addenda of the amended
Use and
Protection of Credit Information Act (Act No. 5378) fails to meet the
capital stock requirements under the amended provisions
of Article 5 at
the time of the entry into force of this Decree, he shall pay the minimum
capital stock under the amended provisions
of the same Article by No-
vember 29, 1999.
(2) Where the credit investigator fails to meet the requirements under
paragraph (1), the Financial Supervisory Commission may cancel
the au-
thorization granted to the credit investigator under the conditions as
USE AND PROTECTION OF CREDIT INFORMATION ACT
32
prescribed by the Ordinance of the Ministry of Finance and Economy.
Article 3 (Transitional Measure Regarding Registration of Credit Infor-
mation Collection Agency)
Those which have been designated or registered as credit information col-
lection agencies under the previous provisions at the
time of the entry
into force of this Act shall be deemed to have been registered as com-
prehensive credit information collection
agencies or independent credit
information collection agencies equivalent thereto pursuant to amend-
ments to Article 17 (1) and
(2).
ADDENDA
Article 1 (Enforcement Date)
This Act shall enter into force on the date of its promulgation. (Proviso
Omitted.)
Articles 2 through 6 Omitted.
ADDENDA
Article 1 (Enforcement Date)
This Act shall enter into force on March 1, 2000.
Articles 2 and 3 Omitted.
ADDENDA
(1) (Enforcement Date) This Act shall enter into force three months from
the date of its promulgation.
(2) (Transitional Measures concerning Cause of Disqualification for Person
Engaged in Credit Information Business) Any person who
engages in the
credit information business falls under the cause of disqualification under
the amended provisons of Article 9 for
the cause that has occurred prior
to the enforcement of this Act at the time that this Act is enforced shall
be dealt with according
to the previous provisions notwithstanding the
amended provisions.
(3) (Transitional Measures concerning Fine for Negligence) The application
of any fine for negligence against any act committed
prior to the enforce-
ment of this Act shall be dealt with according to the previous provisions.
ADDENDA
(1) (Enforcement Date) This Act shall enter into force three months after
USE AND PROTECTION OF CREDIT INFORMATION ACT
33
the date of its promulgation.
(2) (Application Example concerning Use of Similar Name) The amended
provisions of Article 11 shall not apply to any person who
has used the
name of credit rating or other name similar thereto from among trade
names prior to the enforcement of this Act.
(3) (Transitional Measures concerning Credit Rating Service) Any person
who has obtained approval for concurrently rendering the
credit rating
service from the Financial Supervisory Commission under the proviso of Ar-
ticle 10 and any other person who has
been designated as an institution
specializing in the credit rating of non-guaranteed bonds from the Com-
missioner of the Financial
Supervisory Service shall be each deemed to ob-
tain a license for the credit rating service only for a fixed period of 6 months
from the date of the enforcement of this Act, and they may be engaged in
the credit rating service within the scope of the service
previously approved
or designated for the relevant period.
ADDENDUM
This Act shall enter into force three months after the date of its promulgation.
ADDENDA
Article 1 (Enforcement Date)
This Act shall enter into force three months after the date of its prom-
ulgation.
Articles 2 through 4 Omitted.
ADDENDUM
This Act shall enter into force on the date of its promulgation: Provided,
That the amended provisions of Article 24-2 shall enter
into force six
months after the date of its promulgation.
ADDENDA
Article 1 (Enforcement Date)
This Act shall enter into force three months after the date of its prom-
ulgation.
Article 2 Omitted.
ADDENDA
Article 1 (Enforcement Date)
USE AND PROTECTION OF CREDIT INFORMATION ACT
34
This Act shall enter into force one year after the date of its promulgation.
Articles 2 through 6Omitted.
ADDENDA
(1) (Enforcement Date) This Act shall enter into force six months after
the date of its promulgation.
(2) (Application Example concerning Indemnification for Damage) The
amended provisions of Article 28 (2) shall apply to the damage
that is
caused by the violation of this Act on or after the date when this Act enters
into force.
(3) (Transitional Measure concerning Penal Provisions) The application
of the penal provisions to any act that is performed before
this Act enters
into force shall be governed by the previous provisions.
ADDENDA
Article 1 (Enforcement Date)
This Act shall enter into force on the date of its promulgation.
Articles 2 through 5 Omitted.
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