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Selected Statutes of the Republic of Korea |
제22편 통화․국채․금융 한국산업은행법 시행령
ENFORCEMENT DECREE OF
THE KOREA DEVELOPMENT BANK ACT
Presidential Decree No. 4253, Nov. 14, 1969
Amended by Presidential Decree No. 5497, Jan. 27, 1971
Presidential Decree No. 7986, Feb. 12, 1976
Presidential Decree No. 8613, Jul. 2, 1977
Presidential Decree No. 10022, Sep. 10, 1980
Presidential Decree No. 14438, Dec. 23, 1994
Presidential Decree No. 14632, Apr. 28, 1995
Presidential Decree No. 15514, Nov. 29, 1997
Presidential Decree No. 16323, May 24, 1999
Presidential Decree No. 16617, Dec. 27, 1999
Presidential Decree No. 16742, Mar. 4, 2000
Presidential Decree No. 18457, Jun. 29, 2004
Presidential Decree No. 18736, Mar. 8, 2005
Presidential Decree No. 19191, Dec. 28, 2005
Presidential Decree No. 19806, Dec. 29, 2006
Presidential Decree No. 20653, Feb. 29, 2008
Presidential Decree No. 21480, May 6, 2009
Presidential Decree No. 21516, May 29, 2009
Presidential Decree No. 21641, Jul. 27, 2009
CHAPTER Ⅰ REGISTRATION
Article 1
The registration as provided for in Article 6 (1) of the Korea Development
Bank Act shall be made in accordance with the provisions of this Chapter.
<Amended by Presidential Decree No. 19191, Dec. 28, 2005>
Article 2
(1) The governor of the Korea Development Bank (hereinafter referred to as the governor ) shall, within two weeks from the date
on which the Korea Development Bank is incorporated, register the incorporation of the Korea
Development Bank at the location of its principal office. <Amended by
Presidential Decree No. 21516, May 29, 2009>
(2) Matters falling under any of the following subparagraphs shall
be registered when the registration of incorporation is made: <Amended
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ENFORCEMENT DECREE OF THE KOREA DEVELOPMENT BANK ACT
byPresidentialDecreeNo.15514,Nov.29,1997;PresidentialDecreeNo. 21516,May29,
2009>
1. Purpose;
2. Name;
3. The location of the principal office;
4. The location of branches;
5. Capital, the total number of stocks to be issued and the face value of a stock;
6. The total number and types of stocks issued, and the contents and
numbers by type;
7. Name, resident registration number, and address of the governor;
8. Names and resident registration numbers of directors and auditor;
9. Method of giving public notification.
(3) The Korea Development Bank shall, at the location of it branches
or sub-branches, register the particulars of subparagraphs mentioned
in paragraph (2) within three weeks from the date of the registration
of incorporation.
Article 3
Where the Korea Development Bank establishes a branch, it shall register
matters as follows: <Amended by Presidential Decree No. 21516, May 29, 2009>
1. The location and date of establishment of the branch not later than
two weeks at the location of principal office;
2. Matters provided under Article 2 (2) 1 through 3, 7, and 9, not later than three weeks at the location of the branch.
[This Article Wholly Amended by Presidential Decree No. 15514, Nov. 29, 1997]
Article 4
(1) Where the Korea Development Bank relocates its principal office, the new location of the principal office and the date
on which the prin- cipal office is relocated shall be registered not later than two weeks at
the former location of the principal office, and matters provided for in
each subparagraph of Article 2 (2) shall be registered at the new loca- tion of principal office.
(2) Where the Korea Development Bank relocates its branch, the new
location of the branch, and the date on which the branch is relocated shall be registered not later than two weeks at the former location
of the branch and its principal office, and matters provided for in Article 2 (2) 1 through
3, 7, and 9 shall be registered at the new location of the branch. <Amended
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제22편 통화․국채․금융 한국산업은행법 시행령
by Presidential Decree No. 21516, May 29, 2009>
[This Article Wholly Amended by Presidential Decree No. 15514, Nov. 29, 1997]
Article 5
In cases of changes in matters provided for in each subparagraph of Article
2 (2), registration of changes shall be made not later than two weeks at the location of the principal office. In cases of changes
in matters pro-
vided for in Article 2 (2) 1 through 3, 7, or 9, registration of changes shall also be made not later than three weeks at the location
of branches.
<Amended by Presidential Decree No. 21516, May 29, 2009>
[This Article Wholly Amended by Presidential Decree No. 15514, Nov. 29, 1997]
Article 6
(1) If an agent is appointed under Article 15 of the Korea Development
Bank Act (hereinafter referred to as the Act ), the following particulars shall, within two weeks following the appointment, be
registered at the
location of the principal office or branch for which the agent is appointed:
<AmendedbyPresidentialDecreeNo.15514,Nov.29,1997;PresidentialDecreeNo.19191, Dec. 28, 2005; Presidential Decree No. 21516, May 29, 2009>
1. Name, resident registration number, and address of the agent;
2. Deleted; <by Presidential Decree No. 15514, Nov. 29, 1997>
3. Restrictions, if any, on the powers of the agent.
(2) If any change has occurred in any of the particulars of subpara- graphs mentioned in paragraph (1), such change shall be
registered in
accordance with the same paragraph.
Article 7 Deleted. <by Presidential Decree No. 14632, Apr. 28, 1995>
Article 8
If the authorization of the Financial Services Commission is required for any of the particulars which are to be registered in accordance
with Articles
2 through 6, the registration period shall commence on the date when the
written authorization is received. <Amended by Presidential DecreeNo. 14438,
Dec.23,1994;PresidentialDecreeNo.14632,Apr.28,1995;PresidentialDecreeNo.16323, May 24, 1999; Presidential Decree No. 20653, Feb. 29, 2008>
Article 9 Deleted. <by Presidential Decree No. 19191, Dec. 28, 2005>
Article 10
(1) The competent registry office for the registration of the Korea
Development Bank shall be the district court, branch court of a district court, or registry office that has jurisdiction over the
principal office or
branch of the Korea Development Bank. <AmendedbyPresidentialDecreeNo.
15514, Nov. 29, 1997; Presidential Decree No. 21516, May 29, 2009>
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ENFORCEMENT DECREE OF THE KOREA DEVELOPMENT BANK ACT
(2) Each registry office shall keep the register book of the Korea Devel-
opment Bank.
Article 11
Registration shall be made upon application therefor by the governor of the
Korea Development Bank. <AmendedbyPresidentialDecreeNo.21516,May29,2009>
Article 12
The following documents shall be attached to the application form for registration under Article 2: <AmendedbyPresidentialDecreeNo.21516,May29,
2009>
1. The articles of incorporation;
2. Documents certifying that authorization has been obtained pursuant to Article 55 (2) of the Act;
3. Documents certifying that initial capital has been paid in;
4. Documents certifying the qualification of the governor.
Article 13
The following documents shall be attached to the application for registra- tion under Articles 3 through 5: <AmendedbyPresidentialDecreeNo.21516,May
29, 2009>
1. In cases of registration under Article 3, documents certifying the
establishment of a branch;
2. In cases of registration under Article 4, documents certifying the relocation of the principal office or branch;
3. In cases of registration under Article 5, documents certifying the
change in the contents of such registration.
Article 14
The following documents shall be attached to the application form for registration under Article 6:
1. Documents certifying the appointment of the agent under Article 15 of the Act;
2. Documents certifying the restrictions, if any, imposed on the powers
of the agent under Article 6 (1) 3.
Article 15 Deleted. <by Presidential Decree No. 14632, Apr. 28, 1995>
Article 16 Deleted. <by Presidential Decree No. 21516, May 29, 2009>
Article 17
When the Korea Development Bank has completed the registration of its incorporation in accordance with Article 2, it shall serve
immediate public
notice thereof.
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제22편 통화․국채․금융 한국산업은행법 시행령
CHAPTER Ⅱ AFFAIRS
Article 18 (Guarantee of Debts in Foreign Currency)
The term requirements prescribed by Presidential Decree, such as cases where the Korea Development Bank has difficulty in redemption
of a debt
if the Korean Government does not guarantee or such in Article 18-2 (5)
of the Act means a case falling under any of the following subparagraphs:
1.Where the Korea Development Bank has difficulty in redemption of a debt in foreign currency pursuant to Article 18-2 (1)
of the Act if
the Government does not guarantee;
2. Where the terms of borrowing of a debt in foreign currency, which the
Korea Development Bank is to newly bear, pursuant to Article 18-2 (3) of the Act become remarkably unfavorable if the Government
does not guarantee;
3. Where the Minister of Strategy and Finance determines and publicly
announces as other cases corresponding to subparagraphs 1 and 2.
[This Article Newly Inserted by Presidential Decree No. 21516, May 29, 2009]
Article 18-2 Deleted. <by Presidential Decree No. 16617, Dec. 27, 1999>
CHAPTER Ⅲ INDUSTRIAL FINANCE BONDS
Article 19
Industrial finance bonds shall be governed by, in addition to the provisions of Articles 25 through 29 of the Act, the provisions of this Chapter.
Articles 20 and 21 Deleted. <by Presidential Decree No. 19191, Dec. 28, 2005>
Article 21-2
(1) Industrial finance bonds shall be issued by public offering or by con- tract with a particular person on the transfer or underwriting
of bonds.
(2) The issuance of industrial finance bonds by public offering shall be
made by inviting subscription (including public tender) or by sales.
[This Article Newly Inserted by Presidential Decree No. 15514, Nov. 29, 1997]
Article 22
(1) Any person who intends to subscribe for industrial finance bonds shall state on an application for subscription for industrial
finance bonds in duplicate the number of industrial finance bonds for which he intends
to subscribe, and his address, and shall place his signature and seal
thereon.
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ENFORCEMENT DECREE OF THE KOREA DEVELOPMENT BANK ACT
(2) The application for subscription for industrial finance bonds shall be
prepared by the governor, and shall contain the following particulars:
<Amended by Presidential Decree No. 21516, May 29, 2009>
1. The name of the Korea Development Bank;
2. The total amount of industrial finance bonds to be issued;
3. The nominal value of each industrial finance bond;
4. The rate of interest on the industrial finance bonds;
5. The manner and date of redemption of the industrial finance bonds;
6. The manner and date of payment of interest;
7. The issue price or minimum level of the issue price of the industrial
finance bonds;
8. The authorized capital and paid-in capital of the Korea Development
Bank;
9. A statement that they are being issued under Article 26 of the Act,
if issued thereunder;
10. The total amount of unredeemed industrial finance bonds, if any.
(3) Notwithstanding the provisions of paragraph (2) 4, the subscriber
shall indicate subscribed interest rates on the application for subscrip-
tion for industrial finance bonds, unless the interest rate of industrial
finance bond is determined. <AmendedbyPresidentialDecreeNo.15514,Nov.29,
1997>
(4) Notwithstanding the provisions of paragraph (2) 7, the subscriber shall indicate subscribed price on the application for subscription for industrial finance bonds, unless the issue price of an industrial finance bond is determined, or where its minimum level of issue price is deter- mined. <Newly Inserted by Presidential Decree No. 15514, Nov. 29, 1997>
Article 23
The provisions of Article 22 shall not apply when the total amount of
industrial finance bonds being issued is taken up by contract.
Article 24
If it is stated in the application for subscription for industrial finance bonds that the industrial finance bonds are validly issued even when the total amount of subscriptions for the industrial finance bonds has not reached the total amount of the industrial finance bonds stated in the application for subscription for industrial finance bonds, the total amount of subscrip- tions shall be the total amount for the industrial finance bonds. <Amended by Presidential Decree No. 14632, Apr. 28, 1995>
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제22편 통화․국채․금융 한국산업은행법 시행령
Article 25
When the subscription period for industrial finance bonds has been closed, the governor shall, without delay, pay the full amount of each industrial finance bond. <Amended by Presidential Decree No. 21516, May 29, 2009>
Article 26
No certificate of industrial finance bonds shall be issued until the total amount of the issued industrial finance bonds is paid up:
Provided, That when the industrial finance bonds are issued under Article 27, this shall
not apply.
Article 27
(1) Where industrial finance bonds are issued by sales, the sales period shall be fixed in advance. <AmendedbyPresidentialDecreeNo.15514,Nov.29,1997>
(2) When industrial finance bonds are issued under paragraph (1), the
application for subscription for industrial finance bonds shall not be exe- cuted.
(3) In the certificate for industrial finance bonds issued under paragraph (1),
the particulars mentioned in Article 22 (2) 1, 3 through 6, and the serial number of each industrial finance bonds shall be stated.
Article 28
When the Korea Development Bank issues industrial finance bonds by a sale, it shall serve public notice by advertising the sale period and the particulars stated in Article 22 (2) 1 through 7.
Article 29
(1) The Korea Development Bank shall cause the ledger of industrial finance bonds to be kept at its principal office.
(2) In the ledger of industrial finance bond, the following matters shall be
entered: <Amended by Presidential Decree No. 14632, Apr. 28, 1995>
1. The total number of industrial finance bonds, and the serial number of each bond;
2. The date on which the bond certificate is issued;
3. The particulars stated in Article 22 (2) 2 through 6.
(3) When industrial finance bonds are issued in non-bearer form, the following particulars shall, in addition to those stated in
paragraph (2),
be entered in the ledger of industrial finance bonds: <Amended by Presidential
Decree No. 14632, Apr. 28, 1995>
1. The name and address of each holder;
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ENFORCEMENT DECREE OF THE KOREA DEVELOPMENT BANK ACT
2. The date of acquisition thereof.
Article 30
Holders of industrial finance bonds shall, at any time during the business hours of the Korea Development Bank, be entitled to request
the inspection
of the ledger of industrial finance bonds.
Article 31
With respect to the transfer of an industrial finance bond in non-bearer form, the transferee shall not defense to the Korea Development
Bank or a third
party unless and until the name and address of the transferee are entered
in the ledger of industrial finance boards and the same name is entered in the certificate thereof.
Article 32
(1) A pledge on an industrial finance bond in non-bearer form shall not be set up against the Korea Development Bank or other third
parties unless and until the name and address of the pledgee are entered in the ledger of
industrial finance bonds.
(2) When a pledge is created in accordance with paragraph (1), the Korea
Development Bank shall enter a statement to that effect on the bond certificate.
Article 33
The Korea Development Bank may retire industrial finance bonds by purchasing them to the extent that services provided for in Article
18 of
the Act are not impeded. <AmendedbyPresidentialDecreeNo.14438,Dec.23,1994;
Presidential Decree No. 15514, Nov. 29, 1997>
Article 34
(1) When the coupon attached to an industrial finance bond in bearer form has been lost, an amount equivalent thereto shall, upon
redemption, be deducted from the sum to be repaid.
(2) The bearer of the coupon stated in paragraph (1) may, at any time,
request the Korea Development Bank, in exchange for the coupon, to pay the amount which has been deducted.
[This Article Wholly Amended by Presidential Decree No. 7986, Feb. 12, 1976]
Article 35
(1) Notices or peremptory notices to subscribers for industrial finance bonds shall be sent to the address entered on the subscription application: Pro- vided,That if the subscriber gives the Korea Development Bank another address for the purpose of notices or peremptory notices, they shall be sent
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제22편 통화․국채․금융 한국산업은행법 시행령
there.
(2) The provisions of paragraph (1) shall apply to notices or peremptory
notices sent to persons having title to industrial finance bonds before the bond certificate is issued.
(3) Notices or peremptory notices to holders of industrial finance bonds in non-bearer form shall be sent to the address appearing
on the ledger of
industrial finance bonds: Provided,That if the holder gives the Korea
Development Bank another address for the purpose of notices or peremptory
notices, they shall be sent there.
(4) Notices or peremptory notices to holders of industrial finance bonds in bearer form may be given by public notice.
CHAPTER Ⅲ-2 CRITERIA AND SUPER- VISION OF SOUND MANAGEMENT
Article 35-2 (Definitions)
The definitions of terms used in this Chapter shall be as follows: <Amended by Presidential Decree No. 19191, Dec. 28, 2005>
1. The term equity capital means the equity capital under Article
2 (1) 5 of the Banking Act;
2. The term credit extension means the credit extension under Article
2 (1) 7 of the Banking Act;
3. The term enterprise group means the enterprise group under sub- paragraph 2 of Article 2 of the Monopoly Regulation and Fair
Trade
Act.
[This Article Newly Inserted by Presidential Decree No. 16742, Mar. 4, 2000]
Article 35-3 (Supervision of Sound Management)
(1) The Financial Services Commission shall exercise supervision over the Korea Development Bank in accordance with Articles 35-4
through
35-14 under Article 47 of the Act. <AmendedbyPresidentialDecreeNo.20653,
Feb. 29, 2008>
(2) The Financial Services Commission may determine detailed matters necessary to exercise supervision under paragraph (1). <AmendedbyPresi-
dential Decree No. 20653, Feb. 29, 2008>
[This Article Newly Inserted by Presidential Decree No. 16742, Mar. 4, 2000]
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ENFORCEMENT DECREE OF THE KOREA DEVELOPMENT BANK ACT
Article 35-4 (Ceiling on Credit Extension to Same Borrower)
(1) The Korea Development Bank may not extend credit in excess of
25/100 of its equity capital to the same individual or juristic person, and
a person belonging to the same enterprise group as such individual or juristic person (hereinafter referred to as the same
borrower ): Provided,
That the same shall not apply to any of the following cases: <Amended
by Presidential Decree No. 18457, Jun. 29, 2004; Presidential Decree No. 18736, Mar. 8,
2005; Presidential Decree No. 19191, Dec. 28, 2005; Presidential Decree No. 20653, Feb.
29, 2008>
1. Where an additional credit is extended to a company for which the reorganization procedure or the composition procedure is
under way in accordance with the Debtor Rehabilitation and Bankruptcy Act or of which the normalization of operation is in progress
by joint finan- cial institutions as a part of the adjustment of enterprise structure;
2. Where an additional credit is extended to a person who acquires a company falling under subparagraph 1 in compliance with
acquisition agreement;
3. Where a ceiling on the credit extension as referred to in the above main sentence is exceeded due to the following causes,
in spite of the absence of any additional credit extension:
(a) Where the amount of money converted into won currency is in- creased by the fluctuation of exchange rate;
(b) Where the equity capital of the Korea Development Bank is de- creased;
(c) Where any alteration is made in the constitution of the same borrower;
(d) Where any merger or any transfer or taking over of business is made among the enterprises to which are extended
credit;
(e) Where there exists any compelling cause such as the sudden change in economic conditions, which is recognized by the Financial
Services Commission;
4. Where any credit is extended to an electric source development business operator in accordance with the electric source development
business execution plan under the Electric Source Development Promotion Act;
5. Where it is necessary to implement an industrial policy such as in- frastructure facility business or to stabilize national life,
which is rec-
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제22편 통화․국채․금융 한국산업은행법 시행령
ognized by the Financial Services Commission after consultation with
the Minister of Strategy and Finance.
(2) Where a ceiling on credit extension referred to in the main sentence of paragraph (1) is exceeded due to such cause as provided
for in para- graph (1) 3, it shall be adjusted to suit the ceiling as referred to in the
main sentence of paragraph (1) within one year from the date the ceiling is exceeded: Provided, That in the following cases, the said period may
be extended by the Financial Services Commission to a certain time: <Amended by Presidential Decree No. 20653, Feb. 29, 2008>
1. Where it is difficult to collect the extended credit within the said pe-
riod because the deadline for the collection has yet to come;
2. Where any cause falling under paragraph (1) 3 (a) or (b) continues to exist for a long time, and if the extended credit is collected,
the stabilization of management of the person who is extended such
credit might be noticeably impaired;
3. Where the Financial Services Commission deems that the soundness of assets of the Korea Development Bank might not be noticeably
impaired even if the state of excess of the ceiling continues for a certain period of time, which is similar to any causes referred
to in subparagraphs 1 and 2.
[This Article Newly Inserted by Presidential Decree No. 16742, Mar. 4, 2000]
Article 35-5 (Ceiling, etc. on Credit Extension to Same Person)
(1) The Korea Development Bank may not extend credit in excess of
20/100 of its equity capital to the same individual or juristic person, re- spectively.
(2) The sum total of a large amount of credit extension of the Korea
Development Bank (referring to cases where the amount of credit exten- sion to the respective same borrowers exceeds 10/100 of the
equity capital of the Korea Development Bank) may not exceed five times the equity
capital.
(3) The provisions of the proviso to Article 35-4 (1) and paragraph (2)
of the same Article shall apply mutatismutandis to the cases of para-
graphs (1) and (2).
[This Article Newly Inserted by Presidential Decree No. 16742, Mar. 4, 2000]
Article 35-6 (Restrictions on Investments, etc. in Another Juristic Per- son)
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ENFORCEMENT DECREE OF THE KOREA DEVELOPMENT BANK ACT
(1) The Korea Development Bank may not acquire stocks in excess of
15/100 of the voting stocks (including contribution quota; hereafter in this Article the same shall apply) issued by another
juristic person:
Provided, That the same shall not apply to the following cases: <Amended
byPresidential DecreeNo.19191,Dec.28, 2005; PresidentialDecreeNo.20653,Feb.29,
2008; Presidential Decree No. 21480, May 6, 2009>
1. Where the Korea Development Bank acquires the stocks of another juristic person in consequence of investment in the Bank by
the Gov- ernment;
2. Where the Korea Development Bank acquires stocks in consequence of stock dividend or free issue of new stocks;
3. Where the Korea Development Bank acquires stocks by the convert- sion of loans into investments due to the restructuring of enterprises,
etc.;
4. Where the Korea Development Bank acquires stocks in consequence of the exercise of security right;
5. Where the Korea Development Bank acquires stocks in consequence of the participation in the issue of new stocks to be purchased
within
the scope of its own existing share;
6. Where the Korea Development Bank acquires stocks in consequence of converting into stock-related bonds such as bonds with
warrants;
7. Where the Korea Development Bank acquires stocks by investment
in a company of which more than 15/100 of issued voting stocks are owned by the Korea Development Bank (hereinafter referred to as
a<.. image removed ..>
subsidiary company ) and which belongs to the category of business
determined by the Financial Services Commission. In such cases, the total amount (excluding the amount of investments under the pro-
visions of subparagraph 10) of investments in each subsidiary company
shall not be in excess of 20/100 of the equity capital of the Korea
Development Bank;
8. Where the Korea Development Bank makes investments in a small
and medium enterprise start-up investment association under the
Support for Small and Medium Enterprise Establishment Act, a new technology project investment association under the Specialized Credit
Financial Business Act, a component and material specialized invest- ment association under the Act on Special Measures for the Promotion
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제22편 통화․국채․금융 한국산업은행법 시행령
of Specialized Enterprises, etc. for Component and Material, a corporate
restructuring association registered pursuant to Article 15 of the
Industrial Development Act (referring to the Act before amended by
the wholly amended Industrial Development Act, Act No. 9584), a specialized private equity fund company for corporate workout
pur-
suant to Article 20 of the Industrial Development Act and the Korea
venture investment association under the Act on Special Measures for the Promotion of Venture Businesses;
9. Where the Korea Development Bank acquires stocks by investment
in venture businesses under the Act on Special Measures for the Pro- motion of Venture Businesses or small and medium enterprises
under
the Framework Act on Small and Medium Enterprises;
10. Where it is necessary to achieve the purposes of establishment of the Korea Development Bank, which is approved
by the Financial
Services Commission.
(2) The Korea Development Bank shall not perform the following acts in doing business with its subsidiary companies: <Amended by Presidential
Decree No. 20653, Feb. 29, 2008>
1. Extending credit to its subsidiary companies in excess of the ceiling as determined by the Financial Services Commission;
2. Extending credit by taking the stocks of its subsidiary companies as
security;
3. Extending credit in order to solicit for the purchase of the stocks of its subsidiary companies.
[This Article Newly Inserted by Presidential Decree No. 16742, Mar. 4, 2000]
Article 35-7 (Restrictions on Holding, etc. of Securities)
The Korea Development Bank shall not conduct the following businesses:
<AmendedbyPresidentialDecreeNo.18736,Mar.8,2005;PresidentialDecreeNo.19191, Dec.28,2005;PresidentialDecreeNo.19806,Dec.29,2006;PresidentialDecreeNo.20653, Feb. 29, 2008; Presidential Decree No. 21516, May 29, 2009>
1. Holding stocks or securities of more than three year maturity in excess
of 60/100 of its equity capital: Provided, That this shall not include
the following securities:
(a) Stocks underwritten in accordance with subparagraph 2 of Article
18 of the Act;
(b) Bonds issued by the State, local governments, or special corpora-
tions under any special Acts;
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ENFORCEMENT DECREE OF THE KOREA DEVELOPMENT BANK ACT
(c) Monetary stabilization bonds issued by the Bank of Korea;
(d) Bonds issued by the Fund under the State Finance Act;
(e) Securities acquired through investment by the Government;
2. Owning real estate other than real estate for business use: Provided, That this shall not include the acquisition of real estate through the exercise of security right, such as mortgages;
3. Owning real estate for business in excess of 60/100 of its equity capital;
4. Loaning funds with the object of speculation in goods or securities;
5. Loaning funds by taking as security more than 20/100 of stocks issued by other stock companies, by either direct or indirect manners:
Pro- vided, That this shall not include loaning to the following juristic persons:
(a) A juristic person established for the purpose of project finance creating the funds by making cash incomes, etc. anticipated
to be generated from the relevant projects as repayment financial resources to implement a specific project requiring considerable
time and funds for completion such as creating the social fundamental facilities, house construction or resources development,
etc.;
(b) A juristic person in which the normalization of operation is in progress by joint financial institutions as a part of the
adjustment of enterprise structure;
6. Loaning funds to officers or employees of the Korea Development Bank or its subsidiary companies: Provided, That this shall not include small-size loaning as determined by the Financial Services Commission.
[This Article Newly Inserted by Presidential Decree No. 16742, Mar. 4, 2000]
Article 35-8 (Disposal of Assets for Non-Business Use, etc.)
Where the Korea Development Bank acquires through the exercise of security right any assets of which the acquisition or ownership is prohibited under this Decree, it shall dispose of them as prescribed by the Financial Services Commission. <Amended by Presidential Decree No. 20653, Feb. 29, 2008> [This Article Newly Inserted by Presidential Decree No. 16742, Mar. 4, 2000]
Article 35-9 (Building of Risk Control System)
The Korea Development Bank shall prepare business conduct standards and procedures to properly control various risks which might occur in all
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제22편 통화․국채․금융 한국산업은행법 시행령
process of management and shall build and operate a risk control system
to systematically manage assets and debts, etc.
[This Article Newly Inserted by Presidential Decree No. 16742, Mar. 4, 2000]
Article 35-10 (Accounting Standards)
The accounting of the Korea Development Bank shall be conducted in accordance with the accounting rules of banking business determined by the Securities and Futures Commission and the bank-related accounting standards determined by the Financial Services Commission under the Act on the Establishment, etc. of Financial Services Commission, and the matters not determined by the said rules and standards shall be dealt with pursuant to enterprise accounting standards. <AmendedbyPresidentialDecree No. 19191, Dec. 28, 2005; Presidential Decree No. 20653, Feb. 29, 2008>
[This Article Newly Inserted by Presidential Decree No. 16742, Mar. 4, 2000]
Article 35-11 (Scope of Supervision over Soundness of Management) The supervision and inspection of the soundness of management by the Financial Services Commission shall be conducted only with respect to the matters which are not subject to the accounting inspection under Article
22 of the Board of Audit and Inspection Act and to the supervision of duties under Article 24 of the same Act. <AmendedbyPresidentialDecreeNo.19191,Dec.
28, 2005; Presidential Decree No. 20653, Feb. 29, 2008>
[This Article Newly Inserted by Presidential Decree No. 16742, Mar. 4, 2000]
Article 35-12 (Guidance of Sound Management)
(1) The Korea Development Bank shall regularly grade its holding assets according to their soundness to accumulate and hold
appropriate bad debt allowances: Provided, That the claims on the State, local govern-
ments, or government-invested institutions shall be excluded from the claims subject to the establishment of bad debt allowances.
(2) The Korea Development Bank shall observe the asset management standards determined by the Financial Services Commission such
as the ratio of equity capital to assets weighted by risk pursuant to the standards of the Bank of International Settlements and
the ratio of current assets expressed in won currency to current liabilities expressed in won currency.
<Amended by Presidential Decree No. 20653, Feb. 29, 2008>
(3) Where the Financial Services Commission deems that the soundness of management of the Korea Development Bank might be severely impaired for failure to meet the standards of sound management under this Chapter,
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ENFORCEMENT DECREE OF THE KOREA DEVELOPMENT BANK ACT
the Commission may request that the Bank take necessary measures to
correct it. <Amended by Presidential Decree No. 20653, Feb. 29, 2008>
[This Article Newly Inserted by Presidential Decree No. 16742, Mar. 4, 2000]
Article 35-13 (Public Notice of Management)
The Korea Development Bank shall publicly announce major information and data on the state of its management as prescribed by the Financial Ser- vices Commission. <Amended by Presidential Decree No. 20653, Feb. 29, 2008>
[This Article Newly Inserted by Presidential Decree No. 16742, Mar. 4, 2000]
Article 35-14 (Establishment, etc. of Model Uniform Contractual Clauses for Financial Transactions)
(1) Where the Korea Development Bank intends to establish or alter
model uniform contractual clauses for financial transactions, it shall submit a prior report to the Financial Services Commission.
<Amendedby Presidential Decree No. 20653, Feb. 29, 2008>
(2) The Financial Services Commission may, if necessary to maintain sound financial transaction order, recommend that the Korea Development
Bank alter the model uniform contractual clauses established under para- graph (1). <Amended by Presidential Decree No. 20653, Feb. 29, 2008>
(3) The Financial Services Commission may determine the time and
procedures of report on the establishment and alteration of the model uniform contractual clauses under paragraph (1) and other
necessary matters.
<Amended by Presidential Decree No. 20653, Feb. 29, 2008>
(4) The Korea Development Bank shall publicly announce contractual conditions of financial transactions, etc. as prescribed by the Financial Services Commission. <Amended by Presidential Decree No. 20653, Feb. 29, 2008>
[This Article Newly Inserted by Presidential Decree No. 16742, Mar. 4, 2000]
CHAPTER Ⅳ SUPPLEMENTARY PROVISIONS
Articles 36 and 37 Deleted. <by Presidential Decree No. 21516, May 29, 2009>
Article 37-2 Deleted. <by Presidential Decree No. 21516, May 29, 2009>
Article 37-3 (Methods for Dividends in Kind)
(1) When the Korea Development Bank intends to distribute a part of net profits of closing accounts as dividends in kind pursuant to the provisions of Article 43 (3) of the Act, it shall do so with the contributions in kind to the Korea Development Bank.
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제22편 통화․국채․금융 한국산업은행법 시행령
(2) Article 62 of the State Property Act shall apply mutatis mutandis
to the value computation of dividends in kind under the provisions of paragraph (1). <Amended by Presidential Decree No. 21641, Jul. 27, 2009>
[This Article Newly Inserted by Presidential Decree No. 19191, Dec. 28, 2005]
Article 38
The Financial Services Commission may establish procedures necessary for an application for any authorization required to be obtained
under the
Act, and for the supervision of the Korea Development Bank. <Amended
byPresidential DecreeNo.14438, Dec. 23, 1994; Presidential DecreeNo. 16323,May 24,
1999; Presidential Decree No. 20653, Feb. 29, 2008>
Article 39 (Detailed Standards of Authorization)
The detailed standards of authorization pursuant to Article 50 (2) of the
Act shall mean the standards pursuant to Article 4 (1) 1, 2 and 4, and paragraph (2) of the same Article concerning those of the Financial
Holding
Companies Act.
[This Article Newly Inserted by Presidential Decree No. 21516, May 29, 2009]
Article 40 (Methods of Computation of Equity Capital of Korea Develop- ment Bank Holding)
Article 24 (3) of the Enforcement Decree of the Financial Holding Companies
Act shall apply mutatis mutandisto methods of computation of equity capital
of Korea Development Bank Holdings or such pursuant to Article 50-5 (2)
of the Act.
[This Article Wholly Amended by Presidential Decree No. 21516, May 29, 2009]
Article 41 (Formation and Operation of Committee to Monitor Imple- mentation of Privatization)
(1) A term of office of members (hereinafter referred to as nongovernmental
members ) of the Committee to monitor Implementation of Privatization
(hereinafter referred to as the Committee ) commissioned by the Chair- man of the Financial Services Commission pursuant to Article
50-6 (3) 6 of the Act shall be two years and they may be reappointed only once.
(2) If there is a vacancy in non-governmental members, a new member shall be commissioned and his/her term of office shall be reckoned
from
the date on which he/she has been commissioned.
(3) Meetings of the Committee shall be divided into a regular meeting
and special meeting; it shall be the principle that a regular meeting is called once a half year, and a special meeting shall be called
at the request of the chairman of the Committee (hereinafter referred to as the Chairman )
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ENFORCEMENT DECREE OF THE KOREA DEVELOPMENT BANK ACT
or at the request of a majority of the incumbent members.
(4) The Committee shall take the minutes of the meeting and open them to the public as prescribed by the Committee.
(5) In addition to the matters prescribed in paragraphs (1) through (4), matters necessary for operation of the Committee shall be
determined by the Chairman through a resolution of the Committee.
[This Article Newly Inserted by Presidential Decree No. 21516, May 29, 2009]
ADDENDUM
This Decree shall enter into force on the date of its promulgation.
ADDENDUM <Presidential Decree No. 5497, Jan. 27, 1971>
This Decree shall enter into force on the date of its promulgation.
ADDENDUM <Presidential Decree No. 7986, Feb. 12, 1976>
This Decree shall enter into force on the date of its promulgation.
ADDENDUM <Presidential Decree No. 8613, Jul. 2, 1977>
This Decree shall enter into force on the date of its promulgation.
ADDENDUM <Presidential Decree No. 10022, Sep. 10, 1980>
This Decree shall enter into force on the date of its promulgation.
ADDENDA <Presidential Decree No. 14438, Dec. 23, 1994>
Article 1 (Enforcement Date)
This Decree shall enter into force on the date of its promulgation.
Articles 2 through 5 Omitted.
ADDENDUM <Presidential Decree No. 14632, Apr. 28, 1995>
This Decree shall enter into force on the date of its promulgation.
ADDENDUM <Presidential Decree No. 15514, Nov. 29, 1997>
This Decree shall enter into force on the date of its promulgation.
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제22편 통화․국채․금융 한국산업은행법 시행령
ADDENDA <Presidential Decree No. 16323, May 24, 1999>
Article 1 (Enforcement Date)
This Decree shall enter into force on the date of its promulgation.
Articles 2 through 4 Omitted.
ADDENDA <Presidential Decree No. 16617, Dec. 27, 1999>
(1) (Enforcement Date) This Decree shall enter into force on the date of its promulgation.
(2) and (3) Omitted.
ADDENDA <Presidential Decree No. 16742, Mar. 4, 2000>
Article 1 (Enforcement Date)
This Decree shall enter into force on the date of its promulgation.
Article 2 (Transitional Measures concerning Ceiling on Credit Extension) (1) Where the Korea Development Bank has extended credit in excess of the ceiling as referred to in the amended provisions of Articles 35-4 (1) and 35-5 (1) at the time this Decree enters into force, it shall withdraw the excess credit extension to meet the amended provisions by December
31, 2004, and shall submit the detailed plan for such withdrawal to the Fi- nancial Supervisory Commission within one month from the
date this Decree takes effect and obtain approval from the Commission.
(2) Where the Korea Development Bank has extended credit in excess of the ceiling as referred to in the amended provisions of 35-5
(2) at the time this Decree enters into force, it shall withdraw the excess credit extension to meet the amended provisions by December
31, 2000, and shall submit the detailed plan for such withdrawal to the Financial Supervisory Com- mission within one month from
the date this Decree takes effect and obtain approval from the Commission.
Article 3 (Transitional Measures concerning Holding of Stocks Issued by
Another Juristic Person)
Stocks held by the Korea Development Bank in excess of 15/100 of stocks (including contribution quota) issued by another juristic person at the time of the entry into force of this Decree and not falling under the amended provisions of Article 35-6 (1) 1 through 9 shall be deemed to be held with approval from the Minister of Finance and Economy in accordance with the amended provisions of Article 35-6 (1) 10.
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제22편 통화․국채․금융 한국산업은행법 시행령
ADDENDA <Presidential Decree No. 18457, Jun. 29, 2004>
Article 1 (Enforcement Date)
This Decree shall enter into force on July 1, 2004. (Proviso Omitted.)
Articles 2 through 4 Omitted.
ADDENDA <Presidential Decree No. 18736, Mar. 8, 2005>
Article 1 (Enforcement Date)
This Decree shall enter into force on the date of its promulgation.
Articles 2 through 5 Omitted.
ADDENDUM <Presidential Decree No. 19191, Dec. 28, 2005>
This Decree shall enter into force on January 1, 2006: Provided, That the amended provisions of Article 35-4 (1) 1 shall enter into force on April 1,
2006.
ADDENDA <Presidential Decree No. 19806, Dec. 29, 2006>
Article 1 (Enforcement Date)
This Decree shall enter into force on January 1, 2007.
Articles 2 through 6 Omitted.
ADDENDA <Presidential Decree No. 20653, Feb. 29, 2008>
Article 1 (Enforcement Date)
This Decree shall enter into force on date of its promulgation. (Proviso
Omitted.)
Article 2 Omitted.
ADDENDA <Presidential Decree No. 21480, May 6, 2009>
Article 1 (Enforcement Date)
This Decree shall enter into force on May 8, 2009.
Articles 2 and 3 Omitted.
ADDENDA <Presidential Decree No. 21516, May 29, 2009>
Article 1 (Enforcement Date)
This Decree shall enter into force on June 1, 2009.
Article 2 (Special Cases concerning Computation of Equity Capital) Notwithstanding subparagraph 1 of Article 35-2, where the Korea Develop- ment Bank is divided into Korea Development Bank Holdings and the Korea
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ENFORCEMENT DECREE OF THE KOREA DEVELOPMENT BANK ACT
Policy Banking Corporation under the Korea Policy Banking Corporation
Act pursuant to Article 50 (1) of the Act, when the credit offering limit under the provisions of Articles 35-4 through 35-6 is applied,
the equity capital
of the Korea Development Bank shall, limited to five years from the date of division, be computed by adding all the decreased part
out of the own
equity capital at the time of division.
Article 3 (Consultation According to Burden of Debts in Foreign Currency) (1) With respect to debts in foreign currency pursuant to Article 18-2 (1) of the Act (hereafter referred to as debts in foreign currency in this Article) which are expected to be newly borne by the Korea Development Bank by each quarter from the enforcement date of the partly amended Korea Development Bank Act (Act No. 9703), until the first time to sell the stake in Korea Development Bank Holdings possessed by the Govern- ment, the Korea Development Bank shall consult matters referred to in the following subparagraphs with the Minister of Strategy and Finance and the Financial Services Commission in advance pursuant to Article
6 the Addenda to the partly amended Korea Development Bank Act (Act No. 9703). The same shall also apply in cases where it intends to modify them:
1. Reasons of borrowing;
2. Amount of borrowing;
3. The term of redemption.
(2) The Korea Development Bank shall, in order to smoothly have con- sultation pursuant to paragraph (1), present matters concerning
the present
status of redemption in the previous quarter, the balance of debts and
estimated amount of redemption in the relevant quarter on debts in foreign currency to the Minister of Strategy and Finance and the
Financial Services
Commission within 15 days from the first day of each quarter by quarters.
ADDENDA <Presidential Decree No. 21641, Jul. 27, 2009>
Article 1 (Enforcement Date)
This Decree shall enter into force on July 31, 2009. (Proviso Omitted.)
Articles 2 through 15 Omitted.
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