Article 1(Installation) #
In order to efficiently operate the postal insurance business under the Postal Savings and Insurance Act, Special Accounts for Postal Insurance shall be established, and the revenue of the Accounts shall be appropriated for the expenditure of the Accounts.
[This Article Wholly Amended on Jan. 30, 2009]
Article 2(Management of accounts) #
The Special Accounts for Postal Insurance (hereinafter referred to as the "Accounts") shall be managed by the Minister of Science and ICT. <Amended on Mar. 23, 2013; Jul. 26, 2017>
[This Article Wholly Amended on Jan. 30, 2009]
Article 3(Revenues and expenditures) #
(1) The revenue of the Accounts shall be as follows:
1. Additional insurance premiums [referring to insurance premiums added to net insurance premiums in order to appropriate them for expenses necessary for the operation of the postal insurance business under the Postal Savings and Insurance Act (hereinafter referred to as the "insurance business")];
2. The postal insurance reserve under Article 4 (1) or transfers and loans from other accounts;
3. Other revenues.
(2) The expenditure of the Accounts shall be as follows:
1. Expenses for operation of the insurance business;
2. Repayments for loans borrowed and interest thereon;
3. Costs invested in insurance facilities;
4. Subsidies for the installation and operation of insurance facilities.
[This Article Wholly Amended on Jan. 30, 2009]
Article 4(Creation of postal insurance reserve) #
(1) A postal insurance reserve (hereinafter referred to as "reserve") shall be created separately from the revenue and expenditure in order to appropriate it for the liability reserve for the payment of insurance proceeds, refunds, and other insurance benefits.
(2) The reserve shall be raised from the following revenues:
1. Net insurance premiums (referring to the insurance premiums less additional insurance premiums);
2. Gains on the operation of the reserve;
3. Surpluses after the settlement of the revenue and expenditure of the Accounts.
(3) Insurance proceeds, refunds, and other insurance benefits shall be disbursed from the reserve.
[This Article Wholly Amended on Jan. 30, 2009]
Article 5(Operation of reserve) #
(1) The reserve shall be operated and managed by the Minister of Science and ICT. <Amended on Mar. 23, 2013; Jul. 26, 2017>
(2) The reserve shall be operated in a manner that ensures stability, liquidity, profitability, and public interests.
[This Article Wholly Amended on Jan. 30, 2009]
Article 6(Methods of operation of reserve) #
(1) The reserve shall be operated by the following methods: <Amended on Mar. 23, 2013; Jul. 26, 2017; Jan. 9, 2024>
1. Deposits in financial institutions;
2. Trading and lending of securities under the Financial Investment Services and Capital Markets Act;
3. Loans to the State, local governments, and public institutions specified by Decree of the Ministry of Science and ICT;
4. Loans to insurance policy holders;
5. Acquisition, disposal, and lease of real estate for business purposes specified by Presidential Decree;
6. Trading of derivatives under Article 5 of the Financial Investment Services and Capital Markets Act;
7. Investment in venture businesses under Article 2 (1) of the Special Act on the Promotion of Venture Businesses;
8. Deposits in the Treasury Fund;
9. Loans to financial institutions through fund brokerage companies under Article 355 of the Financial Investment Services and Capital Markets Act;
10. Increases of the reserve specified by Presidential Decree.
(2) Where the reserve is operated pursuant to paragraph (1) 2, environmental and social factors, governance, and other factors related to investment targets may be taken into account, so as to boost revenue in a long-term and stable manner. <Added on Aug. 8, 2023>
(3) In order to clarify the performance of the operation of the reserve and the financial status of the reserve, the Minister of Science and ICT shall account for increases, decreases, and changes of assets in accordance with actual occurrences. <Amended on Mar. 23, 2013; Jul. 26, 2017; Aug. 8, 2023>
(4) In order to operate the reserve efficiently, the Minister of Science and ICT may entrust a corporation designated by him or her with all or part of the operation of the business under paragraph (1) 2, 6, 7, and 10 or establish a corporation with the reserve and allow the company to operate the business, as prescribed by Presidential Decree. <Amended on Mar. 23, 2013; Jul. 26, 2017; Aug. 8, 2023>
(5) Matters necessary for the following shall be prescribed by Presidential Decree: <Amended on Aug. 8, 2023>
1. The ratio of the total acquisition value of securities purchased pursuant to paragraph (1) 2 to the reserve;
Article 7(Interest rates of loans from reserve) #
The ratio of operation by the operation method of the reserve under each subparagraph of Article 6 (1) (excluding subparagraph 2, 6, 7, and 9) and the term of loans and interest rates on the loans under subparagraphs 3 and 4 of the same paragraph shall be determined by the Minister of Science and ICT. <Amended on Mar. 23, 2013; Jul. 26, 2017>
[This Article Wholly Amended on Jan. 30, 2009]
Article 8(Preparation of reports on settlement of accounts and appropriation of surpluses) #
(1) The Minister of Science and ICT may prepare a report on settlement of accounts (including the reserve) in accordance with Acts and subordinate statutes relevant to corporate budgeting and accounting for each fiscal year in addition to the report on the settlement of the Accounts prepared pursuant to the National Accounting Act. <Amended on Mar. 23, 2013; Jul. 26, 2017>
(2) If any surplus remains after the settlement of the revenue and expenditure of the Accounts for each fiscal year, it shall be appropriated for compensating carried-over deficits, and the remainder, if any, shall be set aside for the reserve.
(3) The Minister of Science and ICT may appropriate part of the surpluses left over after the settlement of the reserve for public projects for insurance policy holders and social minorities. <Amended on Mar. 23, 2013; Jul. 26, 2017>
(4) Necessary matters regarding the scope of public projects under paragraph (3) and the procurement of financial resources therefor shall be prescribed by Decree of the Ministry of Science and ICT. <Amended on Mar. 23, 2013; Jul. 26, 2017>
[This Article Wholly Amended on Jan. 30, 2009]
Article 9(Borrowings) #
(1) If it is necessary to reimburse expenses for the Accounts, long-term loans or temporary loans may be borrowed at the expense of the Accounts.
(2) Temporary loans under paragraph (1) shall be repaid with the revenue for the pertinent fiscal year.
[This Article Wholly Amended on Jan. 30, 2009]
Article 10(Reserve fund) #
The Accounts may reflect an amount deemed appropriate as a reserve fund in the budget in order to appropriate the fund for the expenditure exceeding the budget.
[This Article Wholly Amended on Jan. 30, 2009]
Article 11(Delegation of authority) #
The authority of the Minister of Science and ICT under this Act may be partially delegated to the heads of affiliate agencies under his or her control, as prescribed by Presidential Decree. <Amended on Mar. 23, 2013; Jul. 26, 2017>
[This Article Wholly Amended on Jan. 30, 2009]
Article 12 #
Deleted. <Dec. 19, 2001>