Article 1(Purpose) #
The purpose of this Act is to establish the Inter-Korean Cooperation Fund to support the mutual exchange and cooperation between South and North Korea under the Inter-Korean Exchange and Cooperation Act, and to provide for matters necessary for the operation and management of the Fund.
[This Article Wholly Amended on May, 28, 2009]
Article 2(Definitions) #
The terms used in this Act shall be defined as follows. <Amended on May 17, 2010>
1. "Trade" and "cooperation projects" mean the trade and cooperation projects provided for in subparagraphs 2 and 4 of Article 2 of the Inter-Korean Exchange and Cooperation Act, respectively;
2. "Financial institution" means a bank under the Banking Act and any other Acts.
[This Article Wholly Amended on May, 28, 2009]
Article 3(Establishment of Fund) #
In order to secure and supply funds necessary for attaining the purposes of this Act, the Government shall establish the Inter-Korean Cooperation Fund (hereinafter referred to as the "Fund").
[This Article Wholly Amended on May, 28, 2009]
Article 4(Financial resources of Fund) #
The Fund shall consist of the following financial resources: <Amended on Jan. 9, 2024>
1. Contributions from the Government;
1-2. Contributions and donations made by persons other than the Government;
2. Long-term borrowings under Article 5;
3. Deposit received from the Public Capital Management Fund under the Public Capital Management Fund Act;
4. Revenues accruing from the operation of the Fund;
5. Other revenues prescribed by Presidential Decree.
[This Article Wholly Amended on May, 28, 2009]
Article 4-2(Receipt of donations) #
The Minister of Unification may receive donations voluntarily made within the scope consistent with the purpose of the Fund under Article 8, after deliberation, as prescribed by Decree of the Ministry of Unification.
[This Article Added on Jan. 9, 2024]
Article 5(Long-term borrowings) #
(1) The Minister of Unification may, if required to raise the financial resources of the Fund, get a long-term loan from other Funds, financial institutions, etc., at the expense of the Fund.
(2) The Minister of Unification shall, when borrowing funds under paragraph (1), consult in advance with the Minister of Finance and Economy and the heads of the relevant central administrative agencies. <Amended on Oct. 1, 2025>
[This Article Wholly Amended on May, 28, 2009]
Article 6 #
Deleted. <Dec. 31, 1993>
Article 7(Operation and management of Fund) #
(1) The Fund shall be operated and managed by the Minister of Unification.
(2) The Minister of Unification may entrust any financial institution with administrative affairs concerning the operation and management of the Fund, as prescribed by Presidential Decree.
(3) The Minister of Unification shall, when formulating an operation plan of the Fund, shall consult in advance with the Minister of Finance and Economy, the Minister of Planning and Budget, and the heads of the relevant central administrative agencies about important matters related to economic and financial policies. <Amended on Oct. 1, 2025>
(4) The following matters concerning the operation and management of the Fund shall be tabled for deliberation before the Inter-Korean Exchange and Cooperation Promotion under Article 4 of the Inter-Korean Exchange and Cooperation Act:
1. Basic policies on the operation and management of the Fund;
2. Operation plans of the Fund;
3. Report on the settlement of accounts;
4. Other matters deemed necessary by the Minister of Unification.
[This Article Wholly Amended on May, 28, 2009]
Article 8(Use of Fund) #
The Fund shall be used for any of the following purposes: <Amended on Mar 26, 2010; Mar. 28, 2023; Jan. 16, 2024>
1. Subsidization of all or some of the expenses incurred in traveling between South and North Korea by South and North Korean residents;
2. Subsidization of all or part of funds necessary for cooperative projects in the fields of environment, statistics, academia, science and technology, information and communications, culture, sports, tourism, health and medical care, quarantine, transportation, agriculture, forestry and livestock, and marine fisheries;
3. Provision of guarantee, financing, and other necessary support for the purpose of facilitating cooperation projects in the field of trade or economy;
4. Insurance to cover losses incurred due to any factor other than managerial one prescribed by Presidential Decree while promoting cooperation projects in the field of trade or economy;
5. Subsidization of funds and compensation for losses incurred by financial institutions which offer convenience for settlement of bills, such as money exchange, or lend funds, and acceptance of any non-designated currency prescribed by Presidential Decree from financial institutions, for the purpose of facilitating inter-Korean exchange and cooperation;
6. Financing and subsidization of the funds necessary for inter-Korean exchange and cooperation which contributes to the restoration of the reliability among the Korean people and the national community, and support of any project to promote inter-Korean exchange and cooperation;
7. Redemption of loans and of the principal and interest of the deposits received from the Public Capital Management Fund under the Public Capital Management Fund Act;
8. Disbursement of expenses incurred in creating, operating and managing the Fund.
[This Article Wholly Amended on May, 28, 2009]
Article 9(Accounting agency of Fund) #
(1) The Minister of Unification shall appoint the Fund revenue collection officer, the Fund financial officer, the Fund disbursing officer, and the Fund accounting official, from among public officials under his or her control to carry out administrative affairs concerning the revenue and expenditure of the Fund.
(2) If the Minister of Unification entrusts a bank with administrative affairs concerning the operation and management under Article 7(2), he or she may appoint a director in charge of the Fund revenue and a director in charge of the activities incurring the Fund expenditure, from among directors of the entrusted bank, and a Fund disbursing employee and a Fund accounting employee, from among employees of the entrusted bank, respectively. In such cases, the director in charge of the Fund revenue, the director in charge of the activities incurring the Fund expenditure, the Fund disbursing employee and the Fund accounting employee shall carry out the duties of the Fund revenue collection officer, the Fund financial officer, the Fund disbursing officer and the Fund accounting official, respectively.
[This Article Wholly Amended on May, 28, 2009]
Article 10(Temporary loans) #
(1) If required for the operation of the Fund, the Minister of Unification may get a temporary loan from the Bank of Korea or other financial institutions at the expense of the Fund.
(2) The temporary loan referred to in paragraph (1) shall be redeemed during the fiscal year in which such temporary loan is taken out.
[This Article Wholly Amended on May, 28, 2009]
Article 11(Reporting and redemption) #
(1) A person who intends to use the Fund and a person who has used the Fund shall report the plan for and the result of using the Fund, respectively, to the Minister of Unification, as prescribed by Presidential Decree.
(2) If a person using the Fund uses it for purposes other than that for which the Fund is to be disbursed, the Minister of Unification may redeem all of the disbursed Fund.
(3) The redemption of the Fund under paragraph (2) shall be made according to the practices of disposition on default of national taxes.
[This Article Wholly Amended on May, 28, 2009]
Article 12(Management of surplus money) #
The Minister of Unification may manage surplus money of the Fund, if any, in any of the following manner:
1. Purchase of state and public bonds;
2. Deposit in the Public Capital Management Fund under the Public Capital Management Fund Act;
3. Short-term deposit in financial institutions;
4. Other methods prescribed by Presidential Decree.
[This Article Wholly Amended on May, 28, 2009]
Article 12-2(Accumulation of donations) #
The Minister of Unification may accumulate donations received pursuant to Article 4-2 as surplus funds until the purpose of donations can be achieved.
[This Article Added on Jan. 9, 2024]
Article 13(Settlement of profits and deficits) #
(1) If any profits accrue from the settlement of Fund accounts, such profits shall be reserved in full.
(2) If any deficits are incurred from the settlement of Fund accounts, such deficits shall be covered with the reserve funds under paragraph (1), and the Government may cover such deficits within its budgetary limits, if the reserve funds are insufficient to cover such deficits.
[This Article Wholly Amended on May, 28, 2009]
Article 14(Supervision and order) #
Where the Minister of Unification entrusts administrative affairs concerning the operation and management of the Fund under Article 7(2), he or she shall supervise such entrusted affairs and issue any orders necessary therefor.
[This Article Wholly Amended on May, 28, 2009]