FORESTRY COOPERATIVES ACT

영문법령 불러오는 중…

FORESTRY COOPERATIVES ACT — 법갈피

Article 11(Relationship to other statutes) #

(1) The Insurance Business Act, Articles 4, 8, and 81 of the Passenger Transport Service Act, Article 56 of the Trucking Transport Business Act, and Article 9 of the Certified Real Estate Agents Act shall not apply to the businesses of the cooperatives, etc. and the NFCF. <Amended on Jan. 8, 2019>

(2) Article 56 of the Trucking Transport Business Act shall not apply to the business of a cooperative joint business corporation under Article 86-3.

(3) The landscaping projects carried out by regional cooperatives and the NFCF pursuant to Articles 46 and 108, and, among the forest projects under subparagraph 3 of Article 2 of the Creation and Management of Forest Resources Act, building works with a total floor area not exceeding 200 square meters that are incidental to projects for the creation of natural recreation forests, etc., shall be limited to the construction business under the Framework Act on the Construction Industry, and the business categories, the requirements to be satisfied, and the scope shall be prescribed by Presidential Decree, and shall correspond to the scopes of work and registration standards provided in Articles 8 and 10 of the Framework Act on the Construction Industry. In such cases, a local cooperative or the NFCF that has filed a report under paragraph (4) shall be deemed a constructor defined in subparagraph 7 of Article 2 of the Framework Act on the Construction Industry. <Amended on Jun. 20, 2023>

(4) Where a regional cooperative or the NFCF falls under the business categories referred to in paragraph (3), and meets the requirements, and files a report with the Special Metropolitan Mayor, a Metropolitan Mayor, a Special Self-Governing City Mayor, a Do Governor, or a Special Self-Governing Province Governor (hereinafter referred to as "Mayor/Do Governor"), it shall be deemed to have registered the relevant construction business pursuant to the Framework Act on the Construction Industry.

(5) With respect to the warehousing business of cooperatives, etc., and the NFCF, Articles 155 through 168 of the Commercial Act shall apply mutatis mutandis.

[This Article Wholly Amended on Apr. 5, 2013]

Article 14(Authorization for establishment) #

(1) To establish a cooperative, at least 30 persons who are qualified to be members in the relevant district shall be promoters, and shall prepare the articles of incorporation, obtain a resolution of the inaugural general meeting, and obtain authorization from the Mayor/Do Governor (in the case of a specialized cooperative, this means the Mayor/Do Governor having jurisdiction over the location of its principal office; hereinafter the same shall apply). In such cases, the standards and procedures necessary for authorization, including the number of members and capital contributions, shall be prescribed by Presidential Decree. <Amended on Feb. 18, 2020>

(2) The proceedings of the inaugural general meeting shall be resolved by the affirmative votes of a majority of those who submitted a written consent to establishment to the promoters before the opening of the meeting.

(3) Where any promoter refuses to apply for authorization for establishment under paragraph (1), the remaining promoters may file the application with a written statement of reasons attached.

(4) Where the Mayor/Do Governor receives an application for authorization for establishment of a cooperative under paragraph (1), the Mayor/Do Governor shall grant authorization, except in the cases falling under any of the following subparagraphs: <Amended on Dec. 11, 2018; Feb. 18, 2020>

1. Where the standards for authorization for establishment are not met;

2. Where the procedures for establishment, or the details of the articles of incorporation or the business plan, violate the statutes and regulations;

3. Where the documents required for authorization for establishment have not been furnished.

(5) The Mayor/Do Governor shall, within 60 days from the date of receipt of the application for authorization for establishment of a cooperative under paragraph (1), notify the applicant of whether authorization is granted. <Added on Dec. 11, 2018; Feb. 18, 2020>

(6) Where the Mayor/Do Governor fails to notify the applicant, within the period specified in paragraph (5), either that authorization has been granted or that the processing period has been extended under the relevant statutes and regulations governing the handling of civil petitions, authorization shall be deemed to have been granted on the day following the end of that period (where the processing period has been extended or re-extended pursuant to the relevant statutes and regulations governing the handling of civil petitions, that period shall be construed as the processing period as so extended). <Added on Dec. 11, 2018; Feb. 18, 2020>

[This Article Wholly Amended on Apr. 5, 2013]

Article 15(Matters to be included in the articles of incorporation) #

(1) The articles of incorporation of a cooperative shall include the following matters: <Amended on Mar. 24, 2020>

1. Purpose, name, and district;

2. Location of the principal office;

3. Matters concerning the qualifications of members, admission, withdrawal, and expulsion;

4. Matters concerning the amount per unit of capital contribution, the limit on the number of units of capital contribution for each member, the method of payment, and the calculation of equity interests;

5. Matters concerning preferred capital contributions;

6. Matters concerning the general meeting and other decision-making bodies, and the fixed number of executive officers, their election, and their dismissal;

7. Matters concerning the appointment and dismissal of managerial staff;

8. Matters concerning the types of business and their execution;

9. Matters concerning the fiscal year and accounting;

10. Matters concerning the types of reserve funds and the methods of accumulation;

11. Matters concerning the disposition of surplus and the treatment of losses;

12. Matters concerning the imposition and collection of expenses and administrative fines, and user charges and fees;

13. Matters concerning the method of public announcement;

14. Where the term of existence or the grounds for dissolution are prescribed, such term or grounds;

15. Where a capital contribution in kind is agreed after establishment, the name, quantity, and price of the assets to be contributed in kind, the name and address of the contributor, the terms and conditions for conversion into a capital contribution in cash, and any special terms for repurchase;

16. Where any property is agreed to be acquired after establishment, the name, quantity, and price of such property, and the transferor's name and address;

17. Any other necessary matters.

(2) To amend the articles of incorporation of a cooperative, authorization shall be obtained from the Mayor/Do Governor; provided, where amendments are made in accordance with the model articles of incorporation under Article 16, authorization by the Mayor/Do Governor shall be deemed to have been obtained. <Amended on Feb. 18, 2020>

[This Article Wholly Amended on Apr. 5, 2013]

Article 35(Number of executive officers and election) #

(1) The cooperative shall have at least 7 and but not more than 15 directors, including 1 head of a cooperative, and 2 auditors as its executive officers, and the authorized number thereof shall be prescribed by the articles of incorporation. In such cases, at least half of the directors shall be members of the cooperative.

(2) The cooperative may have not more than 2 standing directors, among its directors, including the head of a cooperative specified in paragraph (1), as prescribed by the articles of incorporation; provided, if the scale of business of the cooperative, including its assets, is below the criteria prescribed by Presidential Decree, the head of a cooperative shall serve on a standing basis, and if the head of a cooperative serves on a non-standing basis, the cooperative shall have a standing director. <Amended on Mar. 24, 2020>

(3) Notwithstanding the main clause of paragraph (2), where the scale of the cooperative's business, including its assets, meets or exceeds the criteria prescribed by Presidential Decree, the head of a cooperative shall serve on a non-standing basis. <Added on Mar. 24, 2020>

(4) The head of a cooperative shall, as prescribed by the articles of incorporation, be elected from among the members by any of the following methods: <Amended on Mar. 24, 2020>

1. By direct vote of the members at a general meeting or outside a general meeting;

2. By a vote of the council of delegates.

(5) Executive officers other than the head of a cooperative shall be elected at a general meeting; provided, standing directors shall be elected at a general meeting from among persons who have extensive expertise and experience in the business of the cooperative, who meet the requirements prescribed by Presidential Decree, and who are recommended by the head of a cooperative with the consent of the board of directors. <Amended on Mar. 24, 2020>

(6) Executive officers of the cooperative, except standing officers, shall serve in an honorary capacity. <Amended on Mar. 24, 2020>

(7) Any director or auditor of a cooperative who resigns from office during the term of office in order to run for election as the head of a cooperative shall not be eligible to be a candidate in a by-election to fill the vacancy in the office of director or auditor caused by such resignation. <Amended on Mar. 24, 2020>

(8) A regional cooperative shall endeavor to elect at least 1 director from among female members; provided, if female members account for at least 30 percent of all members of a regional cooperative, at least 1 director shall be elected from among female members. <Added on Mar. 18, 2014; Mar. 24, 2020>

(9) Matters necessary for the election and recommendation of executive officers, other than those provided for in this Act, shall be prescribed by the articles of incorporation. <Amended on Mar. 18, 2014; Mar. 24, 2020>

[This Article Wholly Amended on Apr. 5, 2013]

Article 39(Grounds for disqualification of executive officers) #

(1) No person who falls under any of the following subparagraphs shall be eligible to be an executive officer of a cooperative; provided, subparagraphs 11 and 13 shall apply only to executive officers who are members of the cooperative: <Amended on Jun. 11, 2014; Dec. 27, 2016; Feb. 21, 2018; Jan. 8, 2019; Mar. 24, 2020>

1. A person who is not a citizen of the Republic of Korea;

2. A minor, a person under adult guardianship, or a person under limited guardianship;

3. A person who has been declared bankrupt and has not been reinstated;

4. A person whose qualifications have been forfeited or suspended by a judgment of a court or under any other statutes;

5. A person for whom 3 years have not elapsed since his or her imprisonment without labor or heavier punishment declared by a court was completely executed (including cases where the execution thereof is deemed to have been completed) or exempted;

5-2. A person who has been sentenced to an administrative fine of not less than 3 million won for committing any of the crimes prescribed in Article 303 of the Criminal Act or Article 10 of the Act on Special Cases concerning the Punishment of Sexual Crimes, and for whom 2 years have not elapsed since such sentence became final and conclusive;

6. A person for whom 5 years have not elapsed since the date on which a disposition ordering re-election or disciplinary dismissal was imposed under Article 125(1) of this Act or Article 84(1) of the Credit Unions Act;

7. A person who has been sentenced to a suspension of execution of a sentence of imprisonment without labor or a heavier punishment and is within the period of suspension;

8. Deleted; <Mar. 24, 2020>

9. A person for whom 4 years have not elapsed since being sentenced to a fine of at least 1 million won for committing any of the crimes prescribed in Article 132 of this Act or Article 58 (Corrupt practices and inducement by interest), Article 59 (Violation of prohibition and restriction on contributions), and Article 61 (Publication of false information) through Article 66 (Violation of various restrictive provisions) of the Act on Elections Entrusted by Public Organizations;

10. A person who was elected as an executive officer under this Act but whose election was declared invalid pursuant to Article 133(1)1 of this Act or Article 70 (Invalidation of election due to entrusted election crimes) of the Act on Elections Entrusted by Public Organizations, and for whom 5 years have not elapsed since the date on which such invalidation became final and conclusive;

11. A person who, as of the date of public announcement of the election, has not continuously held, for at least 2 years, paid-in contributions in at least the number of units of contribution prescribed in the articles of incorporation of the cooperative; provided, that this shall not apply to a cooperative for which 2 years have not elapsed since its establishment or merger;

12. A person who, as of the date of public announcement of the election, is in arrears in the repayment of obligations, beyond the amount and period prescribed by the articles of incorporation, to the cooperative, the NFCF, or any financial institution specified in any of the following items:

a. Banks established under the Banking Act;

b. Korea Development Bank under the Korea Development Bank Act;

c. Industrial Bank of Korea Act under the Industrial Bank of Korea Act;

d. Any other financial institutions prescribed by Presidential Decree;

13. A person who, as of the date of public announcement of the election, does not have a record of using the cooperative's business in at least the scale prescribed by the articles of incorporation.

(2) When any of the grounds specified in paragraph (1) occurs, the executive officer in question shall be deemed to have retired automatically.

(3) An executive officer who has retired pursuant to paragraph (2) shall not lose the validity of any act in which he or she was involved prior to retirement.

[This Article Wholly Amended on Apr. 5, 2013]

Article 40(Restrictions on electioneering) #

(1) No person shall engage in any of the following acts for the purpose of being elected, or causing a specific person to be elected, as an executive officer or delegate of the cooperative, or to prevent such election:

1. An act of providing money, goods, entertainment or other hospitality, or other property benefits, or providing any public or private office, or indicating an intention to provide, or promising to provide any of the foregoing, to an elector (including, before the electoral register is prepared, any person qualified to be entered in the electoral register who has already joined the cooperative or has applied to join; hereinafter the same shall apply), to the elector's family (referring to the elector's spouse; the lineal ascendants or descendants of the elector or of the elector's spouse; the elector's siblings; and the spouses of the elector's lineal ascendants or descendants and of the elector's siblings; hereinafter the same shall apply), or to any institution, organization, or facility established or operated by the elector or his or her family;

2. An act of committing the act specified in subparagraph 1 against any person seeking to become a candidate or any candidate, for the purpose of preventing such person from becoming a candidate or causing such candidate to withdraw his or her candidacy;

3. An act of receiving any benefit or position specified in subparagraphs 1 or 2, or accepting any expression of intent to provide such benefit or position;

4. An act of demanding or arranging for the provision of any benefit or position specified in subparagraphs 1 or 2.

(2) A person who seeks to become an executive officer or a delegate shall not, for electioneering purposes, visit electors' households door to door or cause electors to assemble at any specified place from the date of public announcement of the election day through the election day.

(3) No person shall, in connection with the election of executive officers or delegates of a cooperative, publish false facts by speeches, posters, or other means, or openly defame a candidate by alleging facts.

(4) No person may, for the purpose of voting in the election of a particular executive officer, cause any person to be entered in the electoral register by fraudulent means. <Amended on Mar. 24, 2020>

(5) No person shall engage in electioneering other than during the period from the close of candidate registration through the day preceding the election day.

(6) No person shall, during the election period, transport any money or valuables, such as packaged gifts or envelopes of cash, that are divided for distribution to multiple members of the cooperative (including members' families and any institution, organization, or facility established or operated by a member or their family), for the purpose of securing the election or non-election of themselves or any specific person.

(7) No person shall assault, threaten, lure or entice, arrest, or confine any member or employee of the cooperative election management committee, or any other person engaged in election affairs; nor shall any person, by assault or threats, cause a riot or disturbance at any polling station or at the office of the election management committee; nor shall any person conceal, damage, deface, destroy, or seize any ballot papers (whether blank or marked), voting-assistance devices, information systems, or any facilities, installations, equipment, documents, seals, or the electoral register related to election administration and enforcement. <Amended on Jun. 11, 2014>

(8) No person may engage in any electioneering in connection with the election of executive officers other than the acts specified in the following subparagraphs:

1. Affixing of propaganda posters;

2. Distribution of election bulletins;

3. Soliciting support or distributing name cards in public places such as roads, markets, or other places prescribed by Decree of the Ministry of Agriculture, Food and Rural Affairs where large numbers of people pass or assemble;

4. Holding joint campaign speeches or public debates;

5. Soliciting support by telephone (including text messages) or computer communications (including email).

(9) The executive officers and employees of a cooperative shall not perform any of the following acts:

1. Engaging in electioneering by using one's official position or authority;

2. Participation in the planning of electioneering or involvement in the implementation of that plan;

3. An act of surveying or announcing the level of support among cooperative members for a candidate (including a person who intends to become a candidate; hereinafter the same shall apply).

(10) The methods and standards for electioneering under paragraph (8) and other necessary matters shall be prescribed by Decree of the Ministry of Agriculture, Food and Rural Affairs. <Amended on Jun. 20, 2023>

[This Article Wholly Amended on Apr. 5, 2013]

Article 40-2(Restrictions on donations) #

(1) From 180 days before the expiration of the term of office of the executive officer (or, in the case of a by-election, from the date on which the grounds for holding that election are confirmed) through the election day, a candidate in the cooperative's election of executive officers, the candidate's spouse, and any institution, organization, or facility to which the candidate belongs shall not provide to any elector or the elector's family, or to any institution, organization, or facility established and operated by an elector or such family member, money, goods, or other property benefits, express an intention to provide the same, or promise to provide the same (hereinafter referred to as "donation").

(2) Notwithstanding paragraph (1), any of the following acts shall not be deemed a donation: <Amended on Jun. 11, 2014; Dec. 11, 2018; Mar. 24, 2020; Jun. 20, 2023>

1. An act performed in the course of official duties:

a. An act, by the candidate, of providing, in the name of the institution, organization, or facility to which the candidate belongs (excluding the cooperative referred to in item b), customary ceremonial money or goods, funded out of its own budget pursuant to its own business plan (including the conferral of awards and the offering of congratulatory wreaths or potted plants);

b. An act of providing money or goods in the name of the institution, organization, or facility, executed in accordance with the cooperative's business plan and income and expenditure budget pursuant to the statutes and regulations and the articles of incorporation (including the provision of awards, wreaths, and flowerpots);

c. An act of fulfilling obligations, such as providing consideration for the purchase of goods, construction works, or services rendered, or paying levies;

d. An act of sponsoring, funding, or providing goods, etc. in accordance with the statutes and regulations, other than the acts specified in items a through c;

2. Ceremonial acts:

a. An act of providing congratulatory or condolence gifts or money for the marriage, funeral, or other ceremonial occasions of relatives as defined in Article 777 (Scope of relatives) of the Civil Act;

b. An act of candidate providing congratulatory or condolence money or goods (including wreaths and flowerpots) within a customary range at family ceremonies such as weddings and funerals of persons other than relatives as defined in Article 777 (Scope of relatives) of the Civil Act, or acting as a wedding officiant;

c. An act of providing, within customary limits, refreshments or return gifts to guests or mourners attending the candidate's weddings, funerals, or other celebratory or condolence events;

d. An act, by the candidate, of giving customary gifts at year-end, Lunar New Year, or Chuseok to paid administrative staff of their affiliated institution, organization, or facility (excluding the cooperative of which the candidate seeks to become an executive officer), or to relatives as defined under Article 777 of the Civil Act;

e. An act, as a member of various social or fellowship associations and civic organizations (such as friendship societies, hometown associations, clan associations, and alumni associations), of paying membership dues, to the extent previously practiced, in accordance with obligations under the organization's articles of incorporation, bylaws, or customary operating practice;

f. An act, by the candidate, of making offerings, in accordance with customary practice, to a church, temple, or other place of worship that the candidate regularly attends (including the provision of goods);

3. An act equivalent to the relief and charitable acts prescribed in Article 112(2)3 of the Public Official Election Act;

4. An act that corresponds to the acts specified in subparagraphs 1 through 3 and is prescribed by Decree of the Ministry of Agriculture, Food and Rural Affairs.

(3) The monetary limits for congratulatory or condolence gifts, food, return gifts, and customary presents that may be provided to 1 person within the general scope under paragraph (2) are as set out in the Appendix. <Amended on Mar. 24, 2020>

(4) No person shall promise, direct, solicit, arrange, or demand the conduct described in paragraph (1).

(5) No person shall, in relation to the relevant election, perform, or cause to be performed, the acts specified in paragraph (1) on behalf of a candidate.

[This Article Wholly Amended on Apr. 5, 2013]

Article 46(Business) #

(1) A regional cooperative shall engage, in whole or in part, in the business specified in the following subparagraphs for the attainment of its purposes: <Amended on Dec. 27, 2016; Dec. 11, 2018; Feb. 18, 2020; Mar. 24, 2020>

1. Education and support programs:

a. Consultation and education/training to enhance forestry production and management capabilities;

b. Collection and provision of information related to forestry production and forest product distribution;

c. Fostering and guidance of forestry professionals and forestry teams;

d. Education and support for improving living environments and enhancing cultural life in rural and mountain villages;

e. Projects for the promotion of exchange with urban areas;

f. Other education and public relations concerning the implementation of forestry projects;

2. Economic business:

a. Business activities involving the purchase, manufacture, processing, and supply of materials necessary for the business and daily lives of cooperative members;

b. Manufacturing, processing, sale, brokerage, and export of forest products produced by members;

c. Installation and operation of shared facilities necessary for the business or daily life of members ? , and equipment rental business;

d. Distribution control and stockpiling of forest products produced by members;

e. Non-forestry income-generating businesses, such as processing and tourism businesses, utilizing members' labor or the inherent resources of rural and mountain villages;

f. Production, sale, and brokerage of feed and fertilizers made from forest products;

g. Collection, storage, cultivation, sale, and brokerage of forest products such as forest tree seedlings;

h. Street-tree planting and landscaping;

i. Brokerage of sales, leases, exchanges, and other transactions involving standing timber and forest land;

j. Construction and sale of buildings or other artificial structures using forest products as materials;

k. Storage services;

l. Bird and wildlife protection projects;

3. Forest management business:

a. Forest management by proxy;

b. Preparation of forest management plans, establishment of nurseries, afforestation, forest tending, logging, and forestry operations in special forestry project areas;

c. Construction and maintenance of forest roads, erosion control, mountain restoration, and other forest civil engineering works;

d. Establishment of forest welfare facilities, arboretums, ecological forests, urban forests, community forests, school forests, forest training grounds, forest museums, and hunting grounds, and the installation and management of their facilities;

e. Mountainous village development projects;

f. Efficiency projects such as the collectivization of forest management operations and the brokerage and provision of forestry labor;

g. Forest protection projects including the prevention and control of, and recovery from, disasters such as forest pests and diseases, landslides, and forest fires;

h. Design and supervision of projects provided in items b through e and item g;

4. Credit services for members:

a. Acceptance of members' deposits and installment savings;

b. Loans of funds necessary for members;

c. Domestic exchange services;

d. Custodial services, including safekeeping of securities, precious metals, and important articles for members;

e. Business agency services for public entities such as the State and local governments, and financial companies;

5. Management and operation of forestry funds, etc., and the raising and operation of its own funds;

6. Mutual aid business;

7. Welfare and benefits business:

a. Installation and management of welfare facilities;

b. Funeral and burial services, including the creation and management of park cemeteries, natural burial forests, and columbaria, as well as the management of private cemeteries;

7-2. Projects related to the forestry sector among renewable energy power generation projects under subparagraph 2 of Article 2 of the Act on the Promotion of the Development, Use and Diffusion of New and Renewable Energy;

8. Exchange and cooperation with other economic, social, and cultural organizations;

9. Projects entrusted by the State, public organizations, NFCF, or other cooperatives;

10. Projects prescribed as a project of a regional cooperative by other statutes or regulations;

11. Ancillary projects related to the projects set forth in subparagraphs 1 through 7, subparagraph 7-2, and subparagraphs 8 through 10;

12. Other projects necessary for achieving the purposes of establishment that have obtained the approval of the Mayor/Do Governor.

(2) A specialized cooperative shall carry out all or part of the following projects to achieve its purposes: <Amended on Feb. 18, 2020; Mar. 24, 2020>

1. Technical guidance for production management:

a. Consulting and education and training to increase productivity and improve management capabilities;

b. Collection and provision of information necessary for the members of the cooperative;

c. Operation of demonstration plots, nurseries, and research institutes for the development and dissemination of new varieties and the diffusion of related technologies;

d. Other education and public relations related to the performance of such business;

2. Economic business:

a. Business activities involving the purchase, manufacture, processing, and supply of materials necessary for the business and daily lives of cooperative members;

b. Businesses involving the manufacture, processing, sale, and export of forest products produced by members;

c. Distribution control and stockpiling of forest products produced by members;

d. Installation and operation of shared facilities necessary for members' business or daily life, and equipment rental services;

e. Solicitation and provision of labor;

f. Storage services;

3. Operation of welfare facilities for cooperative members;

4. Exchange and cooperation with other economic, social, and cultural organizations;

5. Projects entrusted by the state, public organizations, NFCF, or other cooperatives or cooperative members;

6. Business prescribed as the business of specialized cooperatives under other statutes and regulations;

7. Ancillary projects related to the projects set forth in subparagraphs 1 through 6;

8. Other projects necessary for achieving the purposes of establishment that have obtained the approval of the Mayor/Do Governor.

(3) A cooperative may, as prescribed by its articles of incorporation, establish and operate a business-loss compensation fund and a bad-debt compensation fund to carry out the projects under paragraph (1) or (2).

(4) A cooperative shall enter into an entrustment contract with the relevant institution in order to receive the entrustment of a project under paragraph (1)9 or paragraph (2)5.

[This Article Wholly Amended on Apr. 5, 2013]

Article 86-10(Applicable provisions) #

(1) The provisions of Articles 13(3),17,20 through 23, 25 through 31,31-2 through 31-6,33,37,41 through 43,53,55-2,56-2,56-3(1) and (2), 56-4,56-5 (excluding subparagraph 2), 57 through 60,67 through 79, and 81 through 86 shall apply mutatis mutandis to cooperative joint-business corporations. In such cases, "cooperative" shall be construed as "cooperative joint-business corporation," "president of a cooperative" as "representative director," "member" as "member," and "Mayor/Do Governor" as "Administrator of the Korea Forest Service." In Article 25(2), the phrase "the proxy shall be a member or a family member living together with the member (in the case of a juristic person, it means its constituent members), and each proxy may represent only one member" shall be deemed "the proxy shall be a member, and may represent members in proportion to the number of voting rights held by the member"; in the main clause of Article 31(4), the phrase "a majority of the members present and a majority of votes of the members present" shall be deemed "attendance of members holding a majority of the total voting rights and approval by a majority of votes of the members present"; in the proviso of that paragraph, the phrase "attendance of a majority of the members and approval by at least two-thirds of the members present" shall be deemed "attendance of members holding a majority of the total voting rights and approval by at least two-thirds of the votes of the members present"; in Article 31(5) 2 and Article 31-2(1)1, the phrase "dissolution or division" shall be deemed "dissolution"; in the proviso of Article 31-5(1), the phrase "attendance of a majority of the members and approval by at least two-thirds of the members present" shall be deemed "attendance of members holding a majority of the total voting rights and approval by at least two-thirds of the votes of the members present"; in Article 31-6(2), the phrase "three persons" shall be deemed "two persons"; in Article 41(3), the phrase "another cooperative" shall be deemed "another cooperative joint-business corporation"; and in Article 56-3(2), the phrase "statutory reserve funds and carry-forward funds" shall be deemed "statutory reserve funds." <Amended on Feb. 18, 2020>

(2) The provisions of Articles 60-2 through 60-6 shall apply mutatis mutandis to preferred equity contributions of a cooperative joint-business corporation. In such cases, "cooperative" shall be construed as "cooperative joint-business corporation," and "member of a cooperative" as "member," and in Article 60-2(2), the citation "Article 20(3)" shall be construed as "Article 20(3) as applied mutatis mutandis pursuant to Article 86-10(1)".

[This Article Wholly Amended on Apr. 5, 2013]

Article 101(Duties of president) #

(1) The president shall represent the NFCF; provided, this shall not apply to affairs represented by the business representative director under Article 102(1). <Amended on Mar. 24, 2020>

(2) The president shall be the chair of the general meeting, the council of delegates, and the board of directors.

(3) The president shall handle the following affairs; provided, in accordance with the articles of incorporation, the affairs under subparagraphs 1,4,5, and 8 shall be delegated to the business representative director under Article 100 with full authority to make final decisions, and the affairs under subparagraphs 2 and 6 shall be delegated to the chairperson of the cooperative audit committee under Article 118 with full authority to make final decisions: <Amended on Mar. 24, 2020>

1. The businesses under subparagraph 1 of Article 108(1)1a through g, j, and k, and ancillary businesses thereto;

2. The audit of members under Article 108(1)1h, and ancillary businesses thereto;

3. Business and external activities pursuant to Article 108(1)1i;

4. Business under Article 108(1)7,8, and 10, and, among the businesses under paragraph (2) of that Article, business relating to subparagraph 1;

5. Formulation of management objectives, business plans, and financing plans relating to the affairs under subparagraphs 1 and 4;

6. Formulation of management objectives, business plans, and financing plans relating to the affairs under subparagraph 2;

7. Formulation of business plans and financing plans relating to the affairs under subparagraph 3;

8. Guidance of the NFCF pursuant to Article 117;

9. Matters delegated by the general meeting and board of directors;

10. Other affairs not included in the affairs of the business representative director.

(4) Where the president is unable to perform duties due to a vacancy, detention, or continuous hospitalization for at least 30 days in a medical institution under the Medical Service Act, the business representative director shall act for the president. <Amended on Mar. 24, 2020>

[This Article Wholly Amended on Apr. 5, 2013]

Article 108(Business) #

(1) The NFCF shall conduct the following projects to achieve its purposes: <Amended on Dec. 27, 2016; Dec. 11, 2018; Mar. 24, 2020>

1. Education and support programs:

a. Organizational and management guidance for members;

b. Education, training, and provision of information for cooperative members and employees of members;

c. Surveys, research, and public relations regarding the business of members and their cooperative members;

d. Projects for building information networks, and providing IT education and dissemination, and other initiatives to improve the business and living conditions of members and their cooperative members;

e. Grant of subsidies to members, their cooperative members, and employees;

f. Operation of research institutes and pilot projects for the research and development of new forestry-related technologies and varieties;

g. Planning, design, and supervision for the projects of members and of the NFCF;

h. Audits of members;

i. Projects for the promotion of the rights and interests of members and their cooperative members;

j. Establishment and operation of lifelong education facilities in accordance with the Lifelong Education Act;

k. Management and operation of name usage fees pursuant to Article 114-2;

2. Forestry economic projects:

a. Purchasing, storage, utilization, and sales for the NFCF and its members and their cooperative members; facility development and joint ventures; and business agency services;

b. Development and supply of drinking water using groundwater from forests;

c. Cultivation, improvement, and supply of various fungi for forestry use;

d. Pathological treatment and surgical procedures for trees, landscaping projects;

e. Export and import of forest products and other forestry-related equipment;

f. Storage services;

g. Forest management structural improvement projects;

h. Surveys, design, and supervision for related projects such as forest roads, erosion control, restoration of mountainous areas, and other forest civil engineering projects;

i. Survey, design, and supervision for projects related to mountain village development, arboretums, forest welfare facilities, and forest environments;

j. Survey, design, and supervision of forestry projects such as afforestation, forest tending, and pest and disease control;

k. Forestry safety inspection, measurement and monitoring, and maintenance;

l. Other projects for forest resource surveys, establishment and utilization of forest spatial information systems, etc.;

3. Credit services for members:

a. Loans for members' credit funds and business funds;

b. Funding for the NFCF's operational divisions;

c. Receipt of deposits from members;

d. Safekeeping services for domestic exchange and for members;

e. Business agency services for public entities such as the State and local governments, and financial companies;

4. Operation and management of members' repayment reserve funds and surplus funds as prescribed by Presidential Decree;

5. Mutual aid business;

6. Establishment and operation of the Forest Resource Development Fund;

6-2. Projects related to the forestry sector among renewable energy power generation projects under subparagraph 2 of Article 2 of the Act on the Promotion of the Development, Use and Diffusion of New and Renewable Energy;

6-3. Forestry information technology services and system construction project;

6-4. Academic and research services in the forestry sector;

7. Projects commissioned or subsidized by the State or public entities;

8. Projects prescribed as a project of the NFCF by other statutes or regulations;

9. Ancillary projects related to the projects referred to in subparagraphs 1 through 6, 6-2 through 6-4, 7 and 8;

10. Other projects necessary to achieve the purpose of establishment and approved by the Administrator of the Korea Forest Service.

(2) The NFCF may conduct the projects under the subparagraphs of Article 46(1), except subparagraph 4, to the extent that such projects do not directly compete with the projects of its members. In such cases, projects carried out by the State or public entities shall not be deemed to compete with the projects of the members.

(3) The NFCF may perform the following acts to carry out the projects under paragraph (1):

1. To manage funds by borrowing from the State, public entities, the Bank of Korea, or other financial institutions, or to deposit funds with the Bank of Korea or other financial institutions;

2. To encourage persons prescribed by Presidential Decree to provide funds or goods for the business of the NFCF by way of donations or investments;

3. To develop overseas forest resources, borrow funds from international organizations, foreign governments, or foreigners, and introduce goods and technologies therefrom;

4. To establish and manage business loss reserve funds, bad-debt reserve funds, mutual support funds for cooperatives, and merger support funds for cooperatives, as prescribed by the articles of incorporation.

[This Article Wholly Amended on Apr. 5, 2013]

Article 126(Management guidance) #

(1) Where the Administrator of the Korea Forest Service or the Mayor/Do Governor deems that any cooperative, etc. falls under any of the following subparagraphs and that there is concern that it may hinder the protection of members, he or she shall provide guidance on management to such cooperatives, etc.: <Amended on Feb. 18, 2020; Mar. 24, 2020>

1. Where, as the result of an audit of a cooperative, the aggregate amount of its non-performing loans exceeds twice its equity capital and is deemed difficult to recover within a short period by ordinary means, thereby raising concern that its entire equity capital will be impaired;

2. Where, due to illegal or improper acts by the executive officers or employees of cooperatives, etc., the cooperative has suffered property loss and it is deemed difficult to restore normal management by itself;

3. Where the risk of bankruptcy of a cooperative is significant, or, due to unlawful or improper acts by its officers or employees, withdrawals of deposits and installment savings surge, or the cooperative has fallen into a state where it cannot honor payment of such deposits and installment savings;

4. Where, based on the results of the management evaluation under Article 117(2) or the audit under Article 121, the president recommends that management guidance is necessary;

5. Where, based on the results of an inspection under Article 83 of the Credit Unions Act, as applied to the cooperative pursuant to Article 95 of that Act, the Governor of the Financial Supervisory Service recommends that management guidance is necessary.

(2) "Management guidance" under paragraph (1) means providing guidance with respect to the following matters:

1. Collection of illegal and non-performing loans and securing claims therefor;

2. Matters concerning funds management and credit/lending and deposit-taking operations;

3. Other matters concerning the management of cooperatives, etc., as prescribed by Presidential Decree.

(3) When management guidance under paragraph (1) has commenced, the Administrator of the Korea Forest Service or the Mayor/Do Governor may, for a period not exceeding 6 months, suspend the payment of debts or order the suspension from duties of executive officers. In such cases, he or she may require the president to promptly investigate the asset status of the cooperatives, etc. (hereinafter referred to as the "asset status investigation"), or may request the Governor of the Financial Supervisory Service to conduct the asset status investigation. <Amended on Feb. 18, 2020; Mar. 24, 2020>

(4) Based on the results of the asset status investigation, the president or the Governor of the Financial Supervisory Service shall take necessary measures, such as conducting inquiries into assets and filing for provisional attachment, to secure compensation for losses from executive officers or employees who have caused losses to a cooperative, etc. by unlawful or improper acts. <Amended on Mar. 24, 2020>

(5) The Administrator of the Korea Forest Service or the Mayor/Do Governor may request from the heads of central administrative agencies the materials necessary for the measures under paragraph (4). In such cases, the heads of the relevant central administrative agencies shall comply with the request unless there is a special reason not to do so. <Amended on Feb. 18, 2020>

(6) Where, based on the results of the asset status investigation, there exist special grounds, such as where the relevant cooperatives, etc. are capable of normalizing its management, the Administrator of the Korea Forest Service or the Mayor/Do Governor shall withdraw all or part of the suspension of payment of debts or the suspension from duties of executive officers under the former part of paragraph (3). <Amended on Feb. 18, 2020; Mar. 24, 2020>

(7) The Administrator of the Korea Forest Service or the Mayor/Do Governor may entrust the affairs relating to management guidance under paragraph (1) to the president. <Amended on Feb. 18, 2020>

(8) Matters necessary for the methods, periods, and procedures for management guidance, suspension of payment of debts, or suspension from duties of executive officers under paragraphs (1) through (3) shall be prescribed by Presidential Decree.

[This Article Wholly Amended on Apr. 5, 2013]

Article 133(Invalidation of election due to election crimes) #

(1) Where any of the following cases occurs in connection with the election of executive officers of a cooperative or of the NFCF, the election of the relevant person shall be invalidated: <Amended on Mar. 24, 2020>

1. Where the person elected, in connection with the relevant election, commits an offence specified in Article 132 and is sentenced to imprisonment with labor or to a fine of not less than 1 million won;

2. Where any lineal ascendant or descendant of the person elected, or the spouse of the person elected, in connection with the relevant election, violates Article 40 (1) or Article 40-2 and is sentenced to imprisonment with labor or to a fine of not less than 3 million won; provided, this shall not apply where such offense is committed upon another person's inducement or provocation for the purpose of rendering the election of the person elected null and void.

(2) Any person who falls under any of the following subparagraphs shall not be eligible to be a candidate in a re-election conducted due to the nullification of a winning candidate's election (including by-elections held when the winning candidate resigns before a final verdict is rendered after indictment): <Amended Jun. 11, 2014>

1. A person whose election has been invalidated under paragraph (1)2 or subparagraph 2 of Article 70 (Invalidation of election result due to entrusted election crimes) of the Act on Elections Entrusted by Public Organizations (including a person who resigns after being indicted but before the judgment becomes final and conclusive);

2. A person who was not elected (including a person who intended to become a candidate) who has a conviction finalized for invalidation of election due to the offense of the direct ascendants, descendants, or spouse of the winning candidate, under paragraph (1)2 or Article 70 (Invalidation of election results due to entrusted election crimes) of the Act on Elections Entrusted by Public Organizations.

[This Article Wholly Amended on Apr. 5, 2013]

FORESTRY COOPERATIVES ACT

Article 1(Purpose) #

Article 2(Definitions) #

(Name)

Article 4(Legal personality) #

Article 5(Principle of maximum service) #

Article 6(Responsibilities of NFCF) #

Article 7(Prohibition on involvement in elections for public office) #

Article 8(Exemption from levies) #

Article 9(Cooperation of the State and public organizations) #

Article 10(Cooperation with other cooperatives) #

Article 11(Relationship to other statutes) #

Article 11-2(Relationship with the Act on Facilitation of Purchase of Small and Medium Enterprise-Manufactured Products and Support for Development of Their Markets) #

Article 12(Purpose) #

Article 13(Districts and offices) #

Article 14(Authorization for establishment) #

Article 15(Matters to be included in the articles of incorporation) #

Article 16(Model articles of incorporation) #

Article 17(Establishment of cooperatives) #

Article 18(Qualifications of members) #

Article 19(Associate members) #

Article 20(Members' contributions and responsibilities) #

Article 21(Revolving contributions) #

Article 22(Transfer and acquisition of equity interests, and prohibition of co-ownership) #

Article 23(Imposition of expenses and administrative fines) #

Article 24(Voting rights and election rights) #

Article 25(Voting by proxy) #

Article 26(Membership admission and withdrawal) #

Article 27(Expulsion) #

Article 28(Right to claim refund of equity interests and suspension of refund) #

Article 29(Liability for losses of withdrawing members) #

Article 30(Request for revocation of resolution) #

Article 31(General meeting) #

Article 31-2(Special cases concerning general meeting resolutions) #

Article 31-3(Request for convening a general meeting) #

Article 31-4(Notice and demand to members) #

Article 31-5(Restrictions on voting rights) #

Article 31-6(Minutes of general meeting) #

Article 32(Council of delegates) #

Article 33(Board of directors) #

Article 34(Composition and operation of the operational evaluation advisory council) #

Article 35(Number of executive officers and election) #

Article 36(Duties of executive officers) #

Article 37(Power of representation of auditors) #

Article 38(Term of office of executive officers) #

Article 39(Grounds for disqualification of executive officers) #

Article 39-2(Separate sentence of punishment) #

Article 40(Restrictions on electioneering) #

Article 40-2(Restrictions on donations) #

Article 40-3(Composition and operation of the cooperative election management committee) #

Article 41(Prohibition of concurrently holding office by executive officers and employees) #

Article 42(Duty and responsibilities of executive officers) #

Article 43(Dismissal of executive officers) #

Article 44(Application mutatis mutandis of the Civil Act and the Commercial Act) #

Article 45(Appointment and dismissal of employees) #

Article 46(Business) #

Article 47(Raising and operation of distribution support funds) #

Article 48(Regulations of mutual aid) #

Article 49(Borrowing and its operation) #

Article 50(Profit sharing agreement) #

Article 51(Use of business by non-members) #

Article 52(Equity investment in other corporations) #

Article 53(Fiscal year) #

Article 54(Classification of accounts) #

Article 55(Business plan and income and expenditure budget) #

Article 55-2(Disclosure of operations) #

Article 56(Operation of surplus funds) #

Article 56-2(Statutory reserve, carryover, and discretionary reserves) #

Article 56-3(Compensation for losses and distribution of surplus) #

Article 56-4(Reserve for profits) #

Article 56-5(Prohibition on use of statutory reserve) #

Article 57(Submission and keeping of financial statements) #

Article 58(Resolution on reduction of contributions) #

Article 59(Creditors' objections to reduction of contributions) #

Article 60(Prohibition on acquisition of members' equity interests by the cooperative) #

Article 60-2(Preferred capital contribution) #

Article 60-3(Issuance of preferred capital contribution certificates) #

Article 60-4(Transfer of preferred capital contributions) #

Article 60-5(General meeting of preferred capital contributors) #

Article 60-6(Other matters concerning preferred capital contribution) #