Article 1(Purpose) #
The purpose of this Decree is to prescribe matters delegated by the Act on the Improvement of Managerial Structure and Privatization of Public Enterprises and matters necessary for enforcing the matters.
Article 2(Organization and operation of committee on recommendation of president) #
(1) Lots shall be drawn to appoint members of the committee on recommending the president (hereinafter referred to as "Committee") pursuant to Article 11 of the Act on the Improvement of Managerial Structure and Privatization of Public Enterprises (hereinafter referred to as the "Act"), who are non-standing directors.
(2) When members are all appointed, the chairperson shall call a meeting of the Committee without delay.
(3) In addition to the matters prescribed by the Act and this Decree, matters necessary for organizing, operating etc. the Committee shall be specified by articles of incorporation of the enterprises prescribed in the subparagraphs of Article 2 of the Act (hereinafter referred to as "designated corporation").
Article 3(Examination of presidential candidates) #
(1) Designated corporations may request specialized organizations to inquire into the work experience, etc. of presidential candidates who are invited by public notice or have been inquired into pursuant to Article 12(2) of the Act.
(2) The guidelines for examining presidential candidates prescribed in Article 12(3) of the Act shall include the following matters. In such cases, the guidelines shall not discriminate between citizens and foreigners:
1. An element by which knowledge in management and economics can be objectively evaluated, such as work experience, academic degree, etc.;
2. An element by which management experience can be objectively evaluated, such as past management results, management period, etc.;
3. An element by which candidates' qualifications and competence as a chief executive officer can be evaluated.
Article 4(Business goals) #
(1) The business objectives prescribed in Article 12(4) of the Act shall be set by classifying them into a long-term goal and a short-term goal with regard to increasing sales, increasing profits and decreasing losses, investment plans, other improvement in the management, etc. In such cases, where providing a public service is necessary, a goal thereof may be included in the business goals.
(2) In setting business objectives pursuant to paragraph (1), the part that can be expressed numerically shall be set with figures.
Article 5(Evaluation as to whether president fulfills agreements) #
(1) Any evaluation on whether the president fulfills the agreement concluded under Article 13(2) of the Act may be conducted by the board of directors based on year-end closing of accounts; or may be entrusted to a specialized organization; provided, where the board of directors deems necessary, it may conduct an evaluation even midway through a business year.
(2) The board of directors shall report the findings from evaluation conducted under paragraph (1) to the general meeting of shareholders.
Article 6(Organization of council of shareholders) #
"In cases prescribed by Presidential Decree" prescribed in Article 14(1) of the Act shall mean cases where the number of nongovernmental shareholders, excluding the Government, government-invested institutions, the Korea Development Bank established pursuant to the Korea Development Bank Act (hereinafter referred to as "Government, etc.") and the employee stock ownership association stands at least 1,000 and the total shares held accounts for at least 20/100 of the total number of issued shares with voting rights. <Amended on May 29, 2009;
Article 7(Government’s exercise of shareholders’ rights) #
When the competent Minister is notified of convocation of a general meeting of shareholders under Article 16 of the Act, he or she shall, without delay, send a copy of the notice of convocation to the Minister of Economy and Finance, and shall consult with the Minister of Economy and Finance with regard to the exercise of shareholders' rights. <Amended on Feb. 29, 2008; Dec. 30, 2025>
Article 7-2(Exercise of minority shareholders’ rights) #
"Stock market prescribed by Presidential Decree" prescribed in Article 17 of the Act shall mean a securities market prescribed in Article 176-9(1) of the Enforcement Decree of the Financial Investment Services and Capital Markets Act.
[This Article Added on Aug. 27, 2013]
Article 8(Scope of persons with special relationship) #
"Persons who have a special relationship prescribed by Presidential Decree" prescribed in Article 18(1) of the Act shall mean persons falling under any of the subparagraphs of Article 11 of the Enforcement Decree of the Monopoly Regulation and Fair Trade Act.
Article 9(Institutions entrusted with sale of stocks or sales agents) #
"Institution specified by Presidential Decree" prescribed in Article 20(1) of the Act shall mean the following institutions: <Amended on Mar. 28, 2000; Jul. 29, 2008; May 29, 2009; Nov. 15, 2010>
1. Banks prescribed in the Banking Act;
2. The Korea Development Bank established pursuant to the Korea Development Bank Act;
3. The Industrial Bank of Korea established pursuant to the Industrial Bank of Korea Act;
4. Deleted; <25945, Dec.30, 2014>
5. Investment traders and investment brokers prescribed in the Financial Investment Services and Capital Markets Act;
6. A post office prescribed in the Postal Savings and Insurance Act;
7. Designated corporations.