Article 1(Purpose) #
The purpose of this Decree is to prescribe the matters necessary with regard to the enforcement of the National Investment Fund Act (hereinafter referred to as the "Act").
Article 2(Scope of Key Industries) #
(1) The term "other industries determined by the Presidential Decree" as mentioned in subparagraph 1 of Article 2 of the Act means the industries of the following subparagraphs: <Amended by Presidential Decree No. 8863, Feb. 16, 1978; Presidential Decree No. 10976, Dec. 31, 1982; Presidential Decree No. 11193, Aug. 6, 1983; Presidential Decree No. 14438, Dec. 23, 1994>
1. Electrical industry (power generation, power transmission, power distribution), gas generation and supply industries;
2. Mining;
3. Cement manufacturing;
4. Development of manufactured agricultural goods processing (enterprises related with new community factories);
5. Special enterprises for raising the income level of farmers and fishermen;
6. Marine produce propagation and farming and deep-sea and near-sea fisheries; and
7. Technology development or special quality improvement enterprises that are announced by the Minister of Finance and Economy, after consultation with the concerned Ministers.
(2) The term "foodstuff production increase industries" as mentioned in subparagraph 1 of Article 2 of the Act means the industries of the following subparagraphs which contribute to the increase in agricultural and livestock production: <Newly Inserted by Presidential Decree No. 7185, Jun. 28, 1974>
1. Land reclamation, land development, rearrangement of cultivated land, development of agricultural water, development and supplementation of pastures, and other infrastructure development enterprises for agricultural and livestock industries;
2. Production equipment supply enterprises for agricultural and livestock industries;
3. Construction of warehouses for storing outputs of agricultural and livestock industries and production equipment, fertilizers and feeds of agricultural and livestock industries; and
4. Primary processing of agricultural and livestock outputs.
Article 3(Scope of Funds) #
The term "funds determined by the Presidential Decree" as mentioned in Article 8 (1) 4 of the Act means the funds of the following subparagraphs: <Amended by Presidential Decree No. 10976, Dec. 31, 1982; Presidential Decree No. 14628, Apr. 15, 1995>
1. Public officials pension funds created by the Public Officials Pension Act;
2. Veterans' pensions funds created by the Act on the Special Accounts for Veterans' Pensions;
3. Funds created by the Industrial Accident Compensation Insurance Act;
4. Deleted; <by Presidential Decree No. 9399, Mar. 31, 1979>
5. Deleted; <by Presidential Decree No. 16093, Jan. 29, 1999>
6. Funds for Family Planning Institute created by the Family Planning Institute Act;
7. Funds created by the Private School Teachers' Pension Act; and
8. Export insurance funds created by the Export Insurance Act.
Article 4(Method and Procedure of Accepting National Investment Bonds and Depositing Funds) #
Method and procedure of accepting national investment bonds and depositing funds at the National Investment Fund as referred to in Article 8 (2) of the Act shall subject to the following subparagraphs: <Amended by Presidential Decree No. 7977, Feb. 5, 1976; Presidential Decree No. 8578, May 27, 1977; Presidential Decree No. 10976, Dec.31, 1982; Presidential Decree No. 14438, Dec. 23, 1994>
1. Deleted; and <by Presidential Decree No. 12279, Nov. 24, 1987>
2. Institutions responsible for management of the funds referred to in of Article 8 (1) 2 through 7 of the Act shall in principle acquire national investment bonds or make deposits at the National Investment Fund on a monthly basis.
Article 5(Scope of Bond Acceptance and Fund Deposits) #
(1) The scope of national investment bond acceptance and fund deposits to the National Investment Fund as referred to in Article 8 (2) of the Act shall be subject to the following subparagraphs. <Amended by Presidential Decree No. 7977, Feb. 5, 1976; Presidential Decree No. 8578, May 27, 1977; Presidential Decree No. 9221, Dec. 21, 1978; Presidential Decree No. 9399, Mar. 31, 1979; Presidential Decree No. 10976, Dec. 31, 1982; Presidential Decree No. 14438, Dec. 23, 1994>
1. Deleted; <by Presidential Decree No. 12279, Nov. 24, 1987>
2. Funds referred to in Article 8 (1) 2 through 4 of the Act:
Amount corresponding to 80/100 of funds, excluding the funds for achieving the original project purpose of the fund concerned and ordinary payment reserves in cash or deposits with maturity not exceeding 6 months. In such cases, when there are deposits, etc. that fall under any of the subparagraphs of Article 5 (5), the amount from which they have been deducted;
3. Funds created by savings deposits at financial institutions:
Amount determined by the Minister of Finance and Economy within the limit that the net increase each year in the total sum of a financial institution's national investment bond acceptance and deposits at the National Investment Fund (refers to the amount that is the total sum of national investment bond acceptance amount and deposits at the National Investment Fund less the amount of redemption; the same shall apply hereinafter) does not exceed 20/100 (5/100, in the cases of the National Agricultural Cooperatives Federation and its member National Agricultural Cooperatives) of the financial institution's total savings deposit increase;
4. Funds created by non-specified money trusts at trust companies:
Amount calculated so that the net increase each year in a trust company's national investment bond acceptance amount and deposits at the National Investment Fund corresponds to 10/100 of the net increase in the accepted trust amount of non-specified or money trusts; and
5. Funds created by insurance companies' premium revenues:
Amount determined by the Ordinance of the Prime Minister within the limit that the net increase each year in an insurance company's national bond acceptance amount and deposits at the National Investment Fund does not exceed 30/100 of the total amount of insurance premium and other revenues less insurance money paid out and operating expenses. In such cases, when a personal insurance company accepts national investment bonds or has funds deposited at the National Investment Fund under the proviso of subparagraph 1 of Article 4, the amount less such funds.
(2) As for the funds deposited to the National Investment Fund under Article 8 (1) 1 of the Act, interest shall be paid in every interest period on the balance of the deposits by applying the issuing interest rate of the national investment bonds available as of the starting date of the interest period. <Newly Inserted by Presidential Decree No. 8578, May 27, 1977>
(3) As for the funds deposited to the National Investment Fund under Article 8 (1) 2 through 7 of the Act, interest shall be paid by applying the interest rate on national investment bonds referred to in Article 14 of the Act: Provided, That if the deposit period is less than one year (excluding the cases of temporary deposits held for the acquisition of national investment bonds), interest shall be paid as prescribed by the Minister of Finance and Economy, taking into consideration the interest rate on savings deposits applicable for the deposit period . <Amended by Presidential Decree No. 14438, Dec. 23, 1994>
(4) The same as in paragraph (3) shall apply in the cases where the National Investment Fund redeems national investment bonds or returns deposits before maturity due to the financial market conditions and acquiring institutions' financial conditions.
(5) The term "cases determined by the Presidential Decree" as mentioned in Article 8 (1) of the Act means the cases of the following subparagraphs: <Amended by Presidential Decree No. 9221, Dec. 21, 1978; Presidential Decree No. 10448, Aug. 24, 1981; Presidential Decree No. 12454, May 21, 1988; Presidential Decree No. 14438, Dec. 23, 1994; Presidential Decree No. 18146, Nov. 29, 2003>
1. When each accounting unit of the Government receives deposits from the funds set up in the said accounting unit and deposits them to the Special Account for Public Investment and Loans upon consultation with the Minister of Finance and Economy;
2. When the Fisheries Cooperatives Federation and its member Fish eries Cooperatives Association take savings deposit proceeds and use them for project purposes; and
3. When the funds under Article 8 (1) 2 of the Act, funds under subparagraph 1, 2, and 7 of Article 3 of the Act, and funds under Article 85 (1) 4 of the Enforcement Decree of the Housing Act are deposited to the National Housing Fund referred to in the Housing Act.
Article 6(Obligation to Submit Reports) #
In accordance with Article 8 (1) of the Act, institutions required to acquire national investment bonds or make deposits to the National Investment Fund shall prepare balance sheets as of the end of every quarter of the year, monthly funds flow statements, and other documents necessary for national investment bonds acquisition and fund depositing and submit them to the Minister of Finance and Economy before the 15th of the following month. <Amended by Presidential Decree No. 14438, Dec. 23, 1994>
Article 7 #
Deleted.<by Presidential Decree No. 15761, Apr. 1, 1998>
Article 8(Scope of Lands Purchasable with National Investment Bonds) #
The term "forests or idle lands pursuant to the Presidential Decree" in Article 9 (1) of the Act means the lands of the following subparagraphs:
1. Forests:
Actual forests as well as publicly-registered ones that are not directly connected with the maintenance of livelihood or business of land owners shall be included; and
2. Idle lands:
It refers to lands that are not directly connected with the maintenance of livelihood or business of land owners: Provided, That lands arranged for housing shall be excluded.
Article 9(Limit on Payment with National Investment Bonds for Land Purchase) #
The limit on payment of land purchase price with national investment bonds under Article 9 (1) of the Act, when the payment exceeds one million won per land purchaser, shall be within 80/100 of the amount in excess.
Article 10(Transfer of National Investment Bonds for Land Purchase) #
(1) Project proprietors shall transfer the national investment bonds concerned to land owners in accordance with the resolution of the Operating Committee of the National Investment Fund referred to in Article 7.
(2) Project proprietors may delegate the responsibilities concerning the transfer of national investment bonds under paragraph (1) to the Bank of Korea.
Article 11(Delivery and Settlement of Funds between National Investment Fund and Project Proprietors) #
(1) When project proprietors intend to purchase any land with national investment bonds as prescribed in Article 9 (1) of the Act, they shall submit an application form that specifies the purpose of purchase, amount of national investment bonds under ownership, financing period, and other necessary matters to the Minister of Finance and Economy. <Amended by Presidential Decree No. 14438, Dec. 23, 1994>
(2) The documents of the following subparagraphs shall be attached to the application form under paragraph (1):
1. Business plan;
2. Repayment plan;
3. Written plan for purchase amount payment per each land owner; and
4. Other documents as reference for financing.
(3) Upon receiving the application form under paragraph (1), the Minister of Finance and Economy shall transfer the necessary national investment bonds to project proprietors after evaluating the relevance of the said land purchase, necessity for financing and, etc. <Amended by Presidential Decree No. 14438, Dec. 23, 1994>
(4) When project proprietors have received the transfer of national investment bonds as prescribed in paragraph (3), it shall be regarded that the project proprietors have borrowed the funds equivalent in amount to the issuing amount from the National Investment Fund as of the date of the transfer; such loan shall be repaid in cash except for the cases of the recall referred to in paragraph (6).
(5) The Minister of Finance and Economy may attach certain necessary conditions, when he transfers national investment bonds as prescribed in paragraph (3). <Amended by Presidential Decree No. 14438, Dec. 23, 1994>
(6) The Minister of Finance and Economy may recall the national investment bonds that have been transferred under paragraph (3) from the project proprietors in the cases falling under the following subparagraphs: <Amended by Presidential Decree No. 14438, Dec. 23, 1994>
1. When project proprietors have used the national investment bonds for a purpose other than the purpose of borrowing or used them illegally or unjustly; and
2. When the use of the national investment bonds concerned is prevented, or it is clear that their use will be delayed severely due to natural disasters or force majeure.
(7) When revenues have been generated in connection to the land concerned due to disposal of the purchased land and such, project proprietors shall immediately repay the loan under paragraph (4) ahead of other repayment obligations with the revenues, notwithstanding the repayment period.
Article 12(Designation of Stocks or Debentures) #
(1) When the Minister of Finance and Economy designates stocks or debentures as prescribed in Article 10 (1) and (2) of the Act, the matters of the following subparagraphs shall be included and made clear in the stock sales announcement in the case of Article 10 (1) of the Act or notified to the issuing company in the case of Article 10 (2) of the Act: <Amended by Presidential Decree No. 14438, Dec. 23, 1994>
1. Issuing company of stocks or debentures to be sold or floated;
2. Backgrounds for allowing the payment of purchase or acquisition with national investment bonds and national investment bonds available for the purpose; and
3. Contents of special measures regarding alloted quantity and acceptance price referred to in Article 12 of the Act.
(2) In the case under Article 10 (2) of the Act, the notice under paragraph (1) shall be made before the date of effectiveness referred to in Article 5 of the said Act, with regard to the stocks or debentures for which the securities report has to be submitted under Article 4 of the Securities and Exchange Act.
(3) When the Minister of Finance and Economy intends to designate stocks pursuant to Article 10 (1) of the Act, he shall include the matters of each subparagraph of paragraph (1) and obtain approval of the President upon passing through the review by the State Council. <Amended by Presidential Decree No. 14438, on Dec. 23, 1994>
(4) Juristic persons that are inviting subscription to the stocks or debentures that have been designated under Article 10 (2) of the Act, organizers or underwriters of the invitation (referring to the underwriters referred to in Article 2 (7) of the Securities and Exchange Act) shall make clear in the invitation announcement all matters of each subparagraph of paragraph (1).
(5) When the Minister of Finance and Economy designates the stocks or debentures under the conditions as prescribed in Article 10 (1) and (2) of the Act, he shall make designations limited to only such stocks or debentures as issued by juristic persons which are judged sound enough in terms of capital, financial conditions, business prospects, ability to pay interest or dividends. <Amended by Presidential Decree No. 14438, Dec. 23, 1994>
Article 13(National Investment Bonds Eligible as Payment for Purchase or Acquiring Prices of Stocks or Debentures) #
(1) National investment bonds eligible to become payment for purchase or acquiring prices of stocks or debentures under Article 10 (1) and (2) of the Act shall be limited to those with maturity longer than three years and issuance completed more than two years ago, with the exception of the national investment bonds acquired by the members of the National Savings Union as savings organized the National Savings Union or the national investment bonds acquired with stamp and paper proceeds under the provisions of Article 9 (1) of the Act.
(2) When the purchase or acquiring price under paragraph (1) is being paid, amount of money less than 10 thousand won shall be paid in cash.
(3) When the purchase of acquiring price under paragraph (1) is being paid with national investment bonds, the margins or security deposits being paid in connection with the purchase or acquiring may be paid also with national investment bonds.
Article 14(Procedure for Redemption) #
(1) When the juristic persons that have received a payment in national investment bonds or the financial institutions that have received repayment of a loan with national investment bonds under the provisions of Article 10 (3) and (4) of the Act intend to request redemption of the national investment bonds from the National Investment Fund, they shall submit the application for redemption of national investment bonds accompanied by details of the national investment bonds received and the national investment bonds themselves (in the case of registered national investment bonds, including documents necessary for the change of register) to the Minister of Finance and Economy as prescribed by the Ordinance of the Prime Minister. <Amended by Presidential Decree No. 14438, Dec. 23, 1994>
(2) When juristic persons and financial institutions as mentioned in paragraph (1) intend to repay the loans from other financial institutions or repay the appropriations from the National Investment Fund with their national investment bonds, they shall submit the statement of loan repayment, accompanied by details of the national investment bonds received and the national investment bonds themselves (in the case of registered national investment bonds, including documents necessary for the change of register) to the related financial institutions or the Minister of Finance and Economy. <Amended by Presidential Decree No. 14438, Dec. 23, 1994>
(3) In cases of paragraphs (1) and (2), the prices of national investment bonds shall be calculated on the basis of the date of request or statement.
Article 15(Calculation Method of Prices of National Investment Bonds) #
When holders of national investment bonds are paying the purchase or acquiring prices of stocks or debentures under the provisions of Articles 10 (1) and (2) of the Act, the prices of the national investment bonds shall be calculated using the methods of the following subparagraphs:
1. If interest is paid regularly or in arrears after the bond is issued either at par or above or below par, the accrued but not paid interest shall be added to the face value of the bond; and
2. If bonds are issued at a discount, the pre-received part of the discount amount as of the date of the payment shall be deducted from the face value.
Article 16(Priority Allotment for Purchase or Acquisition) #
(1) The term "those determined by the Presidential Decree" as mentioned in Article 12 (1) of the Act means those who have acquired national investment bonds as the land sale proceeds under the provisions of Article 9 (1) of the Act.
(2) The quantity of the stocks or debentures that the Government or juristic persons operating in the key industries shall allocate with priority to members of the National Savings Union or those who acquired national investment bonds of paragraph (1) under the provisions of Article 12 (1) of the Act shall be as determined in the following subparagraphs: Provided, That if the total issuance quantity of stocks or debentures in one round is less than the priority allotment quantity, the actual allotment quantity shall be determined by dividing the total quantity of stocks or debentures being offered or floated in that round by the quantity that purchasers or subscribers are to receive in priority allotment:
1. In case of stocks with face value of 500 won, 200 shares per each applicant, for stocks with face value over 500 won, 200 shares divided by the number of 500 won in the face value; and
2. In case of debentures, face value of 100 thousand won.
Article 17(Special Cases of Acquiring Prices of Stocks or Debentures) #
(1) When the juristic persons that have been loaned appropriations from the National Investment Fund issue stocks or debentures above par value, the acquisition price for the quantity that the acquirers of national investment bonds acquire with priority under the provisions of Article 12 (1) shall be the amount that is the sum of the face value and 50/100 of the difference between the issuing price and face value.
(2) If the total face value of the stocks or debentures to which the provisions of paragraph (1) apply is greater than the balance of the appropriations, at the time of floating, that the juristic persons have been loaned by the National Investment Fund, each subscriber shall determine the acquisition quantity to which the acquisition price referred to in paragraph (1) apply by using the ratio of the balance of the loaned appropriations at the time of floating to the total face value of the stocks and debentures to be alloted with priority.
Article 18(Attachment of Documents) #
(1) Those who intend to be alloted stocks or debentures with priority or acquire them at a favorable price under Article 12 shall attach the documents of the following subparagraphs to the application form:
1. For members of the National Savings Union, an official document in which the head of the applicable savings union verifies that the national investment bonds have been acquired as savings organized by the National Savings Union; and
2. For those who have acquired the national investment bonds as proceeds from a land sale, an official document in which the project proprietor who purchased the applicable land verifies the fact.
(2) In the documents under each subparagraph of paragraph (1), the balance of national investment bonds held shall be clearly mentioned which is the total amount of the national investment bonds acquired as savings arranged by the National Savings Union or proceeds from a land sale less the total amount of the national investment bonds already delivered as the purchase price or acquisition price for stocks or debentures.
Article 19(Usage of National Investment Fund) #
The term "financing for other purposes determined by the Presidential Decree" in Article 16 (4) 5 means the financing under the following subparagraphs:
1. Financing required for the purchase concerned by the purchaser of industrial facilities (refer to machinery, equipment, ships, vehicles, installations, parts and components) produced by those operating in the key industries; and
2. Financing required for long-term safe stock of basic raw materials.
Article 20 #
Deleted.<by Presidential Decree No. 15761, Apr. 1, 1998>
Article 21 #
Deleted.<by Presidential Decree No. 15761, Apr. 1, 1998>
Article 22 #
Deleted.<by Presidential Decree No. 15761, Apr. 1, 1998>
Article 23(Opening of Account for National Investment Fund) #
The Minister of Finance and Economy shall open the National Investment Fund Account at the Bank of Korea, in order to clarify the receipts and disbursements of the National Investment Fund. <Amended by Presidential Decree No. 14438, Dec. 23, 1994>
Article 24(Fiscal Year of National Investment Fund) #
The fiscal year of the National Investment Fund shall be from January 1 to December 31 of each year.
Article 25(Appointment and Dismissal of Accounting Organs) #
(1) The Minister of Finance and Economy may establish alternate or shared-duty accounting units in order to have them carry out vicariously all or part of the duties of the National Investment Fund Account Officer in Command (including the Assistant Vice Governor in charge of the National Investment Fund Account; hereinafter the same shall apply) and the National Investment Fund Accounting Officials (including the National Investment Fund Accounting Officers; hereinafter the same shall apply) referred to in Article 20 of the Act, or have them share a part of the duties. <Amended by Presidential Decree No. 14438, Dec. 23, 1994; Presidential Decree No. 15761, Apr. 1, 1998>
(2) When the Minister of Finance and Economy appoints or dismisses the National Investment Fund Account Officer in Command, he shall give a notice to the Board of Audit and Inspection, and when he appoints or dismisses the National Investment Fund Accounting Officials, the notice shall be given to the Board of Audit and Inspection and the Bank of Korea. The same applies to the appointment and dismissal of the alternate or sharedduty accounting units. <Amended by Presidential Decree No. 14438, Dec. 23, 1994>
Article 26(Responsibilities of Accounting Personnel) #
(1) The National Investment Fund Account Officer in Command shall take charge of the responsibilities related to the contracts following employment of the National Investment Fund, other acts that are a cause of disbursements, and decisions for collection of revenues of the National Investment Fund.
(2) The National Investment Fund Accounting Officials shall take charge of the revenueand expenserelated duties following employment of the National Investment Fund and duties of receipt and disbursement of money in custody and securities.
Article 27(Application for Required Financing and Submission of Documents) #
(1) The heads of the central government agencies and financial institutions that oversee the key industries shall submit the application for required financing that need to be reflected in the employment plan of the National Investment Fund of the next year to the Minister of Finance and Economy by June 30 of each year. <Amended by Presidential Decree No. 14438, Dec. 23, 1994>
(2) The Minister of Finance and Economy may request submission of the materials necessary for preparation of plans for sources and uses of the National Investment Fund from the heads of the central government agencies and financial institutions that oversee the key industries. <Amended by Presidential Decree No. 14438, Dec. 23, 1994>
Article 28(Receipts Procedure of National Investment Fund) #
Only the National Investment Fund Accounting Officials may process receipts of the National Investment Fund: Provided, That this shall not apply, when receipts are handled by the Bank of Korea.
Article 29(Disbursements Procedure of National Investment Fund) #
(1) When the National Investment Fund Account Officer in Command intends to disburse funds from the National Investment Fund, he shall forward the documents relating to the disbursement causing act to the National Investment Fund Accounting Officials.
(2) When the National Investment Fund Accounting Officials intend to disburse funds from the National Investment Fund, due to the disbursement causing act pursuant to paragraph (1), they shall in principle issue the checks with the Bank of Korea as the payer.
Article 30(Settlement) #
The report of settlement of accounts, referred to in Article 25 of the Act shall be accompanied by the documents under the following subparagraphs: <Amended by Presidential Decree No. 8863, Feb. 16, 1978>
1. Balance sheet;
2. Income statement;
3. Statement on disposal of surplus; and
4. Affiliated documents.
Article 31(Enforcement Decree) #
Necessary matters for the enforcement of this Decree shall be determined by the Ordinance of the Prime Minister. <Amended by Presidential Decree No. 14438, Dec. 23, 1994>