Article 1(Purpose) #
The purpose of this Decree is to prescribe matters delegated by the Presidential Financial and Economic Emergency Order on Real Name Financial Transactions and Guarantee of Secrecy (hereinafter referred to as the “Order”) and matters necessary for the enforcement thereof.
Article 2(Definitions) #
(1) The definitions of terms used in this Decree shall correspond to those as prescribed in the Order, if not otherwise provided in this Decree.
(2) The term “financial institutions pursuant to the Banking Act” in subparagraph 1 (a) of Article 2 of the Order means financial institutions as provided in each following subparagraph:
1. Financial institutions which are established with the approval as prescribed by the Banking Act;
2. Korea Development Bank;
3. Export-Import Bank of Korea;
4. Long-Term Credit Bank pursuant to the Long-Term Credit Bank Act;
5. Industrial Bank;
6. Korea Housing and Commercial Bank; and
7. Deleted. <by Presidential Decree No. 14959, Mar. 28, 1996>
(3) The term “organizations as prescribed by the Presidential Decree” in subparagraph 1 (o) of Article 2 of the Order means organizations as provided in each following subparagraph: <Amended by Presidential Decree No. 14438, Dec. 23, 1994>
1. Organizations whose bonds are registered pursuant to the State Bond Act and the Registration of Bonds and Debentures Act;
2. Equipment leasing companies pursuant to the Equipment Rental Business Act;
3. Credit card companies pursuant to the Credit Card Business Act;
4. Korea general technology finance corporation pursuant to the Korea General Technology Finance Corporation Act;
5. Small and medium enterprise start-up investing companies, and a small and medium enterprise start-up investment association pursuant to the Support for Small and Medium Enterprise Establishment Act;
6. Financial companies for new technology venture business, an investing association for new technology venture business, and the technology and credit guarantee fund pursuant to the Financial Assistance to New Technology Business Act;
7. The credit guarantee fund pursuant to the Credit Guarantee Fund Act;
8. Forestry Cooperatives Associations, and the Federation of Forestry Cooperatives Associations pursuant to the Forestry Cooperatives Act; and
9. Individuals or juristic persons carrying out de facto financial transactions, who are prescribed by the Ordinance of the Prime Minister.
Article 3(Real Name) #
Real name pursuant to subparagraph 4 of Article 2 of the Order shall be as follows: <Amended by Presidential Decree No. 14438, Dec. 23, 1994>
1. In the case of an individual, the name and resident registration number recorded on a resident registration card: Provided, That in case of Korean nationals residing aboard, name and a passport number recorded on a passport (in case of Korean nationals residing aboard whose passport are not issued, his name and registered number recorded on a registration book pursuant to the Registration of Korean Nationals Residing Aboard Act);
2. In the case of a juristic person (including an unincorporated association, etc. considered as a juristic person pursuant to provisions of the Framework Act on National Taxes; hereinafter the same shall apply) the title and registration number of said juristic person recorded on a trader’s registration certificate which is issued pursuant to provisions of the Corporate Tax Act: Provided, That in case of a juristic person to whom a trader’s registration certificate is not issued, the title and tax code number of said juristic person recorded on a document recording a tax code number which is issued pursuant to provisions of the Corporate Tax Act;
3. In the case of an organization not being a juristic person, the real name of its representative: Provided, That in case of an organization granted its own number pursuant to provisions of the Value-Added Tax Act, the title and said number of the organization recorded on a document recording its own number;
4. In the case of a foreigner or foreign organization, the name, title, and the registered number recorded on a recording card of registered foreigners or on a register of foreign organizations pursuant to the Immigration Control Act: Provided, That in case of a person to whom a registration certificate of foreigner is not issued, his name and number recorded on a passport or identification card; and
5. In a case not falling under subparagraphs 1 through 4 above, the real name as prescribed by the Ordinance of the Prime Minister.
Article 4(Notification concerning High-Valued Assets Converted into Real Name) #
When the title of existing non-real name assets is converted into a real name, financial institutions shall notify contents of that conversion to the National Tax Administration according to classification provided in any following subparagraph:
1. With respect to financial assets satisfying the criteria provided in Article 6 of the Order from among financial assets the titles of which are converted into a real name during a period for the obligatory conversion, within 1 month from the last date of said period; and
2. With respect to financial assets the titles of which are converted into a real name after a period for the obligatory conversion, until the last day of the month immediately after the date when said financial assets are so converted.
Article 5(Value of Financial Assets) #
The value of financial asset pursuant to Articles 6 and 7 of the Order shall be an amount as prescribed in each following subparagraph: <Amended by Presidential Decree No. 14438, Dec. 23, 1994>
1. In the case of deposits, deposit money, and trust estates, etc., an amount possible to be drawn out from them as of the enforcement date of the Order;
2. In the case of financial assets saved by such means as installment deposit, security deposit, and money deposited at a loan club, etc., the total of an amount which is paid before the enforcement date of the Order;
3. In the case of premiums, and mutual-aid money, an amount possible to be refunded as of the enforcement date of the Order;
4. In the case of stock, contribution quota, and beneficiary certificate, an amount calculated by multiplying their respective quantities by the values which are formed on the latest day before the enforcement date of the Order;
5. In the case of bonds, a volume as prescribed by the Ordinance of the Prime Minister;
6. In the case of bill, the purchase price thereof; and
7. In the case of financial assets which are not prescribed in subparagraphs 1 through 6, a volume as prescribed by the Ordinance of the Prime Minister.
Article 6(Organization in charge of enforcing Financial Transactions System under Real Name and Global Taxation) #
(1) The Minister of Finance and Economy shall establish and operate an organization in exclusive charge of financial transactions under real name, pursuant to Article 11 of the Order, to secure financial transactions under real name and to prepare the enforcement of global taxation (hereinafter referred to as the “Enforcement Organization”) <Amended by Presidential Decree No. 14438, Dec. 23, 1994>
(2) The Enforcement Organization may make public officials of related agencies, and officers or employees of financial institutions or other associations who are dispatched from related agencies, financial institutions or other associations deal with above stated affairs.
(3) Matters necessary for the establishment and operation of the Enforcement Organization shall be prescribed by the Minister of Finance and Economy. <Amended by Presidential Decree No. 14438, Dec. 23, 1994>