Article 1(Purpose) #
The purpose of this Decree is to provide for matters necessary for the enforcement of the Act on Raising Lump-sum Saving of Farming and Fishing Households.
[This Article Wholly Amended on Dec. 28, 2012]
Article 2(Scope of farmers and fishermen) #
(1) "Persons prescribed by Presidential Decree" in the provisions, with the exception of the items, of subparagraph 2 of Article 2 of the Act on Raising Lump-Sum Saving of Farming and Fishing Households (hereinafter referred to as the "Act") means any of the following persons: <Amended on Sep. 19, 2023>
1. The insured of the health insurance under Article 5 of the National Health Insurance Act whose monthly insurance contributions paid under Article 69 of the same Act are not more than the amount determined by the Financial Services Commission within the scope of not more than 1.5 times the amount of insurance contributions based on the average monthly remuneration of for the year before the preceding year under subparagraph 1a of Article 32 of the Enforcement Decree of that Act;
2. A person referred to in any subparagraph of Article 5(1) of the National Health Insurance Act;
3. A dependent under Article 5(2) of the National Health Insurance Act.
(2) The term "low-income farmer and fisherman" in this Decree means a person under paragraph (1) 1 whose monthly insurance contributions paid pursuant to Article 69 of the National Health Insurance Act are not more than the amount determined by the Financial Services Commission, or a person under paragraph (1) 2 and 3. <Amended on Sep. 19, 2023>
(3) Notwithstanding paragraph (1), among farmers and fishermen, any person who falls within any of the following shall not be deemed a farmer or fisherman: <Added on Jul. 14, 2014; Feb. 28, 2017>
1. Any person who regularly works in an area other than that in which he or she engages as a farmer or fisherman;
2. Any person whose amount of gross income (referring to the amount of gross income under Article 14(2) of the Income Tax Act) generated in the immediately preceding year in an area other than that in which he or she engages as a farmer or fisherman is more than 40/100 of the standard median income (referring to the standard median income under subparagraph 11 of Article 2 of the National Basic Living Security Act) in the immediately preceding year.
(4) If the Financial Services Commission intends to determine the amounts under paragraphs (1)1 and (2), it shall consult with the Minister of Health and Welfare, the Minister of Agriculture, Food and Rural Affairs, the Minister of Oceans and Fisheries, and the Minister of Planning and Budget. <Added on Sep. 19, 2023; Dec. 30, 2025>
(5) Whether a person falls within the scope of farmers and fishermen or low-income farmers and fishermen as defined in the provisions of paragraphs (1) through (3) shall be determined with reference to the time when he or she enters into a contract for lump-sum savings pursuant to Article 7. <Amended on Jul. 14, 2014; Sep. 19, 2023>
[This Article Wholly Amended on Dec. 28, 2012]
Article 3(Types of lump-sum savings) #
Lump-sum savings of farming and fishing households (hereinafter referred to as "lump-sum savings") shall be classified as follows:
1. A monthly saving plan: monthly contribution;
2. A quarterly saving plan: quarterly contribution;
3. A semiannual saving plan: semiannual contribution.
[This Article Wholly Amended on Dec. 28, 2012]
Article 4(Amount of lump-sum savings) #
(1) The maximum annual contribution to the lump-sum savings of a person shall be 2.4 million won. <Amended on Feb. 28, 2017>
(2) The minimum of a regular contribution to the lump-sum savings shall meet the following criteria in each category, and the unit amount shall be 1,000 won:
1. A monthly savings plan: 5,000 won;
2. A quarterly savings plan: 15,000 won;
3. A semiannual savings plan: 30,000 won.
(3) Farmers and fishermen may have multiple savings accounts up to the amount of the contribution to savings under paragraph (1).
(4) Farmers and fishermen may modify their savings contracts or terminate part of the savings to increase or decrease a regular contribution to the savings after the conclusion of the contract for the lump-sum savings.
[This Article Wholly Amended on Dec. 28, 2012]
Article 5(Period of lump-sum savings) #
The period of lump-sum saving shall be three years or five years.
Article 6(Interest rate on lump-sum savings) #
Interest rate paid by savings institutions on the amount of the lump-sum savings shall be determined by the Financial Services Commission in consideration of market interest rates, etc. <Amended on Dec. 23, 1994; Feb. 29, 2008; Jul. 14, 2014>
Article 7(Application for savings contracts and its ascertainment) #
(1) Any person who intends to make contribution to lump-sum savings (hereinafter referred to as "applicant for savings") shall submit a savings institution an application for a lump-sum saving contract in a form prescribed by the savings institution.
(2) Any savings institution which receives an application for a lump-sum saving contract under paragraph (1) shall ascertain whether the applicant for savings falls within the definition of farmers and fishermen or low-income farmers and fishermen herein.
(3) A lump-sum saving contract shall be deemed concluded as of the date when an applicant for savings first makes contribution to a savings institution.
[This Article Wholly Amended on Dec. 28, 2012]
Article 7-2(Notification of tax information) #
When the Commissioner of National Tax Service is requested to provide tax information pursuant to Article 4(2) of the Act, he or she shall provide the savings institution with tax information about whether the relevant person who wishes to save money meets requirements under Article 2(3)2.
[This Article Added on Jul. 14, 2014]
Article 8(Lump-sum savings contracts) #
(1) A lump-sum savings contract shall be made between a farmer or fisherman and a savings institution.
(2) The following matters shall be included in a lump-sum savings contract: <Amended on Jul. 14, 2014>
1. Address and name of the relevant person entering into the savings contract;
2. Classification of savings, each contribution of savings, period of savings and date of regular contribution of savings;
3. Matters concerning the termination of the savings contract;
4. Matters concerning the payment of the principal and the profit therefrom;
5. Matters concerning the payment and clawback of savings incentives;
6. Matters concerning the consent to request for tax information.
[This Article Wholly Amended on Dec. 28, 2012]
Article 9(Ways of lump-sum savings) #
Lump-sum savings shall be made by means of making each contribution to savings institutions by farmers or fishermen themselves or their agents in accordance with the savings contracts in an accumulative manner.
[This Article Wholly Amended on Dec. 28, 2012]
Article 10(Deemed termination of savings contracts) #
(1) When any person who has entered into a contract for a monthly savings plan fails to make contribution for at least six consecutive months, the savings contract concerned shall be deemed terminated on the date when the six months elapse.
(2) When any person who has entered into a contract for a quarterly savings plan or semiannual savings plan fails to make contribution for at least one and half years from the date of the last payment, the savings contract concerned shall be deemed terminated on the date when a year elapses from the date of the last payment.
[This Article Wholly Amended on Dec. 28, 2012]
Article 11(Payment of savings incentives) #
The savings incentive provided for in Article 6 of the Act (hereinafter referred to as "savings incentive") shall be paid through the savings institution concerned from the Savings Incentive Fund for Lump-Sum Savings of Farming and Fishing Households (hereinafter referred to as the "Fund") in the amount classified as follows: <Amended on Jul. 14, 2014; Feb. 28, 2017>
1. Where farmers and fishermen maintain their savings accounts until the expiration of the contract period of lump-sum savings:
a. When the contract period is three years: An amount of money equivalent to 2.7/100 of the average balance of the principal placed in the savings accounts during the period of savings (hereinafter referred to as "average balance");
b. When the contract period is five years: An amount of money equivalent to 7.5/100 of the average balance;
2. Where low-income farmers and fishermen maintain their savings accounts until the expiration of the contract period of lump-sum savings:
a. When the contract period is three years: An amount of money obtained by adding the amount equivalent to 6.3/100 of the average balance to the savings incentive provided for in subparagraph 1a;
b. When the contract period is five years: An amount of money obtained by adding the amount equivalent to 16.5/100 of the average balance to the savings incentive provided for in subparagraph 1b;
3. Where a farmer or fisherman terminates a lump-sum savings contract halfway:
a. When he or she has maintained his or her savings account for at least three years: An amount of money equivalent to 0.54/100 of the average balance;
b. When he or she has maintained his or her savings account for at least four years: An amount of money equivalent to 3.36/100 of the average balance;
3-2. Where a low-income farmer or fisherman terminates a lump-sum savings contract halfway:
a. When he or she has maintained his or her savings account for at least three years: An amount of money equivalent to 3.75/100 of the average balance;
b. When he or she has maintained his or her savings account for at least four years: An amount of money equivalent to 6.8/100 of the average balance;
4. Where a farmer or fisherman terminates a lump-sum savings contract halfway for the reasons set forth in the subparagraph 1 or 3 of Article 87-2 of the Restriction of Special Taxation Act (excluding subparagraph 2 of Article 81-2 of the Enforcement Decree of the Restriction of Special Taxation Act) (excluding cases where the period of savings is less than one year):
Article 12(Computation of savings incentive and interest following increase of regular contribution to savings) #
(1) Where a regular contribution to the savings increases pursuant to Article 4(4), the savings incentive and interest on the increased amount of contribution to the savings shall be computed in accordance with the following classification: <Amended on Jul. 14, 2014>
1. Where the lump-sum saving contract is terminated halfway: The amount of savings incentive shall be computed in accordance with the standards provided for in subparagraph 3 or 3-2 of Article 11, and the amount of interest shall be computed by applying the interest rate for early termination;
2. Where the lump-sum saving contract is maintained until the expiration of its contract period: The amount of a savings incentive shall be computed in accordance with the standards provided for in subparagraph 4 of Article 11, and the amount of interest shall be computed by applying the interest rate for early termination.
(2) In computing the savings incentive and interest under paragraph (1), the starting point of reckoning them shall be the date on which the regular contribution to the savings is increased.
[This Article Wholly Amended on Dec. 28, 2012]
Article 13(Establishment of account for savings incentive fund for lump-sum savings of farming and fishing households) #
The Financial Services Commission shall establish an account for the Savings Incentive Fund for Lump-Sum Savings of Farming and Fishing Households at the Bank of Korea to clarify the revenue and expenditure of the fund.
[This Article Wholly Amended on Dec. 28, 2012]
Article 14(Operation and management of fund) #
Matters necessary for the operation and management of the fund and the payment of the savings incentive shall be prescribed by the Governor of the Bank of Korea, subject to the approval from the Financial Services Commission.
[This Article Wholly Amended on Dec. 28, 2012]
Article 15(Fiscal year of fund) #
The fiscal year of the Fund shall be from January 1 to December 31 each year.
[This Article Wholly Amended on Dec. 28, 2012]
Article 16(Duties of accounting institution of fund) #
The duties of the accounting organ shall be as follows:
1. A fund revenue collecting officer: Affairs concerning the revenue collection of the Fund;
2. A fund financial officer: Affairs concerning encumbrances and assets management of the Fund;
3. A fund expenditure officer: Affairs concerning the expenditure of the Fund;
4. A fund accounting public official: Affairs concerning the custody and accounting of the national funds, custody funds and securities.
[This Article Wholly Amended on Dec. 28, 2012]
Article 17(Compensation for losses) #
Where the Fund compensates the savings institutions for losses incurred under Article 13 of the Act, matters necessary therefor shall be separately prescribed by the Financial Services Commission.
[This Article Wholly Amended on Dec. 28, 2012]
Article 18 #
Deleted. <Feb. 18, 2010>
Article 19(Presentation of identification) #
Any person who performs the inspection under Article 17(2) and (3) of the Act shall present his or her identification showing the authority to related persons.
[This Article Wholly Amended on Dec. 28, 2012]
Article 20(Entrustment of authority) #
(1) The Financial Services Commission shall entrust the following authority to the Governor of Financial Supervisory Service (hereinafter referred to as the "Governor of Financial Supervisory Service") under Article 24 of the Act on the Establishment, etc. of Financial Services Commission pursuant to Article 17(3) of the Act:
1. Orders under Article 17(1) of the Act;
2. Orders to make reports and inspection under Article 17(2) of the Act.
(2) The Governor of Financial Supervisory Service shall report a plan for conducting affairs entrusted pursuant to paragraph (1) and the results thereof to the Financial Services Commission, as prescribed and announced by the Financial Services Commission.
[This Article Added on Jul. 14, 2014]
Article 21(Procedures for withdrawal of savings incentives) #
(1) When the Financial Services Commission intends to recover a savings incentive pursuant to Article 20(1) of the Act, it shall give notice thereof to the relevant farmer or fisherman in writing, specifying the following matters. In this case, the deadline to repay the incentives shall be at least 30 days from the date of notice:
1. Reasons for clawback;
2. Amount to be recovered;
3. Deadline to repay the incentives;
4. Agency to which the repayment is to be made.
(2) The relevant farmer or fisherman who receives notice under paragraph (1) shall pay the amount to be recovered to an agency to which the repayment is to be made by the deadline to repay the incentives.
(3) Where the relevant farmer or fisherman who receives notice under paragraph (1) fails to pay the amount to be recovered by the deadline to repay the incentives, the Financial Services Commission shall urge him or her to pay such amount within a fixed period of no less than 15 days.
[This Article Added on Jul. 14, 2014]