ENFORCEMENT DECREE OF THE COMMUNITY CREDIT COOPERATIVES ACT

Article 1(Purpose) #

The purpose of this Decree is to prescribe matters mandated by the Community Credit Cooperatives Act and matters necessary for the enforcement thereof.

Article 2(Incorporation procedures) #

(1) Promoters who intend to incorporate a community credit cooperative (hereinafter referred to as "credit cooperative") under Article 7 of the Community Credit Cooperatives Act (hereinafter referred to as the "Act") shall prepare a draft articles of incorporation and a draft business plan, and shall hold an inaugural general meeting after publicly announcing the following matters for at least 15 days:

1. The date and place of the inaugural general meeting;

2. Qualifications for membership;

3. Matters to be brought before the inaugural general meeting.

(2) The public announcement under paragraph (1) shall be made by posting it on the bulletin board of the main office of the credit cooperative.

(3) The following matters shall be subject to a resolution at the inaugural general meeting:

1. Draft articles of incorporation;

2. A draft business plan;

3. Appointment of executive officers;

4. Matters necessary for incorporation, such as expenses incurred in incorporation.

Article 3(Application for authorization for incorporation) #

(1) Promoters who intend to obtain authorization for the incorporation of a credit cooperative pursuant to Article 7 of the Act shall file an application for authorization for the incorporation of a credit cooperative with a Special Self-Governing City Mayor, a Special Self-Governing Province Governor, or the head of a Si/Gun/Gu (referring to the head of an autonomous Gu; hereinafter the same shall apply) through the president of the Federation (hereinafter referred to as "president"), along with the following documents: <Amended on Feb. 29, 2008; Sep. 9, 2011; Mar. 23, 2013; Nov. 19, 2014; Jul. 26, 2017; Sep. 8, 2020>

1. Articles of incorporation;

2. A copy of the minutes of the inaugural general meeting;

3. A business plan;

4. Resumes of the promoters' representatives and executive officers, and their written consents of inauguration;

5. A list of persons who have submitted a written consent to the incorporation of a credit cooperative.

(2) Where a merger under Article 37 of the Act results in the incorporation of a credit cooperative, a copy of the minutes of the general meeting of merger which has adopted a resolution on the scope of rights and obligations to be succeeded to by the credit cooperative to be incorporated shall be attached, in addition to the documents under the subparagraphs of paragraph (1).

(3) The president shall submit an application for authorization for incorporation under paragraph (1) to a Special Self-Governing City Mayor, a Special Self-Governing Province Governor, or the head of a Si/Gun/Gu within 30 days from the date of receipt of the application, along with his or her opinion thereon. <Added on Sep. 9, 2011; Mar. 23, 2013; Nov. 19, 2014; Jul. 26, 2017; Sep. 8, 2020>

(4) A Special Self-Governing City Mayor, a Special Self-Governing Province Governor, or the head of a Si/Gun/Gu shall notify the applicant of whether to grant authorization within 60 days from the date of receipt of an application for authorization for incorporation from the president pursuant to paragraph (3). <Amended on Feb. 29, 2008; Sep. 9, 2011; Mar. 23, 2013; Nov. 19, 2014; Jul. 26, 2017; Sep. 8, 2020>

Article 4(Detailed requirements for authorization) #

(1) The amount of investment under Article 7-2 (1) 1 of the Act shall be the total amount of investment (the total amount of investment, in the case of incorporation following a merger) paid by persons who have consented to incorporation (not less than 100 persons) who are qualified for membership under Article 9 (1) of the Act, but shall meet the standards classified as follows: <Amended on Sep. 12, 2023>

1. In the case of regional credit cooperatives:

(a) A regional credit cooperative incorporated by June 30, 2025: The amount classified as follows:

1) Where the main office is located in the Special Metropolitan City or a Metropolitan City: At least 500 million won;

2) Where the main office is located in a Special Self-Governing City or a Si (including a Si which is not a local government; hereafter the same shall apply in this subparagraph): At least 300 million won;

3) Where the main office is located in an Eup or Myeon (including an Eup or Myeon established in a Metropolitan City, a Special Self-Governing City, or a Si; hereafter the same shall apply in this subparagraph): Not less than 100 million won;

(b) A regional credit cooperative incorporated from July 1, 2025 to June 30, 2028: The amount classified as follows:

1) Where the main office is located in the Special Metropolitan City or a Metropolitan City: At least 1 billion won;

2) Where the main office is located in a Special Self-Governing City or a Si: At least 600 million won;

3) Where the main office is located in an Eup or Myeon: At least 200 million won;

(c) A regional credit cooperative incorporated after July 1, 2028: The amount classified as follows:

1) Where the main office is located in the Special Metropolitan City or a Metropolitan City: At least 2 billion won;

2) Where the main office is located in a Special Self-Governing City or a Si: At least 1 billion won;

3) Where the main office is located in an Eup or Myeon: At least 500 million won;

2. In the case of a credit cooperative other than a regional credit cooperative: At least 100 million won.

(2) Detailed requirements for specialized human resources under Article 7-2 (1) 2 of the Act shall be as follows:

Article 4-2(Preferential investment) #

Articles 41-2 through 41-9 shall apply mutatis mutandis to preferential investment in credit cooperatives under Article 9-4 (1) of the Act. In such cases, the "Federation" shall be construed as "credit cooperative", and "president" as "chairperson of the board of directors".

[This Article Added on Oct. 4, 2023]

[Previous Article 4-2 moved to Article 4-3 <Oct. 4, 2023>]

Article 4-3(Authorization for amendment of articles of incorporation) #

(1) Where a credit cooperative intends to obtain authorization to amend its articles of incorporation pursuant to Article 12 (5) of the Act, it shall file an application for authorization to amend its articles of incorporation with a Special Self-Governing City Mayor, a Special Self-Governing Province Governor, or the head of a Si/Gun/Gu through the president, along with the following documents:

1. Documents stating the amendments to the articles of incorporation and the grounds therefor;

2. A draft for amended articles of incorporation;

3. A copy of the minutes of the general meeting which has passed a resolution to amend the articles of incorporation.

(2) The president shall submit an application for authorization to amend the articles of incorporation under paragraph (1) to a Special Self-Governing City Mayor, a Special Self-Governing Province Governor, or the head of a Si/Gun/Gu within 30 days from the date of receipt of the application for authorization to amend the articles of incorporation, along with his or her opinion thereon.

(3) A Special Self-Governing City Mayor, a Special Self-Governing Province Governor, or the head of a Si/Gun/Gu shall notify a credit cooperative of whether to grant authorization to amend the articles of incorporation within 60 days from the date of receipt of an application for authorization to amend the articles of incorporation from the president under paragraph (2).

[This Article Added on Sep. 8, 2020]

[Moved from Article 4-2 <Oct. 4, 2023>]

Article 5(Minutes of general assembly meetings) #

The minutes of the general meeting under Article 12 (6) of the Act shall state the progress and results of the general meeting, and shall be signed and sealed by the chairperson and at least 5 members who are present and elected by the general meeting.

Article 6(Meeting of representatives) #

(1) A meeting of representatives of a credit cooperative under Article 16 (1) of the Act shall be composed of the chairperson of the board of directors of the credit cooperative and its representatives.

(2) The qualifications of representatives shall be prescribed by the articles of incorporation, but a year shall have passed since joining the credit cooperative as a member; provided, this shall not apply to a credit cooperative for which a year has not passed since its establishment or to a credit cooperative for workplace.

(3) The number of representatives of a credit cooperative shall be prescribed by the articles of incorporation in proportion to the number of members, and shall exceed 100 persons.

(4) Matters necessary for the methods of appointing representatives shall be prescribed by the articles of association.

Article 7(Full-time executive officers) #

The size of assets, financial structure, and number of full-time executive officers of a credit cooperative that may have full-time executive officers pursuant to the former part of Article 18 (2) of the Act shall be as follows. In such cases, the assets shall be based on the total assets calculated based on the average balance of the immediately preceding business year: <Amended on Sep. 9, 2011; Mar. 23, 2013; Nov. 19, 2014; Jul. 26, 2017; Apr. 19, 2022; Oct. 4, 2023; Jun. 25, 2025>

1. A credit cooperative whose assets are not less than 50 billion won but less than 200 billion won, which meets the standards determined by the Minister of the Interior and Safety, according to the results of assessing the management status thereof under Article 79 (6) of the Act: 1 person;

2. A credit cooperative whose assets are not less than 200 billion won but less than 500 billion won, which meets the standards determined by the Minister of the Interior and Safety, according to the results of assessing the management status thereof under Article 79 (6) of the Act: Not more than 2 persons;

3. A credit cooperative whose assets exceed 500 billion won, which meets the standards determined by the Minister of the Interior and Safety, according to the results of assessing the management status thereof under Article 79 (6) of the Act: Not more than 3 persons;

4. A regional credit cooperative whose assets amount to at least 800 billion won and which fails to meet the standards prescribed by the Minister of the Interior and Safety in the evaluation of its management status under Article 79 (6) of the Act: 1 person (limited to a full-time auditor).

Article 8(Qualification requirements for full-time executive officers) #

(1) "Person who meets the requirements prescribed by Presidential Decree" in the latter part of Article 18 (2) of the Act means a person who meets the following requirements:

1. A full-time chairperson of the board of directors: Meeting any of the following requirements:

(a) A person who has at least 4 years' work experience as a full-time executive officer in a credit cooperative;

(b) A person who has at least 6 years' work experience as an executive officer in a credit cooperative;

(c) A person who has at least 10 years' work experience as a full-time employee in a credit cooperative or the Federation;

(d) A person who has at least 10 years' work experience as a public official or a full-time employee in a finance-related State agency, research institute, or educational institution;

(e) A person who has at least 10 years' work experience as a full-time employee in an institution subject to inspection under Article 38 of the Act on the Establishment of Financial Services Commission;

2. A full-time director: Meeting any of the following requirements:

(a) A person who has at least 5 years' work experience as a full-time employee in a credit cooperative or the Federation;

(b) A person who has at least 10 years' work experience as a public official or a full-time employee in a finance-related State agency, research institute, or educational institution;

(c) A person who has at least 10 years' work experience as a full-time employee in an institution subject to inspection under Article 38 of the Act on the Establishment of Financial Services Commission;

3. A full-time auditor: Meeting any of the following requirements:

(a) A person who has at least 5 years' work experience as a full-time employee in audit, accounting, or finance-related affairs at a credit cooperative or the Federation; provided, the same shall not apply to a person who is working or has worked as an executive officer or employee in the relevant credit cooperative within the last 2 years (excluding a person who is working or worked as an auditor of a credit cooperative);

(b) A person who has at least 5 years' work experience as a full-time employee at the State, a local government, or a public institution under the Act on the Management of Public Institutions as a full-time employee in audit, accounting, finance, or credit cooperative-related affairs;

Article 8-2(Scope of regional credit cooperatives required to appoint full-time auditors) #

"Regional credit cooperatives that meet the criteria prescribed by Presidential Decree" in Article 18 (3) of the Act means regional credit cooperatives whose total assets, as stated in the financial statements for the fiscal year preceding the year before the year in which the chairperson is elected, amount to at least 800 billion won.

[This Article Added on Jun. 25, 2025]

[Previous Article 8-2 moved to Article 8-3 <Jun. 25, 2025>]

Article 8-3(Scope of cooperatives eligible to choose method of electing chairperson) #

"Credit cooperative prescribed by Presidential Decree, such as a credit cooperative with assets not exceeding a certain amount" in the proviso of Article 18 (5) of the Act means any of the following credit cooperatives: <Amended on Jun. 25, 2025>

1. Regional credit cooperatives whose total assets, as stated in the financial statements for the fiscal year preceding the year before the year in which the chairperson is elected, amount to less than 200 billion won;

2. A credit cooperative other than a regional credit cooperative.

[This Article Added on Apr. 19, 2022]

[Moved from Article 8-2 <Jun. 25, 2025>]

Article 9(Dismissal of executive officers) #

(1) In order to make a resolution on the dismissal of an executive officer at a general meeting pursuant to Article 19 (8) of the Act, the request of at least 1/3 of the incumbent members shall be required.

(2) Upon receipt of a request for dismissal under paragraph (1), the chairperson of the board of directors shall notify the relevant executive officer of matters regarding such request for dismissal at least 7 days before the date of its general meeting, and shall provide the executive officer with an opportunity to defend himself or herself at the general meeting.

(3) Other matters necessary for the dismissal of executive officers shall be prescribed by the articles of incorporation.

Article 10(Employees of credit cooperatives) #

(1) A credit cooperative in which a senior managing director or a managing director may be appointed as the managing staff pursuant to Article 19 (9) of the Act shall be a credit cooperative whose total assets as of the end of the immediately preceding business year exceed the amount classified as follows, and whose financial structure, management performance, etc. meet the standards determined by the president: <Amended on Sep. 9, 2011; Apr. 19, 2022>

1. A credit cooperative with a senior managing director: 100 billion won;

2. A credit cooperative with a managing director: 50 billion won.

(2) The managing staff referred to in paragraph (1) shall be those who do not fall under Article 21 (1) 1 through 11, 11-2, 11-3, 12, 12-2, 13, 13-2, 14, 15, and 18 of the Act and who have passed a screening test conducted by the president. <Amended on Sep. 9, 2011; Oct. 4, 2023>

(3) Employees of a credit cooperative shall be appointed or dismissed by the chairperson of the board of directors, but matters necessary for qualification standards for such appointment or dismissal, exchanges, etc. between employees of the credit cooperatives shall be determined by the president. <Amended on Sep. 9, 2011>

(4) A Personnel Management Committee may be composed and operated in the Special Metropolitan City, a Metropolitan City, a Do, a Special Self-Governing Province, and a Si/Gun/Gu (only applicable to an autonomous Gu) in order to maintain the balance of the personnel and remuneration systems for employees of credit cooperatives and to discuss and coordinate matters regarding personnel exchange, as prescribed by the articles of incorporation of the Federation. <Amended on Sep. 9, 2011>

Article 10-2(Scope of credit cooperatives eligible to conduct performance evaluations of full-time directors) #

"Credit cooperatives prescribed by Presidential Decree" in Article 19-2 (1) of the Act means credit cooperatives whose total assets, as stated in the financial statements for the fiscal year preceding the year before the year in which the chairperson is elected, amount to at least 200 billion won.

[This Article Added on Jun. 25, 2025]

[Previous Article 10-2 moved to Article 10-3 <Jun. 25, 2025>]

Article 10-3(Scope of finance-related statutes or regulations) #

"Finance-related statutes or regulations prescribed by Presidential Decree" in Article 21 (1) 12 of the Act means the following statutes: <Amended on Aug. 25, 2020; Mar. 23, 2021>

1. The Act on the Structural Improvement of the Financial Industry;

2. The Act on Real Name Financial Transactions and Confidentiality;

3. The Act on the Establishment of Financial Services Commission;

4. The Financial Holding Companies Act;

5. The Agricultural Cooperatives Act;

6. The Act on Registration of Credit Business and Protection of Finance Users;

7. The Insurance Business Act;

8. The Forestry Cooperatives Act;

9. The Mutual Savings Banks Act;

10. The Fisheries Cooperatives Act;

11. The Credit Information Use and Protection Act;

12. The Credit Unions Act;

13. The Specialized Credit Finance Business Act;

14. The Foreign Exchange Transactions Act;

15. The Banking Act;

16. The Financial Investment Services and Capital Markets Act;

17. The Electronic Financial Transactions Act;

18. The Industrial Bank of Korea Act;

19. The Act on Reporting and Using Specified Financial Transaction Information;

20. The Korea Development Bank Act;

21. The Export-Import Bank of Korea Act;

22. The Korea Development Bank Act;

23. The Korea Housing Finance Corporation Act;

24. The Act on Online Investment-Linked Financial Business and Protection of Users;

25. The Act on the Protection of Financial Consumers.

[This Article Added on Jul. 5, 2016]

[Moved from Article 10-2; previous Article 10-3 moved to Article 10-4 <Jun. 25, 2025>]

Article 10-4(Composition, operation and duties of election administration committee) #

(1) The term of establishment of the election administration committee under Article 23 (1) of the Act (hereinafter referred to as the "election administration committee") shall be from the day before the date of public notice of the election of executive officers (where election management is entrusted pursuant to Article 23-2 of the Act, from the day before the start date for the application for preliminary candidacy under Article 24-2 of the Act on Elections Entrusted by Public Organizations) until the day that falls two months after the election day. <Amended on Jun. 25, 2025>

(2) None of the following persons shall become a member of the election administration committee:

1. A person registered as a candidate for an executive officer in the relevant election;

2. A person who has a relative relationship under Article 777 of the Civil Act with a candidate for an executive officer;

3. A person who falls under Article 10 (2) 2 and 3 of the Act;

4. A person for whom 2 years have not passed since the date of being expelled from the membership under Article 10-2 (1) of the Act.

(3) A non-member of a credit cooperative but who is qualified to become a member of the election administration committee under Article 23 (2) of the Act shall be any of the following persons:

1. A person who has at least 3 years' work experience as an election commissioner or a public official in an election commission under the Election Commission Act;

2. A person who has at least 5 years' work experience as a public official;

3. A person who has at least 5 years' work experience as an executive officer or employee of the Federation or a credit cooperative;

4. Other persons prescribed by the articles of incorporation, who are equivalent to those specified in subparagraphs 1 through 3.

(4) The chairperson of the election administration committee (hereinafter referred to as "chairperson of the election administration committee") shall be elected by and from among its members, represent the election administration committee, and preside over the meetings of the election administration committee.

(5) When the chairperson of the election administration committee is unable to perform his or her duties for unavoidable reasons, a person shall be elected from among and by the members of the election administration committee to act on behalf of the chairperson.

Article 11(Scope of business in essentially competitive relationship) #

(1) "The scope of business in an essentially competitive relationship" in Article 24 (2) of the Act means business conducted by any of the following persons: <Amended on Feb. 29, 2008; Mar. 23, 2013; Nov. 19, 2014; Dec. 9, 2014; Jul. 5, 2016; Jul. 6, 2016; Jul. 26, 2017>

1. An institution subject to inspection under Article 38 of the Act on the Establishment of Financial Services Commission;

2. A local agricultural cooperative, a local livestock producers cooperative, a cooperative by item or by type of business, and the National Agricultural Cooperative Federation under the Agricultural Cooperatives Act;

3. A fisheries cooperative by district, a fisheries cooperative by type of business, a fishery products processing fisheries cooperatives, and the National Federation of Fisheries Cooperatives under the Fisheries Cooperatives Act;

4. A local forestry cooperative, a forestry cooperative by item or by type of business, and the National Forestry Cooperatives Federation under the Forestry Cooperatives Act;

5. A postal agency under the Postal Savings and Insurance Act;

6. An insurance agency, an insurance solicitor, and a certified insurance broker under the Insurance Business Act;

7. A credit service provider under the Act on Registration of Credit Business and Protection of Finance Users;

8. A special purpose company under the Asset-Backed Securitization Act;

9. Other business entities designated by the Minister of the Interior and Safety.

(2) Deleted. <Jul. 5, 2016>

Article 12(Business of credit cooperatives) #

(1) "Providing services on behalf of the Government, public institutions and financial institutions" in Article 28 (1) 1 (d) of the Act means receiving and disbursing national taxes, local taxes, fees, user fees, and other public charges on behalf of the State, local governments, and other public organizations and receiving and disbursing on behalf of financial institutions.

(2) "Safeguard deposit" in Article 28 (1) 1 (e) of the Act means the safekeeping of securities, precious metals, and documents.

(3) When a credit cooperative intends to enter into a contract for an entrusted project with the Federation, the State, or a public organization pursuant to Article 28 (1) 6 and 7 of the Act, it shall do so in writing, stating the following matters: <Amended on Sep. 9, 2011>

1. Objects and scope of the entrusted project;

2. Period of entrustment;

3. Other matters necessary for the performance of the entrusted project.

Article 13(Mutual aid business) #

(1) Where a credit cooperative intends to engage in mutual aid business for its members pursuant to Article 28 (1) 5 of the Act, it shall establish its mutual aid regulations and obtain authorization therefor from the Minister of the Interior and Safety. The same shall also apply where it intends to amend or abolish such mutual aid regulations. <Amended on Feb. 29, 2008; Mar. 23, 2013; Nov. 19, 2014; Jul. 26, 2017>

(2) The Minister of the Interior and Safety who intends to authorize mutual aid regulations pursuant to paragraph (1) shall consult with the Financial Services Commission in advance. <Amended on Feb. 29, 2008; Mar. 23, 2013; Nov. 19, 2014; Jul. 26, 2017>

(3) The mutual aid regulations referred to in paragraph (1) shall include the methods of implementing projects, mutual aid contracts, mutual aid fees, etc., as prescribed by Decree of the Ministry of the Interior and Safety. <Amended on Feb. 29, 2008; Sep. 9, 2011; Mar. 23, 2013; Nov. 19, 2014; Jul. 26, 2017>

Article 14(Limit on borrowing of funds) #

(1) Pursuant to Article 28 (3) of the Act, a credit cooperative may borrow the required funds from the Federation, the State, public organizations, or financial institutions, as prescribed by its articles of incorporation. <Amended on Sep. 9, 2011>

(2) The loans borrowed from a credit cooperative shall not exceed the sum of the total amount of investments and reserves of the credit cooperative; provided, where it borrows from the Federation, it shall not exceed the amount calculated by subtracting the loans borrowed from the total assets of the relevant credit cooperative at the time of borrowing from the Federation from the total assets of the relevant credit cooperative. <Amended on Sep. 9, 2011; Oct. 8, 2024>

(3) Notwithstanding the proviso of paragraph (2), where funds are borrowed from the Federation due to emergency or unavoidable reasons, such as large-scale withdrawal of deposits, etc., it may be borrowed in excess of the limit prescribed in the proviso of the same paragraph, as prescribed by Ordinance of the Ministry of the Interior and Safety. <Added on Oct. 8, 2024>

Article 15(Management of surplus funds) #

The surplus funds of a credit cooperative may be managed by the following methods: <Amended on Sep. 9, 2011>

1. A deposit with the Federation;

2. A deposit with a financial institution or a money trust with a trust business entity;

3. Purchase of national bonds, local government bonds, and securities determined by the president.

Article 16(Reserves for reimbursement) #

(1) A credit cooperative shall deposit at least 80/100 of the reserves for reimbursement to be held as of the last day of each month with the Federation by the fifth day of the following month pursuant to Article 28 (5) of the Act, and the remaining reserves for reimbursement shall be held by any of the following methods, unless there is a compelling reason not to do so: <Amended on Oct. 8, 2024; Jun. 25, 2025>

1. Cash;

2. Deposits at the Federation, financial companies under subparagraph 1 (a) through (f) of Article 2 of the Depositor Protection Act, or postal service agencies under the Postal Savings and Insurance Act.

(2) Matters necessary for depositing and holding the reserves for reimbursement under paragraph (1) shall be determined by the president. <Amended on Sep. 9, 2011; Oct. 8, 2024>

Article 16-2(Lease of real estate for business purposes) #

Where deemed necessary for the efficient operation of real estate for business purposes owned under Article 28 (7) of the Act (limited to where at least 10/100 of the total floor area of the relevant real estate is used directly for business purposes), a credit cooperative may lease part of such real estate to another person to the extent that it does not interfere with use by its members. <Amended on Oct. 4, 2023>

[This Article Added on Apr. 19, 2022]

[Moved from Article 16-4; Previous Article 16-2 moved to Article 16-3 <Oct. 4, 2023>]

Article 16-3(Types of and standards for unfair trade practices) #

Specific types of and standards for unfair trade practices under Article 28-2 (1) of the Act shall be as follows:

1. Restricting the cancellation or withdrawal of any product of a credit cooperative, such as deposits or installment savings, against his or her intent in connection with credit transactions;

2. Requesting a borrower or any third person to provide comprehensive collateral security (referring to the provision of goods or rights to secure several liabilities that have incurred or uncertain liabilities that could incur in the future within the fixed limit) or comprehensive collateral guarantee (referring to the guarantee of several liabilities that have incurred or uncertain liabilities that could incur in the future within the fixed limit) without good cause in acquiring security or warranty in connection with credit transactions;

3. Additionally requesting a third-party security provider for joint guarantees in connection with credit transactions;

4. Coercing the related persons of a borrower, such as the representative and executive officers of a small and medium enterprise (referring to a small and medium enterprise determined and publicly announced by the Financial Services Commission from among small and medium enterprises referred to in Article 2 of the Framework Act on Small and Medium Enterprises; hereafter in this paragraph, the same shall apply), to purchase bank products contrary to their intent in connection with credit transactions;

5. Selling the products of a credit cooperative, in connection with credit transactions, to a small and medium enterprise which is a borrower and to other borrowers or related persons of such borrowers determined and publicly notified by the Minister of the Interior and Safety within 1 month before and after the day on which such credit transactions are conducted, which satisfies the requirements determined and publicly notified by the Minister of the Interior and Safety in consideration of the characteristics, the sales amount, etc. of the products of the credit cooperative;

6. Other practices similar to those prescribed in subparagraphs 1 through 5, which are determined and publicly notified by the Minister of the Interior and Safety to protect the rights and interests of borrowers.

[This Article Added on Jun. 26, 2018]

[Moved from Article 16-2; Previous Article 16-3 moved to Article 16-4 <Oct. 4, 2023>]

Article 16-4(Limits on loans to same person) #

(1) "Limit prescribed by Presidential Decree" in the main clause of Article 29 (1) of the Act means the larger of the following amounts: <Amended on Jul. 26, 2017>

1. An amount equivalent to 20/100 of the equity capital as of the end of the immediately preceding business year. In such cases, the Minister of the Interior and Safety may determine and publicly notify the maximum limit of such amount;

2. An amount equivalent to 1/100 of total assets as of the end of the immediately preceding business year. In such cases, the Minister of the Interior and Safety may determine and publicly notify the maximum limit of such amount.

(2) In calculating the limit on loans to the same person pursuant to the main clause of Article 29 (1) of the Act, loans determined and publicly notified by the Minister of the Interior and Safety may not be included in the calculation of the amount of loans. <Amended on Jul. 26, 2017>

[This Article Added on Jul. 5, 2016]

[Moved from Article 16-3; Previous Article 16-4 moved to Article 16-2 <Oct. 4, 2023>]

Article 16-5(Requirements and procedures for request for reduction of interest rate) #

(1) The requirements under which a person who has concluded a contract of loan, etc. with a credit cooperative under Article 31-2 (1) of the Act is entitled to request an interest rate reduction shall be classified as follows:

1. In the case of an individual (excluding an individual business entity): Improvements in credit standing, such as employment, promotion, an increase in property, or an upgrade in personal credit score;

2. In the case of a non-individual (excluding an individual business entity): Improvements in credit standing, such as financial standing, credit rating or credit score.

(2) Upon receipt of a request for an interest rate reduction under Article 31-2 (1) of the Act, a credit cooperative may decide whether to reduce the interest rate in consideration of matters determined and publicly notified by the Minister of the Interior and Safety, such as whether improvements in credit standing affect the calculation of the interest rate, etc.

(3) Upon receipt of a request for an interest rate reduction under Article 31-2 (1) of the Article, a credit cooperative shall notify a person who has requested such interest rate reduction of whether to reduce the interest rate and grounds therefor in writing, by telephone, electronic mail, text message, fax, or other similar means within 10 business days from the date of receipt of such request (where the supplementation of data has been requested, the period from the date of such request to the date of submission shall not be included).

(4) Except as provided in paragraphs (1) through (3), detailed matters necessary for the requirements and procedures for requesting an interest rate reduction shall be determined and publicly notified by the Minister of the Interior and Safety.

[This Article Added on May 15, 2023]

Article 17(Accounting) #

(1) The accounts of a credit cooperative shall be classified into general accounts and special accounts, and the business sector for each account shall be determined by the articles of incorporation.

(2) A credit cooperative may transfer part of its profits from one account to another by obtaining a resolution of a general meeting.

(3) Except as provided in paragraphs (1) and (2), matters necessary for the accounting of credit cooperatives shall be determined by the president. <Amended on Sep. 9, 2011>

Article 18 #

Deleted. <Jul. 5, 2016>

Article 19(Settlement of accounts of credit cooperative) #

(1) A credit cooperative shall complete the settlement of accounts for the relevant business year within 2 months after the end of each business year and prepare a report on the settlement of accounts (including a business report, a statement of financial position, a statement of profit and loss, a surplus appropriation plan, or a deficit disposal plan) and obtain approval thereof from a general meeting. <Amended on Jun. 26, 2018>

(2) A credit cooperative shall submit a report on the settlement of accounts under paragraph (1) to the Federation within 7 days from the date it obtains approval from a general meeting. <Amended on Sep. 9, 2011>

Article 20(Reduction of capital) #

(1) Where a credit cooperative has reduced its capital pursuant to Article 35 (6) of the Act, it shall report the following matters to the president within 10 days from the date on which a resolution is adopted at a general meeting, and shall publicly announce such matters on the bulletin board of the credit cooperative for at least 1 month: <Amended on Sep. 9, 2011>

1. Details of capital reduction;

2. Financial statements;

3. Matters regarding the filing of objections by creditors;

4. Other matters prescribed by the articles of association.

(2) The period for filing an objection under paragraph (1) 3 shall be at least 2 months from the date of public announcement.

Article 21(Support for merger) #

(1) A credit cooperative that has received a recommendation for merger from the president pursuant to Article 38 of the Act shall publicly announce such fact on the bulletin board of the credit cooperative within 7 days from the date of receipt of such recommendation. <Amended on Sep. 9, 2011>

(2) Where the State, a local government, or the Federation pursues a merger between credit cooperatives or merges credit cooperatives, it may provide human resources, funds, etc. for the normal operation of credit cooperatives. <Amended on Sep. 9, 2011; Sep. 8, 2020>

Article 22(Incorporation procedures) #

(1) Promoters who intend to incorporate the Federation shall prepare a draft articles of incorporation and a draft business plan, and shall hold an inaugural general meeting after publicly announcing the following matters for at least 15 days: <Amended on Sep. 9, 2011>

1. The date and place of the inaugural general meeting;

2. Qualifications for membership;

3. Matters to be brought before the inaugural general meeting.

(2) Public announcement under paragraph (1) shall be made by posting it on the bulletin board of the main office of the Federation and publicly announcing it in at least one daily newspaper published by the Seoul Metropolitan Government, the website, broadcasting, etc. <Amended on Sep. 9, 2011; Nov. 24, 2020>

(3) The following matters shall be subject to a resolution at the inaugural general meeting:

1. Draft articles of incorporation;

2. A draft business plan;

3. Appointment of executive officers;

4. Matters necessary for incorporation, such as expenses incurred in incorporation.

Article 23(Authorization for incorporation) #

(1) Where a promoter intends to obtain authorization for the incorporation of the Federation under Article 54 of the Act, he or she shall submit an application for the authorization of incorporation prescribed by Decree of the Ministry of the Interior and Safety with the Minister of the Interior and Safety, along with the following documents:

1. Articles of incorporation;

2. A copy of the minutes of the inaugural general meeting;

3. A business plan;

4. Resumes of the promoters' representatives and executive officers, and their written consents of inauguration;

5. A list of persons who have submitted a written consent to the incorporation of the Federation.

(2) The Minister of the Interior and Safety shall notify the applicant of whether to grant authorization for incorporation within 60 days from the date of receipt of such application under paragraph (1).

[This Article Wholly Amended on Sep. 8, 2020]

Article 24(Meeting of representatives) #

(1) A meeting of representatives of the Federation under Article 16 (1) of the Act, applied mutatis mutandis pursuant to Article 58 (6) of the Act, shall be composed of the president and representatives. <Amended on Sep. 9, 2011>

(2) The qualifications of a representative shall be prescribed by the articles of incorporation, and the representative shall be the chairperson of the board of directors of the credit cooperative.

(3) The number of representatives of the Federation shall be prescribed by the articles of incorporation in consideration of the number of credit cooperatives, the size of their assets, their management performance, etc., and shall be not less than 100 and not more than 300 persons. <Amended on Sep. 9, 2011; Dec. 9, 2014; May. 15, 2023>

(4) Representatives shall be appointed for each region, and matters necessary for the methods of appointment, etc. shall be prescribed by the articles of association.

Article 24-2(Qualifications for members of audit and inspection committee) #

"Requirements prescribed by Presidential Decree" in Article 61 (2) of the Act means any of the following cases: <Amended on Oct. 8, 2024>

1. A person has at least 10 years' work experience at the Federation, a credit cooperative, or an institution subject to inspection under Article 38 of the Act on the Establishment of Financial Services Commission (including foreign financial institutions equivalent thereto); provided, this shall not apply where he or she has worked at the Federation or a credit cooperative as an executive officer or employee (excluding where he or she is working or has worked as an audit committee member of the Federation) within the latest 3 years (excluding where he or she is working or has worked as an audit member of the Federation);

2. A person who has at least 5 years' work experience as a researcher or assistant professor or higher at a research institute or university after obtaining a master's degree or higher in a finance-related field;

3. A person who has at least 5 years' work experience as a judge, prosecutor, military judicial officer, attorney-at-law, or certified public accountant;

4. A person who has at least 5 years' work experience as an executive officer in the affairs related to law, finance, audit, or accounting at a stock-listed corporation under Article 9 (15) 3 of the Financial Investment Services and Capital Markets Act, or at least 10 years' work experience in total as an executive officer or employee;

5. A person who has at least 5 years' work experience in finance, accounting, or supervision-related affairs in the State, local governments, public institutions, and the Financial Supervisory Service.

[This Article Added on Jun. 26, 2018]

Article 25(Standards for internal control) #

(1) The standards for the internal control of executives and employees of the Federation under Article 63 (1) of the Act shall include the following matters: <Amended on Feb. 29, 2008; Sep. 9, 2011; Mar. 23, 2013; Nov. 19, 2014; Jul. 26, 2017>

1. Matters regarding the division of affairs and organizational structure;

2. Matters regarding the management of risks arising in the course of operating assets or performing affairs;

3. Matters regarding procedures to be complied with by executive officers and employees when performing affairs;

4. Matters regarding the establishment of systems through which information necessary for decision-making on management can be efficiently delivered;

5. Matters regarding the procedures for and methods of verifying whether executive officers and employees comply with the standards for internal control, and the handling of executive officers and employees who violate such standards;

6. Matters regarding procedures and standards for preventing unfair trading practices, such as reporting on the details of securities trading by executive officers and employees;

7. Matters regarding procedures for establishing or amending standards for internal control;

8. Matters determined by the Minister of the Interior and Safety regarding detailed standards referred to in subparagraphs 1 through 7.

(2) The Federation which intends to establish or amend the standards for internal control shall pass a resolution by the board of directors. <Amended on Sep. 9, 2011>

Article 26(Qualification requirements for compliance officer) #

(1) Qualification requirements for a compliance officer under Article 63 (4) of the Act shall be as follows: <Amended on Feb. 29, 2008; Mar. 29, 2011; Sep. 9, 2011; Feb. 29, 2012; Mar. 23, 2013; Nov. 19, 2014; Jul. 26, 2017>

1. A person who has at least 10 years' work experience as a full-time employee in the Federation, the Bank of Korea, or an institution subject to inspection under Article 38 of the Act on the Establishment of Financial Services Commission;

2. A person who has at least 5 years' work experience as a researcher or an assistant professor or higher in a finance-related research institute or university;

3. A person who is qualified as an attorney-at-law or a certified public accountant, and who has at least 5 years' work experience in affairs related to such qualifications;

4. A person who has at least 5 years' work experience as a public official or a full-time employee in the Ministry of the Interior and Safety, the Financial Services Commission, or the Financial Supervisory Service, and 5 years have passed since his or her retirement from the relevant institution.

(2) A compliance officer shall perform his or her duties with due care as a good manager, and shall not take charge of the following duties: <Amended on Dec. 9, 2014>

1. Asset management;

2. Credit and mutual aid business performed by the Federation and incidental business related thereto;

3. Deleted. <Dec. 9, 2014>

Article 27(Qualification requirements for full-time directors) #

"Person who meets the requirements prescribed by Presidential Decree" in Article 64-2 (2) of the Act means any of the following persons: <Amended on Feb. 29, 2008; Sep. 9, 2011; Dec. 9, 2014>

1. A person who has at least 10 years' work experience as a full-time employee in the Federation, the Bank of Korea, or an institution subject to inspection under Article 38 of the Act on the Establishment of Financial Services Commission;

2. A person who has at least 10 years' work experience as a public official or a full-time employee in a finance-related State agency, research institute, or educational institution.

[Title Amended on Dec. 9, 2014]

Article 28(Executive officers and employees) #

(1) Article 9 shall apply mutatis mutandis to the executive officers of the Federation. In such cases, "Article 19 (8) of the Act" in Article 9 (1) shall be construed as "Article 64-2 (6) of the Act" and "chairperson of the board of directors" in paragraph (2) of that Article as "president". <Amended on Sep. 9, 2011; Jul. 5, 2016>

(2) Employees of the Federation shall be those who have passed a screening test conducted by the president. <Amended on Sep. 9, 2011>

(3) Matters necessary for the appointment and dismissal, guarantee of status, etc. of employees of the Federation shall be prescribed by the articles of association. <Amended on Sep. 9, 2011>

Article 29(Scope of business in essentially competitive relationship) #

(1) The scope of business in an essentially competitive relationship under Article 24 (2) of the Act which is applied mutatis mutandis pursuant to Article 64-2 (6) of the Act shall be the business conducted by a person falling under any subparagraph of Article 11 (1); provided, the business operated by a corporation invested by a credit cooperative or the Federation shall be excluded herefrom. <Amended on Dec. 9, 2014; Jul. 5, 2016; Apr. 19, 2022>

(2) Deleted. <Jul. 5, 2016>

Article 30(Registration by agent) #

(1) The Federation shall register the following matters at the location of its principal office within two weeks from the date an agent is appointed under Article 64-2 (9) of the Act by the president, the representative director in charge of credit and mutual-aid (hereinafter referred to as "the representative director in charge of credit and mutual-aid"), the guidance director (hereinafter referred to as "the guidance director"), the senior managing director under Article 60 (2) of the Act (hereinafter referred to as "the senior managing director"), or the chairperson of a credit cooperative supervisory committee under Article 79-2 of the Act; the same shall apply where any registered matter is changed: <Amended on Sep. 9, 2011; Dec. 9, 2014; Apr. 23, 2024; Jan. 21, 2025; Jun. 25, 2025>

1. Name and address of an agent;

2. Name or location of the main office or its branch office in which an agent is employed;

3. Details of restriction, if the authority of an agent is restricted.

(2) A person who intends to register the appointment of an agent shall attach documents regarding the appointment of an agent, and shall attach documents stating the details of restrictions thereon for registration under paragraph (1) 3.

Article 30-2(Restrictions on candidacy of executive officers) #

(1) Pursuant to Article 64-2 (10) of the Act, any of the following persons shall not be allowed to run for an executive officer of the Federation; provided, subparagraph 1 shall not apply where an executive officer who holds office runs for such position: <Amended on Apr. 19, 2022>

1. A person who has not resigned from the position of an executive officer of the Federation by the day immediately before the commencement of candidate registration;

2. A person who has not resigned from the position of a public official (excluding a public official who takes office by election) by the day immediately before the commencement of candidate registration.

(2) No person who intends to be elected as an executive officer of the Federation shall be allowed to run for the office of 2 or more executive officers.

[This Article Added on Dec. 9, 2014]

Article 30-3(Personnel recommendation committee) #

(1) The personnel recommendation committee established under Article 64-3 of the Act (hereafter referred to as the "Committee" in this Article) shall be composed of 7 members, including 1 chairperson.

(2) The members of the Committee shall be commissioned by the board of directors from among the following persons: <Amended on Jul. 26, 2017; Oct. 8, 2024>

1. 1 chairperson of the board of directors of credit cooperatives, who is not a director of the Federation;

2. 1 chairperson of the board of directors of credit cooperatives who is a director of the Federation;

3. 4 persons recommended as follows, from among outside experts (excluding public officials) who have extensive knowledge of and experience in finance, law, accounting, auditing or personnel;

(a) 1 person recommended by the Minister of the Interior and Safety;

(b) 1 person recommended by the Chairperson of the Financial Services Commission;

(c) 1 person recommended by the Council formed under Article 8 (2) of the Framework Act on Cooperatives;

(d) 1 person recommended by academic societies related to cooperatives, which are non-profit corporations established under Article 32 of the Civil Act;

4. 1 outside expert (excluding a public official) who has extensive knowledge of and experience in finance, law, accounting, auditing or personnel.

(3) The chairperson of the Committee shall be elected by and from among the outside expert members under paragraph (2) 3 and 4. <Amended on Oct. 8, 2024>

(4) The chairperson of the Committee shall convene and preside over meetings of the Committee.

(5) A majority of the members of the Committee shall constitute a quorum, and any resolution thereof shall require the concurring vote of a majority of those present.

(6) Except as provided in paragraphs (1) through (5), matters necessary for the operation of the Committee shall be prescribed by the articles of incorporation.

[This Article Added on Jul. 5, 2016]

Article 31(Business) #

(1) Article 12 (3) shall apply mutatis mutandis to the Federation. In such cases, "Article 28 (1) 6 and 7 of the Act" in the provisions, with the exception of the subparagraphs, of Article 12 (3) shall be construed as "Article 67 (1) 7 of the Act," "credit cooperatives" as the "Federation," and the "Federation, the State or public organizations" as the "State or public organizations". <Amended on Sep. 9, 2011>

(2) "Safeguard deposit" in Article 67 (1) 5 (d) of the Act means the safekeeping of securities, precious metals, and documents.

Article 32(Borrowing of funds) #

(1) In accordance with Article 28 (3) of the Act applied mutatis mutandis pursuant to Article 67 (5) of the Act, the Federation may borrow necessary funds from the State, public organizations, or financial institutions. <Amended on Sep. 9, 2011; Oct. 4, 2023>

(2) The limits on the borrowing of funds required under paragraph (1) shall not exceed five times the aggregate of the total amount of investment and reserves.

Article 32-2(Lease of real estate for business purposes) #

Article 16-2 shall apply mutatis mutandis to the lease of real estate for business purposes owned by the Federation under Article 28 (7) of the Act which is applied mutatis mutandis pursuant to Article 67 (5) of the Act.

[This Article Added on Oct. 4, 2023]

Article 33(Management of surplus funds) #

The Federation shall manage its surplus funds by the following methods: <Amended on Feb. 29, 2008; Sep. 9, 2011; Mar. 23, 2013; Nov. 19, 2014; Jul. 26, 2017>

1. A deposit with a financial institution or a money trust with a trust business entity;

2. Purchase of national bonds, local government bonds, and securities determined by the president;

3. Other methods determined by the Minister of the Interior and Safety in consultation with the Chairperson of the Financial Services Commission within the extent not to undermine the stability and profitability of surplus funds.

Article 34(Mutual aid business) #

The Minister of the Interior and Safety who intends to authorize the mutual aid regulations of the Federation pursuant to Article 68 (1) and (3) of the Act shall consult with the Financial Services Commission in advance. <Amended on Feb. 29, 2008; Sep. 9, 2011; Mar. 23, 2013; Nov. 19, 2014; Dec. 9, 2014; Jul. 26, 2017>

Article 35(Functions of mutual-aid grievance mediation deliberative committee) #

The Mutual-Aid Grievance Mediation Deliberative Committee under Article 69 (1) of the Act (hereafter referred to as the "Committee" in Articles 36 through 39) shall deliberate on and mediate grievances over mutual aid dealt with by the representative director in charge of credit and mutual-aid, such as termination of mutual aid contracts and payment of mutual aid funds. <Amended on Dec. 9, 2014>

Article 36(Composition of committee) #

(1) The Committee shall be composed of not less than 5 but not more than 9 members, including 1 chairperson.

(2) The chairperson shall be elected from among and by the members of the Committee, and the members shall be commissioned by the president from among the following persons: <Amended on Sep. 9, 2011>

1. A person who is qualified as an attorney-at-law;

2. A person who has majored in a field related to mutual aid (including insurance studies) and served or has served as an associate professor or higher at a university;

3. A person who has at least 10 years' work experience in an institution, organization, or business entity in the field of mutual aid (including insurance);

4. A person who is qualified as a specialist;

5. A person who is qualified as a certified claims adjuster;

6. A person who has at least 10 years' work experience in consumer protection at the Korea Consumer Agency under the Framework Act on Consumers or a consumer organization.

(3) Deleted. <Dec. 9, 2014>

(4) A majority of the members of the Committee shall constitute a quorum, and any resolution thereof shall require the concurring vote of a majority of those present.

(5) Matters necessary for the composition and operation of the Committee shall be prescribed by Decree of the Ministry of the Interior and Safety. <Amended on Feb. 29, 2008; Mar. 23, 2013; Nov. 19, 2014; Jul. 26, 2017>

Article 37(Application for grievance mediation) #

A person who intends to apply for grievance mediation pursuant to Article 35 shall submit an application for grievance mediation to the president, along with the following documents: <Amended on Sep. 9, 2011>

1. Documents evidencing grounds for filing an application for grievance mediation and relevant facts;

2. A power of attorney, if an application is filed by an agent;

3. Other evidential documents and data necessary for mediation.

Article 38(Procedures for deliberation on grievance mediation) #

(1) Upon receipt of an application for grievance mediation under Article 37, the president shall refer it to the Committee without delay. <Amended on Sep. 9, 2011>

(2) The Committee shall deliberate on and mediate a grievance within 60 days from the date of receipt of an application for grievance mediation.

(3) The Committee which deems the supplementation of the related data, etc. necessary may request that the applicant for grievance mediation supplement the such data, etc. within a reasonable period. In such cases, the period for supplementation shall not be included in the period for deliberation under paragraph (2).

(4) If the committee recognizes it necessary to hear the opinions of an applicant for grievance mediation or external experts, it may have them attend the meeting and state their opinions.

Article 39(Notification of results of grievance mediation) #

(1) The chairperson shall notify the president of the results of grievance mediation under Article 38 (2), and the representative director in charge of credit and mutual-aid shall comply with the results of grievance mediation by the Committee. <Amended on Sep. 9, 2011; Dec. 9, 2014>

(2) The president shall notify the results, etc. of grievance mediation by the Committee to the applicant without delay. <Amended on Sep. 9, 2011>

Article 39-2 #

Deleted. <Oct. 4, 2023>

Article 40(Accounting) #

(1) The accounts of the Federation shall be classified into general accounts and special accounts, and the business sectors of each account shall be prescribed by the articles of incorporation. <Amended on Sep. 9, 2011>

(2) The National Federation may transfer part of its proceeds from each account to another following a resolution of the general meeting; provided, a depositor protection reserve under Article 71 of the Act (hereinafter referred to as the "Reserve") shall not be transferred to another account. <Amended on Sep. 9, 2011>

(3) Except as provided in paragraphs (1) and (2), matters necessary for the accounting of the Federation shall be determined by the president. <Amended on Sep. 9, 2011>

Article 41(Reduction of capital) #

(1) Where the Federation reduces its capital pursuant to Article 35 (6) of the Act, applied mutatis mutandis pursuant to Article 70 (4) of the Act, it shall publicly announce the matters referred to in the subparagraphs of Article 20 (1) in at least one daily newspaper published by the Seoul Metropolitan Government, on its website, broadcasting, etc. at least once, within 10 days from the date on which a resolution is adopted at a general meeting. <Amended on Sep. 9, 2011; Nov. 24, 2020>

(2) Article 20 (2) shall apply mutatis mutandis to the period for filing an objection against capital reduction under paragraph (1). In such cases, "paragraph (1) 3" shall be construed as "paragraph (1)".

Article 41-2(Public announcement of issuance of preferential investment securities) #

When the Federation issues preferential investment under Article 70-2 (1) of the Act, it shall publicly announce the details of such preferential investment, the number of investment units, the issue price, the payment deadline and the invitation method, and notify investors and preferential investors accordingly at least 2 weeks before the payment deadline.

[This Article Added on Sep. 9, 2011]

Article 41-3(Subscription to preferential investment) #

(1) A person who intends to subscribe to preferential investment shall state the number of such preferential investment units, the value of underwriting thereof and address in a written subscription for preferential investment, and shall affix his or her name, seal or signature thereto.

(2) The form of a written subscription for preferential investment shall be prepared by the president, and shall include the following matters:

1. Name of the Federation;

2. Value per unit of preferential investment and the total number of investment units;

3. The upper limit of the total number of preferential investment units;

4. Types of preferential investment already issued and the number of investment units by type;

5. Value of preferential investment securities to be issued and date of payment;

6. Par value, details and number of units of preferential investment to be issued;

7. Matters regarding optional redemption of preferential investment under Article 41-8, if any.

[This Article Added on Sep. 9, 2011]

Article 41-4(Payment of preferential investment) #

(1) A person who has subscribed to preferential investment may underwrite preferential investment for the number of preferential investment units allocated by the president.

(2) A person who intends to underwrite preferential investment under paragraph (1) shall pay the full amount of the issue price of the preferential investment by the payment deadline.

(3) A person who has underwritten preferential investment shall be a preferential investor from the date following the payment deadline of the issue price of the preferential investment.

[This Article Added on Sep. 9, 2011]

Article 41-5(Issuance of preferential investment securities) #

Preferential investment securities (hereinafter referred to as "securities") shall be in registered form and shall not be issued unless the preferential investment is paid in full.

[This Article Added on Sep. 9, 2011]

Article 41-6(Matters to be stated in securities) #

Securities shall include the following matters and shall be signed and sealed by the president:

1. Name of the Federation;

2. Par value of preferential investment;

3. Details of preferential investment;

4. Securities number;

5. Date of issuance;

6. Number of preferential investment units;

7. Name of a preferential investor (in the case of a corporation, referring to the name of the corporation; hereinafter the same shall apply).

[This Article Added on Sep. 9, 2011]

Article 41-7(Keeping of list of preferential investors and matters to be stated therein) #

The Federation shall keep a list of preferential investors in its main office and state the following matters therein:

1. Name and address of the holder of securities;

2. Number of securities and their policy number;

3. Date of acquisition of securities.

[This Article Added on Sep. 9, 2011]

Article 41-8(Purchase and retirement of preferential investment) #

The Federation may purchase and retire preferential investment following a resolution of the board of directors.

[This Article Added on Sep. 9, 2011]

Article 41-9(Notice and peremptory notice) #

Notice or peremptory notice to an applicant for preferential investment or a preferential investor shall be given at the address written in the subscription for preferential investment or in the list of preferential investors, except where the relevant address has been separately notified to the Federation.

[This Article Added on Sep. 9, 2011]

Article 42(Other proceeds) #

Other proceeds under Articles 71 (1) and (4) and 72-3 (1) 1 and 2 of the Act shall be the separate deposits of a credit cooperative. <Amended on Jul. 5, 2016>

Article 43(Composition of management committee of depositor protection reserve) #

(1) The Committee for the Management of Depositor Protection Reserves under Article 71 (3) of the Act (hereinafter referred to as the "Management Committee") shall be composed of 9 members, including 1 chairperson. <Amended on Sep. 9, 2011; Oct. 4, 2023>

(2) The chairperson shall be a person designated by the president from among the directors of the Federation, and the members shall be persons commissioned by the president from among the following persons: <Amended on Feb. 29, 2008; Sep. 9, 2011; Mar. 23, 2013; Nov. 19, 2014; Jul. 26, 2017; Apr. 19, 2022; Oct. 4, 2023>

1. 2 public officials designated by the Minister of the Interior and Safety;

2. 3 persons designated by the Minister of the Interior and Safety from among persons who are not executive officers and employees of credit cooperatives and have extensive knowledge of and experience in finance, accounting, or law;

3. A director of the Federation who is not the chairperson of the board of directors of a credit cooperative;

4. 2 chairpersons of the board of directors of credit cooperatives.

(3) Members referred to in paragraph (2) 3 and 4 shall be commissioned by the president with the consent of the board of directors. <Amended on Sep. 9, 2011; Mar. 23, 2013; Nov. 19, 2014; Jul. 26, 2017; Oct. 4, 2023>

(4) The term of office of members under paragraph (2) 2 through 4 shall be 3 years; provided, a member commissioned under paragraph (2) 3 and 4 who loses his or her position during the term of office shall lose his or her membership. <Amended on Sep. 9, 2011; Oct. 4, 2023>

Article 44(Functions of managing committee) #

The Management Committee shall deliberate on and determine important matters regarding the operation of reserves, such as the repayment of deposits, installment savings and other proceeds of credit cooperatives, mutual aid funds of the Federation, and separate deposits for the settlement of cashier's checks (hereinafter referred to as "separate deposits of the Federation"). <Amended on Dec. 13, 2007; Sep. 9, 2011>

Article 45(Operation of management committee) #

(1) The chairperson shall convene and preside over meetings of the Management Committee.

(2) When the chairperson is unable to perform his or her duties due to unavoidable reasons, a member designated in advance by the chairperson shall act on behalf of the chairperson.

(3) A majority of the members of the Management Committee shall constitute a quorum, and any resolution thereof shall require the concurring vote of a majority of those present.

(4) The Management Committee shall have 1 executive secretary and 1 clerk to handle administrative affairs, who shall be appointed by the president from among the employees of the Federation in charge of affairs regarding the Reserve. <Amended on Sep. 9, 2011>

(5) The executive secretary under paragraph (4) may attend and speak at a meeting of the Management Committee.

(6) Except as provided in this Decree, matters necessary for the operation of the Management Committee shall be determined by the chairperson following a resolution of the Management Committee.

Article 46(Operation of reserve) #

(1) The Reserve under Article 71 (1) of the Act shall be managed in a special account.

(2) Deleted. <Jul. 5, 2016>

(3) The scope of payment by subrogation under Article 72-3 (1) 1 of the Act shall be the principal of deposits, installment savings, other proceeds, mutual aid funds of the Federation, and separate deposits, and interest on the principal thereof. In such cases, the interest shall be the amount obtained by multiplying the principal by the interest rate determined by the Management Committee. <Amended on Dec. 13, 2007; Sep. 9, 2011; Jul. 5, 2016; Oct. 4, 2023>

(4) The limit of subrogation to the same person under Article 72-3 (1) 1 of the Act shall be classified as follows: <Added on Oct. 4, 2023; Jul. 29, 2025>

1. In the case of a credit cooperative: 100 million won in total;

2. In the case of the Federation: The amount classified as follows:

(a) Any of the following mutual aid funds or separate deposits: 100 million won each:

1) Mutual aid funds paid in accordance with a mutual aid contract for a pension savings account under Article 40-2 (1) 1 (c) of the Enforcement Decree of the Income Tax Act (including a mutual aid contract for a pension savings account under Article 41 of the Addenda to the Restriction of Special Taxation Act (Act No. 11614));

2) Mutual-aid funds (excluding mutual-aid funds paid following the expiration of the mutual-aid period) to be paid under the mutual-aid contract [excluding mutual-aid contracts under 1)];

3) A separate deposit for the settlement of a cashier's check;

(b) Mutual aid funds other than those referred to in item (a): 100 million won in total.

(5) The methods of using the Reserve under Article 72-3 (1) of the Act and other necessary matters shall be determined by the president following a resolution of the Management Committee. <Amended on Sep. 9, 2011; Jul. 5, 2016; Oct. 4, 2023>

(6) The Federation may mange the surplus funds of the Reserve by the following methods: <Amended on Oct. 8, 2024>

1. Deposit or short-term loans to financial institutions designated by the Management Committee;

2. Purchase of national bonds and local government bonds, and securities designated by the Management Committee;

Article 47(Contributions) #

(1) The amount of contributions to be paid by a credit cooperative or the Federation pursuant to Article 72 (1) 1 of the Act shall be calculated according to the following formula: <Amended on Sep. 9, 2011>

1. Contributions to deposits and installment savings: The total amount of deposits (referring to special deposits of the Federation in the case of the Federation) and installment savings at the end of each quarter × (Rate determined by the Management Committee within the range of 30/10,000) × 1/4;

2. Contributions of mutual aid funds: (Balance of liability reserve at the end of each business year + the total amount of mutual aid fees at the end of each business year) × 1/2 × (ratio determined by the Management Committee within the limit of 30/10,000); In such cases, the mutual aid fee reserve included in the liability reserve shall be calculated based on the amount to be paid at the time of termination of the contract.

(2) Contributions under paragraph (1) 1 shall be paid within 1 month after the end of each quarter, and contributions under paragraph (1) 2 shall be paid within 3 months after the end of each business year. <Amended on Sep. 9, 2011>

(3) Where a credit cooperative obtains authorization for incorporation (excluding a consolidation) under paragraph (1), it shall pay contributions, the amount of which is obtained by multiplying the ratio determined by the Management Committee within the limit of not exceeding 10/100 of the paid-in capital, within 1 month from the date on which the authorization is granted. <Added on Sep. 9, 2011>

(4) Matters necessary for the limits on the payment of contributions under paragraph (1), methods of payment, etc. shall be determined by the Management Committee. <Amended on Sep. 9, 2011>

Article 47-2(Reduction of or exemption from contributions) #

(1) Where the accumulated amount of the Reserve as of the end of the immediately preceding fiscal year of the Federation becomes not less than the lower limit but not more than the upper limit of the target accumulated amount of the Reserve established or re-established under Article 72-2 (1) through (3) of the Act (including the upper and lower limits; hereafter in this Article referred to as "target amount") pursuant to Article 72 (4) of the Act, the Federation shall reduce the contributions paid by the Federation or a credit cooperative for the relevant fiscal year following a resolution of the Management Committee.

(2) Where the accumulated amount of reserves of the Federation as of the end of the immediately preceding fiscal year exceeds the upper limit of the target amount of reserves pursuant to Article 72-2 (4) of the Act, the Federation shall exempt the Federation or a credit cooperative from the payment of contributions for the relevant fiscal year, following a resolution of the Management Committee.

(3) Matters necessary for the detailed procedures, methods, etc. for setting the target amount and reducing or exempting contributions under paragraphs (1) and (2) shall be determined by the Federation, following a resolution of the Management Committee.

(4) The Federation shall publicly announce the matters determined under paragraph (3) on its website.

[This Article Added on Jul. 5, 2016]

Article 47-3(Types of public institutions) #

"Public institutions prescribed by Presidential Decree" in Article 73-2 of the Act means the following institutions:

1. Public institutions established under the Act on the Management of Public Institutions;

2. Special corporations incorporated under special Acts;

3. Clearing houses designated under the Bills of Exchange and Promissory Notes Act or the Check Act.

[This Article Added on Jul. 5, 2016]

Article 47-4(Non-business-use assets) #

"Non-performing loans and assets acquired as a result of such loans, and other non-business-use assets prescribed by Presidential Decree" in the main clause of Article 73-3 (1) of the Act means any of the following:

1. Assets acquired as a result of non-performing loans by persons falling under any of the subparagraphs of Article 73-3 (1) of the Act;

2. Fixed assets (including leasehold deposits; the same shall apply in this Article) that a credit cooperative is required to dispose of pursuant to the prompt corrective actions under Article 80-2 of the Act;

3. Fixed assets that are no longer used for business purposes by a credit cooperative due to merger, business transfer, contractual succession, or other reasons;

4. Fixed assets that are no longer used for business purposes due to business improvement, etc. by persons falling under any of the subparagraphs of Article 73-3 (1) of the Act.

[This Article Added on Jun. 25, 2025]

[Previous Article 47-4 moved to Article 47-6 <Jun. 25, 2025>]

Article 47-5(Determination of acquisition price of non-performing assets) #

(1) Where the Community Credit Cooperative Asset Management Corporation under Article 73-3 (1) of the Act (hereinafter referred to as the "Management Corporation") acquires non-performing assets pursuant to Article 73-4 of the Act, the acquisition price shall be determined based on an objective value, such as the appraised value of the collateral or non-business-use assets related to the non-performing loans subject to acquisition, as assessed by an appraisal corporation, etc. under subparagraph 4 of Article 2 of the Act on Appraisal and Certified Appraisers, taking into account the seniority of claims, property rights, leasehold rights, and other relevant factors.

(2) Where it is difficult to determine the price of non-performing assets in advance under paragraph (1), the acquisition contract may include a provision that the difference between the acquisition price and the disposal price shall be settled after the transaction.

[This Article Added on Jun. 25, 2025]

Article 47-6(Request for support) #

"The head of an agency prescribed by Presidential Decree" in Article 74 (4) of the Act means the following:

1. The head of a premium rate calculation agency under Article 176 of the Insurance Business Act;

2. The President of the Korea Real Estate Board under Article 2 of the Korea Real Estate Board Act;

3. The President of the Korea Asset Management Corporation established under Article 6 of the Act on the Establishment of Korea Asset Management Corporation.

[This Article Added on Oct. 4, 2023]

[Moved from Article 47-4 <Jun. 25, 2025>]

Article 47-7(Scope of employees to whom only demands for action may be made) #

"Employees prescribed by Presidential Decree" in the proviso of the part other than the subparagraphs of Article 74-2 (1) of the Act means employees of credit cooperatives and employees of the Federation and the Management Corporation, excluding the managing director and executive directors under Article 19 (9) of the Act.

[This Article Added on Jun. 25, 2025]

Article 48(Management disclosure) #

(1) Pursuant to Article 75 of the Act, a credit cooperative and the Federation shall disclose the following matters within 3 months from the date of settlement of accounts: <Amended on Sep. 9, 2011; Jun. 25, 2025>

1. Matters regarding financial affairs, and profits and losses;

2. Matters regarding the procurement and operation of funds;

3. Matters regarding management indicators that represent the soundness, profitability, productivity, etc. of credit cooperatives;

4. Matters to be reported under Article 17 (6) 2 through 4 of the Act and the results of actions taken thereon.

(2) The president may determine detailed standards for matters to be disclosed under the subparagraphs of paragraph (1). <Amended on Sep. 9, 2011>

Article 49(Credit cooperatives subject to external audit) #

(1) "Credit cooperatives prescribed by Presidential Decree" in Article 76 (3) of the Act means the following credit cooperatives: <Amended on Sep. 9, 2011; Jun. 26, 2018; Jun. 25, 2025>

1. A credit cooperative whose total assets are at least 50 billion won as at the end of the immediately preceding business year according to the results of an inspection, accounting audit, or management assessment conducted under Articles 74 (3) and 79 (3), 79 (3), (4), and (6) of the Act;

2. Any of the following credit cooperatives whose total assets are less than 50 billion won as at the end of the immediately preceding business year according to the results of an inspection, accounting audit, or management assessment conducted under Articles 74 (3) and 79 (3), (4), and (6) of the Act:

(a) A credit cooperative that overestimates its profits in excess of the amount equivalent to 5/100 of the equity capital (or 100 million won, if the amount is less than 100 million won) as at the end of the immediately preceding business year;

(b) A credit cooperative that underestimates its losses in excess of the amount equivalent to 5/100 of the equity capital (or 100 million won, if the amount is less than 100 million won) as at the end of the immediately preceding business year.

(2) "Credit cooperatives prescribed by Presidential Decree" in Article 76 (4) of the Act means credit cooperatives whose total assets as of the end of the immediately preceding fiscal year amount to at least 300 billion won. <Added on Jun. 25, 2025>

Article 50(Standards for soundness of business management) #

The Minister of the Interior and Safety shall include the following matters in the standards for soundness of business management under Article 77 (1) of the Act: <Amended on Feb. 29, 2008; Mar. 23, 2013; Nov. 19, 2014; Jul. 26, 2017; Oct. 4, 2023>

1. Matters regarding soundness in financial structure:

(a) Ratio of equity capital to assets, etc.;

(b) Ratio of reserves for bad debts to amounts of reserves required to be accumulated;

(c) Ratio of retirement benefits appropriation fund to estimated amounts of retirement benefits;

2. Matters regarding the soundness of assets;

(a) Scope of assets subject to classification of asset soundness;

(b) Classification levels for asset soundness and standards therefor;

3. Matters regarding the accounting and settlement of accounts:

(a) Standards for the indication of the financial status and the state of profit or loss;

(b) Standards for the accumulation of allowances and reserves;

(c) Standards for writing-off bad debts;

4. Matters regarding risk management;

(a) Basic policy on risk management;

(b) Management's roles for risk management;

(c) Internal management system necessary for risk management;

5. Other following matters necessary for securing the soundness of management:

(a) Standards for loans against deposits, installment savings, investments, etc.;

(b) Standards for limit of loans, etc. by business type;

(c) Standards for holding liquid assets against liquid liabilities.

Article 51-2(Management of sensitive information and personally identifiable information) #

(1) The Minister of the Interior and Safety (including persons to whom the authority of the Minister of the Interior and Safety is delegated pursuant to Article 51) or the president may manage information (limited to business affairs referred to in subparagraphs 1 through 3) corresponding to criminal history records under subparagraph 2 of Article 18 of the Enforcement Decree of the Personal Information Protection Act and data containing resident registration numbers, passport numbers, or alien registration numbers under subparagraph 1, 2 or 4 of Article 19 of that Enforcement Decree; provided, the business affairs referred to in subparagraphs 1, 2, 6 and 7 shall be limited to the Minister of the Interior and Safety: <Amended on Jul. 5, 2016; Jul. 26, 2017; Jun. 26, 2018; Sep. 8, 2020; Apr. 23, 2024; Jun. 25, 2025>

1. Business affairs regarding authorization under Articles 7 (2) and (3), 7-2, and 54 (3) of the Act, applied mutatis mutandis pursuant to Article 54 (4) of the Act;

2. Business affairs regarding required supervisory measures, such as supervision, inspection and rectification, sanctions against executive officers and employees, administrative dispositions, and revocation of authorization for incorporation under Articles 74 (3) 2 of the Act, applied mutatis mutandis pursuant to Articles 74 (excluding cases falling under the proviso of Article 74 (1) 1 of the Act), 74-2, 74-3 (1), and 54 (4) of the Act;

3. Business affairs regarding sanctions against executive officers and employees who are prosecuted, or notification of orders issued to executives and employees who retired or resigned from office under Article 79-4 or 79-5 of the Act;

4. Business affairs regarding management guidance under Article 80 of the Act;

4-2. Business affairs regarding prompt corrective measures under Article 80-2 of the Act;

5. Business affairs regarding contract transfer under Article 80-3 of the Act;

6. Business affairs regarding appointment or dismissal of a manager under Article 80-3 or 80-5 of the Act;

7. Business affairs regarding filing for bankruptcy under Article 80-6 of the Act;

8. Business affairs regarding hearings under Article 83 of the Act.

(2) A Special Self-Governing City Mayor, a Special Self-Governing Province Governor, the head of a Si/Gun/Gu, or the president may manage information (limited to the business affairs referred to in subparagraphs 1 and 2) corresponding to criminal history records under subparagraph 2 of Article 18 of the Enforcement Decree of the Personal Information Protection Act and data containing resident registration numbers, passport numbers, or alien registration numbers under subparagraph 1, 2, or 4 of Article 19 of that Decree, if unavoidable for performing the following affairs; provided, the business affairs under subparagraph 3 shall be limited to a Special Self-Governing City Mayor, a Special Self-Governing Province Governor, or the head of a Si/Gun/Gu: <Amended on Sep. 8, 2020; Apr. 23, 2024>

Article 51-3(Qualification requirements for members of credit cooperative supervisory committee) #

"Requirements prescribed by Presidential Decree" in Article 79-3 (2) of the Act means any of the following cases: <Amended on Oct. 8, 2024>

1. A person who has at least 10 years' work experience as a full-time employee in the fields of audit, supervision (including guidance) or accounting at the Federation; provided, this shall not apply where he or she has worked as an executive or employee within the last 3 years at the Federation (excluding where he or she is working or worked as a member of the credit cooperative supervisory committee);

2. A person who has at least 10 years' work experience as a full-time employee in the audit or accounting sector of a bank under the Banking Act;

3. A person who has at least 10 years' work experience as a public official or a full-time employee in a finance-related State agency, research institute, or educational institution, or the Financial Supervisory Service;

4. A person who has at least 5 years' work experience as a judge, prosecutor, military judicial officer, attorney-at-law, or certified public accountant.

[This Article Added on Jun. 26, 2018]

Article 52(Methods of management guidance) #

(1) The Minister of the Interior and Safety who intends to provide management guidance pursuant to Article 80 (1) of the Act shall notify the relevant credit cooperative in writing of the grounds, period, etc. for such management guidance. <Amended on Feb. 29, 2008; Mar. 23, 2013; Nov. 19, 2014; Jul. 26, 2017>

(2) Management guidance under Article 80 (1) of the Act shall be provided in writing, upon receipt of necessary data; provided, in any of the following cases, employees may be dispatched to the office of a credit cooperative to provide on-site guidance: <Amended on Jul. 5, 2016; Jul. 26, 2017>

1. Where a credit cooperative under management guidance is highly likely to engage in illegal management;

2. Where the results of collecting illegal or non-performing loans are insufficient and the credit cooperative is deemed unable to correct it on its own;

3. Where illegal or non-performing loans have been taken out additionally after the commencement of business guidance;

4. Other matters determined by the Minister of the Interior and Safety regarding the management of credit cooperatives.

(3) "Matters prescribed by Presidential Decree" in Article 80 (2) 3 of the Act means the following:

1. Correction of illegal or unjust acts;

2. Disposal of non-performing assets;

3. Improvement of human resources and organizational operation.

(4) Matters necessary for the methods, etc. of providing business guidance under paragraph (1) shall be determined by the Minister of the Interior and Safety. <Amended on Feb. 29, 2008; Mar. 23, 2013; Nov. 19, 2014; Jul. 26, 2017>

Article 53(Period of management guidance) #

(1) The period of management guidance under Article 80 (1) of the Act shall not exceed 6 months; provided, the Minister of the Interior and Safety may extend the period of management guidance on a 6-month basis, if deemed necessary to protect members. <Amended on Feb. 29, 2008; Mar. 23, 2013; Nov. 19, 2014; Jul. 26, 2017>

(2) The Minister of the Interior and Safety who intends to extend the period of management guidance pursuant to the proviso of paragraph (1) shall notify the relevant credit cooperative of such fact in writing no later than 15 days before the expiration of the period of management guidance, specifying the grounds therefor. <Amended on Feb. 29, 2008; Mar. 23, 2013; Nov. 19, 2014; Jul. 26, 2017>

Article 54(Suspension of payment of obligations) #

(1) Obligations for which the Minister of the Interior and Safety may suspend payment pursuant to Article 80 (3) of the Act shall be obligations other than those falling under any of the following subparagraphs. <Amended on Feb. 29, 2008; Jul. 24, 2012; Mar. 23, 2013; Nov. 19, 2014; Jul. 26, 2017>

1. Obligations to pay taxes and public charges or rents;

2. Obligations for which the right to preferential repayment is granted pursuant to Article 38 (2) of the Labor Standards Act and Article 12 (2) of the Act on the Guarantee of Workers' Retirement Benefits;

3. Other obligations the payment of which is deemed necessary by the Minister of the Interior and Safety for the maintenance and management of a credit cooperative.

(2) When the Minister of the Interior and Safety entirely cancels the suspension of payment of obligations pursuant to Article 80 (5) of the Act, the Minister shall complete the management guidance for the credit cooperative without delay. <Amended on Feb. 29, 2008; Mar. 23, 2013; Nov. 19, 2014; Jul. 26, 2017>

Article 55(Suspension of duties of executive officers) #

The duties of an executive officer under Article 80 (3) of the Act shall be suspended to the minimum extent necessary to not impede management guidance.

Article 56(Entrustment of management guidance) #

Pursuant to Article 80 (6) of the Act, the Minister of the Interior and Safety shall entrust management guidance (including affairs related to the establishment of detailed matters necessary for the methods, etc. of providing management guidance under Article 52 (4) of this Decree) to the president; provided, any of the following affairs regarding management guidance shall be excluded herefrom: <Amended on Feb. 29, 2008; Sep. 9, 2011; Mar. 23, 2013; Nov. 19, 2014; Jul. 5, 2016; Jul. 26, 2017>

1. Management guidance proposed by the president to the Minister of the Interior and Safety pursuant to Article 80 (1) 4 of the Act;

2. Matters falling under Article 52 (2) 4.

[Title Amended on Jul. 5, 2016]

Article 56-2(Public announcement of decision on transfer of contracts) #

A decision on the transfer of contracts under Article 80-4 (2) of the Act shall be publicly announced on the bulletin boards of the main office and branch offices, in at least one daily newspaper, or on the website of the Federation. <Amended on Dec. 12, 2017; Oct. 4, 2023; Jun. 25, 2025>

[This Article Added on Sep. 9, 2011]

Article 56-3(Scope of specially related persons) #

"A person who has an interest in or special relation prescribed by Presidential Decree" in Article 80-5 (1) of the Act means any of the following persons: <Amended on Dec. 12, 2017; Jun. 25, 2025>

1. An executive officer or employee who is responsible for insolvency in a credit cooperative, his or her spouse, or his or her relatives by blood or marriage within the fourth degree of consanguinity;

2. A person who has received an illegal or non-performing loan from a credit cooperative, his or her spouse, or his or her relatives by blood or marriage within the fourth degree of consanguinity.

[This Article Added on Sep. 9, 2011]

Article 57(Hearing procedures) #

(1) Where the Minister of the Interior and Safety, a Special Self-Governing City Mayor, a Special Self-Governing Province Governor, the head of a Si/Gun/Gu, or the president intends to hold a hearing pursuant to Article 83 of the Act, he or she shall notify the other party to the disposition or his or her agent of the grounds, date, time, place, etc. of the hearing in writing no later than 7 days before the date of the hearing. <Amended on Feb. 29, 2008; Sep. 9, 2011; Mar. 23, 2013; Nov. 19, 2014; Jul. 26, 2017; Sep. 8, 2020>

(2) The other party to the disposition or his or her agent, in receipt of the notification under paragraph (1), may appear at the designated date and time and place to state his or her opinion or present his or her opinion in writing.

(3) Where the other party to a disposition or his or her agent appears and states his or her opinion pursuant to paragraph (2), he or she shall prepare a written summary of the disposition and have the person who has made the statement sign and seal after confirming it.

(4) The notice under paragraph (1) shall specifically state that the person who fails to comply with a hearing without good cause shall be deemed to have abandoned the opportunity to state his or her opinion.

Article 58(Operation of the Community Credit Cooperative Welfare Association) #

(1) The Community Credit Cooperative Welfare Association under Article 84 (1) of the Act (hereinafter referred to as the "Welfare Association") shall conduct the following projects:

1. Payment of benefits to members of the Welfare Association;

2. Welfare and support projects for members of the Welfare Association;

3. Projects for the formation of funds;

4. Other projects prescribed by the articles of incorporation that are incidental to the projects under subparagraphs 1 through 3.

(2) The Welfare Association may conduct profit-making businesses to the extent necessary for achieving its purposes.

(3) The Welfare Association may, if necessary for achieving its purposes, require its members to pay a certain amount pursuant to its articles of incorporation.

(4) The Federation may contribute to and support the Welfare Association and may entrust part of its business to the Welfare Association for implementation.

[This Article Wholly Amended on Jun. 25, 2025]

Article 59(Review of regulations) #

The Minister of the Interior and Safety shall review the validity of each of the following matters every three years (referring to by January 1 of every third year, based on the reference date specified in each subparagraph) and take necessary measures such as making improvements:

1. The asset size, financial structure, and number of full-time executive officers of credit cooperatives eligible to appoint full-time executive officers under Article 7: January 1, 2015;

2. Qualification requirements for full-time executive officers under Article 8: January 1, 2015;

3. Scope of regional credit cooperatives required to appoint a full-time auditor under Article 8-2: January 1, 2026;

4. Scope of credit cooperatives eligible to choose the method of electing a chairperson under Article 8-3: January 1, 2024;

5. Scope of credit cooperatives eligible to appoint senior staff members under Article 10 (1): January 1, 2024;

6. Scope of credit cooperatives eligible to conduct performance evaluations of full-time directors under Article 10-2: January 1, 2026;

7. Limit on borrowing of funds under Article 14 (2): January 1, 2015;

8. Qualifications of audit and inspection committee members under Article 24-2: January 1, 2024;

9. Qualifications of compliance officers under Article 26 (1): January 1, 2015;

10. Qualifications of full-time directors under Article 27: January 1, 2015;

11. Composition criteria of the personnel recommendation committee under Article 30-3 (1) and (2): January 1, 2024;

12. Scope of employees to whom only demands for action may be made under Article 47-7: January 1, 2026;

13. Criteria for credit cooperatives subject to external audit under Article 49: January 1, 2015;

14. Qualifications of members of the credit cooperative supervisory committee under Article 51-3: January 1, 2024;

15. Method of public announcement for contractual succession decisions under Article 56-2: January 1, 2015;

16. Scope of specially related persons, etc. under Article 56-3: January 1, 2015.

[This Article Wholly Amended on Jun. 25, 2025]

Article 60(Standards for imposition of administrative fines) #

(1) The Minister of the Interior and Safety shall impose administrative fines according to the following classifications pursuant to Article 88 (1) through (3) of the Act: <Amended on May 15, 2023>

1. A credit cooperative falling under Article 88 (1) of the Act: 20 million won;

2. A credit cooperative or the Federation under Article 88 (2) of the Act: 10 million won;

3. An executive officer or employee of a credit cooperative falling under Article 88 (3) of the Act: 1 million won.

(2) The Minister of the Interior and Safety may reduce or exempt the amount of an administrative fine under paragraph (1) or increase it by up to 1/2 in consideration of the severity, frequency, motive, consequences, etc. of violations.

(3) Detailed standards for the reduction, exemption, and aggravation of administrative fines under paragraph (2) shall be determined and publicly notified by the Minister of the Interior and Safety.

[This Article Added on Jun. 26, 2018]