ENFORCEMENT DECREE OF THE DEPOSITOR PROTECTION ACT

Article 1(Purpose) #

The purpose of this Decree is to provide for the matters delegated by the Depositor Protection Act and matters necessary for its enforcement. <Amended on Feb. 28, 2007; Jun. 21, 2016>

Article 2(Financial companies excluded from insured financial companies) #

(1) "Those prescribed by Presidential Decree" in subparagraph 1 (g) of Article 2 of the Depositor Protection Act (hereinafter referred to as the "Act") means any of the following entities: <Added on Jun. 21, 2016>

1. An entity authorized to engage in the investment trading, or investment brokerage, of the debt securities defined in Article 4 (3) of the Financial Investment Services and Capital Markets Act only for professional investors referred to in Article 12 (1) 3 of that Act;

2. An entity authorized to engage in the investment brokerage of the securities defined in Article 4 (1) of the Financial Investment Services and Capital Markets Act (limited to the investment brokerage of the aforesaid securities under repurchase agreement), only for professional investors referred to in Article 12 (1) 3 of that Act;

3. An entity registered as a crowdfunding broker pursuant to Article 117-4 of the Financial Investment Services and Capital Markets Act.

(2) "Insurance company prescribed by Presidential Decree" in subparagraph 1 (i) of Article 2 of the Act means a joint stock insurance company, which mainly provides reinsurance. <Amended on Feb. 28, 2007; Jun. 9, 2009; Mar. 11, 2016; Jun. 21, 2016>

[This Article Wholly Amended on Mar. 17, 2001]

[Title Amended on Mar. 11, 2015]

Article 3(Scope of deposits, etc.) #

(1) Money raised by insured financial companies that falls under any of the following categories, under the proviso to the part, with exception of each item of subparagraph 2 of Article 2 of the Act, shall not be included in the scope of deposits, etc. <Amended on Mar. 17, 2001; Feb. 28, 2007; Feb. 29, 2008; Jun. 9, 2009; Feb. 26, 2015; Mar. 11, 2016>

1. Money raised from a government or municipality;

2. Money procured from the Bank of Korea, the Financial Supervisory Service established under the Act on the Establishment, etc. of the Financial Services Commission (hereinafter referred to as the "Financial Supervisory Service"), or the Korea Deposit Insurance Corporation established under Article 3 of the Act (hereinafter referred to as the "Corporation");

3. Money raised by insured financial companies; provided, the following cases shall be excluded.

a. Where a retirement pension business operator who performs asset management duties for the defined contribution retirement pension plan under subparagraph 9 of Article 2 of the Act on the Guarantee of Workers' Retirement Benefits (hereinafter referred to as the "defined contribution retirement pension plan") or the individual retirement pension plan under subparagraph 10 of that Article (hereinafter referred to as the "individual retirement pension plan") receives deposits of reserves (limited to reserves managed as deposits, etc.) from the insured financial company as a retirement pension trustee;

b. If money (limited to money managed as deposits, etc. in the individual savings account) is deposited from the trust business operator who opened the individual comprehensive asset management account (hereinafter referred to as "individual comprehensive asset management account") under Article 91-18 (1) of the Act on Restriction on Special Cases concerning Taxation.

(2) Money raised by insured companies prescribed in subparagraph 1 a through f of Article 2 of the Act (hereinafter referred to as “bank”), by any of the following methods, shall not be included in the scope of deposits, etc. defined in subparagraph of Article 2 (2) a of the Act: <Amended on Aug. 5, 2000; Feb. 28, 2007; Mar. 11, 2016>

1. Deleted; <Nov. 26, 2008>

2. Negotiable certificates of deposit;

3. Development trust;

4. Issue bonds;

5. Sale of repurchase agreements.

Article 3-2(Scope of electronic payment means deemed funds) #

"Electronic payment means ... as prescribed by Presidential Decree" in subparagraph 9 of Article 2 of the Act means the electronic prepayment means defined in subparagraph 14 of Article 2 of the Electronic Financial Transactions Act.

[This Article Added on Jun. 15, 2021]

Article 3-3(Scope of financial companies transferring funds) #

"Persons prescribed by Presidential Decree" in subparagraph 10 of Article 2 of the Act means the following:

1. Investment dealers and investment brokers;

2. The NongHyup Bank and cooperatives under the Agricultural Cooperatives Act;

3. Cooperatives and the credit business division of the National Forestry Cooperative Federation under the Forestry Cooperatives Act;

4. Mutual savings banks and the Korea Federation of Savings Banks under the Mutual Savings Banks Act;

5. Community credit cooperatives and the Korean Federation of Community Credit Cooperatives under the Community Credit Cooperatives Act.

6. The Suhyup Bank and cooperatives under the Fisheries Cooperatives Act;

7. Credit unions and the National Credit Union Federation of Korea under the Credit Unions Act;

8. Postal service agencies under the Postal Savings and Insurance Act;

9. Banks established upon authorization under the Banking Act;

10. Merchant banks under the Financial Investment Services and Capital Markets Act (hereinafter referred to as "merchant banks");

11. Electronic financial business entities designated by the Deposit Insurance Committee (hereinafter referred to as the "Committee") established under Article 8 of the Act among electronic financial business entities (limited to persons who provide the services referred to in Article 28 (2) 1 or 3 of the Electronic Financial Transactions Act) registered under the main clause, with the exception of the subparagraphs, of Article 28 (2) of that Act;

12. The Industrial Bank of Korea established under the Industrial Bank of Korea Act;

13. The Korea Development Bank established under the Korea Development Bank Act.

[This Article Added on Jun. 15, 2021]

Article 4(Establishment registration) #

(1) The establishment of the Corporation shall be registered at the site of its main office within two weeks from the date on which the Corporation obtains authorization of the articles of association from the Financial Services Commission. <Amended on Feb. 29, 2008>

(2) The matters to be registered for establishment by the Corporation shall be as follows: <Amended on Dec. 30, 2002>

1. Purpose;

2. Name;

3. Seat of its main office;

4. Name, resident registration number, and address of the president;

5. Names and addresses of the vice president, directors, and auditor;

6. Methods of public notification.

Article 4-2(Establishment registration of branch office) #

Where the Corporation establishes a branch office or sub-branch, it shall register the name, location, and date of establishment of the branch office or sub-branch at the location of the main office within 2 weeks after such establishment.

[This Article Wholly Amended on Jan. 21, 2025]

Article 5(Movement registration) #

(1) Where the Corporation relocates its main office, it shall register the new location and the date of relocation at the former or the new location of the office within two weeks after such relocation.

(2) Where the Corporation relocates its branch office or sub-branch, it shall register the new location and the date of relocation at the location of its main office within 2 weeks after the relocation.

[This Article Wholly Amended on Jan. 21, 2025]

Article 6(Alteration registration) #

Where any matter registered under each subparagraph of Article 4 (2) or Article 4-2 is changed (excluding cases falling under the registration of transfer under Article 5), the Corporation shall register such change at the location of its main office within 2 weeks after the change.

[This Article Wholly Amended on Jan. 21, 2025]

Article 7(Agent's appointment) #

(1) Where the Corporation appoints an agent under Article 15-2 (1) of the Act, the Corporation shall register the following matters at the location of its main office within 2 weeks after the appointment. This shall also apply where the registered matters are changed: <Amended on Jun. 7, 2000; Dec. 30, 2002; Jan. 21, 2025>

1. Name, resident registration number and address of the agent;

2. Deleted; <Dec. 30, 2002>

3. Details of restriction where the agent's powers are restricted.

(2) The staff who may be appointed as an agent to perform judicial acts on behalf of the president under Article 15-2 (2) of the Act, shall have been engaged in affairs related to a trial for at least two years. <Added on Jun. 7, 2000; Mar. 17, 2001>

Article 8(Reckoning of registration period) #

Where the Corporation's matters to be registered under the provisions of this Decree shall be authorized or approved by the Financial Services Commission, the registration period shall begin from the date on which the documents on its authorization or approval have arrived. <Amended on Feb. 29, 2008>

Article 9(Applications for registration) #

(1) An establishment registration under Article 4 shall be made by joint application of incorporators, and a registration under Articles 4-2, 5 through 7 shall be made by the application of the president of the Corporation. <Amended on Jun. 9, 2009>

(2) Registration applications under Articles 4, 4-2, 5 through 7 shall be accompanied by documents proving their causes. <Amended on Jun. 9, 2009>

Article 10(Operation of Deposit Insurance Committee) #

(1) Meetings of the Committee shall be convened by the chairperson, as prescribed by the articles of incorporation. <Amended on Mar. 17, 2001; Dec. 30, 2002; Jun. 15, 2021>

(2) The vice president, directors, and auditor of the Corporation may attend meetings of the Committee, and state their opinions. <Amended on Mar. 17, 2001; Dec. 30, 2002>

(3) The members who attend meetings of the Committee may be granted an allowance within the scope of the Corporation's budget; provided, this shall not apply where public officials attend the Committee in connection with their duties. <Amended on Mar. 17, 2001>

(4) Except as provided in this Decree, matters necessary for the operation of the Committee shall be determined by the chairperson through a resolution by the Committee. <Amended on Mar. 17, 2001>

[Title Amended on Mar. 17, 2001; Dec. 30, 2002]

Article 11(Qualifications for commissioned members of Deposit Insurance Committee) #

Members commissioned by the Financial Services Commission under Article 9 of the Act shall be those who are not disqualified as officers and employees under Article 16 of the Act, and who have extensive knowledge of and experience in finance, economy or law. <Amended on Dec. 30, 2002>

[Title Amended on Dec. 30, 2002]

Article 12(Conducting of affairs on behalf of corporation) #

(1) Agencies that conduct affairs on behalf of the Corporation under Article 20 of the Act (hereafter referred to as "agencies conducting affairs on behalf of the Corporation" in this Article) shall be as follows: <Amended on Feb. 14, 2000; Dec. 30, 2002; Feb. 28, 2007; Jun. 9, 2009; Mar. 24, 2014; Mar. 11, 2016; Feb. 17, 2022>

1. The Korea Asset Management Corporation established under the Act on the Efficient Disposal of Non-Performing Assets of Financial Companies and the Establishment of Korea Asset Management Corporation (hereinafter referred to as the "Korea Asset Management Corporation");

2. Insured financial companies;

3. Deleted; <Jun. 15, 2021>

4. National Credit Union Federation of Korea established under the Credit Unions Act ("hereinafter referred to as the "National Credit Union Federation of Korea").

(2) Where the Corporation requires an agency to conduct affairs on its behalf pursuant to Article 20 of the Act, it may pay a fee to the agency in return for conducting affairs on its behalf as determined by the Committee. <Amended on Mar. 17, 2001>

Article 12-2(Standards for recognition of insured financial companies threatened with insolvency) #

"Standards prescribed by Presidential Decree" in Article 21 (2) of the Act means standards established by the Financial Services Commission pursuant to Article 10 (2) of the Act on the Structural Improvement of the Financial Industry; provided, in cases of mutual savings banks under the Mutual Savings Banks Act, standards mean the following cases: <Amended on Feb. 28, 2007; Feb. 29, 2008; Mar. 26, 2012; Mar. 11, 2016>

1. Where an insured financial company meets standards prescribed by the Financial Services Commission pursuant to Article 10 (2) of the Act on the Structural Improvement of the Financial Industry;

2. Where the capital adequacy ratio of an insured financial company is less than the ratio obtained by adding 2/100 to the standards under subparagraph 1;

3. Where an insured financial company has recorded a net loss for the last three consecutive fiscal years;

4. Where the Corporation deems it necessary to examine an insured financial company in consultation with the Financial Supervisory Service, in consideration of the downward trend and the rate of decline in its capital adequacy ratio.

[This Article Added on Dec. 30, 2002]

[Previous Article 12-2 moved to Article 12-3 <Dec. 30, 2002>]

Article 12-3(Scope of principal shareholders) #

(1) "Principal shareholders prescribed by Presidential Decree" in the provisions, with the exception of the subparagraphs, of Article 21-2 (1) of the Act means the following persons: <Amended on Jun. 9, 2009; Mar. 11, 2016>

1. A shareholder who holds shares or investment stake of at least 10/100 of the total number of issued voting shares or the total amount of investment stake in a corporation, who is a debtor, by his or her own calculation under whatever name he or she holds shares or investment stake;

2. A shareholder who exercises actual influence over major management matters of a corporation that is a debtor, such as the appointment and dismissal of executive officers.

[This Article Added on Mar. 17, 2001]

[Moved from Article 12-2; previous Article 12-3 moved to Article 12-4 <Dec. 30, 2002>]

Article 12-4(Methods of and procedures for examination) #

(1) Where it is necessary to conduct an examination (hereinafter referred to as "examination" in this Article) under Article 21-2 (7) of the Act, the Corporation may require its employees to examine books, documents and other data relating to affairs and financial conditions of an insolvent financial company, etc. prescribed in Article 21-2 (1) of the Act, and persons related to insolvency. <Amended on Dec. 30, 2002; Mar. 11, 2016>

(2) Where the Corporation conducts an examination, it shall notify persons subject to examination of necessary matters, such as reasons for examination and the scope of examination, in advance; provided, the foregoing shall not apply where it cannot achieve the objectives of the examination due to the destruction of evidence, etc., if it gives prior notification to such persons.

(3) Where the Corporation conducts an examination, it shall provide persons subject to examination with opportunities of making full statements.

(4) Where the Corporation completes its examination, it shall notify the relevant persons of the result of the examination in writing.

[This Article Added on Mar. 17, 2001]

[Moved from Article 12-3; previous Article 12-4 moved to Article 12-5 <Dec. 30, 2002>]

Article 12-5(Kinds of public institutions and financial companies) #

"Public institutions and financial companies prescribed by Presidential Decree" in the main clause of Article 21-3 (1) of the Act means the following institutions: <Amended on Feb. 28, 2007; Mar. 11, 2016>

1. Enterprises in which the Government has invested at least 50/100 of their paid-in capital;

2. Corporations established under any special Act;

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

4. Local corporations that undertake housing projects or land development projects provided for in Article 2 (1) 7 or 8 of the Local Public Enterprises Act;

5. Financial companies prescribed in subparagraph 1 of Article 2 of the Act on Real Name Financial Transactions and Confidentiality.

[This Article Added on Jun. 7, 2000]

[Title Amended on Mar. 11, 2015]

[Moved from Article 12-4 <Dec. 30, 2002>]

Article 13(Budget and settlement of accounts) #

The budget of the Corporation shall be subject to approval from the Financial Services Commission prior to the commencement of the fiscal year under Article 23 of the Act, and the settlement of accounts of the Corporation shall be subject to approval from the Financial Services Commission within three months after the closing of the fiscal year. <Amended on Dec. 30, 2002; Feb. 29, 2008>

Article 14(Contributions) #

(1) Each insured financial company shall pay contributions to the Corporation in an amount calculated by multiplying minimum capital or minimum equity capital necessary for authorization or permission by the rate applied to each of the following insured financial companies within one month from the date of commencement of business after it is eligible for deposit insurance; provided, where the amount of minimum equity capital exceeds the amount of paid-in capital, each insured financial company shall pay contributions to the Corporation in an amount calculated by multiplying its paid-in capital by the rate applied to each of the following insured financial companies: <Amended on Dec. 30, 2002; Feb. 28, 2007; Jul. 29, 2008; Mar. 11, 2016; Jun. 21, 2016>

1. Banks: 1/100;

2. Investment traders and investment brokers: 1/100;

3. Insurance companies: 1/100;

4. Merchant banks: 5/100;

5. Insured financial companies (hereinafter referred to as "mutual savings banks") under subparagraph 1 (j) of Article 2 of the Act: 5/100;

6. Deleted. <Feb. 28, 2007>

(2) Where reserves in the account for each insured financial company in the Deposit Insurance Fund established under Article 24 (1) of the Act (hereinafter referred to as the "Deposit Insurance Fund") are less than the amount to be paid as insurance money to persons (hereinafter referred to as "depositors, etc.") who have claims, such as deposits, defined in subparagraph 4 of Article 2 of the Act (hereinafter referred to as "claims, such as deposits"), the Corporation may require the insured financial company having the relevant account to additionally contribute the amount approved by the Financial Services Commission, which shall not exceed the difference, subject to resolution by the Committee, within one month from the date on which the Corporation determines to pay insurance money. In such cases, no additional contributions shall exceed the payment limits on contributions set under Article 24 (4) of the Act. <Amended on Mar. 17, 2001; Dec. 30, 2002; Feb. 28, 2007; Feb. 29, 2008; Mar. 11, 2016>

(3) Notwithstanding paragraph (1), any of the following insured financial companies need not pay contributions to the Corporation: <Amended on Jun. 21, 2016>

1. An insured financial company surviving the merger, which obtains authorization or permission for establishment or business;

2. An insured financial company which obtains authorization or permission for establishment or business to acquire the business of an insured financial company; provided, an insured financial company, which obtains authorization or permission for establishment or business to acquire the business of a domestic branch of a foreign bank referred to in Article 58 (1) of the Banking Act, domestic branch of a foreign insurance company specified in Article 4 (6) of the Insurance Business Act, or domestic branch of a foreign financial investment business entity provided for in Article 12 (2) of the Financial Investment Services and Capital Markets Act (hereinafter referred to as "domestic branch"), shall pay the amount calculated by deducting the contribution paid when the relevant domestic branch obtains authorization or permission, from the contributions described in paragraph (1) 1 through 3;

Article 14-2(Reduction or exemption of interest or methods of deferment) #

(1) The Corporation may, with respect to a mutual savings bank account in the deposit insurance fund, reduce or exempt interest for ten years from the date determined by the Committee through a resolution of the Committee within the extent of the balance of loans as of December 31, 2008 pursuant to Article 24-3 (5) of the Act.

(2) The Corporation may grant deferment for payment of interest to a specific account the liquidity of which is insufficient temporarily through a resolution of the Committee pursuant to Article 24-3 (5) of the Act.

[This Article Added on Jun. 9, 2009]

Article 14-3(Publication of white paper) #

The white paper on management of the special accounts published by the Corporation pursuant to Article 24-4 (7) of the Act shall include the record of support and record of collection of the special accounts for restructuring of mutual savings banks under paragraph (1) of that Article.

[This Article Added on Apr. 12, 2011]

Article 15(Methods of borrowing) #

(1) Deleted. <Jun. 15, 2021>

(2) Where the Corporation intends to borrow funds pursuant to Article 26 (1) of the Act, it shall prepare documents stating the following matters and obtain approval from the Financial Services Commission: <Amended on Feb. 29, 2008; Jun. 15, 2021>

1. Reasons for borrowing;

2. Borrowed amount;

3. Interest rate on a loan, method and time limit for the payment of interest;

4. Method and time limit for the repayment of borrowed money.

(3) The Corporation may borrow funds from the following institutions pursuant to Article 26 (1) of the Act. In such cases, the borrowing from the Korea Asset Management Corporation shall include cases where it borrows funds from the Non-Performing Loan Disposal Fund managed and operated by the Korea Asset Management Corporation: <Amended on Oct. 10, 1998; Jun. 7, 2000; Dec. 30, 2002; Feb. 28, 2007; Jun. 9, 2009; Apr. 12, 2011; Mar. 11, 2016; Jun. 15, 2021>

1. Deleted; <Jun. 15, 2021>

2. Deleted; <Jun. 15, 2021>

3. The Export and Import Bank of Korea established in accordance with the Export-Import Bank of Korea Act;

4. National Credit Union Federation of Korea;

5. Financial companies authorized to perform resolution under Article 36-3 of the Act;

6. Korea Asset Management Corporation;

7. Deleted. <Dec. 30, 2014>

Article 15-2(Explanation of insurance relationship) #

(1) "Persons prescribed by Presidential Decree, such as an insured financial company" in the provisions, with the exception of the subparagraphs, of Article 29 (3) of the Act, means any of the following:

1. The Government or a local government;

2. The Bank of Korea, the Financial Supervisory Service or the Korea Deposit Insurance Corporation;

3. An insured financial company.

(2) "Methods prescribed by Presidential Decree" in Article 29 (4) of the Act, means any of the following methods:

1. Electronic mail and other similar electronic communications;

2. Mail;

3. Automated phone-answering system;

4. Digital signature defined in subparagraph 2 of Article 2 of the Digital Signature Act.

[This Article Added on Jun. 21, 2016]

Article 16(Deadline for payment of insurance premiums) #

(1) Each insured financial company shall pay insurance premiums calculated by the formula in Appendix 1 to the Corporation within three months after the end of each business year pursuant to Article 30 (1) of the Act; provided, if an insured financial company is a bank, it shall pay insurance premiums within one month after the end of each quarter. <Amended on Mar. 11, 2016>

(2) Where an insured financial company fails to pay insurance premiums under paragraph (1) by the deadline for payment, it shall pay overdue charges calculated by multiplying the number of days, from the date on which the payment is due to the date on which the payment is made, by the interest rate set by the Committee based on the overdue interest rate at the time the insured financial company makes a general loan. <Amended on Mar. 17, 2001; Mar. 11, 2016>

(3) "Amount prescribed by Presidential Decree" in the former part of Article 30 (1) of the Act means the aggregate of the following amounts: <Amended on Jun. 21, 2016; Jun. 23, 2020; Dec. 27, 2022>

1. In cases of insurance contracts of an insurance company under subparagraph 2 (c) of Article 2 of the Act: The amount calculated by averaging the following amounts:

(a) The following amount accumulated for the payment of insurance money, refunds, and dividends to policyholders (hereinafter referred to as "insurance money, etc.") to be paid by an insurance company in the future, which is the sum of the arithmetic means of the amounts calculated as of the end of each quarter of the relevant business year in lieu of the amounts calculated as of the end of each term for the settlement of accounts of the relevant business year:

(i) The amount accumulated to pay insurance money and refunds in the future with respect to the contracts under which no reason for paying insurance money, etc. has arisen as at the end of each term for the settlement of accounts; in such cases, the amount to be paid at the time of surrender of an insurance contract shall be calculated according to the methods prescribed in the document specifying methods of calculating insurance premiums and the liability reserves under subparagraph 3 of Article 5 of the Insurance Business Act;

(ii) The amount of accumulated insurance premiums corresponding to the period after the end of the term for the settlement of accounts out of the insurance premiums earned before the end of the term for the settlement of accounts in connection with the contracts under which no reason for paying insurance money, etc. has arisen as at the end of each term for the settlement of accounts;

Article 16-2(Application of differential insurance premium rates) #

(1) The Corporation shall apply the insurance premium rates determined by the Committee to each insured financial company (hereinafter referred to as "differential insurance premium rates") within 10/100 based on the insurance premium rates (in case falling under Article 16-5 (1), referring to insurance premium rates calculated pursuant to the reduced insurance premiums) provided for in calculation formula in Appendix 1 pursuant to the latter part of Article 30 (1) of the Act. <Amended on Apr. 12, 2011; Mar. 11, 2016>

(2) Notwithstanding Article 16 (1), an insured financial company subject to the differential insurance premium rates shall pay insurance premiums under the differential premium rates within six months (in cases of a bank, one month after the close of each quarter) after the close of each business year. <Amended on Mar. 11, 2016>

(3) A premium for the first quarter of each business year of a bank subject to the differential premium rate shall be calculated by applying the premium rate for the preceding business year and settled at the time of payment of a premium for the second quarter pursuant to the differential premium rate for the relevant business year; however, the interest for the balance shall be deemed not to have accrued.

(4) Where the Corporation receives an objection under Article 30-5 of the Act from an insured financial company, it shall notify such insured financial company of the result of the handling thereof, within 90 days from the date on which it receives the objection, through a resolution of the Committee. <Amended on Mar. 11, 2016>

(5) Matters necessary for the specific procedures for and methods of payment of premiums, calculation of the differential premium rates, filing and handling of an objection under paragraphs (1) through (4) shall be determined by the Corporation through a resolution of the Committee, and publicly announced on its website.

[This Article Added on Jun. 9, 2009]

[Previous Article 16-2 moved to Article 16-4 <Jun. 9, 2009>]

Article 16-3(Exceptions to duty of confidentiality) #

(1) An insured financial company shall apply for the disclosure of information on the differential insurance premium rates by submitting materials evidencing the fact that it is necessary to disclose such information for the protection of depositors pursuant to the proviso of Article 30-2 of the Act, and may publicly disclose the differential insurance premium rates when the Corporation recognizes the necessity of the disclosure thereof. <Amended on Mar. 11, 2016>

(2) Where the Corporation receives an application for disclosure of the differential insurance premium rates pursuant to paragraph (1), it shall notify an insured financial company of the result of the handling of the application, through a resolution of the Committee, within 90 days from the date on which it receives such application. <Amended on Mar. 11, 2016>

[This Article Added on Jun. 9, 2009]

Article 16-4(Payment of special contributions for redemption of deposit insurance fund bonds) #

(1) Each insured financial company shall pay the Corporation special contributions for redemption of the Deposit Insurance Fund bonds (hereinafter referred to as "special contributions") calculated by the formula in Appendix 1-2 within three months after the end of each business year pursuant to Article 30-3 (1) of the Act; provided, if an insured financial company is a bank, it shall pay such special contributions within one month after the end of each quarter. <Amended on Mar. 11, 2016>

(2) Where an insured financial company fails to pay the special contributions under paragraph (1) by the deadline for payment, it shall pay the overdue charges calculated by multiplying the interest rate on unpaid special contributions determined by the Committee based on the overdue interest rate at the time the insured financial company makes a general loan by the number of days from the date following the date the payment is due to the date the payment is made. <Amended on Mar. 11, 2016>

(3) "Amount of money prescribed by Presidential Decree" in Article 30-3 (1) of the Act means the aggregate of following amounts: <Amended on Jun. 23, 2020; Dec. 27, 2022>

1. In cases of insurance contracts of an insurance company under subparagraph 2 (c) of Article 2 of the Act: The amount calculated by averaging the following amounts:

(a) The aggregate of the following amounts calculated as at the end of the term for the settlement of accounts of the relevant business year, which are accumulated by an insurance company for the payment of insurance money, etc.:

(i) The amount accumulated to pay insurance money and refunds in the future with respect to the contracts under which no reason for paying insurance money, etc. has arisen as at the end of each term for the settlement of accounts; in such cases, the amount to be paid at the time of surrender of an insurance contract shall be calculated according to the methods prescribed in the document specifying methods of calculating insurance premiums and the liability reserves under subparagraph 3 of Article 5 of the Insurance Business Act;

(ii) The amount of accumulated insurance premiums corresponding to the period after the end of the term for the settlement of accounts out of the insurance premiums earned before the end of the term for the settlement of accounts in connection with the contracts under which no reason for paying insurance money, etc. has arisen as at the end of each term for the settlement of accounts;

Article 16-5(Establishment of target amount) #

(1) Where the reserves of each account of the Deposit Insurance Fund exceed the lower limit of the target amount as of the end of the immediately preceding fiscal year of the Corporation, the Corporation shall reduce insurance premiums which become the revenues of the relevant accounts through a resolution of the Committee pursuant to Article 30-4 (4) of the Act. <Amended on Apr. 12, 2011>

(2) Where the reserves of each account of the Deposit Insurance Fund exceed the upper limit of the target amount as of the end of the immediately preceding fiscal year of the Corporation, the Corporation shall refund all or part of the amount exceeding the upper limit of the relevant accounts to insured financial companies or exempt them from the payment of insurance premiums which become the revenues of the relevant account through a resolution of the Committee pursuant to Article 30-4 (4) of the Act; provided, even where they are exempted from the payment thereof, they shall pay the annual insurance premium of 100,000 won pursuant to the former part of Article 30 (1) of the Act. <Amended on Apr. 12, 2011; Mar. 11, 2016>

(3) The Corporation shall determine the amount to be refunded to each insured financial company pursuant to the main clause of paragraph (2) through a resolution of the Committee, in consideration of contributions for the accumulation of the Fund made by each insured financial company, the already refunded amount, the amount, etc. of financing provided from the Fund. <Amended on Mar. 11, 2016>

(4) The Corporation may postpone the establishment of the target amount through a resolution of the Committee pursuant to Article 30-4 (5) of the Act.

(5) Notwithstanding the main clause of paragraph (2), where the estimated amount of the reserve of each account of the Deposit Insurance Fund as of March 31, 2011 exceeds the upper limit of the target amount re-established due to the establishment of the special accounts for restructuring of mutual savings banks under Article 24-4 (1) of the Act, the Corporation shall exempt the payment of premiums after April 1, 2011 with respect to the relevant accounts through a resolution of the Committee. <Added on Apr. 12, 2011>

(6) Matters necessary for the specific procedures for and methods of the establishment of the target amount, reduction of the insurance premiums, refund and exemption, etc. of premiums under paragraphs (1) through (5) shall be determined by the Corporation through a resolution of the Committee and publicly announced on its website. <Added on Apr. 12, 2011>

[This Article Added on Jun. 9, 2009]

Article 17(Provisional payment) #

(1) The Corporation may pay in advance depositors, etc. an amount set by the Committee within the limit of paying insurance money under Article 32 (2) of the Act (hereinafter referred to as "provisional payment") pursuant to Article 31 (2) of the Act; provided, where provisional payment exceeds insurance money, insurance money shall be the maximum amount for payment. <Amended on Mar. 17, 2001>

(2) The Corporation shall publicly announce the period, methods, etc. for payment under Article 31 (3) of the Act in at least one daily newspaper published in the Seoul Metropolitan City and the area in which the main office of an insured financial company is located and on its website; provided, where the Corporation pays insurance money or makes provisional payment to the depositors, etc. of mutual savings banks, it shall publicly announce the period, methods, etc. for such payment in at least two daily newspapers including one daily newspaper published in the area in which their main offices are located and on its website. <Amended on Dec. 30, 2002; Feb. 28, 2007; Nov. 24, 2020>

Article 17(Provisional payment) #

"Where a depositor, etc. has special relations prescribed by Presidential Decree" in Article 31 (6) of the Act means cases where a depositor, etc. has relations under Article 3 (1) of the Enforcement Decree of the Act on Corporate Governance of Financial Companies with persons related to insolvency. <Amended on Feb. 28, 2007; Feb. 29, 2008; Jul. 29, 2008; Mar. 11, 2016; Sep. 5, 2017>

[This Article Added on Mar. 17, 2001]

Article 18(Exceptions to methods of calculation of insurance money) #

(1) Where depositors, etc. have claims, such as deposits, offered as security (hereafter referred to as "claims on security" in this Article) or bear security obligations against such insured financial companies for other persons in calculating insurance money pursuant to Article 32 (1) of the Act, the Corporation may suspend the payment of insurance money to the extent equivalent to claims on security or security obligations until such secured claims or obligations are extinguished. <Amended on Oct. 10, 1998; Mar. 11, 2016>

(2) Where the Corporation suspends the payment of insurance money under paragraph (1) of this Article or Article 31 (6) of the Act, it shall issue a document stating the following matters to depositors, etc. who have requested the payment of such insurance money: <Amended on Oct. 10, 1998; Mar. 17, 2001>

1. Amount of insurance money for which payment is suspended;

2. Reasons for a suspension of payment of insurance money;

3. Period of a suspension of payment of insurance money;

4. Procedures and methods for depositors, etc. to request the payment of suspended insurance money upon the extinction of the reasons for a suspension of payment of insurance money, or the completion of period of a suspension of its payment.

(3) In cases of insurance money paid by the Corporation for the defined contribution retirement pension plan, the individual retirement pension plan, the retirement pension fund system for small and medium enterprises, or retirement insurance and a lump sum retirement allowance trust (hereafter referred to as "defined contribution retirement pension plan, etc." in this Article) under the main clause of Article 2 of the Addenda to the Act on the Guarantee of Workers' Retirement Benefits, wholly amended by Act No. 10967, pursuant to the proviso of Article 32 (1) of the Act , the total amount of debts which the policyholder (referring to the policyholder under subparagraph 11 of Article 2 of the Act on the Guarantee of Workers' Retirement Benefits, including an insured or beneficiary of retirement insurance or a lump sum retirement allowance trust under the main clause of Article 2 (1) of the Addenda to the Guarantee of Workers' Retirement Benefits Act, wholly amended by Act No. 10967; hereafter the same shall apply in this Article) owes to the relevant insured financial company shall not be deducted from the total amount of claims, such as deposits, which the policyholder has in the relevant insured financial company as of the date of public announcement of the payment of insurance money (hereafter referred to as "date of public announcement of the payment of insurance money" in this Article) under Article 31 (3) of the Act; provided, this shall not apply where the relevant insured financial company has been provided with security (only applicable to cases of the defined contribution retirement pension plan, the individual retirement pension plan, and the retirement pension fund system for small and medium enterprises) pursuant to Article 7 (2) of the Act on the Guarantee of Workers' Retirement Benefits or obtained consent in writing from the relevant policyholder. <Amended on Oct. 10, 1998; Aug. 19, 2005; Jun. 9, 2009; Feb. 26, 2015; Mar. 11, 2016; Oct. 17, 2023>

Article 19(Public announcement of estimated payment rates) #

The provisions of Article 17 (2) shall apply mutatis mutandis to the public announcement of estimated payment rates, etc. under Article 35-5 of the Act. <Amended on Jun. 7, 2000; Jun. 21, 2016>

Article 19-2(Purchase of liability insurance) #

(1) "Insured financial companies prescribed by Presidential Decree" in Article 35-9 (1) of the Act means insured financial companies excluding the following insured financial companies: <Amended on Feb. 28, 2007; Feb. 29, 2008; Dec. 9, 2014; Mar. 11, 2016>

1. Insured financial companies that meet the standards prescribed by the Committee as a result of inspection of affairs and financial standing of insured financial companies conducted by the Financial Supervisory Service pursuant to subparagraph 1 of Article 37 of the Act on the Establishment of Financial Services Commission;

2. Insured financial companies prescribed in subparagraph 1 (b) and (c) of Article 2 of the Act;

3. Insured financial companies prescribed in subparagraph 1 (f) of Article 2 of the Act, which have already purchased insurance of the same nature as liability insurance (hereinafter referred to as "liability insurance") under Article 35-9 (1) of the Act at their main offices;

4. Insured financial companies which have not obtained a reduction in all or some of contributions, insurance premiums and late fees, or have not been granted a postponement of the payment thereof pursuant to Article 30 (2) of the Act.

(2) Where the Corporation requests insured financial companies to purchase liability insurance pursuant to Article 35-9 (1) of the Act, it shall request them to purchase liability insurance in writing, specifying matters determined by the Corporation through a resolution of the Committee, such as the limit, etc. of payment of insurance money. <Amended on Feb. 29, 2008; Jun. 9, 2009; Mar. 11, 2016>

(3) Deleted. <Jun. 9, 2009>

[This Article Wholly Amended on Mar. 17, 2001]

Article 20(Standards for request for contract transfers) #

(1) Where an insolvent financial company falls under any of the following, if its liabilities exceed its assets pursuant to Article 36-2 of the Act, the Corporation may request the Financial Services Commission to take necessary measures, such as the issuance of an order to transfer contracts and an application for bankruptcy, against the relevant insolvent financial company through a resolution of the Committee: <Amended on Mar. 17, 2001; Dec. 30, 2002; Feb. 29, 2008; Mar. 11, 2016>

1. Where a delay in the merger between an insured financial company and insolvent financial company or the transfer and takeover of business between them, or the takeover of an insured financial company by a third party (hereafter referred to as "merger, etc. of an insolvent financial company" in this Article) under Article 36 of the Act harms the interests of depositors, or increases the burden on the Deposit Insurance Fund;

2. Where a serious difficulty in the merger, etc. of an insolvent financial company harms the interests of depositors, or increases the burden on the Deposit Insurance Fund.

(2) Where the Corporation establishes a financial company to take over business or contracts of an insolvent financial company pursuant to Article 36-3 of the Act (hereinafter referred to as "financial company authorized to perform resolution"), it may request the Financial Services Commission to order the relevant insolvent financial company to transfer its contracts to a financial company authorized to perform resolution pursuant to Article 36-2 (1) of the Act. <Amended on Feb. 29, 2008; Mar. 11, 2016>

Article 21(Guidance on and supervision over financial companies authorized to perform resolution) #

Where necessary for the guidance and supervision under Article 36-5 (4) of the Act, the Corporation may require a financial company authorized to perform resolution to report its business or to submit data, and may take other measures necessary for the guidance and supervision.

[This Article Wholly Amended on Dec. 27, 2022]

Article 22(Establishment registration of financial companies authorized to perform resolution) #

(1) The establishment of a financial company authorized to perform resolution shall be registered at the location of its main office within two weeks from the date on which it obtains approval for its establishment from the Financial Services Commission. <Amended on Feb. 29, 2008; Mar. 11, 2016>

(2) Matters to be registered for the establishment of a financial company authorized to perform resolution shall be as follows: <Amended on Mar. 11, 2016>

1. Purpose;

2. Name;

3. Total amount of capital;

4. Total number of issued stocks;

5. Face value per stock;

6. Names and addresses of executive officers;

7. Sites of a main office and branches;

8. Method of public announcement.

[Title Amended on Mar. 11, 2015]

Article 23(Registration of transfer of financial companies authorized to perform resolution) #

Articles 5 through 8 and 17 (2) shall apply mutatis mutandis to the registration of transfer, the registration of alteration, the registration of the appointment of the representative, the computation of the period of registration, and the public announcement of the establishment of a financial company authorized to perform resolution. <Amended on Mar. 11, 2016>

[Title Amended on Mar. 11, 2015]

Article 24(Applicants for registration of financial companies authorized to perform resolution) #

(1) The president of the Corporation shall apply for establishment registration under Article 22, and the president of a financial company authorized to perform resolution shall apply for registration under Article 23. <Amended on Mar. 11, 2016>

(2) Applications for registration under Articles 22 and 23 shall be submitted along with documents evidencing reasons for respective registrations.

[Title Amended on Mar. 11, 2015]

Article 24-2(Standards and methods for financing to insured financial companies) #

(1) Where it is necessary to determine whether or not to provide financing under Article 38 (1) of the Act, the Corporation may conduct an actual inspection of assets, liabilities, etc. to objectively understand the management and financial conditions of an insured financial company or financial holding company that controls the relevant insured financial company as its subsidiary, etc. under Article 4 (1) 2 of the Financial Holding Companies Act (hereinafter referred to as "subsidiary, etc."). <Amended on Jun. 9, 2009; Mar. 11, 2016>

(2) Where the Corporation provides financing under Article 38 (1) of the Act, it may provide financing in at least two installments.

(3) Where an insured financial company that has concluded a written agreement to implement its management normalization program pursuant to Article 38-5 (2) of the Act fails to fulfill such agreement without good cause, the Corporation may discontinue to provide financing. <Amended on Mar. 11, 2016>

[This Article Added on Feb. 28, 2007]

[Title Amended on Mar. 11, 2015]

[Previous Article 24-2 moved to Article 24-4 <Feb. 28, 2007>]

Article 24-3(Procedures for realization of least cost principle) #

Where the Corporation pays its insurance money or provides financing, it shall minimize the loss of the Deposit Insurance Fund pursuant to Article 38-4 (1) of the Act by conducting an actual inspection of assets, liabilities, etc. of an insured financial company or a financial holding company that controls the relevant insured financial company as its subsidiary, etc. in advance and objectively understanding its management and financial conditions. <Amended on Jun. 9, 2009; Mar. 11, 2016>

[This Article Added on Feb. 28, 2007]

[Previous Article 24-3 moved to Article 24-5 <Feb. 28, 2007>]

Article 24-4(Conclusion of agreement on implementation of management normalization) #

(1) Where the Corporation intends to provide financing to an insured financial company pursuant to Article 38-5 (2) of the Act, it shall enter into an agreement with that insured financial company to implement a plan to normalize its management before it provides financing; provided, the foregoing shall not apply in any of the following cases: <Amended on Feb. 28, 2007; Mar. 11, 2016>

1. Where the Corporation provides financing to a financial company authorized to perform resolution;

2. Where the Corporation provides financing under Article 38 (1) 1 of the Act; provided, the foregoing shall not apply where an entity who receives financing is an insolvent financial company, etc.;

3. Where the Corporation provides financing by means of purchasing the assets of a financial company;

4. Deleted. <Mar. 11, 2016>

(2) "Financial soundness standards prescribed by Presidential Decree, such as the capital adequacy ratio" in Article 38-5 (2) 1 of the Act, means financial soundness standards applicable to an insured financial company pursuant to the Acts and substitute statutes, based on which that relevant insured financial company has established, as determined by the Financial Services Commission. <Amended on Feb. 29, 2008; Mar. 11, 2016>

(3) "Profitability standards prescribed by Presidential Decree, such as the return on assets" in Article 38-5 (2) 2 of the Act, means the following standards; provided, the Corporation may designate one or two of the following standards as profitability standards considering the ratio of the total number of stocks owned by the Corporation to the total number of issued and outstanding voting shares of the insured financial company which receives the financing under Article 38 of the Act or the ratio of the collected amount to the funds provided to such insured financial company: <Amended on Mar. 11, 2016; Jun. 21, 2016>

1. The ratio of profit to assets or capital;

2. The ratio of expenses to profit;

3. The productivity per executive officer or employee.

(4) "Asset quality standards prescribed by Presidential Decree, such as the non-performing loan ratio" in Article 38-5 (2) 3 of the Act, means the ratio of non-performing loans to loans. <Amended on Mar. 11, 2016>

[This Article Added on Dec. 30, 2002]

Article 24-5(Non-disclosure of agreement) #

"Matters prescribed by Presidential Decree" in the proviso of Article 38-5 (3) of the Act means the following matters: <Amended on Mar. 11, 2016>

1. Matters relating to the issuance of securities, such as stocks and claims;

2. Matters relating to the sale of assets held, such as real estate and claims;

3. Matters relating to the methods for the implementation of a plan for normalization of management.

[This Article Added on Dec. 30, 2002]

[Moved from Article 24-3 <Feb. 28, 2007>]

Article 24-6(Requirements and procedures for termination of purchase agreements) #

(1) The Corporation may terminate a contract for purchasing unjust enrichment return claims under the proviso of Article 39-2 (1) of the Act in any of the following cases:

1. Where a remitter applies for purchasing unjust enrichment return claims by fraud or other improper means;

2. Where the fact that a remitter has not made an erroneous remittance is clearly verified by objective data;

3. Where procedures for a lawsuit with regard to unjust enrichment return claims are underway or completed;

4. Other cases corresponding to those referred to in subparagraphs 1 through 3, where deemed necessary to terminate a contract for purchasing unjust enrichment return claims, as prescribed by the Committee.

(2) A contract for purchasing unjust enrichment return claims shall be terminated under the proviso of Article 39-2 (1) of the Act by any of the following means:

1. Delivery of documents;

2. Mail or e-mail;

3. Telephone or fax;

4. Mobile phone text messages or electronic messages equivalent thereto.

(3) Except as provided in paragraphs (1) and (2), detailed matters necessary for procedures, methods, etc. for terminating a contract for purchasing unjust enrichment return claims shall be determined by the Committee.

[This Article Added on Jun. 15, 2021]

[Previous Article 24-6 moved to Article 24-7 <Jun. 15, 2021>]

Article 24-7(Processing of personally identifiable information) #

(1) Where it is inevitable to conduct the following affairs, the Financial Services Commission (only applicable to affairs referred to in subparagraphs 1, 5 and 6), the Governor of the Financial Supervisory Service (only applicable to affairs referred to in subparagraph 1), the Corporation, or a financial company authorized to perform resolution (only applicable to affairs referred to in subparagraphs 15, 16 and 18) may process data including resident registration numbers, passport numbers, driver's license numbers, or alien registration numbers referred to in Article 19 of the Enforcement Decree of the Personal Information Protection Act: <Amended on Aug. 6, 2014; Mar 11, 2016; Jun. 21, 2016; Jun. 15, 2021; Dec. 27, 2022>

1. Affairs concerning requests for the submission of data to insured financial companies under Article 21 of the Act;

2. Affairs concerning the exercise, etc. of the right of subrogation to claim damages under Article 21-2 (1), (3), (4), (7) and (8) of the Act;

3. Affairs concerning requests for the provision of data under Article 21-3 (1) of the Act (including cases applicable mutatis mutandis pursuant to Articles 35-7 and 35-8 (4) of the Act);

4. Affairs concerning requests for the provision of information on financial transactions, etc. under Article 21-4 (1) of the Act;

5. Affairs concerning supervision, following-up measures, etc. under Article 27 of the Act;

6. Affairs concerning reporting and inspections, follow-up measures, etc. under Article 28 of the Act;

6-2. Affairs concerning examinations conducted under Article 29 (5) of the Act;

7. Affairs concerning the calculation and receipt of insurance premiums under Article 30 of the Act;

8. Affairs concerning the calculation and receipt of special contributions for redemption of Deposit Insurance Fund bonds under Article 30-3 of the Act;

9. Affairs concerning the payment of insurance money, etc. under Article 31 of the Act;

10. Affairs concerning the calculation of insurance money under Article 32 of the Act;

11. Acquisition of claims under Article 35 of the Act;

12. Affairs concerning the purchase of claims, such as deposits, and the making of estimated payments under Article 35-2 (1) and (2) of the Act;

Article 25(Scope of staff deemed as public officials in application of Criminal Act) #

The scope of the staff under Article 42 (2) of the Act shall be as follows: <Amended on Feb. 28, 2007>

1. Staff of agents or higher rank in the Corporation;

2. Staff of agents or higher rank in an agency who are engaged in agency business referred to in Article 20 (1) of the Act; provided, they shall be limited to those who are under the application of penalties under the Criminal Act in connection with their businesses.

[Title Amended on Feb. 28, 2007]

Article 26(Criteria for imposition of administrative fines) #

The criteria for imposition of administrative fines described in Article 44 (1) and (2) of the Act shall be as provided for in Appendix 3. <Amended on Jun. 21, 2016>

[This Article Added on Jun. 9, 2009]