Article 1(Purpose) #
The purpose of this Decree is to prescribe matters mandated by the Forest Cooperatives Act and matters necessary for the enforcement thereof. <Amended on May 2, 2005>
Article 2(Scope of foresters) #
"Person prescribed by Presidential Decree" in subparagraph 10 of Article 2 of the Forestry Cooperatives Act (hereinafter referred to as the "Act") means any of the following persons: <Amended on May 2, 2005; Aug. 4, 2006; Jun. 20, 2008; Mar. 2, 2012; Dec. 30, 2016; Jul. 2, 2019>
1. A person who manages forestry in forest of 3 hectares or more;
2. A person who engages in forestry for at least 90 days per year;
3. A person whose annual sales of forest products through forestry management exceed 1.2 million won;
4. Forest seeds and seedlings growers registered in accordance with Article 16(1) of the Creation and Management of Forest Resources Act and Article 12(1)1 of the Enforcement Decree of that Act;
5. A person who secures a nursery plot (a site for producing, managing, and shipping seedlings) of at least 300 square meters and produces landscaping trees or bonsai stock, or cultivates forest by-products such as wild edible greens;
6. A person who cultivates jujube trees on land of at least 1,000 square meters;
7. A person who cultivates walnut trees on land of at least 1,000 square meters;
8. A person who cultivates chestnut trees on land of at least 5,000 square meters;
9. A person who cultivates Korean pine trees on land of at least 10,000 square meters;
10. A person who cultivates shiitake mushroom logs in an annual volume of at least 20 cubic meters.
Article 3(Scope of landscaping and construction business) #
(1) The type of landscaping business that a regional cooperative or the NFCF may conduct pursuant to Article 11(3) of the Act shall be the landscaping planting and landscaping facility construction business (limited to landscaping planting work; hereinafter the same shall apply), and the requirements to be satisfied and the scope thereof for such landscaping planting and landscaping facility construction business shall be as prescribed in Appendix 1. <Amended on Nov. 28, 2017; Aug. 22, 2018; Dec. 29, 2020; and Dec. 19, 2023>
(2) The type of construction business that a regional cooperative or the NFCF may conduct pursuant to Article 11(3) of the Act shall be the building construction business, and the requirements to be satisfied and the scope thereof for such building construction business shall be as prescribed in Appendix 1-2. <Amended on Dec. 19, 2023>
(3) Where a regional cooperative or the NFCF intends to file a report pursuant to Article 11(4) of the Act, it shall submit to the Special Metropolitan Mayor, a Metropolitan Mayor, a Special Self-Governing City Mayor, a Do Governor, or a Special Self-Governing Province Governor (hereinafter referred to as the "Mayor/Do Governor") a report in the attached Form, with the documents specified in the following subparagraphs attached: <Added on Dec. 19, 2023>
1. One copy of documents evidencing that the applicant satisfies the technical capability requirements specified in Appendix 1 or Appendix 1-2;
2. One copy of the balance sheet for the immediately preceding fiscal year;
3. One copy each of a written statement setting forth the current status of land and tree holdings and a certificate of tree holdings certified by the head of a Si/Gun/Gu (referring to the head of an autonomous Gu; hereinafter the same shall apply) (applicable only to the landscaping planting and landscaping facility construction business).
(4) The public official in charge who receives the report under paragraph (3) shall verify the following matters through administrative data matching pursuant to Article 36(1) of the Electronic Government Act: <Added on Dec. 19, 2023>
1. A certificate of corporate registration;
2. A certificate of land registration (applicable only to the landscaping planting and landscaping facility construction business).
[Title Amended on Dec. 19, 2023]
Article 4(Standards for authorization for establishment of cooperatives) #
The standards required for authorization for the establishment of a cooperative under Article 14(1) of the Act shall be as follows: <Amended on May 2, 2005; Mar. 2, 2012; Nov. 28, 2017; and Jun. 22, 2021>
1. Regional cooperative:
a. The number of persons who consent to establishment and are qualified to be members of the cooperative (in the case of establishment by division or merger, this means members; hereinafter the same in this Article and Article 5) shall be at least 1,000; provided, where the district of the cooperative is a Special Metropolitan City or a Metropolitan City (excluding Guns) or an island area under the Islands Development Promotion Act, the number shall be at least 300;
b. The total amount of capital subscription commitments made by the persons who consent to establishment and are qualified to be members of the cooperative (in the case of establishment by division or merger, this means the total amount of capital contributions; hereinafter the same in this Article) shall be at least 100 million won; provided, where the district of the cooperative is an island area under the Islands Development Promotion Act, the amount shall be at least 10 million won;
2. Specialized cooperative:
a. The number of founding members who have the qualifications to become members shall be at least 200;
b. The total amount of capital subscription commitments made by the persons who consent to establishment and are qualified to be members of the cooperative shall be at least 100 million won.
Article 5(Board of promoters and inaugural general meeting) #
(1) The promoters who intend to establish a cooperative pursuant to Article 14 of the Act shall prepare a statement of establishment containing the matters specified in the following subparagraphs and shall convene the board of promoters:
1. Name;
2. Zone;
3. Qualifications for membership;
4. Rights and obligations of members;
5. Other necessary matters.
(2) The board of promoters under paragraph (1) shall prepare a draft of the articles of incorporation and a draft business plan, determine matters concerning the submission of written consents to establishment and the date and place of the inaugural general meeting, and shall obtain written consents to establishment from the persons consenting to establishment. In such cases, the persons consenting to establishment who submit written consents shall be notified of the matters relating to the inaugural general meeting.
(3) The following matters shall be subject to resolution by the inaugural general meeting:
1. Articles of incorporation;
2. Business plan and income and expenditure budget;
3. Election of executive officers;
4. Other matters required for establishment.
Article 6(Procedures for authorization for establishment of cooperatives) #
A person who intends to obtain authorization for the establishment of a cooperative pursuant to Article 14(1) of the Act shall submit an application for authorization for establishment to the Mayor/Do Governor with the following documents attached: <Amended on Sept. 8, 2020; Dec. 19, 2023>
1. Articles of incorporation;
2. Minutes of the inaugural general meeting;
3. Business plan;
4. List of executive officers;
5. Documents evidencing that the applicant satisfies the qualifications for membership and the standards required for authorization for establishment;
6. The minutes of the general meeting or the voting records of members that resolved the division or merger (limited to cases of establishment through division or merger; the resolution shall specify the scope of rights and obligations to be succeeded by the newly established cooperative).
Article 7(Standing and non-standing standards for cooperative presidents) #
(1) In the proviso of Article 35(2) of the Act, "if the scale of business of the cooperative, including its assets, is below the criteria prescribed by Presidential Decree" means a case where the total assets set forth in the cooperative's most recent financial statements, which have been approved at the regular general meeting pursuant to Article 57(3) of the Act prior to the commencement of the term of office of the cooperative president, are less than KRW 100 billion.
(2) In Article 35(3) of the Act, "where the scale of the cooperative's business, including its assets, meets or exceeds the criteria prescribed by Presidential Decree" means a case where the total assets set forth in the cooperative's most recent financial statements, which have been approved at the regular general meeting pursuant to Article 57(3) of the Act prior to the commencement of the term of office of the president of the cooperative, are at least KRW 250 billion.
[This Article Added on Sep. 22, 2020]
Article 8(Qualifications for standing directors of cooperatives) #
In the proviso of Article 35(5) of the Act, "a person who meets the requirements prescribed by Presidential Decree" means any of the following persons: <Amended on May 1, 2003; May 2, 2005; Nov. 15, 2010; Dec. 30, 2016; Nov. 28, 2017; Jul. 2, 2019; Sept. 22, 2020>
1. A person who has at least 5 years of experience working as a full-time employee at a cooperative or the NFCF;
2. A person who has worked as a full-time employee for at least 5 years in an institution that falls under any of the following categories related to agriculture and forestry (including livestock farming; hereinafter the same shall apply):
a. State agencies;
b. Local governments;
c. Public institutions defined in Article 4 of the Act on the Management of Public Institutions (hereinafter referred to as "public institutions");
d. "Institutions subject to inspection pursuant to Article 38 of the Act on the Establishment of the Financial Services Commission (including equivalent foreign financial institutions);
Article 8-2(Scope of financial institutions) #
"Financial institution prescribed by Presidential Decree" in Article 39(1)12d of the Act (including cases where Article 122 of the Act applies mutatis mutandis) means any of the following financial institutions: <Amended on Aug. 11, 2020; Dec. 19, 2023>
1. Cooperatives;
2. Korea Technology Finance Corporation under the Korea Technology Finance Corporation Act;
3. A credit guarantee fund for farmers and fishers pursuant to the Act on the Credit Guarantee for Farmers and Fishers;
4. Cooperatives, the NFCF, and Nonghyup Banks under the Agricultural Cooperatives Act;
5. Insurance companies under the Insurance Business Act;
6. Mutual savings banks and the Korea Federation of Savings Banks under the Mutual Savings Banks Act;
7. Community Credit Cooperatives and the NFCF under the Community Credit Cooperatives Act;
8. Cooperatives, the NFCF, and Suhyup Bank under the Fisheries Cooperatives Act;
9. Korea Technology Credit Guarantee Fund under the Korea Technology Credit Guarantee Fund Act;
10. Credit unions and the National Credit Union Federation of Korea under the Credit Unions Act;
11. Specialized credit finance companies under the Specialized Credit Finance Business Act;
12. Venture investment companies and venture investment associations pursuant to subaragraphs 10 and 11 of Article 2 of the Venture Investment Promotion Act;
13. Small and medium-sized enterprise cooperatives under the Small and Medium Enterprise Cooperatives Act;
14. Credit guarantee foundations and the Korea Federation of Credit Guarantee Foundation under the Regional Credit Guarantee Foundation Act;
15. Export-Import Bank of Korea under the Export-Import Bank of Korea Act;
16. Korea Housing Finance Corporation under the Korea Housing Finance Corporation Act.
[This Article Added on August 22, 2018]
[Previous Article 8-2 moved to Article 8-3 <Aug. 22, 2018>]
Article 8-3(Composition and operation of cooperative election management committee) #
(1) The cooperative election management committee under Article 40-3(1) of the Act (including cases where Article 122 of the Act applies mutatis mutandis) shall be composed of at least 5 members appointed by the board of directors of the cooperative from among cooperative members (excluding officers and employees) with substantial experience in elections and experts in the management of elections for public offices, etc. <Amended on Nov. 28, 2017>
(2) Matters necessary for the operation, etc. of the cooperative election management committee shall be prescribed by the articles of incorporation of the cooperative.
[This Article Added on May 2, 2005]
[Moved from Article 8-2 <Aug. 22, 2018>]
Article 8-4(Scope of businesses in substantial competition) #
(1) The scope of businesses in substantial competition under Article 41(5) of the Act (including cases where Articles 86-10 and 122 of the Act apply mutatis mutandis) shall be as set forth in Appendix 2; provided, business in substantial competition shall be limited to cases where they fall under the businesses conducted by the relevant cooperative (in cases where Article 86-10 of the Act applies, referring to a cooperative joint business corporation under Article 86-3 of the Act, and in cases where Article 122 of the Act applies, referring to the NFCF; hereinafter the same shall apply in this Article).
(2) Notwithstanding paragraph (1), any business conducted by a corporation in which the relevant cooperative has made an equity investment for the purpose of carrying out its business shall not be deemed to be a business in substantial competition.
[This Article Added on August 22, 2018]
Article 9(Limit on borrowing of funds by cooperatives) #
(1) The limit on the amount of funds that a cooperative may borrow from the NFCF for its credit business under Article 49(1) of the Act shall not exceed its equity capital as prescribed in Article 56-2(2) of the Act (hereinafter referred to as "equity capital"); provided, where a cooperative intends to borrow funds for unavoidable reasons, such as the implementation of forestry policy or the withdrawal of deposits, and obtains approval from the business representative director of the NFCF (hereinafter referred to as "business representative director"), it may borrow funds from the NFCF in excess of its equity capital. <Amended on May 2, 2005; Sept. 22, 2020>
(2) The limit on the amount of funds that a cooperative may borrow from the NFCF for businesses other than its credit business under Article 49(1) of the Act shall not exceed 7 times its equity capital; provided, where it borrows funds with the approval of the business representative director, the cooperative may borrow funds in excess of 7 times its equity capital. <Amended on May 2, 2005; Sept. 22, 2020>
Article 10(Profit-sharing contracts) #
Where a cooperative enters into a profit-sharing contract under Article 50(1) of the Act, the period of the contract, the profit-sharing ratio, the method of implementing the project, and other relevant matters shall be determined in consultation with the forest owner.
Article 11(Management of surplus funds) #
(1) "Financial companies, etc. prescribed by Presidential Decree" in Article 56(1)1 of the Act means any of the following financial companies, etc. (hereinafter referred to as "financial companies, etc."): <Amended on May 2, 2005; Jul. 29, 2008; Nov. 15, 2010; Dec. 30, 2016; Nov. 28, 2017>
1. Banks under the Banking Act;
2. Investment traders, investment brokers, collective investment business entities, trust business entities, and merchant banks under the Financial Investment Services and Capital Markets Act;
3. Deleted; <Jul. 29, 2008>
4. Deleted; <Jul. 29, 2008>
5. Deleted; <Jul. 29, 2008>
6. Korea Development Bank under the Korea Development Bank Act;
7. Industrial Bank of Korea under the Industrial Bank of Korea Act;
8. Postal service offices under the Postal Savings and Insurance Act;
9. Regional cooperatives.
(2) "Securities prescribed by Presidential Decree" in Article 56(1)2 of the Act means any of the following securities; provided, corporate bonds, beneficiary certificates, and shares under subparagraphs 2 through 5 shall be limited to those publicly notified by the Administrator of the Korea Forest Service, as determined after consultation with the Financial Services Commission, within the scope that does not impair the stability of the management of the cooperative's surplus funds: <Amended on May 2, 2005; Feb. 29, 2008; Jul. 29, 2008; Jan. 6, 2012; Oct. 25, 2016; Dec. 30, 2016; Nov. 28, 2017>
1. Bonds issued by financial companies under paragraph (1)6 and 7, the National Agricultural Cooperative Federation, NongHyup Bank, the National Federation of Fisheries Cooperatives, and Suhyup Bank;
2. Corporate bonds;
3. Beneficiary certificates issued by trust business entities under the Financial Investment Services and Capital Markets Act;
4. Beneficiary certificates issued by collective investment business entities or shares issued by investment companies under the Financial Investment Services and Capital Markets Act;
5. Beneficiary certificates issued by merchant banking companies under the Financial Investment Services and Capital Markets Act.
Article 11-2(Public announcement of issuance of preferred capital contributions) #
Where a cooperative or the NFCF causes preferred capital contributions to be made under Article 60-2 of the Act (including cases where that Article applies mutatis mutandis under Article 122 of the Act), it shall, at least 2 weeks prior to the payment due date, publicly announce the details of the preferred capital contributions, the number of units, the issue price, the payment due date, and the method of subscription, and shall give notice thereof to capital contributors and preferred capital contributors. <Amended on Sept. 22, 2020>
[This Article Added on May 2, 2005]
Article 11-3(Subscription for preferential capital contributions) #
(1) A person who intends to subscribe to preferred contributions shall complete a subscription application form, stating the number of units to be acquired, the subscription amount, and his or her address, and shall sign and affix his or her seal. <Amended on Sept. 22, 2020>
(2) The form of an application for subscription to preferred capital contributions shall be prescribed by the cooperative or the NFCF, and shall include the following matters: <Amended on Nov. 28, 2017; Sept. 22, 2020>
1. The name of the cooperative or the NFCF;
2. The amount per unit of contribution and the total number of units;
3. The upper limit on the total number of units of preferred capital contributions;
4. The types of preferred capital contributions already issued and the number of units issued for each type;
5. Equity capital as of the end of the year preceding the year in which the preferred capital contributions are issued;
6. The face value, terms, and number of units of the preferred capital contributions to be issued;
7. The issue price of the preferred capital contributions to be issued and the payment due date;
8. Where preferred capital contributions are purchased and retired pursuant to Article 11-9, matters concerning such purchase and retirement;
9. Financial institutions, etc. that handle payment of the subscription amount for preferred capital contributions.
[This Article Added on May 2, 2005]
Article 11-4(Payment of amounts for preferred capital contributions) #
(1) A person who has applied for subscription to preferred capital contributions may acquire such contributions in the number of units allotted by the cooperative or the NFCF. <Amended on Sept. 22, 2020>
(2) A person who intends to acquire preferred capital contributions under paragraph (1) shall pay in full the issue price of such contributions by the payment due date. <Amended on Sept. 22, 2020>
(3) A person who has acquired preferred capital contributions shall become a preferred contributor from the day following the payment due date of the issue price. <Amended on Sept. 22, 2020>
[This Article Added on May 2, 2005]
Article 11-5 #
Deleted. <Dec, 23, 2014>
Article 11-6 #
Deleted. <Dec. 30, 2016>
Article 11-7 #
Deleted. <Dec. 30, 2016>
Article 11-8 #
Deleted. <Dec. 30, 2016>
Article 11-9(Purchase and retirement of preferred capital contributions) #
A cooperative or the NFCF may, by resolution of its board of directors, purchase preferred capital contributions and retire them.
[This Article Added on May 2, 2005]
Article 11-10(Notice and demand) #
Any notice or demand to a person who has applied for preferred contribution or to a preferred contributor shall be given to the address stated in the subscription form for preferred contribution or in the register of preferred contributors, unless such person has otherwise notified the cooperative or the NFCF of a different address.
[This Article Added on May 2, 2005]
Article 11-11(Standards and procedures for approval of establishment of cooperative joint business corporation) #
(1) The standards required for authorization for establishment of a cooperative joint business corporation under Article 86-5(2) of the Act shall be as follows:
1. There shall be at least two persons qualified for membership who consent to establishment (applicable only to cooperatives; the same shall apply to subparagraph 2);
2. The total amount of investment pledged to be made by persons qualified for membership who consent to establishment shall be at least 300 million won.
(2) Article 6 (excluding subparagraph 6) shall apply mutatis mutandis to the procedures for authorization for the establishment of a cooperative joint business corporation. In such cases, "Article 14(1) of the Act" shall be construed as "Article 86-5(1) of the Act," "cooperative" as "joint cooperative business corporation," "member of the cooperative" as "member," and "Mayor/Do Governor" as "Administrator of the Korea Forest Service." <Amended on Sep. 8, 2020>
[This Article Added on Mar. 2, 2012]
Article 11-12(Criteria for restrictions on membership) #
In Article 89(3)3 of the Act, "standards prescribed by Presidential Decree" means cases where an insolvent cooperative or a cooperative likely to become insolvent under the Act on the Structural Improvement of Forestry Cooperatives re-establishes a cooperative by means of dissolution or division; provided, this shall not apply where it is evident that the re-established cooperative is not at risk of insolvency and the board of directors of the NFCF adopts a resolution to admit it as a member. <Amended on Jan. 22, 2008; Dec. 30, 2016>
[This Article Added on May 2, 2005]
Article 11-13(Qualifications for NFCF audit committee members) #
In Article 103(2) of the Act, "external expert who meets the requirements prescribed by Presidential Decree" means any of the following persons: <Amended on Aug. 9, 2022>
1. A person who has at least 10 years of work experience at the NFCF (including its subsidiaries), a cooperative, or an institution subject to inspection under Article 38 of the Act on the Establishment of Financial Services Commission (including any foreign financial institution equivalent thereto); provided, a person who has served as an executive officer or employee of the NFCF (including its subsidiaries) or of a cooperative within the most recent 2 years (excluding a person who has served as a member of the audit committee of the NFCF) shall be excluded;
2. A person who holds a master's degree or higher in forestry or finance and has at least 5 years' experience (including experience prior to obtaining the degree) serving as a researcher or in a position equivalent to assistant professor or higher at a research institute or university;
3. A person who has at least 5 years' experience serving as a judge, public prosecutor, military judge advocate, attorney-at-law, or certified public accountant;
4. A person who has at least 5 years' experience serving as an executive, or at least 10 years' experience serving as an employee, in legal, financial, auditing, or accounting affairs at a share-listed corporation referred to in Article 9(15)3 of the Financial Investment Services and Capital Markets Act;
5. A person who has at least 5 years' experience in financial or accounting affairs and supervision thereof at the State, a local government, a public institution, or the Financial Supervisory Service referred to in Article 24 of the Act on the Establishment of Financial Services Commission.
[This Article Added on Sep. 22, 2020]
Article 12(Qualifications of business representative director) #
In Article 104(2) of the Act, "person who meets the requirements prescribed by Presidential Decree" means any of the following persons: <Amended on May 1, 2003; May 2, 2005; Nov. 15, 2010; Dec. 30, 2016; Sep. 22, 2020>
1. A person who has at least 10 years' experience working at the NFCF;
2. A person who has at least 10 years' experience working at a State agency related to agriculture, forestry, or finance, or at an institution subject to inspection under Article 38 of the Act on the Establishment of the Financial Services Commission (including any foreign financial institution equivalent thereto);
3. A person who has work experience at a research institute, educational institution, or company related to agriculture, forestry, or finance, and who is prescribed in the articles of incorporation of the NFCF as having qualifications equivalent to or higher than those of a person specified in subparagraph 1 or 2.
[Title Amended on Sep. 22, 2020]
Article 13(Registration of appointment of an agent) #
(1) Where the president of the NFCF (hereinafter referred to as the "president") or the business representative director appoints an agent pursuant to Article 107 of the Act, the following matters shall be registered at the location of the principal office within 2 weeks from the date of appointment. The same shall apply where any registered matter is changed: <Amended on May 2, 2005; Dec. 30, 2016; Sep. 22, 2020; Jan. 21, 2025>
1. The name and address of the agent;
2. The name and address of the NFCF or branch office that has appointed the agent;
3. The details of any restriction on the authority of the agent.
(2) When applying for registration of the appointment of an agent pursuant to paragraph (1), a document evidencing the appointment of the agent (including a document evidencing the matters under paragraph (1)3, where applicable) shall be attached. <Amended on Sep. 22, 2020>
Article 13-2(Operation and management of members' repayment reserve funds) #
The NFCF shall operate and manage the members' repayment reserve funds pursuant to Article 108(1)4 of the Act by the following methods:
1. Loans to members;
2. Deposit with the Bank of Korea under the Bank of Korea Act (hereinafter referred to as the "Bank of Korea"), or with financial companies, etc.;
3. Short-term loans with a maturity of not more than 1 year to financial companies, etc. (hereinafter referred to as "short-term loans");
4. Short-term loans to public institutions;
5. Purchase of financial investment products under Article 3 of the Financial Investment Services and Capital Markets Act (limited, in the case of derivatives, to transactions for the purpose of hedging risks);
6. Loans to the Mutual Finance Depositor Protection Fund under Article 17(1) of the Act on the Structural Improvement of Forestry Cooperatives.
[This Article Added on Nov. 28, 2017]
Article 13-3(Operation and management of members' surplus funds) #
(1) The NFCF shall operate and manage the members' surplus funds pursuant to Article 108(1)4 of the Act by the following methods:
1. Loans to members;
2. Deposit with the Bank of Korea or financial companies, etc.;
3. Loans to financial institutions, etc.;
4. Loans to public institutions;
5. Purchase of financial investment products pursuant to Article 3 of the Financial Investment Services and Capital Markets Act;
6. Loans to corporations;
7. Operation in other business divisions within the NFCF;
8. Any other operation by such methods as may be determined by the Administrator of the Korea Forest Service in consultation with the Financial Services Commission.
(2) Loans to corporations under paragraph (1)6 shall not exceed 1/3 of the balance of members' surplus funds as of the end of the immediately preceding fiscal year, and loans to the same corporation shall not exceed 5 percent of the balance of members' surplus funds at the time of the loan; provided, any financial company, fund, or foundation falling under any of the following subparagraphs guarantees such loans, loans to the same corporation may exceed 5 percent of the balance of members' surplus funds at the time of the loan:
1. Financial companies under Article 11(1)1;
2. Korea Credit Guarantee Fund under the Korea Credit Guarantee Fund Act;
3. Korea Technology Finance Corporation pursuant to the Korea Technology Finance Corporation Act;
4. Housing Finance Credit Guarantee Fund under the Korea Housing Finance Corporation Act;
5. Credit Guarantee Fund for farmers and fishers established under the Act on the Credit Guarantee for Farmers and Fishers;
6. Credit Guarantee Foundation under the Regional Credit Guarantee Foundation Act.
[This Article Added on Nov. 28, 2017]
Article 14(Subjects of investment recommendations) #
In Article 108(3)2 of the Act, "person prescribed by Presidential Decree" means any of the following persons: <Amended on May 1, 2003; Dec. 30, 2016>
1. A corporation or organization related to the export or import of forest products, the development of overseas forest resources, etc.;
2. A corporation or organization that is related to forestry or intends to invest in forestry.
Article 15 #
Deleted. <Jan. 22, 2008>
Article 16 #
Deleted. <Jan. 22, 2008>
Article 17 #
Deleted. <Jan. 22, 2008>
Article 18 #
Deleted. <Jan. 22, 2008>
Article 19 #
Deleted. <Jan. 22, 2008>
Article 20(Qualifications of chairperson and members of cooperative audit committee) #
In the main clause of Article 119(3) of the Act, "person who meets the requirements prescribed by Presidential Decree" means any of the following persons: <Amended on May 2, 2005; Nov. 15, 2010; Dec. 30, 2016; Jul. 2, 2019; Sep. 22, 2020>
1. A person who has at least 10 years' experience serving in a full-time position in the auditing, accounting, or forestry administration sector of a cooperative, the NFCF (including its subsidiaries), or an institution subject to inspection under Article 38 of the Act on the Establishment of Financial Services Commission (including any foreign financial institution equivalent thereto); provided, a person who has served as an executive officer or employee of a cooperative within the most recent 2 years shall be excluded;
2. A person who has work experience at a government agency, research institute, educational institution, or company related to agriculture, forestry, or finance, and who is prescribed in the articles of incorporation of the NFCF as having qualifications equivalent to or higher than those of a person specified in subparagraph 1;
3. A person who has at least 5 years' experience serving as a judge, public prosecutor, military judge advocate, attorney-at-law, or certified public accountant;
Article 21(Composition and operation of dispute mediation committee) #
(1) The dispute mediation committee under Article 121-2 of the Act shall be composed of 9 members, including 1 chairperson. <Amended on Sep. 22, 2020>
(2) The chairperson shall be the president, and the members shall be the following persons: <Amended on Sep. 22, 2020>
1. Business representative firector;
2. One executive officer from among the executive managers of the NFCF to oversee member cooperative affairs and credit business affairs;
3. Five people nominated by the president from among the directors and delegates who are the head of a cooperative.
(3) Matters necessary for the operation of the dispute resolution committee shall be prescribed by the articles of incorporation of the NFCF.
[This Article Wholly Amended on May 2, 2005]
Article 22(Supervision by the Administrator of the Korea Forest Service) #
(1) The Administrator of the Korea Forest Service, the Mayor/Do Governor, and the Financial Services Commission may, when necessary for supervision pursuant to Article 123(1) of the Act, have the relevant public officials audit the business and property status of cooperatives and cooperative joint business corporations under Article 86-3 of the Act (hereinafter referred to as "cooperatives, etc.") and the NFCF, or require them to report necessary matters, and may take necessary measures based on the results thereof. <Amended on Sept. 8, 2020>
(2) In Article 123(4) of the Act, "cooperative that meets the standards prescribed by Presidential Decree" means any of the following cooperatives; provided, if there are no statistical data on the average asset size, etc. as of the end of the immediately preceding fiscal year, the statistical data of the year before the last shall be applied: <Added on May 2, 2005; Dec. 30, 2016>
1. Cooperatives whose total assets as at the end of the immediately preceding fiscal year are not less than the average asset size of member cooperatives;
2. Cooperatives whose ratio of net capital to total assets as at the end of the immediately preceding fiscal year is less than 2 percent.
Article 23(Methods of management guidance) #
(1) Management guidance under Article 126(1) of the Act shall, in principle, be provided in writing, based on the submission of necessary materials; provided, where any of the following subparagraphs applies, employees may be dispatched to the offices of cooperatives, etc. to provide on-site guidance: <Amended on Sept. 8, 2020>
1. In cases where there is a high possibility of illegal management by cooperatives, etc. receiving management guidance;
2. Where performance in recovering illegal or non-performing loans is inadequate and it is deemed that the cooperatives, etc. are unable to rectify such inadequacy on their own;
3. Where illegal or non-performing loans have been additionally made;
4. Where any other case is analogous to those under subparagraphs 1 and 2 and it is deemed necessary to provide on-site guidance.
(2) "Matters prescribed by Presidential Decree" in Article 126(2)3 of the Act means the following matters: <Amended on Dec. 30, 2016; Sept. 8, 2020>
1. Rectification of illegal and wrongful acts;
2. Disposition of non-performing assets;
3. Improvement of personnel and organizational management;
4. Other matters concerning the management of cooperatives, etc. as prescribed by the Administrator of the Korea Forest Service or the Mayor/Do Governor.
(3) Detailed matters necessary for the methods, etc. of providing management guidance under paragraph (1) shall be determined by the Administrator of the Korea Forest Service or the Mayor/Do Governor. <Amended on Sept. 8, 2020>
Article 24(Period of management guidance) #
(1) The period of management guidance under Article 126 of the Act shall be 6 months.
(2) The Administrator of the Korea Forest Service or the Mayors/Do Governors may, where it is deemed necessary for the protection of members or cooperative members, extend the period of management guidance in units of 6 months. <Amended on Sept. 8, 2020>
(3) Where the Administrator of the Korea Forest Service or the Mayor/Do Governor intends to extend the period of management guidance pursuant to paragraph (2), the reasons therefor shall be stated and such fact shall be notified in writing to the relevant cooperatives, etc. at least 15 days prior to the expiration of the period of management guidance. <Amended on Sept. 8, 2020>
Article 25(Notification of management guidance) #
Where the Administrator of the Korea Forest Service or the Mayor/Do Governor intends to provide management guidance under Article 126(1) of the Act, he or she shall notify the relevant cooperatives, etc. in writing of the reasons, the period, and other relevant matters. <Amended on Sept. 8, 2020>
Article 26(Suspension of payment of debt) #
(1) The obligations for which the Administrator of the Korea Forest Service or the Mayor/Do Governor may suspend payment pursuant to Article 126(3) of the Act shall be obligations other than those falling under the following subparagraph: <Amended on May 2, 2005; Aug. 19, 2005; Jun. 29, 2007; Jul. 24, 2012; Sept. 8, 2020>
1. Obligations to pay taxes and public charges or rents;
2. Obligations concerning wages for the last 3 months and compensation for occupational accidents, in respect of which a preferential right to payment is recognized under Article 38(2) of the Labor Standards Act, and obligations concerning retirement benefits, etc. for the last 3 years, in respect of which the right to preferential payment is recognized under Article 12(2) of the Act on the Guarantee of Employees' Retirement Benefits;
3. Other obligations incurred as necessary for the maintenance and management of the cooperatives, etc., as recognized by the Administrator of the Korea Forest Service or the Mayor/Do Governor.
(2) Where the Administrator of the Korea Forest Service or the Mayor/Do Governor has fully withdrawn the suspension of payment of obligations with respect to cooperatives, etc. pursuant to Article 126(6) of the Act, he or she shall, without delay, terminate the management guidance for the relevant cooperatives, etc. <Amended on Sept. 8, 2020>
Article 27(Rates of fees) #
(1) The rates of fees and the criteria for calculating actual expenses and user charges under Article 129(2) and (3) of the Act shall be determined by the president.
(2) Where the president intends to determine the rates of fees and the criteria for calculating actual expenses and user charges under paragraph (1), he or she shall post the relevant details on the website of the NFCF for 20 days to gather opinions from interested parties; provided, where it is deemed urgent, the president may state the reasons therefor on the website and post the details for 10 days.
(3) The president shall, taking into account the opinions gathered under paragraph (2), determine the rates of fees and the criteria for calculating actual expenses and user charges, and shall make such details public on the website of the NFCF.
[This Article Wholly Amended on Mar. 29, 2011]
Article 28(Delegation and entrustment of supervisory authority) #
(1) The Administrator of the Korea Forest Service or the Mayor/Do Governor shall, pursuant to the main clause of Article 123(2) of the Act, entrust the president with the following authority: <Amended on May 2, 2005; Sept. 8, 2020>
1. Approval of the business of cooperatives pursuant to Article 46(1)12 of the Act and paragraph (2)8 of that Article;
2. Supervision of liquidation affairs pursuant to Article 69(3) of the Act;
3. Requests for measures against unlawful acts of employees of cooperatives, etc. pursuant to Article 125(1) of the Act;
4. Audits of the day-to-day business of cooperatives, etc. under Article 22 and necessary measures based on the results thereof;
5. Audits of projects carried out by cooperatives, etc. with loans or subsidies from the State and necessary measures based on the results thereof.
(2) The Administrator of the Korea Forest Service or the Mayor/Do Governor shall, pursuant to the proviso of Article 123(2) of the Act, delegate to the heads of local governments the authority to conduct audits and receive reports under Article 22 with respect to affairs related to projects subsidized by local governments, and to take necessary measures based on the results thereof. <Amended on Sept. 8, 2020>
(3) The Administrator of the Korea Forest Service or the Mayor/Do Governor shall, pursuant to Article 126(7) of the Act, entrust the president with the management guidance affairs under paragraph (1) of that Article (including the work of determining the detailed matters necessary for the methods, etc. of providing management guidance under Article 23(3)). <Amended on May 2, 2005; Sept. 8, 2020>
Article 28-2(Processing of sensitive information and unique identifying information) #
(1) The Administrator of the Korea Forest Service (including any person to whom the authority of the Administrator of the Korea Forest Service has been delegated or entrusted under Article 28) may, where unavoidable for performing the following affairs, process data containing resident registration numbers, passport numbers, or alien registration numbers under Article 19(1)1,2, or 4 of the Enforcement Decree of the Personal Information Protection Act: <Amended on Sept. 8, 2020>
1. Affairs concerning authorization under Article 93 of the Act;
2. Affairs concerning supervision and inspection under Article 123 of the Act;
3. Affairs concerning administrative dispositions for unlawful acts under Article 125 of the Act;
4. Affairs related to management guidance pursuant to Article 126 of the Act.
(2) The Mayors/Do Governors (including any person to whom the authority of the Mayors/Do Governors has been delegated or entrusted under Article 28) may, where unavoidable for performing the following affairs, process data containing resident registration numbers, passport numbers, or alien registration numbers under Article 19(1)1,2, or 4 of the Enforcement Decree of the Personal Information Protection Act: <Added on Sept. 8, 2020>
1. Affairs concerning authorization under Article 14 of the Act and Article 61(2) and (5) of the Act;
2. Affairs concerning supervision and inspection under Article 123 of the Act;
3. Affairs concerning administrative dispositions for unlawful acts under Article 125 of the Act;
4. Affairs related to management guidance pursuant to Article 126 of the Act.
(3) The president of a cooperative may, where unavoidable for performing the following affairs, process information corresponding to criminal history records under subparagraph 2 of Article 18 of the Enforcement Decree of the Personal Information Protection Act or data containing resident registration numbers, passport numbers, or alien registration numbers under subparagraphs 1,2, or 4 of Article 19 that Decree: <Amended on Sept. 8, 2020; Sept. 22, 2020>
1. Affairs concerning member eligibility, contributions, use of cooperative business services, admission, withdrawal, and refund of equity shares under Articles 18,20,26, and 28 of the Act;
Article 28-3(Re-examination of regulation) #
(1) The Administrator of the Korea Forest shall examine the appropriateness of the following matters every 3 years, counting from each base date specified in the following (referring to the period that ends on the day before the base date of every third year) and shall take measures, such as making improvements: <Amended on Dec. 9, 2014; Dec. 30, 2016; Sept. 22, 2020>
1. Scope of foresters under Article 2: January 1, 2014;
2. Criteria for authorization of the establishment of cooperatives under Article 4: January 1, 2014;
2-2. Qualifications of full-time directors of cooperatives under Article 8: January 1, 2017;
3. Limit on borrowing of funds by cooperatives under Article 9: January 1, 2014;
4. Operation of surplus funds under Article 11: January 1, 2014;
5. Qualifications of audit committee members of the NFCF under Article 11-13: January 1, 2021;
6. Qualifications of the business representative director under Article 12: January 1, 2017;
7. Qualifications of the chairperson and members of the cooperative audit committee under Article 20: January 1, 2021.
(2) Deleted. <Dec. 30, 2016>
[This Article Added on Dec. 30, 2013]
[Moved from Article 28-2 <Dec. 23, 2014>]
Article 29(Imposition and collection of administrative fines) #
Where a Gu/Si/Gun election commission imposes and collects an administrative fine pursuant to Article 134(4) of the Act, Article 143 of the Rules on the Management of Public Officials Election shall apply mutatis mutandis, to the extent that it does not run counter to the nature thereof.
[This Article Wholly Amended on Dec. 30, 2016]