Article 1(Purpose) #
The purpose of this Decree is to prescribe matters mandated by the Electric Contractors' Financial Cooperative Act (hereinafter referred to as the "Act") and those necessary for enforcing that Act.
Article 2(Scope of works) #
(1) "Works prescribed by Presidential Decree" in subparagraph 2 of Article 2 of the Act means the following construction works: <Amended on Dec. 31, 1997; Sep. 19, 1998; Jan. 13, 2011; May 7, 2024>
1. Construction works under the Framework Act on the Construction Industry;
2. Installation of information and communications facilities under the Information and Communications Construction Business Act;
3. Firefighting system installation works under the Firefighting System Installation Business Act;
4. Installation of heat-using machinery, equipment, or materials under the Energy Use Rationalization Act;
5. Overseas construction projects under the Overseas Construction Promotion Act;
5-2. National heritage repair projects under the Act on National Heritage Maintenance;
6. Ancillary works and repair works related to the works under subparagraphs 1 through 5 and 5-2.
(2) Deleted. <Jun. 29, 1991>
Article 2-2 #
Deleted. <Sep. 19, 1998>
Article 3(Contribution certificates) #
(1) The Electric Contractors' Financial Cooperative (hereinafter referred to as the "Cooperative") shall, when a contributor has paid its contribution pursuant to Article 6 of the Act, deliver the contribution certificate without delay.
(2) The following matters shall be entered on contribution certificates referred to in paragraph (1), and shall be signed and sealed by the chairman of the board. The same shall also apply to documents certifying relevant contribution:
1. The name of the Cooperative;
2. The date of establishment of the Cooperative;
3. Deleted; <Jan. 13, 2011>
4. The amount of one unit of contribution;
5. The name of the contributor (in the case of a juristic person, and the name of the representative), and trade name and domicile thereof;
6. Date of contribution;
7. Matters regarding restriction on the transfer of contribution certificates.
Article 4(Change of holders of contribution certificates) #
A person who transfers or takes over his or her shares pursuant to Article 11 of the Act shall present the contribution certificate and other related documents to the Cooperative, and require the Cooperative to change the holder of the relevant contribution certificate, as prescribed by the articles of association.
Article 5(Registration for establishment) #
(1) The Cooperative shall register the following matters at the location of its main office: <Amended on Jan. 13, 2011>
1. Objectives;
2. The name of the Corporative;
3. The location of the main office;
4. The date of authorization of the articles of association;
5. Total amount of contributions;
6. Contribution methods;
7. The amount of one unit of contribution;
8. Matters regarding restrictions on the transfer of contribution certificates;
9. Names, resident registration numbers, and domiciles of executive officers (applicable only to executive officers with representative authority);
10. Matters regarding restrictions on the powers of representation of the chairperson and the acting director;
11. Matters regarding an agent;
12. Method of public announcement.
(2) Where the Cooperative establishes a branch or sub-branch (hereinafter referred to as "branch") pursuant to Article 8 (2) of the Act, it shall register the name, location, and date of establishment of the branch established at the location of its main office within 3 weeks after the establishment thereof. <Amended on Jan. 21, 2025>
(3) Where the Cooperative relocates its main office, it shall register the new location and the date of relocation at the old or new location within 3 weeks after the relocation, and where it relocates its branch, it shall register the new location and the date of relocation at the location of its main office within 3 weeks after the relocation. <Amended on Jan. 21, 2025>
(4) Where any registered matters referred to in the subparagraphs of paragraph (1) or (2) are changed (excluding cases falling under the registration of transfer under paragraph (3) or the registration of discontinuance under paragraph (5)), the Cooperative shall register such change at the location of its main office within 3 weeks after such change; provided, where there is any change in the total contribution under paragraph (1) 5, it may register such change within 3 months after the end of each business year as of the end of each business year. <Amended on Sep. 19, 1998; Jan. 13, 2011; Jan. 21, 2025>
Article 6(Registration of appointment and dismissal of agents) #
(1) Where the chairperson of the Cooperative appoints an agent pursuant to Article 26 (2) of the Act, the Cooperative shall file for registration of the following matters at the location of its main office within 2 weeks after the appointment. <Amended on Jun. 29, 1991; Jan. 21, 2025>
1. The name and address of the agent;
2. The name and location of the main office and the branch where the agent is placed;
3. Where the authority of an agent is restricted, the details of such restriction.
(2) Where the Cooperative dismisses an agent appointed by the chairperson pursuant to Article 26 (2) of the Act, the Cooperative shall register the fact of dismissal at the location of its main office within 2 weeks after the dismissal. <Amended on Jan. 21, 2025>
Article 7(Documents attached to application for registration) #
Each application for registration under Articles 5 and 6 shall be accompanied by the documents classified as follows: <Amended on Jun. 29, 1991>
1. In the case of registration for establishment, the articles of association, total contributions, and documents proving the qualifications of executive officers;
2. In the case of registration of the establishment or discontinuance of a branch office, documents certifying the establishment or discontinuance of the branch office;
3. In the case of registration of relocation, documents certifying the relocation of the principal office or branch office;
4. In the case of registration of change, documents certifying the change;
5. In the case of registration of appointment or dismissal of an agent, documents certifying the appointment or dismissal of an agent; and if the authority of the relevant agent is restricted under Article 6 (1) 3, documents certifying the restriction.
Article 8(Applicant for registration) #
In the case of registration of the Cooperative, the chairperson shall act as the applicant.
Article 9(Start date in computing period of registration) #
Where any matter to be registered under Articles 5 and 6 requires authorization or approval from the Minister of Climate, Energy and Environment, the registration period shall be counted from the date on which the written authorization or approval arrives. <Amended on Mar. 6, 1993; Sep. 19, 1998; Feb. 29, 2008; Mar. 23, 2013; Oct. 1, 2025>
Article 10(Registry office) #
(1) The registration of the Cooperative shall be made by the district court, branch court, or registry office having jurisdiction over the location of its main office. <Amended on Jan. 21, 2025>
(2) The registry office shall keep a register of the Electric Contractors' Financial Cooperative Act.
Article 10-2(Types of guarantee) #
(1) The types of guarantees under Article 9 (2) of the Act shall be as follows: <Amended on Feb. 24, 2001>
1. Tender guarantee: Guaranteeing the performance of the obligation to pay a tender bond to be borne by a member of the Cooperative as a tenderer that participants in tendering procedures for works, delivery and installation of goods, and provision of services (hereinafter referred to as "construction works, etc.);
2. Contract guarantee: Guaranteeing the performance of the obligation to pay a contract bond borne by a member of the Cooperative in connection with the conclusion of a contract for works, etc. contracted by the member;
3. Work performance guarantee: Guaranteeing that a member of the Cooperative bears the obligation to perform a contract if the member fails to perform the contractual obligations of the contracted works, or that a certain amount of money shall be paid where the member fails to perform such obligation;
4. Defect liability guarantee: Guaranteeing the performance of the obligation to pay a defect repair warranty bond to be borne by a member of the Cooperative for the repair of defects caused in violation of design documents and other written instructions during the construction of works, etc. completed by a member of the Cooperative;
5. Damage guarantee: Guaranteeing the performance of the obligation to pay damages for a loss a third party incurred during the performance of a contract for works, etc. contracted by a member of the Cooperative;
6. Payment guarantee: Guaranteeing the obligation to pay a deposit borne by a member of the Cooperative in connection with the performance of obligations to the person placing an order, financial institution, or insurance institution;
7. Difference guarantee: Guaranteeing the performance of the obligation to pay a deposit for difference borne by a member of the Cooperative as required in the tender notice, etc. given by the person placing the order;
8. Subcontract guarantee: Guaranteeing the performance of obligations or liabilities borne by a member of the Cooperative in connection with works, etc. which the member intends to subcontract or has subcontracted;
9. Authorization or permission guarantee: Guaranteeing the performance of the obligation to pay a deposit or security deposit borne by a member of the Cooperative for restoration when he or she intends to obtain authorization, permission, license, etc. from the State or a local government in connection with his or her business;
Article 10-3(Fixed number of representatives) #
(1) The general meeting of the Cooperative under Article 17 (1) of the Act shall be comprised of up to 200 representatives.
(2) A representative shall be a member of the Cooperative for at least 1 year prior to the date of election.
(3) Representatives shall be elected for each branch (excluding sub-branches) of the Cooperative in proportion to the total number of units of contribution, and detailed matters regarding the method of election shall be prescribed by the articles of association.
(4) The term of office of a representative shall be 1 year, and the term of office of a substitute representative shall be the remaining term of his or her predecessor.
(5) The exercise of voting rights by representatives shall be governed by the articles of association.
[This Article Added on Sep. 19, 1998]
Article 10-4(General meetings) #
(1) General meetings shall be classified into ordinary general meetings and extraordinary general meetings, but an ordinary general meeting shall be convened once a year as prescribed by the articles of association, and an extraordinary general meeting shall be convened from time to time as prescribed by the articles of association.
(2) The chairperson shall convene and preside over general meetings of the board of directors.
[This Article Added on Sep. 19, 1998]
Article 10-5(Board of directors) #
(1) The following matters shall be subject to resolution by the board of directors: <Amended on Jan. 5, 2021>
1. The Cooperative's plans for projects and its basic policies on business operations and management;
2. The budget of the Cooperative;
3. Borrowing of funds;
4. Enactment, amendment, and repeal of regulations related to the operation of the Cooperative;
5. Convocation of general meetings;
6. Matters submitted to general meetings and matters delegated by general meetings;
7. Other matters prescribed by the articles of association.
(2) The chairperson of the board of directors shall convene and preside over meetings of the board of directors.
(3) Except as otherwise expressly provided for in the articles of association, the board of directors shall pass resolutions with the concurring vote of a majority of the incumbent directors.
[This Article Added on Sep. 19, 1998]
Article 10-6(Appointment of executive officers) #
(1) The full-time directors, including the vice chairperson under Article 21 (1) 2 of the Act, shall be elected at a general meeting on the recommendation of the board of directors from among those other than members of the Cooperative. In such cases, the full-time directors, including the vice chairperson, shall not participate in the resolution of the board of directors for the recommendation, and directors other than the relevant vice chairperson and the full-time directors shall be deemed incumbent directors.
(2) Part-time directors under Article 21 (1) 3 of the Act shall be the following persons appointed at a general meeting: <Amended on Jun. 30, 1999; Feb. 29, 2008; Jan. 13, 2011; Mar. 23, 2013; Oct. 1, 2025>
1. Twelve members of the Cooperative;
2. One person who is qualified as an attorney-at-law or certified public accountant;
3. One person recommended by the Minister of Climate, Energy and Environment from among public officials under his or her control;
4. One person from among the executive officers of the Korea Electrical Contractors Association established under Article 25 of the Electrical Construction Business Act.
(3) The auditors under Article 21 (1) 4 of the Act shall be 1 person appointed at a general meeting from among persons who are not members of the Cooperative, and 1 person appointed at a general meeting from among members of the Cooperative. In such cases, an auditor who is not a member of the Cooperative shall be full-time, and an auditor who is a member of the Cooperative shall be part-time.
[This Article Added on Sep. 19, 1998]
Article 10-7(Term of office of executive officers) #
The terms of office of the chairperson, full-time directors including the vice chairperson, part-time directors (limited to part-time directors under Article 10-6 (2) 1 and 2), and auditors of the Cooperative shall each be 3 years, and may be consecutively renewed only once.
[This Article Added on Sep. 19, 1998]
Article 10-8(Term of office of executive officers) #
(1) The chairperson shall represent the Cooperative and have general supervision and control of its business affairs. <Amended on Jan. 5, 2021>
(2) The vice chairperson shall assist the chairperson and take charge of the business affairs of the Cooperative as prescribed by the articles of association.
(3) A full-time director other than the vice chairperson shall assist the chairperson and the vice chairperson, and take partial charge of the business affairs of the Cooperative as prescribed by the articles of association.
(4) The auditors shall audit and inspect the property, accounting, and business affairs of the Cooperative, and, if he or she discovers any wrongdoing, shall report it to the general meeting and the board of directors, respectively.
(5) When the chairperson and the vice chairperson are unable to perform their duties due to any unavoidable cause, other executive officers shall act on their behalf as prescribed by the articles of association.
[This Article Added on Sep. 19, 1998]
Article 10-9(Scope of prohibition of concurrent office holding by executive officer) #
"Same type of business as prescribed by the Presidential Decree" in the main clause of Article 27 of the Act means the following types of business:
1. Construction business under subparagraph 2 of Article 2 of the Electrical Construction Business Act and related goods sales business;
2. Business of construction works under each subparagraph of Article 2.
[This Article Added on Sep. 19, 1998]
Article 11 #
Deleted. <Sep. 19, 1998>
Article 12(Guarantee limits) #
(1) The limit on guarantees that the Cooperative may provide under Article 45 (1) of the Act shall be up to 20 times the sum of the contribution and the reserve of the Cooperative; provided, where a guarantee is backed by a guarantee or insurance policy from a financial institution, an insurance company, or any other similar institution, and where a guarantee is provided with collateral, the limit on guarantees provided by the Cooperative shall not include such guarantee.
(2) Where the guarantee limit is determined under paragraph (1), the contribution and the reserve shall be based on the settled accounts at the end of the preceding year of each business year; provided, where capital increase is made or assets are revaluated during the business year, the contribution and the reserve shall be based on the contribution and the reserve at the time the capital increase or asset revaluation is completed. <Amended on Jan. 13, 2011>
[This Article Wholly Amended on Jun. 29, 1991]
Article 13(Limit of discounts on bills) #
The limit of discounts on bills under Article 9 (1) 3 of the Act shall be prescribed by the articles of association.
Article 13-2(Scope of public organizations) #
"Public organization prescribed by Presidential Decree" in Article 9 (1) 10 of the Act means the Korea Electrical Contractors Association established pursuant to Article 25 of the Electrical Construction Business Act.
[This Article Wholly Amended on Jan. 5, 2021]
Article 13-3(Earmark of liability reserves) #
(1) The Cooperative shall earmark the liability reserve for each type of guarantee within 2/100 of the balance of guarantees (excluding the balance of performance guarantees for construction works) as of the end of each business year in accordance with Article 34-2 (1) of the Act.
(2) The Cooperative shall earmark an emergency risk reserve within 2/100 of the balance of the performance guarantee for construction works as of the end of each business year in accordance with Article 34-2 (1) of the Act.
(3) The amount to be earmarked under paragraphs (1) and (2) shall be accounted for by the allowance for amortization of indemnity claims.
(4) The liability reserves and emergency risk reserves under paragraphs (1) and (2) shall be earmarked by taking into consideration the balance of indemnity claims at the end of the relevant business year and the net profit, etc. of the relevant business year.
[This Article Added on Sep. 19, 1998]
Article 14 #
Deleted. <Sep. 19, 1998>
Article 15(Construction guidance) #
(1) When the chairperson of the Cooperative intends to give instructions or opinions on the construction and the construction supervision method under Article 48 (1) of the Act, he or she shall do so in writing; provided, in case of urgency, such instructions or opinions shall be given verbally first and supplemented in writing later.
(2) The person qualified to supervise the construction status of the works guaranteed by the Cooperative under Article 48 (3) of the Act shall be any of the following persons: <Amended on Mar. 6, 1993; Sep. 19, 1998; Feb. 29, 2008; Mar. 23, 2013; Oct. 1, 2025>
1. Electrical engineer;
2. Grade 1 electrical construction engineer or Grade 2 electrical construction engineer;
3. Any other person with technical qualifications recognized by the Minister of Climate, Energy and Environment to be able to supervise the relevant works.
Article 16(Entrustment of investigation of construction status) #
(1) When the Cooperative entrusts the business affairs under Article 48 (1) of the Act to the Korea Electrical Contractors Cooperative in accordance with Article 49 (1) of the Act, it shall notify its members who have been contracted for the relevant works thereof.
(2) Article 15 shall apply mutatis mutandis where the Korea Electrical Contractors Association is entrusted with the business affairs of the Cooperative under paragraph (1).
Article 16-2
[Previous Article 16-2 moved to Article 18 <Aug. 6, 2014>]
Article 17(Processing of personally identifiable information) #
The Cooperative may process data containing resident registration numbers or alien registration numbers under subparagraph 1 or 4 of Article 19 of the Enforcement Decree of the Personal Information Protection Act, if it is essential for performing administrative affairs relating to the verification of grounds for disqualification of executive officers under Article 22 of the Act.
[This Article Added on on Aug. 6, 2014]
Article 18(Criteria for imposition of administrative fines) #
(1) The criteria for the imposition of administrative fines under Articles 52 through 54 of the Act shall be as specified in Appendix.
(2) The Minister of Climate, Energy and Environment may mitigate an administrative fine by up to 50/100 of the amount of the administrative fine specified in the Appendix, considering the severity of the violation, the number of violations, the motive and consequences of the violation, and other related matters. <Amended on Mar. 23, 2013; Oct. 1, 2025>
[This Article Wholly Amended on Jan. 13, 2011]
[Moved from Article 16-2 <Aug. 6, 2014>]