Article 1(Purpose) #
The purpose of this Decree is to provide the matters delegated by the Pawnbroking Act (hereinafter referred to as the “Act”) and other matters necessary for the enforcement of the Act.
Article 2(Application for Permission for Business) #
(1) A person who intends to obtain permission for the pawnbroking business as provided in Article 2 (1) of the Act shall submit an application for permission for the pawnbroking business (new, acquisition transfer, inheritance) as referred to in the form of the annexed paper No. 1, along with the documents falling under the following subparagraphs to the chief of the police station: <Amended by Presidential Decree No. 13244, Jan. 8, 1991; Presidential Decree No. 14965, Apr. 1, 1996>
1. A copy of the registration certificate of foreigners and his resume (in the case of foreigners only);
2. The documents that may prove the applicant’s properties;
3. In case there is a legal representative, an abstract copy of his family register or other documents proving him as a legal representative;
4. Deleted, <by Presidential Decree No. 13244, Jan. 8, 1991>
5. The structural outline and the drawing plot of the safekeeping facilities of the pawned articles (in the case of an application for new business only);
6. The written acknowledgment of the transferor or the documents proving him as a successor (in the case of a acquisition transfer or inheritance only); and
7. The former license (in the case of a acquisition transfer or inheritance only).
(2) In receiving the application as referred to in paragraph (1), the chief of the police station shall investigate carefully whether it falls under the standard for permission or not, as provided in Article 3 of the Act.
Article 3(Report on Move of Business Office) #
A person who intends to make a report on the move of the pawnbroking business office under the provisions of subparagraph 1 of Article 4 of the Act shall submit a report on the move of the pawnbroking business office in the form of annexed paper No. 2, along with the structural outline, the drawing plot and the license to the chief of the competent police station. <Amended by Presidential Decree No. 14965, Apr. 1, 1996>
[This Article Wholly Amended by Presidential Decree No. 10397, Jul. 18, 1981]
Article 4(Report on Closing) #
(1) In the case of the closing of the business, the pawnbroker shall submit a report on the closing in the form of annexed paper No. 3, along with the license and a concrete disposition method as referred to in Article 30 (1) of the Act, to the chief of police station within ten days from the date on which the business closes.
(2) In case a juristic person is dissolved by a cause other than a merger, or is extinguished by a merger, the person who shall return the license under the provisions of Article 11 (3) of the Act shall submit a report on the closing as referred to in paragraph (1), along with the license and the disposition method to the chief of police station within ten days from the date on which the juristic person is dissolved or extinguished.
Article 5(Report on Suspension of Business) #
(1) The term “long-term suspension of business” under subparagraph 3 of Article 4 of the Act means a suspension for a period of not less than 20 days.
(2) A person who desires to suspend the business for the long-term referred to in paragraph (1) shall submit a report on suspension in the form of annexed paper No. 3, along with the license to the chief of police station at least five days before the date of commencement of the suspension. In case where he intends to extend the period of the long-term suspension reported, the same shall apply to such case.
(3) A person shall not enter into a pawn contract during the suspension period, but he shall comply with return requests of pawned articles by the owners, even though it is during the suspension period.
Article 6(Report on Change of Mentioned Matters in Application for Permission) #
(1) The change of mentioned matters which shall be reported in the application for permission under subparagraph 4 of Article 4 of the Act shall be the matters falling under any of the following subparagraphs, and they shall be reported by the report on the change of mentioned matters in an application for permission for the pawnbroking business in the form of annexed paper No. 4 within ten days from the date on which the matters change. In case where the location of the juristic person’s main office from among the subparagraph 1 changes, or in the case of subparagraphs 2 and 4 the person shall attach the license to the report on the change in order to arrange the matters concerning report on the backside of the license and the move: <Amended by Presidential Decree No. 12555, Dec. 19, 1988; Presidential Decree No. 13244, Jan. 8, 1991>
1. The change of the pawnbroker’s address, name and date of birth (in the case of a juristic person, the name or the location of main office);
2. The legal representative’s move, appointment, or the change of his address and name;
3. The move of a juristic person’s representative, the change of his address and name;
4. The move of an executive officer who carries out the juristic person’s affairs, the change of his address and name;
5. The change of trade name; and
6. The change of the safekeeping facilities of pawned articles.
(2) Deleted. <by Presidential Decree No. 13244, Jan. 8, 1991>
Article 7(Report on Appointment of Manager) #
The report on an appointment of the manager under subparagraph 5 of Article 4 shall be filed within 10 days from the date on which the manager is appointed, but the report on an appointment of the pawnshop manager in the form of annexed paper No. 5, shall be submitted to the chief of police station along with the license. In case where the address, name, date of birth of the manager is changed, the same shall apply to the case. <Amended by Presidential Decree No. 10397, Jul. 18, 1981>
Article 8(Measures in Case of Pawnbroker’s Death) #
In case where a pawnbroker dies, if his successor desires to continue the pawnbrokering business, he shall follow the procedure for permission for succession, and if the successor desires to close the business, he shall follow the procedure for a report on the closing of the business within 15 days after the pawnbroker’s death.
Article 9(Restriction on Rate of Interest) #
(1) The interest rate for the loan under the provisions of Article 7 of the Act shall not exceed the standards falling under the following subparagraphs:
1. Where the loan amount is not more than 10,000 won, the rate is 6 % a month; and
2. Where the loan amount exceeds 10,000 won, the rate is 5% a month as to the exceeded amount.
(2) The interest rate as referred to in paragraph (1) shall be calculated each month, but in case where the remaining days or the total days is not less than 16 days, it is considered as one month, and in the case of less than 16 days, it is considered as half a month.
Article 10(Safekeeping Facilities) #
The safekeeping facilities of the pawned articles as referred to in Article 9 (1) of the Act shall be based on the standards falling under the following subparagraphs: <Amended by Presidential Decree No. 14965, Apr. 1, 1996>
1. The area shall be not less than ten square meters;
2. The floor shall be higher than the foundation, and structured to be protected from precipitation and ground water;
3. The structure of the walls, beams and other important structural parts shall be made waterproof and fire resistant;
4. In case glass is used for the windows and the exit and entrance doors, it shall be made of a glass reinforced with netting, and the iron lattice shall be installed in the window;
5. The steel outer doors shall be installed at the exit and entrance;
6. The safekeeping facilities shall be equipped with a fire-fighting apparatus, antiseptic facilities and protection facilities against insects;
7. The exit and entrance shall be secured with a sturdy lock;
8. A safe shall be furnished for the purpose of keeping securities and precious metals;
9. An airing and ventilation apparatus shall be installed; and
10. Other facilities suitable for the safekeeping of pawned articles shall be installed.
Article 11(Forms of License and License Ledger) #
(1) The license for pawnbroking business as referred to in Article 10 (1) of the Act shall be in the form as stated in annexed paper No. 6;
(2) In case where the chief of police station delivers the pawnbrokering business license under the provisions of Article 10 (1), he shall register it in the license ledger in the form of annexed paper No. 7, and whenever it moves, he shall arrange this record.
Article 12(Redelivery of License) #
(1) In the case falling under any of the following subparagraphs, anyone shall be redelivered the pawnbrokering business license under the provisions of Article 10 (2) of the Act: <Amended by Presidential Decree No. 10397, Jul. 18, 1981>
1. Where he has damaged the license;
2. Where he has lost the license or has had it stolen;
3. Where there is no blank which shall register in the report and the move matters column of the license;
4. Where he has reported on the move of the business office as referred to in Article 3; and
5. Where he has reported on the change of mentioned matters as referred to in Article 6 (1) 1 (excluding cases where the juristic person’s main office has been changed) and subparagraphs 3 and 5 of the same paragraph.
(2) The application for a redelivery of license as a result of the causes falling under paragraph (1) 1 through 4 shall be followed in the form of annexed paper No. 8 within seven days after the causes occurs.
(3) The application for a redelivery of license as a result of the causes falling under paragraph (1) 5 shall record the meaning in the report on the change of mentioned matters of an application for permission of the pawnbroking business in the form of annexed paper No. 4.
(4) In applying for a redelivery of license as result of the causes falling under paragraph (1) 1, 3 through 5, the former license shall be attached.
(5) The report on the lost or stolen business license under the provisions of Article 10 (3) of the Act shall be substituted for the application as referred to in paragraph (2).
Article 13(Fee) #
(1) The amount of fees as referred to in Article 13 of the Act shall be as follows: <Amended by Presidential Decree No. 10397, Jul. 18, 1981; Presidential Decree No. 14965, Apr. 1, 1996>
1. The fee for a license of the new business, acquisition transfer, or inheritance as referred to in Article 2 shall be 10,000 won; and
2. The fee for a redelivery of license as referred to in Article 12 (1) shall be 2,000 won.
(2) The fees as referred to in paragraph (1) shall be paid along with the application concerned or the report with revenue stamps.
(3) The paid fees shall not be refunded.
Article 14(Methods of Identification) #
In case where the pawnbroker or the manager identifies the owner of the pawned articles under the provisions of Article 15 (1) of the Act, he shall inquire directly as to the address, name, occupation and age of the owner and characters of the pawned articles, and identify the owner by demanding to see the resident registration card and the identification card: Provided, That in case where the identity of the owner is definitely known, or the authentication of the police exists, this shall not apply. <Amended by Presidential Decree No. 13787, Dec. 26, 1992>
Article 15(Books) #
(1) The books as referred to in Article 16 of the Act shall be considered as the register of pawned articles and foreclosed articles, and its form shall be followed in the form of annexed papers No. 9 and 10.
(2) The books as referred to in paragraph (1) shall be prepared and furnished newly each year, and the pawnbroker or the manager shall record the number of pages, and receive a seal of approval from the chief of police station.
(3) In cases where the pawnbroker or the manager uses not less than two registers for the pawned articles or foreclosed articles in a given year, each volume cover shall be marked with “volume number of total number of volumes”.
Article 16(Imposition of Fine for Negligence) #
(1) In imposing the fines for negligence as provided in Article 35 (1) of the Act, the fact of violation and the amount of fine for negligence shall be clarified in writing after investigating and verifying the fact of violation concerned, and then it shall be noticed to the appropriate payer of the fine for negligence.
(2) In case where the chief of police station imposes the fines for negligence pursuant to paragraph (1), he shall give an opportunity for a statement of opinion in writing or orally to the appropriate payer of the fine for negligence by fixing a period which is not less than 10 days. In this case, if there is no statement of opinion within the designated period, it shall be considered that there is no opinion.
(3) The imposition standards based on the category of violation shall follow the annexed Table: Provided, That the chief of the police station may reduce or increase the amount of the imposition, after considering the motive or the result of the violation concerned within a half of the standard imposition amount for a fine for negligence. In this case, if he increases the imposition, the amount of the fine for negligence may not exceed 500,000 won.
(4) The collecting procedure of the fines for negligence shall be prescribed by the Ordinance of the Ministry of Home Affairs.
[This Article Wholly Amended by Presidential Decree No. 14965, Apr. 1, 1996]