Article 1(Purpose) #
The purpose of this Decree is to prescribe matters mandated by the Regional Credit Guarantee Foundation Act and matters necessary for the enforcement thereof.
[This Article Wholly Amended on Aug. 3, 2012]
Article 2(Scope of individual) #
"Persons prescribed by Presidential Decree" in subparagraph 3 of Article 2 of the Regional Credit Guarantee Foundation Act (hereinafter referred to as the "Act") means nationals of the Republic of Korea residing in the Republic of Korea who are classified as follows: <Amended on Jul. 26, 2017; Jun. 29, 2021>
1. In cases of a business on a personal credit guarantee account under Article 30-2 of the Act: A sole proprietor who has closed his or her business during the period of credit guarantee offered by a credit guarantee foundation under Article 9 of the Act (hereinafter referred to as "foundation") and whose credit rating or income, etc. meets the standards determined and publicly notified by the Minister of SMEs and Startups;
2. In cases of a business on a personal credit guarantee account under Article 35-7 (2) of the Act: A person whose credit rating, income, etc. meet the standards determined and publicly notified by the Minister of SMEs and Startups;
3. In cases of a business on an asset-based loan guarantee account for living expenses under Article 35-7(2) of the Act: A person whose assets, income, etc. meet the standards determined and publicly notified by the Minister of Health and Welfare.
[This Article Wholly Amended on Aug. 3, 2012]
Article 3(Financial companies) #
"Person ... prescribed by Presidential Decree" in subparagraph 4f of Article 2 of the Act means the following persons: <Amended on Oct. 25, 2016; Apr. 2, 2019>
1. A specialized credit financial business company under the Specialized Credit Finance Business Act;
2. A merchant bank under the Financial Investment Services and Capital Markets Act;
3. An agricultural cooperative and the NH Bank under the Agricultural Cooperatives Act;
4. A fisheries cooperative and the Suhyup Bank under the Fisheries Cooperatives Act;
5. A mutual savings bank under the Mutual Savings Banks Act;
6. The Korea Agro-Fisheries and Food Trade Corporation under the Korea Agro-Fisheries and Food Trade Corporation Act;
7. The Korea SMEs and Startups Agency established under Article 68 of the Small and Medium Enterprises Promotion Act;
8. A community credit cooperative under the Community Credit Cooperatives Act;
9. A credit union under the Credit Unions Act;
10. The Korea Federation of Small and Medium Business under Article 3(1)4 of the Small and Medium Enterprise Cooperatives Act; provided, application of this subparagraph shall be limited to where the Korea Federation of Small and Medium Business grants a loan relating to the mutual aid fund for small and medium enterprises under Article 111 of the aforesaid Act;
11. A forestry cooperative under the Forestry Cooperatives Act.
[This Article Wholly Amended on Aug. 3, 2012]
Article 4(Other financial obligations to be covered by credit guarantee) #
A financial obligation that a foundation and the Korea Federation of Credit Guarantee Foundations under Article 35 of the Act (hereinafter referred to as "Federation") can provide pursuant to subparagraph 5c of Article 2 of the Act, shall be as follows: <Amended on Sep. 29, 2016; Jul. 26, 2017; Jun. 29, 2021; Jan. 25, 2022; Jun. 18, 2024>
1. National taxes and local taxes to be borne by small and medium enterprises falling under a plan for fostering local small and medium enterprises and promoting their innovation under Article 6 of the Act on the Fostering of Local Small and Medium Enterprises and Promotion of Their Innovation (hereinafter referred to as "plan for fostering local small and medium enterprises") and by small enterprises, micro enterprises and individuals (hereinafter referred to as "small enterprise, etc.");
2. A debt on a note issued (including accepted and endorsed) by a small enterprise, etc. when a commercial transaction is accompanied by the note, and a debt on a note endorsed by a small enterprise, etc. for financing when the note is acquired for a commercial transaction;
3. A debt borne by a small enterprise, etc. when a facility is leased;
4. A debt for payment of various security deposits that a small enterprise, etc. bears when entering into a contract for construction works, supply of articles, provision of services, etc. (including bidding for such);
5. Other monetary debts determined and publicly notified by the Minister of SMEs and Startups.
[This Article Wholly Amended on Aug. 3, 2012]
Article 5(Business territory) #
Where any of the following applies, a foundation may provide a guarantee to small companies, etc. in the Special Metropolitan City, Metropolitan Cities, Dos or Special Self-Governing Province outside the business territory of the foundation: <Amended on Jul. 26, 2017>
1. Where the Minister of SMEs and Startups, Special Metropolitan City Mayor, Metropolitan City Mayors, Do Governors or Special Self-Governing Province Governor (hereinafter referred to as "Mayor/Do Governor") deem assistance is urgent due to disasters;
2. Where relevant Mayors/Do Governors deem needs arise as local government jurisdictions are changed or for the revitalization of local economies.
[This Article Wholly Amended on Aug. 3, 2012]
Article 5-2(Scope of loans) #
(1) The scope of loans under Article 7(3) of the Act provided by financial companies, etc. (hereinafter referred to as "bank, etc.") under subparagraph 4a through e of Article 2 of the Act shall be the loans under subparagraph 1 excluding the loans under subparagraph 2: <Amended on Dec. 30, 2014; Aug. 4, 2020; Jan. 5, 2021; Feb. 17, 2022; Apr. 8, 2025>
1. Loans falling under any of the following, among the account titles on a statement of financial position:
a. Loans receivable in the bank account;
b. Those in the trust account falling under any of the following:
1) Loans;
2) Privately-placed corporate bonds (applicable only to those purchased directly from enterprises);
3) Bills bought (applicable only to those purchased directly from enterprises);
4) Credit card loans (applicable only to a claim for price on purchasing cards and distribution cards);
c. Those in the merchant banking account falling under any of the following:
1) Discounted bills;
2) Discounted trade drafts;
3) Factoring bills (referring to bills that are acquired by an enterprise in connection with commercial transactions and then purchased, managed, and recovered by a factoring company);
4) Advances for customers;
5) Operating assets on cash management account;
2. Loans falling under any of the following:
a. Loans labeled loans receivable of a bank account falling under any of the following:
1) Loans denominated in won falling under any of the following:
2) Loans denominated in foreign currency falling under any of the following:
3) Domestic import usance (usance bills related to import);
4) Off-shore loans denominated in foreign currency;
5) Call loans (ultra short-term loans);
6) Bills bought (excluding commercial papers purchased directly from enterprises);
7) Bills bought in foreign currency;
Article 5-3(Rate, time, and methods of contribution) #
(1) Pursuant to Article 7(3) of the Act, a financial company, etc. shall contribute an amount calculated by applying the contribution rate under Appendix to the average monthly balance of loans under Article 5-2(1) and (2) as at the end of each month to a foundation and the Federation; provided, an agricultural cooperative, etc. shall make contributions to a foundation and the Federation through the National Agricultural Cooperative Federation, the National Federation of Fisheries Cooperatives, the Korea Federation of Savings Banks, the Korea Federation of Community Credit Cooperatives, the National Credit Union Federation of Korea or the National Forestry Cooperative Federation (hereafter referred to as "National Agricultural Cooperative Federation, etc." in this Article) with which they are affiliated.
(2) A financial company, etc. shall pay a monthly contribution under paragraph (1), to the Federation by the end of the following month.
(3) When a financial company, etc. pay contributions under paragraph (2), they shall submit the following documents to the Federation; provided, an agricultural cooperative, etc. shall submit the following documents to the Federation through the National Agricultural Cooperative Federation, etc.: <Amended on Jul. 26, 2017>
1. Statement of contributions;
2. Documents evidencing average monthly balance;
3. Statement of loans classified as follows:
a. A bank, etc.: Statement of loans under the items of Article 5-2(1)2;
b. An agricultural cooperative, etc.: Statement of loans under the subparagraphs of Article 5-2(2);
4. Other documents determined and publicly notified by the Minister of SMEs and Startups.
(4) Notwithstanding paragraph (2), where a foundation and the Federation jointly make a request concerning the amount to be contributed, timing for payment, method of ex post facto settlement of contributions, etc. to a financial company, etc. with the approval of the Minister of SMEs and Startups, a financial company, etc. may first pay contributions that are to be paid in the future. <Amended on Jul. 26, 2017>
(5) The period during which agricultural cooperatives, etc. make contributions to foundations and the Federation shall not exceed ten years from the date they begin to make a contribution.
(6) The date on which agricultural cooperatives, etc. can cease to make a contribution shall be separately determined and publicly notified by the Minister of SMEs and Startups, and the Minister of SMEs and Startups shall notify the National Agricultural Cooperative Federation, etc. thereof by not later than three months before such date. <Amended on Jul. 26, 2017>
Article 5-4(Standards for allocation of contribution and time) #
(1) The standards for allocation of contributions paid by banks, etc. pursuant to Article 5-3 shall be classified as follows: <Amended on Jul. 26, 2017>
1. The standards for allocation of contributions among foundations and the Federation shall be determined and publicly notified by the Minister of SMEs and Startups based upon following matters:
a. The scale of contributions made by the Government to the Federation pursuant to Article 35-6(1)1 of the Act;
b. The scale, etc. of compensation paid to foundations by the Federation as the Federation gave a re-guarantee for foundations;
c. Matters under the items of subparagraph 2;
2. The standards for allocation of contributions to each foundation according to the standards under subparagraph 1 shall be determined and publicly notified by the Administrator of Small and Medium Business Administration in consideration of the following matters:
a. The scale of contributions made by local governments to foundations pursuant to Article 7(1)1 of the Act and the financial status of relevant local governments;
b. Records of credit guarantees that foundations gave in the immediately preceding year;
c. The number and scale of small enterprises, etc. located in the business territory of foundations;
d. Where disasters under subparagraph 1 of Article 2 of the Countermeasures against Natural Disasters Act occur, the scale, etc. of credit guarantees necessary for small enterprises, etc. to recover from damage.
(2) The standards for allocation of contributions paid by agricultural cooperatives, etc. pursuant to Article 5-3 shall comply with the following classifications: <Amended on Jul. 26, 2017>
1. The standards for allocation of the total amount of contributions among foundations and the Federation shall be determined and publicly notified by the Administrator of Small and Medium Business Administration in consideration of the following matters:
a. The scale of contributions made by the government to foundations and to the Federation according to Article 35-6(1)1 of the Act;
b. The scale of credit guarantees provided by foundations and the Federation with agricultural cooperatives, etc. as a creditor;
Article 6(Application documents for establishment of foundation) #
(1) "Documents prescribed by Presidential Decree" in Article 9(3)4 of the Act means the following documents: <Amended on Jun. 29, 2021>
1. Documents in which the details of endowment are stated;
2. Resumes and written acceptance of office of the chief director and proposed directors.
(2) Determination of whether establishment of a foundation is authorized pursuant to Article 9(4) of the Act and notification thereof shall be made within 30 days from the date of receipt of application. In such cases, if authorization is denied, detailed grounds therefor shall be notified.
(3) The Minister of SMEs and Startups in receipt of an application for authorization under Article 9(3) of the Act shall verify the abstract copy of resident registration card of the chief director and proposed directors through sharing of administrative information under Article 36(1) of the Electronic Government Act; provided, where an applicant does not give consent, he or she shall be required to attach relevant documents. <Amended on Jul. 26, 2017>
[This Article Wholly Amended on Aug. 3, 2012]
Article 7(Matters to be stated in articles of association) #
"Matters prescribed by Presidential Decree" in Article 10(1)13 of the Act means the following:
1. Matters concerning the total limit on credit guarantee;
2. Matters concerning the operation of surplus funds;
3. Other important matters concerning the operation of foundation.
[This Article Wholly Amended on Aug. 3, 2012]
Article 8(Registration for incorporation) #
The registration for incorporation of a foundation under Article 11 of the Act shall include the following matters:
1. Purpose of incorporation of foundation;
2. Name of foundation;
3. Location of main office;
4. Location of branch offices;
5. Endowment at the time of incorporation;
6. Name, resident registration number and address of chief director;
7. Names and resident registration numbers of directors and auditor;
8. Method of making public announcement.
[This Article Wholly Amended on Aug. 3, 2012]
Article 9(Registration of establishment of branch offices) #
Where the foundation establishes a branch, it shall register the name, location, and date of establishment of the branch at the seat of its main office within two weeks from such establishment.
[This Article Wholly Amended on Jan. 21, 2025]
Article 10(Registration of relocation) #
(1) Where the foundation relocates its main office, it shall register the new location and the date of relocation at the old or new location within two weeks from such relocation.
(2) Where the foundation relocates its branch office, it shall register the new location and the date of transfer at the seat of its main office within two weeks from such relocation.
[This Article Wholly Amended on Jan. 21, 2025]
Article 11(Registration of modification) #
Where any matter registered under the subparagraphs of Article 8 or Article 9 is modified (excluding registration of relocation under Article 10), the foundation shall register such modification at the seat of its main office within two weeks therefrom.
[This Article Wholly Amended on Jan. 21, 2025]
Article 12(Registration of appointment of representative) #
Where the chairperson of a foundation appoints a representative pursuant to Article 16 of the Act, he or she shall register the following matters at the seat of the main office within two weeks from such appointment. The same shall also apply to the modification of registered matters: <Amended on Jan. 21, 2025>
1. Name, resident registration number, and address of the representative;
2. Name of main office or branch office to which the representative is assigned;
3. Where the authority of the representative is restricted, the details of restriction.
[This Article Wholly Amended on Aug. 3, 2012]
Article 13(Counting of registration period) #
Where matters to be registered pursuant to Articles 9 through 12 require authorization or approval from the Minister of SMEs and Startups, registration period shall be counted from the day relevant written authorization or written approval arrives. <Amended on Jul. 26, 2017>
[This Article Wholly Amended on Aug. 3, 2012]
Article 14(Applicants for registration) #
(1) The registration for incorporation under Article 8 shall be filed by the representative of promoters, and the registration under Articles 9 through 12 shall be filed by the chief director of a foundation.
(2) An application for registration under Articles 8 through 12 shall be accompanied by the following documents:
1. Registration of establishment under Article 8: Copies of the articles of association of a foundation, written authorization for establishment, and documents evidencing appointment of the chief director pursuant to Article 15(1) of the Act;
2. Registration of establishment of branch offices under Article 9: Documents evidencing establishment of branch offices;
3. Registration of relocation under Article 10: Documents evidencing relocation of the main office or branch office;
4. Registration of modification under Article 11: Documents evidencing relevant modification;
5. Registration of appointment of a representative under Article 12: Documents evidencing that appointment of the representative complies with Article 16 of the Act (including document evidencing restriction where authority of the representative is restricted).
[This Article Wholly Amended on Aug. 3, 2012]
Article 15(Provisions concerning registration to be applied with necessary modifications) #
The provisions concerning incorporated foundations under the Civil Act shall apply to the registration of foundations unless otherwise expressly provided for by this Decree.
[This Article Wholly Amended on Aug. 3, 2012]
Article 16(Limit of credit guarantee) #
(1) The limit of total amount of credit guarantee to be provided by a foundation and the Federation under Article 19(1) of the Act (including cases in which such provision applies mutatis mutandis pursuant to Article 35-9 of the Act) shall be as follows:
1. Foundation: It shall be 15 times the sum of endowment and profit carried forward, but be operated after separating a personal credit guarantee account from other accounts;
2. Federation: It shall be 15 times the sum of endowment on a personal credit guarantee account and profit carried forward.
(2) A foundation and the Federation may separately determine the total limit on credit guarantee by articles of association in consideration of the economic circumstances, etc. of the area under jurisdiction within the total limit on credit guarantee under paragraph (1).
(3) The maximum limit on credit guarantee that a foundation and the Federation can provide to small enterprises, etc. pursuant to Article 19(2) of the Act (including cases in which such provision applies mutatis mutandis pursuant to Article 35-9 of the Act) shall be as follows: <Amended on Jun. 28, 2016; Jul. 26, 2017; Jun. 29, 2021; Jan. 25, 2022>
1. Maximum limit of credit guarantee a foundation can provide: It shall be 800 million won; provided, for medium and small enterprises, small enterprises and micro enterprises funded by Mayors/Do Governors according to a plan for fostering local small and medium enterprises, maximum limit of credit guarantee that can be provided may be fixed at an amount in excess of 800 million won with the approval of the Mayors/Do Governors after resolution by the board of directors;
2. Maximum limit of personal credit guarantee the Federation can provide: 50 million won; provided, where the Minister of SMEs and Startups deems special needs exist for the national economy, it may set a separate maximum limit upon determination by the steering committee under Article 24-3.
[This Article Wholly Amended on Aug. 3, 2012]
Article 17(Guarantee obligation) #
The scope of a financial obligation for which a credit guarantee is provided by a foundation pursuant to Article 20 of the Act shall be a guarantee amount for which a guarantee relationship is established pursuant to Article 23 of the Act and a subordinate obligation under Article 20.
[This Article Wholly Amended on Aug. 3, 2012]
Article 18(Preferential guarantee) #
"Funds prescribed by Presidential Decree" in subparagraph 3 of Article 21 of the Act means the following funds: <Amended on Jul. 26, 2017>
1. Funds to support recovery from disasters that are eligible for relief under Article 3 of the Disaster Relief Act;
2. Funds deemed by the Minister of SMEs and Startups or Mayors/Do Governors to be necessary for the revitalization of regional economy or for the promotion of regional specialized industry.
[This Article Wholly Amended on Aug. 3, 2012]
Article 19(Cause for requesting fulfillment of guarantee obligations) #
(1) "Where any cause prescribed by Presidential Decree arises" in Article 24(1) of the Act means the following:
1. In cases of credit guarantee for a financial obligation under subparagraph 5a of Article 2 of the Act: Where small enterprises, etc. provided with credit guarantee fails to fulfill a financial obligation by the due date or when three months pass from when the benefit of time is lost;
2. In cases of credit guarantee for a financial obligation under subparagraph 5b of Article 2 of the Act: When three months pass from the time a creditor fulfills a guarantee obligation;
3. In cases of credit guarantee for a financial obligation under subparagraph 5c of Article 2 of the Act: Where a cause specified in the business manual under Article 18 of the Act (hereinafter referred to as "business manual") arises.
(2) Where a small enterprise, etc. falls under any of the following, a creditor may request a foundation to fulfill a guarantee obligation notwithstanding paragraph (1). In such cases, consent from a small enterprise, etc. shall be obtained in advance, in cases falling under subparagraph 4: <Amended on Oct. 4, 2022>
1. Where a small enterprise, etc. goes bankrupt or dissolve;
2. Where a small enterprise, etc. fails to carry on business continuously for six months or more;
3. Where there are reasonable grounds to believe that debts are impossible to collect from a small enterprise, etc., which are approved by the board of directors of the foundation;
4. Where there is a need for debt adjustment, such as a rapid decline in the capability to fulfill the obligation, other than cases prescribed in subparagraphs 1 through 3, and where any cause prescribed by the Minister of SMEs and Startups arises.
(3) Where a creditor intends to request the fulfillment of a guarantee obligation pursuant to paragraph (2), he or she shall prove the ground thereof.
[This Article Wholly Amended on Aug. 3, 2012]
Article 20(Scope of subordinate obligation) #
"Subordinate obligations prescribed by Presidential Decree" in Article 24(2) of the Act means the following:
1. In cases of credit guarantee for a financial obligation under subparagraph 5a of Article 2 of the Act: Interest accruing until a foundation fulfills a guarantee obligation after a primary obligation reaches maturity. In such cases, the interest rate applied to the contract period of the primary obligation shall be applicable;
2. In cases of credit guarantee for a financial obligation under subparagraph 5b and c of Article 2 of the Act: Interest specified in the business manual and other amounts to be borne by a debtor;
3. Other expenses incurred by a creditor for the collection of a debt, which are recognized by the board of directors of a foundation.
[This Article Wholly Amended on Aug. 3, 2012]
Article 20-2(Sale of claim for indemnity) #
"Persons ... prescribed by Presidential Decree" in subparagraph 3 of Article 25-2 of the Act means any of the following persons: <Amended on Aug. 4, 2020; Oct. 4, 2022>
1. The Korea Asset Management Corporation;
1-2. A company in which the Korea Asset Management Corporation makes investments to perform the services prescribed in Article 26(1)1 and 2 of the Act on the Establishment of Korea Asset Management Corporation;
2. A special purpose company under the Asset-Backed Securitization Act;
3. A claims collection agency under subparagraph 10-2 of Article 2 of the Credit Information Use and Protection Act.
[This Article Added on Jun. 30, 2009]
Article 21(Guarantee fees) #
(1) The guarantee fees under Article 27(1) of the Act and additional guarantee fees under paragraph (2) of the same Article shall be calculated by a foundation at the rate specified in the business manual in consideration of the credit worthiness of a small enterprise, etc., kind of guarantee, etc.
(2) The late-payment penalty under Article 27(3) of the Act shall be calculated by multiplying the unpaid guarantee fee by an annual interest rate of 10/100.
[This Article Wholly Amended on Aug. 3, 2012]
Article 22(Damages) #
The damages under Article 28 of the Act shall be calculated by multiplying a guarantee obligation fulfilled by a foundation or the Federation by the rate specified in the business manual in consideration of the interest rate for a loan in arrears of a financial company, etc.
[This Article Wholly Amended on Aug. 3, 2012]
Article 23(Procedures for establishing federation) #
(1) Where a Federation is to be established, five or more foundations shall promote the establishment thereof.
(2) Matters necessary for the affairs and operation of the Federation shall be specified by the articles of association of the Federation.
(3) In addition to those prescribed by this Decree, procedures for the incorporation of the Federation shall follow the precedents on incorporation of incorporated associations under the Civil Act.
[This Article Wholly Amended on Aug. 3, 2012]
Article 24(Articles of association of federation) #
The articles of association of the Federation shall include the following:
1. Purpose;
2. Name;
3. Details of duties;
4. Location of its office;
5. Matters concerning the collection of membership fees and operating expenses;
6. Matters concerning executive officers and employees;
7. Matters concerning general meetings;
8. Matters concerning the board of directors;
9. Matters concerning reguarantee;
10. Matters concerning personal credit guarantee;
11. Matters concerning affairs of collection of debts from debtors, which are entrusted by foundations;
12. Matters concerning accounting;
13. Matters concerning dissolution;
14. Matters concerning amendment of the articles of association;
15. Matters concerning requesting information and data to foundations;
16. Other important matters concerning the operation of the Federation.
[This Article Wholly Amended on Aug. 3, 2012]
Article 24-2(Standards of reguarantee for individual agreements) #
"If the guarantee amount, etc. meets the standards prescribed by Presidential Decree" in the proviso of Article 35-5(2) of the Act means where the guarantee amount is at least 200 million won.
[This Article Added on Jun. 28, 2016]
[Previous Article 24-2 moved to Article 24-3 <Jun. 28, 2016>]
Article 24-3(Composition of steering committee) #
(1) The members of the steering committee under Article 35-5(3) of the Act (hereinafter referred to as "committee") shall consist of the following persons: <Amended on Sep. 29, 2016; Jul. 26, 2017; Jan. 25, 2022; Jun. 18, 2024; Dec. 30, 2025>
1. The chairperson and a managing director of the Federation;
2. One person nominated by the Minister of Planning and Budget among public officials under his or her jurisdiction;
3. One person nominated by the Minister of SMEs and Startups among public officials under his or her jurisdiction;
4. Two persons, each nominated respectively by heads of two banks designated by the Minister of SMEs and Startups (referring to banks under Article 2(1)2 of the Banking Act) among executives affiliated with such banks;
5. Two persons, one nominated by the heads of institutions supporting local small and medium enterprises designated by the Minister of SMEs and Startups (referring to institutions referred to in the subparagraphs of Article 18 of the Enforcement Decree of the Act on the Fostering of Local Small and Medium Enterprises and Promotion of Their Innovation) from among executives affiliated therewith and the other, by the head of the organizations of small-medium entrepreneurs designated by the Minister of SMEs and Startups (referring to such organizations falling under subparagraph 7 of Article 2 of the Act on the Promotion of Collaborative Cooperation between Large Enterprises and Small-Medium Enterprises) from among executives affiliated therewith;
6. Two persons selected at the general meeting of the Federation from among the chief directors of foundations.
(2) The term of office of the members under paragraph (1)4 through 6 shall be two years.
(3) The chairperson of the committee (hereinafter referred to as "chairperson") shall become the chairperson of the Federation.
(4) The chairperson shall represent the committee and manage the duties of the committee.
(5) Where the chairperson is unable to perform any of his or her duties due to unavoidable reasons, his or her duties shall be performed by persons in the following order: The managing director of the Federation and members designated by the chairperson.
[This Article Wholly Amended on Aug. 3, 2012]
[Moved from Article 24-2; previous Article 24-3 moved to Article 24-4 <Jun. 28, 2016>]
Article 24-4(Operation of committee) #
(1) The chairperson shall call and chair meetings of the committee.
(2) The meetings of the committee shall convene with a majority of the members in attendance; and resolutions shall be passed with the affirmative vote of a majority of members present.
(3) Matters necessary for the operation of the committee in addition to those prescribed by this Decree shall be determined by the chairperson after discussion by the committee.
[This Article Wholly Amended on Aug. 3, 2012]
[Moved from Article 24-3; previous Article 24-4 moved to Article 24-5 <Jun. 28, 2016>]
Article 24-5(Rate of reguarantee) #
"Ratio ... prescribed by Presidential Decree" in Article 35-5(5) of the Act means 50/100; provided, in any of the following cases, the Minister of SMEs and Startups may set different ratios which are classified as follows: <Amended on Jul. 26, 2017>
1. If deemed necessary to further vitalize the economy, expand guarantee support for small enterprises, etc., stabilize the livelihood of people, or to recover from a pressing disaster: Greater than 50/100 but not greater than 80/100;
2. If deemed necessary to maintain the financial strength of the Federation, for instance, cases where a guarantee event is highly likely to occur or where the guarantee period is long term: Not less than 30/100 but less than 50/100.
[This Article Wholly Amended on Jun. 28, 2016]
[Moved from Article 24-4; previous Article 24-5 moved to Article 24-6 <Jun. 28, 2016>]
Article 24-6(Contract period of reguarantee) #
(1) The reguarantee contract period shall be within one year.
(2) The reguarantee contract under paragraph (1) shall provide for matters concerning the payment of reguarantee fees, payment of compensation, etc. and submission of reports for the verification as to whether such matters are implemented, and inspection of the status of duties, etc.
[This Article Wholly Amended on Aug. 3, 2012]
[Moved from Article 24-5; previous Article 24-6 moved to Article 24-7 <Jun. 28, 2016>]
Article 24-7(Maximum limit of reguarantee) #
The maximum limit of reguarantee to be provided to the same small enterprise, etc. shall be 400 million won; provided, where the Minister of SMEs and Startups deems it necessary for the revitalization of the economy, increase in support with guarantee to small enterprises, stabilization of the living condition of individuals, recovery from emergencies, etc., maximum limit shall be 500 million won. <Amended on Jul. 26, 2017>
[This Article Wholly Amended on Aug. 3, 2012]
[Moved from Article 24-6; previous Article 24-7 moved to Article 24-8 <Jun. 28, 2016>]
Article 24-8(Calculation of compensation) #
The compensation paid by the Federation where a foundation makes a substitute payment to fulfill a guarantee obligation shall be an amount calculated by multiplying the amount calculated by subtracting an amount collected by the foundation by exercising its right of indemnity from the amount paid by the foundation in substitution for a defaulter by the rate of reguarantee.
[This Article Wholly Amended on Aug. 3, 2012]
[Moved from Article 24-7; previous Article 24-8 moved to Article 24-9 <Jun. 28, 2016>]
Article 24-9(Return of compensation) #
Where a foundation, after the Federation compensates the foundation under Article 24-8 and the foundation pays a guarantee obligation in substitute for a defaulter, collects the amount paid in substitute for a defaulter by exercising its right of indemnity, it shall return an amount calculated by multiplying the collected amount by the rate of reguarantee to the Federation. <Amended on Jun. 28, 2016>
[This Article Wholly Amended on Aug. 3, 2012]
[Moved from Article 24-8; previous Article 24-9 moved to Article 24-10 <Jun. 28, 2016>]
Article 24-10(Termination and change of reguarantee contracts) #
Where a foundation fails to implement a contract under Article 35-5(1) of the Act, the Federation may terminate or amend the contract.
[This Article Wholly Amended on Aug. 3, 2012]
[Moved from Article 24-9; previous Article 24-10 moved to Article 24-11 <Jun. 28, 2016>]
Article 24-11(Provisions to be applied with necessary modifications) #
The provisions of Articles 9 through 13, 14(2)2 through 5, 17, 19, 20, 20-2, 21, and 22 shall apply mutatis mutandis to the Federation. In such cases, "foundation" shall be construed as "Federation", "chief director" as "chairperson", "board of directors" as "steering committee", "main office" as "company", and "branch office" as "office", respectively.
[This Article Added on Jun. 30, 2009]
[Moved from Article 24-10 <Jun. 28, 2016>]
Article 25(Delegation and rntrustment) #
(1) Pursuant to Article 40(1) of the Act, the Minister of SMEs and Startups shall delegate the following authority to Mayors/Do Governors: <Amended on Jul. 26, 2017>
1. Approval for duties incidental to credit guarantee among duties under subparagraph 6 of Article 17 of the Act;
2. Approval of budgets under Article 30(1) of the Act and approval for modification.
(2) Where a foundation entrusts duties to financial companies, the Federation, the Korea Asset Management Corporation, or credit information companies pursuant to Article 40(3) of the Act, it shall determine the details and conclude a contract.
(3) Where the chairperson of the Federation entrusts duties to financial companies, the Federation, the Korea Asset Management Corporation or credit information companies pursuant to Article 40(3) of the Act, he or she shall determine the details and conclude a contract.
[This Article Wholly Amended on Aug. 3, 2012]
Article 25-2(Management of personally identifiable information) #
(1) Where it is inevitable for performing the following affairs, a foundation (including a person entrusted with the business of a foundation pursuant to Article 25(2)) may manage data containing 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:
1. Affairs concerning the business of a foundation under subparagraphs 2 through 8 of Article 17 of the Act;
2. Affairs concerning a notice given to a small enterprise, etc. and its prospective creditor under Article 23(1) of the Act;
3. Affairs concerning the performance of guaranteed obligations under Article 24 of the Act;
4. Affairs concerning the exercise of rights to demand indemnity under Article 25(1) through (3) of the Act;
5. Affairs concerning the sale of claims for indemnity under Article 25-2 of the Act;
6. Affairs concerning the request for submission of materials under Article 37-2 of the Act.
(2) Where it is inevitable for performing the following affairs, the Foundation (including a person entrusted with the business of the Foundation pursuant to Article 25(3)) may manage data containing 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:
1. Affairs concerning the business of the Foundation specified in subparagraphs 1, 4, 6, 7, 9, and 10 of Article 35(3) of the Act;
2. Affairs concerning re-guarantees under Article 35-5 of the Act;
3. Affairs concerning a notice given to a small enterprise, etc. and its prospective creditor under Article 23(1) of the Act, which is applied mutatis mutandis pursuant to Article 35-9 of the Act;
4. Affairs concerning the performance of guaranteed obligations under Article 24 of the Act, which is applied mutatis mutandis pursuant to Article 35-9 of the Act;
5. Affairs concerning the exercise of rights to demand indemnity under Article 25(1) through (3) of the Act, which is applied mutatis mutandis pursuant to Article 35-9 of the Act;
6. Affairs concerning the sale of claims for indemnity under Article 25-2 of the Act, which is applied mutatis mutandis pursuant to Article 35-9 of the Act;
Article 26(Reexamination of regulations) #
The Minister of SMEs and Startups shall examine the validity of the following matters every three years (meaning until the day preceding every third anniversary from the base date) from the following base dates and implement improvement measures, etc.: <Amended on Jul. 26, 2017>
1. The ratio of money to be contributed to foundations and the Federation by financial companies, etc. under Article 5-3(1) through (4) and Appendix, time and method of contribution and the period under Article 5-3(5) during which agricultural cooperatives, etc. make contributions to foundations and the Federation: January 1, 2014;
2. The limit on total credit guarantees under Article 16 to be provided by a foundation and the Federation, and the maximum limit on credit guarantee under Article 16 to be provided by a foundation and the Federation to the same small enterprise, etc.: January 1, 2014.
[This Article Added on Dec. 30, 2013]