Article 17-5(Ceiling on credit extension to same borrower) #
(1) The Export-Import Bank may not extend credit in excess of 50/100 of its equity capital to one same individual or corporation, or a person belonging to the same enterprise group as such individual or corporation (hereinafter referred to as "same borrower"); provided, this shall not apply in any of the following cases: <Amended on Sep. 7, 2012; Aug. 7, 2018; Dec. 30, 2025>
1. Where additional credit is extended to a company under rehabilitation proceedings in accordance with the Debtor Rehabilitation and Bankruptcy Act or against which measures to normalize management are underway jointly by financial institutions for purposes such as corporate restructuring;
2. Where additional credit is extended to a person who has acquired a company falling under subparagraph 1, in accordance with an acquisition agreement;
3. Where the ceiling on the credit extension has been exceeded due to the following grounds, without additional credit extension:
a. Increase in the amount converted into won currency due to changes in the exchange rate;
b. Reduction in the equity capital of the Export-Import Bank;
c. Alteration in the composition of the same borrower;
d. Merger, or transfer or acquisition of business, between enterprises to which credit has been extended;
e. Any other compelling causes, such as rapid changes in economic conditions, recognized by the Financial Services Commission;
4. Where no credit risk is deemed to exist or where it is deemed necessary for achieving the purposes of the establishment of the Export-Import Bank, either of which is recognized by the Financial Services Commission after consultation with the Minister of Economy and Finance.
(2) Where the ceiling on credit extension set forth in paragraphs (1), (3) and, (4) has been exceeded under paragraph (1)3, the credit extension amount shall be adjusted to conform to the ceiling set forth in paragraphs (1), (3), and (4) within one year from the date on which the ceiling was exceeded; provided, in any of the following cases, the said period may be extended to a period of time determined by the Financial Services Commission:
1. Where collection of the extended credit within the said period is impracticable because the maturity of the extended credit has not been reached;
2. Where the event set forth in paragraph (1)3a or b continues to exist for a prolonged period and collection of the extended credit is likely to significantly impair the management stability of the person to whom the credit has been extended;
3. Where it falls under an event equivalent to the events set forth in subparagraph 1 or 2 and it is deemed by the Financial Services Commission that a continued breach of the ceiling for a certain period does not significantly impair the asset quality of the Export-Import Bank.
(3) The Export-Import Bank may not extend credit in excess of 40/100 of its equity capital to one same individual or corporation; provided, the same shall not apply in cases falling under any subparagraphs of paragraph (1). <Amended on Sep. 7, 2012; Aug. 7, 2018>
(4) The total aggregated amount of large credit extension by the Export-Import Bank (which shall mean an amount of credit extension in excess of 10/100 of the equity capital of the Export-Import Bank to each of the same borrower) shall not exceed six times its equity capital; provided, the same shall not apply in cases falling under any subparagraphs of paragraph (1). <Amended on Sep. 7, 2012>
[This Article Wholly Amended on Jun. 20, 2008]