Article 1(Purpose) #
The purpose of this Act is to promote the management stability of farming and fishing households and the stable development of agriculture and fisheries by alleviating the financial burden on farmers and fishers experiencing difficulties due to the conclusion of the Uruguay Round, the creation of the World Trade Organization, and the increase in their debt.
Article 2(Definitions) #
The terms used in this Act are defined as follows: <Amended on Dec. 31, 2001; Apr. 11, 2007; Apr. 1, 2009; May 27, 2009; Mar. 31, 2011; Jun. 22, 2015; May 29, 2016>
1. The term "farmers and fishers" means farmers defined in subparagraph 2 of Article 3 of the Framework Act on Agriculture, Rural Community and Food Industry and fishers defined in subparagraph 3 of Article 3 of the Framework Act on Fisheries and Fishing Villages Development, foresters defined in subparagraph 2 of Article 2 of the Forestry and Mountain Villages Development Promotion Act, and agricultural partnerships, fisheries partnerships, agricultural corporations and fisheries corporations referred to in Articles 16 and 19 of the Act on Fostering and Supporting Agricultural and Fisheries Business Entities;
2. The term "financial institutions" means the National Federation, its member cooperatives and the NH Bank under the Agricultural Cooperatives Act, the National Federation and its member cooperatives under the Forestry Cooperatives Act, and the National Federation, its member cooperatives and Suhyup Bank under the Fisheries Cooperatives Act;
3. The term "debt" means the principal that a farmer or fisher borrows from a financial institution for purposes of engaging in agriculture or fisheries;
4. The term "policy funds" means funds that the Government lends, from its budget or the Fund, to financial institutions or funds of financial institutions, the interest difference of which is covered by the Government, among mid-to long-term funds with a maturity of over a year that farmers or fishers borrow from financial institutions;
5. The term "mutual financing funds" means funds that farmers and fishers borrow for purposes of engaging in agriculture or fisheries, among deposits in member cooperatives;
6. The term "delinquency" means a failure to repay debt or interest thereon within the agreed due date.
Article 3(Deferment of repayment of policy funds) #
(1) The policy fund, the repayment date of which arrives on or after January 1, 2004, among policy funds that a farmer or fisher borrowed on or before December 31, 2003, may be repaid in installments over 15 years after a 5-year grace period as agreed upon between the relevant farmer or fisher and the financial institution. <Amended on Mar. 5, 2004; Feb. 11, 2020>
(2) The scope of policy funds, the repayment of which may be deferred under paragraph (1), shall be determined by the Minister of Agriculture, Food and Rural Affairs upon consultation with the Minister of Oceans and Fisheries. <Amended on Feb. 29, 2008; Mar. 23, 2013; Feb. 11, 2020>
(3) The interest rate on the policy funds under paragraph (1) shall be 15/1000 per annum. <Added on Dec. 26, 2002; Mar. 5, 2004; Feb. 11, 2020>
Article 4(Support for mutual financing funds) #
(1) The Government shall provide funds worth 10 trillion won in 2001 to ease the interest burden associated with mutual financing funds borrowed by farmers or fishers from financial institutions for purposes of engaging in agriculture or fisheries.
(2) The funds referred to in paragraph (1) shall be calculated on the basis of the outstanding balance of mutual financing funds loaned to farmers and fishers as of January 8, 2001; provided, if the loan balance of the relevant farmers and fishers as of January 8, 2001 exceeds the loan balance as of December 31, 1999, the latter shall serve as the basis for such calculation. <Amended on Mar. 5, 2004; Feb. 11, 2020>
(3) The interest rate on the funds provided pursuant to paragraph (1) shall be 3/100 per annum, and the repayment period shall be within 5 years from the date of receipt of the funds. <Amended on Mar. 5, 2004, Feb. 11, 2020>
(4) Farmers or fishers provided with the agricultural or fisheries business improvement funds under paragraph (5) may be eligible to receive the difference between such amount and the amount calculated under paragraph (2) if the former is smaller than the latter. <Amended on Feb. 11, 2020>
Article 4-2(Additional support for mutual financing funds) #
(1) The Government shall provide funds worth 7 trillion won in 2004 to ease the interest burden on farmers or fishers experiencing difficulties associated with the conclusion of the Free Trade Agreement between the Government of the Republic of Korea and the Government of the Republic of Chile and the increase in debt from mutual financial funds.
(2) The funds referred to in paragraph (1) shall be calculated on the basis of the loan balance as of December 31, 2003 for the loans extended on or after January 1, 2000. In such cases, the repayment period therefor shall be within 5 years from the date of receipt of such funds. <Amended on Feb. 11, 2020>
(3) The interest rate on the funds provided pursuant to paragraph (1) shall be 5/100 per annum, which shall apply only to farmers or fishers who repay at least 10/100 of the loan balance by the interest payment date each year. <Amended on Feb. 11, 2020>
[This Article Added on Mar. 5, 2004]
Article 4-3(Deferred repayment of 2001 mutual financing loans) #
(1) A farmer or fisher may repay funds provided under Article 4 in installments over 3 years as agreed upon with the relevant financial institution.
(2) Notwithstanding paragraph (1), if a farmer or fisher repays at least 10/100 of the funds provided under Article 4, the repayment may be made in installments over 5 years as agreed upon with the relevant financial institution. <Amended on May 27, 2009; Feb. 11, 2020>
(3) The interest rate on the funds under paragraph (1) shall be 5/100 per annum, and that on the funds under paragraph (2) shall be 3/100 per annum.
[This Article Added on Dec. 29, 2005]
Article 4-4(Deferred repayment of 2004 additional mutual financing loans) #
(1) A farmer or fisher may repay funds provided under Article 4-2 in installments over 5 years as agreed upon with the relevant financial institution.
(2) The interest rate on the funds under paragraph (1) shall be 5/100 per annum.
[This Article Added on May 27, 2009]
Article 5(Provision of agricultural or fisheries business improvement funds) #
(1) The Government shall provide funds for agricultural and fisheries business improvement to stabilize the business of farmers and fishers experiencing a temporary crisis in their business. In such cases, the interest rate on such funds shall be 3/100 per annum. <Amended on Mar. 5, 2004>
(2) The agricultural and fisheries business improvement funds under paragraph (1) amounting to 1.1 trillion won shall be provided by 2001, and shall be repaid in installments over 3 years after a 2-year grace period from the date of receipt thereof; provided, in the case of farmers or fishers deemed by the agricultural and fisheries households debt review and business evaluation committee under Article 9 to require deferment of repayment for business normalization, in accordance with the standards determined by the Minister of Agriculture, Food and Rural Affairs in consultation with the Minister of Oceans and Fisheries, the agricultural and fisheries business improvement funds may be repaid in installments over 7 years after a 3-year grace period under the changed terms and conditions. <Amended on May 27, 2003; Mar. 5, 2004; Feb. 29, 2008; Mar. 23, 2013; Feb. 11, 2020>
(3) Deleted. <Mar. 5, 2004>
Article 5-2(Provision of agricultural or fisheries business rehabilitation funds) #
(1) The Government shall provide agricultural and fisheries business rehabilitation funds, within its budget, to help stabilize the business of farmers and fishers facing a temporary business crisis due to disasters, livestock diseases, pests, red tides, sudden drops in agricultural and fisheries product prices, or other reasons. In such cases, the interest rate on the agricultural and fisheries business rehabilitation funds shall be determined by the Minister of Agriculture, Food and Rural Affairs and the Minister of Oceans and Fisheries in consultation with the Minister of Planning and Budget, which shall not exceed 3/100 per annum. <Amended on Feb. 3, 2015; Dec. 8, 2020; Oct. 1, 2025>
(2) The agricultural or fisheries business rehabilitation funds under paragraph (1) may be repaid in installments over 7 years after a 5-year grace period from the date of receipt of such funds. <Amended on Feb. 11, 2020, Dec. 8, 2020>
[This Article Added on Mar. 5, 2004]
Article 6(Support for damage caused by joint and several guarantee) #
(1) Where the delinquent primary debtor is, or is deemed to be, unable to repay his or her debt and interest thereon and a farmer or fisher is obligated to repay them as a joint guarantor, the Government may provide special funds to the extent of the relevant debt and interest. <Amended on Feb. 11, 2020>
(2) Where a farmer or fisher who is a joint guarantor repays debt and interest thereon between January 1, 1998 and January 7, 2001, the Government may provide special funds to the extent of the amount repaid. <Amended on Mar. 5, 2004; Feb. 11, 2020>
(3) The special funds referred to in paragraphs (1) and (2) shall be provided in the amount of 550 billion won in 2001. In such cases, the interest rate thereon shall be 3/100 per annum and repayment shall be made in installments over 17 years after a 3-year grace period from the date of receipt of such funds. <Amended on Dec. 26, 2002; Mar. 5, 2004; Feb. 11, 2020>
Article 7(Support for delinquents and joint guarantors) #
(1) Financial institutions shall take such measures as reduction of overdue interest and provision of funds for addressing delinquency for a specified period of time where it is deemed possible for farmers or fishers failing to repay debts and interests thereon as of the enforcement date of this Act to normalize their business.
(2) The Government shall provide support under Article 4-3 or 4-4 to farmers or fishers whose overdue debts have been cleared as a result of the measures under paragraph (1) despite that the funds for addressing delinquency are provided after this Act enters into force. <Amended on Mar. 5, 2004; Dec. 29, 2005; May 27, 2009; Feb. 11, 2020>
(3) The former part of Article 4-2 (2) shall apply mutatis mutandis to paragraph (2), but "December 31, 2003" shall be construed as "the date the funds for addressing delinquency are loaned"; provided, if the amount of such funds for the relevant farmer or fisher exceeds the outstanding balance of the mutual financing funds loaned to the farmer or fisher as of December 31, 2003, the calculation shall be made on the basis of the funds for addressing delinquency. <Amended on Mar. 5, 2004; Feb. 11, 2020>
(4) The Government shall take measures necessary for the farmer or fisher provided with support under paragraph (1) to be released from guarantee obligations as a joint guarantor. <Amended on Feb. 11, 2020>
Article 8(Security for claims and contribution to the Fund) #
(1) Farmers and fishers selected as recipients of funds under Articles 3, 4, 4-2 through 4-4, 5, 5-2, and 6 shall have their credit guaranteed by the Credit Guarantee Fund for Farmers and Fishers under the Act on the Credit Guarantee for Farmers and Fishers. <Amended on Feb. 11, 2020>
(2) The Government shall appropriate the required amount in the budget and contribute it to the Fund so that farmers and fishers can receive funds under paragraph (1) without difficulty. <Amended on Feb. 11, 2020>
Article 9(Selection of beneficiaries) #
(1) In order to select beneficiaries under Articles 3, 4, 4-2 through 4-4, 5, 5-2, and 6, the National Federation and its member cooperatives shall establish the farming and fishing households debt review and business evaluation committee. In such cases, the Committee shall ensure that the representatives of farmers and fishers participate. <Amended on Mar. 5, 2004; Feb. 11, 2020>
(2) In determining standards for selecting beneficiaries under paragraph (1), where farmers or fishers or their spouses are fully capable of repaying debts with their financial assets such as deposits or where they are not engaged in farming or fishing as their main business, such farmers or fishers shall not be eligible for support under this Act. <Amended on Dec. 29, 2005; Feb. 11, 2020>
(3) The procedures for selecting beneficiaries, examination criteria, support limits, composition of the farming and fishing households debt review and business evaluation committee, and other matters necessary for provision of funds shall be determined by the Minister of Agriculture, Food and Rural Affairs in consultation with the Minister of Oceans and Fisheries. <Amended on Mar. 5, 2004; Feb. 29, 2008; Mar. 23, 2013; Feb. 11, 2020>
Article 10(Financial resources and subsidization of the difference) #
(1) The funds under Articles 3, 4, 4-2 through 4-4, 5, 5-2, and 6 through 8 shall be financed by the national budget or funds from financial institutions. <Amended on Feb. 11, 2020>
(2) The Government shall compensate for the loss sustained by financial institutions resulting from interest rate reduction, etc. under Articles 3, 4, 4-2 through 4-4, 5, 5-2, 6 and 11 (2) and (3). <Amended on Mar. 5, 2004; Feb. 11, 2020>
(3) The Government shall appropriate a monetary compensation for the difference under paragraph (2) on its expenditure budget for each fiscal year. <Amended on Feb. 11, 2020>
(4) The Government may pay financial institutions an estimated amount of a monetary compensation for the difference under paragraph (2), within its budget, before it is settled. <Amended on Feb. 11, 2020>
Article 11(Support for farmers and fishers who have paid off debts) #
(1) The Government may preferentially provide policy funds to farmers and fishers without any debt or those who have paid off debts and interest thereon by the agreed date.
(2) The Government shall refund 40/100 of the interest on the repaid amount to farmers and fishers who have repaid policy funds by the agreed date without installment payments under Article 3 or who have repaid the funds provided under Article 4 or Article 4-2 by the agreed date without installment payments under Article 4-3 or Article 4-4; provided, those who have received a refund under paragraph (3) shall be excluded. <Amended on Mar. 5, 2004; Dec. 29, 2005; May 27, 2009; Feb. 11, 2020>
(3) The Government shall refund 40/100 of the interest accruing for one year on the repaid amount to farmers and fishers who have repaid the funds, the payment of which was deferred under Article 3 and the funds provided under Articles 4, 4-2 through 4-4, 5, 5-2, and 6 at least one year earlier than the repayment date as at the time an agreement is signed (referring to the time an agreement on deferment is signed in the case of Article 3); provided, this shall not apply to funds repaid within one year from the date changes are made to such agreement under the proviso of Article 5 (2). <Added on Dec. 26, 2002; May 27, 2003; Mar. 5, 2004; Feb. 11, 2020>