ENFORCEMENT DECREE OF THE ACT ON REGISTRATION OF CREDIT BUSINESS AND PROTECTION OF FINANCE USERS

Article 1(Purpose) #

The purpose of this Decree is to provide for the matters delegated by the Act on Registration of Credit Business and Protection of Finance Users and the matters necessary for the enforcement thereof.

[This Article Wholly Amended on Apr. 21, 2009]

Article 2(Scope of exclusion from credit business) #

"Cases prescribed by Presidential Decree" in the proviso, with the exception of the items, of subparagraph 1 of Article 2 of the Act on Registration of Credit Business and Protection of Finance Users (hereinafter referred to as "Act") means any of the following: <Amended on Jan. 9, 2024>

1. Where an employer lends a loan to his or her employee;

2. Where a trade union established under the Trade Union and Labor Relations Adjustment Act lends a loan to its member;

3. Where the State or a local government lends a loan;

4. Where a nonprofit corporation established pursuant to the Civil Act or any other Act lends a loan within the scope of the purposes stipulated in its articles of incorporation.

5. Where a credit financial institution lends in foreign currency to a non-resident with foreign nationality or a corporation established under foreign statutes or regulations under Article 3 (1) 15 of the Foreign Exchange Transactions Act;

[This Article Wholly Amended on Apr. 21, 2009]

Article 2-2(Scope of credit financial institutions) #

"Statutes and regulations specified by Presidential Decree" in subparagraph 4 of Article 2 of the Act means the following Acts: <Amended on Aug. 25, 2020; Aug. 23, 2022>

1. The Banking Act;

2. The Industrial Bank of Korea Act;

3. The Korea Development Bank Act;

4. The Export-Import Bank of Korea Act;

5. The Bank of Korea Act;

6. The Financial Investment Services and Capital Markets Act;

7. The Mutual Savings Banks Act;

8. The Agricultural Cooperatives Act;

9. The Fisheries Cooperatives Act;

10. The Credit Unions Act;

11. The Forestry Cooperatives Act;

12. The Community Credit Cooperatives Act;

13. The Insurance Business Act;

14. The Specialized Credit Finance Business Act;

15. The Asset-Backed Securitization Act;

16. The Postal Savings and Insurance Act;

17. The Venture Investment Promotion Act;

17-2. Act on Online Investment-Linked Financial Business and Protection of Users;

18. Other Acts specified and publicly notified by the Financial Services Commission.

[This Article Added on Jul. 6, 2016]

[Previous Article 2-2 moved to Article 2-4 <Jul. 6, 2016>]

Article 2-3(Scope of affiliated persons) #

(1) "Persons who have any of the special relationships specified by Presidential Decree" in subparagraph 5 (a) of Article 2 of the Act means the following persons (hereinafter referred to as "affiliated persons"): <Amended on Dec. 28, 2021>

1. If the principal is an individual: Persons falling under the following items:

(a) The spouse of the principal (including a person in a de facto marital relationship; the same shall apply hereinafter);

(b) A paternal relative in the sixth or any closer degree of kinship or the spouse of a paternal relative in the fourth or any closer degree of kinship;

(d) A maternal relative in the third or any closer degree of kinship and the spouse and children of such relative;

(e) A paternal relative of the spouse in the second or any closer degree of kinship and the spouse of such relative;

(f) A lineal ascendant from the biological family of an adoptee;

(g) A child adopted to another family, the spouse of such child, and lineal descendants of the adopting family of the adopted child;

(h) The biological mother of a child born out of wedlock;

(i) A person who maintains a livelihood with money or any other asset of the principal or a person who makes a living together with the principal;

(j) A corporation or organization, the principal of which, alone or together with the persons who have any of the relationships referred to in items (a) through (i), has invested at least 30/100 of the capital or over which the principal, alone or together with the persons who have any of the relationships referred to in items (a) through (i), exercises de facto control with regard to important matters related to the management of the corporation or organization (hereinafter referred to as "corporation or any similar entity"), such as the appointment and dismissal of executive officers, and executive officers of such corporation or any similar entity;

(k) A corporation or any similar entity, the principal of which, alone or together with the persons who have any of the relationships referred to in items (a) through (j), has invested at least 30/100 of the capital or over which the principal, alone or together with the persons who have any of the relationships referred to in items (a) through (j), exercises de facto control with regard to important matters related to the management of the corporation or organization, such as the appointment and dismissal of executives, and executives of such corporation or any similar entity;

Article 2-4(Loan brokerage business using loan brokerage system) #

"Method prescribed by Presidential Decree through electronic devices, systems, etc." in Article 3 (2) 6 of the Act means a method of disclosing or providing the following information to a credit service provider or loan broker (hereinafter referred to as "credit service provider, etc.") or a person who intends to engage in credit business by establishing and operating bulletin board under Article 2 (1) 9 of the Act on Promotion of Information and Communications Network Utilization and Information Protection, etc. for the purpose of brokerage of loans.

1. Personal information of a person who intends to use credit business;

2. Contact information such as telephone number of the credit service provider or loan broker;

[This Article Added on Jul. 21, 2025]

Article 2-5(Scope of investors) #

"Standards prescribed by Presidential Decree" in Article 3 (3) 2 of the Act means 1/100 of the total number of outstanding shares or the total amount of contribution. <Amended on Jul. 6, 2016>

[This Article Added on Apr. 21, 2009]

[Moved from Article 2-4; previous Article 2-5 moved to Article 2-6 <Aug. 29, 2017>]

Article 2-6(Procedures for registration) #

(1) Any person who intends to register a credit business or loan brokerage business (hereinafter referred to as "credit business, etc.") pursuant to Article 3 (1) or (2) of the Act shall file an application for the registration of the credit business, etc. in the form prescribed and publicly notified by the Financial Services Commission, with the Mayor of the Special Metropolitan City, a Metropolitan City, or Special Self-Governing City or the Governor of a Do or a Special Self-Governing Province (hereinafter referred to as "Mayor/Do Governor") or with the Financial Services Commission, along with a document proving the location of a business office prescribed in Article 3 (3) 4 of the Act (limited to a certified copy of a register or a copy of a lease agreement or any similar agreement), a copy of a certificate of completion of the educational course prescribed in Article 2-8 (5) (hereinafter referred to as "copy of a certificate of completion of the educational course"), and other documents specified and publicly notified by the Financial Services Commission; provided, a person who falls under the proviso of Article 3-4 (1) of the Act and completes the educational course shall submit a copy of a certificate of completion of the educational course within one week from the day on which the person completes the educational course. <Amended on Apr. 20, 2010; Apr. 1, 2014; Jul. 6, 2016; Aug. 29, 2017; Nov. 13, 2018>

(2) The copy of a certificate of completion of the educational course submitted in accordance with paragraph (1) shall be the copy of a certificate of completion of the educational course (which is not limited to those issued by the Mayor/Do Governor or the Financial Services Commission, with whom the applicant intends to file an application (hereinafter referred to as "Mayor/Do Governor, etc.")) that was completed not more than six months before the date when an application for registration is filed. <Amended on Jul. 6, 2016>

(3) "The criteria prescribed by Presidential Decree" in Article 3 (2) 5 of the Act means the following criteria that shall be fully met: <Added on Jul. 6, 2016; Nov. 13, 2018>

1. The value of assets as at the end of the immediately preceding business year shall be at least 10 billion won;

2. The balance of receivables under loan agreements (hereinafter referred to as "loans receivable"), out of the assets prescribed in subparagraph 1, shall be at least 5 billion won.

(4) "The documents specified by Presidential Decree" in the main clause of Article 3 (3) of the Act, with the exception of its subparagraphs, means the following documents: <Added on Jul. 6, 2016>

Article 2-7(Procedures for renewal of registration) #

(1) Any person who intends to apply for renewal pursuant to Article 3-2 (1) of the Act shall file an application for renewal of registration of a credit business, etc. in the form prescribed and publicly notified by the Financial Services Commission with the Mayor/Do Governor, etc., with whom the business is registered at the time, along with a document certifying the location of its business office prescribed in Article 3 (3) 4 of the Act (limited to the certified copy of a register or a copy of the relevant lease agreement or any similar agreement), a copy of a certificate of completion of the educational course, and other documents specified and publicly notified by the Financial Services Commission. <Amended on Apr. 20, 2010; Jul. 6, 2016>

(2) The proviso of Article 2-6 (1) and Article 2-6 (2) shall apply mutatis mutandis to cases falling under paragraph (1). <Amended on Aug. 29, 2017>

[This Article Added on Apr. 21, 2009]

[Moved from Article 2-6; previous Article 2-7 moved to Article 2-8 <Aug. 29, 2017>]

Article 2-8(Training for credit business) #

(1) "An extenuating circumstance specified by Presidential Decree" in the proviso of Article 3-4 (1) of the Act means the following:

1. A natural disaster;

2. An unavoidable event, such as the trainee's illness, accident, or business travel abroad;

3. Where it is impracticable to attend an education course due to the education institution's circumstances in relation to human resources or physical facilities.

(2) "The period specified by Presidential Decree" in the proviso of Article 3-4 (1) of the Act means one month. <Amended on Jul. 6, 2016>

(3) The training regarding regulations on credit business, etc. under Article 3-4 (1) of the Act shall be conducted by a Mayor/Do Governor, etc., targeting the executive officers and employees of credit service providers, etc. as classified in the following subparagraphs: <Amended on Nov. 13, 2018>

1. In cases of intending to register a credit business, etc. pursuant to Article 3 (1) of the Act or to renew registration of a credit business, etc. pursuant to Article 3-2 (1) of the Act: Persons as classified in the following items:

(a) A branch office of a credit service provider, etc., which is a corporation: The employee who exercises general management over the affairs of such branch office (hereinafter referred to as "general manager");

(b) A person other than such branch referred to in item (a): The representative and the general manager;

2. In cases of intending to register a credit business, etc. pursuant to Article 3 (2) of the Act or renew registration of a credit business, etc. pursuant to Article 3-2 (1) of the Act: Persons as classified in the following items:

(a) A branch office of a credit service provider, etc., which is a corporation: The general manager of such branch;

(b) A person other than that referred to in item (a): The following persons:

(i) The representative and the general manager;

(ii) Executive officers and employees equivalent to not less than 10/100 of the total number of executive officers and employees (including the representative and the employee in charge of general management over affairs).

(4) The contents of the training under paragraph (3) shall be as follows: <Added on Nov. 13, 2018>

Article 2-9(Equity capital) #

(1) "Amount prescribed by Presidential Decree" in Article 3-5 (1) 1 (a) of the Act means 30 million won. <Amended on Jul. 21, 2025>

(2) "The amount prescribed by Presidential Decree" in Article 3-5 (1) 1 (b) of the Act means the amount as classified in the following subparagraphs: <Added on Jul. 21, 2025>

1. Where the registration applicant is a corporation: 300 million won;

2. Where the registration applicant is not a corporation: 100 million won. (1) "Amount prescribed by Presidential Decree" in Article 3-5 (2) 2 (a) of the Act means 100 million won. <Added on Jul. 21, 2025>

(4) "Amount prescribed by Presidential Decree" in Article 3-5 (2) 2 (b) of the Act means 30 million won. <Added on Jul. 21, 2025>

(5) "The amount specified by Presidential Decree" in Article 3-5 (2) 2(c) of the Act means the amount as classified in the following subparagraphs: <Amended on Nov. 13, 2018; Jul. 21, 2025>

1. Where an applicant for registration intends to make the registration pursuant to Article 3 (2) 2 of the Act: 500 million won;

2. In other cases: 300 million won.

(6) The method of calculating the equity capital (referring to the value of net assets, if the applicant is not a corporation) prescribed in Article 3-5 (1) 1 or (2) 2 of the Act shall be prescribed and publicly notified by the Financial Services Commission. <Amended on Jul. 21, 2025>

[This Article Added on Jul. 6, 2016]

[Moved from Article 2-8; previous Article 2-9 moved to Article 2-10 <Aug. 29, 2017>]

Article 2-10(Permanent place of business) #

"Permanent place of business, human resources, computer equipment, etc. prescribed by Presidential Decree" in Article 3-5 (1) 3 of the Act means the following:

1. A place where the right to use a building listed in the building ledger for at least 6 months has been secured by owning, leasing or renting a building (excluding detached houses under Article 2 (2) 1 of the Building Act, multi-family housing under Article 2 (2) 1, and lodging facilities under Article 2 (2) 15) entered means of loan for use, etc.;

2. The following computer equipment and systems (limited to a person who intends to register loan brokerage business under Article 3 (2) 6 of the Act);

(a) Information and communications equipment such as computers (including equipment, communications means, and office devices necessary for electronic business processing);

(b) Equipment for keeping materials related to loan brokerage business and preventing loss thereof;

(d) A system for the safe processing and storage of computer data such as personal information, and for responding to electronic security breaches.

3. At least one professional who operates, maintains, and manages computer equipment and systems referred to in subparagraph 2 (limited to a person who intend to register loan brokerage business under Article 3 (2) 6 of the Act);

4. A method of managing computer equipment and systems under subparagraph 2 (limited to a person who intends to register loan brokerage business under Article 3 (2) 6 of the Act);

5. Other instruments prescribed and publicly notified by the Financial Services Commission.

[This Article Wholly Amended on Jul. 21, 2025]

Article 2-11(Types of business subject to prohibition against concurrent holding of office) #

(1) "The types of business specified by Presidential Decree" in Article 3-5 (2) 5 of the Act means the following types of business: <Amended on Aug. 29, 2017; Jun. 25, 2019>

1. Any of the following types of business among the types of telecommunications work business prescribed in the Telecommunications Business Act:

(a) Facilities-based telecommunications business prescribed in Article 5 (2) of the Telecommunications Business Act;

(b) Deleted; <Jun. 25, 2019>

(c) The types of business specified and publicly notified by the Financial Services Commission as those that are likely to cause conflict of interest or to undermine rights and interests of users of credit business or credit service practices, among the types of value-added telecommunications business prescribed in Article 5 (3) of the Telecommunications Business Act;

2. Gambling industry prescribed in the National Gambling Control Commission Act;

3. Karaoke bar business or entertainment bar business prescribed in the Enforcement Decree of the Food Sanitation Act;

4. Multi-level marketing business prescribed in the Act on Door-to-Door Sales, Etc.;

5. Other types of business specified and publicly notified by the Financial Services Commission as those that are likely to cause a conflict of interest or to severely undermine rights and interests of users of loan business or the order in credit service.

(2) "Persons specified by Presidential Decree" in Article 3-5 (2) 6 of the Act means the following persons; provided, the persons specified and publicly notified by the Financial Services Commission, based on the nature of a corporation in cases falling under subparagraph 1, shall be excluded herefrom:

1. The largest shareholder of a corporation that is the largest shareholder (including a person who has de facto control over the corporation, if the person who has de facto control over the corporation is not the largest shareholder of the corporation);

2. The representative of a corporation that is the largest shareholder.

(3) "Have a good credit in the society as specified by Presidential Decree" in Article 3-5 (2) 6 and 7 of the Act means cases where the following requirements are fully met; provided, cases where the degree of a violation referred to in any of the following subparagraphs is minor shall be deemed cases where a person has a good credit in the society: <Amended on Aug. 29, 2017; Nov. 13, 2018; Aug. 4, 2020; Dec. 28, 2021>

Article 2-12(Finance-related statutes and regulations) #

"The finance-related statutes and regulations specified by Presidential Decree" in Article 4 (1) 8 of the Act means the following Acts: <Amended on Aug. 31, 2016; Oct. 30, 2018; Jun. 25, 2019; Mar. 31, 2020; Aug. 25, 2020; Mar. 23, 2021; Feb.17, 2022; Aug. 23, 2022; Dec. 5, 2023; Jul. 21, 2025>

1. Deleted; <Jun. 25, 2019>

2. The Certified Public Accountant Act;

3. The Act on the Guarantee of Employees' Retirement Benefits;

4. The Act on the Establishment of Korea Asset Management Corporation;

5. The Act on Structural Improvement of the Financial Industry;

5-2. The Act on the Protection of Financial Consumers;

6. The Act on Real Name Financial Transactions and Confidentiality;

7. The Act on the Establishment of Financial Services Commission;

8. The Financial Holding Companies Act;

9. The Korea Technology Finance Corporation Act;

10. The Agricultural Cooperatives Act;

11. The Secured Bond Trust Act;

12. The Framework Act on the Promotion of Cultural Industries;

13. The Venture Investment Promotion Act;

14. The Insurance Business Act;

15. The Act on Appraisal and Certified Appraisers;

16. The Real Estate Investment Company Act;

17. The Act on Public-Private Partnership in Infrastructure;

18. The Industrial Development Act;

19. The Mutual Savings Banks Act;

20. The Ship Investment Company Act;

21. The Community Credit Cooperatives Act;

22. Act on Special Measures for Strengthening the Competitiveness of Materials, Components, and Equipment Industries;

23. The Fisheries Cooperatives Act;

24. The Credit Guarantee Fund Act;

25. The Credit Information Use and Protection Act;

Article 3(Modification of registration) #

(1) Any credit service provider, etc. who intends to apply for modification of registration pursuant to the main clause of Article 5 (1) of the Act shall file an application for modification of registration of credit business, etc. in the form prescribed and publicly notified by the Financial Services Commission, along with documents that certify the relevant change, with the Mayor/Do Governor, etc., with whom the business is registered at the time. <Amended on Jul. 6, 2016>

(2) "Where a change occurs in regard to any of the minor matters specified by Presidential Decree" in the proviso of Article 5 (1) of the Act means any of the following cases: <Amended on Sep. 3, 2014; Jul. 6, 2016; Nov. 13, 2018>

1. Where the address of the representative, an executive officer, an investor, or the general manager has been changed;

2. Where the title, name, or shareholding ratio of an investor whose total equity investment ratio is not more than 5/100 has been changed;

3. Where a credit service provider, etc. has at least two places of business and the name or location of any of such places of business has been changed (excluding the relevant place of business, the name or location of which has been changed);

4. Where a report under Article 12 (9) of the Act which reflects a changed matter concerning equity capital (referring to the value of net assets, if the applicant is not a corporation) is submitted.

(3) A credit service provider, etc. who intends to permanently close his or her business under Article 5 (2) of the Act shall file a report on permanent closure of credit business, etc. in the form prescribed and publicly notified by the Financial Services Commission (including an electronic document defined in subparagraph 1 of Article 2 of the Framework Act on Electronic Documents and Transactions) with the Mayor/Do Governor, etc., with whom the business is registered at the time, within 15 days from the date of closure of business. <Amended on Aug. 31, 2012; Jul. 6, 2016>

(4) Except as otherwise provided for in paragraphs (1) through (3), matters necessary for the modification of registration and the reporting of permanent closure of business defined in Article 5 of the Act shall be prescribed and publicly notified by the Financial Services Commission. <Added on Jul. 6, 2016>

[This Article Wholly Amended on Apr. 21, 2009]

Article 3-2(Trade names) #

(1) "Standards prescribed by Presidential Decree" in Article 5-2 (3) of the Act means cases where the ratio of operating income accruing from credit business, etc. to gross operating income is less than 50/100.

(2) Where a credit service provider, etc. does not use the term "credit business" or "loan brokerage" in his or her trade name because he or she falls under paragraph (1) conducts any business activity, such as advertisement, in relation to credit business, etc., he or she shall put words "credit business" or "loan brokerage" conspicuously together with his or her trade name.

(3) The ratio of the operating income under paragraph (1) for credit business, etc. shall be calculated on the basis of the interest income stated on the profit and loss statement as at the end of the immediately preceding business year, while the ratio for any business other than credit business, etc. shall be calculated on the basis of the sales stated on the same profit and loss statement. In such cases, gains on management of financial products, such as investment in securities and deposits in financial institutions, shall be excluded from the calculation of the ratio of operating income.

[This Article Added on Apr. 21, 2009]

Article 3-3(Scope of duties of general manager) #

The scope of duties of a general manager under Article 5-3 (2) of the Act shall be as follows:

1. The general manager of a credit service provider:

(a) Conclusion and execution of loan agreements;

(b) Collection of loans;

(d) Solicitation of customers through advertisements, etc.;

(e) Other business activities conducted on behalf of the credit service provider for customers’ convenience;

2. The general manager of a loan brokerage company:

(a) Brokerage of loan agreements;

(b) Conclusion and execution of brokerage agreements with credit service providers;

(d) Solicitation of customers through advertisements, etc.;

(e) Other business activities conducted on behalf of the loan brokerage company for customers’ convenience.

[This Article Added on Jun. 11, 2013]

Article 4(Mandatory descriptions of loan agreement) #

(1) "Matters prescribed by Presidential Decree" in Article 6 (1) 12 and (3) 7 of the Act means the following: <Amended on Apr. 20, 2010; Nov. 30, 2011>

1. Registration number of credit business, etc.;

2. Deleted; <Apr. 20, 2010>

3. Terms and conditions concerning acceleration clause, if any;

4. Terms and conditions concerning the repayment order of the principal and interests of a loan, if any;

5. Fees and deadline for issuance of certificates related to debts or guaranteed debts.

(2) "Documents related to an agreement as prescribed by Presidential Decree" in Article 6 (5) and the former part of paragraph (6) of that Article means the following:

1. Loan agreement ledger;

2. Records of principal, interests, and incidental expenses disbursed to and received from a debtor by date;

3. Documents submitted by a counter-party (including a guarantor) in connection with the conclusion of a loan agreement or a guarantee agreement related thereto, including documents related to security (a written request for return of documents if the documents have been returned upon the written request for return thereof from the debtor after repayment of his or her debts).

[This Article Wholly Amended on Apr. 21, 2009]

Article 4-2(Handwriting of material facts) #

(1) "Matters prescribed by Presidential Decree" in Article 6-2 (1) 4 and (2) 4 of the Act means an overdue interest rate. <Amended on Jul. 6, 2016>

(2) "Means prescribed by Presidential Decree, such as voice recording" in Article 6-2 (3) 2 of the Act means those that fully meet the following requirements: <Added on Jul. 6, 2016>

1. The opposite contractual party shall be asked about his or her identity by using wire or wireless communication and the matters specified in Article 6-2 (1) of the Act and shall be given an explanation thereabout, and the answers and confirmation of the opposite contractual party thereon shall be recorded with a voice recorder;

2. The opposite contractual party shall be given an opportunity to confirm the contents of voice records prescribed in subparagraph 1 by the means that the opposite contractual party chooses, among the following means. In such cases, the credit service provider shall inform the opposite contractual party before signing a loan agreement that the credit service provider may request a written confirmation to the opposite contractual party:

(a) Telephone;

(b) Internet website;

[This Article Added on Apr. 21, 2009]

Article 4-3(Prohibition of excessive lending) #

(1) "Evidentiary documents prescribed by Presidential Decree" in the main clause of Article 7 (1) of the Act means the followings: <Amended on Jun. 28, 2013; Oct. 30, 2018; Nov. 13, 2018; Aug. 4, 2020>

1. If a counter-party is a person:

(a) A certificate of income, such as a withholding receipt for earned income under Article 143 of the Income Tax Act, a withholding receipt for business income under Article 144 of that Act, a certificate of income, a copy of a bankbook for salary deposit, and a certificate of pension;

(b) A certificate of balance of debts as a document under the former part of Article 6 (6) of the Act [limited to the cases of failing to submit the results of credit information inquiry either through a personal credit rating agency, a sole proprietor credit rating agency, or corporate credit rating agency (excluding corporate credit rating agencies engaged only in corporate information inquiry business) under the Credit Information Use and Protection Act or through a centralized credit information collection agency under Article 25 (2) 1 of the aforesaid Act (hereinafter referred to as "credit information inquiry")];

(c) Documents that verify legal relationship concerning property, such as a registration certificate of real estate rights, real estate lease agreement (limited to a secured loan);

(d) Result of credit information inquiry (only limited to cases where a credit service provider registered pursuant to Article 3 (2) of the Act intends to enter into a loan agreement);

(e) Other documents making it possible to verify the status of income, property and debts;

2. If a counter-party is a corporation:

(a) An audit report (limited to a corporation subject to the external audit under Article 4 of the Act on External Audit of Stock Companies);

(b) A business registration certificate under Article 11 (5) of the Enforcement Decree of the Value-Added Tax Act, a tax certificate for each item of local tax, and a certificate of payment of local taxes;

(2) "Amount prescribed by Presidential Decree" in the proviso of Article 7 (1) of the Act means any of the amounts referred to in the following subparagraphs. In such cases, the amount shall be calculated by adding the balance of loans already extended to a counter-party with whom a credit service provider intends to reach a new loan agreement to the amount of the loan on which the credit service provider intends to reach a new loan agreement: <Amended on Apr. 20, 2010; Nov. 30, 2011; Nov. 13, 2018>

Article 4-4(Limits on total assets) #

(1) "The multiple specified by Presidential Decree" prescribed in Article 7-3 (1) of the Act means ten times.

(2) The limit on total assets under Article 7-3 (2) of the Act shall be calculated on the basis of assets on the balance sheet under Article 30 (2) of the Commercial Act. <Amended on Aug. 29, 2017; Jul. 21, 2025>

[This Article Added on Jul. 6, 2016]

Article 5(Limitations on interest rates) #

(1) Deleted. <Aug. 29, 2017>

(2) "Rate prescribed by Presidential Decree" in Article 8 (1) of the Act means 20/100 per annum at a simple interest rate. <Amended on Aug. 29, 2017; Nov. 7, 2017; Apr. 6, 2021>

(3) When the rate referred to in paragraph (2) is applied on a monthly or daily basis, 20/100 per annum shall be converted at a simple interest rate. <Amended on Aug. 29, 2017; Nov. 7, 2017; Apr. 6, 2021>

(4) "Matters prescribed by Presidential Decree" in the proviso of Article 8 (2) of the Act means the following expenses: <Amended on Aug. 4, 2020>

1. Expenses incurred in creating a security right;

2. Expenses incurred in making credit inquiry (applicable only where credit inquiry on a transaction counterparty is made to a personal credit rating agency, sole proprietor credit rating agency, or corporate credit inquiry agency under the Credit Information Use and Protection Act);

(5) "Rate specified by Presidential Decree" in Article 8 (3) of the Act means the interest rates on overdue loans determined by the Financial Services Commission in consideration of funding costs, overdue account management costs, overdue amount, overdue period, and characteristics of loan agreements. In such cases, such rate shall not exceed 20/100 per annum. <Added on May 21, 2019; Apr. 6, 2021>

[This Article Wholly Amended on Apr. 1, 2014]

Article 5-2(Loan interest rate at which entire loan contract becomes null) #

(1) "Rate prescribed by Presidential Decree" in Article 8-2 (1) 4 of the Act means 60/100.

(2) Where the rate under paragraph (1) is applied on a monthly or daily basis, 60/100 per annum shall be converted into a simple interest rate.

[This Article Added on Jul. 21, 2025]

Article 6(Posting notice of terms and conditions of loan) #

(1) "Important information prescribed by Presidential Decree" in Article 9 (1) of the Act means the following information:

1. Registration number of credit business;

2. Deleted; <Apr. 20, 2010>

3. Terms and conditions concerning incidental expenses related to a loan agreement.

(2) "Matters prescribed by Presidential Decree" in Article 9 (2) 6 of the Act means the following: <Amended on Nov. 30, 2011; Apr. 1, 2014; Jul. 6, 2016; Oct. 17, 2017; Aug. 4, 2020>

1. The address of the place of business and the telephone numbers used in labels or advertisements (referring to the labels and advertisements defined in the Act on Fair Labeling and Advertising; hereinafter referred to as "advertisements") which shall be registered pursuant to Article 3 (3) 6 of the Act, (referring to the address of the head office and the telephone numbers used in advertisements, if a credit service provider has places of business in areas within the jurisdiction of at least two local governments, such as the Special Metropolitan City, Metropolitan Cities, a Special Self-Governing City, Dos, and a Special Self-Governing Province (hereinafter referred to as "Cities/Dos"));

2. The name of the City/Do or the Financial Services Commission (hereinafter referred to as "City/Do, etc."), with which the business is registered, and the telephone number of the office of the City/Do, etc. from which information about registration information can be obtained;

3. Warning phrases indicating the risk of excessive borrowings and the possible decline in credit rating or personal credit scores in connection with a loan agreement, as prescribed in subparagraph 2 (a) of Appendix 1.

(3) "Matters prescribed by Presidential Decree" in Article 9 (3) 6 of the Act means the following facts: <Amended on Nov. 30, 2011; Jul. 6, 2016; Oct. 17, 2017; Aug. 4, 2020>

1. The address of the place of business and the telephone numbers used in advertisements registered pursuant to Article 3 (3) 6 of the Act (referring to the address of the head office and telephone number used for advertisements, if a loan broker has places of business in at least two Cities/Dos);

2. The name of the City/Do, etc. with which the loan brokerage business is registered at the time and the telephone number of the office of the City/Do, etc. from which information about registration can be obtained;

Article 6-2(Advertisements of credit service providers) #

"The manner prescribed by Presidential Decree" in Article 9 (4) of the Act means any of the following: <Amended on Nov. 30, 2011; Jul. 6, 2016>

1. Letters of the trade name of each credit service provider shall be larger than letters of a trademark and shall be legible;

2. The size of letters indicating the registration number, telephone number, interest rates for loans, expenses incidental to loan agreements, phrases referred to in Article 6 (2) 3 and (3) 3 and 4 shall be equal to or larger than the size of the trade name and shall be easily distinguishable from other words in each advertisement;

3. To comply with guidelines for placing advertisements of credit service providers, etc., as prescribed in Appendix 1.

[This Article Added on Apr. 21, 2009]

Article 6-3(False or exaggerated advertisements of credit service providers) #

"Advertisement prescribed by Presidential Decree" in Article 9-3 (1) 3 of the Act means any of the following advertisements:

1. An advertisement that contains misleading expressions by which a credit service provider might be mistaken for a financial institution permitted, authorized, or registered under any other Act;

2. An advertisement that contains misleading expressions by which a product is mistaken for a petty-loan product for the low-income class (referring to a product specified and publicly notified by the Financial Services Commission as a product designed to support the financially-disadvantaged class, such as the low-income class).

[This Article Wholly Amended on Jun. 11, 2013]

Article 6-4(Prohibition of transfer of claims to illegal financial business entity) #

In Article 9-4 (3) of the Act, "those specified by Presidential Decree, including the credit service providers, credit financial institutions, etc." means the following persons: <Amended on Feb. 17, 2022; Jan. 9, 2024>

1. Credit service providers registered under Article 3 (2) 2 of the Act;

2. Credit financial institutions;

3. The Korea Deposit Insurance Corporation and financial resolution companies prescribed in the Depositor Protection Act;

4. The Korea Asset Management Corporation under the Act on the Establishment of Korea Asset Management Corporation;

5. The Korea Housing Finance Corporation prescribed in the Korea Housing Finance Corporation Act;

6. A person who is established pursuant to foreign statues and regulations and engages in a business equivalent to that of a credit financial institution in a foreign country and falls under the cases prescribed and publicly notified by the Financial Services Commission;

7. Other persons specified by the Financial Services Commission among the persons similar to those specified in subparagraphs 1 through 6.

[This Article Added on Jul. 6, 2016]

[Title Amended on Jul. 21, 2025]

[Previous Article 6-4 moved to Article 6-5 <Jul. 6, 2016>]

Article 6-5(Suspension of use of telephone number used for illegal lending) #

(1) "A Mayor/Do Governor, etc. or a person specified by Presidential Decree" in Article 9-6 (1) of the Act means any of the following persons: <Amended on Jun. 13, 2023>

1. A Mayor/Do Governor;

2. The Prosecutor General;

3. The Commissioner of the Korean National Police Agency;

4. The Governor of the Financial Supervisory Service (referring to the Governor of the Financial Supervisory Service established under the Act on the Establishment of Financial Services Commission; the same shall apply hereinafter).

5. The Chairperson of the Korea Inclusive Finance Agency established under Article 3 of the Microfinance Support Act.

(2) If a user for whom telecommunications services have been discontinued upon a request filed under Article 9-6 (1) or (2) of the Act intends to raise an objection prescribed in Article 9-6 (3) of the Act, he or she shall submit a written statement of the following matters to the authority that requested the discontinuance of telecommunications services prescribed in Article 9-6 (1) or (2) of the Act (hereafter referred to as "authority requesting the discontinuance of services" in this Article) by no later than 30 days from the date when telecommunications services are discontinued:

1. The title or name, address, and contact information of the petitioner;

2. Grounds for an objection;

3. The date when telecommunications services are discontinued.

(3) Upon receipt of a petition for objection prescribed in paragraph (2), the authority requesting the discontinuance of services shall make a decision on the petition within 15 days and shall notify the petitioner of such decision in writing; provided, the period may be extended by up to 15 days, if it is impracticable to make a decision within the period due to any inevitable ground, and the petitioner shall be notified of a ground for the extension and the extended period.

(4) If a document submitted under paragraph (2) has any defect or if it is necessary to verify any additional facts, the authority requesting the discontinuance of services may request the petitioner to supplement the document. The period required for such supplementation, in such cases, shall not be included in the period specified in the main clause of paragraph (3).

(5) When the authority requesting the discontinuance of services concludes that a petition filed for objection prescribed in Article 9-6 (3) of the Act has a reasonable ground, he or she shall request the Minister of Science and ICT to revoke the discontinuance of telecommunications services, without delay. <Amended on Jul. 26, 2017>

Article 6-6(Standards for protection of users of credit business) #

(1) "The value of assets specified by Presidential Decree" in Article 9-7 (1) of the Act means any of the amounts referred to in the following subparagraphs: <Amended on Nov. 13, 2018>

1. A credit service provider who registers its business pursuant to Article 3 (2) 2 of the Act and intends to operate a business of collecting purchased loan claims: One billion won as at the end of the immediately preceding business year;

2. Other credit service providers, etc.: 50 billion won as at the end of the immediately preceding business year.

(2) The standards for protection prescribed in Article 9-7 (1) of the Act (hereinafter referred to as "standards for protection") shall include the following matters: <Amended on Nov. 13, 2018>

1. Matters concerning task allocation and organizational structure;

2. Matters concerning the procedures that executive officers and employees shall follow in performing their duties;

3. Matters concerning the procedures and methods for the inspection conducted to make sure whether executive officers and employees observe the standards for protection and the treatment of executive officers and employees who violated the standards for protection;

4. Matters concerning the procedures for the establishment or amendment of the standards for protection;

5. Matters concerning the procedures for the appointment and dismissal of the protection watch officers prescribed in Article 9-7 (2) of the Act (hereinafter referred to as "protection watch officer");

6. Matters concerning the procedures or guidelines on the collection, management, transaction, etc. of claims for preventing wrongful conduct in collecting loans receivable;

7. Matters concerning the management, etc. of extinctive prescription of loan claims for protecting debtors;

8. Other matters determined and publicly notified by the Financial Services Commission, which are necessary for protecting the users of credits service.

(3) When a credit service provider, etc. intends to establish or amend standards for protection, it shall obtain a resolution thereon from the board of directors; provided, the same shall not apply where there is no board of directors.

(4) The Financial Services Commission may recommend that a credit service provider, etc. whose violation of any statute or regulation is found as a result of an inspection conducted under Article 12 of the Act to amend standards for protection to prevent recurrence of violations of such statute or regulation.

Article 6-7(Restrictions on transactions with major shareholders) #

(1) "The transactions specified by Presidential Decree" in Article 10 (1) of the Act means the following transactions:

1. A transaction of offering an asset as security for a major shareholder (including affiliated persons of such shareholder; the same shall apply hereafter in this Article);

2. A transaction of endorsing a commercial paper for a major shareholder (excluding an endorsement with no effect as security under Article 15 (1) of the Bills of Exchange and Promissory Notes Act);

3. A transaction of promising performance of investment to a major shareholder;

4. Lending an asset with an economic value, such as real estate and securities;

5. Purchasing securities as a means for lending a loan, guaranteeing payment, or providing financial support;

6. Any of the following transactions conducted for the purpose of circumventing the restriction on transactions under any of subparagraphs 1 through 5:

(a) A transaction conducted by cross-dealing under an agreement, collusion, or any similar arrangement with a third party;

(b) A transaction conducted by using a transaction of over-the-counter derivatives, a trust contract, a linked transaction, or any similar transaction;

7. A transaction that will actually result in a transaction equivalent to any of the transactions referred to in subparagraphs 1 through 6, although the credit service provider has not conducted such transaction by himself or herself.

(2) Notwithstanding paragraph (1), the Financial Services Commission may exclude either of the following transaction from the scope of credit extension:

1. A transaction that is anticipated to incur a slight loss to a credit service provider;

2. A transaction that is found reasonable to exclude it from the scope of credit extension in light of actual conditions of the relevant transaction, such as the impact on the financial market.

(3) "The amount specified by Presidential Decree" in Article 10 (2) of the Act means that the amount of a single transaction according to the standards prescribed by the Financial Services Commission is the smaller of the amount equivalent to 10/10,000 of equity capital or one billion won.

(4) "The period specified by Presidential Decree" in Article 10 (3) of the Act means one year.

Article 6-8(Restriction on brokerage commission) #

(1) "A small corporation specified by Presidential Decree" in Article 11-2 (3) of the Act means a corporation that falls under a small enterprise prescribed in Article 2 (2) of the Framework Act on Small and Medium Enterprises.

(2) "The amount calculated by the rate prescribed by Presidential Decree" in Article 11-2 (3) of the Act means the amount specified for each loan amount bracket in the following table: <Amended on Nov. 13, 2018; Aug. 17, 2021>

┌──────┬────────────────────────────────────┐

│ Loan amount │ Brokerage fee amount │

├──────┼────────────────────────────────────┤

│ 5 million won or less │ 3/100 of the loan amount │

├──────┼────────────────────────────────────┤

│ 5 million won or more │ 150,000 won + 2.25/100 of the amount exceeding 5 million won among the loan amount │

││ Amount │

└──────┴────────────────────────────────────┘

(3) The guidelines for informing precautions in using credit business under Article 11-2 (7) of the Act shall contain the following precautions and guidance plans:. <Added on Jul. 21, 2025>

1.The following matters concerning credit service providers and loan contracts:

(a) Matters concerning the list and contact information of credit service providers entrusted with loan brokerage and the method of verifying whether credit business is registered;

(b) Matters concerning procedures for concluding loan agreements, restrictions on interest rates, effect of loan agreements, etc. under Articles 6, 6-2, 8 and 8-2 of the Act;

(c) Matters concerning the suspension of the use of telephone numbers used for illegal lending, etc., the protection of personal information of credit business users, and the effect of contracts with illegal financial business entities under Articles 9-6, 9-9 and 11 of the Act;

(d) Matters concerning the liability of a credit service provider or loan broker to compensate the counterparty under Article 11-4 of the Act;

(e) Other matters determined and publicly notified by the Financial Services Commission, which are necessary for protecting the users of credits service.

Article 6-9(Deposit of guarantee money for performance of liability to compensate damage) #

(1) Pursuant to Article 11-4 (2) of the Act, a credit service provider, etc. shall deposit at least the amount specified in either of the following subparagraphs as guarantee money with the association of credit business and loan brokerage business prescribed in Article 18-2 (1) of the Act (hereinafter referred to as "Association") or subscribe to an insurance or mutual aid plan for the relevant amount as minimum coverage and shall maintain the plan continuously during the period of registration:

1. If the business is registered with a Mayor/Do Governor: 10 million won;

2. If the business is registered with the Financial Services Commission: 50 million won.

(2) If a Mayor/Do Governor, etc. deems it necessary for protecting users of credit service, considering the volume of transactions of credit service providers, etc., violations of a statute or regulation, etc., the Mayor/Do Governor, etc. may issue an order to increase the amount specified in either subparagraph of paragraph (1).

(3) A credit service provider, etc. shall maintain the guarantee money deposited or the insurance or mutual aid plan subscribed to under paragraph (1) or (2) until before the closing of the transaction under a loan agreement for three years from the day on which any of the following events occurs; provided,, if a lawsuit filed in relation to the liability to compensate for damage caused by wrongful conduct of a credit service provider, etc. is pending, the credit service provider, etc. shall maintain the guarantee money deposited or the insurance or mutual aid plan subscribed to until the payment of the guarantee money or the payment of claims against the insurance or mutual aid plan is completed according to a final judgment on the relevant lawsuit:

1. Where the effective period of registration prescribed in Article 3 (6) of the Act has expired but the registration has not been renewed;

2. Where a report on the closure of business is filed under Article 5 (2) of the Act;

3. Where registration has been revoked under Article 13 (2) of the Act.

(4) Matters necessary for the procedures for depositing guarantee money, etc. under paragraphs (1) through (3) shall be prescribed and publicly notified by the Financial Services Commission.

[This Article Added on Jul. 6, 2016]

Article 7(Credit business subject to inspection by Governor of Fnancial Supervisory Service) #

"Cases prescribed by Presidential Decree" in Article 12 (3) of the Act means the following cases: <Amended on Apr. 20, 2010; Jul. 6, 2016>

1. Deleted; <Jul. 6, 2016>

2. Where the monthly average balance of loans lent by a credit service provider, etc. as at the end of each month exceeds the amount prescribed by the Financial Services Commission;

3. Where business activities of a credit service provider, etc. violate any statute or regulation;

4. Where it is suspected that a person who is a major shareholder of at least two registered business entities intends to evade an inspection conducted by the Governor of the Financial Supervisory Service under Article 12 (2) of the Act by spin-off or any other means;

5. Where business activities of a credit service provider, etc. are highly likely to place a counter-party (including a guarantor, if a guarantee agreement is concluded in connection with a loan agreement) in a disadvantageous position, and an institution subject to inspection by the Financial Supervisory Service under Article 38 of the Act on the Establishment of Financial Services Commission (hereinafter referred to as "financial institution") is involved in such activities.

[This Article Wholly Amended on Apr. 21, 2009]

Article 7-2(Submission of report by credit service provider or loan broker) #

(1) Pursuant to Article 12 (9) of the Act, each credit service provider, etc. shall prepare reports in the form prescribed and publicly notified by the Financial Services Commission as on June 30 and December 31 respectively and submit each of the reports to the competent Mayor/Do Governor, etc. by the end of the following month of the base date. <Amended on Jul. 6, 2016>

(2) "Matters prescribed by Presidential Decree" in Article 12 (9) 1 (c) and 2 (c) of the Act means those concerning the general status of the place of business, the current status of credit business, the current status of loan brokerage business, and the current status of borrowings described in the report under paragraph (1).

[This Article Added on Apr. 21, 2009]

[Moved from Article 7-3 <Jul. 21, 2025>]

Article 7-3(Method of reporting violations) #

A person who intends to file a report under Article 12-2 (1) of the Act shall submit a report on violation of the Act by an illegal financial business entity, etc. in attached Form 2 to the Governor of the Financial Supervisory Service; provided, in cases of urgency or unavoidable circumstances, such report may be made by telephone or verbally.

[This Article Added on Jul. 21, 2025]

<Previous Article 7-3 moved to Article 7-2 <Jul. 21, 2025>]

Article 7-4(Guidelines for suspension of business and cancellation of registration) #

(1) "Standards prescribed by Presidential Decree" in the main clause of Article 13 (1) of the Act, with the exception of its subparagraphs, means the guidelines prescribed in Appendix 2. <Amended on Nov. 30, 2011>

(2) "Cases prescribed by Presidential Decree, such as temporary failure to meet the requirements" in the proviso to Article 13 (2) 2 of the Act means where any of the following requirements (in the case of a loan provider other than a loan broker registered pursuant to Article 3 (2) 6 of the Act, only applicable to the requirements for permanent place of business, from the requirements under subpargraph 1 or 3) are not met (excluding cases where the person fails to meet the requirements under subparagraph 2 due to reasons such as the resignation of an executive or employee or where he or she fails to meet the requirement under subparagraph 3 by intention or gross negligence of a loan provider or broker) and he or she becomes to meet the requirements under that paragraph again within six months: <Added on Jul. 21, 2025>

1. Requirements for equity capital under Article 3-5 (1) 1 or (2) 2 of the Act;

2. Requirements for human resources under Article 3-5 (1) 3 of the Act;

3. Requirements under Article 3-5 (1) 3 of the Act (excluding requirements for human resources).

(3) "Number of times specified by Presidential Decree" in Article 13 (2) 5 of the Act means the frequency prescribed in Appendix 2. <Amended on Nov. 30, 2011; Jul. 21, 2025>

[This Article Added on Apr. 21, 2009]

Article 8(Details and methods of public announcement) #

Pursuant to Article 13 (2) 6 of the Act, a Mayor/Do Governor, etc. shall prepare a public announcement stating that the registration may be revoked if a credit service provider, etc. fails to notify its exact location in order to verify the location; shall publish the notice in the Official Gazette, the official bulletin of the City/Do, or a daily newspaper; and shall post the same on the website, etc. <Amended on Jul. 6, 2016; Nov. 24, 2020>

[This Article Wholly Amended on Apr. 21, 2009]

Article 8-2(Standards for imposing penalty surcharges) #

The standards for imposing penalty surcharges prescribed in Article 14-2 (1) of the Act shall be as prescribed in Appendix 2-2.

[This Article Wholly Amended on Oct. 17, 2017]

Article 8-3(Procedures for imposing penalty surcharges) #

(1) When the Financial Services Commission imposes a penalty surcharge under Article 14-2 (1) of the Act, it shall give a written notice for the payment of the penalty surcharge, clearly stating the type of the relevant violation and the amount of the penalty surcharge.

(2) Upon receipt of the notice under paragraph (1), a person shall pay the penalty surcharge to the receiving agency designated by the Financial Services Commission within 60 days from the date on which the person receives the notice.

(3) Except as otherwise provided for in paragraphs (1) and (2), matters necessary for the procedures for imposing penalty surcharges shall be prescribed and publicly notified by the Financial Services Commission.

[This Article Added on Jul. 6, 2016]

Article 8-4(Additional charges) #

"The additional charge prescribed by Presidential Decree" in the former part of Article 14-2 (2) of the Act means an amount calculated by applying 6/100 per annum to the past due penalty surcharge. <Amended on Oct. 17, 2017>

[This Article Added on Jul. 6, 2016]

Article 8-5(Extensions of payment deadline for penalty surcharges and payment by installment) #

Where the Financial Services Commission extends the payment deadline of a penalty surcharge or allows a person obligated to pay a penalty surcharge to pay penalty surcharges in installments under Article 14-4 of the Act pursuant to the proviso to Article 29 the Framework Act on Public Administration, the extension of the payment deadline shall not exceed one year from the day following the payment deadline. The interval between each installment payment period shall not exceed six months, and the number of installment payments shall not exceed three times.

[This Article Wholly Amended on Dec. 12, 2023]

Article 8-6(Interest on additional payment on refund) #

The Financial Services Commission shall pay an additional payment on refund by applying the interest rate determined and publicly notified by the Financial Services Commission under Article 14-5 (1) of the Act, considering the interest rate for a time deposit maturing in one year in bank.

[This Article Added on Jul. 6, 2016]

Article 9(Limitations on interest rates of specialized credit financial institutions) #

(1) "Rate specified by Presidential Decree" in Article 15 (1) of the Act means 20/100 per annum. <Amended on Apr. 1, 2014; Aug. 29, 2017; Nov. 7, 2017; Apr. 6, 2021>

(2) If the rate prescribed in paragraph (1) is applied on a monthly or daily basis, 20/100 per annum at simple rate shall be converted at a simple interest rate. <Amended on Apr. 1, 2014; Aug. 29, 2017; Nov. 7, 2017; Apr. 6, 2021>

(3) "Matters specified by Presidential Decree" in the proviso of Article 8 (2) of the Act, which are applicable mutatis mutandis pursuant to Article 15 (2) of the Act, means the following expenses: <Added on Sep. 3, 2014; Aug. 4, 2020>

1. Expenses incurred in creating a security right;

3. Expenses incurred as a consequence of early repayment of a loan lent under a loan agreement with a maturity of at least one year, which shall not exceed 1/100 of the amount of early repayment.

(4) "Rate set by Presidential Decree" in Article 15 (3) of the Act means the interest rates for overdue loans determined by the Financial Services Commission by reflecting characteristics, etc. of each type of financial services and loan agreements. In such cases, each rate shall not exceed 20/100 per annum. <Amended on Nov. 13, 2018; Apr. 6, 2021>

[This Article Wholly Amended on Apr. 21, 2009]

Article 9-2(Methods and procedure for conducting surveys on current status) #

(1) In conducting a survey on the status of business operations of credit service providers, etc. pursuant to Article 16 (1) of the Act, the Mayor/Do Governor shall conduct such survey on the matters specified in Article 12 (9) of the Act as of June 30 and December 31 of each year, respectively.

(2) When the Mayor/Do Governor submits a report on findings from a survey on the status under paragraph (1) to the Minister of the Interior and Safety and the Financial Services Commission pursuant to Article 16 (1) of the Act, he or she may submit such report in an electronic form through the electronic information system designated by the Governor of the Financial Supervisory Service.

(3) The Minister of the Interior and Safety and the Financial Services Commission shall prepare a report on the status of credit service providers, etc. and findings from surveys on their business operations as of each base date, June 30 and December 31 every year, and shall publish such report in the Official Gazette or their websites within six months from the base date under Article 16 (3) of the Act.

[This Article Wholly Amended on Oct. 17, 2017]

Article 9-3(Details of and procedures for disclosing facts of administrative measures or corrective action orders) #

(1) When the Mayor/Do Governor, etc. discloses an administrative measure taken or an order issued to take corrective measures under Article 16-2 (1) of the Act, he or she shall make sure that the following matters are included therein: <Amended on Jul. 6, 2016>

1. Title whereby the publication may be recognized as the disclosure of the fact of the administrative measure or corrective action order;

2. Trade name, location and name (in cases of a corporation, referring to the name of its representative);

3. Registration number of credit business, etc. (in cases of a credit financial institution, referring to its business registration number);

4. Violation;

5. Details of the administrative measure or corrective action order with regard to a violation;

6. Date of the administrative measure, date of the corrective action order and the period thereof.

(2) The disclosure prescribed in paragraph (1) shall be made by publishing an administrative measure taken or an order issued to take corrective measures in the website of the City/Do, etc. immediately after the Mayor/Do Governor, etc. takes such administrative measure or issues such order. <Amended on Jul. 6, 2016>

(3) Where an administrative measure taken or an order to take corrective measures under paragraph (1) 5 is revoked, the Mayor/Do Governor, etc. shall disclose such revocation by publishing it in the website of the City/Do, etc. at least for the period during which such administrative measure or such order to take corrective measures has been published therein under paragraph (2). <Amended on Jul. 6, 2016>

[This Article Added on Apr. 1, 2014]

Article 10(Registration fees) #

(1) Any person who intends to register a credit business, etc. shall pay 100,000 won as registration fee for each place of business in accordance with Article 17 (1) of the Act; provided, a different amount of the fee may be prescribed by municipal ordinance of each City/Do within the maximum of 100,000 won.

(2) "Inspection fees prescribed by Presidential Decree" in Article 17 (2) of the Act means the amount determined by the Financial Services Commission within the maximum of 1/1,000 of the yearly average balance of loans as on the inspection date; provided, a different amount of the fee may be prescribed by municipal ordinance of each City/Do within the maximum of 1/1,000 of the yearly average balance of loans.

[This Article Wholly Amended on Apr. 21, 2009]

Article 11(Organization and management of Committee for Conciliation of Disputes) #

(1) The Committee for Conciliation of Disputes prescribed in Article 18 (1) of the Act shall be composed of five members appointed or commissioned by the competent Mayor/Do Governor from among the following persons: <Amended on Feb. 29, 2012; Jul. 6, 2016>

1. A person who has at least three years' experience at a financial institution;

2. A lawyer or certified public accountant;

3. A person who has at least three years' experience at a consumer organization;

4. A public official who has at least three years' experience in the field of finance, credit business, or consumer protection;

5. A person who majored in finance or law and has at least three years' experience as an assistant professor or higher at a college or university.

(2) The chairperson shall be elected by and among the members, and the term of office for the chairperson and members shall be one year but may be renewed consecutively.

(3) In any of the following cases, the Mayor/Do Governor may remove or dismiss a committee member under any subparagraph of paragraph (1) from office: <Added on Jul. 6, 2016>

1. If a committee member is unable to perform his or her duties due to mental or physical disability;

2. If it is found that a committee member is involved in an irregularity in relation to his or her duties;

3. If it is found that a committee member is incompetent on the ground of a failure in duty or indecent conduct, or on any other ground;

4. If a committee member voluntarily confesses that he or she is unable to perform his or her duties.

(4) The Committee for Conciliation of Disputes may adopt a proposal for conciliation of a dispute by an affirmative vote of 2/3 of incumbent members and may recommend the parties to the dispute to accept the proposal for conciliation of the dispute. <Amended on Jul. 6, 2016>

(5) Except as otherwise provided for in paragraphs (1) through (4), further details necessary for the efficient management of the Committee for Conciliation of Disputes shall be prescribed by the Committee for Conciliation of Disputes. <Amended on Jul. 6, 2016>

[This Article Wholly Amended on Apr. 21, 2009]

Article 11-2(Credit business and credit brokerage business Association) #

(1) Pursuant to Article 18-2 (4) of the Act, the Association shall formulate articles of incorporation and complete the registration of establishment with the seat of its main office within two weeks from the day on which it obtains the authorization therefor from the Financial Services Commission. <Amended on Jul. 6, 2016>

(2) The registration of establishment under paragraph (1) shall include the following matters:

1. Purposes;

2. Name;

3. Locations of the principal place of business and branch associations;

4. Names and addresses of executive officers;

5. Methods of public announcement.

(3) The application for registration of establishment under paragraph (1) shall be accompanied by the following documents:

1. Articles of incorporation;

2. A copy of the letter of authorization for articles of incorporation.

(4) "Affairs prescribed by Presidential Decree" in Article 18-3 (1) 4 of the Act means the following business affairs: <Amended on Nov. 30, 2011; Jul. 6, 2016; Nov. 13, 2018>

1. Educating executive officers and employees of credit service providers, etc.;

2. Conducting surveys and research for the development of credit business, etc.;

3. Autonomously reviewing advertisements of credit service providers, etc.;

4. Autonomously monitoring any violation of statutes or regulations by credit service providers, etc. and persons who actually run credit business, etc. without filing for registration of credit business, etc. as required by Article 3 of the Act;

5. Accepting deposits of guarantee money and providing mutual aid service for indemnifying credit service providers, etc. from liability for damage prescribed in Article 11-4 of the Act;

6. Self-regulatory affairs such as standardization and guidance on methods of providing service to maintain the sound business order of credit service providers, etc.;

7. Projects for common interests of credit service providers, etc.;

8. Other affairs necessary to achieve the purposes of the Association.

Article 11-3(Entrustment of business affairs) #

(1) Pursuant to Article 18-7 (1) and (2) of the Act, a Mayor/Do Governor, etc. may entrust the Association with the education about obligations of credit businesses, etc. prescribed in Article 3-4 of the Act. <Amended on Jul. 6, 2016>

(2) Pursuant to Article 18-7 (2) of the Act, the Financial Services Commission shall entrust the following affairs to the Governor of the Financial Supervisory Service: <Added on Jul. 6, 2016; Oct. 17, 2017; Nov. 13, 2018; Jul. 21, 2025>

1. Affairs relating to the procedures for the registration of credit business, etc., the renewal of such registration, the return of registration certificates, the receipt of reports on the loss of a registration certificate, etc. prescribed in Articles 3, 3-2, and 3-3 of the Act;

2. Affairs relating to the examination of requirements for the registration of credit business, etc. prescribed in Article 3-5 of the Act;

3. Affairs relating to the examination of qualifications of executive officers and general managers of credit service providers, etc. prescribed in Article 4 (1) and (2) of the Act;

4. Affairs relating to the amended registration of credit business, etc. and the receipt of reports on closure of business prescribed in Article 5 of the Act;

5. Receipt of reports on credit extension to credit service providers who belong to a business group subject to limitations on cross shareholding under Article 10 (2) of the Act;

6. Receipt of detailed plans prescribed in Article 10 (5) of the Act;

7. An order issued to a credit service provider who is suspected to have violated the limit on credit extension prescribed in Article 10 (8) of the Act and the major shareholders of such credit service provider to submit documents;

7-2. Affairs concerning review of rectification orders under Article 11-2 (5) of the Act;

8. An order to submit a report or documents about business operations of a credit service provider, etc. and property related to such business operations prescribed in Article 12 (1) of the Act and other necessary orders;

8-2. Affairs concerning review of rectification orders under Article 12 (7) of the Act;

9. Receipt of reports prescribed in Article 12 (9) of the Act;

10. Measures to be taken under Article 13 (6) 1 and 3 of the Act;

Article 11-4(Measures to be taken against Association) #

(1) "Measures specified by Presidential Decree" in Article 18-10 (1) 5 of the Act means the following measures:

1. Requesting or recommending to improve management or operating methods;

2. Claiming compensation;

3. Filing a criminal charge or report concerning a violation with an investigative agency, if the Association violates the Act;

4. Reporting a violation to a relevant agency or investigative agency, if the Association violates any other Act;

5. Other measures that may be taken by the Financial Services Commission pursuant to the Act, this Decree, and other relevant statutes and regulations.

(2) "Measures specified by Presidential Decree" in Article 18-10 (2) 6 and (3) 7 respectively means the measures specified in paragraph (1) 3 through 5.

[This Article Added on Aug. 29, 2017]

[Previous Article 11-4 moved to Article 11-5 <Aug. 29, 2017>]

Article 11-5(Processing of personally identifiable information) #

(1) If it is inevitable for performing the following affairs, a Mayor/Do Governor, etc. (including persons entrusted with affairs of a Mayor/Do Governor, etc. prescribed in Article 11-3) may process data containing a resident registration number, a passport number, a foreigner registration number referred to in subparagraph 1, 2 or 4 of Article 19 of the Enforcement Decree of the Personal Information Protection Act (hereafter referred to as "resident registration number, etc." in this Article): <Amended on Jul. 6, 2016>

1. Affairs concerning registration pursuant to Article 3 of the Act;

2. Affairs concerning renewal of registration pursuant to Article 3-2 of the Act;

3. Affairs concerning surrender, etc. of registration certificates pursuant to Article 3-3 of the Act;

4. Affairs concerning training for credit business, etc. pursuant to Article 3-4 of the Act;

5. Affairs concerning the examination of requirements for qualification of the representative, executive officer or the general manager of a credit service provider, etc. prescribed in Article 4 of the Act;

6. Affairs concerning modification of registration and reporting on the closure of business prescribed in Article 5 of the Act;

7. Affairs concerning standards for protection and protection watch officers prescribed in Article 9-7 of the Act;

8. Affairs concerning reporting on transactions with major shareholders of a credit service provider who belongs to a business group subject to limitations on cross shareholding prescribed in Article 10 of the Act, approval for the extension of the period of credit extension, orders to submit documents, etc.;

9. Affairs concerning the deposit of guarantee money for indemnifying the liability to compensate for damage prescribed in Article 11-4 (2) of the Act;

10. Affairs concerning inspections, suspension of business, revocation of registration, follow-up measures, etc. pursuant to Articles 12 and 13 of the Act;

11. Affairs concerning the imposition and collection of penalty surcharges prescribed in Article 14-2 of the Act;

12. Affairs concerning surveys, etc. on actual status of credit service providers pursuant to Article 16 of the Act;

13. Affairs concerning settlement of disputes pursuant to Article 18 of the Act.

Article 11-6(Re-examination of regulations) #

The Financial Services Commission shall review the appropriateness of the following matters biennially (referring to a date before January 1 of every second anniversary), counting from the following relevant base dates; and shall take measures, such as making improvements:

1. Restrictions on brokerage commission under Article 6-8 (1) and (2): January 1, 2025;

2. Requirements for equity capital under Article 2-9 (2) 1: January 1, 2026.

[This Article Wholly Amended on Jul. 21, 2025]

Article 12(Guidelines for imposition of administrative fines) #

The guidelines for imposition of administrative fines are as prescribed in Appendix 3. <Amended on Nov. 30, 2011>

[This Article Wholly Amended on Apr. 21, 2009]