Article 1(Purpose) #
The purpose of this Act is to contribute to the sound fiscal management of local governments and the development of local finance by establishing the Korea Local Finance Association and establishing and operating an efficient mutual aid system for local governments, etc.
[This Article Wholly Amended on Aug. 4, 2011]
Article 2(Legal personality and registration) #
(1) The Korea Local Finance Association (hereinafter referred to as the "Association") shall be a legal entity.
(2) The Association shall be established by registering its incorporation at the seat of its principal office.
[This Article Wholly Amended on Aug. 4, 2011]
Article 3(Office) #
(1) The principal office of the Association shall be located in Seoul Special Metropolitan City; provided, it may be located in a place other than Seoul Special Metropolitan City as prescribed by the articles of incorporation, if necessary.
(2) The Association may establish branches as prescribed by the articles of incorporation, if necessary.
[This Article Wholly Amended on Aug. 4, 2011]
Article 4(Prohibition of political activities) #
(1) The Association shall not engage in any political activity.
(2) No officers of the Association shall become members of political parties.
[This Article Wholly Amended on Aug. 4, 2011]
Article 5(Articles of incorporation) #
(1) The articles of incorporation of the Association shall include the following matters:
1. Objectives;
2. Name;
3. Matters concerning the principal office and branch offices;
4. Eligibility for membership, and procedures for joining and withdrawal;
5. Rights and obligations of members;
6. Assets and membership contributions;
7. General meeting and steering committee;
8. Organization and structure;
9. Officers and employees;
10. Projects and execution of business;
11. Budget, settlement of accounts, and accounting;
12. Other matters necessary for the operation of the Association.
(2) Any amendment to the articles of incorporation shall be subject to a resolution by the steering committee and the general meeting, and the authorization of the Minister of the Interior and Safety. <Amended on Mar. 23, 2013; Nov. 19, 2014; Jul. 26, 2017>
[This Article Wholly Amended on Aug. 4, 2011]
Article 5-2(Prohibition on use of similar names) #
No person other than the Association under this Act shall use the name "Korea Local Finance Association" or any other name similar thereto.
[This Article Added on Oct. 16, 2018]
Article 6(Qualifications for membership) #
Any of the following persons etc. shall be eligible to become a member of the Association:
1. A Special Metropolitan City, Metropolitan City, Do, Special Self-Governing Province, Special Self-Governing City, Si, Gun, and autonomous Gu;
2. A local government association established under the Local Autonomy Act, and a legal entity contributed or invested by a local government;
3. Other entities prescribed by the articles of incorporation.
[This Article Wholly Amended on Aug. 4, 2011]
Article 7(Rights and obligations of members) #
(1) A member shall have the right to participate in the projects of the Association and enjoy all rights and interests therefrom etc., as prescribed by the articles of incorporation.
(2) A member shall bear the following obligations:
1.The obligation to comply with the articles of incorporation and regulations, and the matters resolved by the general meeting;
2. An obligation to pay membership fees.
[This Article Wholly Amended on Aug. 4, 2011]
Article 8(Organization) #
(1) The Association shall have a general meeting and a steering committee as its deliberative bodies, a chairperson and directors as its executive bodies, and an auditor as its auditing body.
(2) The Association shall have necessary secretarial bodies and employees as prescribed by the articles of incorporation to handle its business.
[This Article Wholly Amended on Aug. 4, 2011]
Article 9(General meeting) #
(1) The Association shall have a general meeting composed of all members.
(2) The general meeting shall resolve on the following matters:
1. Amendments to the articles of incorporation;
2. Election of the chairperson and the auditor;
3. Basic plans for projects;
4. Deliberation on budgets;
5. Approval of the settlement of accounts;
6. Matters recognized by the steering committee as necessary to be subject to a resolution by the general meeting;
7. Other matters etc. prescribed by the articles of incorporation.
(3) General meetings shall be classified into ordinary general meetings and extraordinary general meetings.
(4) An ordinary general meeting shall be convened by the chairperson once every year, as prescribed by the articles of incorporation.
(5) An extraordinary general meeting shall be convened by the chairperson when he or she deems it necessary; provided, the chairperson shall convene an extraordinary general meeting within 14 days in any of the following cases:
1. Where at least 1/3 of the members on the register request a convocation;
2. Where the auditor finds any fraudulent or inadequate matter concerning the accounting or the execution of business of the Association and requests a convocation.
(6) Except as provided in paragraphs (1) through (5), matters necessary for the operation of the general meeting shall be prescribed by the articles of incorporation.
[This Article Wholly Amended on Aug. 4, 2011]
Article 10(Steering committee) #
(1) The steering committee shall be composed of the following members:
1. The chairperson and directors;
2. Not more than 20 members prescribed by the articles of incorporation.
(2) The steering committee shall resolve on the following matters:
1. Enactment, amendment, or repeal of regulations;
2. Draft basic plans for projects;
3. Recommendation of candidates for the chairperson and the auditor;
4. Matters to be presented to the meeting of the general meeting;
5. Matters delegated by the general meeting;
6. Other important matters related to the execution of projects.
(3) Except as provided in paragraphs (1) and (2), matters necessary for the operation of the steering committee shall be prescribed by the articles of incorporation.
[This Article Wholly Amended on Aug. 4, 2011]
Article 11(Number of officers) #
The number of officers of the Association shall be prescribed by the articles of incorporation within the scope of the following subparagraphs:
1. 1 chairperson;
2. 4 directors;
3. 2 auditors.
[This Article Wholly Amended on Mar. 21, 2017]
Article 12(Appointment and term of office of officers) #
(1) The chairperson and the auditor shall be elected at the general meeting upon recommendation of the steering committee, subject to the approval of the Minister of the Interior and Safety. <Amended on Mar. 23, 2013; Nov. 19, 2014; Jul. 26, 2017>
(2) Directors shall be appointed and dismissed by the chairperson, subject to the approval of the Minister of the Interior and Safety. <Amended on Mar. 23, 2013; Nov. 19, 2014; Jul. 26, 2017>
(3) The term of office of the chairperson, a director, and the auditor shall be 3 years, and they may be reappointed only once.
[This Article Wholly Amended on Aug. 4, 2011]
Article 13(Duties of officers) #
(1) The chairperson shall represent the Association, serve as the chairperson of the general meeting and the chairperson of the steering committee, and oversee the operations and business of the Association.
(2) Directors shall take charge of the business of the Association as prescribed by the articles of incorporation; provided, where the chairperson is unable to perform his or her duties due to any unavoidable reason, a director shall act on behalf of the chairperson as prescribed by the articles of incorporation.
(3) The auditor shall audit the accounting and execution of duties of the Association.
(4) Where the auditor finds any fraudulent or inadequate matter as a result of an audit under paragraph (3), he or she shall report it to the general meeting.
[This Article Wholly Amended on Aug. 4, 2011]
Article 14(Appointment and dismissal of employees) #
The employees of the Association shall be appointed and dismissed by the chairperson.
Article 15(Restriction on representative authority) #
Neither the chairperson nor a director shall represent the Association with respect to any matter in which his or her interests conflict with those of the Association.
[This Article Wholly Amended on Aug. 4, 2011]
Article 16(Projects) #
(1) The Association shall conduct the following projects as prescribed by the articles of incorporation to achieve its purpose: <Amended on Mar. 21, 2017>
1. Mutual aid projects for disaster recovery of public property;
2. Mutual aid projects for compensation for damage caused by public structures or the execution of business;
3. Loan projects for the maintenance of public office buildings, regional development projects, etc. of members;
4. Projects for the entrusted management of funds of members;
5. Support projects for the development of local finance of members;
6. Projects for the statistical analysis and verification related to local finance, and support for research on accounting systems;
7. Projects entrusted by the competent authority or members.
(2) The Association may conduct profit-making projects within the scope necessary to achieve its purpose.
[This Article Wholly Amended on Aug. 4, 2011]
Article 17(Enactment of regulations) #
The Association shall consult with the Minister of the Interior and Safety when it enacts or amends regulations concerning projects, organization and personnel, and remuneration of officers and employees. <Amended on Mar. 23, 2013; Nov. 19, 2014; Jul. 26, 2017>
[This Article Wholly Amended on Aug. 4, 2011]
Article 18(Finance) #
(1) The finance of the Association shall be met by membership fees and contributions paid by members and other income.
(2) The State and a local government may grant a subsidy where it is deemed necessary for the protection and fostering of the Association.
[This Article Wholly Amended on Aug. 4, 2011]
Article 19(Budget and settlement of accounts) #
(1) The fiscal year of the Association shall be from January 1 to December 31.
(2) The Association shall prepare the budget for total income and total expenditures for the following fiscal year and obtain approval from the Minister of the Interior and Safety following a resolution by the general meeting one month before the following fiscal year begins. <Amended on Mar. 23, 2013; Nov. 19, 2014; Jul. 26, 2017>
(3) The Association shall prepare a settlement report, an inventory of property, a balance sheet, and a profit and loss statement within 3 months after the end of each fiscal year, and report them to the Minister of the Interior and Safety after obtaining approval from the general meeting. <Amended on Mar. 23, 2013; Nov. 19, 2014; Jul. 26, 2017>
[This Article Wholly Amended on Aug. 4, 2011]
Article 20(Accumulation of reserves) #
The Association may calculate and accumulate reserves for each type of mutual aid project at each settlement period to appropriate for projects to be executed in the future, as prescribed by the articles of incorporation.
[This Article Wholly Amended on Aug. 4, 2011]
Article 21(Disposition of surplus) #
(1) The Association shall accumulate net profit, if any, in the settlement of accounts for each fiscal year.
(2) The accumulated funds under paragraph (1) shall not be used except in any of the following cases:
1. Compensation for losses;
2. Execution of projects under Article 16;
3. Accumulation of reserves under Article 20.
[This Article Wholly Amended on Aug. 4, 2011]
Article 21-2(Public disclosure of major management information and results of external audits) #
(1) The Association shall disclose the following matters on its website and keep them at its principal office, etc.:
1. Major management information, such as plans and status of asset management, status of profit and loss, budgets and settlement reports, and balance sheets;
2. Results of audits by the Board of Audit and Inspection and the Ministry of the Interior and Safety, and results of accounting audits by external experts;
3. Major regulations concerning asset management.
(2) The Association shall ensure that external experts participate in the process of screening matters concerning asset management, such as the allocation of assets, for the efficient and stable management of assets.
(3) Where the Association fails to perform its obligation to disclose or keep major management information etc. under paragraph (1), or omits important matters, or makes a false disclosure, the Minister of the Interior and Safety may request the correction or rectification thereof.
(4) Matters necessary for the disclosure and keeping of major management information etc. under paragraph (1) and the participation of external experts under paragraph (2) shall be prescribed by the articles of incorporation.
[This Article Added on Oct. 16, 2018]
Article 22(Processing of sensitive information and personally identifiable information) #
(1) Where it is unavoidable to perform the following business, the Association may process information on health under Article 23 of the Personal Information Protection Act and personally identifiable information under Article 24 of that Act with the consent of the person concerned:
1. Business concerning various welfare and benefit projects for members;
2. Business concerning projects for raising funds.
(2) When the Association processes data containing information under paragraph (1), it shall protect such information in accordance with the Personal Information Protection Act.
[This Article Added on Mar. 21, 2017]
[Previous Article 22 moved to Article 23 <Mar. 21, 2017>]
Article 23(Mutatis mutandis application of the Civil Act) #
Except as provided in this Act, the provisions of the Civil Act concerning incorporated associations shall apply mutatis mutandis to the Association.
[This Article Wholly Amended on Aug. 4, 2011]
[Moved from Article 21 <Mar. 21, 2017>]
Article 24(Administrative fines) #
(1) A person who uses the name "Korea Local Finance Association" or any other name similar thereto, in violation of Article 5-2, shall be punished by an administrative fine not exceeding 5 million won.
(2) Administrative fines under paragraph (1) shall be imposed and collected by the Minister of the Interior and Safety.
[This Article Added on Oct. 16, 2018]