ACT ON THE STRUCTURAL IMPROVEMENT OF FORESTRY COOPERATIVES

CHAPTER I GENERAL PROVISIONS

Article 1(Purpose) #

The purpose of this Act is to protect members and depositors of cooperatives established under the Forestry Cooperatives Act, to prevent the insolvency of cooperatives, by prescribing matters concerning structural improvement, such as the merger of cooperatives and the liquidation of non-performing assets, and thereby to contribute to the sound development of cooperatives.

Article 2(Definitions) #

The terms used in this Act are defined as follows: <Amended on Feb. 18, 2020>

1. "Cooperative" means a regional cooperative and specialized cooperative established pursuant to the Forestry Cooperatives Act;

2. "NFCF" means the National Federation of Forestry Cooperatives established pursuant to the Forestry Cooperatives Act;

3. "Insolvent cooperative" means a cooperative that falls under any of the following:

a. A cooperative that, as a result of an on-site inspection of its business conditions, is found to have liabilities exceeding its assets or is clearly deemed unable to continue normal operations due to the occurrence of a large-scale financial accident or non-performing claims, and that is determined by the Special Metropolitan City Mayor, Metropolitan City Mayor, Special Self-Governing City Mayor, Do Governor, or Special Self-Governing Province Governor (hereinafter referred to as the "Mayor/Do Governor") after deliberation by the Fund Management Committee under Article 18 (hereinafter referred to as the "Fund Management Committee"); in such cases, liabilities and assets shall be evaluated and calculated in accordance with the standards prescribed by Decree of the Ministry of Agriculture, Food and Rural Affairs;

b. A cooperative that is under suspension of payment of deposit and other claims under subparagraph 8, or repayment of borrowings from the State, public organizations, or the National Forestry Cooperative Federation;

c. A cooperative determined by the Mayor/Do Governor, after deliberation by the Fund Management Committee, to be unable to pay deposit and other claims or repay borrowings without external financial assistance or borrowings;

4. "Cooperative at risk of insolvency" means a cooperative determined by the Mayor/Do Governor, after deliberation by the Fund Management Committee, as highly likely to become an insolvent cooperative because its business conditions fall short of the standards prescribed by Decree of the Ministry of Agriculture, Food and Rural Affairs;

ACT ON THE STRUCTURAL IMPROVEMENT OF FORESTRY COOPERATIVES

Article 1(Purpose) #

Article 2(Definitions) #

Article 3(Responsibilities of NFCF) #

Article 4(Prompt corrective action) #

Article 5(Support measures for implementation of prompt corrective actions) #

Article 6(Application for financial support) #

Article 7(Financial support) #

Article 8(Principles of financial support) #

Article 9(Conclusion of management normalization implementation agreement) #

Article 10(Administrative disposition) #

Article 11(Effects of decision on transfer of contracts) #

Article 12(Appointment and duties of administrators) #

Article 13(Petition for Bankruptcy) #

Article 14(Liquidator or bankruptcy trustee) #

Article 15(Request for exercise of claim for damages) #

Article 16(Request for provision of data) #

Article 17(Establishment and financial resources of Fund) #

Article 18(Fund Management Committee) #

Article 19(Management agency) #

Article 20(Duties of management authority) #

Article 21(Use of the Fund) #

Article 22(Surplus fund) #

Article 23(Accounting of the Fund) #

Article 24(Guarantee of borrowings) #

Article 25(Issuance of Fund bonds) #

Article 26(Requirements for transfer of title of Fund bonds) #

Article 27(Creation of pledge on Fund bonds) #

Article 28(State guarantee for redemption) #

Article 29(Extinctive prescription) #

Article 30(Insurance relationship) #

Article 31(Payment of insurance premiums) #

Article 31-2(Setting of target size of Fund reserves) #

Article 32(Payment of insurance benefits) #

Article 33(Calculation of insurance benefits) #

Article 34(Purchase of deposit and other claims) #

Article 35(Acquisition of deposit and other claims) #

Article 36(Right of set-off by subrogation of the management authority) #

Article 37(Notification of insured events) #

Article 38(Request to purchase liability insurance) #

Article 39(Supervision) #

Article 40(Entrustment of authority) #

Article 41(Penalty provisions) #

Article 42(Penalty provisions) #

Article 43(Joint penalty provisions) #

Article 44(Administrative fine) #