Article 1(Purpose) #
The purpose of this Decree is to prescribe matters delegated by the Act on Prohibition against the Financing of Terrorism and Proliferation of Weapons of Mass Destruction and those necessary for the enforcement thereof. <Amended on Aug. 26, 2025>
Article 2(Designation of persons subject to restrictions on financial transactions) #
(1) The corporations owned or controlled under the provisions, with the exception of the subparagraphs, of Article 4(1) of the Act on Prohibition against the Financing of Terrorism and Proliferation of Weapons of Mass Destruction (hereinafter referred to as the "Act") and the former part, with the exception of the subparagraphs, of paragraph (4) of that Article shall be any of the following corporations: <Added on Aug. 26, 2025>
1. A corporation owned by an individual, corporation, or group related to the proliferation of weapons of mass destruction, etc. under the part other than each subparagraph of Article 4(1) of the Act, or by a person subject to restrictions on designated financial transactions, etc. under the first sentence of the part other than each subparagraph of Article 4(4) of the same Act (hereinafter referred to as "individual, corporation, or group, etc. related to the proliferation of weapons of mass destruction, etc." in this paragraph): A corporation in which an individual, corporation, or group, etc. related to the proliferation of weapons of mass destruction, etc. has contributed or owns at least 50/100 of the total amount of contributions, total number of issued shares, or total investment shares (including depository receipts representing shares or investment shares), alone or in combination with other individuals, corporations, or groups, etc. related to the proliferation of weapons of mass destruction, etc.;
2. A corporation controlled by an individual, corporation, or group, etc. related to the proliferation of weapons of mass destruction, etc.: Any of the following corporations:
a. Where an individual, corporation, or group, etc. related to the proliferation of weapons of mass destruction, etc., alone or by agreement or contract with a person capable of exercising voting rights on major management matters of the target corporation (hereinafter referred to as "shareholders, etc." in item b), such as a person owning shares or investment shares of the target corporation, appoints a majority of the representatives, managing partners, or officers, etc. of the target corporation;
b. Where an individual, corporation, or group, etc. related to the proliferation of weapons of mass destruction, etc., alone or by agreement or contract with the shareholders, etc. of the target corporation, is able to exercise a majority of the voting rights of the shareholders, etc. of the target corporation;
c. Where an individual, corporation, or group, etc. related to the proliferation of weapons of mass destruction, etc. is able to exercise de facto influence over the appointment or dismissal of representatives, managing partners, or executive officers, etc., or the operation of funds or properties of the target corporation in accordance with its articles of incorporation or a contract with the target corporation;
d. Other cases where an individual, corporation, or group, etc. related to the proliferation of weapons of mass destruction, etc. is able to exercise de facto influence over the major management matters of the target corporation in a manner equivalent to those under items a through c.
(2) A person subject to restrictions on financial transactions, etc. under the latter part, with the exception of the subparagraphs, of Article 4(4) of the Act (hereinafter referred to as "person subject to restrictions on financial transactions, etc.") or the other party thereto (limited to cases falling under Article 4(4)2 of the Act) shall submit an application for permission as determined and publicly notified by the Financial Services Commission to the Financial Services Commission, if they intend to perform an act falling under any of the subparagraphs of Article 4(4) of the Act (hereinafter referred to as "act subject to restrictions on financial transactions, etc."). <Amended on Sep. 5, 2012; Aug. 26, 2025>
(3) Upon receiving an application for permission for an act subject to restrictions on financial transactions, etc. under paragraph (2), the Financial Services Commission shall examine the following matters within 30 days from the date of receipt of the application, determine whether to grant permission, and notify the applicant thereof in writing without delay; provided, if a determination cannot be made within the period due to unavoidable reasons, the period may be extended by up to 30 days starting from the day following the last day of the initial period, and the applicant shall be notified of the reasons for and the duration of the extension in detail: <Amended on Aug. 26, 2025>
1. Whether the relevant act subject to restrictions on financial transactions, etc. is subject to permission;
2. The reason for and amount of the relevant act subject to restrictions on financial transactions, etc.;
3. The details of the transaction or act giving rise to the relevant act subject to restrictions on financial transactions, etc.
(4) The Financial Services Commission may grant permission for an act subject to restrictions on financial transactions, etc. if a person subject to restrictions on financial transactions, etc. falls under any of the following: <Amended on Sep. 5, 2012; Aug. 26, 2025>
1. Where financial expenditure needs to be permitted for minimum cost of living required for maintenance of basic living, such as food, clothing and shelter, for medical expenses or in view of humanitarianism;
2. Where expenditure needs to be permitted for the performance of debts to a third party who is not involved in the financing of terrorism (hereinafter referred to as "funds for terrorism") or the proliferation of weapons of mass destruction;
3. Other cases where the relevant act subject to restrictions on financial transactions, etc. needs to be permitted as it is not related to the financing of terrorism or the proliferation of weapons of mass destruction.
(5) If a person subject to restrictions on financial transactions, etc. is a person subject to sanctions by a sanctions committee established under a resolution of the United Nations Security Council (hereafter in this paragraph referred to as "Security Council resolution"), the Financial Services Commission shall follow the procedures determined by the Security Council resolution and the sanctions committee before granting permission for an act subject to restrictions on financial transactions, etc. In such cases, the time required for such procedures shall not be included in the period under paragraph (3). <Amended on Aug. 26, 2025>
(6) When granting permission under paragraphs (3) and (4), the Financial Services Commission may determine and permit the types and scope of acts subject to restrictions on financial transactions, etc. <Amended on Sep. 5, 2012; Aug. 26, 2025>
(7) If an application submitted under paragraph (2) contains errors or omissions, the Financial Services Commission may request a supplement to the relevant application. In such cases, the time required to supplement the application shall not be included in the period under paragraph (3). <Amended on Sep. 5, 2012; Aug. 26, 2025>
[Title Amended on Aug. 16, 2023]
Article 3(Special cases concerning filing objections) #
(1) Deleted. <Dec. 12, 2023>
(2) A person who intends to file an objection under Article 4-2(1) of the Act shall submit to the Financial Services Commission a document stating the following: <Amended on Sep. 5, 2012; Dec. 12, 2023; Aug. 26, 2025>
1. Matters concerning the person filing the objection according to the following classifications:
a. Where the person filing the objection is an individual: Name, resident registration number (referring to a passport number or alien registration number in the case of a foreigner), address, and contact information;
b. Where the person filing the objection is a corporation or group: Name of the corporation or group, business registration number or any number equivalent thereto, location of the office or place of business, contact information, and the representative's name, resident registration number (referring to a passport number or alien registration number in the case of a foreigner), and contact information;
2. Details of any of the following dispositions subject to objection:
a. A disposition to designate a person subject to restrictions on designated financial transactions, etc. (referring to a person designated and publicly notified in advance by the Financial Services Commission under Article 4(1) of the Act; hereinafter the same shall apply);
b. Other dispositions such as refusal to grant permission for an act subject to restrictions on financial transactions, etc. (hereinafter referred to as "refusal to grant permission, etc.");
3. Purpose of and reasons for filing the objection:
4. The date on which the designation of a person subject to restrictions on designated financial transactions, etc. was made or the date on which the refusal to grant permission, etc. was made.
(3) Deleted. <Dec. 12, 2023>
(4) When the Financial Services Commission makes a decision to accept an objection, it shall immediately correct the disposition to designate a person subject to restrictions on designated financial transactions, etc. or the refusal to grant permission, etc., and shall notify the person filing the objection of such fact without delay. <Amended on Sep. 5, 2012; Aug. 26, 2025>
(5) When the Financial Services Commission decides to reject or dismiss an objection, it shall specify the reasons for the decision, the method and procedure for appeal, and inform the applicant that he or she may file an administrative appeal or administrative lawsuit, together with the notification of the result pursuant to Article 4-2(2) of the Act. <Amended on Dec. 12, 2023>
Article 3-2(Management of personally identifiable information) #
The Financial Services Commission (including a person to whom the authority of the Financial Services Commission is delegated under Article 4(5) of the Act) may process data containing resident registration numbers, passport numbers, or alien registration numbers under subparagraph 1, 2, or 4 of Article 19 of the Enforcement Decree of the Personal Information Protection Act, if unavoidable for the purpose of performing business affairs regarding the designation of persons subject to restrictions on designated financial transactions, etc. under Article 4 of the Act, permission for acts subject to restrictions on financial transactions, etc., and raising objections, etc. <Amended on Aug. 26, 2025>
[This Article Added on Aug. 6, 2014]
Article 4(Imposition of administrative fines) #
(1) Guidelines for the imposition of an administrative fine under Article 7(1) of the Act shall be as specified in the Appendix.
(2) The Financial Services Commission may abate or aggravate an administrative fine by not more than 1/2 of the applicable amount specified in the Appendix, taking into consideration the gravity of offense, frequency of offenses, motive and consequences of offense, and other relevant facts; provided, the aggravated amount may not exceed the maximum limit of the amount applicable to the administrative fine under Article 7(1) of the Act.