MICROFINANCE SUPPORT ACT

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MICROFINANCE SUPPORT ACT — 법갈피

Article 9(Composition of operating committee) #

(1) The operating committee shall be comprised of 11 members, including one chairperson. <Added on Jun. 8, 2021>

(2) The following persons shall serve as the members of the operating committee: <Amended on Jun. 8, 2021; Oct. 1, 2025>

1. Director of the Agency;

2. Vice Director of the Agency;

3. One person each appointed respectively by the Minister of Economy and Finance and the Chairman of the Financial Services Commission, from among public officials in general service belonging to their affiliated Senior Executive Service;

4. A person appointed by the Director of the Financial Supervisory Service, from among his or her affiliated Vice Directors;

5. Six persons commissioned by the Chairperson of the Financial Services Commission from among the following persons with extensive knowledge of and experience in consumer protection, taking into consideration gender; and in such cases, 2 persons shall be commissioned upon recommendation respectively by the heads of 2 financial associations prescribed by Presidential Decree, taking into consideration the scale of contributions, etc. under Article 47(2) and (3):

a. A person with at least five years’ work experience in a consumer organization registered under Article 29 of the Framework Act on Consumers;

b. A person who has majored in the field related to consumers and has at least five years’ work experience in a position of at least equivalent to an associate professor at a university, college, or research institute;

c. A person qualified as a lawyer or certified public accountant with at least five years’ work experience in the business related to the relevant qualifications;

d. A person with at least five years’ work experience in a non-profit, non-governmental organization registered under Article 4 of the Assistance for Non-Profit, Non-Governmental Organizations Act;

e. Other persons with the qualifications prescribed by Presidential Decree and with abundant knowledge and experience concerning finance, economy, and society.

(3) The term of office of each member referred to in paragraph (2)5 shall be two years. The same shall also apply to members newly commissioned due to a vacancy. <Amended on Jun. 8, 2021>

(4) Members of the operating committee shall be non-standing and unpaid; provided, the actual expenses incurred in conducting duties may be paid, as prescribed by the articles of incorporation. <Amended on Jun. 8, 2021>

Article 20(Establishment of Dormant Deposit Management Committee) #

(1) The Agency shall establish the Dormant Deposit Management Committee (hereinafter referred to as the "Management Committee") to deliberate on and resolve matters concerning the management and operation of accounts for management of dormant deposits, etc. (hereinafter referred to as "dormant accounts") established pursuant to Article 39. <Amended on Nov. 26, 2019; Jun. 8, 2021>

(2) The Management Committee shall deliberate on and resolve the following matters. In such cases, where the following matters fall under the matters deliberated and resolved on by the operating committee under Article 8(2), the management committee shall first undergo the deliberation and resolution by the operating committee: <Amended on Jun. 8, 2021>

1. Formulation and modification of basic policies and business plans for management and operation of dormant accounts;

2. Formation, change, and settlement of budgets related to the management and operation of dormant accounts;

3. Preparation and amendment of articles of incorporation and business methods concerning the management and operation of dormant accounts;

4. Other matters concerning the management and operation of dormant accounts, which are prescribed by the articles of incorporation.

(3) The Management Committee shall be comprised of 13 members (hereinafter referred to as "management committee members"), including one chairperson. <Amended on Jun. 8, 2021>

(4) The following persons shall become members of the management committee, and the Chairperson shall be elected from among the members of the management committee under subparagraph 9: <Amended on Jun. 8, 2021; Oct. 1, 2025>

1. Director of the Agency;

2. One Vice Minister of Economy and Finance appointed by the Minister of Economy and Finance;

3. One Vice Minister of Health and Welfare designated by the Minister of Health and Welfare;

4. Vice Minister of Employment and Labor;

5. Vice Chairperson of Financial Services Commission;

6. President of Bank Association;

7. President of the association composed of life insurance companies, among insurance associations established pursuant to Article 175 of the Insurance Business Act;

8. President of the association composed of non-life insurance companies, among insurance associations established pursuant to Article 175 of the Insurance Business Act;

9. 2 persons commissioned by the Financial Services Commission, from among persons with abundant knowledge and experience in economy and society; 2 persons commissioned by the Financial Services Commission upon the recommendation of the Minister of Health and Welfare; and a person commissioned by the Chairperson of the Financial Services Commission upon the recommendation of the Minister of Employment and Labor.

(5) The term of office of a management committee member under paragraph (4)9 shall be 3 years, and they may be reappointed only once. <Amended on Jun. 8, 2021>

(6) Management Members shall be non-standing and unpaid; provided, the actual expenses necessary for performing duties may be paid, as prescribed by the articles of incorporation.

Article 24(Duties of agency) #

(1) The Agency shall conduct the following duties: <Amended on Nov. 26, 2019; Jun.8, 2021>

1. Programs for supporting the financial life of ordinary people;

2. Arrangement of financial products, etc. to support the financial life of ordinary people;

3. Investigation, research, and foreign exchange and cooperation concerning the financial life of ordinary people;

4. Credit guarantees and fund loans to ordinary people;

5. Contribution and investment pursuant to the performance of duties of the Agency;

6. Contribution to and investment in financial companies on the condition of support for microfinance;

7. Contribution to and investment in financial companies with excellent results of support for microfinance;

8. Funding for the Small-Loan Financial Support Center determined by President Decree, operated by the local government;

9. Support and supervision for a business execution organization;

10. Deleted; <Jun. 8, 2021>

11. Operating office of the Microfinance Committee under Article 29;

12. Management and operation of dormant deposits, etc. contributed to dormant accounts by financial companies or the Korea Securities Depository (hereinafter referred to as "financial companies, etc.") pursuant to Article 40;

13. Payment of the amount in substitution for the dormant deposit for the original dormant deposit holder under Article 45;

14. Business commissioned by the Credit Counseling and Recovery Service under Article 79(3);

15. Establishment and operation of the total information system for microfinance;

16. Other duties prescribed by Presidential Decree, necessary for supporting the financial life of ordinary people.

(2) The Agency may collect fees and expenses concerning the execution of duties under paragraph (1)1, 2, 4, and 14, as determined by the operating committee.

(3) The Agency may exempt or reduce fees concerning the execution of duties under paragraph (2) on the person prescribed by Presidential Decree, such as persons who have provided distinguished service to the State under the Act on the Honorable Treatment of and Support for Persons, etc. of Distinguished Service to the State, and recipients under the National Basic Living Security Act.

(4) The Agency shall prepare an operating manual necessary to perform duties under paragraph (1), and finalize such manual after resolution by the operating committee. The same shall also apply where it intends to amend the manual.

Article 47(Formation of supplementary accounts) #

(1) The supplementary account shall be financed from the following funds: <Amended on June 8, 2021>

1. Contributions by the Government;

2. Contributions by financial companies;

3. Revenues from guarantee fees;

4. Revenue accruing from the exercise of a right to indemnity;

5. Profits from the operation of the supplementary account;

6. Borrowings from the funds managed and operated by the Government;

7. Funds raised by bonds issued at the expense of the supplementary account;

8. Other funds prescribed by Presidential Decree for the formation of the supplementary account.

(2) Any of the following persons of financial companies shall contribute to the Agency the amount prescribed by Presidential Decree within the limit not exceeding 1/1,000 per annum on the loan; provided, the person falling under subparagraph 1 shall contribute to the Agency an amount based on the rate prescribed by Presidential Decree within the limit of not less than 6/10,000 and not exceeding 1/1,000 per annum with respect to the loan. <Amended on Jun. 8, 2021, on Sep. 20, 2021>

1. Banks: a bank under the Banking Act, the Korea Development Bank under the Korea Development Bank Act, the Industrial Bank of Korea under the Industrial Bank of Korea Act, the Nonghyup Bank under the Agricultural Cooperatives Act, and the Suhyup Bank under the Fisheries Cooperatives Act;

2. Insurance companies: insurance companies under the insurance business act, Nonghyup Life Insurance and Nonghyup Property & Casualty Insurance under the Agricultural Cooperatives Act;

3. Mutual financial cooperatives, etc.: a cooperative under the agricultural cooperatives act, a cooperative under the fisheries cooperatives act, a credit union under the Credit Unions Act, a cooperative under the Forestry Cooperatives Act, and a community credit cooperative under the Community Credit Cooperatives Act;

4. A mutual savings bank under the Mutual Savings Banks Act;

5. A specialized credit finance company under the Specialized Credit Finance Business Act.

(3) A financial company that is a creditor of an individual who has received a credit guarantee for a supplementary account, from among the financial companies referred to in each subparagraph of paragraph (2), shall contribute to the Agency the amount based on the rate prescribed by Presidential Decree not exceeding 50/1000 per annum with respect to the credit guarantee amount. In such cases, the rate prescribed by Presidential Decree may be determined differently in consideration of the insolvency rate, etc. of loans to individuals. <Added on Jun. 8, 2021>

(4) The scope and method of calculating the loan amount and credit guarantee amount under paragraphs (2) and (3), the method and timing of contribution, and other matters necessary for the contribution shall be prescribed by Presidential Decree. <Amended on June 8, 2021>

[Title Amended on Jun. 8, 2021]

[The amended provisions of Article 47(2) and (3) of the Act (No. 18227) (Jun. 8, 2021) shall be effective until October 8, 2026 under Article 2 of the Addenda of that Act.]

Article 61(Composition of the Committee) #

(1) The Committee shall be comprised of up to 15 members including a Chairperson.

(2) The Chairperson shall be appointed by the President upon the recommendation by the Chairman of the Financial Services Commission, from among persons with abundant knowledge and experience regarding debt settlement.

(3) The following persons shall serve as the members of the Committee: <Amended on Jun. 8, 2021>

1. President of Bank Association;

2. President of the association composed of life insurance companies, among insurance associations established pursuant to Article 175 of the Insurance Business Act;

3. President of the association composed of non-life insurance companies, among insurance associations established pursuant to Article 175 of the Insurance Business Act;

4. President of Specialized Credit Financial Business Association incorporated pursuant to Article 62 of the Specialized Credit Finance Business Act;

5. President of Korea Federation of Savings Banks incorporated pursuant to Article 25 of the Mutual Savings Banks Act;

6. Mutual finance chief executive officer of the National Agricultural Cooperative Federation incorporated pursuant to the Agricultural Cooperatives Act;

7. Vice Director of the Agency;

8. A person commissioned by the Chairperson of the Financial Services Commission, from among any of the following persons with abundant knowledge and experience regarding consumer protection and assistance in the debt settlement for an individual debtor:

a. A person with at least five years’ work experience in a consumer organization registered under Article 29 of the Framework Act on Consumers;

c. A person qualified as a lawyer or certified public accountant with at least five years’ work experience in the business related to the relevant qualifications;

d. A person with at least five years’ work experience in a non-profit, non-governmental organization registered under Article 4 of the Assistance for Non-Profit, Non-Governmental Organizations Act;

e. Other persons with the qualifications prescribed by Presidential Decree and with abundant knowledge and experience concerning finance, economy, and society.

(4) The Committee shall be comprised of members able to represent the interests of creditors and debtors in a fair and balanced manner.

(5) The Committee shall have an auditor to audit matters concerning its business and accounting.

(6) The auditor shall be appointed or dismissed by the Financial Services Commission.

(7) The term of office of a Chairperson, members under paragraph (3)8, and an auditor shall be three years, and may be reappointed once. The same shall also apply to those newly appointed due to a vacancy.

(8) Members and the auditor except for the Chairperson shall be non-standing and unpaid; provided, actual expenses incurred in performing duties may be paid, as prescribed by the articles of incorporation.

(9) Members of the Committee shall be deemed directors of the Committee.

Article 75(Agreement on credit recovery support) #

(1) To effectively and rapidly facilitate debt settlement for an individual debtor, the Committee may determine matters necessary for its standard, procedure, method, etc. in the agreement on credit recovery support (hereinafter referred to as "Agreement").

(2) The Committee may enter into an Agreement with any of the following persons: <Amended on Mar. 18, 2025>

1. The Agency;

2. The financial company;

3. A person designated by Presidential Decree as corresponding to a financial company;

3-2. The Korea Student Aid Foundation under the Act on the Establishment of Korea Student Aid Foundation;

3-3. An electric sales business entity defined in subparagraph 10 of Article 2 of the Telecommunications Business Act;

3-4. A "mobile communications business entity" as defined in subparagraph 19 of Article 2 of the Telecommunications Business Act (including a telecommunications business operator who resells telecommunications services received from a facilities-based telecommunications business operator under Article 38 (1) of that Act, as prescribed by Presidential Decree);

3-5. The provider of telecommunications billing services under Article 2 (1) 11 of the Act on Promotion of Information and Communications Network Utilization and Information Protection, as prescribed by Presidential Decree;

4. A person determined by the Committee as obligated to conclude an Agreement and who holds bonds over an individual debtor.

(3) Except in extenuating circumstances prescribed by Presidential Decree, such as in cases of not possessing bonds over an individual debtor, a person who falls under paragraph (2) 2, 3, or 3-2 through 3-5 shall conclude an Agreement with the Committee. <Amended on Mar. 18, 2025>

(4) In cases prescribed by Presidential Decree, such as in cases of not holding bonds over an individual debtor, the credit financial company, etc. may cancel the relevant Agreement. <Amended on Mar. 18, 2025>

(5) To alter any content of an Agreement, the Committee shall undergo the resolution of the Committee.

Article 81(Requests for provision of data) #

(1) With the consent of the parties to the minimum extent necessary to perform the duties under Article 24(1)1 (limited to the duties referred to in subparagraph 5a,b,d and g of Article 2), 4 or Article 54, the Agency may request the heads of the relevant central administrative agencies, local governments, the National Pension Service under the National Pension Act, the National Health Insurance Corporation under the National Health Insurance Act, and other public organizations prescribed by Presidential Decree (hereafter referred to as "related institutions" in this Article) to provide the following data or information. <Amended on June 8, 2021>

1. The registered matters concerning family relations under the Act on Registration of Family Relations and the electronic information data of resident registration under the Resident Registration Act;

2. Data on national and local taxes;

3. Data on various types of pensions, insurances, and benefits, such as the national pension, public officials pension, military pension, private school teachers and staff pension, special post office pension, health insurance, employment insurance, industrial accident compensation insurance, and veterans' compensation benefits;

4. Data on real estate, such as the register under the "Real Estate Registration Act," the building register under the "Building Act," and the land register under the "Act on the Establishment and Management of Spatial Information";

5. Other data or information necessary to confirm the subject's personal information, income, assets, etc.

(2) With the consent of the parties to the minimum extent necessary to perform duties related to debt settlement support or support for rehabilitation and bankruptcy proceedings under subparagraph 4 or 6 of Article 60, the Committee may request the heads of the relevant agencies to provide the following data or information. <Amended on June 8, 2021>

2. Data on national and local taxes;

5. Other data or information necessary to confirm the subject's personal information, income, assets, etc.

(3) The head of the relevant agency requested to provide data or information pursuant to paragraphs (1) and (2) shall comply unless there is a special reason. <Amended on June 8, 2021>

(4) Where data or information requested pursuant to paragraph (1) or (2) is provided to the Agency, etc., user fees, fees, etc., for such provision shall be exempted. <Added on Jun. 8, 2021>

(5) The specific scope of data or information that may be requested pursuant to paragraphs (1) and (2) shall be prescribed by Presidential Decree. <Added on Jun. 8, 2021>

[Title Amended on Jun. 8, 2021]

MICROFINANCE SUPPORT ACT

Article 1(Purpose) #

Article 2(Definitions) #

Article 3(Establishment) #

Article 4(Capital) #

Article 5(Registration) #

Article 6(Offices) #

Article 7(Articles of incorporation) #

Article 8(Establishment of operating committee) #

Article 9(Composition of operating committee) #

Article 10(Operation of operating committee) #

Article 11(Executive officers) #

Article 12(Duties of executive officers) #

Article 13(Grounds for disqualification of executive officers) #

Article 14(Guarantee of status of executive members) #

Article 15(Restriction on power of representation of Director) #

Article 16(Board of directors) #

Article 17(Appointment of agents) #

Article 18(Appointment and dismissal of employees) #

Article 19(Mandatory prohibition of concurrent offices) #

Article 20(Establishment of Dormant Deposit Management Committee) #

Article 21(Operation of Management Committee) #

Article 22(Grounds for disqualification of Management Members) #

Article 23(Guarantee of status of Management Members) #

Article 24(Duties of agency) #

Article 25(Business plans) #

Article 26(Support for business execution organizations) #

Article 27(Obligation of business execution organizations) #

Article 28(Return of support fund) #

Article 29(Establishment and operation of Microfinance Committee) #

Article 29-2(Establishment of for small-loan integrated financial support center) #

Article 30(Business year, budget, and settlement) #

Article 31(Settlement of profits and losses) #

Article 32(Operation of surplus money) #

Article 33(Issuance of bonds) #

Article 34(Borrowing funds) #

Article 35(Sale of claims for reimbursement) #

Article 36(Gratuitous lending of public property) #

Article 37(Receipt of donations) #

Article 38(Separate accounting and transactions between accounts) #

Article 39(Establishment of dormant deposit management account) #

Article 40(Contribution of dormant deposit) #

Article 41(Financial resources of dormant accounts) #

Article 42(Use of dormant accounts) #

Article 43(Materials inquiry of original dormant deposit holders) #

Article 44(Notification to original dormant deposit holders) #

Article 45(Request for payment of dormant deposit) #

Article 46(Establishment of microfinance supplementary accounts) #

Article 47(Formation of supplementary accounts) #

Article 48(Use of supplementary accounts) #

Article 49(Limit of guarantee) #

Article 50(Establishment of guaranty relations) #

Article 51(Obligation of creditor) #

Article 52(Guarantee fees) #

Article 53(Discharge of guaranty debt) #

Article 54(Exercise of claim for reimbursement) #

Article 55(Amount of loss) #

Article 56(Establishment) #

Article 57(Registration) #

Article 58(Offices) #

Article 59(Articles of incorporation) #

Article 60(Business of the Committee) #

Article 61(Composition of the Committee) #

Article 62(Establishment of secretariat) #

Article 63(Chairperson' duties) #

Article 64(Grounds for disqualification of members) #

Article 65(Guarantee of status for members) #

Article 66(Meetings of Committee) #

Article 67(Appointment of agents) #

Article 68(Business year) #

Article 69(Submission of business plans) #

Article 70(Basic principle of debt settlement) #

Article 71(Application for debt settlement) #

Article 72(Procedure for debt settlement) #

Article 73(Method of debt settlement) #

Article 74(Effect of debt settlement) #

Article 75(Agreement on credit recovery support) #

Article 76(Fees) #

Article 77 #

Article 78(Supervision) #