Micro Credit Support Act

Article 1 (Purpose)
The purpose of this Act is to contribute to stabilization of ordinary people’s lives and balanced development of economy and society by supporting the financial life of ordinary people and the debt settlement for individual debtors by establishing the Korea Inclusive Finance Agency and the Credit Counseling and Recovery Service.

Article 2 (Definition)
The terms used in this Act are defined as follows:
1. The term "financial company" means any of the following persons:
(a) Banks under the Banking Act;
(b) The Korea Development Bank under the Korea Development Bank Act;
(c) The Industrial Bank of Korea under the Industrial Bank of Korea Act;
(d) Insurance company under the Insurance Business Act;
(e) Unions, Nonghyup Bank, Nonghyup Life Insurance, Co., Ltd., and Nonghyup Property and Casualty Insurance, Co., Ltd. under the Agricultural Cooperatives Act;
(f) Cooperatives and Suhyup Bank under the Fisheries Cooperatives Act;
(g) Mutual savings banks under the Mutual Savings Banks Act;
(h) Community credit cooperatives established under the Community Credit Cooperatives Act;
(i) Credit unions established under the Credit Unions Act;
(j) Financial investment operators and merchant banks under the Financial Investment Services and Capital Markets Act;
(k) Communications agencies under the Postal Savings and Insurance Act;
(l) Specialized credit finance company under the Specialized Credit Finance Business Act;
(m) Cooperatives established under the Forestry Cooperatives Act;
(n) Any person who engages in financial business under other Acts, as prescribed by Presidential Decree;
2. The term "deposit, etc." means any of the following:
(a) Money and interest thereon accrued due to the financial company bearing the debt from many unspecified persons by means of deposit (including cost of issuing cashier's check issued pursuant to the Check Act (hereinafter referred to as cashier's check)), installment savings, installment, etc.;
(b) Refunds, insurance, and dividends of a contractor paid in the future pursuant to an insurance contract with the financial company;
3. The term "dormant deposit, etc." means any of the following items:
(a) Dormant deposit: The deposit among deposits of the financial company in which the extinctive prescription of bonds or claim has been completed pursuant to the regulations of the relevant Act and the contract with the person concerned;
(b) Unclaimed profit: Profit, such as dividends, whose transfer of title is not made in the name of the investor after it is returned to the investor through the depositor under Article 314 of the Financial Investment Services and Capital Markets Act, hence received and managed by the Korea Securities Depository for at least for 10 years in accordance with the exercise of the rights of stock certificates(limited to money; in the case of sales of profit other than money, the sale proceeds shall be included) in the name of the Korea Securities Depository, established pursuant to Article 294 of the same Act (hereinafter referred as "unclaimed profit");
4. The term "original right holder of a dormant deposit, etc." means a person who has lost the claim or right for his or her deposit, etc. or the owner of the unclaimed profit (including a person who was the owner), who has failed to receive the unclaimed profit due to completion of extinctive prescription;
5. The term "programs for supporting the financial life of ordinary people" means the following business:
(a) Business of lending unsecured loans and credit guarantee business to support business start-ups, employment, housing, medical-care, and education of low-income people;
(b) Business for unsecured loans and credit guarantee business to support the economic rehabilitation of debt delinquents;
(c) Business to support the execution and performance of the insurance contracts with low-income people;
(d) Projects for asset formation support for low-income people;
(e) Comprehensive counseling, education, and provision of information concerning the financial life of ordinary people;
(f) Support with employment to support economic self-independence of ordinary people;
(g) Unsecured loan business for supporting the business of small private entrepreneurs;
(h) Other businesses prescribed by Presidential Decree, for the stabilization of ordinary people’s living;
6. The term "business execution organization" means a person who meets the qualifications prescribed by Presidential Decree in consideration of financial capabilities, capabilities to conduct business, etc., who conducts business for supporting the financial life of ordinary people (excluding credit guarantee business referred to in subparagraph 5 (a) and (b));
7. The term "credit guarantee" means that assured by the Korea Inclusive Finance Agency under Article 3 on the following debts borne by an individual:
(a) Monetary debts an individual owes to the financial company, upon receipt of a loan, benefit, etc. of funds from the financial company;
(b) Other monetary debt determined by Presidential Decree in consideration of the necessity, etc. of support for the financial life of ordinary people among the debt of an individual.
8. The term "financial association" means any of the following persons:
(a) An association prescribed by the Financial Services Commission (hereinafter referred to as "Bank Association"), from among the Associations established with banks, etc. under the Banking Act as its members;
(b) An association composed of life insurance companies and the association composed of non-life insurance companies among insurance associations established pursuant to Article 175 of the Insurance Business Act;
(c) The National Federation under the Agricultural Cooperatives Act;
(d) The National Federation under the Fisheries Cooperatives Act;
(e) The Korea Federation of Savings Banks established under the Mutual Savings Banks Act;
(f) The National Federation of Community Credit Cooperatives under the Community Credit Cooperatives Act;
(g) The National Credit Union Federation of Korea under the Credit Unions Act;
(h) The specialized credit finance business association under the Specialized Credit Finance Business Act;
(i) The National Federation under the Forestry Cooperatives Act;
(j) An institution prescribed by Presidential Decree, which is established with a financial company as its member under other statutes.

Article 3 (Establishment)
(1) The Korea Inclusive Finance Agency (hereinafter referred to as the "Agency") shall be established to support and facilitate financial life of ordinary people.
(2) The Agency shall be a corporation.
(3) Except as otherwise expressly provided for in this Act concerning the Agency, the provisions concerning a limited company under the Commercial Act shall apply mutatis mutandis.

Article 4 (Capital)
(1) The capital of the Agency shall be one trillion won.
(2) The capital of the Agency may be invested by any of the following persons:
1. The Government;
2. The financial company;
3. The Korea Asset Management Corporation (hereinafter referred to as the "Korea Asset Management Corporation") under the Act on the Efficient Disposal of Non-Performing Assets, etc. of Financial Companies and the Establishment of Korea Asset Management Corporation;
4. Other persons prescribed by Presidential Decree.
(3) Matters necessary for making the investment under paragraph (2) shall be prescribed by Presidential Decree.

Article 5 (Registration)
(1) The Agency shall be incorporated with registration for incorporation in the location of its main office. (2) The registration for incorporation, the registration for modification, and other registration for the Agency under paragraph (1) shall be prescribed by Presidential Decree. (3) The Agency shall not prevail over any third party thereon, unless it has made a registration on the matter required to be registered.

Article 6 (Offices)
(1) The location of main office of the Agency shall be determined by the articles of incorporation thereof.
(2) The Agency may establish the branch offices or the local offices where necessary as determined by the articles of incorporation.

Article 7 (Articles of incorporation)
(1) The articles of incorporation of the Agency shall include the following:
1. Objectives;
2. Name;
3. Matters concerning the main office, branch offices, and local offices;
4. Matters concerning its capital stock;
5. Matters concerning the operating committee under Article 8;
6. Matters concerning the board of directors under Article 16;
7. Matters concerning the Dormant Deposit Management Committee under Article 20;
8. Matters concerning the issuance of bonds under Article 33;
9. Matters concerning executive officers and employees;
10. Matters concerning services and performance thereof;
11. Matters concerning assets and accounting;
12. Matters concerning revisions to the articles of association;
13. Matters concerning public announcement and the method thereof;
14. Other matters specified by Presidential Decree.
(2) To amend the articles of incorporation, the Agency shall in advance obtain authorization from the Financial Services Commission after resolution by the operating committee under Article 8.

The terms used in this Act shall be defined as follows.

Article 8 (Establishment of operating committee)
(1) The Agency shall have an operating committee.
(2) The operating committee shall deliberate and decide on the following:
1. Establishment and modification of the basic policy and work plan concerning the business operation of the Agency;
2. Amendments to the articles of incorporation;
3. Preparation and modification of the operational guidelines under Article 24 (4);
4. Formulation, amendment, and appropriation of the budget;
5. Other matters determined by the articles of incorporation, concerning the operation of the Agency.

Article 9 (Composition of operating committee)
(1) The operating committee shall be comprised of 11 members, including one chairperson.
(2) The following persons shall serve as the members of the operating committee:
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.
(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.

Article 10 (Operation of operating committee)
(1) The Director of the Agency shall serve as the chairperson of the operating committee.
(2) The chairperson shall represent the operating committee, and manage all duties of the operating committee.
(3) Where the chairperson fails to perform duties due to any extenuating circumstance, the member predetermined by the operating committee shall act on behalf of the chairperson.
(4) The meeting of the operating committee shall be convened by the chairperson, as prescribed by the articles of incorporation, where the chairperson deems it necessary or any request is made by one-third of registered members.
(5) The operating committee shall be convened when a majority of registered members are present, and shall pass resolutions with the consent of a majority of those present.
(6) Except as provided in this Section, matters necessary for the operation of the operating committee shall be prescribed by Presidential Decree.

Article 11 (Executive officers)
(1) The Agency shall have up to six directors, including a Director and a Vice Director, and one auditor.
(2) The Director of the Agency shall be appointed and dismissed by the President upon the recommendation of the Chairman of the Financial Services Commission, from among persons with abundant knowledge and experience in microfinance.
(3) The Vice Director and directors shall be appointed and dismissed by the Financial Services Commission upon the recommendation of the Director.
(4) The auditor shall be appointed and dismissed by the Financial Services Commission.
(5) Each executive officer’s term of office shall be three years. The same shall also apply to members newly appointed due to a vacancy.

Article 12 (Duties of executive officers)
(1) The Director shall represent the Agency and manage all duties of the Agency.
(2) Where the Director is unable to perform his or her duties due to any extenuating circumstance, the Vice Director shall act on behalf of the Director. (3) The directors shall share their duties, as determined by the articles of incorporation. (4) The auditor shall audit duties and accounting of the Agency.

Article 13 (Grounds for disqualification of executive officers)
None of the following persons shall become an executive officer of the Agency:
1. A person who is not a national of the Republic of Korea;
2. Any person falling under each subparagraph of Article 33 of the State Public Officials Act.

Article 14 (Guarantee of status of executive members)
Except in any of the following cases, no executive officer shall be dismissed against his or her will during his or her term of office:
1. Where he or she falls under any subparagraph of Article 13;
2. Where he or she violates this Act or the order or articles of incorporation under this Act;
3. Where he or she becomes seriously unable to perform any of his or her duties due to mental or physical incapacity.

Article 15 (Restriction on power of representation of Director)
The Director, or the Vice Director who acts on behalf of the Director pursuant to Article 12 (2), shall not represent the Agency on matters in which any of his or her interest conflicts with the interests of the Agency, and instead the auditor shall represent the Agency.

Article 16 (Board of directors)
(1) In order to deliberate on and resolve matters to be referred to the meeting of the operating committee and other significant matters concerning the affairs of the Agency determined by the articles of incorporation, the board of directors shall be established under the Agency.
(2) The board of directors shall be comprised of a Director, Vice Director, and directors.
(3) The Director shall convene meetings of the board of directors, and shall serve as the chairperson thereof.
(4) The board of directors shall be convened when a majority of members are present, and shall pass resolutions with the consent of a majority of those present.
(5) The auditor may attend meetings of the board of directors and present his or her opinion.

Article 17 (Appointment of agents)
The Director may appoint an agent having authority to take any judicial or extrajudicial action concerning duties of the Agency, from among executive officers or employees.
Article 18 (Appointment and dismissal of employees)
The employees of the Agency shall be appointed or dismissed by the Director.

Article 19 (Mandatory prohibition of concurrent offices)
(1) No executive officer or employee of the Agency shall engage in any work for profits other than their duties.
(2) No executive officer or employee of the Agency shall hold any other job without permission of the Director.

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.
(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:
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.
(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.
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.
(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 21 (Operation of Management Committee)
(1) The meetings of the Management Committee shall be convened by the chairperson, as prescribed by the articles of incorporation, where the chairperson deems it necessary or any request is made by one-third of registered members.
(2) The meetings of the Management Committee shall be convened when a majority of current members are present, and shall pass resolutions with the consent of a majority of those present.
(3) Other matters necessary to operate the Management Committee shall be prescribed by Presidential Decree.

Article 22 (Grounds for disqualification of Management Members)
None of the following persons shall become a Management Member:
1. A person who is not a national of the Republic of Korea;
2. Any person falling under each subparagraph of Article 33 of the State Public Officials Act.

Article 23 (Guarantee of status of Management Members)
Except in any of the following cases, no Management Member shall be dismissed against his or her will during his or her term of office:
1. Where he or she falls under any of the subparagraphs of Article 22;
2. Where he or she violates this Act or the order or articles of incorporation under this Act;
3. Where he or she becomes seriously unable to perform any of his or her duties due to mental or physical incapacity.

Article 24 (Duties of agency)
(1) The Agency shall conduct the following duties:
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;
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 25 (Business plans)
(1) The Agency shall prepare an operational plan every business year, and obtain approval from the Financial Services Commission after resolution by the operating committee.
(2) To obtain approval under paragraph (1), the Agency shall submit its operational plan to the Financial Services Commission by no later than a month before the relevant business year begins.
(3) To alter an operational plan, the Agency shall first obtain an approval from the Financial Services Commission after resolution by the operating committee.

Article 26 (Support for business execution organizations)
(1) The Agency may provide the following support to business execution organizations.
1. Loans and contributions;
2. Subsidies for operating expenses and project expenses in consideration of business performance, etc.;
3. Provision of education and training;
4. Business support such as management and legal advice and computerized support;
5. Other support prescribed by Presidential Decree for the smooth performance of projects by business execution organizations.
(2) To obtain support under paragraph (1), business execution organizations shall apply to the Agency, as prescribed by Presidential Decree.

Article 27 (Obligation of business execution organizations)
(1) The business execution agency shall conduct a project to support the financial life of ordinary people in good faith with the due care of a good manager in accordance with the purpose of the project to support the financial life of ordinary people.
(2) No business execution organization shall use the money received pursuant to Article 26 (1) 1 and 2 (hereinafter referred to as "subsidies") for any purpose other than the purpose of conducting projects for supporting the financial life of ordinary people, or receive subsidies by false application.
(3) Where a business execution organization has completed its business or its fiscal year has terminated, it shall prepare a business performance report and submit it to the Agency, as prescribed by Presidential Decree.
(4) Where the Agency requests data from a business execution organization in connection with a project for supporting the financial life of ordinary people, the business execution organization shall submit the relevant data unless there is a compelling reason not to do so.

Article 28 (Return of support fund)
(1) Where any business execution organization has used support funds for other than intended purposes or has obtained such funds by making a false application, in violation of Article 27 (2), the Director of the Agency shall revoke all or part of a decision to grant support funds.
(2) Where the decision to pay subsidies is revoked, the business execution organization shall return the subsidies.
(3) Except as expressly provided for in paragraphs (1) and (2), matters necessary for the supervision, return, etc. of support funds shall be prescribed by Presidential Decree.

Article 29 (Establishment and operation of Microfinance Committee)
(1) In order to formulate and consistently implement policy concerning financial life of ordinary people from a comprehensive perspective, and to efficiently discuss and coordinate matters necessary for consultation between the relevant central administrative agency and private institutions or organizations, the Agency may have the Microifinance Committee (hereafter referred to as the "Committee" in this Article) comprised of the Financial Services Commission, the Financial Supervisory Service, financial companies, financial associations, institutions or organizations, etc. related to the support business for the financial life of ordinary people.
(2) The Agency may have the secretariat under the Committee, to be comprised of staff members of the participating institutions.
(3) Matters necessary for organization, operation, etc. of the Committee and the secretariat shall be prescribed by Presidential Decree.

Article 29-2 (Establishment of for small-loan integrated financial support center)
(1) The following persons may jointly establish and operate a center to comprehensively support the financial life of ordinary people and the debt settlement, etc. of individual debtors (hereinafter referred to as "small-loan integrated financial support center"):
1. The Agency;
2. Credit Counseling and Recovery Service established under Article 56;
3. An institution prescribed by Presidential Decree, which conducts business affairs related to support for the financial life of ordinary people.
(2) The small-loan integrated financial support center under paragraph (1) shall perform the following duties:
1. Counseling, education, and provision of information to support the financial life of ordinary people;
2. Support with debt adjustment of individual debtors;
3. Other matters prescribed by Presidential Decree for the financial life of ordinary people and the adjustment of debts of individual debtors.
(3) The operation council of the Integrated Support Center for Microfinance shall be established in the Agency to consult on and coordinate matters concerning the operation of the small-loan integrated financial support center.
(4) Matters necessary for the duties and operation methods of the Integrated Support Center for Microfinance and the organization, operation, etc. of the operation council of the small-loan integrated financial support center shall be prescribed by Presidential Decree.

Article 30 (Business year, budget, and settlement)
(1) The business year of the Agency shall coincide with the fiscal year of the Government.
(2) The Agency shall formulate the budget for income and expenditure before each business year begins, and shall obtain approval from the Financial Services Commission after resolution by the operating committee. The same shall also apply where it intends to amend the budget.
(3) To obtain approval under paragraph (2), the Agency shall submit the budgetary proposal to the Financial Services Commission by no later than one month before the relevant fiscal year begins.
(4) The Agency shall prepare a balance sheet within three months after each business year, and shall submit it to the Financial Services Commission after resolution by the operating committee.

Article 31 (Settlement of profits and losses)
(1) Where profits accrue upon closing accounts each business year, the Agency shall accumulate the total amount of profit.
(2) Where any loss accrues from the closing account of every business year, the Agency shall compensate them from the amount accumulated under paragraph (1).

Article 32 (Operation of surplus money)
The Agency may manage surplus funds for each account under its management by the following methods.
1. Deposit to financial companies;
2. Purchase of State bonds, municipal bonds, and bonds guaranteed to be paid by the Government and local governments;
3. Purchase of bonds issued or guaranteed to be paid by financial companies;
4. Any other method prescribed by the operating committee (referring to the Management Committee in cases of dormant accounts) for the management of surplus funds.

Article 33 (Issuance of bonds)
(1) Where necessary to support the financial life of ordinary people, the Agency may issue bonds at the expense of a microfinance supplementary account under Article 46 with the approval of the Financial Services Commission after resolution by the operating committee.
(2) Bonds issued by the Agency shall be deemed special bond securities referred to in Article 4 (3) of the Financial Investment Services and Capital Markets Act.
(3) Except for matters expressly provided for in paragraphs (1) and (2), matters necessary for issuance of bonds shall be prescribed by Presidential Decree.

Article 34 (Borrowing funds)
The Agency may borrow funds necessary to perform its duties, from financial companies or other persons.

Article 35 (Sale of claims for reimbursement)
If necessary to efficiently collect and manage claims for reimbursement and recover loans (hereinafter referred to as "claim for reimbursement, etc."), the Agency may sell the claim for reimbursement, etc. to the Korea Asset Management Corporation (including corporations invested by the Korea Asset Management Corporation) and other persons prescribed by Presidential Decree, after resolution by the board of directors.

Article 36 (Gratuitous lending of public property)
(1) If deemed necessary to establish and operate the Agency and to perform its duties, local governments may lend public property to the Agency for rent-free or allow it to use and make a profit therefrom, notwithstanding the Public Property and Commodity Management Act.
(2) Matters necessary for the details, conditions, and procedures for lending, use, and profit-making under paragraph (1) shall be prescribed by Presidential Decree.

Article 37 (Receipt of donations)
(1) Notwithstanding the main sentence of Article 5 (2) of the Act on Collection and Use of Donations, the Agency may receive donations deposited voluntarily by corporations, organizations, individuals, etc. for the sake of the duties under each subparagraph of Article 24 (1).
(2) The Agency may provide donations deposited for the purpose of supporting business execution organizations to business execution organizations.
(3) Matters necessary for procedures, etc. of receiving donations under paragraph (1) shall be prescribed by Presidential Decree.

Article 38 (Separate accounting and transactions between accounts)
(1) The Agency shall keep separate accounts for each account managed by the Agency.
(2) The methods, etc. of transferring assets and liabilities between accounts, trading of loans, etc., and allocating expenses incurred in operating the Agency shall be determined by the operating committee.
(3) Notwithstanding paragraph (2), the methods, etc. of allocating transactions between dormant accounts and other accounts and the operational expenses of the Agency for dormant accounts shall be determined by the Management Committee following deliberation by the operating committee.

Article 39 (Establishment of dormant deposit management account)
The dormant deposit management account shall be established in the Agency in order to manage and operate dormant deposits, etc. in an efficient and fair manner.

Article 40 (Contribution of dormant deposit)
(1) Financial companies, etc. may contribute their dormant deposits, etc. to dormant accounts.
(2) Where financial companies, etc. contribute dormant deposits, etc. to dormant accounts under paragraph (1), they shall submit the following materials to the Agency:
1. In the case of dormant deposit: Name, address, resident registration number or alien registration number, dormant deposit amount, and other data prescribed by Presidential Decree of the original holder of dormant deposits, etc.; provided, when contributing the proceeds for issuance of a cashier's check, information on the issuer and payer, the issuance number of the cashier's check, the face value, and other materials prescribed by Presidential Decree shall be submitted;
2. In cases of unclaimed profit: The issuer of stock certificates, details of the unclaimed profit and other data prescribed by Presidential Decree.

Article 41 (Financial resources of dormant accounts)
Dormant accounts shall be managed with each of the following financial resources:
1. Dormant deposit, etc. contributed by financial companies, etc. pursuant to Article 40;
2. Proceeds from operation under subparagraph 1;
3. Other profits.

Article 42 (Use of dormant accounts)
Dormant accounts shall be used for the following purposes:
1. Payment of an amount in lieu of dormant deposits, etc. under Article 45;
2. Transfer to a self-sufficiency account established pursuant to Article 55-2;
3. Expenses in the establishment, operation, and management of dormant accounts;
4. Survey and research on activities to protect the original right holder, such as dormant deposits, etc.;
5. Other purposes prescribed by Presidential Decree, which are necessary to achieve the objectives of the establishment of the dormant accounts.

Article 43 (Materials inquiry of original dormant deposit holders)
The Management Committee shall require an original dormant deposit, etc. holder to inquire into materials under the main clause of Article 40 (2), as prescribed by Presidential Decree; provided, this shall not apply where the cost of issuing cashier’s check or unclaimed profit is contributed.

Article 44 (Notification to original dormant deposit holders)
(1) Where financial companies have determined to contribute the dormant deposit pursuant to Article 40 (1), they shall notify the original dormant deposit holders, of their contribution, by one month before contributing a deposit of at least the amount determined by Presidential Decree; Provided, This shall not apply where the cost of issuing cashier’s check is funded.
(2) The method of notification under paragraph (1) and other necessary matters shall be prescribed by Presidential Decree.

Article 45 (Request for payment of dormant deposit)
Where the original dormant deposit, etc. holders requests the payment after the dormant deposit, etc. has been contributed to the dormant account, the Management Committee shall pay the amount in lieu of the dormant deposit, etc. to the relevant original dormant deposit, etc. holders.

Article 46 (Establishment of microfinance supplementary accounts)
In order to smoothly supply funds necessary for ordinary people through credit guarantees, a microfinance supplementary account for ordinary people (hereinafter referred to as the "supplementary account") shall be established in the Agency.

Article 47 (Formation of supplementary accounts)
(1) The supplementary account shall be financed from the following funds:
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.
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.
(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.

Article 48 (Use of supplementary accounts)
The supplementary account shall be used for the following purposes:
1. Performance of guaranteed obligation;
2. Repayment of the principal and interest for borrowings;
2-2. Repayment of principal and interest on bonds issued at the expense of the supplementary account;
3. Expenses in the establishment, operation, and management of the supplementary account;
4. Survey and research for developing credit guarantee products and improving the soundness of supplementary accounts;
5. Other purposes prescribed by Presidential Decree, which are necessary to achieve the objectives of the establishment of supplementary accounts.

Article 49 (Limit of guarantee)
(1) The upper limit of the total amount the Agency may guarantee at the expense of the supplementary account shall be prescribed by Presidential Decree within the scope not exceeding 15 times the amount of the funds under Article 47 (1) 1 and 2 plus its profit carried over.
(2) The upper limit of the amount the Agency may guarantee for the same individual at the expense of the supplementary account, shall be publicly announced through the website, etc., determined by the Financial Services Commission.

Article 50 (Establishment of guaranty relations)
(1) Upon having determined to provide a credit guarantee, the Agency shall notify such fact to both the individual who intends to obtain the credit guarantee and the creditor of the debt who intends to provide the credit guarantee (hereinafter referred to as "creditor"), respectively.
(2) Guaranty relations shall be established where claim and obligation relations are formed between the individual who intends to obtain a credit guarantee and the creditor.
(3) Unless the main claim and obligation relations are established within 60 days from the date of notification under paragraph (1), the relevant guaranty relations shall not be established.

Article 51 (Obligation of creditor)
Upon receipt of notification pursuant to Article 50 (1), a creditor shall without delay notify the Agency of such fact, in any of the following cases:
1. Where the main claim and obligation relations are established;
2. Where all or some of main debts is terminated;
3. Where a debtor fails to discharge the debt;
4. Where a debtor loses the benefit of time limit;
5. Other cases where any ground likely to affect the guaranty debt arises.

Article 52 (Guarantee fees)
(1) The Agency may receive a guarantee fee prescribed by Presidential Decree from a person who receives a credit guarantee from a supplementary account, taking into account the credit rating of the person who receives the credit guarantee, the operating status of the supplementary account, etc.
(2) Where a person who has received a credit guarantee fails to perform his or her obligation within the deadline and his or her obligation to perform the guaranteed obligation is not discharged, the Agency may receive an additional guarantee fee, as prescribed by Presidential Decree, from the person who received the credit guarantee for the unpaid amount of the guaranteed obligation, taking into account the credit rating of the person who received the credit guarantee.
(3) Where any person who uses a credit guarantee service fails to pay guarantee fees within the payment period of such guarantee fees, the Agency may, as prescribed by Presidential Decree, charge late fees on the unpaid guarantee fees.

Article 53 (Discharge of guaranty debt)
(1) Where an event of default prescribed by Presidential Decree occurs, a creditor may claim the discharge of the guaranty debt to the Agency.
(2) In receipt of a claim of discharge from the creditor under paragraph (1), the Agency shall, without delay, discharge the main debt and subordinated debt prescribed by Presidential Decree.

Article 54 (Exercise of claim for reimbursement)
(1) Upon discharging a guaranty debt, the Agency may exercise a claim for reimbursement.
(2) Where the Agency has discharged the guaranty debt, a creditor shall, without delay, send the Agency materials necessary for the Agency to exercise the claim for reimbursement, and actively cooperate in its exercise of the claim for reimbursement.
(3) Where a debtor falls under any of the following, the Agency may postpone the exercise of the claim for reimbursement after resolution by board of directors:
1. Where a debtor is deemed to have no remaining property, after such property is appropriated for expenses incurred in exercising the claim for reimbursement;
2. Where it is deemed possible that the ability to repay the debt of a future debtor is likely to increase when the exercise of the claim for reimbursement is postponed;
3. Other cases prescribed Presidential Decree as necessary to retrieve the claim for reimbursement.
(4) The Agency may take the following measures, as a follow-up management of the acquired claim for reimbursement:
1. Where it is inevitable to preserve the claim for reimbursement: Acquisition of the collateral;
2. Where no practical benefit exists in exercising the claim for reimbursement by means of the legal procedure or any other method: Amortization of the claim for reimbursement.
(5) Extinctive prescription for a claim for reimbursement shall be completed, unless it is exercised within 10 years.
(6) In cases prescribed by Presidential Decree, such as where a debtor is unable to redeem due to his or her death or mental disorder, the Agency may exempt the repayment of all or some of the claim for reimbursement.

Article 55 (Amount of loss)
(1) Upon discharging a guaranty debt, the Agency may collect the amount of loss from the relevant debtor against the discharged amount within the scope not exceeding 20/100 of the annual interest rate, as prescribed by Presidential Decree.
(2) The Agency may reduce and/or exempt all or some of the amount of loss for a debtor who has made a contract to repay the claim for reimbursement in lump sum or by installment.

Article 55-2 (Establishment and creation of self-sufficiency support account)
(1) The self-sufficiency support account shall be established in the Agency for the smooth performance of projects for supporting the financial life of ordinary people.
(2) The self-sufficiency support account shall use the following as its financial resources:
1. Contributions by the Government;
2. Donations received pursuant to Article 37 (1) (excluding those provided to business execution organizations pursuant to paragraph (2) of that Article);
3. Fund transferred from dormant accounts under subparagraph 2 of Article 42;
4. Loan interest and loan recoveries;
5. Revenues from guarantee fees;
6. Revenue accruing from the exercise of a right to indemnity;
7. Operating profits from the self-sufficiency support account;
8. Financial resources prescribed by Presidential Decree in order to create the self-sufficiency support account.

Article 55-3 (Purposes of self-sufficiency support account)
The self-sufficiency support account shall be used for the following purposes:
1. Implementation of programs for supporting the financial life of ordinary people;
2. Support for a business execution organization;
3. Performance of guarantee obligations following implementation of programs under subparagraph 1;
4. Expenses in the establishment, operation, and management of the self-sufficiency support account;
5. Survey and research into programs for supporting the financial life of ordinary people;
6. Other purposes prescribed by Presidential Decree, which are necessary to achieve the objectives of the establishment of the self-sufficiency support account.

Article 55-4 (Guarantee fees)
(1) The Agency may collect guarantee fees prescribed by Presidential Decree from a person who receives a credit guarantee in the self-sufficiency support account within the scope not exceeding 5/100 of the annual interest rate of the amount of credit guarantee, taking into consideration the credit rating of the person who receives the credit guarantee and the operational conditions of the self-sufficiency support account, etc.
(2) Where a person who has received the credit guarantee from the self-sufficiency support account has not been released from the obligation to perform the guaranteed obligation due to failing to discharge the debt within the deadline, the Agency may receive the additional guarantee fees from the person who has received the credit guarantee within the scope not exceeding 25/1,000 of the annual interest rate of the amount having not been discharged among the guarantee debt, as prescribed by Presidential Decree, in consideration of the credit rating of the receiver of the credit guarantee.

Article 55-5 (Provisions Applicable Mutatis Mutandis)
Articles 50, 51, 52 (3), and 53 through 55 shall apply mutatis mutandis to the guarantee of the selfsufficiency support account. In such cases, "supplementary account" shall be construed as "selfsufficiency support account".

Article 56 (Establishment)
(1) A Credit Counseling and Recovery Service (hereinafter referred to as the "Committee") shall be established for assistance, etc. on debt settlement of an individual debtor.
(2) The Committee shall be a corporation.
(3) Except as otherwise provided in this Act concerning the Committee, the provisions concerning an incorporated association under the Civil Act shall apply mutatis mutandis.

Article 57 (Registration)
(1) The Committee shall be incorporated upon registration for incorporation at the location of its main office.
(2) Matters concerning the registration for incorporation under paragraph (1), the registration for alteration, and other registration, shall be prescribed by Presidential Decree.
(3) The Committee shall not prevail over a third party, unless relevant matters to be registered are registered.

Article 58 (Offices)
(1) The location of the main office of the Committee shall be prescribed by the articles of incorporation.
(2) The Committee may establish branches or sub-branches in necessary places, as prescribed by its articles of incorporation.

Article 59 (Articles of incorporation)
(1) The articles of incorporation of the Committee shall include the following:
1. Objectives;
2. Name;
3. Matters concerning its offices;
4. Matters concerning its business;
5. Matters concerning members;
6. Matters concerning property and accounting;
7. Matters concerning the organization;
8. Matters concerning revisions to the articles of association;
9. Matters concerning public announcement and the method thereof;
10. Other matters specified by Presidential Decree.
(2) To amend the articles of incorporation, the Committee shall first obtain authorization from the Financial Services Commission.

Article 60 (Business of the Committee)
The Committee shall deliberate and resolve on the following matters:
1. Formulation and implementation of business plans of the Committee;
2. Formulation, amendment, and abolition of the articles of incorporation and regulations of the Committee;
2-2. Compilation, amendment and settlement of the budget of the Committee;
3. Matters concerning agreements on credit recovery support under Article 75;
4. Debt counseling for an individual debtor, the receipt of an application for supporting debt settlement, and assistance in debt settlement;
5. Follow-up management for an individual debtor whose debt settlement has been decided;
6. Application for rehabilitation procedures or bankruptcy procedures under the Debtor Rehabilitation and Bankruptcy Act for an individual debtor, and support for all necessary matters therefor;
7. Other matters the Committee deems necessary.

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:
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;
(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.
(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 62 (Establishment of secretariat)
(1) To assist the duties of the Committee and handle general affairs, the Committee has a secretariat.
(2) Necessary matters for the organization and operation of the secretariat shall be prescribed by Presidential Decree.
Article 63 (Chairperson' duties)
(1) The Chairperson shall represent the Committee and manage all duties of the Committee.
(2) Where the Chairperson becomes unable to perform any of his or her duties due to any extenuating circumstance, members of the Committee shall act on behalf of the Chairperson, according to the order of priority determined by the articles of incorporation.
Article 64 (Grounds for disqualification of members)
None of the following persons shall become a member of the Committee:
1. A person who is not a national of the Republic of Korea;
2. Any person falling under each subparagraph of Article 33 of the State Public Officials Act.
Article 65 (Guarantee of status for members)
Except in any of the following cases, no member shall be dismissed against his or her will during his or her term of office:
1. Where he or she falls under any of the subparagraphs of Article 64;
2. Where he or she violates this Act or the order or articles of incorporation under this Act;
3. Where he or she becomes seriously unable to perform any of his or her duties due to mental or physical incapacity.
Article 66 (Meetings of Committee)
(1) The meetings of the Committee shall be convened by the Chairperson, where deemed necessary by the Chairperson, or where requested by at least one-third of all registered members.
(2) The meetings of the Committee shall be assembled with a majority of registered members present, and pass resolutions with the consent of a majority of those present.
(3) The auditor may attend the Committee and state his or her opinion.
Article 67 (Appointment of agents)
The Chairperson may appoint an agent with authority to do all acts judicially or extra-judicially concerning the affairs of the Committee, from among executive officers and employees.

Article 68 (Business year)
The business year of the Committee shall coincide with the fiscal year of the Government.

Article 69 (Submission of business plans)
(1) The Committee shall submit a business plan and a budget bill for each business year to the Financial Services Commission following a resolution by the Committee and obtain approval thereof from the Financial Services Commission, as prescribed by Presidential Decree:
1. Deleted;
2. Deleted.
(2) Where it is intended to obtain approval by modifying important matters of a business plan or budget bill under paragraph (1), it shall submit to the Financial Services Commission a business plan or budget bill specifying the matters to be modified and the grounds therefor in advance.
(3) The Committee shall submit the statement of settlement of accounts externally audited to the Financial Services Commission, following a resolution by the Committee within 3 months after the end of each business year.

Article 70 (Basic principle of debt settlement)
(1) Debt settlement shall be performed fairly and promptly in consideration of an individual debtor’s assets, income level, living conditions, etc.
(2) An individual debtor shall provide accurate information on his or her own circumstances.
(3) A person who has entered into an agreement on credit recovery support with the Committee pursuant to Article 75 (2) (hereinafter referred to as "credit financial company") shall cooperate proactively for the debt settlement of an individual debtor.

Article 71 (Application for debt settlement)
(1) An individual debtor intending to obtain debt settlement may apply for debt settlement to the Committee.
(2) Where an individual debtor having applied for debt settlement under paragraph (1) falls under any of the following, the Committee may return his or her application:
1. Where he or she is not entitled to apply for debt settlement of the agreement on credit recovery support under Article 75 (1);
2. Where he or she fails to submit the documents requested by the Committee, or prepares and submits false documents.
(3) Other matters necessary for the requirements, method, procedure, etc. to apply for debt settlement shall be prescribed by Presidential Decree.

Article 72 (Procedure for debt settlement)
(1) Upon receipt of an application for debt settlement from a individual debtor, the Committee shall immediately notify the credit financial company of such, unless any extenuating circumstance exists.
(2) Upon being notified pursuant to paragraph (1), the credit financial company shall report the details of debt of an individual debtor to the Committee.
(3) Upon receipt of an application under paragraph (2) from the credit financial company, the Committee shall deliberate on and resolve a plan for debt settlement within the period prescribed by Presidential Decree.
(4) The Committee shall notify the credit financial company of a plan for debt settlement deliberated on and resolved pursuant to paragraph (3), and the credit financial company shall respond to the Committee as to whether it agrees with such plan.
(5) A plan for debt settlement referred to in paragraph (4) shall be finalized, where it is agreed by the credit financial company possessing a majority of bonds between the sum total of unsecured claim and the sum total of secured claim (referred to bonds falling under the effective collateral value within the range of liquidation value of the corresponding property).
(6) Where a plan for debt settlement is finalized pursuant to paragraph (5), the Committee shall notify the individual debtor and the credit financial company of such plan, respectively.
(7) Except as otherwise provided in paragraphs (1) through (6), matters necessary for the detailed procedures, deadline, etc. of debt settlement shall be prescribed by Presidential Decree.

Article 73 (Method of debt settlement)
Debt settlement may be valid in any of the following manners, as to bonds possessed by the credit financial company:
1. Extension of redemption period;
2. Installment redemption;
3. Adjustment of interest rate;
4. Postponement of redemption;
5. Reduction of and exemption from debt;
6. Other methods prescribed by Presidential Decree as corresponding thereto.

Article 74 (Effect of debt settlement)
(1) Where an individual debtor and the credit financial company accept a plan for debt settlement notified pursuant to Article 72 (6), such an agreement shall be deemed concluded.
(2) Where the credit financial company transfers bonds subject to an agreement concluded pursuant to paragraph (1), to a third party, the effect of debt settlement shall equally reach a transferee.

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:
1. The Agency;
2. The financial company;
3. A person designated by Presidential Decree as corresponding to a financial company;
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 or 3 shall conclude an Agreement with the Committee.
(4) In cases prescribed by Presidential Decree, such as in cases of not holding bonds over an individual debtor, the credit financial company may cancel the relevant Agreement.
(5) To alter any content of an Agreement, the Committee shall undergo the resolution of the Committee.

Article 76 (Fees)
(1) The Committee may collect fees concerning support for debt settlement from any of the following persons:
1. An individual debtor having requested support for debt settlement;
2. A person having concluded an Agreement pursuant to Article 75 (2).
(2) Matters necessary for the amount of fees, the method of collection, etc. under paragraph (1) shall be determined by the Committee.
Article 77 Deleted.